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Item No: 7G Meeting Date: Sept 14, 2009 Type of Business: Council Business Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, Clerk - Administrator Item Title/Subject: Review Revisions to the Charitable Gambling Code Introduction: Staff has been aware for some time that the City’s charitable gambling requirements, buried within the chapters dealing with liquor licensing, are in need of revision. Staff asked Kennedy & Graven to review the regulations and to suggest revisions that would be consistent with MN Statutes. The proposed revisions are attached. Discussion: Presently, state law requires that the local unit of government approve premises permits for organizations licensed to conduct lawful gambling. The City does not have a say in whether a group receives a license, only where such organizations may operate. There are certain activities (identified as excluded or exempted activities in Statutes) that the gambling board does not require a license to operate. These are most often related to Bingo at community events, such as the Community Theatre doing Bingo at the Festival, or temporary events such as the Shipwreck Museum last February at the Mermaid. In the proposed ordinance, these approvals are called “local permits” and would necessitate Council action. Previous Action: The City Council reviewed the proposed changes at the September 8, 2009 work session. A number of options were considered regarding the ordinance provisions, which are summarized as follows: • The City should continue to issue local permits for excluded and exempt activities • The code should limit the number of locations at which a licensed organization may operate (no more than 2) • Licensed organizations shall contribute 10% of net gambling profits to the City • Exempt and Excluded operations would NOT be subject to the 10% contribution provision • Premises permits shall only be approved for on-sale liquor licensed establishments • City would allow more than one licensed organization to operate within one premises • Organizations seeking a local permit shall have been in existence for three years, shall have five or more active members and be located in the trade area. • Licensed organizations shall expend 75% of their lawful purpose expenditures within the trade area The changes recommended by the City Council at their work session including those options noted above, have been incorporated into Ordinance 835, attached for the Council’s consideration.