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O. Reg. 12/17: SALE OF LIQUOR IN GOVERNMENT STORES

filed February 3, 2017 under Liquor Control Act, R.S.O. 1990, c. L.18

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ontario regulation 12/17

made under the

Liquor Control Act

Made: February 2, 2017
Filed: February 3, 2017
Published on e-Laws: February 3, 2017
Printed in The Ontario Gazette: February 18, 2017

Amending O. Reg. 232/16

(SALE OF LIQUOR IN GOVERNMENT STORES)

1. Subsection 1 (1) of Ontario Regulation 232/16 is amended by adding the following definition:

“fortified wine” means wine to which an alcoholic distillate has been added;

2. Subsection 21 (1) of the Regulation is amended by adding the following paragraph:

4. Fortified wine.

3. (1) Paragraph 1 of subsection 32 (2) of the Regulation is revoked and the following substituted:

1. For a beer and wine authorization, if the transfer would result in such authorizations being held in respect of more than 52 Category A grocery stores or more than 20 related Category A grocery stores.

(2) Paragraph 2 of subsection 32 (2) of the Regulation is amended by striking out “118” and substituting “183” and by striking out “55” and substituting “82”.

4. (1) Subsection 35 (1) of the Regulation is amended by striking out “200” in the portion before paragraph 1 and substituting “278”.

(2) Paragraph 2 of subsection 35 (1) of the Regulation is amended by striking out “60” and substituting “138”.

5. Sections 36 to 40 of the Regulation are revoked and the following substituted:

For the North Region

36. The Board shall issue authorizations for the sale of beer and cider in grocery stores in the North Region in accordance with the following rules:

1. Beer and cider authorizations are allocated for a maximum of six grocery stores in the region.

2. No more than two of the authorizations that are allocated by paragraph 1 may be issued to a single group of related grocery stores.

3. The maximum number of authorizations in paragraph 1 shall be increased by the number of authorizations reserved for Category B stores that are issued in the North Region under paragraph 1 of section 40, if any.

For the East Region

37. The Board shall issue authorizations for the sale of beer and cider in grocery stores in the East Region in accordance with the following rules:

1. Beer and cider authorizations are allocated for a maximum of 20 grocery stores in the region.

2. No more than six of the authorizations that are allocated by paragraph 1 may be issued to a single group of related grocery stores.

3. The maximum number of authorizations in paragraph 1 shall be reduced by the number of authorizations reserved for Category B stores that are issued in other regions under paragraph 1 or 5 of section 40, if any.

For the West Region

38. The Board shall issue authorizations for the sale of beer and cider in grocery stores in the West Region in accordance with the following rules:

1. Beer and cider authorizations are allocated for a maximum of 19 grocery stores in the region.

2. No more than eight of the authorizations that are allocated by paragraph 1 may be issued to a single group of related grocery stores.

3. The maximum number of authorizations in paragraph 1 shall be increased by the number of authorizations reserved for Category B stores that are issued in the West Region under paragraph 1 of section 40, if any.

For the GTA Region

39. The Board shall issue authorizations for the sale of beer and cider in grocery stores in the GTA Region in accordance with the following rules:

1. Beer and cider authorizations are allocated for a maximum of 35 grocery stores in the region.

2. No more than 11 of the authorizations that are allocated by paragraph 1 may be issued to a single group of related grocery stores.

3. The maximum number of authorizations in paragraph 1 shall be increased by the number of authorizations reserved for Category B stores that are issued in the GTA Region under paragraph 5 of section 40, if any.

Authorizations reserved for Category B grocery stores

40. The Board shall reserve authorizations for the sale of beer and cider in Category B grocery stores in accordance with the following rules:

1. Six of the authorizations allocated to the East Region under paragraph 1 of section 37 are reserved for Category B grocery stores. These authorizations may be issued in any of the North, West or East Regions.

2. No more than three of the authorizations reserved under paragraph 1 may be issued to a single group of related Category B grocery stores.

3. Nine of the authorizations allocated to the GTA Region under paragraph 1 of section 39 are reserved for Category B grocery stores.

4. No more than four of the authorizations reserved under paragraph 3 may be issued to a single group of related Category B grocery stores.

5. If, after undertaking a competitive process described in section 17, the Board is unable to enter into supply agreements in respect of all of the authorizations reserved for Category B grocery stores in the North, West and East Regions, the number of authorizations reserved under paragraph 3 for the GTA Region shall be increased by the number of outstanding authorizations.

6. (1) Subsection 40.1 (2) of the Regulation is amended by adding the following paragraph:

0.1 An overall maximum of 36 authorizations as a wine boutique sales agent in all regions.

(2) Paragraphs 1 and 2 of subsection 40.1 (2) of the Regulation are amended by striking out “18” wherever it appears and substituting in each case “23”.

(3) Subsection 40.1 (3) of the Regulation is revoked and the following substituted:

(3) The following is the maximum number of supplementary wine authorizations that may be issued to the owners of winery retail stores and in the regions indicated:

1. For an owner with at least 160 winery retail stores:

i. An overall maximum of 38 authorizations for its wine boutiques in grocery stores in all regions.

ii. Within that overall maximum, a maximum of 25 authorizations for its wine boutiques in grocery stores in the GTA Region and a maximum of 25 authorizations for its wine boutiques outside the GTA Region.

2. For an owner with more than 100 winery retail stores and fewer than 160 winery retail stores:

i. An overall maximum of 28 authorizations for its wine boutiques in grocery stores in all regions.

ii. Within that overall maximum, a maximum of 18 authorizations for its wine boutiques in grocery stores in the GTA Region and a maximum of 18 authorizations for its wine boutiques outside the GTA Region.

3. For an owner with more than 10 winery retail stores and fewer than 100 winery retail stores:

i. An overall maximum of three authorizations for its wine boutiques in grocery stores in all regions.

ii. Within that overall maximum, a maximum of two authorizations for its wine boutiques in grocery stores in the GTA Region and a maximum of two authorizations for its wine boutiques outside the GTA Region.

4. For an owner with fewer than 10 winery retail stores, a maximum of one authorization for a wine boutique in a grocery store.

(3.1) For the purposes of subsection (3), the number of winery retail stores owned by a person shall be calculated as of January 1, 2017, and winery retail stores that a manufacturer owns and operates at its production site shall not be counted.

(4) Paragraphs 1 to 4 of subsection 40.1 (4) of the Regulation are revoked and the following substituted:

1. No more than 11 beer and cider authorizations issued as a result of wine boutique agreements to which the owner of a winery retail store described in paragraph 1 of subsection (3) is a party shall permit sales of beer or cider to occur before May 1, 2017.

2. No more than eight beer and cider authorizations issued as a result of wine boutique agreements to which the owner of a winery retail store described in paragraph 2 of subsection (3) is a party shall permit sales of beer or cider to occur before May 1, 2017.

3. No more than one beer and cider authorization issued as a result of wine boutique agreements to which the owner of a winery retail store described in paragraph 3 of subsection (3) is a party shall permit sales of beer or cider to occur before May 1, 2017.

4. A beer and cider authorization issued as a result of wine boutique agreements to which the owner of a winery retail store described in paragraph 4 of subsection (3) is a party shall not permit sales of beer or cider to occur before May 1, 2017.

7. Subsection 45 (0.1) of the Regulation is amended by adding “Despite Ontario Regulation 116/10 (Minimum Pricing of Liquor and Other Pricing Matters) made under the Act” at the beginning.

Commencement

8. This Regulation comes into force on the day it is filed.