79-002 ORD
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ORDINANCE NO. 79-2
AN ORDINANCE PROVIDING FOR THE LICENSING OF RAFFLES AND GAMBLING DEVICES
AND THEREBY AMENDING THE MUNICIPAL CODE BY ADDING CHAPTER 21
The City Council of the City of Elk River does ordain as follows:
Section 1. The Municipal Code of the City of Elk River is hereby amended by adding
thereto the following chapter:
CHAPTER 21
RAFFLES AND GAMBLING DEVICES
21.01 Definitions. The following words and terms as used in this chapter shall have
the following meanings unless the context clearly indicates otherwise:
(a) "Active member" means a member of an organization who has paid all his
or her dues to the organization and has been a member of the organization
for at least six months.
(b) "Gambling devices" means those gambling devices known as "paddlewheels"
or "tipboards," or apparatus used in conducting raffles.
.
(c) "Gambling manager" means a member of an organization who has paid his
or her dues to the organization, who has been a member of the ~rganization
for at least six months, and who has been designated by the organization
to supervise the operation of gambling devices and the conduct of raffles.
'"
(d) "Lawful purpose" means one or more of the following: (i)~~nefiting
persons by enhancing their opportunity for religious or educational
advancement, by relieving or protecting them from disease, suffering
or distress, by 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; (ii) initiating, performing, or
fostering worthy public works or enabling or furthering the erection
or maintenance of public structures; (iii) lessening the burdens borne
by government or voluntarily supporting, augmenting or supplementing
services which government would normally render to the people; or (iv)
the improving, expanding, maintaining or repairing real property owned
or leased by an organization. "Lawful purpose" does not include the
erection or acquisition of any real property unless the City Council
specifically authorizes the expenditures after finding that the property
will be used exclusively for one or more of the purposes specified in
this clause.
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(e) "Organization" means any fraternal, religious, veterans, or other
nonprofit organization covered by Minnesota Statutes, Section 290.05,
subdivision 1, clause (i) or (k), no part of the net income of which
inures to the benefit of any private member, stockholder, or individual.
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(0 "Paddlewheel" means 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.
(g) "Profit" means the gross receipts from the operation of gambling devices
and the conduct of raffles, less reasonable sums expended for prizes,
local licensing fees, taxes and maintenance costs for the devices.
(h) "Raffle" means a game in which a participant buys a ticket for a chance
at a prize with the winner determined by a random drawing.
(i) "Tipboard" means a board, placard, or other device measuring at least
twelve inches square, marked off in a grid or similar pattern, in which
each section contains a hidden number or numbers or other symbol which
determines the winning chances.
21.02 License Required; Requirements for Issuance. It shall be unlawful to operate
gambling devices and to conduct raffles, as defined in this chapter, without being
licensed as further provided in this chapter. Nothing in this section shall be construed
to authorize any use, possession or operation of (i) any gambling device which is
activated by the insertion of a coin or token; or (ii) any gambling game or device in
which the winning numbers, tickets or chances are in any way determined by the outcome
of any athletic contest or sporting event.
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(a) Licenses. Licenses to operate gambling devices or to conduct raffles
shall be issued only to a fraternal, religious, veterans, or other
nonprofit organization covered by Minnesota Statutes, Section 290.05,
subdivision 1, clause (i) or (k), no part of the net income of which
inures to the benefit of any private member, stockholder or individual,
which organization has been in existence for at least three years, has
at least 30 active members, and complies with Laws 1978, Chapter 507.
(b) Application.
(1) Application for a license to operate gambling devices or to conduct
raffles shall be made to the City Council by an organization
authorized by this chapter to operate gambling devices or conduct
raffles. The application shall be verified by a duly authorized
officer and by the gambling manager of the organization who is
designated by the organization to supervise the operation of gambling
devices and the conduct of raffles. The application, together with
all fees required by this chapter, shall be submitted to the City
Clerk for presentation to the Council.
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(2) The application shall be in the form specified by the City Clerk
and shall state the premises where gambling devices will be operated
or raffles conducted and the date(s) and the hours for which
permission is requested and the nature of the gambling device to
be operated or the raffle to be conducted on the premises by the
applicant organization. Gambling devices shall not be operated
and raffles shall not be conducted on premises other than those
specified in the application.
(3) The City Council shall act on the application within 180 days from
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21.03
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the date of application, but shall not issue a license until at
least 30 days after the date of application. The City Council shall
in its discretion either grant or deny the application.
License Restrictions and Regulations.
(a) General Duties and Responsibilities of Licensed Organization. The
licensed organization shall be responsible for the proper conduct of
raffles and operation of gambling devices and for compliance with the
provisions of Laws 1978, Chapter 507 and all other pertinent statutes;
this chapter; and all other statutes, ordinances, and regulations of
any governmental agency pertaining to the conduct of such activities
or to the premises upon which gambling devices shall be operated or
raffles conducted.
(b) Operation. No compensation shall be paid to any person in connection
with the operation of a gambling device or the conduct of a raffle by
a licensed organization. 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 licensed organization's operation
of a gambling device or conduct of a raffle.
(c) Change of Officers. If subsequent to the issuance of the license there
is a change of officers of the licensed organization or of the gambling
manager as identified in said application, the licensed organization
or gambling manager shall promptly notify the City Clerk of such change
or changes.
(d) Fees.
(1) License fees shall be submitted with the application and shall be
as follows:
(A) Special Event -- $53.00 for a single day and $5.25 for
each additional day.
(B) Yearly License:
(i) For all devices -- $300.00
(ii) For tipboard -- $150.00
(iii) For paddlewheel -- $150.00
(iv) For raffle -- $150.00
(C) Special Event Raffle -- If an organization conducts no
more than three raffles per year, there shall be no fee.
(2) Each license shall expire on December 31 of the year for which said
license is issued unless a lesser time period is established by
the City Council at the time of granting a license.
(e) Prize Limits. Total prizes from the operation of paddlewheels and
3.
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tipboards awarded in any single day in which they are operated shall
not exceed $500. Total prizes resulting from any single spin of a
paddlewheel, or from any single tipboard, shall not exceed $100. Total
prizes awarded in any calendar year by any licensed organization from
the operation of paddlewheels and tipboards and the conduct of raffles
shall not exceed $15,000. Merchandise prizes shall be valued at fair
market retail value.
(f)
Premises. Gambling devices shall be operated and raffles conducted by
a licensed organization only upon premises which it owns or leases except
that tickets for raffles conducted in accordance with this chapter may
be sold off premises. Leases, unless authorized in another location
by the City Council, shall be for a period of not less than one year
and shall be in writing. No lease shall provide that rental payments
be based on a percentage of receipts or profits from gambling devices
or raffles. Copies of all leases shall be provided to the City Clerk
at the time of application.
(g)
Records and Reports.
(1)
At least 30 days prior to the first yearly gathering or occasion
at which gambling devices are operated or a raffle is conducted
and on an annual basis thereafter, a licensed organization shall
file with the City Clerk copies of the following:
(A) Department of Treasury, Internal Revenue Service, "Return
of Organization Exempt from Income Tax" Form 990, or a
comparable form if the licensed organization is required to
file the form with the Department of the Treasury.
(B) Department of Treasury, Internal Revenue Service, "Exempt
Organization Business Income Tax" Form 990-T, or a comparable
form if the licensed organization is required to file the form
with the Department of the Treasury.
(C) The annual report required of charitable organizations
by Minnesota Statutes, Section 309.53.
(2) Each licensed organization shall keep records of its gross receipts,
expenses and profits for each single gathering or occasion at which
gambling devices are operated or a raffle is conducted. All
deductions from gross receipts for each single gathering or occasion
shall be documented with receipts or other records indicating the
amount, a description of the purchased item or service or other
reason for deduction, and the recipient. The distribution of profits
shall be itemized as to payee, purpose, amount and date of payment.
Gross receipts from the operation of gambling devices and the conduct
of raffles shall be segregated from other revenue of the licensed
organization and placed in a separate account. Each licensed
organization shall have separate records of its gambling operations.
(3) Not more than 15 days after each gathering or occasion at which
gambling devices are operated or a raffle is conducted, or at the
4.
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end of each month for licensed organizations holding yearly licenses,
the licensed organization shall report to the City Clerk and to
its membership its gross receipts, expenses and profits from gambling
devices or raffles and the distribution of profits itemized as
required in this chapter.
(4)
Each licensed organization shall also submit to the City Clerk such
other and further information as the City Council may from time
to time require.
(h) Fidelity Bond. The gambling manager for each licensed organization shall
give a fidelity bond in the sum of $10,000 in favor of the licensed
organization, conditioned on the faithful performance of his or her
duties. Terms of the bond shall provide that notice shall be given in
writing to the City Clerk not less than 30 days prior to its cancellation.
A copy of the bond shall be filed with the City Clerk.
(i) Gambling Manager. A gambling manager for a single licensed organization
shall not act as a gambling manager for any other licensed organization.
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21.04 Suspension or Revocation. The City Council may suspend or revoke any license
for violation of any provision of this chapter, the laws of the State of Minnesota,
or any other law, ordinance or regulation pertaining to the operation or conduct of
the licensed activities. Prior to such action, the licensed organization shall be
provided with written notice setting forth the nature of the charges and the date of
the hearing before the Council, which hearing shall be no less than 10 nor more than
20 days after the date of service of such notice upon the licensed organization by
registered or certified mail or personal service. A representative of the licensed
organization shall have the right to appear at the hearing with counsel and to present
such evidence as the Council deems appropriate. The Council shall have the power and
discretion to suspend the license pending the hearing.
Passed and adopted this j) day of rebr~~~
, 197f.
Attest:
,'''-;:'c'' /~ . / /. ~
_,~,,c _...,/1.'.. r-.;C"""" i';c';(' (:._,......
- . .,'/ , C Y Clerk
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5.
PUBLIC NOTICE
AFFIDAVIT OF PUBLICATION
State of Minnesota
County of Sherburne
} SSe
Cl'1arles F. Dare, being duly swqrn on oath says he is and during all the times
l:Ierein stated has been the publisher and printer of the newspaper known as
Sherburn, County Star News and has full knowledge of the facts herein stated as
follows: (1) Said newspaper is printed in the English language In newspaper
format and in column and sheet form equiyalent In printed space to at least 900
square inches. (2) Said newspaper is a weekly and Is distributed at least once
each week. (3) Said newspaper has 50% of its news columns devoted to news of
local Interest to the community which it purports to serve and does not whOlly
duplicate any other publication aAd is not made up entirely of patents, plate
matter and advertisements. '(4) Said newspaper Is circulated In and near the
municipiJ/ity which it purports to serve, has at least 500 copies regularly
delivered to Piilying subscribers, has an average of at least 75% of Its total
circulation currently paid or no more than thr!!e months In arrears and has entry
as se<;ond-class matter In its local post-office. (5) $ald newspaper purports to
serve the City of Elk River In the County of Sherburne and It has its known office
of issue in the City of Elk River in said count!. established and open during its
regular b'usiness hours, for the gathering of news, sale of advertisements and sale
of subscriptiqns and maintained by the publiSher of said newspaper or persons in
his employ and subject .to his direction and control during all such regular
business hours and devoted e/CcluslVely during such regularbusinl!ss hours to the
business of the newspaper and b\lslness related thereto. (6) Said newspaper files
a c9PY of eal=h issue immediately with the State !ilstoriclll Society. (7) Said
neY(spaper Is made available at single' or subscription prices to any person,
corporation, partnership or other unincorPorated association requesting the
newspaper and makinll the applicable payment. (8) Said newspaper has complied
with all the foregoing conditions for at least one year preCedll1g the day or dates
of pIJblicatlon mentioned below, (9) Said newspaper has .filed with the Secretary
of State of Minnesota prior to January 1, 1966 and each Janui!ry 1 thereafter an.
affidavit in the form prescribed by the Secretary of State and Signed by the
publiSher of said newspaper and sworn to before a notary public stating that the
newspaper is a legal newspaper.
HEI further states on oath that the printed
~
hereto attached as part hereof was cut from the cohJmns of s/lld newspaper,
and was printed and published therein In the English language, once each week
for 01A.J2-. successive weeks; that it was first so p\Jblished on Th\Jrsday,
the
~
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day ,of
~ 19::i/- and was thereafter
printed and published every Thursday to an/llnCluding the
day of ,19 and that the following is a
printed copy of the lower case alphaqet from A to Z, both inclusive, and Is hereby
pc knowledged as being the size and kind of type used in the composition and
publication of said notice. to wit:
. abcdefghllklmnopqrstuvwxyz
~~ ,Pobl"""
g
SUbscribed and sworn to before me this
day of
'-r'ntL.-t.(!-Iv
19
"79
.C~/')-~(LUYC ~'~7UJU-L-
Notary Public
County, Minnesota
My Com
l~@- ir~~~Y~L~~::'
~ SHERBURNE COUNTY
My Comml811lon Expllw Mar. St,tge2
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!iilt , . '.,.,
natji1d bv. '.' i1~tl!)1!
Vis~);,me'9P!1~iljon "of, gilrn
vi<;es and thE('eondu<;t'of ra
(d) "Lawful purpose" means one
or more of the following: (i) benefit.
ing person$ bY~nhan(:!ng;thelrpp:
portunityfor religiouS Or .,edUC!!-
tional, i:ldyancement/ py'rElIIElVlng cir
prptecting them. from disease, $uf-
fering pr di.stre$$, by contributing to
their pHysical well;being, by as-
sis(ingl them in 'El!itablishihgthem-
selves in life as worthy and; useful
citizens, or bY in<;r'easirig their com.
prenens.on OT" ana aevoTlon TO, Tne
pril1C! Plln: Wp' is' nafipn
w!!~ " . ,. 'p.,.fl;lrrl'h
ifl9}
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II
s
d
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i pty ~ouncl Y jln organization
,U authQrlzed by thi$ chapter to operate
~ ga I1!lb ling devices or conduct raffles.
.,i The' application shall be verified by
H~' a duly authorizEld officer and by the
fr gambling manager of the, organl:
,;,zatlon who. Is de!iignated by the
organization to supervise the oper-
~'\ ation of,gamblingdevices and the
,'.." conduct of r,affles. The application,
:'.; together with all fees required by'
;, tlJlschapter, shall be submitted to
the City Clerk for presentation to the
'. Council. .
~ " (2) The ,application shall be in the
form specified by the City Clerk and
shall state the premises where gam-
bling devi(es will be operated or
raffles conducted and the date(s)
and the hours fpr which permission
is requested and the nature of the
gambling device to be operated or
the raffbt to be conducted on the
premi$eS'b~the applicant organiza-
tion. Gambling devices shall not be
operated and raffles shall not be
conducted on premises other than
those sDecified in the aDDlication.
f
, du<;tof
'raffl nd operation of gambling
. dElyices and for cpmpliance with thEl
proiiisi lis of Laws 1978, qhapter 507
'an her pertinent statutes; this
" ch and all :other, statutes. or,-
t dinal1ces,', and rel;lulatiqn!i ':M, y
governmental agency pertain I 0
the conduct of such activit 0
the premises ,uppn whiCh gambl!l'lg
.' device$" ,shall be,op~rated iiI' ;raffl~s,'
conducted. " " ,
ll:llOperiltion. Nocompensatiori
,shall be pjlld to any person 'In con-
n~<:tlon with the operation of a gam-
bling deviC;:,e or ,the cpndu<;t ,of a
raffle bya lIf:ensed organization. No
person who 1$ not an',actlve member
ization, or, its,auxiliary,
'se or surviving spouse of
e member may,p r ic
in the licensed organlz
atiQn {Of I,ilgilm!?lin
cOl'ldllct of a raffle., 'I
(c;lChan'ge' of Offle
quent'tp the issuancEl
therEl, is a c;:hange. of 0
licensed orgjlnization 0 ;I€~ V''
bllng'manal;ler a$idElntified irf'; )-.4
application., the licensed Qrganf :.1-
tion or' gambling managersli.,'lll
promptly notify the City Clerk c:>f
such chiilng!ii or chan t., '
(d) Fees. '
(1) License fees sh
with the application
f
tion.
d,or
",of
e
r
la-
or
cpnductpf the license a nVllies.
Prior to such action. the licensed
organization shall be provided wit.h
'written notice setting forth the na'
ture of the c;harges and the date of
the hearing, I:)efore the CounCil;
which hearing shall I:),e no less 'hanl
10 nor more than 20 days after thel"
date of servi,ce of such notice upon.,
the licensed organization by regis"
tered or certified mail or personal
service. A representative of the Ii'
censed organization shall Ilave th~,
right to appear aT Tne nearing with
counsel and to present such eVidence
as the Council deems appropriate.
The Council shall have the power
and discretion to suspend the license
peMmg Tne hearing.
Passed and adopted this 5th day of
February, 1979. .
Franklin Madsen, Mayor
Attest:
Robert Middaugh,
City Adm.
(Mr8)