Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

Director of Social Planning and Director of Legal Services

SUBJECT:

Bill 6-2002 - Gaming Control Act

 

RECOMMENDATION

FOR CONSIDERATION

Or

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 1, 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 itsstand on the preservation of municipal powers on issues surrounding gambling expansion.

· On September 12, 2000, Council indicated to the Province, a number of concerns regarding the Gaming Control Act (Bill 30-2000) introduced to the Legislature in July 2000. Some of the concerns raised at the time related to commitments made by the Province through the Memorandum of Understanding signed with UBCM in June, 1999.

UBCM POLICY

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

· On March 15, 1999 the UBCM responded to the Provincial White Paper on Gaming and the Draft Gaming Control Act, indicating a number of concerns related to the proposed legislation, including: the need for consultation with municipalities, local government control of extent and type of gaming, revenue sharing with municipalities hosting gaming facilities.

· 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 Report provides Council with information regarding the Gaming Control Act (Bill 6-2002), and recommends that the Minister Responsible for Gaming in British Columbia be informed of the concerns raised in this Report. It also recommends that this Report be submitted to the Union of British Columbia Municipalities (UBCM), since many of theissues identified in the Report may affect other municipalities as well. Two other recommendations concerning Bill 6 are put forward for consideration.

Historically, Council has been supportive of the need to enact comprehensive gaming legislation. However, staff believe that Bill 6 needs some important changes and clarifications before it can be fully supported.

There are many concerns about Bill 6, but in this Report staff are concentrating on two main issues. The first issue concerns inconsistencies between Bill 6 and the terms of the Memorandum of Agreement (MOA) between UBCM and the Provincial Government signed in June 1999 (attached as Appendix A). The second issue relates to the absence of a statutory commitment on the part of the Provincial Government to respect the present revenue sharing arrangement with municipalities, which could leave municipalities hosting casinos exposed to the loss of this revenue.

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 the 1999 draft Gaming Control Act

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

During the discussions surrounding the 1999 draft 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 Control 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 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 Memoranda of Agreement with UBCM and with charitable organizations in June 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 means 10 per cent of the net income from local casinos goes 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 the prompt introduction of gaming legislation and the enhancement of the role of municipalities, and particularly the role of UBCM, in deciding gaming related issues.

Bill 30-2000 (the Gaming Control Act)

Bill 30 was tabled in the Legislature on July 4th, 2000. The Bill received First Reading, but with the change of government it has been abandoned and replaced by Bill 6-2002.

Bill 30 had many shortcomings and the City of Vancouver indicated either concerns or the need for clarification on the following areas: problems with some of the definitions in the proposed legislation, the creation of a new gaming control authority, consent of local government for location, relocation or expansion of gaming facilities, dispute resolution as to location or relocation of gaming facilities, payments to local government, and expenditures for policing.

The UBCM also expressed a number of similar concerns with this legislation.

Bill 6-2002 - (the Gaming Control Act)

The new Bill 6 was tabled in the Legislative Assembly and given First Reading on March 4, 2002. Staff believe that Second Reading may be imminent.

Bill 6 provides the legislative basis for the policy changes made by the Province on September 17, 2001 when a new management structure for gaming in British Columbia was announced. The announcement included the removal of the bingo sector away from charities and a streamline of gaming agencies to just two agencies, namely the Gaming Policy and Enforcement Branch and an the B.C. Lottery Corporation

Bill 6 represents an attempt to enact comprehensive gaming legislation, which is a much needed step. Staff believe that Bill 6 addresses some issues related to duplication and inconsistency that existed in the gaming sector prior to the introduction of the new management structure. However, there are a number of issues and concerns related to this proposed legislation that have been identified by staff.

Given the short time available, this report focuses on two of the most pressing issues, namely, the lack of consistency with the MOA signed with UBCM in June 1999 (with respect to consultation and municipal control over gaming activities), and issues related to revenue sharing with municipalities. There are other issues which staff have not had the time to fully analyze and may report back on at a future date. These include: problems with the definition of gaming facilities, issues with the authority of the General Manager of the Gaming Policy and Enforcement Branch, and questions related to the dispute resolution as to location or relocation of gaming facilities. Staff have also not had time to analyze the implications of Bill 6 in relation to revenue sharing with charities.

CONCLUSION

In conclusion, the Gaming Control Act (Bill 6-2002) addresses some of the needs in the gaming sector, but there are, still, many issues of concern to municipalities. Municipalities have not been afforded an opportunity for meaningful consultation concerning the proposed legislation as provided for the in the MOA with the UBCM. Existing agreements between the province and municipalities concerning revenue sharing have been given no statutory recognition or protection, as was done in the two previous versions of the legislation. Bill 6 also does not clearly establish a municipality's right to control the nature and extent of gaming within its boundaries. The legislation requires some very significant changes and clarifications as outlined in this report.

- - - - -

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

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