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HomeMy WebLinkAboutCRPS-10-108 - Lottery Break Open Ticket Regulations - Council PolicyREPORT REPORT TO: Councillor B. Vrbanovic, Chair and Members of the Finance and Corporate Services Committee DATE OF MEETING: June 21, 2010 SUBMITTED BY: R. Gosse, Director of Legislated Services/City Clerk PREPARED BY: Patricia Harris, Manager of Licensing WARD(S) INVOLVED: DATE OF REPORT: June 14, 2010 REPORT NO.: CRPS-10-108 SUBJECT: LOTTERY BREAK OPEN TICKET REGULATIONS - COUNCIL POLICY - I-880 RECOMMENDATION: That City of Kitchener Council Policy I-880 (Lottery Break Open Tickets – Additional Terms and Conditions) be amended in the form attached to Corporate Services Report CRPS-10-108 to reflect the changes to the Alcohol and Gaming Commission’s Terms and Conditions to Break Open Ticket Lotteries, that will come into effect July 1, 2010. BACKGROUND: Provincial Regulations permit municipalities to add additional terms and conditions for lotteries that are operated in their municipality provided the municipality is aware that Provincial Terms and Conditions take priority. The Alcohol and Gaming Commission (AGCO) has made changes to the Break Open Ticket Regulations and after staff reviewed Council Policy I-880 in context of these changes, staff is recommending amendments to the policy that will make the process simpler for licensees. . REPORT: The AGCO is making regulatory changes to Break Open Ticket Lotteries, effective July 1, 2010. Most changes deal with provincial terms and conditions, however, the regulations will also allow greater flexibility for municipalities and licensees. One such change allows licensees to apply for a single licence for all Break Open Ticket types sold by the licensee at a retail location. Currently, each ticket type must have a separate licence and all licences must end on the same date. This change can be implemented without amending council policy and will make it easier and simpler for both the licensee and staff. One change that does require an amendment to council policy I-880 is in regard to the length of time a licence is issued for. Currently the policy restricts a licence to 3 months whereas the new regulations will allow a municipality to issue a licence for up to 5 years. In reviewing this change, staff is of the opinion that 5 years is much too long as it will not allow sufficient and timely control with respect to compliance issues of a licensee. Additional, since the licence fee is based on the amount of the prize, there is no affect on fees paid regardless of the length of ê ó ï time given for a licence. Staff is recommending that licences be issued for an initial time period of 6 months with a possible extension of an additional 12 months if tickets from the licence are not sold. In reviewing the policy in context of the new regulations, staff also found a clause that is ineffective, overly bureaucratic and should be removed. Section 8 of the current policy requires that first time licensees be granted a temporary one month licence in order to determine their ability to meet Break Open Terms and Conditions. Staff believe this length of time is insufficient to assess an organization’s ability to meet the Provincial terms and conditions, therefore, staff is recommending it be removed. Attached is the proposed amended policy as outlined in this report. FINANCIAL IMPLICATIONS: None ACKNOWLEDGED BY: T. Speck, General Manager of Corporate Services ê ó î COUNCIL POLICY RESOLUTION I-880 DATE: DECEMBER 13, 1993 POLICY NUMBER: POLICY TYPE: LICENCE LAST AMENDED: JUNE 20, 2005 SUBJECT:LOTTERY BREAK OPEN TICKETS – ADDITIONAL TERMS & CONDITIONS POLICY CONTENT: 1. Licences and/or permission to sell Break-Open Tickets in the City of Kitchener shall be granted only to those licensees who have a physical presence in the City of Kitchener, or can justify their charitable benefit to residents of the City of Kitchener, with the majority of the proceeds from the lottery remaining in the Region; 2. Licensees shall provide to the Municipality a list of Designates, including their addresses and telephone numbers, who will be responsible for ensuring that the Provincial and Municipal Terms and Conditions for Break-Open Ticket Sales are met (this includes the rd Licensee, the Consultant (if any) and a representative from the 3 Party Location); 3. The Licensee shall maintain complete control over the tickets and money from Break-Open Tickets at all times; 4. Monies from Break-Open Tickets shall not be commingled with other money either by the Licensee or at the location where tickets are sold; 5. The sellers of Break-Open Tickets shall be at least 16 years of age; 6. Only the sellers of Break-Open Tickets shall remove tickets from the container; 7. The Licensee shall meet with the Municipality prior to a licence being issued to discuss the Terms and Conditions under which the licence is issued; 8. License shall be issued for an initial time period of 6 months with a possible extension of up to 18 months if all tickets from the licence are not sold; 9. That the maximum number of Third Party Locations selling Provincially licensed Break-Open Tickets in Kitchener be limited to not more than 25% of the total number of Third-Party Locations selling Break-Open Tickets in Kitchener. ê ó í