96-394�L
A r.,���v p� o— 5 � � � 9� �o,���� F��e # 9 G. 3q'-�
Ordinance #
Green Sheet # 3 5 a a�
ORDINANCE
UNT PAUL, MINNESOTA
Re£erred To
�
Presented By
Committee: Date
An ordinance to amend Chapter 409 of the Saint Paul Legislative
Code peitaining to lawful gambling; adding raffles and making
amends for the use of pull-tab mechanicai dispensing devices.
THE COUNCIL OF THE CITY OF SAINT PAUL DOES ORDAIN:
Section 1
Section 409.21 of the Saint paul Legislative Code is hereby amended to read as follows:
"Sec.409.21. Pull-tabs and tipboards in bars by quali�ed charitable nonprofit
organizations.
(a) Permission of city council; endorsement; termination:
(1) On-sale licensees may request permission of the city council to permit qualified
charitable organizations to conduct lawful gambling in the form of
paddlewheels, pull-tabs, �'J,�s and tipboazds only on the licensed premises.
Applicafion for permission shall be made to the license inspector and payment
of the specified fee. If the application is granted, the license shall contain an
endorsement specifying this approval and the gambling endorsement may be
considered for renewal at the same time as the council may consider renewal of
the on-sale license.
(2) In the event the permission of any chazitable nonprofit organization to conduct
lauvfixl gambling on the licensed premises is terminated by the licensed
establishment on whose premises the organi�ation was conducting said
gambling, or in the event such organization terminates its lawful gambling as a
result of coercion, pressure or unreasonable or unlawful conduct by the licensee
or its employees, the on-sale licensee shall not be able to make application for
a gambling endorsement for a new charitable nonprofit organization to take the
place of the former organization until one (1) yeaz after disconrinuance of a11
gambling activity on the licensed premises by the former organization.
(b) Gambling endorsement regulations. Gambling endorsements on on-sale licenses
shall be subject to the following regulations which shall be deemed as a part of the
license, and failure of compliance may constitute grounds for adverse action as
prescribed in the Legislative Code:
�.Zo-Fq ��-3q�t
(1) Only charitable nonprofit organizations licensed by the State of Mitmesota to
operate paddlewheels, tipboards and pull-tabs may be allowed to sell
paddlewheel tickets, pull-tabs, ��;����, and tipboards on the licensed
premises. � �� �
(2) Use of the licensed premises shall be by means of a written lease agreement
between the licensee and the cl�aritable organization. The lease shall ���€�:;v�t�
. . . . . . : . : : . . . . . : : . . : : : . . > :
�;P r�i�se �"' `'i ; a copy shall be filed
:: :.::;::::,;:::€ P��::
with the �eease-�sgee� LIEP Director, and also a copy must be kept on the
premises and available for public inspection upon request. Leases shall be
governed by the following:
a. Ma�mum rent that may be chazged is one thousand dollazs ($1,000.00)
�._�,�.,, . ..:::.....::.:..�;_..., .,:.:..:,_:.,.,... :..,<:.<,...<...:.:::........
. ,.. ;
per month. ����ra��n€�;���.�a�z�a�x��z''���zr ;s��es��;t�t;:�e
�c�� cxit � 1��� � �e�s� s�� �6 €t�s��� ��t�s, �i�
• .. .....:.:.....: ; ._;. :...
��as�;agr�ie�;;sii��: �i�s;�as�tV�a�g�s�_ g�e�,#�� :�ia�I�
,.. ..... .. .. . . . ...... ... ... ....
�.. �; ria�;'r��tTSiir.s�ia���s� .
;.:...,..: _......
� :; .:... .: �..,:..,... ,. .... .
b. Rental payments may not be based on a percentage of proceeds from
gambling receipts.
a The licensee may not be reimbursed by the charitable organization for
any license or permit fees, and the only compensation which the
licensee may obtain from the charitable organization �� `=�n �'#1��
< .....:......:.•
a�au�i;t� fixed in the lease agreement.
�
' , P!addlewheel rickets, pull-tabs,
1�;� and tipboards sha11 neither be sold by employees of the
nor sold from the bar service azea.
€�. The construction and maintenance of the booth used by the charitable
organization shall be the sole responsibility of the charitable
organization.
�: The lease shall contain a provision permitting the licensee to terminate
the lease if the charitable organization is found guilty of any violation
of state or local gambling statutes, ordinances or rules and regulations.
(3) Only one (1) chazitable organization shall be pernutted to
3o-�q a�-3�y
. - - --- - - -- - -- -
: -- --- - -- -- - - - - - _ ----
�o
��
IZ
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
.:
� - -
��)
(H5) If readily perishable or potentially hazardous food, as defined in secrion 331.07
of the Legislafive Code, is awarded as a prize in any charitable gambling, the
storage and handling of such food sha11 be in compliance with all applicable
requirements of Chapter 331 of the Legislative Code. The licensee shall be
responsible for notifying the office of license, inspections and environmental
protection that food, whether readily perishable or potentially hazardous or not,
is being awarded as a prize in any charitable gambling taking place on the
licensed premises, using such form or forms as may be prescribed by such
office.
���
(c) Large charitable nonprofit organizations regulated.•
(1) Notwithstanding any other provision of law or of sections 409.21 and 409.22 of
this chapter, not more than five (5) chazitable nonprofit organizations wkrich
qualify as "large organizations" may be permitted to conduct lawful gambling
in the form of paddlewheels, pull-tabs, z'���s and tipboazds on licensed
premises after meeting all other requirements of Chapters 310 and 409 of the
Saint Paul Legislafive Code and of any other applicable statute, regulation or
ordinance. The term "large organization", for the purpose of this chapter, shall
mean and include any chazitable nonprofit organization which has the size and
resources, as well as the public acceptance and drawing power, sufficient to
dominate in the competition for licensed premises in which to conduct
charitable gambling so as to make it difficult or impossible for small charitable
nonprofit organizations to fmd suitable or desirable premises in which to raise
(�•y0�q `��-39L1
funds by charitable gambling. Any charitable nonprofit orgaui�ation whose
annual gross revenues for the immediately past fiscal or calendaz yeaz from all
sources are in excess of ten million dollazs ($10,000,000.00) or whose annual
management and administrative expenditures for its current budget year aze in
excess of three million dollazs ($3,000,000.00), or twenty-five (25) percent or
more of whose net profits from charitable gambling are or have been
distributed in at least three (3) of the last five (5) yeazs to another nonprofit or
charitable organization of which it is a local chapter or subsidiary, shall be
presumed to be a large corporation. The computation of the above dollaz
amounts shall be the total for both the charitable nonprofit organization in
question and any other such organi7ation, if such other organization:
(a) Has the power to appoint a majority of the governing body of the
organization in question;
(b) Has or exercises the authority to direct or control the work of the
officers or employees of the organization in question;
(c) Provides half or more of the gross revenues of the organization in
question; or
(d) Franchises or charters the organization in quesfion, or permits the
organization in question to use its name and/or organizational symbols
in the conduct of the fund-raising activities of the organization in
question.
(2) No endarsement to the on-sale license shall be granted to any on-sale licensee
for a large organization until thirry (30) days after the effective date of this
ordinance [Ordinance No. 17613]. If there are more than five (5) qualified
applicants for such endorsement, the council sha11 by motion set a future
regular council meeting date at which five (5) such applicants shall be selected
for the issuance of the liquor endorsements authorized herein. Such selection
sha11 be by lot in accordance with the procedures indicated in section
409.16(e)(2) (excepting the payment of the special issuance excise tas). Not
less than thirty (30) days after one (1) of such endorsements is revoked, denied
or lapses for any reason, the council may establish a date for random selection
among otherwise qualified applicants as provided above. If the number of
applicants at any time is equal to ar less than five (5) ar less than the number
needed to bring the total of such endorsements issued to five (5), then the
council may issue such endorsements in the regulaz manner.
(3) The large organizations authorized to operate in on-sale licensed premises as
provided for in this pazagraph (c) shall be required to comply with a11
applicable requirements of law and of sections 409.21 through 409.23,
. � ..:.y. ��::::: ......
including the payment of ten (10) percent of their net profits �vi�a�€i.t::�l��ti��ii�e
.. . ...::.. ......::...>. ,:.:
�i�i��e��;;�b;��s from selling paddlewheel tickets, pull-tabs, zaff��::£�cl�fs and
_.
.. ......:.. .. ........ , :
tipboards as provided by section 40922(11).
(4) The term °large organization" for the purpose of subsection (c) shall not
include a club as defined in section 409.02 of this chapter where such club has
an on-sale intoxicating liquor license issued under this chapter and the only
charitable gambling carried out on the licensed premises is operated by the club
i
��
� ������
Section 2
Section 409.22 of the Saint Paul Legislative Code is hereby amended
to read as follows:
"Sec. 409.22. Charitable gambling regulations.
The sale of paddlewheel tickets, pull-tabs, �a£.£;le-;:�z;c3�et?� and
tipboards in on-sale licensed premises shall be coriducte� only by
qualified and sate-licensed charitable organizations. In addition
to satisfying the qualifications set forth in Minnesota Statutes,
Chapter 349, the following regulations and qualifications must be
complied with by al1 such charitable organizations:
(1) Must have been in existence for three (3) years.
(2) Must file �3':?::�;�nua�<';;�iz?;��i��;a`3;,;?; with the �e
, .; :.> .......... .. ..: . °• . : ,..
3�rs�e2�e�-�'<i?���?; �l,x;���'t7s? : ...... .. . ....
,..,. .::..,. <.:
(3) Must file financial reports monthly with the �e
3�s�te� �I�1?>��33:'.3'�C:�`�i�.
�4-�- T" � � _�--- a qa '�' s�� ��ee�tee �� mer-e �h�� �h� � �
(�) Must exhibit and sell paddlewheel tickets, pull-tabs,
.,. ,..._�. . ,
�;a,��;l�z€:�a��3���;� and tipboards in a method as required by
. ..:,.,,.,.. ..,«�.<:.�,„.;-�:.>.>.<:s.,:� .. :
�he 3ree�r�e� ����`:�a;��te?r.
.. , <...;<-;�.;,.......�_ .. :.; ..�:,;:>.,,::...>,.>...
(6�) Shall not commingle game cards`s:�y:::Aa3;:t�:`:t��<<:-e�� :�i[�n`%;<?�:�
<;. ,:,,,,., , .:.:.:.:....... _,.,....:,.._:�,:.,.,..,.:.::.<...,.:,.:::�:,:.,�_�,>.���:,;:•,:.::..,.:::
�:7:�:'a.`o���:i�':d3:s���s��. .
...,..,..: .. _ . . ..,.:.:.,...::.:
,< : ..........:.. :.. . :.;<<,.�....>.: :..A:...:..,:. ...:: <
(�&) Shall pay employees in compliance with applicable state
and federal law, and any applicable rules and regulations
promulgated thereunder.
(&?) Shall comply with all provisions of Minnesota Statutes,
Chapter 349, and all orders issued by the state board
pursuant to section 349.172 hereof.
(38) Shall register with the state gambling board all
equipment and supplies used in a licensed on-sale liquor
establishment.
(�-9�) Shall post in a conspicuous place rules and regulations
� concerning charitable gambling as required by the �a
.
�-s�ee-�e�'.'�IE1?:;��i'����:t�r .
p �o�q ��-3�,�
(�99) Shall post in a conspicuous place rules and regulations concerning charitable
.. gambiing as required by the �ix�ee�ef:��p`;�efz�.
(�i€�) Shall pay to the Youth Program Fund, or to one (1) or more eligible recipients
on the list established pursuant to section 409.235, following the procedures
established therein, ten (10) percent of the monthly net profits from each Saint
Paul site at which charitable gambling operations are conducted from the sale
of paddlewheel tickets, pull-tabs, r��;�el�� and tipboazds.
(i�l_i3:) Shall eapend, in each calendar yeaz, at least seventy-five (75) percent or more
of its net proceeds from charitable gambling at Saint Paul locations to or for
purposes which benefit programs or activities occurring in the Saint Paul trade
area. Fifty-one (51) percent of the net proceeds from charitable gambling at
Saint Paul locations must be expended to directly benefit Saint Paul residents
who participate in such programs or activities. The "Saint Paul trade azea" is
defined as the City of Saint Paul and each city contiguous to Saint Paul.
Contributions to the Saint Paul Youth Fund under sections 409.23 and 409.235
of this chapter shall be presumed to benefit programs and activities wluch occur
in the Saint Paul trade area, and shall be presumed to direcfly benefit Saint
Paul residents who participate is such programs or activities.
-- -- • •- - - . .. - -- •- -- -- ••- - - -.. . -- --
Section 3
Section 409.235. of the Saint Paul Legislative Code is hereby amended to read as follows:
Sec. 409.235. Contributions to eligible recipients.
(a) Advisory board. The board shall be the Youth Program Fund Advisory Board
established pursuant to section 409.23 above.
(b) Eligible recipients list established. There is hereby established a list of
recipients eligible for distribution of proceeds contributed by charitable
gambling in on-sale liquor establishments as specified in this chapter, and in
private clubs and other places as provided in section 402.10 of these chapters.
The list of eligible recipients sha11 be promulgated annually by resolution by
the city council upon the advice and report of the boazd. Such list may be
amended from time to time by the city council to add or delete recipients. Such
list shall be maintained for public inspection in the office of the city clerk, and
shall be mailed quarterly to all organizations conducting chazitable gambling
within the Citv of Saint Paul bv the :: ���;t��
(c) Applicant qualifications for inclusion on list. Applicants sha11 be required to
apply annually and shall meet the following requirements in order to be
included on the list:
(1) Applicants for inclusion on the list must be incorporated, nonprofit
organizations formed solely for the purpose of serving Saint Pau] youth,
or having an incorporated, nonprofit organization, which provides
� �] �� � 3 �
programs far Saint Paul youth, as a fiscal agent. Booster clubs, which� C y
provide progtaxns for youth, organized for a recreation center will be
eligibie, but organizsd clubs, activities and teams of public or private
schools, will not be eligible. Evidence that an organization has been
recognized by the IRS as exempt from taYation pursuant to 26 U.S.C.
Section 501 or is using an organization so recognized as a fiscal agent
shall be accepted as proof that it is a nonprofit orgauization, but such
evidence is not the exclusive method of establishing nonprofit status.
(2) No other organizarion shall be eligible for inciusion on the list.
(d) Requirements for applications for inclusion on the list:
(1) Each applicant for inclusion on the list sha11 provide information setting
forth its stated purpose, number of participants served, area served and
the reasons why funds aze needed.
(2) The submitting organization must provide at the time of application:
a. Verification of nonprofit status and copy of organizational
bylaws.
b. List of current officers or directors.
c. Letter verifying organization's approval of the proposal and,
where necessary, letter verifying approval of the application and
proposal by the board of the fiscal agent.
d. Previous year's budget and fmancial statement.
e. Current balance sheet and income statement, if applicable.
f. Proposed budget (expenses and income) for the activity.
g. Evidence that insurance, if needed, can be obtained by the
organization.
h. Area served, number of participants served, and reasons why
funds aze needed.
The financial information must demonstrate that the majority of the
organization's funding is used far the benefit of the public in providing
youth programs for youth twenty (20) and under, at least seventy-�ve
(75) percent of whom are residents of the city.
(3) No organization operating charitable gambling in the State of Mimiesota
will be eligible for inclusion on the list.
(4) An organization formed, incorporated, operated or managed by the
members, officers or directors of any organization operating or
conducting lawful gambling, or subject to the requirements for
contributions under sections 409.22(1) or 402.10 of the Legislative
p. � a� q � c� -3q �
Code, or the ten (10) percent contribution requirement in this section,
sha11 not be an eligible recipient.
(5) An eligible recipient, as a condirion to continuation on the list, may not
engage in or operate charitable gambiing nor use any contributions
received as a result of its status as an eligible recipient for anythiug
other than a lawfui purpose. Each recipient as a condition of receipt of
contributions must execute the verified receipt and representations
required above.
(e) Contributions required. Organizations conducting charitable gambling within
the City of Saint Paul shall, to meet requirements imposed by law, including,
but not lixnited to, sections 40210 and 409.22(14) of the Saint Paul Legislative
Code, give ten (10) percent as required therein to one (1) or more eligible
recipients on the list promulgated by the city council or to the Youth Program
Fund established under section 409.23. All such contributions must go only to
eligible recipients on the list provided above. An organization cannot contribute
to any recipient not fiunishing the verified receipt as provided.
(fj Affidavit. Each eligible recipient shall annually, during the month of January,
file an affidavit with the Youth Program Fund manager, in which each officer
of the recipient shall state that the contributions wluch it received during the
previous calendar yeaz have been expended for a lawful purpose and state the
purpose, that all previous contributions, if any, have been expended for lawful
purposes, that the calendaz-yeaz total of contributions received as a result of its
status as an eligible recipient does not exceed the allowable amount under the
ordinance, that it does not operate any gambling activities, and that no such
contribution or any previous contribution will be or has been used for capital
expenses, salaries or travel expenses except as may be allowed herein.
(g) Limitations on award and use of funds. Funds may not be used for capitai
expenses, except as may be provided in administrative rules adopted by the
advisory board permitting use of funds for purchase or maintenance of capital
goods other than real property, nor for salaries or travel expenses, but may be
expended for an individual or team representing the city or state in the state or
national championship tournament in tUat sport or activity, or from the city
where such individual or team has qualified for the state or national
championship tournament in that sport or activity by competing in and winning
the championship of a toumament in the city or state; provided, that travel
expenses shall not be paid for any invitational tournament, qualifying
tournament or other tournament. The term "championship tournunent" means
that such tournament is sanctioned as such by the governing body of that sport
or activity. Funds may also be expended for reasonable bus rental for same-day
trips for special events or activities.
(h) Contribution of checks through the Zicense division. Notwithstanding any other
provision of law to the contrary, an organization conducting charitable
gambling sha11 make its contribution to an eligible recipient on the list by
sending its check for the amount to the license inspector. The license inspector
shall verify that the intended eligible recipient has complied with a11
requirements of this chapter and that the proposed contribution will not exceed
the allowable limits, nor be in excess of eight thousand dollazs ($8,000.00) for
�� � � � `l4 -3q `j
that calendar yeaz (as modified by the provisions of subpazagraph (e)(5) of
section 409.23 above concerning organizations in certain eligible azeas or
making certaiu demonstrafions). If all requirements of law have been safisfied,
the �ieease-i�sgee�e� �:�';;��� shall forcvazd such contribution to the
intended eligible recipient by mail.
(i) Alternate compliance. NotwitUstanding any provision of law to the contrary,
any organization conducting charitable gambling within the City of Saint Paul
may satisfy its obligations under pazagraph (e) above and sections 402.10 and
409.22(14) of the Code to give ten (10) percent of its net profits to eligible
recipients by, in lieu thereof, contributing such ten (10) percent to the Youth
Program Fund established under section 409.23 of the Code.
Section 4
These changes shall take effect and be in place thirty (30) days following their
passage, approval and publication.
��IAt �euen
'�c�' �.:�
BY � �� 0� � l
Approved by Mayor: Date � �� (
By: `�u� .��
Requested by Department of:
Ey:
Form Approved by City Attorney
� � %1� �D-��,
By: L�G�� i ,
�
Approved by Mayor for Submission to
Council
By:
Adopted by Council: Date
Adoption Certified by Council Se etary
�
OEFICE OF LIEP Date: 2/26/96 GREEN SHEET 4 �
N° 35222
William Gunther 266-9132 = 1 EPARTMENT DIRECTOR 4 ��rr coucrcxa
2 ITY ATTORNEY ITP R.E1iK
ust be on Cottncil Agenda by : ���ET DIRECTOR IN. 6 MGT. SVC. DIR.
SAP 3 OR (OR ASSISTANT7
OTAL � OF SIGNATIIRS PAGBS 1 (CLIP ALL LOCATIONS FOR SIGNATIIRE)
CTION REQIIESTED:
ordinance "to amend Chapter 409 of the Lagislative Code pertaining to lawPul
ambling; adding raffles and making amends for the use ofpull-tab mechanical
ispensing devices.
CA�4IENDATIONS: APPROVE (A) OR REJECT IR) BRSOtAL SffitViCB CONTRACES ]lIST ANSNER T� FOISOWSH6:
PLANNING CIXMIISSION _ CIVIL SERVICE COhA]ISSION 1. Has the person/firm ever worked under a contract for this department7
CIB COhII3ITTEE _ YES NO
STAFF _ Has this personJfirm eve[ been a City employee?
DISTRICT WURT � YES NO
3. Does this person/firm possess a ski11 not�normally possessed by any
UPPORTS WHICH COUNCIL OBJECTIVE? Current City employeeY
YES NO
aia all YBS anawera oa a aeparata aLeat and attaeh.
INITIATING PROBLEM, ISSUE, OPPORTUNITY (Who, What, When, Where, Why):
his will allow for the lawful operation of inechanical pull-tab dispensing
evices and will add raffles to the list of lawful gambling activities.
DVANTAGES IF APPROVED:
ill allow charitable groups to capitalize on a growing trend in lawful
ambling.
ISADVANTAGES IF APPROVED:
Increase in levels of lawful gambling in the City expected.
ISADVANTAGES IF NOT APPROVED:
ity establishments would be cut out of a growing niche in the provision of
lawful gambling which could put them at a disadvantage to other cities.
OTAL AMOUNT OF TRANSACTION S COST/REVENUE BUDGETED YES NO
FUNDING SOURCE ACTIVITY NUMBER
FINANCIAI, INFORMATION: (EXPLAIN)
� . �,� r�'�S��i z! � t�i�c'���:'•'
��� �. ! ���fi
j -_
..
. �
�
�� �..� �.�.:�
ORDINANCE
►INT PAUL, MINNESOTA
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
Presented By
Re£erred To
Committee: Date
An ordinance to amend Chapter 409 of the Saint Paul
Legislative Code pertaining to lawful gambling; adding
raffies and making amends for the use of pull-tab
mechanical dispensing devices.
1'HE COUNCIL OF THE CTTY OF SAINT PAUL DOES ORDAIN:
Section 1
Section 409.21 o£the Saint Paul Legislative Code is hereby amended
"Sec. 409.21. Pull-tabs and tipboards in bars by
(a) Permission of city council; endorsement,
(1) On-sale licensees may request p
orgatvza.rions to conduct lawful
and tipboards only on the licens
the license inspector and pa
license shall contain an end se�
endorsement may be cons' ered
renewal of the on-sale ' ense.
Council File # �y=Ly
ordinance �
Green Sheet # � �� � �'
as follows:
nonprofit organizations.
rnu ion of the city council to pemut qualified charitable
g bling in the form of paddlewheels, pull-tabs�r�l�
� premises. Applicarion for pernussion shall be made to
it of the specified fee. If the application is granted, the
ient specifying this approval and the gambling
for renewal at the same time as the council may consider
(2) In the event the pe 'ssion of any charitable nonprofit organization to conduct lawful
gambling on the ' ensed premises is ternunated by the licensed establishment on whose
premises the o anization was conducring said gambling, or in the event such
organization ernunates its lawful gambling as a result of coercion, pressure or
unreasona e or unlawful conduct by the licensee or its employees, the on-sale licensee
shall no e able to make application for a gambling endorsement for a new charitable
nonpr t organization to take the place of the former organization until one (1) year
afte discontinuance of all gambling activity on the licensed premises by the former
(b) Gamblin endorsement regulations. Gambling endorsements on on-sale licenses shall be subject to
the follo ' g regulations which shall be deemed as a part of the license, and failure of compliance may
constitu grounds for adverse action as prescribed in the Legislative Code:
(1) Only charitable nonprofit organizations licensed by the State of Minnesota to operate
� 9�-39y
paddlewheels, tipboards and pull-tabs may be allowed to sell paddlewheel tickets, pull-
"� ���� and ti boards on the licensed remises.
tab�:"asi��:'.......�,� P P
(2) Use of the licensed premises shall be by means of a written lease agreement between the
licensee and the charitable organization. The lease shall�";"';°'";;�=y�e�;�p�� be
; a copy shall be Sled with the �icease-iaspectar �s�
��ta�, and also a copy must be kept on the premises and available for public ,
inspection upon request. Leases shall be governed by the following: ;� �
a. Maximum rent that may be charged is one thousand dollars
� '.G!f:.'nii2::iK:%':.:'/.:� .. : '//ui ::z"::_:::ji.. ..... ' s!: n�'.:F"b."ii%':`.
month.';'e�rr &�,�c�s;4�a�C;�����ti�;;;:���€i
,., ...:.:.:...:.:<,,:.-_P..>.... .......:...._..,,.,:... _ .:....
�� s�='3�3��>�f�" :.�:�;�.>°:'.� �:.�,,,:,:,�-:,�u;x�.o; ';�: t�;`'d
,,::.�., „�:�..,,�,.
�Ej',£�i�59'>"' : ,.^�t < � � . � % � j � «; � -;E���Iil�E:if`��� ;>3�;,;,
.,,:. , ,,r . ., .:,,. :.....:....:..` ...
�,:' .::... . ...�,.�«_ ;..::, ...
.,:,,': -.,..,..., �,. �t,..�,..�,.. � 1:��'��SF - .:... ..: .......... �t'�_.-........�
b. Rental payments may not be based on a percentage of prp�G
receipts. �
c. The licensee may not be reimbursed by the
or pernut fees, and the only compensation
charitable organization istke-rent a��:��
e.
from gambling
organization for any license
licensee may obtain from the
:ed in the lease agreement.
r���o9 uwT1�����uulYYlnf.)J�r.���
Paddlewheel tickets, pull-ta ;`;;'��;��ke� and tipboards shall neither be sold by
employees of the licensee or sold from the bar service area.
f. The construction and a�ntenance of the booth used by the charitable
organization shall be he sole responsibility of the charitable organization.
g. The lease shall c ntain a provision pernutting the licensee to terminate the lease if
the charitable ganization is found guilty of any violation of state or local
gambling sta, tes, ordinances or rules and regulations.
(3) Only one
sha11 be permitted to
� .:.. .. :.
� � .,. .�� . . � . •� �. �...� �. :.
lH K IIIIK.I�I�J��A7� IF11�111��R1fl��11 ��IFlI7�1�1i RLIK�II�hlll
2
. .
�1 - 1 �'" A �' .11 � � � � � 1 • • .1 I.�� � • • Al1I/. • • • � • •� IIU' �
� � � • � � � 1 .1� N � � � � d � ' �� � � 1 1� . • � • - � • 1 Ih
• �I • 1 • .11 � • ��1 � �� • � • �1 • � • � • � • � • t � . • . � •
� • • , s + • • a . � • . a � s m • • + • . a w s . • . • • • � w • •
.� � • u • � � • � � w . • r.� .n • • .+n�i • � ' .�� • • • . • � m .
1�
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
��
(5 � If readily perishable or potentially hazardous food, as defined
Legislative Code, is awarded as a prize in any charitable g�}
handling of such food shall be in compliance with all app�i
f
�section 331.07 of the
ng, the storage and
requirements of Chapter
331 of the Legislative Code. The licensee shall be respo ible for notifying the office of
license, inspections and environmental protection that 1od, whether readily perishable or
potentially hazardous or not, is being awarded as a p�ize in any charitable gambling
taking place on the licensed premises, using such f�,crnn or forms as may be prescribed by
such office. ,�
�����
(c) Large charitable nonprofit organizations
(1) Notwithstanding any other provisi of law or of sections 409.21 and 409.22 of this
chapter, not more than five (5) c'table nonprofit organizations which qualify as ��lazge
organizations" may be permitt to conduct lawful gambling in the form of paddlewheels,
pull-tabs;' and tipboar on licensed premises after meeting all other requirements
of Chapters 310 and 409 the Saint Paul Legislative Code and of any other applicable
statute, regulation or or ance. The term "large organization," for the purpose of this
chapter, shall mean include any charitable nonprofit organization which has the size
and resources, as w as the public acceptance and drawing power, sufficient to
dominate in the c petition for licensed premises in which to conduct charitable
gambling so as make it difficult or impossible for small charitable no�rofit
organization o find suitable or desirable premises in which to raise funds by charitable
gambling. y charitable nonprofit organization whose annual gross revenues for the
immedia ly past fiscal or calendar year from all sources are in excess of ten million
dollar $10,000,000.00) or whose annual management and administrative e�enditures
for ' current budget year are in excess of three million dollars ($3,000,000.00), or
nty-five (25) percent or more of whose net profits from charitable gambling are or
ve been distributed in at least three (3) of the last five (5) years to another nonprofit or
charitable organization of which it is a local chapter or subsidiary, shall be presumed to
be a large corporation. The computation of the above dollar amounts shall be the total
for both the charitable nonprofit organization in question and any other such
organization, if such other organization:
(a) Has the power to appoint a majority ofthe governing body ofthe organization in
1 question; � � �3 q y
2
3 (b) Has or exercises the authority to direct or control the work of the officers or
4 employees of the organization in question;
(c) Provides half or more of the gross revenues of the organization in question; or
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
3b
37
38
39
40
41
42
43
44
45
46
47
48
49
50
(d) Franchises or charters the organization in questioq or permits the org�nization in
question to use its name and/or organizational symbols in the cond of the
fund-raising activities of the organization in question.
(2) No endorsement to the on-sale license shall be granted to any on-s e licensee for a large
organization until thirty (30) days after the effective date of this rdinance [Ordinance
No. 17613]. If there are more than five (5) qualified applicant for such endorsement, the
council shall by motion set a future regular council meeting ate at which five (5) such
applicants shall be selected for the issuance of the liquor dorsements authorized herein.
Such selection shall be by lot in accordance with the pr cedures indicated in section
409.16(e)(2) (excepting the payment of the special is ance excise tas). Not less than
thirty (30) days after one (1) of such endorsement s revoked, denied or lapses for any
reason, the council may establish a date for rand selection among otherwise qualified
applicants as provided above. If the number o pplicants at any time is equal to or less
than five (5), or less than the number neede o bring the total of such endorsements
issued to five (5), then the council may iss e such endorsements in the regulaz manner.
(3) The large organizations authorized to perate in on-sale licensed premises as provided
for in this paragraph (c) shall be re ired to comply with all applicable requirements of
law and of sections 409.21 throu 409.23, including the payment of ten (10) percent of
:::,� :..., ..................,<„_ : ...... ..,.,.:,
.. . .a ... „ l •�'�:. �' .. 9 � :.;..�..
their net profits ��pu�.�;;�;;;: `;"�";:f'�:�kf€::���� from selling paddlewheel tickets,
pull-tabs�:x�t�;tiie��ts and ti oarcls as provided by section 40922(11).
(4) The term "large organiz ion" for the purpose of subsection (c) sha11 not include a club
as defined in section 40 .02 of this chapter where such club has an on-sale intoxicating
liquor license issued der t3us chapter and the only charitable gambling camed out on
the licensed premis s is operated by the club itself in confornuty with applicable state and
municipal license and regulations thereunder.
(d) Number of establishmen restrictecL No charitable organization,
>�
ar�anee; shall sell pad ewheel tickets, pull-tabs�:��;tz��t� and/or tipboards in more than three (3)
establishments license by the City of Saint Paul for the sale of intoxicating liquor in accordance with
section 409.22; pro �ded, however, that no such organizarion may operate in a second establishment
until it has been ' ll operation for at least three (3) months in the first establishment: ;�oroperat�in-x
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Section 2
Section 409.22 of the Saint Paul Legislative Code is hereby amended to read as follows:
"Sec. 409.22. Charitable gambling regulations.
9�-3�y
The sale of paddlewheel tickets, pull-tab�;�"� and tipboards in on-sale licensed pr�iises shall
be conducted only by qualified and stat�licensed charitable orua�tions. In addition to� hsfying the
qualifications set forth in Mnnesota Statutes, Chapter 349, the following regularions atfd qualifications
must be complied with by all such charitable organizarions: �
(1)
�2)
Must have been in existence for three (3) years.
Must fileY�i;ai��;�na�i�a1'��iti with the
(3) Must file financial reports monthly with the
of�aurt-Patt�
(5 �) Must exhibit and sell paddlewheel tickets,
method as required by the �ieemscrinsPec�r
(6 5) Shall not commingle game
and tipboards in a
(� � Shall pay employees in comp�e with applicable state and federal law, and any
applicable rules and regulatio promulgated thereunder.
($ 7) Shall comply with a11 pro sions of Miunesota Statutes, Chapter 349, and all orders
issued by the state boar pursuant to section 349.172 hereof.
(9 � Shall register with e state gambling board all equipment and supplies used in a licensed
on-sale liquor es lishment.
(-�6 9) Shall post in conspicuous place rules and regulations conceming charitable gambling as
required b the iieenseinspeetar �:`�'����t(�r.
(-i� �'4�) Shall y to the Youth Program Fund, or to one (1) or more eligible recipients on the list
esta shed pursuant to section 409.235, following the procedures established therein, ten
(1 percent ofthe monthly net profits from each Saint Paul site at which charitable
.:,..:,..
bling operations are conducted from the sale of paddlewheel tickets, pull-tabsy:ta#��
ti��#s and tipboards.
Shall expend, in each calendar year, at least seventy-five (75) percent or more of its net
proceeds from charitable gambling at Saint Paul locations to or for purposes which
benefit programs or activities occurring in the Saint Paul trade area. Fifty-one (51)
percent of the net proceeds from charitable gambling at Saint Paul locations must be
e�ended to directly benefit Saint Paul residents who participate in such programs or
activities. The "Saint Paul trade azea" is defined as the City of Saint Paul and each city
contiguous ta Saint Paul. Contributions to the Saint Paul Youth Fund under sections
G^
qG-39�
1 409.23 and 409.235 of ttris chapter shall be presumed to benefit programs and activities
2 which occur in the Saint Paul trade area, and shall be presumed to directly benefit Saint
3 Paul residents who participate in such programs or activities.
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
.� .�. . • ., �. . . � .�� , . . � . � .�. . . ...� . � � . . . . � .
r. nu�• r r..: • i� �
Section 3
Section 409.235. of the Saint Paul Legislative Code is hereby amended to read as follows:
"Sec. 409.235. Contributions to eligible recipients.
(a) Advisory board The board shall be the Youth Program Fund
pursuant to section 409.23 above.
(b) Eligible recipients list established There is hereby establishe
distribution of proceeds contributed by charitable gamblin '
specified in this chapter, and in private clubs and other pl ces
Board established
�'a list of recipients eligible for
on-sale liquor establishments as
as provided in section 402.10 of
these chapters. The list of eligible recipients shall be pr mulgated annually by resolution by the
city council upon the advice and report of the board uch list may be amended from time to
time by the city council to add or delete recipients uch list shall be maintained for public
inspection in the office of the city clerk, and s be mailed quarterly to all organizations
conducting charitable gambling within the Cit of Saint Paul by the
�'ssi�xt�
(c)
(d)
Applicant qual�cations for inclusion �ie Zist. Applicants shall be required to apply annually and
shall meet the following requirement�`in order to be included on the list:
(1) Applicants for inclusion dn the list must be incorporated, nonprofit organizations formed
solely for the purpose f serving Saint Paul youth, or having an incorporated, nonprofit
organization, which rovides programs for Saint Paul youth, as a fiscal agent. Booster
clubs, which pro ' e programs for youth, organized for a recreation center will be
eligible, but or ' ed clubs, activities and teams of public or private schools, will not be
eligible. Evi nce that an organization has been recognized by the IRS as exempt from
taxation p suant to 26 U.S.C. Section 501 or is using an organization so recognized as a
fiscal a nt shall be accepted as proof that it is a nonprofit organization, but such
evide e is not the exclusive method of establishing nonprofit status.
�2)
other organization shall be eligible for inclusion on the list.
applications for inclusion on the list:
�2)
Each applicant for inclusion on the list shall provide information setting forth its stated
purpose, number of participants served, area served and the reasons why funds aze
needed.
The submitting organization must provide at the time of application:
�
2
�
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
a.
b.
c.
d.
e.
f.
g•
h.
Verification of nonprofit status and copy of orga.nizational bylaws.
List ofcurrent officers or directors.
� � -3°� �.
Letter verifying organization's approval of the proposal and, where necessazy,
letter verifying approval of the applicarion and proposal by the board of the fiscal
agent. �
Previous year's budget and financial statement.
C�urent balance sheet and income statement, if applicable.
Proposed budget (e�enses and income) for the
Evidence that inswance, if needed, can be
Area served, number of participants served,
the organizarion.
reasons why funds are needed.
The financial information must demonstrate that e majority of the organization's
funding is used for the benefit of the public in roviding youth programs for youth twenty
(20) and under, at least seventy-five (75) p nt of whom are residents of the city.
(3) No organization operating charitable g bling in the State of Mnuiesota will be eligible
for inclusion on the list.
(4) An organization formed, incorpo ted, operated or managed by the members, officers or
directors of any organization o rating or conducting lawful gambling, or subject to the
requirements for contributio under sections 404.22(1) or 402.10 of the Legislative
Code, or the ten (10) perc t contribution requirement in this section, shall not be an
eligible recipient.
(5) An eligible n
operate char
an eligible re
condition of
required aU,d
�as a condition to continuation on the list, may not engage in or
ambling nor use any contributions received as a result of its status as
for anything other than a lawful purpose. Each recipient as a
of contriburions must execute the verified receipt and representations
(e) Contriburions equired Organizations conducting charitable gambling within the City of Saint
Paul shall, t meet requirements imposed by law, including, but not limited to, sections 402.10
and 409. (14) of the Saint Paul Legislative Code, give ten (10) percent as required therein to
one (1 r more eligible recipients on the list promulgated by the city council or to the Youth
Pro Fund established under section 409.23. All such contributions must go only to eligible
re ' ients on the list provided above. An organization cannot contribute to any recipient not
mishing the verified receipt as provided.
( fl Affidavit. Each eligible recipient shall annually, during the month of January, file an a�davit with
the Youth Program Fund mauager, in which each officer of the recipient shall state that the
contributions which it received during the previous calendar year have been expended for a
lawful purpose and state the purpose, that all previous contributions, if any, have been expended
for lawful purposes, that the calendar-year total of contributions received as a result of its status
qC `39'�
as an eligible recipient does not exceed the allowable amount under the ordinance, that it does
2 not operate any gambling activities, and that no such contribution or any previous contribution
3 will be or has been used for capital eacpenses, salaries or travel expenses except as may be
4 allowed herein.
5
6 (g) Limitatiorrs on award arrd use of funds. Funds may not be used for capital eapenses, e cept as
7 may be provided in administrarive rules adopted by the advisory board pemutting u of funds
8 for purchase or maintenance of capital goods other than real property, nor for es or travel
9 e�enses, but may be expended for an individual or team representing the city r state in the
10 state or national championship toumament in that sport or activity, or from e ciry where such
11 individual or team�has qualified for the state or narional championship to�nament in that sport
12 or activity by competing in and winning the championship of a tourn nt in the city or state;
13 provided, that travel e�enses shall not be paid for any invitational t�rnament, qualifying
14 tournament or other tournament. The term "championship tourn ent" means that such
15 tournament is sanctioned as such by the governing body of that port or activity. Funds may also
16 be expended for reasonable bus rental for same-day trips for ecial events or activiries.
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
(h) Contribution of checks through the ticense division. AIo 'thstanding any other provision of law
to the contrary, an organization conducting charitable ambling shall make its contribution to an
eligible recipient on the list by sending its check for e amount to the license-inspectar �:��
�7tii'�f�i�. The iicense-is�spector �;;I�P „�;D€���;;sh verify that the intended eligible recipient has
complied with all requirements of this chapter that the proposed contribution will not exceed
the allowable limits, nor be in excess of eight ousand dollazs ($8,000.00) for that calendar year
(as modified by the provisions of subparagr h(e)(5) of section 409.23 above conceming
organizations in certain eligible azeas or ' g certain demonstrations). If all requirements of
(i)
law have been satisfied, the license insp tor shall forward such contribution to the intended
eligible recipient by mail.
Adternate compliance. Notwithst ding any provision of law to the contrary, any organization
conducting charitable gamblin 'thin the City of Saint Paul may satisfy its obligations under
paragraph (e) above and sect ns 402.10 and 409.22(14) of the Code to give ten (10) percent of
its net profits to eligible re ' ients by, in lieu thereof, contributing such ten (10) percent to the
Youth Program Fund est lished under section 409.23 of the Code."
5ection 4 � ` —� q y
1
2
3
4
These changes shall take effect and be in place thirty (30) days following their passage, approval and
publication. ,
������;����a�
a�_
Requested by Department of:
Office of License, Inspections and
Environmental PYOtection
Adopted by Counci� Date
Adoption Certifie by Council Secretary
By:
Approved by�f4ayor: Date
By:
,� t
.� •�
a ;,. .;
Form Approved by City Attorney
sy: Y�,�cfls�xt0.�' J \ �•
Approved by Mayor for Submission to
Council ,,/
By: / U l ����S�'+�
E