VII.4. Resolution Amending Legislative Policy 4-A – Lawful Gambling Policy; DomeierMay 15, 2018 Council Report 2018-060
Resolution Amending Legislative Policy 4-A
Lawful Gambling Policy
Proposed Action
Staff recommends adoption of the following motion: Motion that the Hopkins City Council adopt
Resolution 2018-048 Amending Legislative Policy 4-A Lawful Gambling Policy.
Approval of this motion will revise City Policy 4-A on the regulation of lawful gambling.
Overview
Bob Byer, Owner of Mainstreet Bar & Grill on behalf of the Hopkins Youth Hockey Association
(HYHA) has submitted a request to amend the current City policy regulating bar bingo. HYHA
requested that the policy be amended so that organizations may conduct (paper) bingo at premises
they do not own. Currently, Legislative Policy 4-A states that a permit or license to conduct bingo
will only be approved for an organization that is licensed pursuant to Minnesota Statute, Section
359.15, and that conducts lawful gambling on premises that it owns and operates. This section
shall not apply to the use of electronic bingo devices as defined in Minnesota Statues, Section
349.12.
The City Council discussed the request at their April 10, 2018 Work S ession. They generally
supported moving forward with the amendment but wanted civic organizations to have the
opportunity to provide feedback. A letter outlining the proposed policy change was sent to the
local gambling managers, lease holders and organizations that have charitable gambling on May
4.
The proposed policy changes have been reviewed by the City Attorney.
Primary Issues to Consider:
State law allows organizations to conduct (paper) bingo at premises that are owned or leased.
Legislative Polices require City Council approval.
Supporting Information:
Resolution 2018-060
Revised Policy 4-A Lawful Gambling Policy
Request from Bob Byer on behalf of HYHA
Amy Domeier, City Clerk
Financial Impact: $__________Budgeted: Y/N _______ Source: ________________
Related Documents (CIP, ERP, etc.): _______________________________________
Notes: _______________________________________________________________
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2018-048
REVISING LEGISLATIVE POLICY 4-A – LAWFUL GAMBLINGPOLICY
WHEREAS, the City Council of the City of Hopkins has approved a document entitled the
Legislative Policy Manual to provide uniform guidelines on City policies so that actions taken are
consistent and fair; and
WHEREAS, the City Council of the City of Hopkins has established Legislative Policy 4-A in
order to set forth procedures to be followed by organizations that conduct lawful gambling within
the City limits; and
WHEREAS, the City Council of the City of Hopkins has determined the existing policy needs to
be revised to update the regulations for conducting bingo.
NOW THERFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby
adopts the revisions to Legislative Policy 4-A Lawful Gambling Policy as proposed in Council
Report CR2018-034.
Adopted by the City Council of the City of Hopkins this 15th day of March, 2018.
By: __________________________
Molly Cummings, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk
Legislative Policy Manual -- Chapter 4-C 1
POLICY 4-A
LAWFUL GAMBLING
1. PURPOSE
1.01 The purpose of this policy is to establish rules and procedures for lawful gambling in the
City of Hopkins, to prevent its commercialization, to ensure the integrity of operations, and
to provide for the use of net profits only for lawful purposes.
2. REGULATIONS
2.01 Except as otherwise enumerated herein, the provisions of Minnesota Statute Chapter 349
relating to the definition of terms, conditions of operations, provisions relating to sales,
licensing and restrictions of gambling are adopted and made a part of the statement of
policy promulgated by the City of Hopkins as if set out in full. The Council is authorized
by the provisions of Minn. Stat Section 349.213, as it may be amended from time to time,
to impose, and has imposed in this policy, additional restrictions on gambling within its
limits beyond those contained in Minn. Stat. Chapter 349, as it may be amended from time
to time.
2.02 An applicant for a license shall be a registered Minnesota nonprofit corporation or an
organization which is designated as exempt from the payment of income taxes by the
Internal Revenue Code and has its principal or registered office, street address and zip code
within the City of Hopkins.
2.03 The organization defined in Section 2.02 must be engaged in its primary activities for the
benefit of the community within the City of Hopkins for at least five years on a perpetual,
continuous, uninterrupted basis and have at least 30 active members as defined in
Minnesota Statute Chapter 349.
2.04 Gambling allowed by the city shall be carried on only within premises owned, occupied or
leased by the organization except such activities permissible under M.S. 349.166.
2.05 No application for a premises permit will be approved for any organization to conduct
gambling on any premises other than the premises of an on-sale liquor licensee or the
premises of a fraternal, veterans or other non-profit organization. Notwithstanding any
other ordinance, statute or policy provision, no form of lawful gambling will be permitted
at any location which holds an on-sale brewer taproom license pursuant to the Hopkins
Code of Ordinances. In order for a fraternal, Veterans, or other non-profit organization to
conduct gambling on their premises, such premises must have been continuously owned
and occupied for a period of at least five years. No application for premises permit shall be
approved for any organization for a site established for the primary purpose of conducting
gambling. This section shall not apply to any organization which is exempt from the
requirement for a gambling license according to M.S. 349.166.
2.06 A permit or license to conduct bingo will only be approved for an organization that is
licensed pursuant to Minnesota Statute, section 349.16, and that conducts lawful gambling
on premises that it owns and operates or leased. This section shall not apply to the use of
electronic bingo devices as defined in Minnesota Statute, section 349.12.
Legislative Policy Manual -- Chapter 4-C 2
2.07 Only one organization, as defined in Section 2.02, may conduct gambling within a single
owned, occupied or leased premise.
2.08 The operation of gambling devices and the conduct of bingo and raffles licensed or
approved pursuant to the authority granted to the City of Hopkins shall be carried on under
the supervision of a gambling manager designated by the organization. The gambling
manager shall be responsible for the operation of the gambling activity and the receipts and
profits generated from the operation.
2.09 The gambling manager shall be an active member of the organization issued the license
and shall qualify under state law.
2.10 Organizations seeking approval for a premises permit, that are not currently conducting
gambling in the City, must provide the City, in addition to the application forms, a copy of
the notice sent to the general membership announcing the meeting to authorize gambling
activities, and a copy of the minutes of a general membership meeting, where a quorum
was present, wherein the organization approved a motion authorizing the gambling
activities.
2.11 Participants in raffles, paddlewheels, pull tabs and tip boards shall be restricted to
individuals who have attained the legal drinking age. This restriction only applies to
premises where liquor, wine, beer or liquor or 3.2 beer is served. Where intoxicating
beverages are not served the age shall be eighteen.
2.12 Organizations wishing to renew a gambling license must provide the City with a financial
audit of its lawful gambling activities and funds for the previous two years. The audit(s)
must be performed by an independent accountant licensed by the state of Minnesota.
2.13 In addition, such organizations must provide the City with information on all expenditures
of lawful gambling funds during the previous two years. Such information must include at
a minimum the name of the recipient, the amount of the expenditure or contribution, and a
brief description of how the expenditure or contribution meets the definition of "lawful
purposes" as defined in M.S. 349.12. The City reserves the right to require additional
documentation from licensed organizations, or organizations seeking licenses, as it deems
necessary.
2.14 An investigation fee of $100.00 shall be charged to all organizations submitting a Premises
Permit Application or Applications for approval by the City.
2.15 The City shall receive 10% of net profits from organizations conducting gambling in leased
premises. (The City never adopted an ordinance enacting this provision as required by MN
Statute 349.213, Sub.1 (f) (2).)
Established 11/19/85 by Resolution 85-3218
Revised 10/5/1993
Revised 4/19/94
Revised 12/16/97
Revised 8/19/2003
Revised 3/5/2013
Revised 8/20/2013
City of Hopkins
To Whom it mat concern from the City of Hopkins:
Hopkins Youth Hockey Association would like to petition to change the Hopkins Ordinance prohibiting
the sale of Bingo cards and running Bar Bingo by organizations that do not own their building. This
ordinance is outdated and does not allow the bars in the City of Hopkins to compete with surrounding
communities. We are losing business in downtown Hopkins to neighboring cities that offer Bar Bingo.
We understand that the ordinance was put into effect to help the Legion and VFW and to not take
business away from those organizations. After many years of running pull tabs in the City of Hopkins,
HYHA knows that although there are some people that go between the VFW, Legion, Mainstreet Bar,
and Tuttles, the majority of the clientele do not. We do not think we will hinder business at the VFW or
Legion.
Hopkins Youth Hockey Charitable Gaming raises a lot of money for the youth of Hopkins as well as
donating to many other programs listed below:
Hopkins High School boys and girls hockey
Minneapolis Heart Institute Foundation
ICA Food Shelf
HYHA Hip-Check Hunger campaign
Empty Bowls
Stick it to Cancer
Hopkins Fire Department
Hopkins Police Department
Hopkins Rotary Club
Hopkins Area Little League
Glen Lake Mighty Mites Optimist Field Improvement Project
Burnes Park Improvement Project
Family Resource Center
Muscular Dystrophy Association
Friends of the Hopkins Library
Hopkins Education Foundation
Hopkins Raspberry Festival
Fraser House - Hopkins Court
Sojourner Project
West Suburban Alano Society
Move Forward, formerly Teens Alone
Omegon Inc.
Ronald McDonald House
Children's Cancer Research Fund
Rein in Sarcoma
Suicide Awareness Voices for Education
Play Laugh Love!
HYHA urges the City of Hopkins to consider that changing this ordinance would bring business into the
City. This, in turn, will increase the bottom line for the bars, for Hopkins Youth Hockey, the many other
charities we donate to, and the tax revenue collected by the city and the state,
Angela Quale, Gambling Manager, Hopkins Hockey Association
I would just like to add to this request by Angie and say I would like our establishment to have the same
opportunity other communities have in presenting a Bingo game run by their sponsoring charity. I am
sure these other communities have their American Legions and VFW’s. I’d also like to add we do our
share in donating to these local charities. Therefore, I would encourage this outdated ordinance be
removed from the City of Hopkins,
Best Regards,
Bob Byer, owner
Mainstreet Bar & Grill