ORDINANCE 21-2

Published 10:03 am Wednesday, October 20, 2021

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PUBLIC NOTICE

ORDINANCE NO. 21-2

AN ORDINANCE AUTHORIZING AND REGULATING THE CONDUCT OF LAWFUL GAMBLING WITHIN THE CITY OF MYRTLE, MINNESOTA

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The City Council of Myrtle, Minnesota ordains:
SECTION 1. ADOPTION OF STATE LAW BY REFERENCE The provisions of Minn. Stat. ch. 349, as they may be amended from time to time, with reference to the definition of terms, conditions of operation, provisions relating to sales, and all other matters pertaining to lawful gambling are hereby adopted by reference and are made a part of this ordinance as if set out in full. It is the intention of the Council that all future amendments of Minn. Stat. ch. 349, are hereby adopted by reference or referenced as if they had been in existence at the time this ordinance was adopted.
SECTION 2. CITY MAY BE MORE RESTRICTIVE THAN STATE LAW
The Council is authorized by the provisions of Minn. Stat. $ 349.213. as it may be amended from time to time, to impose, and has imposed in this ordinance, additional restrictions on gambling within its limits beyond those contained in Minn. Stat. ch. 349, as it may be amended from time to time.
SECTION 3. PURPOSE The purpose of this ordinance is to regulate lawful gambling within the City of Myrtle, to prevent its commercialization, to ensure the integrity of operations, and to provide for the use of net profits only for lawful purposes.
SECTION 4. DEFINITIONS
In addition to the definitions contained in Minn. Stat. $ 349.12, as it may be amended from time to time, the following terms are defined for purposes of this ordinance:
BOARD, as used in this ordinance, means the State of Minnesota Gambling Control Board.
CITY, as used in this ordinance, means the City of Myrtle.
COUNCIL, as used in this ordinance, means the City Council of the City of Myrtle.
LICENSED ORGANIZATION, as used in this ordinance, means an organization licensed by the Board.
LOCAL PERMIT, as used in this ordinance, means a permit issued by the city.
TRADE AREA, as used in this ordinance, means the City of Myrtle and the Townships of Shell Rock and Hayward.
SECTION 5. APPLICABILITY This ordinance shall be construed to regulate all forms of lawful gambling within the city except those forms of gambling excluded or exempted from regulation by Minnesota Statute $ 349.166.
SECTION 6. LAWFUL GAMBLING PERMITTED
Lawful gambling is permitted within the city provided it is conducted in accordance with Minn. Stat. §§ 609.75-763, inclusive, as they may be amended from time to time; Minn. Stat. §§ 349.11-23, inclusive, as they may be amended from time to time; and this ordinance.
SECTION 7. COUNCIL APPROVAL
Lawful gambling authorized by Minn. Stat. §§ 349.11-23, inclusive, as they may be amended from time to time, shall not be conducted unless approved by the Council, subject to the provisions of this ordinance and state law.
SECTION 8. APPLICATION AND LOCAL APPROVAL OF PREMISES PERMITS
Subd. 1. Any organization seeking to obtain a premises permit from the Board shall file with the city clerk an executed, complete duplicate application, together with all exhibits and documents accompanying the application as will be filed with the Board.
Subd. 2. Upon receipt of an application for issuance of a premises permit, the city clerk may, at the Council’s direction, transmit the application to the county sheriff for review and recommendation. Factors to be used in determining whether to seek a review and recommendation from the sheriff include whether the organization is currently operating gambling operations in the city or elsewhere in a satisfactory manner and whether the organization will release copies of an investigation by an acceptable chief of police or county sheriff conducted within the six months preceding the application.
Subd. 3. In the event a referral for a separate investigation needs to be made, the county sheriff shall investigate the matter and make the review and recommendation to the City Council as soon as possible, but in no event later than 45 days following receipt of the notification by the city.
Subd. 4. Organizations applying for a state-issued premises permit shall pay the city a $100 investigation fee. This fee shall be refunded if the application is withdrawn before the investigation is commenced or if the City Council decides that there is no need to obtain a review and recommendation. If approved by the City Council and the Board, a licensed organization will be responsible for an annual investigative fee for conducting lawful gambling within the city unless the city elects to waive the investigation.
Subd. 5. The applicant shall be notified in writing of the date on which the Council will consider the recommendation.
Subd. 6. The Council shall receive the county sheriff’s report and consider the application within 45 days of the date the application was submitted to the city clerk.
Subd. 7. The Council shall by resolution approve or disapprove the application within 60 days of receipt of the application.
Subd. 8. The Council shall deny an application for issuance or renewal of a premises permit for any of the following reasons:
(i) Violation by the gambling organization of any state statute, state rule, or city ordinance relating to gambling within the last three (3) years.
(ii) Violation by the on-sale establishment or organization leasing its premises for gambling of any state statute, state rule, or city ordinance relating to the operation of the establishment, including, but not limited to, laws relating to alcoholic beverages, gambling, controlled substances, suppression of vice, and protection of public safety within the last three (3) years.
(iii) Lawful gambling would be conducted at premises other than those for which an on-sale
liquor license has been issued.
(iv) Lawful gambling would be conducted at more than 2 premises within the city.
(v) An organization would be permitted to conduct lawful gambling activities at more than one (1) premises in the city.
(vi) More than one licensed organization would be permitted to conduct lawful gambling
activities at one (1) premises.
(vii) Failure of the applicant to pay the investigation fee provided by Subdivision 4 within the
prescribed time limit.
(viii) Operation of gambling at the site would be detrimental to health, safety, and welfare of the community.
Otherwise, the Council shall pass a resolution approving the application.
SECTION 9. LICENSE AND PERMIT DISPLAY
All permits issued under state law or this ordinance shall be prominently displayed during the permit year at the premises where gambling is conducted.
SECTION 10. NOTIFICATION OF MATERIAL CHANGES TO APPLICATION
An organization holding a state-issued premises permit shall notify the city within ten (10) days in writing whenever any material change is made in the information submitted on the application.
SECTION 11. CONTRIBUTION OF NET PROFITS TO FUND ADMINISTERED BY CITY Subd. 1. Each organization licensed to conduct lawful gambling within the city pursuant to Minn. Stat. § 349.16. as it may be amended from time to time, shall co of its net profits derived from lawful gambling in the city to a fund administered and regulated by the city without cost to the fund. The city shall disburse the funds for charitable contributions as defined by Minn. Stat. § 349.12, subd. 7a, as it may be amended from time to time.
Subd. 2. Payment under this section shall be made on the last day of each month.
Subd. 3. The city’s use of such funds shall be determined at the time of adoption of the city’s annual budget or when the budget is amended.
SECTION 12. DESIGNATED TRADE AREA
Subd. 1. Each organization licensed to conduct gambling within the city shall expend one hundred percent (100%) of its lawful purpose expenditures on lawful purposes conducted within the city’s trade area.
Subd. 2. This section applies only to lawful purpose expenditures of gross profits derived from gambling conducted at a premises within the city’s jurisdiction.
SECTION 13. RECORDS AND REPORTING
Subd. 1. Organizations conducting lawful gambling shall file with the city clerk one copy of all records and reports required to be filed with the Board, pursuant to Minn. Stat. ch. 349, as it may be amended from time to time, and rules adopted pursuant thereto, as they may be amended from time to time. The records and reports shall be filed on or before the day they are required to be filed with the Board.
Subd. 2. Organizations licensed by the Board shall file a report with the city proving compliance with the trade area spending requirements imposed by Section 16. Such report shall be made on a form prescribed by the city and shall be submitted annually.
SECTION 14. HOURS OF OPERATION Lawful gambling shall not be conducted between 1 a.m. and 8 a.m. on any day of the week.
SECTION 15. PENALTY Any person who violates any provision of this ordinance; Minn. Stat. §§ 609.75-609.763, inclusive, as they may be amended from time to time; or Minn. Stat. §§ 349.11-349.21, as they may be amended from time to time; or any rules promulgated under those sections, as they may be amended from time to time, shall be guilty of a misdemeanor and subject to a fine of not more than $1,000 or imprisonment for a term not to exceed 90 days, or both, plus in either case the costs of prosecution. In addition, violations shall be reported to the Board and recommendation shall be made for suspension, revocation, or cancellation of an organization’s license.
SECTION 16. SEVERABILITY If any provision of this ordinance is found to be invalid for any reason by a court of competent jurisdiction, the validity of the remaining provisions shall not be affected.
SECTION 17. EFFECTIVE DATE This ordinance becomes effective on the date of its publication, or upon the publication of a summary of the ordinance as provided by Minn. Stat. § 412.191, subd. 4, as it may be amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as it may be amended from time to time.

Passed by the City Council of Myrtle, Minnesota this 12 day of October, 2021

/s/ Mayor

Attested:
/s/ City Clerk

Albert Lea Tribune:
Oct. 20, 2021
ORDINANCE 21-2