HomeMy WebLinkAbout2016-313 Regulating Lawful GamblingCity of Corcoran
County of Hennepin
State of Minnesota
ORDINANCE NO. 2016 -313
Motion By: Thomas
Seconded By: LaFave
AN ORDINANCE REGULATING LAWFUL GAMBLING
THE CORCORAN CITY COUNCIL ORDAINS AS FOLLOWS:
Chapter 116 is established to read as follows.
Chapter 116: Lawful Gambling
January14, 2016
116.01: Purpose
The City of Corcoran desires to regulate gambling within its jurisdiction, pursuant
to its authority granted by Minnesota Statutes, Chapter 349, and exercise its right to
impose additional restrictions on gambling within the City, in order to ensure integrity of
operations, and to provide for the use of net profits only for lawful purposes.
116.02: Provisions of State Law Adopted
The provisions of Minnesota Statutes, Chapter 349, as it shall be amended from
time to time, are hereby adopted and made a part of this Ordinance as if set out in full.
116.03: Permit Required, Eligibility
No person, otherwise exempt from licensing by the Gambling Control Board
pursuant to Minnesota Statutes Section 349.166, shall conduct lawful gambling within
the City without first obtaining a permit to do so under this Chapter of the City Code.
Eligible applicant organizations for such a permit must meet all of the following
requirements:
1. An eligible organization must meet all of the qualifications of Minnesota
Statute Section 349.16, subd. 2; and
2. An applicant organization must be a religious, fraternal, veterans, or other
non - profit organization which conducts the lawful gambling exclusively on the
premises owned or leased by the organization; and
3. All of the organization's owners, managers, employees, agents, or interested
parties are free of felony convictions, convictions of a crime involving
gambling, and other convictions for offenses which relate directly to such
person's ability, capacity, or fitness to perform the duties and discharge the
responsibilities of the gambling activities contemplated; and
4. An organization, along with any of its owners, managers, employees, agents,
or interested parties must not have been denied licensure or had a license
revoked, cancelled, or suspended by the Gambling Control Board or any
municipality within one year prior to making the application; and
5. An organization's proposal must be consistent with the City's comprehensive
development plan and must not have an unreasonably detrimental effect
upon other persons or properties in the vicinity of the organization; and
City of Corcoran
County of Hennepin
State of Minnesota
ORDINANCE NO. 2016 -313
January14, 2016
6. An eligible organization and all of the organization's owners, managers,
employees, agents, or interested parties must not owe delinquent local, state,
or federal taxes, and may not be delinquent on any other City bill; and
7. An organization must have fully, truthfully, and accurately completed and
submitted a valid application for a permit under this Chapter made on the
forms provided by the city clerk and paid all applicable fees, as determined
from time to time by separate resolution, to the City.
116.04: Premises Permit, City Approval Required
An applicant, not exempt under Minnesota Statute Section 349.166, seeking to
conduct lawful gambling within the City must obtain a valid premises permit from the
Gambling Control Board with a resolution from the City Council approving the premises
permit. The owner of the premises for which a premises permit is sought must comply
with all the requirements of Minnesota Statute Section 349.18 in renting or using the
premises for lawful gambling.
116.05: Premises Permit, Conditions Determining Approval or Disapproval
In determining whether to approve or disapprove a premises permit or renewal of
the same, the City Council shall review all of the considerations outlined in Section
116.03 of this Chapter and any other relevant considerations. An eligible applicant for
approval of a premises permit must also maintain its headquarters or business office
within the City's trade area and have maintained the same in that location for at least
two years prior to the date of the application. The City's trade area shall be defined as
the City of Corcoran and each city contiguous to the City of Corcoran. An eligible
applicant must also maintain at least 15 active members, as defined by Minnesota
Statute Section 349.12, subd. 2, who are residents of the City's trade area each
pending application for a premises permit or renewal of the same shall be approved or
disapproved by resolution of the City Council within 60 days of receipt of a complete
application.
116.06: Local Investigation, Fee
The City may conduct an investigation prior to making a decision whether to
issue or renew or decline to issue or renew any permit pursuant to Sections 116.03 and
116.04. In the event of such an investigation, the City may collect an investigation fee
in an amount determined and amended from time to time by separate ordinance. As a
part of this investigation, an applicant for a permit pursuant to Sections 116.03 or
116.04 must cooperate fully with the City in supplying all information required in this
Chapter. Further, such an applicant and all of its owners, managers, employees,
agents, and interested parties also must consent to a criminal history and driver's
license check conducted by the chief of police or his /her designee. Failure of any
applicant or listed interested party to so consent shall result in a denial of the license
application.
City of Corcoran
County of Hennepin
State of Minnesota
ORDINANCE NO. 2016 -313
January14, 2016
116.07: Contribution of Net Profits
Any organization that is granted a permit to conduct lawful gambling within the
City pursuant to Sections 116.03 and 116.04 must contribute ten percent of the
organization's net profits derived from lawful gambling conducted at the premises within
the City's trade area to a fund administered and regulated by the City. This contribution
shall be made without costs to such fund and shall be for disbursement by the City of
the receipts for lawful purposes, or police, fire, and other emergency or public safety
related services, equipment and training, excluding pension obligations. For purposes
of this Section, net profits are gross profits less amounts expended for allowable
expenses and paid in taxes assessed on lawful gambling. Payments to the fund shall
be calculated annually following each fiscal year ending June 30. Annual payments
shall be submitted together with verifiable supporting documentation, not later than the
twentieth day of the month following the end of the annual period. Failure to comply
with this Section shall be grounds for revocation of a permit or permission granted
pursuant to Sections 116.03 and 116.04.
116.08: Trade Area Expenditures
Every organization conducting lawful gambling within the City shall expend a
minimum of fifty percent of its lawful purpose expenditures on lawful purposes
conducted or located within the trade area of the City, as defined in Section 116.05.
This Section shall apply only to lawful purpose expenditures of gross profits derived
from lawful gambling conducted at the premises within the City. Annually, every
organization conducting lawful gambling within the City must file with the City a report
documenting compliance with this Section. In addition, every organization must submit
a report to the City each July listing all lawful purpose expenditures from July 1 through
June 30 of the preceding year. Failure to comply with this Section shall be grounds for
revocation of a permit or permission granted pursuant to Sections 116.03 and 116.04.
116.09: One Organization Permitted Per Location
No organization conducting lawful gambling activities within the City may do so
simultaneously with another organization at the same location within the City.
116.10: Penalties, Suspension and Revocation Procedure
A violation of any of the provisions of this Chapter shall be a misdemeanor and
grounds for denial, suspension, or revocation of a permit issued under this Chapter.
Nothing in this Chapter shall preclude the City from enforcing this Ordinance by means
of any appropriate legal action. Prior to suspending or revoking a permit issued under
this Chapter, the City shall hold a hearing pursuant to Minnesota Statutes Chapter 14
(Administrative Procedure). The City shall serve notice of the hearing on the permit
holder either personally, on the person identified as the owner or responsible party in
the application for a permit or via United States first class mail, postage prepaid or by
United States registered or certified mail, postage prepaid, return receipt requested,
addressed with the last known address of the permit holder to whom notice is intended
City of Corcoran
County of Hennepin
State of Minnesota
ORDINANCE NO. 2016 -313
January14, 2016
to be given. After a hearing to take action on a permit, the City Council may suspend or
revoke the permit if the Council finds that probable cause exists as to a violation of this
Ordinance.
116.11: Reporting Requirement
Every organization permitted to conduct lawful gambling under this Ordinance or
for which the City has granted approval of a premises permit shall file with the city clerk
all records and reports which must be filed with the Gambling Control Board. The
records and reports must be filed with the city clerk at the same time that they are filed
with the Gambling Control Board. This reporting requirement remains an ongoing
obligation for all organizations which conduct lawful gambling activities within the City.
116.12: Severability
Every section, provision, or part of this ordinance is declared severable from
every other section, provision, or part to the extent that if any section, provision, or part
of the Ordinance shall be held to be invalid, such holding(s) shall not invalidate any
other section, provision, or part thereof.
116.13 Effective Date
Upon proper ratification by the City Council, this ordinance shall become effective
on March 1, 2016.
VOTING AYE
® Guenthner, Ken
® Keefe, Mike
® LaFave, Tonya
® Hank, Pat
® Thomas, Ron
VOTING NAY
❑ Guenthner, Ken
❑ Keefe, Mike
❑ LaFave, Tonya
❑ Hank, Pat
❑ Thomas, Ron
Whereupon, said Ordinance is hereby declared adopted on this 14"' day of January 2016.
Kenneth Guenthner - Mayor
ATTEST:
City Seal
essica Beise— City Clerk/Administrative Services Coordinator