HomeMy WebLinkAboutOrdinance - 83-01 - Gambling Ordinance - 02/15/1983 ORDINANCE NO. 1-83
AN ORDINANCE OF THE CITY OF EDEN PRAIRIE, MINNESOTA, AMENDING
CITY CODE CHAPTER 5 BY ADDING THERETO SECTION 5.40 RELATING TO
THE REGULATION, LICENSING AND USE OF GAMBLING DEVICES, AND ADOPTING
BY REFERENCE CITY CODE CHAPTER 1 AND SECTIONS 5.01 THROUGH 5.11
AND SECTION 5.99 WHICH, AMONG OTHER THINGS, CONTAIN PENALTY
PROVISIONS.
THE CITY COUNCIL OF EDEN PRAIRIE, MINNESOTA, ORDAINS:
Section 1. City Code Chapter 5 shall be and is amended by adding thereto
`ec. 5.40 which reads as follows:
SEC. 5.40. GAMBLING DEVICES.
Subdivision 1. Purpose. The purpose of this section is to regulate
and control the conduct of certain gambling activities pursuant to the provisions
of Minnesota Statutes, Section 349.26.
Subd. 2. Definitions. For the purposes of this ordinance the terms
defined in this ordinance have the following meanings.
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(a) "Gambling devices" means those gambling devices known
as "paddle wheels" or "tip boards", "pull tabs" (or "ticket jars"), or apparatus used
in conducting raffles.
(b) "Paddle wheel" 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.
(c) "Tip board" means a board, placard or device measuring
at least twelve inches square, marked off in a grid or columns, in which each section
contains a hidden number or numbers, or other symbol, which determines the winning
chances. x
(d) "Raff le" means a game in which a participant buys a ticket
for a chance at a prize with the winner determined by random drawing to take
place at a location and date printed upon the ticket.
(e) "Pull tabs" (or "ticket jars") means a single folded or banded
ticket or a card, the face of which is initially covered, or otherwise hidden from
view, to conceal a number or set of numbers or a symbol or set of symbols. A
few of the numbers or symbols out of every set of pull tabs (or ticket jars) will
have been designated in advance and at random as prize winners. The participant
pays a consideration to an operator for the opportunity to obtain a folded or banded
ticket or a card, view the numbers or symbols on it and possibly obtain a prize
winning pull tab (or ticket jar).
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(f) "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.
(g) "Gambling manager" means a member who has paid all
his dues to the organization and has been a member of the organization for at
least two years and has been designated by an organization to supervise gambling
activities conducted by it.
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(h) "Active member" means a member who has paid all his
dues to the organization and has been a member of the organization for at least
six months.
W "Organization" means a fraternal, religious, veterans or a
other nonprofit organization which is a corporation, fund, foundation, trust, or .
association organized for exclusively scientific, literary, religious, charitable,
educational, or artistic purposes, or for the purpose of making contributions to
or for the use of the United States, the State of Minnesota, or any of its political
subdivisions for exclusively public purposes, or for any combination of the above
enumerated purposes, if no part of the net income of any such corporation, fund,
foundation, trust, or association inures to the benefit of any private member,
stockholder, or individual, or is a club organized and operated exclusively for
pleasure, recreation, or other nonprofitable purposes, 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 and has at least K
15 active members.
(j) "Lawful purpose" means one or more of the following:
(1) Benefiting 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 principals upon which this nation was
founded;
(2) Initiating, performing, or fostering worthy public
works or enabling or furthering the erection or maintenance of public structures;
(3) Lessening the burdens born by government or voluntarily
supporting, augmenting or supplementing services which government would normally
render to the people; or
(4) 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 specifically authorizes
the expenditure after finding that the property will be used exclusively for one
or more of the purposes specified in this subdivision.
(k) Nothing in the City Code shall be construed to authorize F
any use, possession or operation of
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(1) Any gambling device which is activated by the insertion
of a coin or token; or
(2) 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.
Subd. 3. License Requirement. A system for the licensing of organizations
to operate gambling devices and to conduct raffles is hereby established. No
person shall directly operate a gambling device or conduct a raffle except as authorized
by statute and the City Code and unless a license to do so, as provided in this
section has first been obtained.
Subd. 4. Fees and Application Procedure.
(a) There are two types of licenses which may be issued by
the City for each device or occasion:
(1) A single occasion temporary license or
(2) An annual license. All single occasion temporary
licenses are valid only on the dates specified, which may not exceed 3 consecutive
days. Annual licenses shall expire one year after the date of issuance.
(b) Action on the application shall be taken in accordance
with section 5.03 of the City Code, provided however the application shall be
acted on within 180 days from the date of application, but a license shall not be
issued until at least 30 days after the date of the application. i
(c) The application shall contain an agreement on the part
of the applicant that if the license being applied for is granted, the licensee will
save the City, its officers and agents harmless against any claims or actions and
the cost of defending any claims or actions arising out of or by reason of the granting
of the license or the conduct of any of the activities authorized by the license.
Subd. 5. Issuance of License. An annual license may be issued only
to a fraternal, religious or veterans organization. A single occasion temporary
license may be issued only to an organization.
Subd. 6. Profits. Profits from the operation of gambling devices or
the conduct of raffles shall be used solely for lawful purposes and as authorized
at a regular meeting of the organization, provided, however, except for profits
from the conduct of raffles by the holder of a single occasion temporary license,
at least 60 percent of the pprofits must be used for one or more of the purposes
enumerated in (1), (2) or (3), subparagraph (j), Subd. 2 of this Section for persons
or objects within the City.
Subd. 7. Conduct of Gambling. All operation of gambling devices
and the conduct of raffles shall be under the supervision of a single gambling manager
designated by the organization. The gambling manager shall be responsible for
gross receipts and profits from gambling devices and raffles and for their operation.
The gambling manager shall give a fidelity bond in the sum of $10,000 in favor
of the organization conditioned on the faithful performance of his duties. A gambling
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manager for a single organization shall not act as a gambling manager for any ,..
other organization. A gambling manager for an organization shall be an active
member of the organization.
Subd. 8. Compensation. No compensation in excess of $25 a week,
shall be paid in connection with the operation of a gambling device or the conduct
of a raffle by a licensed organization except a licensed organization may elect
to pay a percent of raffle ticket sales to nonprofit organizations selling for the
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 organization's operation of a gambling device or conduct of a raffle except
the licensed organization may utilize nonmember nonprofit organization in raffle
ticket sales.
Subd. 9. Reporting Requirements.
(a) Each organization licensed to operate gambling devices
shall keep records of its gross receipts, quantity of free plays, if any, 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, the description of the purchased item or service or other
reason for the deduction, and the recipient. The distribution of profits shall be
itemized as to payee, purpose, amount and date of payment.
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(b) Gross receipts from the operation of gambling devices
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and the conduct of raffles shall be segregated from other revenues of the organization
and placed in a separate account. Each organization shall have separate records
of its gambling operations. The person who accounts for gross receipts, expenses
and profits from the operation of gambling devices or the conduct of raffles may
be the same person who accounts for other revenues of the licensed organization.
(c) Each organization licensed to operate gambling devices
or to conduct raffles shall report monthly to its membership, and to the City Clerk,
its gross receipts, expenses and profits from gambling devices or raffles, and the
distribution of profits itemized as required in this section.
(d) Records required by this ordinance shall be preserved for
three years, and organizations shall make available their records relating to operation
of gambling devices and the conduct of raffles for public inspection at reasonable
times and places.
(e) The City Manager may require a licensee at its expense
to cause a review and examination by a licensed certified public account or other
qualified person approved by the City Manager of the books and records of the
organization holding a license relating to the gambling activities conducted by
it pursuant to such license and a report thereon by such person to such extent
and in such form as the City Manager may require.
Subd. 10. Eligible Premises. Gambling devices shall be operated and N
raffles conducted by an organization (a) holding an annual license only upon premises , y
which it owns and (b) holding a single occasion temporary license only upon premises
which it owns or leases, except that tickets for raffles conducted in accordance
with this section may be sold off the premises by an organization holding either
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type of license. The City Clerk, upon approval by the City Council, may authorize
raffles to be conducted by a licensed organization on premises not owned or leased
by the organization. Leases 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. A copy of
each lease shall be filed with the City Clerk at the time of the application for
license and shall comprise a part of the application.
Subd. 11. Prize Award Limits.
(a) Total prizes from the operation of paddle wheels, tip boards
and pull tabs (or ticket jars) awarded in any single day in which they are operated
shall not exceed $1,000. Total prizes resulting from any single spin of a paddle
wheel, or from any single seal of a tip board, each tip board limited to a single
seal, or from a single pull tab (or ticket jar), shall not exceed $150. Total prizes
awarded in any calendar year by any organization from the operation of paddle
wheels, tip boards and pull tabs (or ticket jars) and the conduct of raffles, except
as provided in clause (b) of this subdivision shall not exceed $35,000. Merchandise
prizes shall be valued at fair market retail value.
(b) (1) An organization which directly or under contract
to the state or a political subdivision delivers health or social services and. which
is exempt from taxation pursuant to section 50l(c)(3) of the Internal Revenue
Code of 1954, as amended through December 30, 1991, may award prizes in a calendar
year from the conduct of raffles, in excess of the limitation provided in this section,
provided the prizes consist of real or personal property donated to the organization
by an individual, corporation, or other organization and, except as provided in
clause (2), provided the organization complies with the other requirements and
restrictions of this ordinance.
(2) For the purposes of this subdivision, an organization
covered by clause (1) is not subject to the membership limitations nor to the compensation
limitations of this ordinance.
Subd. 12. Termination Provision. This Sec. 5.40 shall terminate and
cease to be effective on December 31, 198 6, unless prior thereto the Council
shall adopt an ordinance amending this Sec. 5.40 to extend its effective duration
beyond such termination date. Any and all permits, licenses, privileges or rights
of whatever nature issued, extended or granted in any manner by virtue of this
section will terminate and become void on the date this section terminates.
Section 2. City Code Chapter 1 entitled "General Provisions and Definitions
Applicable to the Entire City Code Including Penalty for Violation" and sections
5.01 through 5.11 and section 5.99 entitled "Violation a Misdemeanor" are hereby
adopted in their entirety, by reference, as though repeated verbatim herein.
Section 3. This ordinance shall become effective from and after its passage
and publication.
FIRST READ at a regular meeting of the City Council of the City of Eden
Prairie on the 1st day of February 198 3, and finally read and adopted and
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ordered published at a regular meeting of the City Council of said City on the
15th day of February , 198 3.
F
r Ma rED in the Eden Prairie News on the loth day of March , 198:3.,
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(Official Publication 29341
ORDINANCE NO.1.83
AN ORDINANCE OF THE CITY OF EDEN
PRAIRIE, MINNESOTA, AMENDING CITY
CODE CHAPTER 5 BY ADDING THERETO SEC-
TION 5.40 RELATING: TO 173E REGULATION.
lPPVNSING AND USE.OF GAMBLING DEVICES,
ADOPTING BY REFERENCE CITY CODE
TER I AND SECTIONS 5,01 THROUGH 5.11
A. ) SECTION 5.99 WHICH. AMONG OTHER TIIINGS,CONTAIN PENALTY PROVISIONS, Affidavit of Publication
THE CITY COUNCIL OF EVEN PRAIRIE,MIN-
A'ESOTA,ORDAINS:
Suction 1. City Code Chapter 5 shall to and is
amended by adding thereto Sec.5.40 which reads as
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