City of Nanaimo
REPORT TO COUNCIL
DATE OF MEETING: 2014-JUL-14
AUTHORED BY: NELDA RICHARDSON, MANAGER, DEVELOPMENT SUPPORT
SERVICES & BUSINESS LICENCING
RE: CHANGES TO REGULATIONS PERMITTING VARIABLE PRICING AND IMPOSING
MINIMUM DRINK PRICES IN LICENCED ESTABLISHMENTS – MINIMUM DRINK PRICE
BYLAW
STAFF RECOMMENDATION:
That Council receive the report pertaining to "BUSINESS LICENCE AMENDMENT BYLAW
2014 NO. 5351.11".
PURPOSE:
The purpose of this report is for Council’s consideration of the first three readings to
"BUSINESS LICENCE AMENDMENT BYLAW 2014 NO. 5351.11", a Bylaw to repeal
"BUSINESS LICENCE AMENDMENT BYLAW 2004 NO. 5713" in its entirety and to delete
Section 8.11.2 from "BUSINESS LICENCE BYLAW 1998 NO. 5351".
BACKGROUND:
On 2004-JUN-07, "BUSINESS LICENCE AMENDMENT BYLAW 2004 NO. 5713" (Cheap Drink
Bylaw) was adopted by Council after considerable Staff research, legal advice, and input from
the local licensees. "BUSINESS LICENCE AMENDMENT BYLAW 2004 NO. 5713" established
a $3.00 minimum price for a standard serving of liquor with the following criteria:
“8.11.2
No business licenced under the Liquor Control and Licencing Act of British
Columbia shall offer or sell:
(a)
any standard serving of liquor for less than $3.00, including all applicable
taxes. For greater certainty a standard serving of liquor means:





(b)
Hi-balls - 1 ounce Spirits
Wine - 6 ounce
Bottled Beer containing more than 1.5% alcohol by volume
Draft Beer - 18 ounce serving
Bottled Refreshment Beverages containing more than 1.5% alcohol by
volume, including Cider and Coolers;
hi-balls, other than a standard serving, except where at least $3.00 for the
first ounce of spirits plus $2.00 for each additional ounce of spirits, or
portion thereof, is charged;
Report to Council – 2014-JUL-14
Page 2
Re: Changes to Regulations Permitting Variable Pricing and Imposing Minimum Drink Prices in Licenced
Establishments – Minimum Drink Price Bylaw
(c)
draft beer, other than a standard serving, except where in a larger or
smaller serving, an increase or decrease in price is charged in the same
proportion as the increase or decrease over a standard serving of draft
beer.”
At the Finance / Policy Committee of the Whole Meeting held on 2014-APR-14, an information
report was provided to the Committee for the purpose of summarizing the recommendations
contained within the British Columbia (BC) Liquor Policy Review – Final Report, published on
2014-JAN-31 to inform Committee Members on how the upcoming recommended changes to
Liquor Control and Licencing Branch (LCLB) policies, if implemented, could affect
local government.
One of the 73 recommendations, "Pricing – Happy Hour", as shown below, was presented on
the report to the Committee as a change, that if initiated, would impact Nanaimo.
“Permit licencees to offer time-limited drink specials (e.g. happy hours), provided the
price is not below a prescribed minimum consistent with those supported by
health advocates.”
On 2014-JUN-20, the LCLB announced implementation of Liquor Policy Review
Recommendation No. 16, which allows liquor licensees to offer happy hours, subject to a new
regulatory requirement for minimum drink pricing. The Policy Directive, Changes to regulations
permitting variable pricing (happy hours) and imposing minimum drink prices in licenced
establishments (Schedule 'A'), is attached for Council’s review.
The new minimum price regulations permit licensees to vary the price of liquor at any time
during the business day, as long as prices do not fall below the prescribed minimum at any time.
DISCUSSION:
Effective immediately, liquor primaries, liquor primary clubs, food primaries, and manufacturer
lounge and special event endorsement areas may vary the price of liquor at any time during
liquor service hours as long as the price of liquor in each category does not fall below the
minimum pricing specified in the table. Minimum pricing applies to all liquor sales in liquor
licenced establishments.
Product Category
Draught Beer and
Cider
Packaged Beer,
Cider and Coolers
Wine and Fortified
Wine
(Including Sake)
Liqueurs and
Spirits
Minimum Price per
ounce (not
including sales tax)
$0.25 per oz (28 ml)
$0.25 per oz (28 ml)
$0.60 per oz (28 ml)
$2.00 per oz (28 ml)
Pricing Examples
12 oz Sleeve for
$3.00, or 20 oz Pint
for $5.00
341 ml Bottle or
355 ml Can for
$3.00
5 oz Glass for
$3.00, or 9 oz Glass
for $5.40
1 oz Spirit for
$2.00, or 2 oz Spirit
for $4.00
Report to Council – 2014-JUL-14
Page 3
Re: Changes to Regulations Permitting Variable Pricing and Imposing Minimum Drink Prices in Licenced
Establishments – Minimum Drink Price Bylaw
Variable pricing and minimum drink pricing does not apply to special occasion licenced (SOL)
events and two-for-one drink specials will continue to be prohibited.
Pursuant to Section 8. (6) of the Community Charter, a Council, may, by bylaw, regulate in
relation to business; however, Section 10. (1) states, “a provision of a municipal bylaw has no
effect if it is inconsistent with a Provincial enactment”. With the implementation of Provincial
pricing, local government bylaws that are all ready in place such as "BUSINESS LICENCE
AMENDMENT BYLAW 2004 NO. 5713", which established a $3.00 minimum price for a
standard serving of liquor in the City, are superseded by the new LCLB Policy, Changes to
regulations permitting variable pricing (happy hours) and imposing minimum drink prices in
licenced establishments.
As such, Staff are recommending that "BUSINESS LICENCE AMENDMENT BYLAW 2004
NO. 5713" be repealed and Section 8.11.2 of "BUSINESS LICENCE BYLAW 1998 NO. 5351"
be deleted in its entirety, eliminating the regulatory function for minimum drink pricing by the
City.
Respectfully submitted,
____________________
N. Richardson
MANAGER
DEVELOPMENT SUPPORT SERVICES & BUSINESS LICENCING
Concurrence by:
_____________________
D. Lindsay
DIRECTOR
COMMUNITY DEVELOPMENT
____________________
I. Howat
GENERAL MANAGER
CORPORATE SERVICES
CITY MANAGER COMMENT:
I concur with the staff recommendation.
Drafted: 2014-JUN-23
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