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HomeMy WebLinkAbout5B, City Code Amendments to Section 330.02 Gambling �-iREN HILLS I Request for Council Action 5B 3 i Prepared By: Amy Dietl,Deputy Clerk Council Meeting Date: January 28, 2013 City Code Amendments to Section 330.02 Gambling Budgeted Amount: Actual Amount: Funding Source: n/a n/a n/a Recommendation: Motion to adopt Ordinance 2013-001 entitled, "Amending Section 330.02 Gambling of the City Code." Motion to approve publication of a summary of Ordinance 2013-001 (4/5 vote required). Supporting Documents: 1. Memorandum from Amy Died, Deputy Clerk, dated January 28, 2013. 2. Attachment A: Ordinance 2013-001 and Publication Summary. 3. Attachment B: Redlined Copy of Section 330.02 Indicating Proposed Changes. lt EN HILLS MEMORANDUM DATE: January 28,2013 TO: Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator FROM: Amy Dietl,Deputy Clerk SUBJECT: City Code Amendments to Section 330.02 Gambling Background/Discussion The discussion regarding Section 330.02 Gambling of the Municipal Code began after a gambling and premise permit received from the Spring Lake Park Lions was presented to the City Council at its meeting on November 26, 2012. The item was tabled at that meeting, but subsequently, has been discussed at work sessions on December 17, 2012, and most recently on January 22, 2013. After receiving Council direction, the following changes have been made to Section 330.02 Gambling. Please note that the City Attorney has reviewed and approved of these revisions. ➢ Require 75% of an organization's net profit to be expended on lawful purposes conducted within the Trade Area(Subd. 12). ➢ Add definition of net profits (Subd. 1). ➢ Reworded Subdivision 2. Additionally, staff will adhere to Subdivision. 9 and will collect three (3%) percent of the organization's gross receipts from all lawful gambling, less prizes actually paid out by the organization. Staff will also enforce Subdivision 10 requiring organizations to provide copies of their financial reports. Council Action Requested Motion to adopt Ordinance 2013-001 entitled "Amending Section 330.02 Gambling of the City Code." Motion to approve publication of a summary of Ordinance 2013-001 (4/5 vote required). Attachment A : Ordinance 2013-001 and Publication Summary January 28, 2013 — City Council Meeting City of Arden Hills dr EN HILLS Ordinance 2013-001 STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF ARDEN HILLS ORDINANCE 2013-001 AN ORDINANCE AMENDING SECTION 330.02 GAMBLING OF THE CITY CODE The Arden Hills City Council hereby ordains that Chapter 3, Section 330.02 of the City Code shall hereby be amended as follows: 330.02 Gambling. Subd. I 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. Net Profit. Mean gross revenues, less prizes paid, less allowable expenses, less applicable taxes. (Added: January 28, 2013) Trade Area. The corporate boundaries of the City and each City immediately contiguous to the City. Subd. 2 Lawful Gambling Permitted. The City of Arden Hills hereby reserves all rights to regulate lawful gambling as regulated by Minnesota Statutes Chapter 349. It may be amended from time to time including the right 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. Complies with all of the provisions of this Chapter—Licenses and Regulations (§330.02 Gambling). (Revised:January 28, 2013) 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. Page 1 of 4 Ordinance 2013-001 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. 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. Page 2 of 4 Ordinance 2013-001 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 of its net profit on lawful purposes conducted or located within the trade area. (Revised: January 28, 2013) 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. I Page 3 of 4 Ordinance 2013-001 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. Effective Date. This Ordinance shall become effective the day following its publication. Adoption Date. Passed by the City Council of the City of Arden Hills the 28th Day of January, 2013. DAVID GRANT, MAYOR ATTEST: PATRICK KLAERS CITY ADMINISTRATOR Publication Date: i Page 4 of 4 I CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA SUMMARY OF ORDINANCE NO. 2013-001 On the 28th day of January 28, 2013, the Arden Hills City Council adopted Ordinance No. 2013-001, and by four affirmative votes pursuant to Minn. Stat. §412.191, Subd. 4, directed that a summary of Ordinance 2013-001 be published. Ordinance 2013-001 is entitled"Amending Section 330.02 Gambling of the City Code." A full copy of Ordinance 2013-001 is available for inspection by any person during regular business hours at the office of the City Administrator, 1245 West Highway 96, Arden Hills, Minnesota 55112. The Ordinance is also available online at http://www.cityofardenhills.org . Attachment B • Redlined Copy of Section 330.02 Indicating Proposed Changes January 28, 2013 —City Council Meeting City of Arden Hills EN HILLS 330.02 Gambling. I 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 City 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 right 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) qpplication pending with the Internal Revenue Service. C. Complies with all of the provisions of this Chapter—Licenses and Regulations X330.02 Gambling). o v iflealiffqUA44 pfavisiefis_484me law, , 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. 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 j in the City during the year in which the permit will be effective. I 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 si? y-(60-04) per-sent 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. i 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.