605.030. Authorized Organizations.

Only nonprofit organizations which have been licensed or permitted by the State Gambling Control Board and which meet the following requirements may conduct lawful gambling in the city:

   1.   The organization must demonstrate that it holds regularly scheduled meetings, and the meeting location must be within the trade area as defined in section 605.020.

   2.   At least one third of the organization’s members must reside within the trade area as defined in section 605.020.

605.035. Filing of records.

Organizations that make application to the board to conduct lawful gambling in the city, by license or permit must submit copies of all state gambling application forms to the community development director.

605.040. Approval of Premises Permits.

Subd. 1. Application. The board will notify the city when an organization applies for a premises permit under Minn. Stat. ch. 349. The organization seeking to obtain a premises permit under Minn. Stat. ch. 349 must file with the community development director a duplicate of its licensing application and premises permit application as filed with the state, including all exhibits and documents accompanying the applications.

Subd. 2. Investigation. The organization seeking a premises permit must complete the city’s investigation form and a $250 investigation fee. The fee shall be refunded if the application is withdrawn before the investigation is commenced. The chief of police will investigate the matter and make a recommendation to the city council within 45 days following the city’s receipt of the application materials and investigation fee.

Subd. 3. The city council must approve or disapprove the application within 60 days of receipt of the application materials and investigation fee.

Subd. 4. The council shall deny an application for issuance of a premises permit, or for reissuance of a premise permit after suspension, revocation or other termination, for any of the following reasons:

   (a)    The organization does not meet the requirements of this section.

   (b)    The organization has violated any state statute, state rule or city ordinance relating to gambling within the last three years;

   (c)   The entity leasing its premises to the applicant organization has repeatedly violated 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, or protection of public safety within the last three (3) years.

605.045. License and Permit Display.

All licenses and permits issued under state law shall be prominently displayed during the license or permit year at the premises where gambling is conducted.

605.050. Notification of Material Changes to Application.

A licensed 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.

605.055. Contribution of Net Profits to Fund Administered by City.

Subd. 1. Each licensed organization shall contribute ten percent (10%) 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 annually.

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.

605.060. Designated Trade Area.

Subd. 1. Each licensed organization shall expend at least seventy percent (70%) of its lawful purpose expenditures on lawful purposes conducted within the city’s trade area, as defined in section 605.020.

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.