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HomeMy WebLinkAboutCD-6-92 r THE CORPORATION OF THE TOWN OF NEWCASTLE REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# 7 Date: MARCH 2, 1992 Res. CD-6-92 By Law# Deport#: — File#: Subject: PERMISSION TO SELL BREAK-OPEN LOTTERY (NEVADA) TICKETS MULTIPLE SCLEROSIS SOCIETY, OSHAWA Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report CD-6-92 be received; 2 . THAT the request received from Don Webb, Chapter Chairperson, Multiple Sclerosis Society of Canada, for approval of a licence for the sale of Break-Open Lottery (Nevada) Tickets, be denied on the basis that the Town of Newcastle is not the home based municipality of this organization; and 3. THAT Don Webb be advised of Council's decision and he be forwarded a copy of Report CD-6-92 . BACKGROUND AND COMMENT On February 4, 1992, correspondence was received from the Multiple Sclerosis Society of Canada requesting the approval of a licence for the sale of Nevada Break-Open Lottery Tickets through the Smoker's Plus located in the Bowmanville Mall. (Attachment #1) This was reviewed by Council on February 10, 1992, at which time Resolution #C-91-92 was passed, as follows: "THAT the correspondence received from Don Webb, Chapter Chairperson, Multiple Sclerosis Society of Canada, requesting approval of a licence for the sale of Nevada Break-Open Lottery tickets, be received; Continued . . . . . /2 THOS 4S aFi.iEO ON RE-DGAPER Report CD-6-92 - 2 - February 24, 1992 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 Don Webb be advised of Council's decision. " Verbal contact with the applicant has confirmed that the applicant is seeking exemption from Sections 3, 4(b) and 17 (b) of the "Terms and Conditions" under which the Break-Open Ticket Licence is issued. (Attachment #2) 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. " Section 4(b) 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 licenced by the L.L.B.O. as a public tavern or beverage room. " 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 . 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, 4(b) and 17 (b) of the Terms and Conditions of the Break-Open Ticket (Nevada) Licence, provided that all other terms and conditions are complied with. (Attachment #3) On February 13, 1992, three municipalities were contacted and the following information was obtained: City of Oshawa The City of Oshawa issues a Break-Open Ticket (Nevada Licence) to: The Royal Canadian Legion The Moose Lodge Oshawa General Hospital Auxiliary, and Royal Canadian Air Forces Association - Oshawa Airport 6n 1J G Continued . . . . . /3 Report CD-6-92 - 3 - February 24, 1992 Council, to date, has not approved a licence to an applicant requesting relief from any exemption of the "Terms and Conditions. " However, due to the increasing number of applications requesting exemption from the "Terms and Conditions" , staff is delving further into this issue and will, in the not too distant future, make recommendations to Council on approving some of the applications subject to the applicant adhering to certain conditions set by the City of Oshawa. Town of Whitbv The Town of Whitby issues a Break-Open (Nevada) Licence to: The Royal Canadian Legion (2 branches) The Licensing Officer has advised that, to date, licences have not been approved to an applicant seeking exemption from the "Terms and Conditions" of the Break-Open Ticket Licence, however, because these requests have become more numerous, staff have been directed to review the matter and make recommendations for Council's consideration. 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) . Two organizations have been denied approval of a licence by the Town of Ajax on the basis that their home base was, in one case, Barrie and, in the other instance, Scarborough. Although Councils of Municipalities have been granted discretionary powers by the Province to grant exemptions to Sections 3, 4(b) and 17 (b) of the Terms and Conditions of this type of licence, the Licensing Policies of the Ministry of Consumer and Commercial Relations, Lotteries Branch state that: "Organizations wishing to conduct break open ticket lotteries can be licensed only in the municipality in which they are based, unless they are selling tickets as a member of a bingo sponsor's association. " (Attachment #4) This is a Provincial Policy and must be adhered to by the Town of Newcastle. Continued . . . . ./4 i Report CD-6-92 - 4 - February 24, 1992 It is, therefore, recommended that the correspondence received from Don Webb, Chapter Chairperson, Multiple Sclerosis Society of Canada, requesting approval of a licence for the sale of Break- Open Lottery (Nevada) Tickets, be denied on the basis that the Town of Newcastle is not the home based municipality of this organization. Respectfully submitted Recommended for Presentation to Council Patti . re, A.M.C.T. Lawrence otseff, M.C.I.P. Too Clerk Chief A i strative Officer i a MPK/PLB/ms Attachments: 1. Correspondence from Don Webb, Chapter Chairperson Multiple Sclerosis Society of Canada; 2 . Terms and Conditions; 3. Exemptions to Terms and Conditions; and 4. Entertainment Standards Branch, Lotteries Section, Excerpt From Policy Manual. Interested Party: Mr. Don Webb, Chapter Chairperson Multiple Sclerosis Society of Candada P.O. Box 1201, Station B Oshawa, Ontario L1J 5Z1 6 n ' ATTACHMENT #1 COUNCIL DIRECTION Multiple Sclerosis Society of Canada P Soci6t6 canadienne de 1p fci6rose an plaques Durham Regional Chapter 15 FEB P.O. Box 1201 Station K Oshawa UJ 5ZI (416)579-7727 The Corporation of the Town of Newcastle 40 Temperence St. , Bowmanville,ontario. For consideration of the Town council . The Durham Regional chapter of Multiple Sclerosis society of Canada is attempting to get approval of a licence for the sale of Nevada Break Open Lottery tickets through the Smoker' s Plus located in the Bowmanville mall , 243 King -Qt . ,E . ,Bowmanville . With the ever increasing number of persons being diagnosed as having M. S . in Durham Region,our case load has increased to the point that we have one of the largest in the province. We are hoping to receive approval for this licence which will allow us to raise funds needed to continue the services to our clients so they do not have to become a burden on the public purse . D1S-rl5Q .k:IJUMON Don Webb ,Chapter Chairperson. -- --------------------------- ---------- n ------------------ X THE TOWN OF ' ew�astle ONTARIO i February 12, 1992 Mr. Don Webb Chapter Chairperson Multiple Sclerosis Society of Canada Durham Regional Chapter P.O. Box 1201 Station B Oshawa, Ontario L1J 5Z1 Dear Mr. Webb: RE: APPROVAL FOR SALE OF A NEVADA LOTTERY - FILE: P09.4268.L0 At a meeting held on February 10, 1992, the Council of the Town of Newcastle considered your letter regarding the above matter and passed the following resolution: "THAT the correspondence received from Don Webb, Chapter Chairperson, Multiple Sclerosis Society of Canada, requesting approval of a licence for the sale of Nevada Break Open Lottery 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 Don Webb 'be advised of Council's decision. " Once this matter has been reviewed, you will be advised of the decision. Yours truly, Patti L. Barrie, A.M.C.T. Town Clerk PLB/km kDn I CORPORATION OF THE TOWN OF NEWCASTLE 40 TEMPERANCE STREET • SOWMANVILLE • ONTARIO • L1C 3A6 (416) 623-3379 FAX 623-4169 RwvCLEO PMER ATTACHMENT #2 TERM AND CONDITIONS UNDER MiICH 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-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 tickett 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 ' PER 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 $ .25 $ 417 224 $284.00 $5.0]0 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 saie. (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. ATTACHMENT #2 TERMS AND CONDITIONtS UNDER WHICH THE BREAK-OPEN TICKET LIMIM IS ISSUED (FORM BO`M-'IC) It is a condition of each licence that: (1) The licencee shall cooly 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 ticket§ 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: W 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. 'Oh11110N NO. OF TICKETS PRICE PER GROSS UNIT NO. OF WINNING PRIZES �I NAME PER UNIT TICKET REVENUE TICKETS PER UNIT PER UNIT F'EE PER UN Regular 1668 or S .50 $ 834 or 224 $600.00 $10.0 1664 $ 832 Super 2184 $ .50 S1092 224 or $800.00 $12.00 228 Junior 1668 or $ .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 .01i� (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. ATTACHMENT #3 ontano oi,ce of the Ministry of Ministere de is 416is63-0311 555 Yonge Street Toronto,Ontario Minister Consumer and Consommation M7A2H6 Bureau du Commercial et du Ministre 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 , 1 have been made aware of a number of charitable and community spirited groups which would otherwise qualify i; 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 I impractical to sell tickets from that i location ; ( c ) the sate 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 . c MONTE KWINTER Minister ATTACHMENT #4 ENTE.!PAYNMENT STANDARDS BRANCH DATE SECTION LOTTERIES SECTION POLICY MANUAL 30/07/89 7.5. 1 CHAPTER 7 LICENSING POLICIES SECTION 5 BREAK OPEN TICKETS SUBSECTION 1 GENERAL BREAK 'OPEN TICKETS In order to effectively administer break open ticket -lotteries in accordance with the principles outlined in Section 1. 3 and Section 7. 1 of this manual, the following policies apply in the licensing of these events: • Organizations wishing to conduct break open tickets lotteries can be licensed only in the municipality in which they are based, unless they are selling tickets as a member of a bingo sponsor's association: • Organizations may be licensed to - sell tickets from one location only, and must choose one designated location from which all tickets are to be sold. • Organizations selling break open tickets as part of a bingo sponsor's association cannot be licensed to sell tickets at any other location. • Only one break open ticket licence per address or location may be issued. • Where the organization is a national or provincial one with chapters throughout the province, each chapter may obtain a break open ticket licence provided that: • the chapter is an incorporated, legal entity with a specific mandate • the licence is issued for the chapter's home base municipality • only one licence per chapter is issued • Wherever practical, the sale of tickets should be licensed for the premises which is regularly owned or occupied by the applicant organization.