HomeMy WebLinkAboutOrdinance 602 - Gambling
CHAPTER VI – GENERAL REGULATIONS
ORDINANCE 602 GAMBLING ....................................................................................... 602-1
Section 602.01: PURPOSE ......................................................................................... 602-1
Section 602.02: DEFINITIONS .................................................................................. 602-1
Section 602.03: PROVISIONS OF STATE LAW ADOPTED .................................... 602-1
Section 602.04: INVESTIGATION FEE .................................................................... 602-1
Section 602.05: PERMIT CRITERIA ......................................................................... 602-1
Section 602.06: FILING OF RECORDS; INSPECTION; ACCESS TO RECORDS ... 602-2
Section 602.07: EXPENDITURE OF PROCEEDS/LOCAL BENEFITS .................... 602-2
Section 602.08: PENALTIES ..................................................................................... 602-3
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CHAPTER VI – GENERAL REGULATIONS
ORDINANCE 602 GAMBLING
Section 602.01: PURPOSE. The purpose of this section is to regulate and control the
conduct of lawful gambling in the City of St. Joseph and to ensure the integrity of operations,
and provide for the use of net profits for lawful purposes by setting criteria and standards related
to the approval or disapproval of premise permits.
Section 602.02: DEFINITIONS: Except as otherwise provided in this section, the terms
defined in Minnesota Statutes, Chapter 349, are incorporated herein by reference and shall be
applicable to the provisions contained herein.
Subd. 1: Gross Profit: “Gross Profit” means the gross receipts collected from lawful
gambling, less reasonable sums necessary and actually expended for prizes.
Subd. 2: Net Profit: “Net Profit” means gross profit less reasonable sums actually
expended for allowable expenses.
Section 602.03: PROVISIONS OF STATE LAW ADOPTED: The provisions of
Minnesota Statutes Chapter 349, relating to the definition of terms, licensing, regulation,
investigation and enforcement of bingo, gambling devices and video games, and all other matters
pertaining thereto, are adopted and made a part of this ordinance as if set out in full.
Section 602.04: INVESTIGATION FEE: Any organization applying for a charitable
gambling license, or renewing a license, shall pay an investigation fee in the amount as set by the
City Council.
Section 602.05: PERMIT CRITERIA: Each pending application for issuance or renewal
of a premise permit shall be approved or disapproved by resolution of the City Council within
sixty (60) days after receipt of the application. In approving the application, the City must
determine whether or not the benefit that the lawful use of the charitable gambling funds brings
to the local community is broad based or for the benefit of needy non-members of the
organization, as opposed to aiding a very small number of individuals who are also members of
the organization. The City may disapprove an application for issuance or renewal of a premise
permit for any of the following reasons:
Subd. 1: Violation by the gambling organization of any statute, ordinance or rule relating
to gambling;
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CHAPTER VI – GENERAL REGULATIONS
Subd. 2: Violation by the on-sale establishment, or other organization leasing its premise
for gambling, of any statute, ordinance or rule relating to the operation of the establishment,
including but not limited to, laws relating to alcoholic beverages, gambling, controlled
substances, suppression of vice and protection of public safety;
Subd. 3: Failure by the gambling organization to make adequate corrections in its
organizational structure and procedures in response to an audit report.
Subd. 4: Where the operations of gambling at the site would be detrimental to health,
safety or welfare; or
Subd. 5: The benefit that the lawful use of charitable gambling funds brings to the local
community is not broad based.
Subd. 6: The application has not been submitted in a timely fashion and not all the
required information has been submitted.
Subd. 7: The organization has not been cooperative with respect to past investigations.
Section 602.06: FILING OF RECORDS; INSPECTION; ACCESS TO RECORDS.
Subd. 1: Every organization licensed to conduct gambling in the City of St. Joseph shall
file with the City Clerk, on a quarterly basis, copies of all records and reports required to be filed
with the Minnesota Gambling Control Board and Department of Revenue pursuant to Minnesota
Statutes, Chapter 349 and the rules and regulations promulgated there under.
Subd. 2: Each organization licensed to conduct lawful gambling in the City of St. Joseph
shall submit any additional information requested by the City.
Subd. 3: Any organization leasing premises for the conducting of lawful gambling shall
file with the City a copy of the lease within one (1) week after execution of the lease.
Subd. 4: Every gambling event in the City of St. Joseph conducted by an organization
under State license shall be open to inspection by officers of the City.
Subd. 5: The City may inspect, at any reasonable time without notice or search warrant,
all records of a licensed organization that are required to be maintained by the State Gambling
Control Board.
Section 602.07: EXPENDITURE OF PROCEEDS/LOCAL BENEFITS. Each
organization conducting lawful gambling within the City of St. Joseph shall annually expend at
least ten percent (10%) of its net proceeds from gambling within the trade area of the City of St.
Joseph in a manner which provides a broad based benefit or benefits non-members of the
organization. The “trade area” is defined as an area within fifteen (15) miles of the City limits.
The expenditure shall be managed as follows:
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CHAPTER VI – GENERAL REGULATIONS
Subd. 1: No later than January 31 of each calendar year each organization shall be
responsible for providing a summary illustrating that ten percent (10%) of the net proceeds have
been expended within the City of St. Joseph meeting the criteria stated in 602.05, reaching a
broad base. If the expenditures for the calendar year do not meet the 10% or criteria, the
organization shall contribute the difference to the City of St. Joseph no later than February 15 of
each calendar year.
Subd. 2: Any money remitted to the City shall be held in a special fund conforming to
the requirements of Minnesota Statutes Section 349.213.
Section 602.08: PENALTIES. In addition to the penalties set forth in the Statutes, any
violation of Minnesota Statute Chapter 349, as herein adopted shall constitute a violation of this
Ordinance and shall be punishable as a misdemeanor.
Ordinance 602 amended 5/19/05
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