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HomeMy WebLinkAboutCD-18-91 UNFINISHED BUSINESS _ THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE i=iie #. Date: JUNE _1 3, 1991 Res. # Report#_ CD-18-91 Filet: By-Law# Subject: REQUEST FOR BREAK-OPEN TICKET LICENCE (NEVADA) BROWNSDALE COMMUNITY CENTRE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to council the following: 1. THAT Report CD-18-91 be received; 2 . THAT the request received from Fleurette Simmonds, Secretary-Treasurer, Brownsdale Community Centre, for a licence to sell Break-Open Tickets (Nevada) , be denied; and 3. THAT Fleurette Simmonds be advised of Council's decision and she be forwarded a copy of Report CD-18-91. BACKGROUND: On February 14, 1991, the Town Clerk received correspondence from Fleurette Simmonds, Secretary-Treasurer, Brownsdale Community Centre, requesting an exemption from Sections 3, 4b) and 17b) of the Terms and Conditions under which the Break-Open Tickets (Nevada) Licence is issued. This was reviewed by Council on February 25, 1991, at which time Resolution #C-119-91 was passed which reads as follows: "THAT the correspondence received from Fleurette Simmonds, Secretary-Treasurer, Brownsdale Community Centre, requesting exemption of Sections 3, 4(b) and 17 (b) of Form BOIL-TC for the sale of Nevada Tickets be received; THAT the correspondence be referred to the Clerk for review and preparation of a report to be submitted to the General Purpose and Administration Committee; and THAT Fleurette Simmonds be advised of Council's decision. " Continued . . . . . /2 _ 4 THIS IS PRin DP RECYCLED PAPER Report CD-18-91 - 2 - June 3, 1991 REVIEW AND COMMENT: Section 3 of the Terms and Conditions states that: "A Break-Open Licence shall only be issued to a charitable or religious organization which or regularly occupies premises at which tickets will be offered for sale. " The Members of the Brownsdale Community Centre meet the criteria of a portion of Section 3 because they "regularly occupy premises at which tickets would be offered for sale. " However, Section 3 also states that "a Break-Open Ticket Licence shall only be issued to a charitable or religious organization. . . " Since lotteries were first legalized there have been widely divergent interpretations of what constituted charitable and religious organizations. Documentation provided by the province in the early 1970's defined charitable as: 1. The relief of poverty 2 . Education 3. The advancement of religion 4. Any purpose beneficial to the community Religious organizations must meet the same requirements as charitable organizations. This definition is extremely broad and is subject to wide interpretation and has caused a serious lack of consistency in how municipalities have defined the term. It is worth noting that in the last several years the provincial agency responsible for monitoring and enforcement, The Lotteries Branch, of the Ministry of Consumer and Commercial Relations, has become more active in working with municipalities to more clearly define the term and to work within the intent of the law. Frank Cuda, Ministry of Consumer and Commercial Relations, advises that the Brownsdale Community Centre does not meet the criteria of being a "charitable" or "religious" organization. It is important to also note that, if Break-Open Tickets are to be sold in conjunction with another Social Gaming Event, i.e. Bingo, the application for the Licence must be made by the applicant directly to the Lotteries Branch of the Ministry of Consumer and Commercial Relations after appropriate approval is obtained from the local Municipal Council. Continued . . . . ./3 Report CD-18-91 - 3 - June 3, 1991 Section 4b) of the Terms and Conditions states that: "The designated location specified pursuant to this section shall not be a public, commercial, retail location, nor a location licensed by the L.L.B.O. as a public tavern or beverage room. " Section 17b) of the Terms and Conditions states that: "The actual handling or selling of tickets shall not be delegated to any organization, company, entity or to any other person who is not a bonafide member of the licensee. " On March 6, 1987, the Ministry of Consumer and Commercial Relations delegated to all Municipal Councils, discretionary powers to grant an exception to the requirements of Section 3, 4b) and 17b) of the Terms and Conditions of the Break-Open Ticket (Nevada) Licence, provided that all other terms and conditions are complied with. Mr. Frank Cuda from the Ministry advises that the intent of this legislation was to phase out 3rd party sites. He advised that caution should be exercised because the issuance of Break-Open Ticket Licences to numerous organizations could cause a myriad of difficulties to the municipality vis-a-vis control and enforcement. Three municipalities were contacted and the following information was obtained: Town of Ajax The Town of Ajax issues a Break-Open Ticket (Nevada) Licence to: The Royal Canadian Legion (on a regular basis) , and Ajax-Pickering General Hospital Auxiliary (on 2 occasions) . Town of Whitby The Town of Whitby issues a Break-Open Ticket (Nevada) Licence to: The Royal Canadian Legion (2 branches) , on a regular basis, and The Knights of Columbus are now in the process of completing the necessary documentation to make an application for a licence. City of Oshawa The City of Oshawa issues a Break-Open Ticket (Nevada) Licence, on a regular basis to: Continued . . . . .A Report CD-18-91 - 4 - June 3, 1991 Oshawa General Hospital Auxiliary, The Moose Lodge, and The Royal Canadian Legion The Lottery Licensing Officers of the above referenced 3 municipalities all expressed concern pertaining to regulating the conditions of Break- Open Ticket (Nevada) Licences, if the prolification of this type of licensing occurs . These 3 municipalities have issued licences to applicants who meet all the terms and conditions for the approval of the licence, because "follow-up" after the issuance of the licence is of critical importance if there is to be any credibility to the licensing process . It was the general consensus that municipalities in the Region of Durham should have a consistent approach towards this type of licensing, and work in concert with one another. RECOMMENDATION: It is recommended that the request received from Fleurette Simmonds, Secretary-Treasurer, Brownsdale Community Centre, for a licence to sell Break-Ope 'ckets (Nevada) , be denied. Respec fully submitted Recommended for Presentation to Committee 7 Patti ar ie, A.M.C.T. Lawrence E. Rotseff, M.C.I.P. `0 lerkf Chief Administrative Officer MPK/PLB/ms ATTACHMENTS: 1. Correspondence from Fleurette Simmonds, Secretary-Treasurer, Brownsdale Community Centre. 2 . Terms and Conditions under which the Break-Open Ticket (Nevada) Licence is issued. Copy of Council's decision to: Fleurette Simmonds, Secretary-Treasurer Brownsdale Community Centre Gulf Course Road Newcastle, Ontario L1B 1L9 � � 7 COUNCIL DIRECTION D-13 FED I q 17 ' Patti Barrie Clerk Town of Newcastle RE : Exemption of sections 3 , 4b and 17b of Form BOIL-TC Dear Ms . Barrie : We are the Brownsdale Community Center and we are asking for this exemption so that we may be allowed to sell the Nevada tickets at events held at our center , like the bingo every Monday night. By allowing this, we hope to be able to become more self sufficient, therefore keeping the amount of our grant request to the town to a minimum each year . Thank You JA U0 Fleurette Simmonds Sect'y/Treasurer Brownsdale Community Centre N t l a �f TERNS AND CONDITIONS UNDER MUCH THE BREAK-OPEN TICKET LICENCE IS ISSUED (FORM BD92-TC) It is a condition of each licence that: (1) The licencee shall comply with Sections 189 and 190 of the Criminal Code of Canada. (2) (a) the licencee shall comply with all the terms and conditions set out in the application for licence. (b) an application for Break-Open Tickets shall be made either: (i) to the local Municipal Council in those Municipalities where all Break-Open Ticket licences are issued by that Municipality with the exception of the provisions contained in Section 5, or, in all other cases (ii) to the Lotteries Branch, after appropriate approval is obtained from the local Municipal Council or Band Council where the sales are proposed to take place. (3) A Break-Open Ticket Licence shall only be issued to a charitable or religious organization which owns or regularly occupies premises at which tickets will be offered for sale. (4) (a) Each applicant for a licence shall specify one designated location at the address where all Break-Open Tickets will be sold. If a licence is issued, tickets shall not be sold at any place other than the location designated in the application and specified on the licence. (b) The designated location specified pursuant to this section shall not be a public, commercial, retail location, nor a location licenced by the L.L.B.O. as a public tavern or beverage room. (5) Break-Open Tickets may be sold in association with another Social Gaming event provided that: (i) the tickets are sold under a licence issued by the Lotteries Branch pursuant to Section 2(b)(ii) (ii) the licence is issued only to the charitable or religious group(s) conducting the other event(s) at the location where the tickets are to be sold (iii) all terms and conditions for the sale of Break-Open Tickets and the conduct of the other event(s) are complied with. (6) No licence shall be issued for a period exceeding six months. (7) A licence shall be issued only for the sale of Break-Open Tickets which retail for a maximum of .504 and conform with the ticket quantities, prices and prize payouts as provided below; scratch-off or other forms of break-open tickets are not permitted. The value of any prize awarded shall not exceed $100.00. S COMMON NO.OF TICKETS PRICE PER GROSS UNIT NO.OF WINNING PRIZES ICEN NAME PER UNIT TICKET REVENUE TICKETS PER UNIT PER UNIT FEE Regular 1668 or $ .50 $ 834 or 224 $600.00 $10.0 1664 $ 832 Super 2184 $ .50 $1092 224 or $800.00 $12.00 228 Junior 1668 or $ .25 $ 417 224 $284.00 $5.00 1664 $ 4.16 - 3 - (21) All Break-Open Tickets shall be opened by the purchaser at the premises stated on the licence and all winning tickets shall be exchanged for cash on the day of sale. (22) Winning tickets shall be defaced by the seller at the time of prize payout. (23) Each licencee will be held responsible for and shall guarantee the payment of all winnings. (24) The licencee shall post the Break-Open Ticket Licence in a conspicuous place at the premises where tickets are being sold. (25) The licencee shall obtain invoices for all Break-Open Tickets purchased and retain all invoices for a period of no less than two years. (26) Each licence shall at all times maintain complete security over the Break-Open Tickets in its possession and all funds associated therewith. For control of inventory purposes, all stock must be stored and kept in one fixed location in order to permit, if requested, the periodic reconciliation of stock usage and cash flow. (27) (a) The licencee shall not permit any person under the age of sixteen years to purchase a ticket. (b) The licencee shall not extend credit, accept cheques or accept payment by way of credit card for the purchase of any Break-Open Tickets. (28) Each licencee shall submit a -report on the sale of Break-Open Tickets as set out in Form BOIL-R. (29) Such officers as the Minister and Municipal Council may appoint, and all Peace Officers shall, at all reasonable times, have direct and unencumbered access to enquire into the nature, management and conduct of the proceedings for which the licence has been granted, either prior to, during, or after the conclusion of such proceedings. (30) A licence may be suspended, cancelled or renewal refused by the issuing authority for breach of any term or condition. (31) The Minister may, at any time, suspend or cancel a licence for the breach of any term or condition, or where, in his opinion, to do so is in the public interest. TERNS AND CONDITIONS UNDER WHICH THE BREAK-OPEN TICKET LICENCE IS ISSUED (FORM BO`I'L-TC) It is a condition of each licence that: (1) The licencee shall comply with Sections 189 and 190 of the Criminal Code of Canada. (2) (a) the licencee shall comply with all the terms and conditions set out in the application for licence. (b) an application for Break-Open Tickets shall be made either: (i) to the local Municipal Council in those Municipalities where all Break-Open Ticket licences are issued by that Municipality with the exception of the provisions contained in Section 5, or, in all other cases (ii) to the Lotteries Branch, after appropriate approval is obtained from the local Municipal Council or Band Council where the sales are proposed to take place. (3) A Break-Open Ticket Licence shall only be issued to a charitable or religious organization which owns or regularly occupies premises at which tickets will be offered for sale. (4) (a) Each applicant for a licence shall specify one designated location at the address where all Break-Open Tickets will be sold. If a licence is issued, tickets shall not be sold at any place other than the location designated in the application and specified on the licence. (b) The designated location specified pursuant to this section shall not be a public, commercial, retail location, nor a location licenced by the L.L.B.O. as a public tavern or beverage room. (5) Break-Open Tickets may be sold in association with another Social Gaming event provided that: (i) the tickets are sold under a licence issued by the Lotteries Branch pursuant to Section 2(b) (ii) (ii) the licence is issued only to the charitable or religious group(s) conducting the other event(s) at the location where the tickets are to be sold (iii) all terms and conditions for the sale of Break--Open Tickets and the conduct of the other events) are complied with. (6) No licence shall be issued for a period exceeding six months. (7) A licence shall be issued only for the sale of Break-Open Tickets which retail for a maximum of .50(� and conform with the ticket quantities, prices and prize payouts as provided below; scratch-off or other forms of break-open tickets are not permitted. The value of any prize awarded shall not exceed $100.00. t COMMON NO. OF TICKETS PRICE PER GROSS UNIT NO. OF WINNING PRIZES 1,ICENCE NAME PER UNIT TICKET REVENUE TICKETS PER UNIT PER UNIT FIE UNI Regular 1668 or $ .50 $ 834 or 224 $600.00 $10.0 1664 $ 832 Super 2184 $ .50 $1092 224 or $800.00 $12.00 228 Junior 1668 or $ .25 $ 417 224 $284.00 $5.00 1664 $ 4.16 - 2 - (8) The licencee shall forward a copy of the licence to the manufacturer or the distributor from which tickets are to be purchased. (9) The applicant shall supply, upon the request of the licencing authority, a signed right of access from the distributor and the manufacturer of the tickets for which the application is submitted. (10) The licencee shall indicate on the face of the tickets the name of the organization, the numbers and amounts of the prizes to be awarded, the price of a ticket, the serial number of the ticket, the licence number and the name of the manufacturer of the ticket. (11) The licencee shall maintain all funds raised in a separate account. Such account shall be appropriately designated and into it shall be deposited all and only monies received from the operation of the Break-Open Ticket Lottery less the cash payments made for prizes and administrative expenses. All withdrawals from such designated lottery account shall be exclusively by cheque and only be for the purpose of the payment of the necessary and reasonable expenses incurred in the operation of the lottery or for the disbursement of . net proceeds derived for one or more charitable object or purposes. The con-minglings of monies derived from the conduct of a lottery with any other funds of the licencee or monies derived from Break-Open Tickets Lottery with monies derived from any other type of lottery is strictly prohibited. (12) The gross receipts derived from the sale of Break-Open Tickets shall be used for the charitable or religious objects or purposes set out by the licencee in the application for the licence less all reasonable costs actually expended for the payment of prizes, the purchase of tickets, administrative costs and licence fees. (13) All proceeds derived from the sale of Break-Open Tickets shall be used for a charitable or religious object or purpose in Ontario. (14) No part of the proceeds derived from the conduct of a Break-Open Ticket Lottery shall be applied to the premises at which the sale of Break-Open Tickets is authorized unless the use of the proceeds for such purpose shall enhance the ability of the licencee to perform services of public good or welfare, and written permission is obtained from the Licencing Authority. The maximum amount of proceeds which any licencee may expend on the premises shall not exceed twenty-five percent of the total net proceeds derived from the conduct of the lottery. (15) No licencee shall offer for sale any ticket or number of tickets not contained in a jar, box or other container in which all tickets of the given unit have been placed for sale. (16) When the number of tickets within the container has been apparently reduced by one-half, the licencee shall refill the container by adding an additional unit (units) of tickets. (17) (a) The licencee shall designate a bona-fide member or members of the organization to be primarily responsible for the sale of tickets, the payment of prizes and the keeping of all required records. (b) The actual handling or selling of tickets shall not be delegated to any organization, company, entity, or to any other person who is not a bonafide member of the licencee. (18) No person who is in any way associated with the sale of Break-Open Tickets shall be permitted to purchase a ticket or participate in the winnings of any ticket. (19) No person or organization shall receive any remuneration for selling Break-Open Tickets. Maximum administrative expenses for the sale of tickets shall not exceed .01C (one cent) for each ticket sold. (20) The licencee shall not sell any ticket at a price other than the price appearing on the face of the ticket. . ..3 - 3 - (21) All Break-Open Tickets shall be opened by the purchaser at the premises stated on the licence and all winning tickets shall be exchanged for cash on the day of sale. (22) Winning tickets shall be defaced by the seller at the time of prize payout. (23) Each licencee will be held responsible for and shall guarantee the payment of all winnings. (24) The licencee shall post the Break-Open Ticket Licence in a conspicuous place at the premises where tickets are being sold. (25) The licencee shall obtain invoices for all Break-Open Tickets purchased and retain all invoices for a period of no less than two years. (26) Each licence shall at all times maintain complete security over the Break-Open Tickets in its possession and all funds associated therewith. For control of inventory purposes, all stock must be stored and kept in one fixed location in order to permit, if requested, the periodic reconciliation of stock usage and cash flow. (27) (a) The licencee shall not permit any person under the age of sixteen years to purchase a ticket. (b) The licencee shall not extend credit, accept cheques or accept payment by way of credit card for the purchase of any Break-Open Tickets. (28) Each licencee shall submit a -report on the sale of Break-Open Tickets as set out in Form BOIL-R. (29) Such officers as the Minister and Municipal Council may appoint, and all Peace Officers shall, at all reasonable times, have direct and unencumbered access to enquire into the nature, management and conduct of the proceedings for which the licence has been granted, either prior to, during, or after the conclusion of such proceedings. (30) A licence may be suspended, cancelled or renewal refused by the issuing authority for breach of any term or condition. (31) The Minister may, at any time, suspend or cancel a licence for -the breach of any term or condition, or where, in his opinion, to do so is in the public interest.