HomeMy WebLinkAbout1D, Proposed Municipal Code Amendments to Section 330.02 Gambling j �—AIzEN HILLS
Request for Council Action 1D
Prepared By: Amy Dietl,Deputy Clerk Work Session Date: January 22, 2013
Proposed Municipal Code Amendments to Section 330.02 Gambling
Budgeted Amount: Actual Amount: Funding Source:
n/a n/a n/a
Discussion Topic:
Discussion regarding proposed amendments to Section 330.02 Gambling of the City of Arden
Hill's Municipal Code.
Supporting Documents:
1. Memorandum from Amy Died dated January 22, 2013.
2. Attachment A: Redlined copy of Section 330.02 Gambling of Municipal Code.
3. Attachment B: Example of a"Schedule C—Lawful Purpose Expenditure"Form.
4. Attachment C: Organizations Currently Operating Charitable Gambling in the City.
lt
EN HILLS
MEMORANDUM
DATE: January 22,2013
TO: Honorable Mayor and City Councilmembers
Patrick Klaers, City Administrator
FROM: Amy Dietl,Deputy Clerk
SUBJECT: Proposed Municipal Code Amendments to Section 330.02 Gambling
Background /Discussion
A gambling and premise permit from the Spring Lake Park Lions was presented to the
City Council at its meeting on November 26, 2012, at which time the item was tabled for
further discussion.
On December 17, 2012, in a work session, the City Council discussed Section 330.02
(Gambling) of the City's Municipal Code. Since this section has not been reviewed since
2007, a good deal of time was spent comparing current language within the City's
Municipal Code to the language of gambling codes belonging to other cities.
The following recommendations were offered by the Council.
➢ Increase the expenditure percentage of an organization's lawful purpose
expenditures on lawful purposes conducted within the trade area. Currently, the
City requires 60% of an organization's net profit to be expended on lawful
purposes conducted within the trade area.
➢ Require the organization applying for a permit to be headquartered in the trade
area. Currently, the City does not restrict organizations based on where they are
located.
➢ Require the organization to have been located in the trade area for a year or two.
➢ Add definition of profits.
Staff has prepared a redlined copy of Section 330.02 Gambling which includes the
recommendations offered by the Council.
January 22, 2013 —City Council Work Session
Page 1 of 2
'.
EN HILLS
Also included is an example of a"Schedule C —Lawful Purpose Expenditures" form that
organizations submit to the City to show how and where their donations are being paid.
A summary of every organizations' Schedule C's are included in the last handout, which
also illustrates the location of each of the organizations currently participating in
charitable gambling in the City. All are located within the trade area, with the exception
of Merrick Inc. Language has been added to Subdivision 2 giving the Council the right
to approve premise permits for lawful gambling subject to the conditions the Council
deems necessary. City Attorney, Joel Jamnick, has reviewed the proposed language and
has given his approval.
January 22, 2013 —City Council Work Session
Page 2 of 2
IT-
EN HILLS
Attachment A :
Redlined Copy of Section 330.02
(Gambling) of Municipal Code
January 22, 2013 —City Council Meeting
City of Arden Hills
d
EN HILLS
330.02 Gambling.
Subd. 1 Definitions.
Gambling Equipment. As used in this section, those devices known as bingo cards,
bingo numbers,paddle wheels,tip boards, pull-tabs (or ticket jars) or apparatus used
in conducting bingo and other gambling games as those various devices are described
and defined in M.S. Ch. 349, as amended from time to time.
i
Net Profit. Mean gross revenues, less prizes paid, less allowable expenses, less
applicable taxes.
Trade Area. The corporate boundaries of the City and each City immediately
contiguous to the City.
Subd. 2 Lawful Gambling Permitted. The Cily of Arden Hills hereby reserves all
rights to regulate lawful ag mbling as regulated by Minnesota Statutes Chapter 349. It
may be amended from time to time including the he ri hg t to approve premise permits for
lawful gambling subject to the conditions the City Council deems necessary. Lawful
gambling is permitted in the City if the organization conducting such activities meets
the following criteria:
A. Is licensed by the Minnesota Gambling Control Board.
B Is a tax exempt organization pursuant to 501(c) of the Internal Revenue
Code or has a 501(c) application pending with the Internal Revenue
Service.
C No new premises permits will be issued unless the organization has an
address within the Trade Area.
D. Has been in existence at least two consecutive years prior to the date it
begins its ag mbling_operations.
E Complies with all of the provisions of this Chapter—Licenses and
Regulations 0330.02 Gambling).
f this S@6400 afe iffeeffsiswat with the pr-a*isiaas ef state law,
subdivisions fM.c rat, ono
Subd. 3 License or Permit Required. No person shall keep, operate, maintain or
permit to be operated or maintained upon premises within his or her direct or indirect
control any gambling equipment without having first procured a gambling license
from the state, and as approved by the City, or in the case of operations exempt from
licensing by state law, without a permit issued by the City.
Subd. 4 Permit Fee. As provided in Subsection 310.01,the fee for various types of
gambling device permits shall be established by Ordinance adopted by the Council.
I Subd. 5 Application. Applications for City approval or a permit shall be submitted
to the City Administrator at least sixty(60) days before the proposed effective date of
the permit. Criteria for the issuance of premises permits shall be adopted from time
to time by Council resolution.
Subd. 6 Approval of License or Issuance of Permit. No permit to operate a
gambling operation, or approval of a state license, shall be issued by the City
Administrator earlier than fifteen(15) days after the application has been submitted.
If requested by the City Administrator, however, the City's designated law
enforcement provider shall investigate any application and shall submit a
recommendation to the City Administrator prior to issuance or denial of the permit or
license approval.
Subd. 7 Investigation Fee. Applicants shall pay the City a non-refundable
investigation fee as from time to time set by Council resolution when submitting the
application for the permit or license authorization.
Subd. 8 Unauthorized Gambling Prohibited. No person shall conduct lawful
gambling within the City unless such activity is in compliance with the provisions of
the Minnesota Lawful Gambling Act and this section. If the provisions of the
Minnesota Lawful Gambling Act and this section are inconsistent,the more
restrictive provisions shall apply.
Subd. 9 Local Gambling Tax. The Council may, pursuant to state law, impose a
local gambling tax on all organizations licensed to conduct lawful gambling within
the City. The tax shall be set by the City Council but shall not exceed three (3%)
percent of the organization's gross receipts from all lawful gambling, less prizes
actually paid out by the organization. Proceeds of the tax shall only be used for the
purpose of regulating all gambling activities within the City, including but not limited
to the reimbursement of the City's administrative, legal and consulting costs.
(Revised: February 12, 2007)
Subd. 10 Financial Reports.
A. Any organization applying for a renewal permit shall provide the City
with certified copies of the following documents:
1. The prior year's income and loss statement which clearly indicates
the organization's gross receipts from lawful gambling activities within
the City and total prizes actually paid out for lawful gambling
activities within the City.
2. A statement of the organization's treasurer projecting the
organization's gross receipts and total prizes for lawful gambling
activities to be conducted in the City during the year in which the
permit renewal will be effective.
B. Any organization applying for a new permit, shall provide the City
with a certified statement containing the organization's projection of gross
receipts and total prizes for all lawful gambling activities to be conducted
in the City during the year in which the permit will be effective.
Subd. 11 Lawful Gambling Fund. All organizations permitted to conduct lawful
gambling within the City shall contribute ten(10%)percent of their net profits
derived from lawful gambling activities within the City to a special fund to be
administered by the City Council for reimbursement of police, fire and public safety
related services, equipment and training; and for Charitable Contributions, as defined
in Minn Statutes Section 349.12 Subd. 7.a. Payments to the fund shall be calculated
for quarterly periods ending on the last days of March, June, September, and
December of each year. Quarterly installment payments shall be submitted together
with verifiable supporting documentation, no later than the 20th day of the month
following the end of the quarterly period. (Revised: February 12, 2007)
Subd. 12 Trade Area Restriction. An organization authorized and permitted to
conduct lawful gambling within the City shall expend seventy-five 75%)percent
s4i4y-(WO%) per-sett of its net profit on lawful purposes conducted or located within
the trade area.
(Revised.• February 23, 2004)
Subd. 13 Location of Lawful Gambling Operations. No gambling operation shall
be maintained except on the premises listed in the license. The listed location shall
comply with all state regulations and City zoning regulations.
Subd. 14 Number of Licenses Authorized. No more than nine (9) lawful gambling
licenses or permits of all classes shall be issued and outstanding at the same time.
Subd. 15 Reports.
A. All authorized and permitted organizations shall submit to the City
Administrator a copy of any reports it is required to make or has made to
the board. Any applicant for a license or renewal of a license shall submit
a copy of its application to the City Administrator.
B. On or before February first of each year, organizations licensed or
permitted to conduct lawful gambling within the City shall submit a report
to the City Administrator indicating how the net profits derived from
lawful gambling activities conducted by the organization have been spent
for lawful purposes and such other reports as may be required from time to
time by Council resolution.
Subd. 16 Inspection of Premises and Records. The City Administrator, City
attorney, City law enforcement officers, City Official and/or City employee having a
duty to perform with reference to this section or lawful gambling activities may
inspect and examine the records concerning lawful gambling activities of any
organization upon twenty-four(24)hours' advance notice and may inspect the
premises upon which the organization is conducting lawful gambling activities at all
reasonable times without advance notice. It shall be a misdemeanor to falsify any
reports required to be submitted pursuant to this section.
Subd. 17 Age Limit. No person under the age of eighteen(18) shall be permitted to
engage in any lawful gambling activity including bingo and raffles. No permitted
organization shall allow any person under the age of eighteen(18)to engage in any
lawful gambling activity including bingo and raffles.
Attachment B :
Example of a "Schedule C —
Lawful Purpose Expenditure" Form
January 22, 2013 —City Council Meeting
City of Arden Hills
I
Eh HILLS
4" N O O O O
O O
O 0 O O t— a N N
on
a
.. o
H w
vNi 00 >' N
a
.-a F" F-
Q C7 Q
oc
Fr kn
cC —
O D\
N '
O
Ao a
Oo °
cts
� �
o 0 0 0
w 0 0 0 0
N W
� 0
a�
Q
x w
Old
g
0-� O o
CL A
� z a a ran Z U 0
IL Y y �n 'O N O
O a�i 00 00 00 O,
O N N N N E
o
c '^ W N N N N A
vA
N N N N 0
U
O O O
U
x O N N
Wu Q .-. .-.
0 z o
-0) w Y O
O x p A N N N N A
W N N N N N A
Z t o a 7
n
'•� V n °' O N c
to o ¢ °
I
Attachment C :
Organizations Currently Operating
Charitable Gambling in the City
January 22, 2013 —City Council Meeting
City of Arden Hills
EN HILLS
°o 0o E
m 00 00 CL
Ln u)
'a m Ln
2 C
x _0 c � u c
W
v O H
O V) u m — — o
GJ v oo to 'a ro m O
'a Q N 00 p O
L L L Lll l0 to QJ QJ Ql OA c-I
Q 3 -N rl O 00 C p� C C V O . 1
r} d `n Ov t/� ? 00 J � ^ 00 tom/? Ql (D
rn o
O O c � 4-O v o c c r� "t , c 0 ro
�+ J Q) LL QJ LL C � +' Z if',
+ (D tt 'O
Q >. X >, 7 C O c
p t CO 4, O '� .0 z X c p U J X 7
GJ U u U ~ C J Q! LL — O O r0 LL LL- O OD LL
�+ �QJ Ln ° U o LD o v'i V) o o ~ o
3 000 0 0 0 oioL, No o � o Q o 0 0 0
N Q = QJ QJ ^ Ln = LL O O O N QJ N = p O 4J w .QJ QJ
QQJJ i! L1 v rD QJ C C C N v L1 � v C t/� C ,� v v
N 0 -000 O O +' -O O O O - 0 0 'O O O o
(C Q chi) Ln FO- Q U v t p c7i) N C Q � p - O 4, V) V)
S } ry F- ` `- H {- F- O O O
�- w 4
O O O O V O Y o o O 41 LI) F- O O
d1 QJ O +> (o o Y Y L @@ +� Y C ro O _
F- V V U LL G U Q J J Q V V G V J N i/? U V
L
t 4
V O o
c 4a c
to O N
+, 41 m 00
U V
� J L > m
O QQJ 3
O
Q)
V
A
C
O
L
L
V
N
O
++ C C
N O O
� N Q l0
U
!aA r0 m oN
L �o Q a
O v >-
0
ci
o
U 2
N o
Q
Q u I
CJ
N
F-
O r0 Y .bn OA
J J m d
O
O
O 0 O
0 00
v0 ° o
E N yNj} N
4!
O V E E
H
q C4
O v ~ v ~ m
O u U v u
_ -C Y U Y t/}
O U O U N N m
L O = O Ul +
Q . LL } t +�-� L N 00
N — 3 +-� }, lD Lrl U N O
0 n3 7 0 7 Ln rj 0) d1 00
L
O
L
V N -1 'a C y!? C m 00
.�
c (D ca o Q)
N
GJ LL C oC C V) C rU LL G Li � H .-+ = C U O cy) 00 oo X
O O O O o G \ Ql N to I, > •� ^ to
p o + d N Lf1 0 U — 00 H
•� ° N O c c tin cco c m o o �"-° (7 o L�n °�'
c6 d' to Y G �"� v v _ N M v h L (O N
n of = U N 3 3 = in rH -0 z a) _ ° v a v N v> v N
O L L L 'V)- N Q) i, = V� �} N Y = > 'V�
C = a a H n ;° Q) H C co U '� _c° C cn Q 5 n
L o a O cn cn Gl O N O O L O n -0 m C C C C ~ D
fa H Q 0A vi vi U N L In In Q ~ (% C7 Q — — — — N Q
N C C �` C �` Y Y Y Y W
V1 `� f9 f0 N l0 m `� `� w- L `� C2S v- v- w-. v- U U U U
O cu v� O O y 0 0 O O O O 'L 'L 'L 'L 3 0
co
o Qu � �ncn vi � cn Ouu zuumuuuu � � � � LL u �
•L
m
s N
V C �
OA o °A
Q)
tin =
m (�
O
V
W
L
L
V
N
�+ C
fa O
N •�,
U
Ln
L Q
Y
U
O
2
C U
C X
U C Y O N
cr N U —
Y L 0A
J CO m d
— m
= rn
o rn 11'
_ r) o
O N o 00
L N tD m
O N
O N 00 c-I N Q1 N N 01 � -L} Ln w C v?
�• v} W m m N U O w M i v0l N Lr)O n
-O _ O U to -O � "O
rl v n v ca Q O 00 @ n ro N O v LD n co
+� aJ Ln L E Cl 00 Ln 1— 4-� m
O i
t a) (A.O h Q O ° L O Ln N N � a) N v G) °� c
+' o o U = I o L7 p rn o v _ILI
o {m o U v
•_ L _ t» ri .�yr = c v v} (7 �
a aJ U 73 = O '1 Ln O v)- v co •� tD Ln 00
bD
-L6 o o a� M � s? aJ = = O aU o � au LL In � - = p aJ D_ = p
v c v Q � � Ln � a) v v Q Lri cu N = v v n Q o
a, Q a) v U U U M a •� v = a u u u u z tb a v v u u u
a cca .L _c = _ = G Ll3 a m c = c = 2 M . Q cccn = _ cca
Q G CJ Y Y Y Y ~ N 0 Q > Y Y Y Y '} O O N LL <" G Y Y Y Y G
VL 4 4- v U U u t 4 u 4- 4- 4- 4- U U U U 0 f U U U v 4-
0 0 -0 L O = 0 0 0 0 '� 'L 'L �,'� W 7 — O O O 0
i i i i
to
•L
V c
OiA °A
v LB
a
O >
V
A
C
v
L
L
V
N
O
m
N
fC
bIA
L
O
U
X
.0 O m
U L1. —
v a,
41 7 L]A
m a
_N
O
= O
O 00 m
'a 01 rr) N NO 01
00 0) U')
Of O t/} c-I M O
rf) Lr) (.0 k.0
O O L IT N -I O0 00
t4 D if)- 00 I� c-I lD :3 N
a)
(.D O Zt W t/} lD 00 O t�
N c-I i !n M 00 00 K* c-I L-
��+ >, LL a1 `� C t/} 41 N O 00 v +�.+ lD N ( O t/?
i �"' LL c-I i N I� � t� = N �-I i (O CY)V > O Ol l0 (j + '� d + l0 t�) O c-I tD F` �
CL D_ C Q M `� Lr) > •� vl tB C4 �D Ol > ,aJ �^ t(/} D 00 M > =
0A ~ N ^ O U — �-1 F- � N +-' �D O — �" lD lD
O '+� ° N r, 00 VT L — = Ct o 00 e-j M L .�/} i U = o N � tn- O U
N _ � LL tN tom/? C� O O lD t/} t� CIA O D C •O O � '� t� 'a C7 D
OA ^ E > v L L = O O O N vl M y = O co a) V) ^ A LL ^ O a 00 N i C Y O > L t/? Y QJ O > 00 v O >
t/>• L Z c D_ .a N E cL U U U U `� d - N E Q- U U U U � D_ .� Q U U
a) +� �n -a w cm c c c c @ Q a) cm c c c c v cm c c
O N y... U N — Q U� C Y Y Y .Y p N LL Q U� > c Y Y Y Y +m+ In N Q G Y Y
V m O `'� `� D 4- v- 4- U U U U 4- 4- 4- 4- 4- U U U U
O O M O O O 'L i i i O O O O O i i i i H O m O O
— >. > d >� > � L L L a) Gl T ? >- > > L L L L > d > >
C4 c0 a� } +J +J N a! a1 aJ C a, O a +-+ �, N N N a) a (U (U
co
L
V c
b.0 °-°
O 'v
'++ E
U •�
O
V
C
O
L
L
V
N
O
m
N
MQ
L-
0
U
C
— X
Y O
U LL
i a) (U
m d
rn
N
H m
_ n
� o
= O O c N
( v
rn Ni
G1 00 1.0 o o ri v m m
Q N 00 _
rj 0 00 ri
m r O
O O +'
LI) N
ti} W! cc
O (D >
L O
rq M O i N -1 N O ^ 00 O O CL 00 -ro
V v N t/} 00 O) O > M 00 E 0 i q 00 O a--1 4>
G1 U %D x `� 00 t/? M D_ ~ N 4j x a0 O N z L n x m p Q
q j L! M ^O > •� !^ tNi� D_ N O lD >
M
d N
N
O U T I- M o O L L}
'„4 o L M 0
V 1 'o O V Ln v-)- O
ho CU r-I-a �n N Y N = O N j D_ 'p '^ N O = Y m co 0 .v N Y 2 O E
Q N '� N Q N c J t t — +J co J v 00 QJ
U U +� o_ (! 41 c u U U U z L CL Q- N �' v O D- 0 Q cv
c c o +, n a a 0 m c c c c + M v a� 000 +, a� `° _
ca Y Y w C7 Q > -c _ic �c � +- cn _I � Q C7 Y a � v cn L7 Q � �
U U N w v- v- J c v U U O v O - 0 0 0 J 0 0 0 0
•L •L O O O O O L •L L L
N N j •+T+ O .+�+ 41 N N N m , O +�+ N Y 0 U
au � uuuu ; � � � � n cnuF- uuu no Ovuuu �
ca
+r
L �I
s V
V �
OA 0p
Z
U
� c
C m
O >
V
A
C
L
L
V
N
O
N
7
m
dA
L
O
U
C ^
x
O Lf)
Y
U
LL —
L Q) W
S m m
N
O
Ln
N t/}
1
= a O
C > �.o Lr) Ln
O O O O
CL
� p
O N ri ri V
_ O O N 00
O O � O �
� � r- � �
N O N
o0
N - rj p m Ln O V). t/1 d
lD crj O y q/} y/} = �
00 t/T 7 y/} :3
L � O c--I 'l/T +N-' . LL LL LL
V N c O
00 = O Lr) 0\ M N 00 V)- o o
00 O O O O
p �..� X W r'4 ~ � U �O D LL Ln LL ° �, LL LL i
S tMnMi m r, > .- `O y/? o o Ln �/} o L o V)
4.0 N = M ~ O � k.O O V — tf 00 O Ln O L 00 O = O t
J O C o Ln N � L = a ll1 1 N `� dO C Q1 `� 0O OA
. p a0 t/} L7 3 >
75 Ln m C _v .� .� v m C +' c �'' _ C ca N = t0
a) �}
O F. c0 c0 M L ++ a O a t f6 a C a to C
aJ E Q.. U V U U m O
fC C C N Y C L a v-O S 41 -v6
y O - f4-1 >N y (D Q > Q > O Q
O
a1 Q 'v a 0 - U 'U
0 0 L L L L ,O 6(�O
M O L O 0 0 U O O O O
]z O L > T O T T T L L L L 3 T T T N s- > > L > f>6 >
U O a 0 4, O + + aJ aJ a a) L C 4. OJ + Q + a
zu � G00 � � � � > LLUU au � u
L
m
t �
V t �
� � O
u L
Ln
V m
3 3
� _0 a
O
> z
V
A
471
L 0
L O
V �
N �
_ 0
O O
LL
� O
� U a•T+
M/ LL
L
O
O LL
O
U
3 m
U N :2
C X > O
Y O ^ U
U 0 � 4--L a = O 0 a
L +
a1 O O m CLO
0
0
0
0
0
N �
Lfl LL
M !B
L N N
�F Cr) �
c-I C lD Lfl O
], t/T -a
�+
OO -I v iL} O
LL O V- O
'c
c \ LL Lr
D =3 O = 0) N cu N N "' t/).
G1 LL LL v -O 00 O v}
�++ C v O 00 w
LU m � O L N O � -0 �-i O p o � 0 o N 0 � p V N
OM p 0 p
-1 O N L N r» 0 O n
� �
vL Ln N � ri N O " O O ^ O -1 j-, LJJ V) 00 r ^ 00 N L^ tn O
= N = = U — Oi o o = 00 in. o6 = %c yr —_ Ln — o
•C = = N Ln - V = V � N O Li = Ln Ln iu 0 = oo � _ �D vi = 0 L-
ri c0 41 N L M C 06 C M C
N 'L/� v = N O C N ~ @ C N i/� `C u O N N N � C N v
V
fa ~ 'i C 'i a 41 41 �'' td C +m+ N " N c6 4)
c� a oa � � a N L Q o _ `° Q ova rya
-
�
O ~ O O C 3 ro O v U O — r0 � O ~ ro O ra o
c oo C Y +J m
ZU U U C Li L+ U G rn Z U a VI Z v U C (% U V) U LLn
L
m
t
V
bn
= N
V
Q)
Q
V
A
C
LL O
4�
V _ v
N � �
= O
x
O _0
N 4� Ln O
cu
•� � L L
bD w N O
2 co
O LL 'C_
O O ro O
u i
N
3 'ca m
a� : � -
> O L o
Ln C7 N 0 n t
c O ro o N
O +J Y +� w
O O O l.
N
Cl.
2
v
a o
°o
o
O o
m
u � co V)
m rl L u
41 Ln 0 M m O C:)
p 'U
/} p u
p O1 W p p 0 0 j O p Lr)O i U O e n
O I'D O p N Ql
Ln p O V} N 'a >?V}t
Lf)v� 2 V� v� 2 00 2 ++ 2
ri N m 4! O , L N C ±-� 'v C
t/} C 41 +, � Ql O u C N L C (1
E L O L N L -5 � UL L
fC L Q 41 L a y ..c Q '� M L 7 Q
F— m O j t`o O a O O 0 O
4J > Y tw Y >, $ O Y > >
m cn U Q cn u O cn cn C..) Z 2 cn Z u
�i
m
s
V
dA
C �
U
3 O
C �
O a
V
L
L
V u
C _g_-
O v
x
'++ o
c� -a
IL I!
•r
m O
bO
O
m O
L
m
L O
00
ca O
Y +-+ N
N � d