Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of Social Planning and Director of Legal Services

SUBJECT:

Gaming Control Act

 

RECOMMENDATION

CITY MANAGER’S COMMENTS

COUNCIL POLICY

· On January 27, 1987, Council asked the Attorney-General to begin a review of the regulations governing the operation of casinos as soon as possible, and that the City, and other concerned groups and individuals, be given the opportunity to express in detail their concerns and suggestions for improvements. Council also expressed its concern that revisions to casino gambling regulations adhere to basic principles, including that the maximum financial benefits accrue directly to the social service agencies sponsoring the events; and that appropriate, strict controls be in place to discourage or prevent possible negative social consequences, such as compulsive gambling or criminal activity.

· On July 26, 1994, Council requested that the Provincial Government ensure that there will be municipal participation in the evaluation of community impacts for any expansion to gaming activity, including video lottery terminals, gaming on First Nations lands and major casinos. Council further requested that gaming legislation or regulations include municipal endorsement of specific gaming locations prior to approval, and that approval of any new gaming activity be conditional on a portion of the revenue being available to local government for mitigation measures.

· On November 1st, 1994, Council passed a resolution opposing gaming expansion including the introduction of video lottery terminals (VLTs) and, that the City of Vancouver considered gaming expansion a matter of determination by the people of British Columbia through appropriate broad and local involvement in a meaningful consultation program.

· On March 25, 1997, Council reiterated its demand to the Provincial Government for a comprehensive Gaming Act before expanded gaming activity goes forward. Council further advised the Minister of Municipal Affairs and the Minister of Employment and Investment that Vancouver opposed the addition of slot machines as an expanded gaming option.

· On October 7, 1997, Council adopted amendments to the Zoning and Development By-law to permit a limited number of charity-operated casinos in certain areas of the city and to prohibit casinos with slot machines. The amendment prohibiting casinos with slot machines was challenged by the B.C. Lottery Corporation and the City successfully defended the By-law in the B.C. Supreme Court and Court of Appeal.

· In January 1999, the Province introduced the White Paper on Gaming which recommended legislation changes which could have drastically limited historic municipal powers in relation to casinos and other gaming establishments. On March 9, 1999, Council responded to the Provincial White Paper, by reiterating its stand on the preservation of municipal powers on issues surrounding gambling expansion.

UBCM POLICY

On September 23, 1994 the UBCM unanimously endorsed the resolutions submitted by the City of Vancouver:

On June 17, 1999 UBCM signed a Memorandum of Agreement with the Province, whereby the Province fully affirms the municipal powers related to casino location, relocations and scope and type of gaming in gaming facilities within municipal boundaries.

PURPOSE AND SUMMARY

This Administrative report provides Council with information regarding the Gaming Control Act (Bill 30-2000), and recommends that this report constitute the official response from the City of Vancouver to the Provincial Government. This report is also to be submitted to the Union of British Columbia Municipalities (UBCM), which late in August approached the City requesting feedback on the Gaming Control Act.

While supportive of the need to enact gaming legislation, and recognizing that the Gaming Control Act is for the most part a significant improvement over previous attempts to enact gaming legislation, staff believe that the Gaming Control Act still needs some important clarifications before it can be fully supported.

The main concerns are in reference to the recognition of traditional municipal powers (as understood in the Memorandum of Agreement the Province signed with UBCM on June 17, 1999), and some of the definitions outlined in the Act (such as ‘substantial change’, and ‘gaming events’), that may have implications for future developments of gaming activity.

It is important to note that the UBCM is preparing a comprehensive response to the Gaming Control Act on behalf of all municipalities. City staff are collaborating with that effort. This report is therefore concerned with those items that are of uppermost interest to the City of Vancouver.

BACKGROUND AND DISCUSSION

The City of Vancouver and the UBCM have been requesting comprehensive gaming legislation for many years, and in particular since 1994, when Council rejected the provincial plans to develop a commercial casino on Vancouver’s waterfront.

White Paper on Gaming and 1999 Gaming Control Act

The Province has acknowledged the need for a Gaming Act on many occasions and on February 2, 1999 they released the White Paper on Gaming and the first version of a Gaming Control Act, which was never tabled in the Legislature.

During the discussions surrounding the 1999 version of the Gaming Control Act, the City of Vancouver, following a process of some public meetings, responded to the Province on March 9, 1999. Many of the issues identified at that time continue to be pertinent to the present version of the Gaming Act.

The City’s response, in March 1999, to the Minister in charge of Gaming had five policy components, namely: Municipal Jurisdiction, Social Implications, Economic Implications, Implications to Charities and Policing Implications.

The highlights of the response were:

1. The City opposes the enactment of any legislation that would deprive municipalities of their historic powers to regulate gaming facilities within their boundaries.

2. The City opposes the enactment of any legislation that would give the Minister or the Provincial Government the power to impose expansion of gaming facilities or gaming activities without the consent of the municipality involved.

3. That a proper social impact analysis be conducted prior to gaming expansion.

4. That sufficient dollars be allocated to appropriately fund problem gambling programs, and that the funding formula be tied to increases in gaming activity.

5. That regular and ongoing assessments of economic impacts of proposed and existing gaming facilities be implemented prior to gaming expansion.

6. That the Minister responsible for gaming, together with charity associations, address the concerns of charities related to guarantee of funding and the qualification to participate in bingo operations.
7. That sufficient funds and resources be allocated to enable appropriate policing of both legal and illegal gambling activities.

The opposition to the White Paper and the draft legislation brought the process of tabling the gaming legislation to an end, and subsequently the Province signed an agreement with the UBCM and with charitable organizations on June 17, 1999.

Memorandum of Agreement with UBCM

The signing of the Memorandum of Agreement with UBCM on gaming policy was a significant step forward in the relationship between the Provincial Government and municipalities. Some of the highlights of the Memorandum of Agreement are:

· The Province affirmed the jurisdiction of local governments, specifically with respect to their land use and by-law making powers.

· The Province affirmed the ability of local governments to make decisions as to whether new facilities or re-located facilities will be permitted within their boundaries.

· The Province affirmed the ability of local governments to direct and define the extent, scope and type of casino and bingo gaming permitted within their boundaries, including the acceptance or rejection of slot machines.

· The Province agreed to share gaming revenue with local governments as set out in the White Paper. In Vancouver, this would mean 10 per cent of the net income from local casinos would go to the City.

This Agreement clearly satisfied many of the concerns expressed by municipalities, and particularly by Vancouver City Council, in its response to the provincial White Paper on Gaming. Most importantly, traditional municipal powers over land use and by-law making were recognized and supported.

To view the MOA with UBCM in full please see Appendix A.

Meekison Report

On the same day that the Province signed the Memorandum of Agreement with the UBCM (June 17, 1999), the Provincial Government also indicated it would seek an independent perspective on the issue of relocation of, and changes to, existing gaming facilities in British Columbia.

In July, 1999, Dr. Peter Meekison was appointed to conduct this review and bring forward recommendations. His report, released January 31, 2000, contained 29 recommendations which recognized and validated many of the positions taken by municipalities over the years. Some of the recommendations included:

1. The prompt introduction of Gaming legislation.

2. The establishment of an independent Gaming Control Commission which would regulate and oversee all other gaming agencies, including the Lottery Corporation and the Gaming Commission, bringing a more comprehensive approach to policy and regulatory decisions, and an arms length relationship between cabinet and the granting of licenses.

3. The enhancement of the role of municipalities, and particularly the role of UBCM, in deciding gaming related issues.

The UBCM, with input from many individual municipalities, analysed and responded to the Provincial Government on the recommendations brought forward by Peter Meekison. The UBCM response on February 29, 2000, indicated that the UBCM would “support the principles espoused in the recommendations outlined in the Meekison Report, seek clarification on some recommendations and continue to support the government as it moves forward with legislation in the next session.”

One of the clarifications requested by UBCM, and also by Vancouver City Council, related to the formation of the Gaming Control Commission. They considered it was important to understand how the Commissioners would be selected and appointed.

Municipalities also requested clarification on the issue of a dispute resolution process between two or more local governments with regards to the location of gaming facilities.

Another of Meekison’s recommendations that required further clarification related to changes to existing facilities. The municipalities stated that local government should be allowed to define what constitutes a minor or a major change to a facility.

Bill 30-2000 - the Gaming Control Act

The Gaming Control Act was tabled in the Legislature on July 4th, 2000. The Bill received First reading and the government is currently seeking feedback from stakeholders and from the public before is enacted at the next sitting of the Legislature.

When the Minister in charge of gaming (the Hon. Joy MacPhail) announced the tabling of the legislation on July 4th, 2000, she said:

The full version of the Gaming Control Act can be downloaded from the Ministry of Labour web site at: www.labour.gov.bc.ca/gaming

The legislation is divided into 10 different parts. Within those parts are sections that are of specific relevance, concern and interest to local governments. These include:

Part 1 - Interpretation

Part 2 - Gaming Control Authority

Part 6 - Special Account

CONCLUSION

In conclusion, the Gaming Control Act (Bill 30-2000) is a significant piece of legislation that addresses most of the needs of local governments, but still requires some very significant changes and clarifications as outlined in this report. City staff will continue to work with UBCM and provincial officials to address these concerns.

- - - - -

This document dated for reference the 17th day of June 1999.

Memorandum of Agreement
On Gaming Policy

Between:

The Union of BC Municipalities (UBCM)

-and-

The Government of British Columbia (the Province)

The Province and UBCM have agreed to govern their relationship with respect to gaming issues according to the following principles:

The Province:

· affirms the jurisdiction of local governments, specifically with respect to their land-use and by-law making powers;
· affirms the ability of local governments to make decisions as to whether new facilities or re-located facilities will be permitted within their boundaries;
· affirms local government’s ability to direct and define the extent, scope and type of casino and bingo gaming within their boundaries. It also affirms the ability of local government to decide whether slot machines or other similar devices could be placed within their boundaries;
· will provide an independent and transparent selection process for new and re-located gaming facilities;
· will share gaming revenue with local governments as set out in the White Paper;
· will share gaming revenue with local governments that host gaming facilities, regardless of their stated opposition to gaming, and without the adoption of a Council/Board resolution;
· will consult in a meaningful way with local government in the development of gaming policy changes that may affect local governments;
· will consult in a meaningful way with local governments regarding the form and content of gaming legislation before it is introduced into the Legislature;
· will ensure that charities are guaranteed an ongoing source of revenue from gaming and that eligibility rules for this funding will be maintained;
· will ensure there is a legislative mechanism for consultation / mediation with adjacent communities; and
· reaffirms its commitment that video lottery terminals will not be permitted in British Columbia.

The UBCM intends to:

· actively and cooperatively work with the Province in the development of comprehensive gaming legislation.

The Province and UBCM intend to:

· bring resolution to existing and future disputes through negotiations, where possible, and in a manner consistent with the principles of this Agreement.

These principles will govern the parties’ actions with respect to gaming henceforth, and until legislation consistent with these principles is passed in the Legislature.

_____________________________ ____________________________
John Ranta Honourable Jenny Kwan
President of UBCM Minister of Municipal Affairs

GAMING CONTROL ACT (BILL 30-2000)
PART 2 - SECTIONS 7 AND 8

Location, relocation or expansion of gaming facilities require authority's approval
7 (1) A facility at any location, other than a lawful gaming facility in existence immediately before the coming into force of this section, must not be developed, used or operated as a gaming facility unless

(2) A gaming facility at any location in British Columbia must not be relocated to another location or used or operated at another location unless

(3) A substantial change in the type or extent of gaming events at a gaming facility at any location in British Columbia must not be made unless

(4) A written approval referred to in this section may be given by the authority and may be unconditional or subject to specified conditions.

Local government or first nation approval required for gaming facilities
8 (1) The authority must not give a written approval under section 7 unless the authority

(2) A municipality, regional district or first nation must not give an approval referred to in subsection (1) (a) unless, before or concurrently with giving the approval, the municipality, regional district or first nation satisfies the authority that adequate community input has been sought and considered.

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