CR2013-083 Approve Resolution Amending Legislative Policy 4-A Lawful Gambling PolicyAugust 20, 2013
Council Report 2013-083
APPROVE RESOLUTION AMENDING LEGISLATIVE
POLICY 4-A LAWFUL GAMBLING POLICY
Staff recommends approval of the following motion: Move to adopt Resolution No. 2013-048
amendin the h�gislative Policy 4-A Lawful Gambling Policy.
Approval of this motion will amend the Legislative Policy concerning Lawful Gambling in the
City of Hopkins.
Overview
On August 5, 2013, the Hopkins City Council approved the second reading of an ordinance
amending section 1200 of the Hopkins City Code which adds an on -sale brewer taproom license
to the code. At this meeting, Council discussed whether charitable gambling should be allowed
at an on -sale brewer taproom. Council consensus was to not allow it. Staff recommended that
the Legislative Policy for Lawful Gambling could be amended to not allow charitable gambling
in a brewer taproom.
Primary Issues to Consider
• Does the City Council wish to amend the Legislative Policy 4-A to not allow charitable
gambling in a Brewer Taproom establishment?
SuRUorting Information
• Excerpt from the Unapproved City Council Minutes of August 5, 2013
• Resolution 2013-013
• Legislative Policy 4-A, with revisions shown
Kristine A. Luedke, City Clerk
Council Report 2013-083
Page 2
Background
Staff consulted the City Attorney in regards to the policy change; he stated that according to
Minnesota Statute 349.213 a home rule charter city can be more restrictive regarding lawful
gambling than what the state provisions are. He recommended that the following language be
inserted as the second sentence of section 2.05 of the Legislative policy manual regarding
gambling: "Notwithstanding any other ordinance, statute or policy provision, no form of lawful
gambling will be permitted at any location which holds an on -sales brewer taproom license
pursuant to the Hopkins Code of Ordinances."
Alternatives
1. Approve Resolution No. 2013-048.
2. Continue the item for additional information.
3. Do neither with no action on this item.
Staff recommends alternative one.
Council Report 2013-083
Page 3
Except from the Unapproved City Council Minutes of August 5, 2013
II. CONSENT AGENDA
4. Second Reading of Ordinance 2013-1063 Amending Section 1200 of Hopkins City Code; (Memo)
Ms. Luedke addressed Council regarding consent item #4. There was Council discussion regarding
charitable gambling in brewer taprooms. Council consensus is not to allow charitable gambling in the
brewer taprooms. Ms. Luedke stated the Legislative Policy for Lawful Gambling could be amended to
not allow charitable gambling in a brewer taproom. She will bring a resolution reflecting this amendment
back to Council for their review.
Council Member Youakim moved and Council Member Gadd seconded a motion to approve the Consent
Agenda. A poll of the vote was as follows: Council Member Cummings, aye; Council Member Gadd,
aye; Council Member Halverson, aye; Council Member Youakim, aye; Mayor Maxwell, aye. The motion
carried unanimously.
CITY OF HOPKINS HENNEPIN
COUNTY, MINNESOTA
RESOUTION 2013-048
RESOLUTION APPROVING AMENDMENT TO
LEGISLATIVE POLICY 4-A LAWFUL GAMBLING
WHEREAS, the City of Hopkins has approved a document entitled "The Legislative
Policy Manual" to perform uniform guidelines and City policy so that actions taken are
consistent and fair; and
WHEREAS, the City Council has established Legislative Policy 4-A in order to regulate
lawful gambling; and
WHEREAS, the City Council approved Ordinance No. 2013-1063 amending section
1200 of the Hopkins City Code adding an on -sale brewer taproom license; and
WHEREAS, the City Council has determined that the Legislative Policy 4-A Lawful
Gambling section 2.05 should be amended to not allow charitable gambling in an establishment
which holds an on -sale brewer taproom license; and
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins
hereby adopts the following amendments to the Legislative Policy 4-A, Lawful Gambling
section 2.05 to read:
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 lawfulag mbling will be permitted
at any location which holds an on -sale brewer taproom license pursuant to the Hopkins
Code of Ordinances. In order for 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.
EFFECTIVE DATE: This amendment will go into effect on August 20, 2013.
Adopted by the City Council of the City of Hopkins this 201" day of August, 2013.
.2
ATTEST:
Kristine A. Luedke, City Clerk
Eugene J. Maxwell, Mayor
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.
2. REGULATIONS
2.01 Except as otherwise enumerated herein, the provisions of Minnesota Statute Chapter 349
relating to the definition of terms, 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.
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 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. This section shall not apply to the use of
electronic bingo devices as defined in Minnesota Statute, section 349.12.
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, Subd.l (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