Thank you, Mr. Speaker. Your committee would like to report consideration of Bill 83, Liquor Act.
Bill 83 received second reading in the Legislative Assembly on March 20th, 2023, and was referred to the Standing Committee on Government Operations for review. Committee held a public hearing with the Minister of Finance on May 29th, 2023. Committee held three public meetings in Inuvik, Norman Wells, and Yellowknife. Committee also received one written submission. On July 28th, 2023, the committee held a clausebyclause review at which time the two departmentdriven motions were moved and approved.
Mr. Speaker, the committee reports that Bill 83, Liquor Act, is ready for consideration in Committee of the Whole as amended and reprinted. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. The bill is referred to Committee of the Whole. Reports of committees on the review of bills. Member for Yellowknife North.
Question has been called. All those in favour? All those opposed? Any abstentions? The motion is carried. The committee report is deemed read.
Carried
Bill 83: Liquor Act (Bill 83) received second reading on March 30, 2023, and was referred to the Standing Committee on Government Operations (Committee) for review.
Bill 83 repeals and replaces the existing Liquor Act (Act). The Bill follows a two-year Liquor Legislation Review that considered how to modernize and streamline liquor laws in the Northwest Territories. The Review results were released in fall 2022 and made 66 recommendations to improve legislation, regulations, and operating policies and procedures.3 Bill 83 aims to implement the recommendations that were legislative in nature, including changes to:
- Streamline how the liquor industry is regulated;
- Ensure safe public access to liquor;
- Increase community control over liquor; and
- Modernize liquor enforcement.
This report outlines Committee’s engagement with the public and the government on Bill 83. The government provided substantial background information in support of Committee’s review, which is included in the appendices to this report. This report also explains a pair of department-driven motions to amend Bill 83 that were adopted at the clause-by-clause review.
Committee hosted three public meetings on Bill 83 in Inuvik, Norman Wells – Tlegohi, and Yellowknife – Somba Ke. Thirteen residents participated in these meetings. Several common themes of interest emerged, including:
- Alcohol addictions. Many participants expressed dismay at the personal and societal harms of alcohol addictions and maintained the need for more local treatment and wellness supports, especially for youth.
- Bootlegging. Committee heard strong agreement to tackle bootlegging with specific liquor retail sales controls and enforcement actions. Multiple participants suggested requiring liquor retailers to keep data on the volume of sales to each purchaser and be allowed to share that data to law enforcement. They also suggested prohibiting retailers from selling liquor to likely bootleggers.
- Streamlining regulations. Committee heard strong agreement on streamlining how the industry is regulated. Participants wanted to see less onerous application requirements and lower fees for special occasion permits and licensing more generally. One specific suggestion was to waive the fee on special occasion permits for a Class D license – event organizers are often not-for-profit, and after paying for liability insurance and other costs, their liquor event may not break even.
- Sales model. Committee heard some agreement on allowing more different types of liquor retail stores, including private liquor sales and off-sales. - Registrar. Committee heard cautious support for moving licensing and penalties functions from the Liquor Licensing Board to a new “Registrar” position. Some participants were concerned that the “wrong person” in the position could impose unreasonable and onerous requirements on license-holders and applicants. Committee heard support for proper oversight of the new Registrar.
- Local decision-making body. Committee heard mixed views on the proposed change on which body makes decisions about community control of liquor. Some participants supported the proposal to leave decisions with a single “local authority”. Others were concerned this approach left out important voices and preferred a committee system approach including leaders from the local public government and local Indigenous Governments.
- Public places. Committee heard mixed views on continuing to prohibit liquor consumption in public. Those against the prohibition suggested maintaining the prohibition in certain areas, like schools.
- Server training. Committee heard mixed views on making server training mandatory. Some participants felt this requirement was excessive, especially for one-time events under a special occasion permit. Others shared examples of disorder when servers did not have adequate training and supported mandatory training.
Committee thanks all residents who participated in the review. Committee recognizes the difficult balance between those who want more access to liquor and those who want less.
Committee also sought written submissions on Bill 83. We sent close to 300 targeted engagement letters to:
- Indigenous Governments and Organizations;
- Municipal and community governments;
- Public agencies;
- Liquor retailers, manufacturers, and licensees; and
- Advocacy organizations;
Committee only received one written submission in response, from Big River Service Centre. Big River’s written submission primarily addressed a private licensing issue, rather than Bill 83. Committee forwarded the letter to the appropriate departmental officials.
On May 29, 2023, the Minister of Finance and departmental officials provided a public briefing on Bill 83. The department’s presentation is included in Appendix A. The department also provided an extended summary of the Bill, included in Appendix B. At the public briefing, the Minister responded to Committee’s questions and concerns. Some key pieces of information include:
Bill 83 transforms the Hay River-based Liquor Licensing Board into an appeals board and shifts its licensing and penalty functions to a new Registrar position. Committee was concerned the changes could result in job losses in Hay River. The Minister reported that she is not anticipating any significant human resources changes, and no changes to the number or location of positions. Committee is pleased the new Registrar position and the new appeals board will be in Hay River.
In March 2023, the Department of Health and Social Services released An Alcohol Strategy for the Northwest Territories. The Alcohol Strategy aims to reduce alcohol-related harm. Committee asked whether the Alcohol Strategy informed Bill 83. The Minister confirmed that policymakers working on the two projects were talking to each other. She also said the Alcohol Strategy informed several proposals in Bill 83, including minimum prices for standard drinks, lower prices for lower-alcohol content, and increasing community control.
Bill 83 requires community decisions about liquor control to be made by one body called the local authority. This authority for each community will be designated by the Minister. Committee was concerned that Bill 83 does not require the department to be transparent about which government or council the Minister designates as the local authority. The Minister said she had no problem making public the designated local authority. Committee expects the department to make this information public. Any decisions to change the local authority should also be communicated to the public.
At the public briefing, Members asked how Bill 83 fits within the broader work to implement the recommendations from the Liquor Legislation Review. The Minister explained that of the 66 recommendations, 20 percent related directly to the Liquor Act and were being addressed in Bill 83. The remaining 80 percent affected the Liquor Regulations and would be dealt with after Bill 83 receives assent.
Committee requested additional detail on this matter. In response, the department provided a high-level overview indicating where each recommendation would be addressed: in Bill 83; in the Liquor Regulations; or in separate operating procedures. This overview is included in Appendix C.
The Minister also provided a timeline for updating the Regulations. Once Bill 83 receives assent, drafting work will start. The drafting is expected to be completed by fall 2024. The new Regulations are expected to be finalized before the end of the 2024 calendar year.
Some of the changes coming forward include:
- Streamlining licensing requirements if an applicant or a premises is already licensed, allowing for bundling of applications, and putting permitting applications online;
- Removing sales restrictions related to Sundays, Christmas Day, Good Friday, and election days.
- Creating new licences for local liquor delivery and ferment-on-premises; - Creating a vendor designation for licensed manufacturers in the Northwest Territories; and given that the public was already consulted during the Liquor Legislation Review. In this case, Committee encourages the department to be transparent about its progress updating the Liquor Regulations.
- Making server training mandatory.
The Minister indicated that the department would not do additional public consultation, given that the public was already consulted during the Liquor Legislation Review. In this case, Committee encourages the department to be transparent about its progress updating the Liquor Regulations.
Committee approved two department-driven amendments The department requested two motions to amend Bill 83. The first motion fixed a typo. The second motion made consequential amendments so that five other laws would be consistent with the new Liquor Act. The motions are included in Appendix D and Appendix E, respectively. Committee was satisfied with these amendments and approved them at the clause-by-clause review, held on July 28, 2023. Committee then passed a motion to report Bill 83, as amended, to the Legislative Assembly as ready for consideration in Committee of the Whole.
Mr. Speaker, I move, seconded by the Member for Thebacha, that the Committee Report 6519(2), Standing Committee on Government Operations Report on the Review of Bill 83: Liquor Act, be received and adopted by the Assembly. Thank you, Mr. Speaker.
