Ordinance No. 0778 07-11-1983�
ORDINANCE N0. 778
AN ORDINANCE ADOPTING A NEW CHAPTER 31 OF THE FRIDLEY CITY CADE
E�PPI�ID ^GAMBLII`x� DES7ICP'.S"
The City Council of the City of Fridley does ordain as follaws:
31.01, !ara'r'x�n�.nn' OF P�LICY
The City of Fridley deens it desirable to establish a systen for the
licensing, regulation and control of gambling devices as authorized
by Minnesota Statute 349.26.
31.02.
When used in this Chapter, the following terms have the following
meanings:
1. Gambling Devices,
'il�ose gambling devices known as "paddle wheels," "tip boards,"
"ticket �ars," or "pull tabs" or apparatus used in conducting
raffles.
2. Paddle Wheel.
� 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 wirvung chances.
3. Tip Board.
A board, placard, or other device measuring at least twelve (12")
�,nches square, marked off on a grid or similar pattern, in which
each section contains a hidden number or numbers, or other symbol,
which determines the winning chances.
4. Raffle.
A game in which a gsrticipant buys a ticket for chance at a grize
with the winner determined by a random drawing.
5. Pull-takts and Ticket Jars.
A single folded or banded ticket or a card, the face of which is
initially covered, or otherwise hidden from view, to conceal a
nim�er or set of ninnbers or a symUol or a set of syn�ols. A few of
the ntmibers or symbols out of every set of pull-t�bs will have been
designated in advance and at randan as prize winners. A participant
pays a consideration to an operator for an opportunity to obtain a
folded or banded ticket or a card, view the rnm�bers or synil�ols on it
and possibly obtain a prizrwinning pull-tab.
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6, Profit.
The gross receipts from the operation of gambling devices and the
conduct of raffles, less reasonable s�nns expended for prizes� local
licensing fees, taxes and maintenance oostis for the devices.
7. Active Menber.
A member who has paid all of his dues to the organization and has
been a member of the organization for at least six (6) months.
31.03. LICINSE R�QUIRED
No person shall directly or indirectly operate a gambling device or
conduct a raffle without a license to do so as provided in this
Chapter,
31,04. PEE2�SONS ELIGIBLE EC)R LICINSE
A license shall be issued only to fraternal, relzgious, and veterans
organizatzons, or any corporation, fund foundation, trust, ot
association organized fox exclusively scientific, literary,
religious, charitable, educational, or artistic purposes, or for the
purpose of making contributions to or for the use of United States
of America, the State of Minnesota, or any of its political
subdivisions for exclusively public purposes, or to clubs organized
and operated exclusively for pleasure, recreation, other
nonprofitable purposes, no part of the net income of which inures to
the benefit of any private me�nber, stockholder, or individual. Such
organization must have been in existence for at least three (3)
years and shall have at least thirtp (30) active members.
31.05. LICINSE FEE(S) AL�ID LIC�ISE YEAR
74ie license fee�s) and the license year shall be as set forth in
Chapter 11 of the City Code.
31.06. APPLICATION
Application for a license shall he made to the City Clerk on such
forms as the Clerk may from time to time provide. No person shall
make a false representation in an application. The City Council
shall act upon said application within 180 days from the date o£
application, but shall not issue a license until at least 30 days
after the date of application.
31.07. PROFITS
Profits from the operatl on of qambling devices or the conduct of
raffles shall be used soley for lawful purposes and as authorized at
a xegular meeting of the organizatson. "Lawful purpose" means one
or more of the follaaing:
1. Benefiting persons by enhancing their opportunity for religious
or educational advancement, by relieving or protecting them from
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LIC�ISE
II,IGIBILITY
LICII�ISE FEE(S)
.�ID LICINSE YEAR
APPLICATION
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disease, suffering, or distress, by contributing to their physical
� well-beinq, l�y assisting them in establishing thenselves in life as
worthy and useful citizens, or by increasing their apprehension of
and devotion to the principle upon which this nata.on was founded.
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2. Initiating� performing, or fosteting worthy public works or
enabling or futhering the erection or maintenance of public
structures.
3. Lessening the burdens borne by government or voluntarily
supporting, augmenting, or supplementinq sexvices which government
should nornially rendet to the people.
4. The improving, expanding� maintaining, or repairing real
property vamed or leased by an organization, "Lawful purpose" does
not include the erection or acquisition of any real property, unless
the local unit of government specifically authorized the
expenditures after finding that the property will be used
exclusively for one or more of the purposes specified above.
31,08, DCx1ATI�7S
Gambling device(s) opetatozs shall be cequited to donate a minimum
of eight percent (S�j of their gross receipts to lawful purposes as
set forth in Section 31.07 of this Chapter.
31.09. C�LING MANAGER
1. Duties and responsibilities.
All operations 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 the 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 give a fidelity bond in the sum of
$10,000 in favor of the organization conditioned on the faithful
performance of his duties. Terms of the bond shall provide that
notice shall be given in writing to the City not less than thirty
(30) days prior to its cancellation. The City Council may waive the
bond requiranent by including a waiver provision in the license
issued to an organization, provided that a license containing such a
provision shall be granted only by unanimous vote.
3. Qualificat�.on,
A person may act as both gambling manager and bingo manager for a
single orqanization, but a gambling manager for a single
orgat�ization shall not act as either a gambling manager or a bingo
manager foz any other organization. A gambling manager for an
organization shall be an active menber of the organization.
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DpNATIONS
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4. Co¢npensation.
,� No compensation shall be paid to any pexson in connection with the
I operation of a gambling device or the conduct of a raffle by a
I licensed organizaton, No person who is not an active member of an
I organization, or its auxiliary, or the spouse or surviving spouse of
an active m�nber may partici�te in the organization's operation of
I a gambling device or conduct of a raffle.
� 5. Investigation.
� 7.here shall be a police irniestigation each time a gambling manager
� is appointed for the licensee. An investigation fee shall be paid
� as set forth in Chapter 11 of the City Code.
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31.10. REFORTIIVG RFXJOIRII�flS
1. Gross Receipts.
Each organization licensed to operate gambling devices shall keep
records of its gross receipts, expenses, and profits for each single
gathering or occasion at which gamhling devices are operated or a
raffle is conducted. All deductions from gross receipts for each
single gathering or organization shall be documented with receipts
or other records indicating the amount, a description of the
purchased itan ox device ot other reason for the deduction, and the
recipient, The disposition of profits shall be itemized as to
p3yee, purpose, amount, and date of payment.
2. Separation of funds.
Gross receipts from the operation of qambling devices and the
conduct o£ raffles shall be segregated from other revenues of the
organization, including binqo gross receipts, and placed in a
separate account. The person who accounts for gross receipts,
expenses, and profits from the operati on 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.
3. Monthly xeports.
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, Records requirecl by this Section shall be
preserved for three (3) 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.
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31.11. ELIGIBLE PRFI�IISFS
Gambling devices shall be operated and raffles conducted by a
licensed organization only upon premises which it owns or leases
except that tickets for raffles conducted in accordance with this
Chapter may be sold off the pranises, Leases shall be for a period
of not less than one (1) year and shall be in writing. No lease
shall provide that rental payments be based on the percentage of
receipts for profits from gambling devices or raffles. Copies of
all these shall be filed with the City Clerk.
31,12. PRIZFS
7.bta1 prizes from the operation of paddle wheels, tip boards, and
pull-tabs awarded in any single day in which they are operatecl shall
not e�tceed $1,000. 7bta1 prizes resulting from any single spin of a
paddle wheel, from any single tip board, or from any single pull-tab
shall not exceed $150. Total prizes awarded in any calendar yeat by
any organization from the operation of paddle wheels, tip boards,
and pull-tabs and the conduct of raffles shall not exceed $35,000.
Merchandise prizes shall be valued at their fair market retail
value,
31.13. BII�C'�O
Nothing in this Chapter shall be construed to authorize the conduct
of bingo without acquiring a separate bingo license under the
provisions of Chapter 29 of the Fridley City Code.
31.14. O'ISiIIt Gb1MBLING
Nothing in this Chapter shall be construed to authorize any use,
possession, or operation of:
1, Ariy gamblinq device which is activated by the insertion of a
coin or token.
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.
3. Any other gamblinq activities pzohibited by law.
31.15. REq(X'ATION OR SUSPESION OF LICEDISE
The City Councll shall have the power to suspend or revoke the
license issued to any organization for violations of any of the
regulations or terms of this ozdinance. The organization shall be
given twenty days notice and shall be qranted an opportunity to be
heard before such action is taken,
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II.IGIBLE
PRII�fISFS
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SUSPENSION OR
REVOCATION
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31.16, PIIV�LTY
Whcever does any act forbidden by this Chapter or omits or f ails to
do any act required by this Chapter shall be guilty of a misdemeanor
and is subject to all penalties provided for such violations under
the provision of Chapter 901 of the Fridley City Code.
31.17. SE{7ER�BILITY
Every section, provision or part of this Chapter is declared
separable from every other section, provision or part to the extent
that if any section, provision, or part of this Chapter shall be
held invalid, such holding shall not irnralidate any other section,
provision or part thereof.
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PASSID P,t�ID ADOPTID BY THE CITY ODUNCIL OF Z43E CITY OF FRIDLEY THIS 11TH DAY OF
JULY, 1983.
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l/l'�('�, �� L's•-� �-
WILLIAM J. - MAYOR
ATPESP:
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SIDNEY C. - CITY CLIItK
First Reading: Jime 20, 1983
Second Reading: July 11� 1983
Publish: July 20, 1983
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