Item - 2026.EC27.1

The Interim Executive Director, Municipal Licensing and Standards recommends that:

1. City Council amend Toronto Municipal Code, Chapter 545, Licensing as follows:

a. Amend Article XXIII, 545-282 and Article XXIV, 545-291 by deleting requirements pertaining to hours and days of operation.

b. Amend Article XXIII, 545-285 and Article XXIV, 545-293 by:

A. Deleting the requirement that the register of goods received be kept in the form of a book, and written in ink in a plain, legible hand; and

B. Adding that the register shall be in a format satisfactory to the Executive Director of MLS.

c. Amend Article XXIII, 545-286 to remove the requirement that information from the Second-Hand Goods Register book be submitted to the Executive Director.

d. Amend Article XXIV, 545-293.1 by deleting the requirement that information from the Old Gold or Old Jewellery Register book be submitted to the Executive Director.

e. Amend the definition of an Entertainment Establishment/Nightclub so that it reads:

A. Premises used to provide amplified music for dancing or patron entertainment, and where the premises meets three or more of the following criteria:

1) The premises offers or advertises bottle service, meaning the sale or service of liquor by the bottle;

2) The operator, or an agent acting on behalf of the operator refers to or advertises the premises as a club, nightclub, disco, dance hall, dance club, or similar venue;

3) The premises are equipped with a lighting system, sound system, or disc jockey booth greater in scope than one expected in an eating or drinking establishment;

4) The premises has a stage, dance floor, or other area used for dancing or patron entertainment.

B. Despite Subsection A, an entertainment establishment/nightclub shall not include an adult entertainment club.

2. City Council repeal Toronto Municipal Code Chapter 832, Videotape Stores, Licensing.

3. City Council direct that Recommendation 1 and Recommendation 2 come into effect on September 30, 2026.

The City of Toronto’s Municipal Licensing and Standards (MLS) Division continues to refine the administration of its business licence and permit services to remain responsive to client needs and reduce regulatory burden. MLS issues and enforces 89 business licence and permit types, with 56 of them contained in Chapter 545, Licensing (the Licensing Bylaw). In 2025, MLS issued and renewed a total of 32,906 business licences and processed 7,552 service requests associated with businesses licensed under Chapter 545.

In July 2025, City Council adopted MLS’ Business Licence and Permit Applications Action Plan (the Action Plan) (2025.EC22.7), which sets out a four-year roadmap to review and modernize regulations for various licence categories. This report provides a progress update on implementation of the Action Plan and responds to outstanding directives. Specifically, it:

- Outlines recent customer service enhancements, including simplifying licence applications, launching a Business Licensing Information Phone Line and upgrading the Division’s licence renewal portal;

- Describes operational enhancements for food, beverage and entertainment businesses based on insights from the implementation of updated licensing and zoning regulations, which includes process and system changes to advance the Division’s client-centered/business friendly approach when supporting businesses in changing into a new licence type (2025.EC24.7);

- Responds to outstanding directives and proposes minor bylaw amendments to reduce regulatory burden and provide clarity for businesses.

In 2026, staff will continue to advance the Action Plan by proposing amendments to street vending regulations, launching a new online licence application portal, launching user engagement research, and preparing for implementation of new regulations for pet establishments. Staff are also preparing to report back in 2027 regarding regulations for temporary sign providers; certain trade licences, such as home renovation trades; certain driver/vehicle owner licences; second-hand goods related businesses; a regulatory sandbox framework for new business models; and a further review of holistic centres and adult services establishments. 

This report was prepared in collaboration with the Economic Development and Culture Division and the Technology Services Division.

There are no current year or future year financial impacts resulting from the recommendations contained in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact Section.