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HomeMy WebLinkAboutCD-9-92 THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# -c" 5C7_ 4a E- Efate: MARCH 2, 1992 Res. # Report#: CD-9-92 File#: By-Law# Subject: PERMISSION TO SELL BREAK-OPEN LOTTERY (NEVADA) TICKETS TYRONE COMMUNITY CENTRE Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report CD-9-92 be received; 2 . THAT the application received from Arlene Yeo, Chairman, Tyrone Community Centre, for approval of a licence for the sale of Break-Open Lottery (Nevada) Tickets, be exempted from Sections 3 and 17(b) of the Terms and Conditions of the Licence; 3. THAT the Licence be issued provided the Licencee complies with all other Terms and Conditions of the Licence; and 4. THAT Arlene Yeo be advised of Council's decision and she be forwarded a copy of Report CD-9-92 . BACKGROUND AND COMMENT: On February 21, 1992, the Clerk's Department received an application to Manage and Conduct a Break-Open Ticket (Nevada) Licence from Arlene Yeo, on behalf of the Tyrone Community Centre. Verbal telephone contact with the applicant confirmed that the applicant is seeking exemption from Sections 3 and 17(b) of the Terms and Conditions of the Break-Open Tickets (Nevada) Licence. Continued . . . . ./2 Report CD-9-92 - 2 - March 2, 1992 Section 3 of the "Terms and Conditions" states that: "A Break-Open 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. " The Members of the Tyrone 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; and 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. Section 17 (b) 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 licencee. " NOTE: Underscoring added for emphasis purposes. The applicant has advised that the tickets will in some instances, be sold by a volunteer rather than a bonafide member. The request by the Tyrone Community Centre is very similar to the application made by the Brownsdale Community Centre for a Break- Open Ticket (Nevada) Licence which was approved by Council on June 24, 1991. (Resolution #GPA-414-91 - Attachment #1) Therefore, a precedent has been set for this type of request. Continued . . . . ./3 � iJ Report CD-9-92 - 3 - March 2, 1992 The Tyrone Community Centre is based in the Town of Newcastle, the Centre is "beneficial to the community" , and tickets will be sold by volunteers only during special circumstances. It is, therefore, recommended that the application received from Arlene Yeo, Chairman, Tyrone Community Centre, for approval of a licence for the sale of Break-Open Lottery (Nevada) Tickets, be exempted from Sections 3 and 17 (b) of the Terms and Conditions of the Licence; That the Licencee be issued provided the Licencee complies with all other Terms and Conditions of the Licence; and That Arlene Yeo be advised of Council's decision and she be forwarded a copy of Report CD-9-92 . Respectfully submitted Recommended for Presentation to Committee Pat e, A.M.C.T. Lawrenc Kotseff, M.C.I .P. Town-'Clerk Chief Administrative Officer MPK/PLB/ms Attachments: Terms and Conditions Exemptions to Terms and Conditions Resolution #GPA-414-91 approved by Council on June 24, 1991 Interested Party to be Advised of Council's Decision: Mrs. Arlene Yeo, Chairman Tyrone Community Centre R.R. #1 Bowmanville, Ontario L1C 3K2 DURHAM REGIONAL POLICE SERVICE rEo ZI 2 os V11 13Z February 20th, 1992 9MORUDUM TO: Mrs . Patti L. Barrie Town Clerk 40 Temperance St. Bowmanville, Ontario FROM: Supt. R. Brown 17 Div. , C. I .B. The writer can see no reason why the following licence should not be granted: Tyrone Community Centre Nevada Ticket Lottery �N RB:da Supt. R. Brown Criminal Investigation Branch DRP 32A REV 01191 ATTACHMENT #1 TERMS AND CONDITIONS UNDER WHICH THE BREAK-OPEN TICKET LICENCE IS ISSUED (FORM BOIL-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-Olen 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 .50C 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. 'Oh1MON NO. OF TICKETS PRICE PER GROSS UNIT NO. OF WINNING PRIZES ICENCE NAME PER UNIT TICKET REVENUE TICKETS PER UNIT PER UNIT FEE UN Regular 1668 or S .50 $ 834 or 224 $600.00 $10.0 1664 $ 832 Super 2184 $ .50 $1092 224 or $800.00 $12.00 228 Junior 1668 or S .25 $ 417 224 $284.00 $5.00 1664 $ 416 - 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 comminglings 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 conplete 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. ATTACHMENT #2 �tano Ifice of the Ministry of Ministere de la 416/963-0311 555 Yonge Street Toronto.Ontario inister Consumer and Consommation M7A2H6 ireau du Commercial et du inistre Relations Commerce March 6 , 1987 TO ALL MUNICIPAL COUNCILS In December 1986 , terms and conditions for the issue of Nevada ticket licence were sent to all municipalities by the Lotteries Branch of my ministry . I approved those terms and conditions and I strongly recommend they be complied with by all licencing officials . However , I have been made aware of a number of charitable and community spirited groups which would otherwise qualify for Nevada ticket licence , but do not own or regularly occupy premises as required by Section 3 of the terms and conditions . Indeed , many of these groups were in receipt of licence and committed to worthwhile projects when the terms and conditions were issued . In order to alleviate the hardship created for some charitable groups , 1 hereby authorize a municipal council , in its own discretion , to grant an exemption to the requirements of Sections 3 , 4(b ) and 17 (b) of the terms and conditions provided that : 2/ 2 - (a ) the licence applicant cannot meet the requirements of Section 3 ; or ( b ) the licence applicant meets the requirements of Section 3 but it is impractical to sell tickets from that location ; ( c ) the sale of tickets is limited to ONE location only ; and (d ) all other sections of the terms and conditions are complied with . Where an exemption has been granted , a municipal council must ensure the licencee complies with ALL OTHER TERMS AND CONDITIONS and the recipient charity receives maximum proceeds from the sale of Nevada Tickets . t MONTE KWINTER Minister ATTACHMENT #3 G.P.&A. Minutes - 13 - June 17, 1991 UNFINISHED BUSINESS Request for Break-Open Resolution #GPA-41491 Ticket Licence (Nevada) Brownsdale Moved by Councillor Stapleton, seconded by Councillor Hooper Community Centre P09.1402.GE THAT Report CD-18-91 be received; THAT the request received from Fleurette Simmonds, Secretary- Treasurer, Brownsdale Community Centre, for a licence to sell Break- Open Tickets (Nevada), be approved as the tickets w$1 be sold on the Brownsdale Community Centre premises; THAT Fleurette Simmonds be advised that, if Break Open Tickets are to be sold in conjunction with a Bingo, the application for the licence must be made directly to the Lotteries Branch of the Ministry of Consumer and Commercial Relations; and THAT Fleurette Simmonds be advised of Council's decision and she be forwarded a copy of Report CD-18-91. "CA,RRIED„ 622