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HomeMy WebLinkAbout0585 Ord (Amend Gambling)ORDINANCE NO. 585 AN ORDINANCE LICENSING AND REGULATING THE CONDUCT OF GAMBLING, THE CITY COUNCIL OF THE CITY OF ST£LLWATER DOES ORDAIN: Section 1. Section 5208, Chapter 52, adopted February 12, 1980,of the Stillwater City Code is hereby repealed. Section 2. A new Section 52.W of the Stillwater City Code is hereby enacted as.. follows: Subdivision 1. Purpose. The purpose of this ordinance is to closely regulate and control the conduct of. gamblin. Subd. 2. Provisions of State Law Adopted. The provisions of Minnesota Statutes, Chapters 325.54, 349, 609.75, 609.76 and Laws of Minnesota, 1978,1':Chapter ,507, relating to the definition of terms, licensing, and restrictions of gambling are adopted. Subd. 3. Gambling Device; Possession of. The intentional possession of wilful keeping of a gambling device upon any licensed premises is cause for the revocation of any license under which the :licensed business is carried on upon the premises where: the gambling device is found, provided that possession of thee: gambling devices commonly known as "paddlewheels" or "tipboards orapparatus used in conducting raffles on the premises; of a non-profit organization and operated by organizations licensed for such creration pursuant to this ordinance shall not be cause for therevocation of a license. Subd. 4. Restrictions. Every licensee shall be responsible .for -the conduct of his place of business and for conditions of sobriety and order therein. No license shall keep, possess, or operate, or permit the keeping, possession, or operation of, en the licensed premises, or in any room adjoining the licensed'. premises,any slot machine, dice, or any gambling device or, apparatus,'''... norpermit any gambling therein, nor permit the licensed premises or any room in thel same, or in any adjoining building, directly or indirectly under its control ,to be used as a resort for prostitutes or other disorderly persons, except that gambling devices may be kept or operated and raffles conducted.:. on licensed premises and adjoining rooms when such activities are licensed. premisesand adjoining rooms when such activities are licensed by this City;. Council.`: No person under 18 years of age shall be employed in anyrooms con- stituting the place in which intoxicating liquors are sold at retail "on -sale" musicians or to perform theduties of a busboyor dishwashing services in places defined as a restaurant or hotel or motel serving food on rooms in which intoxicating liquorsare sold at retail "on -sale". Subd. 5. Gambling devices. (1) For the purposes of this section the terms defined in this section have the meanings given them. (2) "Gambling devices" mean those gambling devices known as "paddlewheels" or "tipboards", or apparatus used in conducting raffles. (3) "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 indicated winning chances. (4) "Tipboard" means a board, placard or other device measuring at least 12 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. (5) chanceeatmaans a prizegae wiin ththehich a participant n winnerdetemied[bybys a arandomcket for a drawing. (6) "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 meaintenance costs for the devices. (7) "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. (continued on page 486) 486 ORDINANCE NO. 585 - continued (8) Nothing in this section shall he construed to authorize any use, possession or operation of: Any gambling device which is activated by the insertion of a coin or token; or 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. Slot machines, roulette wheels, punchboards and pinball machines which return coins or slugs, chips or tokens of any kind, which are redeemable in merchandise or cash. Subd. 6. License Fees. (1) Fees. The annual fee for a paddlewheel shall be $25.00; fee for a tipboard shall be $25.00; and the annual fee shall be $25.00. (2) Application procedure. Application for a license shall a form prescribed by the Council. No person shall make representation in an application. The Council shall act application within 180 days from the date of application the annual for a raffle be made upon a false upon said Subd. 7. Persons Eligible For A License. Licenses shall be issued only to a faternal, religious, veterans or other non-profit organization which has been in existence for at least three years and has at least 30 active members. The following may be eligible for a gambling license: "Any corporation, fund, foundation, trust or assodation 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 of America, 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 assodation inures to the benefit of any private member, stockhdder, or individual; or any clubs organized and operated exclusively for pleasure, recreational, or other non-profitable purposes, no part of the net income of which inures to the benefit of any private member stockholder, or individual." Subd. 8. Profits. Profits from the oepration 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. "Lawful purpose" means one or more of the following: (a) benefiting persons by enhancing their opportunity for religious or educational advancement, be relieving or protecting them from disease, suffering or distress, by contributing to their physical well-being, by assist - in 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; (b) initiating, perform- ing, or fostering worthy public works or enabling or furthering the erection or maintenance of public structures; (c) lessening the burdens borne by government or voluntarily supporting, augumenting or supplement- ing services which government would normally render to the people; or (d) the improving expanding, maintaining or repairing real property owned or leased by an organizationl "Lawful purposes" 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." Subd. 9. Conduct of Gambling. (1) A11 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 be responsible for using profits for a lawful purpose. (2) Bond. The gambling manager shall provide a fidelity bond in the sum of $10,000.00 in favor of the organization conditioned on the faithful performance of his duties. This requirement may be waived upon showing proof of a blanket bond in the favor of the organization in which the designated gambling manager is included. Bond is hereby waived for an approved organization that conducts no more than three gambling occasions annually. (3) Qualifications of gambling manager. The gambling manager shall be an active member of the organization and shall qualify under state law. 3 CO • rw 487 ORDINANCE NO. 585 - continued Subd. 10. Compensation. No compensailm shall be paid to any person in connection raffle byawlicensed oorganization. peration of a gNoperson who is not annactivefinea mber of an organization or its auxiliary, or the spouse of an active member may participate in the organization' of a raffle. s operation of a gambling device or conduct Subd. 11. Reporting Requirements. (1) (a) Each organization licensed to operate gambling devices shall keep records 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 eor ach single gathering or occasion shall be documented with receipts other records d chasedit morserviceaornother reason forg the amount, adthe escrdeduction, ition oftahendpthe recipient. The distribution of profits shall be itemized as to payee, purpose, amount and date of payment. (b) Gross receipts from the operation of gambling devices and the conduct of raffles shall be segregaad from other revenues of the organization, in- cluding bingo gross receipts, and placed in a separate account. Each The person iwho organization fore gross separreceipts, expenses anate records of its dbprofiopts efrom n the operation of gambling devices or the conduct of raffles shall not be the same person who accounts for other revenues of the organization, except that such person may be the same person who accounts for bingo gross receipts, expenses and profits. (2) Each organization licensed to operate gambling devices or to conduct raffles shall report monthly to its membership, and to the licensing local unit of government, its gross receipts, expenses rofit offrorequired inthissubdivision dprofits sitemized as res ofhe distribution (3) Records required by this section shall be preserved for three years, and organizations shall make available their records relating to the operation of gambling devices and the conduct of raffles for public inspection st reasonable times and places. Subd. 12. Eligible Premises. Gambling devices shall be operated and raffles conducting by a licensed organization only upon on premises which it owns or leases, 'except that tickets for raffles may be sold off the premises. Leases shall 'e in writing and shall be for a specific period of time. No lease shall provide shall be filed with the City Clerk. that rental payments be based on a percentage of receipts. A copy of the lease Subd. 13. Prizes. Total prizes from the operation of paddlewheels and tip - boards 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 organization from the operation of paddlewheels and tip - boards and the conduct of raffles shall not exceed $15,000. Merchandise prizes shall be valued at fair market retail value. Subd. 14. Bingo. Nothing in this ordinance shall be construed to authorize the conduct of bingo during the operation of gambling devices without acquiring a separate bingo license. Subd. of any meanor15 Thisnsubdivisionoshallnnot precludersionciviloor hisf section lactionaundere other applicable law or preclude any agency of government from investigating or presecuting violations the provisions of this section. Subd. 16. Not Bets. The operation of a gambling devic:: or the conduct of a raffle as set out in this ordinance shall not be deemed a bet. Subd. 17. Suspension and Revocation. (1) Any license may be suspended or revoked for any violation of this ordinance. A license shall not be suspended or revoked until the procedural requirements of (2) have been complied with, provided that in cases where probably cause exists as to an ordinance violation, the city may temporarily suspend upon service of notice w of the hearing provided for in (2). Such temporary suspension shall not exceed two weeks. (continued on page 488) • • • 487 ORDINANCE NO. 585 - continued Subd. 10. Compensation. 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 of an active member may participate in the organization's operation of a gambling device or conduct of a raffle. Subd. 11. Reporting Requirements. (1) (a) Each organization licensed to operate gambling devices shall keep records 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 pur- chased 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. (b) Gross receipts from the operation of gambling devices and the conduct of raffles shall be segregatd from other revenues of the organization, in- cluding bingo gross receipts, and placed in a separate account. Each organization shall have separate records of its gambling operation. The person who accounts for gross receipts, expenses and profits from the operation of gambling devices or the conduct of raffles shall not be the same person who accounts for other revenues of the organization, except that such person may be the same person who accounts for bingo gross receipts, expenses and profits. (2) Each organization licensed to operate gambling devices or to conduct raffles shall report monthly to its membership, and to the licensing local unit of government, its gross receipts, expenses and profits from gambling devices or raffles, and the distribution of profits itemized as required in this subdivision. (3) Records required by this section shall be preserved for three years, and organizations shall make available their records relating to the operation of gambling devices and the conduct of raffles for public inspection st reasonable times and places. Subd. 12. Eligible Premises. Gambling devices shall be operated and raffles conducting by a licensed organization only upon premises which it owns or leases, 'except that tickets for raffles may be sold off the premises. Leases shall be in writing and shall be for a specific period of time. No lease shall provide that rental payments be based on a percentage of receipts. A copy of the lease shall be filed with the City Clerk. Subd. 13. Prizes. Total prizes from the operation of paddlewheels and tip - boards 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 organization from the operation of paddlewheels and tip boards and the conduct of raffles shall not exceed $15,000. Merchandise prizes shall be valued at fair market retail value. Subd. 14. Bingo. Nothing in this ordinance shall be construed to authorize the conduct of bingo during the operation of gambling devices without acquiring a separate bingo license. Subd. 15. Penalties. Violation of any provision of this section is a misde- meanor. This subdivision shall not preclude civil or criminal action under other applicable law or preclude any agency of government from investigating or presecuting violations the provisions of this section. Subd. 16. Not Bets. The operation of a gambling device or the conduct of a raffle as set out in this ordinance shall not be deemed a bet. Subd. 17. Suspension and Revocation. Any license may be suspended or revoked for any violation of this ordinance. A license shall not be suspended or revoked until the procedural requirements of (2) have been complied with, provided that in cases where probably cause exists as to an ordinance violation, the city may temporarily suspend upon service of notice of the hearing provided for in (2). Such temporary suspension shall not exceed two weeks. (1) p (continued on page 488) ORDINANCE N0. 585 - continued e • (2) Procedure. forsaall not hearingbe havevoked firstunder (1) been given to the notice the licensee. The notice shall be personally served and shall state the ordinance provision reasonably believed to be violated. The notice shall also state that the license may demand a hearing on the matter, in which case the license will not be suspended until after the hearing is held. If the licensee requests a hearing one shall be held on the matter by the council at least one week after the date on which the request is made. If as a result of the hearing, the council finds that an ordinance violation exists, then the council may suspend or terminate the license. Section 3. This ordinance shall be in force and effect from and after its passage and publication. Adopted by the City Council of the City of Stillwater this 6th day of June, 1980. Published: June 9, 1980 Mayor Attest: K-5 �+•� City Clerk 3 Das • •