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HomeMy WebLinkAbout88-04 CITY OF PRIOR LAKE ORDINANCE NO. 88-04 AN ORDINANCE AMENDING PRIOR LAKE CITY CODE TITLE 3, CHAPTER 8 The Council of the City of Prior Lake does hereby ordain: Title 3, Chapter 8 of Prior Lake City Code is hereby amended effective August 1, 1988, to read as follows: 3-8-1: DEFINITIONS: For the purpose of this Chapter, the terms defined in this section shall have the following meanings: LAWFUL GAMBLING: The operation, conduct or sale of bingo, raffles, paddlewheels, tipboards and pull-tabs. Lawful gambling does not include betting related to the outcome of an athletic event. GAMBLING EQUIPMENT: Bingo cards and devices for selecting bingo numbers, pull-tabs, jar tickets, paddlewheels and tipboards. BINGO: A game where each player has a card or board for which a consideration has been paid containing five horizontal rows of spaces, with each row except the central one containing five figures. The central row has four figures with the word "Free" marked in the center space thereof. Bingo also includes games which are as described herein except for the use of cards where the figures are not preprinted but are filled in by the players. A player wins a game of bingo by completing a preannounced combination of spaces or, in the absence of a pre announcement of a combination of spaces, any combination of five spaces in a row, either vertical, horizontal or diagonal. A single gathering or session at which a series of one or more successive bingo games is played. BINGO OCCASION: PADDLEWHEEL: A wheel marked off into sections containing one or more numbers, and which, after being turned or spun, uses a pointer or marker to indicate winning chances. TIPBOARD: A board, placard or other device marked off in a grid or columns, in which each section contains a hidden number or numbers, or other symbol, which determines the winning chances. RAFFLE: A game in which a participant buys a ticket for a chance at a prize, the winner determined by a random drawing from a container holding numbers corresponding to all chances sold and which takes place at a location and date printed upon the ticket. PULL-TAB: A single folded or banded ticket or a card with a face covered to conceal one or more numbers or symbols, where one or more of each set of tickets or cards has been designated in advance as a winner. Pull-tab also includes a ticket sold in a gambling device known as a ticket jar. ORGANIZATION: Any fraternal, religious, veterans or other nonprofit organization which has been in existence for at least three (3) years and has at least fifteen (15) active members. PROFIT: The gross receipts collected from lawful gambling, less reasonable sums necessarily and actually expended for prizes. LAWFUL PURPOSE: Lawful purpose means one or more of the following: (A) Benefiting persons by enhancing their opportunity for religious or educational advancement, by relieving or protecting them from disease, suffering or distress, or contributing to their physical well-being, by assisting them in establishing themselves in life as worthy and useful citizens, or by increasing their comprehension of and devotion to the principles upon which this nation was founded; (B) Initiating, performing or fostering worthy public works, or enabling of furthering the erection or maintenance of public structures; (C) Lessening the burdens borne by government or voluntarily supporting, augmenting or supplementing services which government would normally render to the people; or -2- (D) PaYment of taxes imposed by the state of Minnesota or the united states on receipts from lawful gambling. Lawful purpose does not include the erection, acquisition, improvement, expansion, repair or maintenance of real property owned or leased by the organization, unless the Charitable Gambling Control Board or City Council specifically authorizes the expenditures after finding that the property will be used exclusively for one or more of the purposes specified in clauses (A) to (C) of this Section. 3-8-2: LICENSING: No person except an organization licensed by the State Charitable Gambling Control Board pursuant to Minnesota Statutes Chapter 349 or an organization permitted under this Chapter shall conduct lawful gambling within the City of Prior Lake, Minnesota. 3-8-3: STATE GAMBLING LICENSES: Applicants for State-issued gambling licenses shall file applications with the State Charitable Gambling Control Board. The Board shall report to the City Council in sufficient time so that the Council may consider the approval or disapproval thereof within the sixty (60) day period provided by Minnesota Statutes, Chapter 349. Applicants shall provide the Board with all information requested, and failure to do so may be cause for the Council's disapproval of its application. Licenses shall be approved only if the applicant is a fraternal, religious, veterans or other nonprofit organization, which has been in existence for at least three (3) years, has at least fifteen (15) active members and has its principal location or office within the City of Prior Lake. 3-8-4: CITY GAMBLING PERMITS: Lawful gambling by organizations not required to obtain a State license pursuant to Minnesota Statutes, Chapter 349, may be conducted in the City of Prior Lake if an organization has been issued a permit pursuant to this Chapter. Application for a permit shall be made upon a form supplied by the City, together with such additional information as may be required by the City. The Prior Lake City Council shall act on a permit application within one hundred eighty (180) days from the date of application. A fee, determined by the City council, shall be paid by the organization requesting the permit at the time of application therefor. City gambling permits shall be issued only to fraternal, religious, veterans or other nonprofit organizations, which organization shall have been in existence for at least three (3) years and have at least fifteen (15) active members and whose principal location or office is within the City of Prior Lake. -3- 3-8-5: LAWFUL PURPOSES: Profits from lawful gambling may be expended solely for "lawful purposes" or expenses as authorized at a regular meeting of the conducting organization; provided, however, that no more than fifty-five percent (55%) of profits from bingo, and no more than forty-five percent (45%) for other forms of lawful gambling may be expended for necessary expenses related to lawful gambling. 3-8-6: INVESTIGATION FEES: Any organization applying for or renewing a license to conduct lawful gambling shall pay an investigation fee to the City at the time of its application in accordance with Minnesota Statutes Section 349.16, Subd. 4, currently in the amount of one hundred dollars ($100.00), or such additional sums as may be authorized by said statute. 3-8-7: EXEMPTION: (A) Bingo may be conducted without a license if it is conducted in connection with a County fair or a civic celebration if it is not conducted for more than twelve (12) consecutive days in a calendar year, or if it is conducted by an organization which conducts four (4) or fewer bingo occasions in a calendar year. (B) Certain other organizations exempt from the State licensing requirement pursuant to Minnesota Statutes, Section 349.214, shall also be exempt from the City of Prior Lake licensing requirements in conducting bingo and raffles. 3-8-8: SIGNS: No organization may post on the premises where it conducts lawful gambling any sign which states directly or indirectly that all of the receipts from the lawful gambling it conducts are used for charitable purposes. 3-8-9: GAMBLING MANAGER: A single gambling manager designated by the organization shall supervise all lawful gambling conducted by the organization. The gambling manager shall be a person who has paid all dues to an organization and has been a member of the organization for at least two (2) years and has been designated by the organization to supervise lawful gambling conducted by it. The gambling manager shall be responsible for gross receipts from the occasion and for its conduct in compliance with all laws and rules. The gambling manager shall give a fidelity bond in the sum of ten thousand dollars ($10,000) in favor of the organization conditioned on the faithful performance of his duties. Notice shall be given to the Charitable Gambling Control Board and City Council not less than thirty (30) days prior to a cancellation of said fidelity bond. The same person may act as both gambling manager and bingo manager by the same organization, however, the gambling manager for a single organization shall not act as either a gambling manager or bingo manager for any other organization. The gambling manager shall be an active member of the organization. No compensation shall be paid in -4- connection with the operation of a gambling device or the conduct of a raffle by a licensed organization, except as provided by Minnesota statutes as may be amended from time to time. No person who is not an active member of an organization, or its auxiliary, or the spouse or surviving spouse of an active member may participate in the organization's operation of a gambling device or conduct of a raffle except the licensed organization may utilize nonmember, nonprofit organizations in raffle ticket sales. 3-8-10: RECORDS: Each organization licensed to operate gambling devices shall keep records of each occasion on which it conducts gambling, including each bingo occasion and each day on which other forms of lawful gambling are conducted. The records must include gross receipts, quantities of free plays, if any, expenses and profits. All deductions from gross receipts for each occasion shall be documented with receipts or other records indicating the amount, description of the purchased item, service or other reason of the deduction, and the recipient. A distribution of profits shall be itemized as to pay, purpose, amount and date of paYment. In the case of bingo, gross receipts must be compared to the checkers' records for the occasion by a person who did not sell cards for the occasion. Gross receipts from lawful gambling shall be segregated from all other revenues of the conducting organization, including bingo receipts, and placed in a separate account. Each organization shall have separate records of its gambling operation's purses. The person who accounts for gambling gross receipts, expenses and prOfits shall not be the same person who accounts for other revenues of the organization. A licensed organization shall report monthly, or quarterly in the case of a licensed organization which does not report more than one thousand dollars ($1,000) in gross receipts from lawful gambling in any calendar quarter, to the Charitable Gambling Control Board and its membership, and shall file with the City a record of its gross receipts, expenses, profits and expenditure of profits from lawful gambling. If the organization conducts both bingo and other forms of lawful gambling, figures for both must be reported separately. In addition, a licensed organization must report to the Charitable Gambling Control Board and file with the City monthly a record of its purchases of gambling equipment. Records required by this section shall be preserved for a least two (2) years, and an organization shall make available its records for inspection at reasonable times and places without notice or search warrant. 3-8-11: LOCATIONS: An organization may conduct lawful gambling only on premises it owns or leases, except (A) a licensed organization may conduct raffles on a premise it does not own or lease; (B) a licensed organization may, with the permission of the City, conduct bingo on premises it does not own or lease for up to six (6) days in a calendar year in connection with a civil celebration; and (C) a licensed organization may conduct lawful gambling on premises other than the organization's licensed premises for one (1) day per year for not more than twelve (12) hours that day. A lease for that time period for the exempted premises must accompany the request to the Charitable Gambling Control Board and -5- the city. Leases shall be for a period of not less than one (I) year and shall be in writing. The lease shall not provide for rental paYments based on a percentage of receipts or profits from lawful gambling. Copies of all leases shall be provided to the city Council. 3-8-12: PRIZES: Total prizes awarded for bingo shall not exceed the maximum amounts permitted by Minnesota Statutes, section 349.211, or any amendments thereto. The maximum prize which may be awarded for any single pull-tab is two hundred fifty dollars ($250). Total prizes awarded for all other forms of gambling shall not exceed the maximum amount permitted by Minnesota statutes, or any amendments thereto. Merchandise prizes shall be valued at fair market value. "Prizes" do not include free plays awarded. 3-8-13: AGE RESTRICTION: No person under the age of eighteen (18) may conduct or participate in playing the games of pull-tabs, tipboards or paddlewheels. 3-8-14: COMPLIANCE WITH STATE LAW: Except as otherwise set forth herein, the provisions of Minnesota Statute Chapter 349 relating to the licensing and restrictions on gambling are adopted and made a part of this Chapter as if set out in full. Organizations shall, in the conduct of gambling permitted by the City Council, comply with the provisions of all laws and ordinances including Minnesota statute Chapter 349 and this Chapter. 3-8-15: ENFORCEMENT: (A) In enforcing the prov~s~ons of this Chapter, the City Manager, Assistant City Manager, City Planner and Assistant City Planner shall have the power to issue citations for violation of this Chapter in lieu of arrest or continued detention. (B) In addition, any violation of this Chapter may be enjoined by the City Council through proper legal channels. 3-8-16: PENALTY: Violation of any provision of this Chapter is a gross misdemeanor and any person violating any prov~s~ons of this Chapter shall be guilty of a gross misdemeanor and upon conviction shall be punished by a fine of not more than three thousand dollars ($3,000) and/or imprisonment in the county jail for not more than one (1) year, plus the costs of prosecution in either case. This Section shall not preclude any civil or criminal action under other applicable law, or preclude any agency of government from investigating or prosecuting violations or provisions of this Chapter. Nothing in this Chapter shall be construed to authorize any use, possession or operation of any gambling device which is activated by the insertion of a coin or token. -6- the Council this 1 st day of August , 1988. City ~~ May r PUblished in the Prior Lake American on the 15th day of August 1988. Drafted by: Lommen, Nelson, Cole & Stageberg, P.A. 1100 TCF Tower Minneapolis, Minnesota 55402 -7-