ontario regulation 179/19
made under the
Liquor Control Act
Made: May 30, 2019
Filed: June 6, 2019
Published on e-Laws: June 6, 2019
Printed in The Ontario Gazette: June 22, 2019
Amending O. Reg. 232/16
(SALE OF LIQUOR IN GOVERNMENT STORES)
1. Subsection 11 (1) of Ontario Regulation 232/16 is amended by striking out “12” and substituting “six”.
2. Subsection 14 (8) of the Regulation is revoked.
3. The Regulation is amended by adding the following sections:
Initial lottery
15.1 (1) After the day section 8 of Ontario Regulation 179/19 comes into force, the Board shall conduct a lottery to select, from among interested persons, potential candidates to be issued authorizations to sell beer and wine in a grocery store.
(2) If two or more grocery stores are part of the same franchise system, only the franchisor may participate in the lottery.
(3) If an operator of a grocery store that is issued a beer and wine authorization through the lottery process conducted under subsection (1) relinquishes an existing beer and cider authorization, the Board may use the lottery process to select a potential candidate for a beer and cider authorization for the same region and category of store.
(4) If, following an initial selection of potential candidates, the Board is unable to identify enough suitable candidates for the maximum number of authorizations as allocated by region, class of authorization and category of store in accordance with sections 35 to 40, including beer and cider authorizations that have been relinquished as referred to in subsection (3), the Board may select additional candidates through the lottery from among all interested persons that were not selected to be considered for an authorization regardless of region or category of store.
Subsequent lotteries
15.2 (1) If, at any time, an operator of a grocery store ceases to hold an authorization, the Board may conduct a lottery to select a potential candidate for an authorization of the same class, region and category of store.
(2) If the Board is unable to identify a suitable candidate for an authorization pursuant to subsection (1), the Board may conduct a lottery for an authorization of that class among interested persons regardless of region or category of store.
(3) A lottery may be conducted under subsection (1) or (2) to identify potential candidates for one or more authorizations that become available as described in those subsections.
4. (1) Subsection 16 (1) of the Regulation is amended by striking out “Subject to section 17” at the beginning.
(2) Subsection 16 (2) of the Regulation is revoked.
(3) Subsection 16 (3) of the Regulation is amended by striking out “Despite subsection 17 (1)” at the beginning.
(4) Section 16 of the Regulation is amended by adding the following subsection:
(5) A supply agreement with a grocery store operator that holds a beer and cider authorization or a beer and wine authorization issued following a lottery referred to in section 15.1 or 15.2 shall provide for the following discount rates:
1. In the case of an agreement with the operator of a Category A grocery store, the rate equal to the mean of the discount rates in respect of,
i. any related grocery stores for which the operator holds a beer and cider authorization or a beer and wine authorization at the time the supply agreement is entered into, with the exception of any store for which the operator holds a beer and cider authorization referred to in subsection (3), or
ii. if there are no related grocery stores for which the operator holds such authorizations at the time the supply agreement is entered into, all Category A grocery stores, with the exception of any store for which the operator holds a beer and cider authorization referred to in subsection (3).
2. In the case of an agreement with the operator of a Category B grocery store, the rate equal to the mean of the discount rates in respect of,
i. any related grocery stores for which the operator holds a beer and cider authorization or a beer and wine authorization at the time the supply agreement is entered into, with the exception of any store for which the operator holds a beer and cider authorization referred to in subsection (3), or
ii. if there are no related grocery stores for which the operator holds such authorizations at the time the supply agreement is entered into, all Category B grocery stores, with the exception of any store for which the operator holds a beer and cider authorization referred to in subsection (3).
5. Section 17 of the Regulation is revoked.
6. Section 30 of the Regulation is revoked and the following substituted:
Restriction re: proximity to agency store
30. The Board shall not issue an authorization to sell beer or wine at a grocery store that is located within five kilometres of an agency store within the meaning of subsection 17 (1) of the Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996 or transfer an authorization to such a store under section 33.
7. Subsection 32 (2) of the Regulation is revoked.
8. (1) Subsection 35 (1) of the Regulation is amended by striking out “370” in the portion before paragraph 1 and substituting “450”.
(2) Paragraph 1 of subsection 35 (1) of the Regulation is amended by striking out “70” and substituting “157”.
9. (1) Section 36 of the Regulation is amended by striking out “cider” in the portion before paragraph 1and substituting “wine”.
(2) Paragraph 1 of section 36 of the Regulation is amended by striking out “cider” and substituting “wine”.
(3) Paragraph 2 of section 36 of the Regulation is revoked.
10. (1) Section 37 of the Regulation is amended by striking out “cider” in the portion before paragraph 1 and substituting “wine”.
(2) Paragraph 1 of section 37 of the Regulation is amended by striking out “cider” and substituting “wine” and by striking out “24” and substituting “21”.
(3) Paragraph 2 of section 37 of the Regulation is revoked.
11. (1) The English version of section 38 of the Regulation is amended by striking out “cider” in the portion before paragraph 1 and substituting “wine”.
(2) Paragraph 1 of section 38 of the Regulation is amended by striking out “cider” and substituting “wine” and by striking out “20” and substituting “22”.
(3) Paragraph 2 of section 38 of the Regulation is revoked.
12. (1) Section 39 of the Regulation is amended by striking out “cider” in the portion before paragraph 1 and substituting “wine”.
(2) Paragraph 1 of section 39 of the Regulation is amended by striking out “cider” and substituting “wine” and by striking out “42” and substituting “35”.
(3) Paragraphs 2 and 3 of section 39 of the Regulation are revoked.
13. (1) The English version of section 40 of the Regulation is amended by striking out “cider” in the portion before paragraph 1 and substituting “wine”.
(2) Paragraph 1 of section 40 of the Regulation is amended by striking out “Eight” at the beginning and substituting “Seven”.
(3) Paragraphs 2, 4 and 5 of section 40 of the Regulation are revoked.
14. The Regulation is amended by adding the following section:
Exceptions to maximums in case of second and subsequent lotteries
40.0.1 Despite sections 36 to 40, the rules respecting the maximum beer and wine authorizations for each region and authorizations reserved for Category B grocery stores do not apply when issuing authorizations to candidates selected through a lottery as described in subsection 15.1 (3) or (4) or as described in section 15.2.
Commencement
15. This Regulation comes into force on the day it is filed.