HomeMy WebLinkAbout9B - Ordinance 99-03 Lawful Gambling
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
MARCH 1, 1999
9B
BILL O'ROURKE, CHIEF OF POLICE
AGENDA ITEM:
CONSIDER APPROVAL OF ORDINANCE 99-XX AMENDING
TITLE 3, CHAPTER 8 OF THE PRIOR LAKE CITY CODE,
REGULATING LAWFUL GAMBLING.
DISCUSSION:
History
Title 3, Chapter 8, of the Prior Lake Code of Ordinances regulating Lawnl!
Gambling \vas last updated in 1988, and is being reviewed and revised as part
of a systematic review of all Prior Lake ordinances.
Current circumstances
The review of the Lawful Gambling ordinance has included 1\vo key
components. The first of these was a public meeting for the purpose of
receiving feedback and input on possible changes to this section of the City
Code. Secondly, a City Council work session was held to receive council
direction from those who presently hold lawful gambling licenses.
The discussion in both of these meetings centered on the following areas:
- An investigative fee
- A local gambling tax
- Expenditures within the Trade Area
- A mandatory 10% contribution
- Restrictions on qualifying organizations
-The criteria and standards for premise pem1its
Minnesota Statute, Chapter 349, provides for and regulates the conduct of
laWnll gambling. It is incorporated by reference into the proposed ordinance
and, because its provisions allow the City to provide for more stringent local
regulations, are intended to supplement the regulations contained in the City
Code.
One area in which this proposed ordinance varies from Statute is the
definition of an 'organization'. By Statute, organization licenses may be
granted for organizations that have been in existence for the most recent three
years and have at least 15 active members. We are reconm1ending that in
order to qualify a nonprofit organization must have been in existence for the
1620~1A~.I~E~iPfr8R!aRe, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
!\N EQUAL OPPORTUNITY EMPLOYER
AL TERNA TIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
most recent 5 years and have 25 active members. This change does not affect
any existing licensees.
We are also reconunending that no more than one premises pemlit can be
approved at anyone location within the City. An organization may, however,
hold lawful gambling licenses in more than one location.
Conclusion
The new ordinance is responsive to changes in State Statute. It also reflects
the Council's desires based upon workshop input. Finally, licensees have hild
an opportunity to provide their input regarding the ordinance changes.
1. Adopt Ordinance 99-XX, amending Title 3, Chapter 8 of the Prior Lake
City Code regulating Lawful Gambling.
2. Table this item for a specific reason.
Motion and second to ap ove Ordinance 99-XX, amending Title 3, Chapter 8
of the Prior Lake City de.
F:\ADMIN\AGRPTFM.DOCKirsten aden
ORDINANCE NO. 99~XX
CITY OF PRIOR LAKE
SCOTT COUNTY, MINNESOTA
AN ORDINANCE AMENDING TITLE 3, SECTION 8
OF THE PRIOR LAKE CITY CODE
CONCERNING LAWFUL GAMBLING
THE CITY COUNCIL OF THE CITY OF PRIOR LAKE ORDAINS:
SECTION 1. The Prior Lake City Code, Title 3, Section 8, is amended in its
entirety to read:
LAWFUL GAMBLING
3-8-1. purpose. Minnesota Statute Chapter 349 provides for and regulates the conduct
of lawful gambling. Pursuant to its prov.isions the City may altogether prohibit lawful
gambling within the bOlmdaries 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 Statute Chapter 349 is incorporated by reference and its provisions are
intended to supplement the regulations contained in this Section 8.
3-8-2. Definitions. As used in this section, the terms defined in Minnesota Chapter
349.12 are incorporated by reference unless othenvise provided for herein. As used in this
Section, the defInition of "organization" varies from the statutory definition.
A. Board. "Board" means the Minnesota Gambling Control Board.
B. Civil Celebration. "Civic Celebration" means an event which celebrates a
recogn.ized national holiday or an occasion celebrating an event proclaimed
by the Prior Lake City Counci 1.
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C. Lawful Gambling. "Lawful Gambling" means the operation, conduct or sale
of bingo, raffles, paddlewheels, tipboards and pulltabs.
D. Organization. "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 recent three
(3) years, as defmed in Minnesota Statutes Chapter 349.
E. Or~anizational License. "Organizational license" ("license") means a license
for lawful gambling issued by the Board.
F. Bingo Occasion. "Bingo occasion" means a single gathering or session at
which a series of one or more successive bingo games are played.
G. Premises Pennit. "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 pemlit shall designate the location of an
organization's lawful gambling activities.
H. Class of License. "Class of License" means a Class A, B, C or D license
issued by the Board as authorized under Minnesota Statutes Chapter 349.
1. A Class A license authorizes all forms of lawful gambling;
2. A Class B license authorizes all forms of lawful gambling except
bingo;
3. A Class C license authorizes bingo only; and
4. A Class D license authorizes raffles only.
1.
Raffle. "Raffle" means a game in which a participant buys a ticket for a
chance at a prize with the wirmer determined by a random drawing to take
place at a location and date printed on the ticket.
J.
Temporarv Gambling Certiticate. Temporary Gambling Certificate mean A
certificate issued to an organization that is qualified to conduct lawful
gambling without a premises pennit and who receives an exemption
identification number from the Board.
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3-8-3. Gambling Prohibited~ Exemotion.
A. Gambling Prohibited. 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 in
subsection (b), shall conduct lawful gambling within the City.
B. EXl::mution. The following activities are exempt from the lawful gambling
requirements:
1. Lawful gambling.
(a) 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.
(b) 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.
(c) The temporary gambling certificate shall be issued by the City
Manager or an individual designated by the City Manager.
2. Bingo.
(a)
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.
(b)
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.
(c)
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
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$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.
(a) 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.
(b) Raffles may be conducted by a tax-exempt health or social service
organization under 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.
3-8-4. .Premises Permit.
A. Premises Permit. A licensed organization shall not conduct lawful gambling
at any location within the City unless it has 'first obtained from the Board
a premises pennit. Applications for premises permits shall be on forms
prescribed by the Board. The application, at a minimum, shall contain the
following:
1.
The name and address of the applying organization and of the
organization's gambling manager and employees;
2.
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;
3.
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
4.
Other information the City deems necessary to carry out the purposes
of this Section.
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5. Payment of the fee for a premises permit resolution as setforth in the
City Fee Schedule.
B. 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 Section 3-8-6 necessary to approve a
premises permit.
C. Aporoval or Denial. Each pending application for a premises pennit 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.
D. 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 above information. Said information shall be
forwarded to the Police Chief.
3-8-5. City Investigation Fee.
A. Organizations applying for or renewing a premises permits 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.
B. The Police and Inspections Departrnents shall investigate each applicant and
report their findings and recommendations to the City Council through the
City Manager.
3-8-6. Criteria for Premises Pennits.
A.
Location. 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 at the following
locations:
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1. In the licensed organization's hall where it conducts its regular
meetings; or
2. In a licensed on-sale liquor, wine and beer establishments.
B. Other Criteria.
1. No location within the City may have more than one premises permit
approved.
C. Exemutions. Class D (raffle only) premises permits when required are
exempt from the location restrictions prescribed in this Section.
3-8-7. Penalties. It shall be a misdemeanor to carry on any unlawful gambling activity
with a valid premises permit. Each day shall constitute a new violation. Nothing in this
Section shall preclude the City from enforcing this ordinance by means of any appropriate
legal action.
3-8-8. Enforcement Responsibilitv. Nothing in this ordinance 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.
3-8-9. Severability. If any section, paragraph or clause contained in this ordinance 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 ORDINANCE SHALL BE EFFECTIVE FOLLOWING PASSAGE AND
PUBLICA nON.
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ADOPTED this
City of Prior Lake.
day of
, 1999, by the City Council of the
CITY OF PRIOR LAKE
By:
WesleyM. Mader, Mayor
ATTEST:
Frank Boyles, City Manager
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