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Department Approval � �� REQUEST FOR COUNCIL ACTION Manager Approved: .� ��_�� Date: 912612005 Item No: 3.k Agenda Section: Consent Item Description: Setting a Public Hearing to Consider Amending City Code, Chapter 304 — Lawful Gambling Background City Code, Chapter 304.06 details permitted exemptions from lawful gambling licensing requirements. Chapter 304.06, subd. A; specifies that in order to be exempt from licensing requirements, an organization must limit the award of prizes to a maximum of $750 in any calendar year. This was consistent with the same maximums set forth by State Statute. However, during the past legislative session the Statute was modified raising the new maximum prize amount to $1,500. Recently, an applicant seeking an exemption from lawful gambling local licensing requirements requested that the City consider amending its Code to conform with State Statutes, and increase the maximum prize award from the current $750, to $1,500 per year. Discussion Issues Lawful gambling is highly regulated by the State of Minnesota. In most regards, the City Code pertaining to lawful gambling was written to be consistent with State Statute. While the City can require more stringent criteria for exempting lawful gambling organizations, doing so can create confusion among participating organizations, and increases administrative oversight costs. The current $750 amount has remained fixed since 1992, and after adjusting for inflation, would equate to approximately $1,000 in today's dollars. Conceptually, the higher the maximum prize award amounts, the greater the overall funds that are raised. This in turn, leads to greater contributions to various non-profit and youth-based groups in the Roseville area. Of course, these added monies arguably create a greater potential for misdeeds. However, from Staffs perspective, increasing the maximum prize award amount to $1,500 does ri; � L create any added public safety concerns. Clearly the State of Minnesota has reached this same conclusion. Staff also recommends that the Code be amended to remove any specific dollar references in favor of a reference to the applicable State Statute, and the annually-adopted Fee Schedule. This should alleviate the need to amend the Code for somewhat routine matters. Finally, Staff recommends that a few other City Code provisions be updated to reference the correct State Statute.