Free My Rye Act (Liquor Statute Law Amendment), 2017 Clark, Steve — Bill 50 (41st Parliament, 2nd Session)

Bill 50, 41-2

Ontario — Bills

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Bill 50, Free My Rye Act (Liquor Statute Law Amendment), 2017

Clark, Steve

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[41] Bill 50 Original (PDF)

Bill 50 2016

An Act to amend the

Liquor Control Act and the Liquor Licence Act with respect to the sale of

spirits

Her

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

Liquor Control Act

Section

3 of the Liquor Control Act is amended by adding

the following subsection:

Increase

in retail stores for spirits

(2.1) The Board shall ensure that the

number of government stores that it authorizes persons to operate under clause

(1) (e.1) for the sale of spirits distilled in Canada to the public as of the

fifth anniversary of the day on which this subsection comes into force exceeds

by at least 20 per cent the number of such stores as of the day on which this

subsection comes into force.

2. The

Act is amended by adding the following section:

Mark-up

on sale of spirits

3.0.0.1

(1) Despite

anything in subsection 3 (1) or (1.1) or the regulations made under this Act,

the mark-up on the sale price of spirits that a manufacturer produces and sells

to the Board in a year for resale at a government store under clause 3 (1) (

d) or (e.1) shall not exceed,

(a) 10

per cent, for the first 50,000 litres of the manufacturer's spirits sold in the

year to the Board;

(b) 20

per cent, for that part of the manufacturer's spirits sold in the year to the

Board in excess of 50,000 litres up to 100,000 litres; and

(c) 40

per cent, for that part of the manufacturer's spirits sold in the year to the

Board in excess of 100,000 litres up to 625,000 litres.

Sales

at manufacturer's retail store

(2) Despite anything in subsection 3 (1) or

(1.1) or the regulations made under this Act, the mark-up on the sale price of spirits

that a manufacturer produces and sells in a year at a store that the

manufacturer owns or operates and at which it is authorized to sell under

clause 3 (1) (

e) shall not exceed,

(a) 10 per cent,

for the first 50,000 litres of the manufacturer's spirits sold in the year at

the store;

(b) 20

per cent, for that part of the manufacturer's spirits sold in the year at the

store in excess of 50,000 litres up to 100,000 litres; and

(c) 40

per cent, for that part of the manufacturer's spirits sold in the year at the

store in excess of 100,000 litres up to 625,000 litres.

Liquor Licence Act

3. Subsection

5 (4) of the Liquor Licence Act is repealed and the

following substituted:

Exception

(4) Subsections (1), (2) and (3) do not

apply to the sale or delivery of liquor,

(

a) by

or under the authority of the Liquor Control Board of Ontario under the Liquor Control Act ; or

(

b) by

a microdistiller as defined in

section 22.1 under the authority of

section

22.2.

4. The

Act is amended by adding the following section:

Manufacturer's

licence to sell spirits onsite

6.0.1

(1) Despite

subsection 6 (4), the holder of a manufacturer's licence to sell spirits to the

Liquor Control Board of Ontario may obtain a licence that authorizes a

manufacturer to sell spirits in accordance with this section.

Precondition

(2) A licence may be issued under

subsection (1) only if the council of the municipality, if any, in which the

spirits are to be sold has passed a resolution in support of the issuance of

the licence.

Definition

(3) In subsection (4),

"manufacturing

site" means property that is used by a

manufacturer primarily for the distillation and production of spirits.

Conditions

of licence

(4) The following are conditions of a

licence issued under this

section that the manufacturer must comply with:

1. The

licence authorizes the manufacturer to sell only spirits manufactured by the

manufacturer.

2. The

spirits may be sold only in areas that are under the sole control of the

manufacturer and that are located on or immediately adjacent to a manufacturing

site of the manufacturer.

3. The

sale is primarily aimed at promoting the manufacturer's product and either

providing an enhanced tourist experience or fulfilling an educational purpose.

4. The

spirits must be sold in servings that are equal to or less than 43 ml (1.5

oz.).

5. T he spirits must be sold and served no earlier than 11

a.m. and no later than 11 p.m. on any day.

Exemptions

(5) A licence

issued under this

section shall not have attached to it any other conditions

except if the regulations specifically provide that the conditions apply to the

licence for the purposes of this subsection.

5. The

Act is amended by adding the following sections:

Microdistillers

Microdistiller

22.1

(1) For

the purposes of this

section and

section 22.2, a manufacturer of spirits is a

microdistiller for a calendar year if all of the following circumstances exist:

1. The

manufacturer holds a licence to sell its spirits to the Liquor Control Board of

Ontario under

section 22.

2. The

manufacturer's worldwide production of spirits in the production year

for that calendar year,

i. was

not more than 625,000 litres, or

ii. is

expected to be not more than 625,000 litres if that production year is the

first production year in which it manufactures spirits.

3. In the

production year for that calendar year, the manufacturer was not a party to any

agreement or other arrangement pursuant to which any other manufacturer of

spirits who is not a microdistiller agreed to manufacture spirits for it.

4. In

the production year for that calendar year, the manufacturer was not a party to

any agreement or other arrangement pursuant to which it agreed to manufacture spirits

for any other manufacturer of spirits who was not a microdistiller. However,

the manufacturer may have been a party to an agreement or other arrangement

pursuant to which it agreed to manufacture spirits for another manufacturer of

spirits who would have been a microdistiller in the calendar year if paragraph 3

did not apply to that other manufacturer of spirits.

5. Every

affiliate that the manufacturer had that manufactured spirits in the production

year for that calendar year was a microdistiller.

Definition

(2) In subsection (1),

"production

year" means, in relation to a calendar year, the 12-month period that ends on

the last day of October immediately before the beginning of the calendar year.

Application

of Alcohol and Gaming Regulation and Public Protection

Act, 1996

(3) Subsections 17 (5) and (6) and 22

(3.1) and (4) of the Alcohol and Gaming Regulation and Public

Protection Act, 1996 apply, with necessary modifications, for the

purposes of determining whether a manufacturer of spirits is a microdistiller,

including reading references in those provisions to beer and microbrewers as

references to spirits and microdistillers.

List

of microdistillers

(4) The Minister shall compile annually and make available to the public for each

calendar year a list containing the names of manufacturers of spirits that are

microdistillers for the calendar year and the names of the brands of spirits

that they manufacture.

Sale

and delivery of spirits

22.2 Subject to any

requirements that are prescribed but despite any restriction imposed under any

agreement entered into under this or any other Act, a microdistiller may sell

and deliver the spirits that it manufactures to a person who holds a licence to

sell liquor or a permit issued under this Act.

6. Subsection

62 (1) of the Act is amended by adding the following paragraph:

11.2 prescribing

conditions that, for the purposes of subsection 6.0.1 (4), apply to a licence

issued under

section 6.0.1;

Commencement and

Short Title

Commencement

7. This

Act comes into force six months after the day it receives Royal Assent.

Short

title

8. The

short title of this Act is the Free My Rye Act (Liquor

Statute Law Amendment), 2016 .

EXPLANATORY NOTE

The

Bill amends the Liquor Control Act and the Liquor Licence Act .

Liquor Control Act

The

Liquor Control Board of Ontario is required to ensure that there is at least a

20 per cent increase in the number of stores for the sale of spirits over the five

years after the Bill comes into force.

The

Bill sets out a series of graduated maximum amounts for the mark-up on the sale

of spirits made by a particular manufacturer in a year to the Board or at the

manufacturer's own retail store. The amounts start with the first 50,000 litres

sold in the year and are lower than the mark-up that presently applies.

Liquor Licence Act

Currently,

regulations under the Act permit certain manufacturers of beer and Ontario wine

to obtain a licence to sell their beer and wine by the glass. The Act is

amended to permit manufacturers of spirits to sell their spirits by the glass.

manufacturer of spirits is a microdistiller if, among other things, it holds a

licence to sell liquor to the Liquor Control Board of Ontario and produces no

more than 625,000 litres of spirits annually. Microdistillers are permitted to

sell and deliver their spirits to persons who hold a licence or permit to sell

liquor issued under the Act.

Date Bill stage Activity Committee

March 9, 2017

Second Reading

Lost on division

March 9, 2017

Second Reading

Debate

October 25, 2016

First Reading

Carried

Debates and Progress

First Reading

October 25, 2016

Committee

Second Reading

March 9, 2017

Mr. Steve Clark, Mr. Percy Hatfield, Mrs. Cristina Martins, Ms. Lisa MacLeod, M me France Gélinas, Hon. Jeff Leal, Mr. Todd Smith, Mr. Arthur Potts, Mr. Sam Oosterhof

March 9, 2017

Lost on division.

Committee

Third Reading

Royal Assent

Acts affected - Bill 50

Most Ontario public acts are available electronically; to view copies of the Acts to be amended by this bill visit e-laws

Liquor Control Act

Liquor Licence Act

Legislative Assembly of Ontario

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Document details

Collection	Ontario — Bills
Citation	Bill 50, 41-2
Type	bill
Volume / chapter	p41 s2 bill 50 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	eda5d022d0e00e92a00fc71e598d4d669b357cea

Source file is stored in the law ingest library (html).