5.1. SR 04-06-2009REQUEST FOR ACTION
To Item Number
Ci Council 5.1.
Agenda Section Meeting Date Prepared by
O en Mike Aril 6, 2009 Tina Allard, Ci Clerk
Item Description Reviewed by
Request for Gambling Ordinance Amendment Lori ohnson, Ci Administrator
Reviewed by
Action Requested
Direction to staff on whether to proceed with an ordinance amendment.
Background/Discussion
A representative from Time Out Restaurant would like to request an ordinance amendment in order to
allow organizations not located in the city's trade area to operate premises permits (to sell pull tabs) in Elk
River.
December 1995
The City Council directed staff to do an ordinance amendment that would specifically exclude outside
organizations. The Council's concern pertained to outside organizations not meeting the 75% of lawful
expenditure requirements for the city's trade area. Apparently, there was an organization that didn't meet
the requirement. In a survey done of other cities at that time, it was about 50-50 that had the residency
requirement clause.
Attachments
^ Current Ordinance
Action Motion by Second by Vote
FOIIOW Up
S:\Administration\Council RCA\Licensing\Gambling\2009\Ord Amdmnt Request.doc
ARTICLE V. LEGALIZED GAMBLING*
ARTICLE V. LEGALIZED GAMBLING*
Page 1 of 3
*State law references: Lawful gambling and gambling devices, Minn. Stats. ch. 349; local regulation
of gambling, Minn. Stats. § 349.213.
Sec. 38-161. Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
Gambling control division means the state agency that licenses and regulates gambling.
Lawful gambling means the operation, conduct, or sale of bingo, raffles, paddlewheels,
tipboards, and pull-tabs.
Lawful purpose means any expenditure by, or contribution to, a 501(c)(3) organization,
provided that the organization and expenditure or contribution are in conformity with standards
prescribed by the gambling control board under Minn. Stats. § 349.154.
Net profit means gross profit less reasonable sums actually expended for allowable expenses.
Organization means a religious, fraternal, veterans', or other nonprofit entity which has been in
existence for at least three years, has at least 15 active members and is not in existence solely for the
purpose of conducting gambling.
Premises permit means atwo-year permit granted by the state gambling control board for each
premises where lawful gambling is to be conducted.
Trade area means all cities contiguous to the City of Elk River, including the City of Elk River,
the City of Otsego, the City of Rogers, the City of Ramsey, and the City of Zimmerman.
(Code 1982, § 716.00)
Cross references: Definitions generally, § 1-2.
Sec. 38-162. Purpose of article.
It is the stated policy of the city council that, to the extent lawful regulated gambling is permitted
within the city, the net profits and proceeds of gambling shall directly benefit the citizens of the city.
(Code 1982, § 716.02)
Sec. 38-163. Licenses and permits generally.
(a) It shall be unlawful to operate lawful gambling without a license issued by the state
gambling control division.
(b) Licenses to operate gambling devices or to conduct raffles shall be issued only to a
fraternal, religious, veterans', or other nonprofit organization covered by Minn. Stats. § 349.16.
(c) The organization desiring a gambling license must obtain an application from the state
gambling control division.
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ARTICLE V. LEGALIZED GAMBLING
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(d) The gambling control division may not issue or renew a premises permit or bingo hall
license unless the organization submits a resolution from the city council approving the
premises permit or bingo hall license. The resolution must have been adopted within 60 days of
the date of application for the new or renewed permit or license.
(e) A premises permit issued by the gambling control division is valid for two years
(Code 1982, § 716.04)
State law references: License generally, Minn. Stats. § 349.16.
Sec. 38-164. Restrictions on issuance of premises permit.
(a) The city reserves the right to disapprove a premises permit application for individual bingo
occasions, raffle games, and pull-tab operations for any of the following reasons:
(1) Violation by the applicant of any statute, rule, regulation or ordinance relating to
gambling.
(2) Failure to make reports required by any applicable ordinance, rule, regulation or
statute.
(3) Any reason which would justify the state gambling control board in denying an
application for a license.
(b) No premises permit or renewal will be approved unless:
(1) The organization is conducting the lawful gambling on the premises of a church or a
fraternal, veterans', or other nonprofit organization, or on the premises of an on-sale
.liquor license of the city.
(2) The physical site for the organization's headquarters or the registered business
office of the organization is located within the city or a city contiguous to the city. This
requirement may be waived for an existing organization which does not comply with this
req ~i~ rem,~,nt if~~proved by the city council at the time of the r .mises permit renewal.
(c) Only one premises permit shall be allowed per premises for lawful gambling operations.
Only one premises permit shall be allowed per organization for lawful gambling operations.
(Code 1982, § 716.06)
Sec. 38-165. Lawful purpose expenditures by organizations conducting gambling.
(a) For purposes of this section, the term "trade area" shall mean all of the following areas: the
City of Elk River, the City of Ramsey, the City of Otsego, the City of Rogers, and the City of
Zimmerman.
(b) Any organization holding a premises permit to conduct lawful gambling within the city shall
be required to expend 75 percent of its gross profits derived from lawful gambling within the city
on lawful purposes conducted or located within the city's trade area.
(c) An organization that conducts gambling on fewer than five days in a calendar year is
exempt from the requirements of this section.
(Code 1982, § 716.08)
State law references: Authority to so provide, Minn. Stats. § 349.213, subd. 1.
Sec. 38-166. Reporting requirements.
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ARTICLE V. LEGALIZED GAMBLING*
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(a) Every organization licensed to conduct gambling in the city shall file with the city clerk
copies of the monthly state gambling report and schedule C required to be filed with the state
lawful gambling control board pursuant to Minn. Stats. ch. 349. The records and reports shall be
due at the same time they are due to the gambling control board.
(b) Every organization licensed to conduct gambling in the city shall file with the city clerk an
annual summary report of the expenditures for lawful purposes within the trade area.
(c) Organizations conducting gambling activities in other communities as well as the city shall
segregate the gross receipts, expenses, profits and expenditure of profits from the Elk River
operation.
(Code 1982, § 716.10)
State law references: Records and reports, Minn. Stats. § 349.19.
Secs.38-167--38-190. Reserved.
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