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HomeMy WebLinkAbout1977.07.05 ORD 1977-143 ORDINANCE NO. 143 AN ORDINANCE LICENSING AND REGULATING THE CONDUCT OF BINGO, AND PROVIDING A PENALTY FOR VIOLATION The Council of the City of Hugo ordains: 35-1. PURPOSE. The purpose of this ordinance is to closely regulate and control the conduct of the game of bingo and to prohibit commercialization of bingo. 35-2. DEFINITIONS. Whenever the following terms appear in this ordinance, they shall have the meanings assigned to them in this section. Subd. A. Active member. A member of the organization requesting a license whose dues are paid for the current membership period and who has been a member for at least six months. Subd. B. Bingo. A game where each player has a card or board for which a consideration has been paid, containing five horizontal rows of spaces, with each row except the central one containing five figures. The central row has four figures with the word "free" marked in the center space thereof. A player wins a game of bingo by completing any pre-announced combination of spaces or, in the absence of a pre-announcement of a combination of spaces, any combination of five spaces in a row, either vertical , horizontal, or diagonal. Subd. C. Bingo occasion. A single gathering or session at which a series of one or more succesive bingo games is played. Subd. D. Eligible organization. Any fraternal, religious, veterans, or other non-profit organization which has been in existence for at least three years and has at least 30 active members. Subd. E. Profit. The gross receipts collected from one or more bingo occasions less reasonable sums necessarily and actually expended for bingo supplies and equipment, prizes, rent, and utilities used during the bingo occasions, bingo license fees, and compensation to persons lawfully hired to conduct or assist in conducting a bingo occasion. 35-3 . LICENSE REQUIRED. The following licensing requirements must be met: Subd. A. Requirement. No bingo occasion shall be conducted except by an eligible organization which has secured a license for that purpose, as provided in this ordinance, when conducted not more than twice in a year by any organization which is otherwise eligible for a license. Subd. B. Term. A license shall be valid until December 31 in the year of the date of issuance. Subd. C. Fee. The annual license fee shall be established by resolution of the City Council . Subd. D. Council Action. A license application shall be acted upon by the council no sooner than 30 days and no later than 90 days after the date of application. Subd. E. Transferability. No bingo license issued may be transferred to any other person or organization. No bingo license shall be transferred to any location other than the location specified in the license, without prior approval by the council. 35-4. LICENSE APPLICATIONS. Every application for a bingo license shall be made to the city clerk on a form supplied by the city and containing such information as the clerk or the council may require. No person shall make a false statement in an application. Copies of each application shall be referred to the city' s police chief, fire chief, and building inspector, for their recommendations. All information required on the application shall be maintained current, and the applicant shall notify the city clerk of all changes of conditions within seven (7) days of the occurence thereof, and failure to maintain the information current may be a basis for revocation or suspension of the license. 35-5. SUSPENSION OR REVOCATION. The council may suspend for a period not exceeding 60 days, or revoke, any bingo license for violation of any provision of M. S. Ch. 349 or this ordinance. The holder of the license shall be granted a hearing upon at least 10 days notice before revocation or suspension is ordered. The notice shall state the time and place of the hearing and the nature of the charges against the licensee. 35-6. CONDUCT OF BINGO. All bingo shall be conducted as follows: Subd. A. Bingo Manager. Each licensed organization shall appoint a' bingo manager to supervise bingo occasions conducted by it. The bingo manager must be a member of the licensed organization, with dues paid for the current membership period, and must have been a member of the organization for at least two years . The bingo manager shall give a fidelity bond in the sum of $10, 000 in favor of the organization conditioned on the faithful performance of his or her duties. Terms of the bond shall provide that notice shall be given in writing to the city council not less than 30 days prior to its cancellation. Each bingo occasion shall be conducted under the supervision of the bingo manager, who shall be responsible for the conduct of the bingo occasion in compliance with all applicable laws and ordinances. No person shall act as bingo manager for more than one organization. Subd. B. Checkers. One or more checkers shall be active members of the licensed organization, spouses or surviving spouses of active members of the licensed organization, or members of auxiliary organizations. The checker or checkers shall record the number of cards purchased and played in each game prior to the completion of each game and record the prizes awarded to the recorded cards. Each checker shall certify all figures which he or she has recorded as accurate and correct to the best of his or her knowledge, on forms prescribed by the city clerk. Subd. C. Other Employees. Additional persons may be engaged for other duties in connection with bingo occasions as needed , but no person shall assist in the conduct of a bingo occasion who is not an active member of the licensed organization, the spouse orsurvivingspouse of an active member of the licensed organization, or member of an auxiliary organization. Subd. D. Compensation. No person shall receive any compensation for any duties in connection with any bingo operation. Subd. E. Number of Occasions. No more than 52 bingo occasions each year or two bingo occasions in any week may be conducted by any licensed organization. Subd. F. Time Limit. A bingo occasion shall not continue for more than four consecutive hours. 35-7. BINGO ON LEASED PREMISES. The following limitations shall apply to all bingo operations conducted on leased property: Subd. A. Multiple Leases. Any person, corporation, or eligible organization, which leases any premises that it owns to two or more eligible organizations for purposes including the conduct of bingo occasions, shall not allow more than four bingo occasions to be conducted on the premises in any week. Subd. B. Use of Proceeds. Any eligible organization which leases any premises to one or more other eligible organizations for purposes including the conduct of bingo occasions shall use the proceeds of the rental, less reasonable sums for maintenance , furnishings and other necessary expenses, only for the uses for which bingo profits may be used , as set out in Section 35-13 of this ordinance. Not less than once each year the lessor organization shall report to the city council the disposition of all receipts which it has received during the reporting period from the rental of its facilities to other organizations for purposes including the conduct of bingo occasions. Subd. C. Lease Required. No eligible organization shall conduct bingo on any leased premises without a written lease for a term at least equal to the remainder of the term of the bingo license of the lessee organization. Lease payments shall be at a fixed monthly rate, or rate per bingo occasion, not subject to change during the term of the lease. No such lease shall provide that rental payments be based on a percentage of receipts or profits from bingo occasions. 35-8 . PRIZES. The following limitations on prizes shall be followed : Subd. A. Prize Limits. Prizes for a single bingo game shall not exceed $100 except prizes for a game of the type commonly known as a "cover-all" game. "Cover-all" prizes may exceed $100 provided that the aggregate value of such prizes for a bingo occasion shall not exceed $500. The aggregate value of prizes for a bingo occasion shall not exceed $2 , 500 except that in the case of a bingo occasion during which a "cover-all" game is played for a maximum prize of more than $100 but less than $500, the aggregate value of prizes for the bingo occasion shall not exceed $3 , 000. Merchandise prizes shall be valued at fair market retail value. Subd. B. Winner Determination. Each bingo winner shall . be determined and every prize shall be awarded and delivered the same day on which the bingo occasion is conducted. • 35-9. RECORDS. The following records and methods of handling accounts shall be complied with: Subd. A. Required Records. Each licensed organization shall keep records of its gross receipts and profits for each bingo occasion. All deductions from gross receipts from a bingo occasion shall be documented with receipts or other records. The distribution of profits shall be itemized as to payee, amount, and date of pay- ment. Records required by this ordinance shall be preserved for three years. Subd. B. Audit and Investigation. Gross receipts shall be compared to the checkers ' records for the bingo occasion by a person who did not sell cards for the bingo occasion. If a discrepancy exceeding $20 is found between the amount of gross receipts for a bingo occasion as determined by the checkers' records, and the amount of gross receipts as determined by totaling the cash receipts, the discrepancy shall be reported to and investigated by the council. Subd. C. Segregation of Funds. Bingo gross receipts shall be segregated from other revenues of an organization and placed in a separate account. Each organization shall maintain separate records of its bingo operations. The person who accounts for bingo gross receipts and profits shall not be the same person who accounts for other revenues of the licensed organization. 35-10. REPORTS. The following reports and returns shall be made and filed: Subd. A. Report to Members. Each licensed organization shall report monthly to its membership its gross receipts from bingo, its profits from bingo, and the distribution of those profits itemized as required by 35-9, Subd. A. Subd. B. Returns, Reports and Documents to be filed with City. At the time of making its first license application under this ordinance, and on an annual basis thereafter, each licensed organization shall file with the council copies of the following: a. The most recently filed department of the treasury, internal revenue service, "Return of Organization Exempt from Income Tax, " Form 990, or a comparable form if the organization is required to file the form with the department of the treasury, or state- ment that such is not required. b. The most recently filed department of the treasury, internal revenue service, "Exempt Organization Business Income Tax, " Form 990-T, or a comparable form if the organization is required to file the • form with the department of the treasury, or statement that such is not required. c. The most recently filed annual report required of charitable organizations by M.S . Sec . 309. 53 , provided that an organization that is licensed to conduct bingo but is exempt from submitting this report to the department of commerce under M.S. Sec. 309. 53 , Subd. la, shall nevertheless submit such a report under this subdivision. d. The most recently filed Minnesota department of commerce "Statement of Bingo Operations. " All information contained in the statement shall be true, correct, and complete to the best of the knowledge of the person or persons signing the statement. e. Any lease agreements required by this act, executed by the organization in regard to premises leased for the conduct of bingo. Subd. C. False Statements Prohibited. No person shall knowingly make a false statement in any report required by this section. 35-11. INSPECTION AND INVESTIGATION. Any city official or employee, having a duty to perform with reference to a bingo license, and any police officer may inspect and examine the • bingo records of any licensedorganizationupon 24 hours notice. 35-12. USE OF BINGO RECEIPTS. No expense shall be incurred or amounts paid in connection with the conduct of bingo, except those reasonably expended for bingo supplies and equipment, prizes, rent, or utilities used during the bingo occasion, and bingo license fees. 35-13 . USE OF BINGO PROFITS. Profits from any bingo occasion shall be expended only as authorized by a resolution recorded in the official minutes at a regular meeting of the licensed organization and only for one or more of the following purposes: a. Benefiting persons by enhancing their opportunity for religious or education advancement, by relieving or protecting them from disease, suffering, or distress, by contributing to their physical well- being, by assisting them in establishing themselves in life as worthy and useful cizens, or by increasing their compre- hension of and devotion to the principles upon which this nation was founded. b. Initiating, performing, or fostering worthy public works or enabling or furthering the erection or maintenance of public structures. c. Lessening the burdens borne by government or voluntarily supporting, augmenting, or supplementing services which government would normally render to the people. d. The improving, expanding, maintaining, or repairing of real property owned or leased by the licensed organization. Profits from bingo occasions shall not be expended for the erection or acquisition of any real property, unless the city council specifically authorizes the expenditures after finding that the property will be used exclusively for one or more of the purposes specified in this seciton. 35-14 . EXEMPTIONS. Bingo may be conducted without complying with the requiremnts of 35-6, Subds. E and F, and 35-7 , if conducted: (a) in connection with the county fair conducted by the county agricultural society or in connection with a civic celebration recognized by resolution of the city council provided that bingo shall not be conducted for more than 12 days during any one county fair or recognized civic celebration, or (b) by an organization that conducts not more than two (2) bingo occasions in any calendar year. 35-15. PENALTIES. Violation of any provision of this ordinance shall be -a misdemeanor.-- A person convicted of violating any provision of this ordinance shall be subject to a fine of not more than $300 or imprisonment for a term not to exceed 90 days or both, plus in either case the costs of prosecution. 35-16. EFFECTIVE DATE. This ordinance becomes effective upon its passage and publication according to law, and upon becoming effective shall be incorporated in the city code. Passed by the council this j--- day of , , 1977 . MAYOR ATTEST: r atzAtisL a ,,c,s\dit CITY CLERK Published In the Forest Lake Times on the / day of , 1977. —lir ORDINANCE NO.143 AN ORDINANCE LICENSING AND –STATE OF MINNESOTA REGULATING THE CONDUCT OF BINGO, AND PROVIDING A SS N PENALTY FOR VIOLATION COUNTY OF Washington • gy The Council of the City of Hugo or- ' da ins: Duane A.Rasmussen,being duly sworn,on oath says he is and during all the times herein stated has been the publisher • 35-1.PURPOSE.The purpose of this and printer of the newspaper known as the Forest Lake Times and has full knowledge of the facts herein stated as follows: ordinance is to closely regulate and control the conduct of the game of bingo Said newspaper is r g g g newspaper y and to prohibit commercialization ofprinted in the English language a in news a er format and in column and sheet form equivalent in printed bingo. space to at least 900 squre inches.Said newspaper is a weekly and is distributed at least once each week.Said newspaper t 35-2. DEFINITIONS. Whenever the has 50%of its news columns devoted to news of local interest to the community which it purports to serve and does not following terms appear in this or- wholly duplicate any other publication and is not made up entirely of patents,plate matter and advertisements.Said news- dinance, they shall have the meanings paper is circulated in and near the municipality which it purports to serve,has at least 500 copies regularly delivered to assigned to them in this section. paying subscribers,has an average of at least 75%of its total circulation currently paid or no more than three months in Subd.A.Active member.A member of arrears and has entry as second-class matter in its local post-office.Said newspaper purports to serve the City of Forest the organization requesting a license Lake in the County of Washington and it has its known office of issue in the City of Forest Lake in said count established , whose dues are id for the current y. membership period and who has been a and open during its regular business hours for the gathering of news,sale of advertisements and sale of subscriptions and member for at least six months. maintained by the managing officer of said newspaper or persons in its employ and subject to his direction and control dur- Subd.B.Bingo.A game where each ing all such regular business hours and at which said newspaper is printed. Said newspaper files a copy of each issue im- player has a card or board for which a mediately with the State Historical Society.Said newspaper is made available at single or subscription prices to any per- consideration has been paid,containing son,corporation,partnership or other unincorporated association requesting the newspaper and making the applicable five horizontal rows of spaces,with each payment.Said newspaper has complied with all the foregoing conditions for at least one year preceding the day or dates of • row except the central one containing publication mentioned below.Said newspaper has filed with the Secretary of State of Minnesota prior to January 1,1966 five figures. The central row has four and each January 1 thereafter an affidavit in the form prescribed by the Secretary of State and signed by the managing of- figures with the word"free"marked in ficer of said newspaper and sworn to before a notary public stating that the newspaper is a legal newspaper. the center space thereof.A player wins a game of bingo by completing any pre- announced combination of spaces or,in He further states on oath that the printed Public Notice hereto attached the absence of a pre-announcement of a combination of spaces,any combination h of five spaces in a row,either vertical, as a part hereof was cut from the columns of said newspaper, and was printed and published therein in the English horizontal,or diagonal. Subd. C. Bingo occasion. A single gathering or session.at which a series of lanuage,once each week,for :)T1A successive weeks; that it was first so published on Thursday, one or more successive bingo games is played.Subd. D. Eligible organization. Any the 21$t day of July19-1,-, and was thereafter printed and published on every fraternal, religious, veterans, or other non-profit organization which has been Thursday to and including the )1:1 t day of Ju'" 19 77 in existence for at least three,years and has at least 30 active members. Subd. E. Profit. The gross receipts and that the following is a printed copy of the lower case alphabet from A to Z,both inclusive,and is hereby acknowledged collected from-one or more bingo oc- as being the size and kind of type used in the composition and publication of said notice,to wit'. casions less reasonable sums necessarily and actually expended for bingo supplies and equipment, prizes, 6-point News Type--abcdefghijklmnopgrstuvwxyz rent,and utilities used during the bingo occasions, bingo license fees, and _ ,je ,ir}' .kYpF.Tpa iC ...e10.0 �c}Chtio�(,CS91nriTA compensation to persons lawfully hired to conduct or assist in conducting a bingo occasion. - _vs.„„..,aa,-—•--�M 35-3. LICENSE REQUIRED. Thebue following licensing requirements must be met: Subscribed and sworn to befor me this t'1 l+t day of J,;Tr 191.1._ Subd. A. Requirement. No bingo oc- i casion shall be conducted except by an eligible organization which has secured ^\ a license for that purpose,as provided in �- L this ordinance, when conducted not more than twice in a year by any organization which is otherwise eligible / r. KL i:Tai JARVIS F,�. fora license. Not y CHISAGO COON ,,Minnerta Subd.B.Term.A license shall be valid NOTit Y r .IC•MIN N ESOTA until December 31 in the year of the date (NOTORIAL SEAL) My om�r tlssion EExptFA es 18 of issuance. M• �OMM19..�VN !. co e.�.. .O,I,,..,Li— Subd.C. Fee.The annual license fee' ,,,,,„c,"."....... .---..P. shall be established by resolution of the City Council. Subd. D. Council Action. A license application shall be acted upon by the council no sooner than 30 days and no later than 90 days after the date of ap- plication. Subd. E. Transferability.be transferred No.bingoaPrinters Af f ida 1 it license issued may be transferred to any other person or organization. No bingo license shall be transferred to any location other than the location specified in the license,without prior approval by of Publication the council. 35-4. LICENSE APPLICATIONS. Every application for a bingo license shall be made to the city clerk on a form supplied by the city and containing such information as the clerk or the council may require. No person shall make a false statement in an application.Copies of each application shall be referred to County of Washington the city's police chief, fire chief, and ^9 building inspector, for their recom- mendations.All information required on the application shall be maintained STATE OF MINNESOTA current, and the applicant shall notify the city clerk of all changes of conditions within seven 47)days of the occurrence thereof, and failure to maintain the information current may be a basis for revocation or suspension of the license. 35-5. SUSPENSION OR REVOCATION. The council may la Ow Metter if suspend for a period not exceeding 60 days, or revoke, any bingo license for violation of any provision of M.S.Ch.349 or this ordinance. The holder of the license shall be granted a hearing upon at least 10 days notice before revocation or suspension is ordered. The notice shall state the time and place of the hearing and the nature of the charges against the licensee. 35-6.CONDUCT OF BINGO.All bingo shall be conducted as follows: Subd. A. Bingo Manager. Each licensed organization shall appoint a Fled this day of A.D. 19 . . . bingo manager to supervise bingo oc- licensed organizrtion shall report casions conducted by it. The bingoto its manager must be a member of te"'reOcceipts from hfiigo,b is hprotis grossfrom licensed organization,with dues paid for bingo, and the distribution of those the current membership period, and profits itemized as required by 35-9, must have been a member of the Subd.A. organization for at least two years.The Subd. B. Returns, Reports and bingo manager shall give a fidelity bond Documents to be filed with City.At the in the sum of $10,000 in favor of the time of making its first license ap- organization conditioned on the faithful plication under this ordinance,and on an performance of his or her duties.Terms annual basis thereafter, each licensed of the bond shall provide that notice shall organization shall file with the council be given in writing to the city council not copies of the following: less than 30 days prior to its can- a.The most recently filed department cellation.Each bingo occasion shall be of the treasury, internal revenue ser- conducted under the supervision of the vice, "Return of Organization Exempt bingo manager,who shall be responsible from Income Tax," Form 990, or a for the conduct of the bingo occasion in comparable form if the organization is compliance with all applicable laws and required to file the form with the ordinances.No person shall act as bingo department of the treasury, or manager for more than one statement that such is not required organization. b.The most recently filed department Subd. B. Checkers. One or more of the treasury, internal revenue ser- checkers shall be active members of the vice, "Exempt Organization Business licensed organization, spouses or sur- Income Tax,' Form 990-T, or a corn- viving spouses of active members of the parable'form if_the organization is licensed organization, or members of required to file the form with the auxiliary organizations.The checker or department of the treasury,. or checkers shall record the number of statement that such is not required. cards purchased and played in each c. The most recently filed annual game prior to the completion of each report required of charitable game and record the prizes awarded to organizations by M.S. S,c. 309.53, the recorded cards.Each checker shall -provided that an organization that is certify all figures which he or she has licensed to conduct bingo but is exempt recorded as accurate and correct to the from submitting this report to the best of his or her knowledge,on forms department of commerce under M.S. prescribed by the city clerk. Sec.309.53,Subd.la,shall nevertheless Subd.C.Other Employees.Additional submit such a report under this sub- persons may be engaged for other duties division. m connection with bingo occasions as d.The most recently filed Minnesota needed,but no person shall assist in the department of commerce"Statement of conduct of a bingo occasion who is not an Bingo Operations." All information active member of the licensed contained in the statement shall be true, organization, the spouse or surviving correct,and complete to the best of the �i,inrse of an active member of the knowledge of the person or persons licensed organization,or member of an signing the statement. auxiliary organization. e.Any lease agreements required by Subd. D. Compensation. No person this act,executed by the organization in shall receive any compensation for any regard to premises leased for the con- duties in connection with any bingo duct of bingo. operation. Subd.C.False Statements Prohibited. Subd. E. Number of Occasions. No No person shall knowingly make a false more than 52 bingo occasions each year statement in any report required by this or two bingo occasions in any week may section. be conducted by any licensed 35-11. INSPECTION AND IN- organization. VESTIGATION. Any city official or Subd.F.Time Limit.A bingo occasion employee,having a duty to perform with shall not continue for more than four reference to a bingo license, and any consecutive hours. police officer may inspect and examine 35-7. BINGO ON LEASED the bingo records of any licensed PREMISES. The following limitations organization upon 24 hours notice. shall apply to all bingo operations 35-12.USE OF BINGO RECEIPTS.No conducted on leased property: expense shall be incurred or amounts Subd.A.Multiple Leases.Any person, paid in connection with the conduct of corporation, or eligible organization, bingo, except those reasonably ex- which leases any premises that it owns pended for bingo supplies and equip- to two or more eligible organizations for ment, prizes, rent, or utilities used purposes including the conduct of bingo during the bingo occasion, and bingo occasions,shall not allow more than four license fees. bingo occasions to be conducted on the 35-13. USE OF BINGO PROFITS. premises m any week. Profits.from any bingo occasion shall be Subd.B.Use of Proceeds.Any eligible expended only as authorized by a organization which leases any premises resolution recorded in the official to one or more other eligible minutes at a regular meeting-of the organizations for purposes including the licensed organization and only for one or conduct of bingo occasions shall use the more of the following purposes: proceeds of the rental, less reasonable a. Benefiting persons by enhancing sums for maintenance,furnishings and their opportunity for religious or other necessary expenses, only for the education advancement,by relieving or uses for which bingo profits may be protecting them from disease,suffering, ,used,as set out in Section 35-13 of this or distress, by contributing to their ordinance.Not less than once each year physical well-being,by assisting them in the lessoe organization shall report to establishing themselves in life as worthy the city council the disposition of all and useful citizens, or by increasing receipts which it has received during the their comprehension of and devotion to reporting period from the rental of its the principles upon which this nation facilities to other organizations for was founded. purposes including the conduct of bingo b.Initiating,performing,or fostering occasions.• . worthy public works or enabling or Subd. C.Lease Required. No eligible furthering the erection or maintenance organization shall conduct bingo on any of public structures. leased premises without a written lease c. Lessening the burdens borne by for a term at least equal to the government or voluntarily supporting, remainder of the term_of the bingo augmenting,or supplementing services license of the lessee organization.Lease which government would normally payments shall be at a fixed monthly render to the people. rate, or rate per bingo occasion, not d. The improving, expanding, main- subject to change during the term of the taming, or repairing of real property lease. No such lease shall provide that owned or leased by the licensed rental payments be based on a per- organization. tentage of receipts or profits from bingo, Profits from bingo occasions shall not occasions. The expended for the erection or 35-8. PRIZES. The following acquisition of any real property,unless limitations on prizes shall be followed: the city council specifically authorizes Subd. A. Prize Limits. Prizes for a the expenditures after finding that the single bingo game shall not exceed$100 property will be used exclusively for one except prizes for a game of the type or more of the purposes specified in this commonly known as a "cover-all section. game. "Cover-all" prizes may exceed 35-14. EXEMPTIONS. Bingo may be $100 provided that the aggregate-value of conducted without complying with the such prizes for a bingo occasion shall not requirements of 35-6, Subds. E and F, exceed $500. The aggregate value of and 35-7,if conducted:(a)in connection prizes for a bingo occasion shall not with the county fair conducted by the exceed$2,500 except that in the case of a county agricultural society or in con- bingo occasion during which a "cover- nection with a civic celebration all' game is played for a maximum recognized by resolution of the city prize of more than $100 but less than council provided that bingo shall not •: $500, the aggregate value of prizes for conducted for more than 12 days durin_. the bingo occasion shall not exceed any one county fair or recognized civi $3,000. Merchandise prizes shall be celebration, or (b) by an organizatio valued at fair market retail value. that conducts not more than two(2) Subd.B.Winner Determination.Each bingo occasions in any calendar year. bingo winner shall be determined and 35-15. PENALTIES. Violation of any every prize shall be awarded and provision of this ordinance shall be a delivered the same day on which the misdemeanor. A person convicted of bingo occasion is conducted. violating any provision of this ordinanc: 35-9. RECORDS. The following shall be subject to a fine of not more tha records and methods of handling ac- $300 or imprisonment for a term not to counts shall be complied with: exceed 90 days or both, plus in either Subd. A. Required Records. Each case the costs of prosecution. licensed organization shall keep records 35-16. EFFECTIVE DATE. This or- of its gross receipts and profits for each dinance becomes effective upon its bingo occasion. All deductions from passage and publication according ti gross receipts from a bingo occasion law,and upon becoming effective shall shall be documented with receipts or be incorporated in the city code. other records.The distribution of profits Passed by the council this 5th of shall be itemized as to payee,amount, July,1977. and date of payment.Records required /Marvin LaVall- by this ordinance shall be preserved for /s/Marvin LaVall- three years. MAYO• Subd. B. Audit and Investigation. ATTEST: Gross receipts shall be compared to the /s/Carol A.Williams checkers'records for the bingo occasion CITY CLERK by a person-who did not sell cards for the bingo occasion. If a discrepancy ex- (Published in the Forest Lake Times, ceeding$20 is found between the amount July 21,1977) of gross receipts for a bingo occasion as - determined by the checkers' records, and the amount of gross receipts as determined by totaling the cash receipts, the discrepancy shall be reported to and investigated by the council. Subd.C.Segregation of Funds.Bingo gross receipts shall be segregated from other revenues of an organization and placed in a separate account. Each organization shall maintain separate records of its bingo operations. The person who accounts Jor bingo gross receipts and profits shall not be the same person who accounts for other revenues of the licensed organization. 35-10. REPORTS: The following reports and returns shall be made and filed: Subd. A. Report to Members. Each