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HomeMy WebLinkAbout5G - Gambling Agenda Report Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 3, 2019 AGENDA #: 5G PREPARED BY: SARAH SCHWARZHOFF, CITY ATTORNEY ANN ORLOFSKY, CITY CLERK PRESENTED BY: SARAH SCHWARZHOFF AGENDA ITEM: CONSIDER ADOPTION OF AN ORDINANCE AMENDING SECTION 305 OF THE CITY CODE RELATING TO GAMBLING AND ADOPTION OF A RESOLUTION APPROVING A SUMMARY OF THE ORDINANCE FOR PUBLICATION GOAL AREA AND OBJECTIVE: Public Safety 5. Address threats to community standards through code enforcement. DISCUSSION: Introduction The purpose of this agenda item is to request City Council adoption of an ordinance amending Section 305 of the City Code relating to gambling. Current Circumstances City staff is requesting revisions to the Gambling regulations to ensure compliance with State law and to streamline administration. Gambling regulation is unique. The State licenses organizations which are permitted to conduct gambling. The only organizations that can be licensed are qualified fraternal, religious, veterans, or other nonprofit organizations. Once an organization is licensed, it then must obtain a premise permit to conduct gambling at a particular location. The State issues premises permits, but the State’s issuance of such a permit is conditioned, in part, on the City’s approval. Alternatively, a qualified organization can obtain an “exempt” or “excluded” permit from the Board to allow for gambling on an event by event basis. These permits must be approved by the City but not necessarily by the Council. The proposed revisions clarify this unique process and set forth the process and conditions for the City’s approval of a premises permit. The application is revised to be a duplicate of the application provided to the State. The regulations relating to background checks, organization criteria and premises criteria are the same which existed in the City Code previously, but the regulations have been relocated. The proposed revisions also set forth the process for the City’s approval of an exempt or excluded permit. Because of the temporary and limited nature of the exempt and excluded permit, the revisions do not include background checks, organization criteria or premises criteria. In addition, because of the limited nature, the revision allows the City Clerk to approve exempt or excluded permits. Inspection language was added to allow the City or County to inspect gambling operations. Penalty language was revised to allow the City to recommend revocation, suspension or cancellation to the State. FINANCIAL IMPACT: The revisions are expected to save staff time by limiting the number of background checks and clarifying the administration of the various permits. ALTERNATIVES: 1. Motion and second as part of the consent agenda to adopt an ordinance amending Section 305 of the City Code relating to gambling and adoption of a resolution approving a summary of the ordinance for publication. 2. Motion and a second to remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative #1 ATTACHMENTS 1. Redline of revisions to Section 305 2. Ordinance 3. Summary Resolution Business Regulations City of Prior Lake 305/p1 SECTION 305 LAWFUL GAMBLING SUBSECTIONS: 305.100: PURPOSE 305.200: DEFINITIONS 305.300: GAMBLING PROHIBITED; EXEMPTIONS 305.400: PREMISES PERMIT 305.500: BACKGROUND CHECKS 305.600 CITY INVESTIGATION FEE 305.700: CRITERIA FOR PREMISES PERMITS 305.800: PENALTIES 305.900: ENFORCEMENT RESPONSIBILITY 305.1000: SEVERABILITY 305.100: PURPOSE: Minnesota Statutes Chapter 349 provides for and regulates the conduct of lawful gambling. Pursuant to its provisions the City may altogether prohibit lawful gambling within the boundaries of its jurisdiction or the City may provide for more stringent local regulations pertaining to lawful gambling. The City recognizes that the proceeds organizations derive from their lawful gambling activities can provide a benefit to the City and its residents. The City also recognizes that excessive expenditure of personal resources on lawful gambling can have a deleterious effect on individuals and families. It is the purpose of this Section to regulate lawful gambling activities within the City. Minnesota Statutes Chapter 349 is incorporated by reference and its provisions are intended to supplement the regulations contained in this Section 307. 305.200: DEFINITIONS: As used in this Section, tThe definitionsterms defined in Minn.esota Stat. Sec.Chapter 349.12 are incorporated in this Section by reference. unless otherwise provided for herein. As used in this Section, the definition of “organization” varies from the statutory definition. Board shall mean the Minnesota Gambling Control Board. Civic Celebration means an event which celebrates a recognized national holiday or an occasion celebrating an event proclaimed by the Prior Lake City Council. Lawful Gambling means the operation, conduct or sale of bingo, raffles, paddlewheels, tipboards and pulltabs. Organization means any fraternal, religious, veterans or other nonprofit group which has at least 25 active dues-paying members and either has been duly incorporated in Minnesota as a nonprofit organization for the most recent five (5) years or has been recognized by the Internal Revenue Service as exempt from income taxation for the most City of Prior Lake 305/p2 recent three (3) years, as defined in Minnesota Statutes Chapter 349. Organizational License (“license”) means a license for lawful gambling issued by the Board. Bingo Occasion means a single gathering or session at which a series of one or more successive bingo games are played. Premises Permit means a permit issued by the Board to an organization as defined in this Section, after approval of a resolution by the City Council. A premises permit shall designate the location of an organization’s lawful gambling activities. Class of License means a Class A, B, C or D license issued by the Board as authorized under Minnesota Statutes Chapter 349: • A Class A license authorizes all forms of lawful gambling. • A Class B license authorizes all forms of lawful gambling except bingo. • A Class C license authorizes bingo only. • A Class D license authorizes raffles only. Raffle means a game in which a participant buys a ticket for a chance at a prize with the winner determined by a random drawing to take place at a location and date printed on the ticket. Temporary Gambling Certificate means a certificate issued to an organization that is qualified to conduct lawful gambling without a premises permit and who receives an exemption identification number from the Board. 305.300: LAWFUL GAMBLING: There shall be no gambling in the City except as authorized pursuant to the provisions of Minn. Stat. Chap. 349, the rules adopted pursuant to said Chapter, this Section of the City Code and all applicable federal laws and regulations. No person may conduct gambling within the City, without first either: (i) securing a gambling license and a premises permit from the Minnesota Gambling Control Board (“Board”), with a resolution from the City Council approving the premises permit; or (ii) securing an exempt or excluded permit from the Board with approval from the City Clerk. 305.300: GAMBLING PROHIBITED; EXEMPTION: No person except an organization which has a premises permit from the Board pursuant to Minnesota Statutes Chapter 349 or an organization that falls within one of the exemptions set forth herein shall conduct lawful gambling within the City. The following activites are exempt from the lawful gambling requirements: (1) Lawful Gambling. Lawful gambling may be conducted without a premises permit if the organization conducts gambling on five (5) or fewer days in a calendar year, does not award more than $50,000.00 in prizes in a calendar year and receives an exemption identification number from the Board. City of Prior Lake 305/p3 The organization must notify the City thirty (30) days before the lawful gambling occasion. Upon notification to the City and payment of the fee set forth in the City fee schedule, the City shall provide the exempt organization with a notification acknowledgement in the form of a temporary gambling certificate. The temporary gambling certificate shall be issued by the City Manager or an individual designated by the City Manager. (2) Bingo. Bingo may be conducted without a premises permit if it is in connection with a civic celebration and if it is not conducted for more than four (4) consecutive days in a calendar year. Bingo may be conducted without a premises permit if it is conducted by an organization which conducts four (4) or fewer bingo occasions in a calendar year. Bingo may be conducted without a premises permit within a nursing home, senior citizens housing project or by a senior citizen organization if the prizes for a single game do not exceed $10.00, total prizes awarded at a single bingo occasion do not exceed $200.00, no more than two (2) bingo occasions are held by the organization or at the facility each week, only members or residents are allowed to play in a bingo game, no compensation is paid to the persons who conduct bingo and a manager is appointed who must first register with the Board. (3) Raffles, Raffle may be conducted without a premises permit if it is conducted by an organization and if the value of all raffle prizes awarded in a calendar year does not exceed $750.00. Raffles may be conducted by a tax-exempt health or social service organization under the contract to the state or a political subdivision if the prizes awarded are real or personal property donated by an individual, firm or other organizations. City of Prior Lake 305/p4 305.400: PREMISES PERMITS: In order to obtain City Council approval of a premises permit, an organization shall file an application with the City Clerk. The application shall include all of the following: (i) an executed, complete duplicate of the application filed with the Board, including all exhibits and accompanying documents; (ii) any additional information requested by the City; and (iii) the application fee set forth in the City Fee Schedule. The application shall be filed with the City Clerk no later than 3 days after the application for the premises permit has been filed with the Board. A licensed organization shall not conduct lawful gambling at any location within the City unless it has first obtained from the Board a premises permit. Applications for premises permits shall be on forms prescribed by the Board. The application, at a minimum, shall contain the following: • The name and address of the applying organization and of the organization’s gambling manager and employees; • A description of the site for which the license and permit are sought, including its address and, where applicable, its placement within another premises or establishment; • If the site is leased, the name and address of the lessor and such information about the lease as the City may require, including all rents and other charges for the use of the site; and • Other information the City deems necessary to carry out the purposes of this Section; Payment of the fee for a premises permit resolution as set forth in the City Fee schedule. 305.401 Notice. The Board shall notify the City Council of a pending application for a premises permit. The applicant shall cooperate fully with the City officials in supplying all information provided for in this Section or as requested. The City Council shall then determine whether the organization meets all the criteria provided for in subsection 307.600 necessary to approve a premises permit. 305.401 Background Check: In order to protect the health, safety and welfare of the public, the Prior Lake Police Department is authorized to conduct a criminal history background investigation and/or driver’s license check on all persons who have applied for a premises permit. The results of the criminal history background investigation and/or driver’s license check may be cause for denial of the license at the sole discretion of the City. (Ord. Amd. 111-01, publ 1/1/11) 305.402 City Investigation Fee: Organizations applying for a premises permit shall pay an investigation fee of $100.00. This fee shall accompany the application and shall reimburse the City for its costs incident to investigation, inspection and enforcement related to the premises permit. 305.403 Organization Criteria: No premises permit shall be approved by the City unless the organization qualifies under Minn. Stat. Sec. 349.16, Subd. 2; the organization has at least 25 active dues-paying members; and the organization has either been duly incorporated in Minnesota as a nonprofit organization for the most recent five (5) years or has been recognized by the Internal Revenue Service as exempt from income taxation for the most recent three (3) years, 305.404 Premises Criteria: The City shall approve a premises permit only for the organization’s City of Prior Lake 305/p5 hall where it conducts its regular meetings, or for a licensed on-sale liquor, wine and/or beer establishment. No location within the City may have more than one premises permit approved. No premises permit shall be approved by the City unless the premises complies with the applicable zoning, building, fire and health codes of the City. 305.4025 Approval or Denial. Each pending application for a premises permit shall be approved or denied by a resolution of the City Council within sixty (60) days of receipt of a completed application. It is within the sole discretion of the City to determine whether an application is complete. 305.4036 Notification of Changes. An organization holding a premises permit must notify the City in writing within ten (10) days whenever any material change is made in the information provided with the application.above information. Said information shall be forwarded to the Police Chief. 305.500 BACKGROUND CHECK: In order to protect the health, safety and welfare of the public, the Prior Lake Police Department is authorized to conduct a criminal history background investigation and/or driver’s license check on all persons who have applied for, or who will sell, hawk, vend, peddle or solicit under a license issued herein. The results of the criminal history background investigation and/or driver’s license check may be cause for denial of the license at the sole discretion of the City. (Ord. Amd. 111-01, publ 1/1/11) 305.600: CITY INVESTIGATION FEE: Organizations applying for or renewing a premises permit shall pay an investigation fee of $100.00. This fee shall accompany the application, and it shall reimburse the City for its cost incident to conducting a background investigation of the organization, its employees and the location from which the organization intends to operate. The Police and Inspections Departments shall investigate each applicant and report their findings and recommendations to the City Council through the City Manager. 305.700: CRITERIA FOR PREMISES PERMITS: All organizations applying for a premises permit must meet the criteria set forth herein relating to location of lawful gambling activities. Lawful gambling in the City may be conducted only in the licensed organization’s hall where it conducts its regular meetings, or in a licensed on-sale liquor, wine and beer establishment.. No location within the City may have more than one premises permit approved. Exemption: Class D (raffle only) premises permits when required are exempt from the location restrictions prescribed in this subsection. 305.500: EXEMPT OR EXCLUDED PERMIT: In order to obtain City Clerk approval of an exempt or excluded permit, an organization shall file an application with the City Clerk. The application shall include all of the following: (i) an executed, complete duplicate of the application filed with the Board, including all exhibits and accompanying documents; (ii) any additional information requested by the City; and (iii) the application fee set forth in City of Prior Lake 305/p6 the City Fee Schedule. The application shall be filed with the City Clerk no later than 3 days after the application for the exempt or excluded permit has been filed with the Board. 305.501 Approval or Denial. Each pending application for an exempt or excluded permit shall be approved or denied by the City Clerk within fifteen (15) days of receipt of a completed application. It is within the sole discretion of the City to determine whether an application is complete. 305.502 Notification of Changes. An organization holding an exempt or excluded permit must notify the City in writing within ten (10) days whenever any material change is made in the information provided with the application. Said information shall be forwarded to the Police Chief. 305.600: INSPECTION: All gambling within the City occurring subject to a premises, exempt or excluded permit shall be open to the inspection of the City and the County sheriff’s department. The City or County sheriff’s department may inspect, at any reasonable time without notice or a search warrant, the premises and/or all records of a licensed organization required to be maintained by the Board. 305.7800: PENALTIES: It shall be a misdemeanor to carry on any unlawful gambling activitiyactivity in violation of this Section. with a valid premises permit. Each day shall constitute a new violation. Nothing in this Ssubsection shall preclude the City from enforcing this Sectionordinance by means of any appropriate legal action. Additionally, a violation of this Section shall be reported to the Board and a recommendation shall be made for suspension, revocation or cancellation of an organization's license or permit. 305.9800: ENFORCEMENT RESPONSIBILITY: Nothing in this Sectionordinance shall be construed to require the City to undertake any responsibility for enforcing compliance with Minnesota Statutes Chapter 349 other than those provisions related to the issuance of premises permits as required by Minn. Stat. § 349.213, as may be amended from time to time. 305.10900: SEVERABILITY: If any subsection, paragraph or clause contained in this Sectionordinance is found to be invalid for any reason whatsoever by a court of competent jurisdiction, the validity of the remainder shall not be affected. (This Space Intentionally Blank For Future Amendments) 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. _________ AN ORDINANCE AMENDING SECTION 305 OF THE PRIOR LAKE CITY CODE RELATING TO GAMBLING AND ADOPTING BY REFERENCE CITY CODE SECTION 104; WHICH, AMONG OTHER THINGS, CONTAINS PENALTY PROVISIONS. THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, ORDAINS: Section 1. City Code Section 305 is deleted in its entirety and replaced with the following: 305.100: PURPOSE: Minnesota Statutes Chapter 349 provides for and regulates the conduct of lawful gambling. Pursuant to its provisions the City may altogether prohibit lawful gambling within the boundaries of its jurisdiction or the City may provide for more stringent local regulations pertaining to lawful gambling. The City recognizes that the proceeds organizations derive from their lawful gambling activities can provide a benefit to the City and its residents. The City also recognizes that excessive expenditure of personal resources on lawful gambling can have a deleterious effect on individuals and families. It is the purpose of this Section to regulate lawful gambling activities within the City. Minnesota Statutes Chapter 349 is incorporated by reference and its provisions are intended to supplement the regulations contained in this Section. 305.200: DEFINITIONS: The definitions in Minn. Stat. Sec. 349.12 are incorporated in this Section by reference. 305.300: LAWFUL GAMBLING: There shall be no gambling in the City except as authorized pursuant to the provisions of Minn. Stat. Chap. 349, the rules adopted pursuant to said Chapter, this Section of the City Code and all applicable federal laws and regulations. No person may conduct gambling within the City, without first either: (i) securing a gambling license and a premises permit from the Minnesota Gambling Control Board (“Board”), with a resolution from the City Council approving the premises permit; or (ii) securing an exempt or excluded permit from the Board with approval from the City Clerk. 305.400: PREMISES PERMITS: In order to obtain City Council approval of a premises permit, an organization shall file an application with the City Clerk. The application shall include all of the following: (i) an executed, complete duplicate of the application filed with the Board, including all exhibits and accompanying documents; (ii) any additional information requested by the City; and (iii) the application fee set forth in the City Fee Schedule. The application shall be filed with the City Clerk no later than 3 days after the application for the premises permit has been filed with the Board. 305.401 Background Check: In order to protect the health, safety and welfare of the public, the Prior Lake Police Department is authorized to conduct a criminal history background investigation and/or driver’s license check on all persons who have applied for a premises permit. The results of the criminal history background Page 2 of 3 investigation and/or driver’s license check may be cause for denial of the license at the sole discretion of the City. (Ord. Amd. 111-01, publ 1/1/11) 305.402 City Investigation Fee: Organizations applying for a premises permit shall pay an investigation fee of $100.00. This fee shall accompany the application and shall reimburse the City for its costs incident to investigation, inspection and enforcement related to the premises permit. 305.403 Organization Criteria: No premises permit shall be approved by the City unless the organization qualifies under Minn. Stat. Sec. 349.16, Subd. 2; the organization has at least 25 active dues-paying members; and the organization has either been duly incorporated in Minnesota as a nonprofit organization for the most recent five (5) years or has been recognized by the Internal Revenue Service as exempt from income taxation for the most recent three (3) years, 305.404 Premises Criteria: The City shall approve a premises permit only for the organization’s hall where it conducts its regular meetings, or for a licensed on-sale liquor, wine and/or beer establishment. No location within the City may have more than one premises permit approved. No premises permit shall be approved by the City unless the premises complies with the applicable zoning, building, fire and health codes of the City. 305.405 Approval or Denial. Each pending application for a premises permit shall be approved or denied by a resolution of the City Council within sixty (60) days of receipt of a completed application. It is within the sole discretion of the City to determine whether an application is complete. 305.406 Notification of Changes. An organization holding a premises permit must notify the City in writing within ten (10) days whenever any material change is made in the information provided with the application.. Said information shall be forwarded to the Police Chief. 305.500: EXEMPT OR EXCLUDED PERMIT: In order to obtain City Clerk approval of an exempt or excluded permit, an organization shall file an application with the City Clerk. The application shall include all of the following: (i) an executed, complete duplicate of the application filed with the Board, including all exhibits and accompanying documents; (ii) any additional information requested by the City; and (iii) the application fee set forth in the City Fee Schedule. The application shall be filed with the City Clerk no later than 3 days after the application for the exempt or excluded permit has been filed with the Board. 305.501 Approval or Denial. Each pending application for an exempt or excluded permit shall be approved or denied by the City Clerk within fifteen (15) days of receipt of a completed application. It is within the sole discretion of the City to determine whether an application is complete. 305.502 Notification of Changes. An organization holding an exempt or excluded permit must notify the City in writing within ten (10) days whenever any material change is made in the information provided with the application. Said information shall be forwarded to the Police Chief. Page 3 of 3 305.600: INSPECTION: All gambling within the City occurring subject to a premises, exempt or excluded permit shall be open to the inspection of the City and the County sheriff’s department. The City or County sheriff’s department may inspect, at any reasonable time without notice or a search warrant, the premises and/or all records of a licensed organization required to be maintained by the Board. 305.700: PENALTIES: It shall be a misdemeanor to carry on any gambling activity in violation of this Section. Each day shall constitute a new violation. Nothing in this Section shall preclude the City from enforcing this Section by means of any appropriate legal action. Additionally, a violation of this Section shall be reported to the Board and a recommendation shall be made for suspension, revocation or cancellation of an organization's license or permit. 305.800: ENFORCEMENT RESPONSIBILITY: Nothing in this Section shall be construed to require the City to undertake any responsibility for enforcing compliance with Minnesota Statutes Chapter 349 other than those provisions related to the issuance of premises permits as required by Minn. Stat. § 349.213, as may be amended from time to time. 305.900: SEVERABILITY: If any subsection, paragraph or clause contained in this Section is found to be invalid for any reason whatsoever by a court of competent jurisdiction, the validity of the remainder shall not be affected. Section 2. City Code Section 104 entitled “General Penalty” is adopted in its entirety, by reference, as though repeated verbatim herein. Section 3. This ordinance shall become effective upon its passage and publication. Passed by the City Council of the City of Prior Lake this ______ day of ___________, 2019. ATTEST: _________________________ __________________________ Michael Plante, City Manager Kirt Briggs, Mayor Published in the Prior Lake American on the _____ day of ___________, 2019. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 19-____ A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE NO. _____ AND ORDERING THE PUBLICATION OF SAID SUMMARY Motion By: Second By: WHEREAS, On __________, 2019 the City Council adopted Ordinance No. ____ amending Section 305 relating to Gambling; and WHEREAS, Minnesota Statutes requires publication of an ordinance in the official newspaper before it becomes effective; and WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the Council finds that the summary is an accurate representation of the ordinance; and WHEREAS, The City Council desires to publish a summary of the amendments to Section 305 of the Prior Lake City Code and has determined the publication of a summary of this ordinance will meet the intent of the statute. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. Ordinance No. _____________ is lengthy. 3. The text of summary of Ordinance No. __________________, attached hereto as Exhibit A, conforms to M.S. § 331A.01, Subd. 10, and is approved, and publication of the title and summary of the Ordinance will clearly inform the public of the intent and effect of the Ordinance. 4. The title and summary shall be published once in the Prior Lake American in a body type no smaller than brevier or eight-point type. 5. A complete text of the newly amended City Code will be available for inspection at City Hall or in the Document Center on the City of Prior Lake Website after ______________. PASSED AND ADOPTED THIS 3rd DAY OF JUNE 2019 VOTE Briggs Thompson Burkart Braid Erickson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ _____________________________ Michael Plante, City Manager 2 Exhibit A SUMMARY ORDINANCE NO. __________ CITY OF PRIOR LAKE ORDINANCE NO. _________ AN ORDINANCE AMENDING SECTION 305 OF THE PRIOR LAKE CITY CODE RELATING TO GAMBLING AND ADOPTING BY REFERENCE CITY CODE SECTION 104; WHICH, AMONG OTHER THINGS, CONTAINS PENALTY PROVISIONS. The following is only a summary of Ordinance No. ____________. The full text will be available for public inspection after ______________ by any person during regular office hours at City Hall or in the Document Center on the City of Prior Lake Website. SUMMARY: The Ordinance amends Section 305 relating to the Gambling. This ordinance shall become effective from and after its passage and publication. Passed by the City Council of the City of Prior Lake this 3rd day of June 2019. ATTEST: _________________________ __________________________ Michael Plante, City Manager Kirt Briggs, Mayor Summary published in the Prior Lake American on the _____ day of ___________, 2019.