Report to: General Committee Report Date: May 3, 2007

SUBJECT: Places of Amusement – Pinball and Video Games Rooms By-law Amendments

PREPARED BY: Darlene Barker Ext. 2128

RECOMMENDATION:

That By-law 2002-289, “A By-law to provide for the Regulating and Licensing of Places of Amusement – Pinball and Video Games Rooms” be amended to:

· Adjust hours of operation to require midnight closing versus the current 11 PM and to allow businesses to operate during school hours;

· Require supervision of youths under 16 years, during school hours and after 9 p.m.;

· Remove redundant sections, now regulated under other legislation (i.e. Fire Code);

· Create two classes of licenses, Class A for establishments with four or more machines and Class B for establishments with three or less;

· Provide requirements to prevent nuisances;

· Require a designated operator be on duty at all times at each establishment;

· Add a process for the refusal to issue and renew licences, and an appeal process; and

· All other necessary housekeeping amendments.

That By-law 2002-284, “A By-law to establish Licence Fees” be amended to establish new licence fees for Class A and Class B Places of Amusement;

That an application for an Order and a schedule of set fines pursuant to the Provincial Offences Act and the rules for the Ontario Court of Justice be made;

And that Staff be authorized and directed to do all things necessary to give effect to this resolution.

EXECUTIVE SUMMARY:

Not applicable

FINANCIAL CONSIDERATIONS:

Not applicable

1. Purpose4. Financial

PURPOSE:

To amend By-law 2002-289 to better address public nuisance and safety-related issues associated with Places of Amusement establishments.

BACKGROUND:

The original Places of Amusement By-law was passed in 1982, largely as a result of public concerns relative to the proliferation of electronic amusement machines in business establishments (ex. variety stores) situated in close proximity to schools. The by-law contained a number of regulations, including restrictions designed to prohibit school age children from using the machines during school hours as well as separation distance from schools.

Today, there are new types of establishments that qualify as places of amusement under the by-law, and staff recommends they be included in the amending by-law. An example would be ‘internet cafes”, which generally fall into one of two categories:

1. Cafés specializing in the playing of computer games on a time basis; and

2. Cafés designed to allow individuals to access the internet and enjoy coffee, sandwiches, etc. at the same time.

Over the past two years, concerns with the By-law 2002-289 regulations and with activities occurring within or outside of Places of Amusement (including internet cafés) have been expressed by both the public and establishment owners. Business owners/equipment vendors have objected to the 11:00 PM restrictions on hours of operation and to the requirement that an establishment with one machine pay the same fee as an establishment with thirty machines (which is cost prohibitive for small establishments).

Creating two new classes of Places of Amusement will address the financial concerns of small businesses. The difference in the amount of the licence fee between Class A and Class B is justified because Class B establishments, having less than four machines, will require less enforcement than Class A establishments, where the primary purpose of the business is a place of amusement and are more susceptible to public nuisance and safety concerns.

The public has expressed public safety/nuisance-related concerns, many of which have stemmed from actual incidents. For instance, there was a stabbing that took place outside an internet café licensed by the Town as a Place of Amusement. At the establishment involved, several contraventions of the By-law were noted, the main one being that the business was open till 3 a.m., well past the 11 p.m. restriction in the by-law. Patrons were essentially using the premises as a meeting/gathering place and only entered the premises to use the washrooms and/or purchase soft drinks and snacks. The police also reported that the establishment’s proximity to residential areas and late night operating hours made it susceptible to criminal activity. There have also been similar such incidents in other Places of Amusement where police had laid charges related to illegal gambling and the illegal sale of tobacco. Late night traffic and the noise from vehicles also contributed to making some Places of amusement sources of public nuisance.

The extended hours of operation and the closing time of midnight are intended to address the concerns of the industry for increased business opportunities, while addressing public safety, nuisance and undesirable activities near the locations.

The requirement to designate an operator who must be on the premises at all times is intended to ensure that all the requirements of the by-law are met.

Public Consultation

A public meeting on proposed changes to By-law 2002-289 was held on January 16, 2007. There were no representations from the public or industry at the meeting.

During the by-law review, discussions and meetings were held with business owners and industry representatives. A workshop was held in December with York Regional Police, Building, Fire and Legal staff to complete a review of the current regulations and identify amendments.

Based on the input received from the above consultation process, staff has developed the following table for Committee’s consideration:
OPTIONS/ DISCUSSION:

ISSUES	RECOMMENDATIONS
Hours of Operation:
Restrictive hours of operation for locations with store front access; 3pm to 11pm, Mon to Fri; noon to 11pm, Sat; and 1pm to 8pm on Sun. Operators of “Internet Cafes” have requested extended hours to attract non-school age clients.	Extend hours of operation, daily from 9am to midnight, for all Places of Amusement, including “Internet Cafes”. Lack of solutions from operators for public safety and nuisance issues in and around businesses do not warrant longer hours past midnight.
Locations in enclosed malls governed by mall hours, some operate until 3am. Hours are applicable to locations licensed by AGCO holding Liquor licence.	Allow licensed establishments to operate machines during licenced hours of operation under Liquor Licence Act.
Age Restrictions:
Businesses in store fronts cannot operate during school hours and youths under 16 years cannot enter premises within enclosed malls before 3 PM. Unsupervised youths being in Places of Amusement late at night. Under the Child and Family Services Act, youths under 16 years of age are required to be supervised	Age restrictions applied consistently to all Places of Amusement regardless of location, except those pursuant to the Liquor License Act. Offence of operator to permit persons under 16 years without supervision during school hours, and after 9pm.
Class of Licences:
Currently fees are $200 for all Places of Amusement regardless of the number of machines and type of business Alcohol should not be permitted to be sold in a premise where the principal business is a Place of Amusement.	Create a Class B licence for businesses with three (3) or less machines with a fee of $100 and charge a $500 fee for Class A licence for four or more machines due to lower administration and enforcement costs of Class B establishments. Prohibit the sale of alcohol in a Class A establishments as minors are allowed in. An establishment holding a Liquor Licence by AGCO only be licensed as a Class B.
Redundant Regulations:
Other Acts now mandate standards originally only required via By-law 2002-288.	Delete redundant references Planning, Building, and Fire regulations; however, maintain compliance with those regulations as a condition of licensing.
Licensing Review and Administration
No procedure or standards to refer an application to the Licensing Committee or for the applicant’s right of appeal. Operator not held responsible to ensure compliance with age restrictions	Add standard licensing clauses providing review and appeal processes in by-law. Add requirement for a designated operator to be on duty at all times and responsible for by-law compliance.

ACCESSIBILITY CONSIDERATIONS:

Addressed through Building Code and Site Plan Control regulations

ENGAGE 21^ST CONSIDERATIONS:

Not Applicable

BUSINESS UNITS CONSULTED AND AFFECTED:

Legal Services

Building Services

Fire and Emergency Services

York Regional Police

RECOMMENDED

BY:

________________________ ________________________

Sheila Birrell, Clerk Andy Taylor, Commissioner