HomeMy WebLinkAbout15.F.1. Pull-tab Dispensing Devices-Ord. No. 661
IS. F I '
CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Judith S. Cox, City Clerk
SUBJECT: Pull-tab Dispensing Devices
DATE: April 11, 2003
INTRODUCTION:
The attached Ordinance has been prepared for City Council consideration. It will limit
the sale of pull-tabs (Premises Permits) and the use of vending machines for the sale of
pull-tabs to premises holding on-sale and Club on-sale intoxicating liquor licenses, with
some exceptions.
BACKGROUND:
At the regular meeting on April 1, 2003, City Council was made aware that the sale of
pull-tabs by way of vending machines are permitted by law. Council discussed
prohibiting the sale of pull-tabs in certain establishments as well as prohibiting the use of
vending machines for sales of pull-tabs in certain establishments. During the discussion a
question was also raised as to how any prohibition would affect the sale of pull-tabs at
annual church festivals. Council directed staff to prepare an ordinance prohibiting the
sale of pull-tabs except for premises holding an on-sale liquor license and to allow the use
of vending machines on these premises only. (Of the 11 Premises Permits in Shakopee,
none are currently using a pull-tab dispensing device.)
During the meeting on April 1, 2003, there was a question raised as to whether or not the
State already regulated where pull-tabs can be sold and where vending machines can be
placed. Staff was originally advised by a State employee that the State did not regulate
either. Upon further investigation, staffhas learned that the State does not regulate where
pull-tabs are sold, but the State does limit the placement of vending machines for the sale
of pull-tabs to premises holding a 3.2 percent malt license, wine license, or on-sale
intoxicating liquor license.
The attached ordinance limits Premises Permits, the sale of pull-tabs, and the use of
vending machines to on-sale and club on-sale intoxicating liquor establishments. This
prohibits the sale of pull-tabs in establishments holding a 3.2 percent malt or a wine
Pull-tab Dispensing Devices
April 11, 2003
Page -2-
license: Dangerfield's Restaurant (Panzanella), Valleyfair, Raceway Park, Pizza Hut,
Caffe La Barra, and Silvers Cue Club. You may remember that the Minnesota Jaycees
Charitable Foundation, 2120 West Highway 13, Burnsville, desires to obtain a Premises
Permit and install a vending machine for the sale of pull-tabs at Silvers Cue Club in
Shakopee. The ordinance as drafted would not allow a Premises Permit at .Silvers Cue
Club.
The ordinance as drafted does include an exemption thereby permitting the sale of pull-
tabs for organizations obtaining an Application for Exempt Permit (maximum of 5 days)
and obtaining an Application to Conduct Annual Off Site Gambling (maximum of 12
days) from the Minnesota Gambling Control Commission. This would allow the
churches to continue to sell pull-tabs at their annual festivals and would allow a licensed
organization to sell pull-tabs during Derby Days.
ALTERNATIVES:
1. Adopt Ordinance No. 661, limiting the sale of pull-tabs to on-sale intoxicating
liquor establishments, with some exceptions.
2. Status quo, do not limit the sites for the sale of pull-tabs (however the use of
vending machines is limited by the State to on-sale beer, wine and liquor
establishments).
3. Amend Ordinance No. 661 to limit the sale of pull-tabs to on-sale beer, wine and
liquor establishments, with some exceptions (the use of vending machines is
already limited by the state to these establishments). This would allow the sale of
pull-tabs at Silvers Cue Club and other establishments hold an on-sale beer or
wine license, but no other establishments.
4. Do not provide for exceptions for the sale of pull-tabs for special events if
selecting alternative 1 or alternative 3 (Application for Exempt Permit and
Application to Conduct Annual Off Site Gambling). This would not allow the
sale of pull-tabs at special events i.e.: church festivals.
RECOMMENDATION:
Alternative No.1, limit Premises Permits, the sale of pull-tabs, to on-sale intoxicating
Liquor establishments because the presence of persons under the age of 21 is already
limited by state law thus reducing the possibility of persons purchasing pull-tabs who are
under the age of 18.
Pull-tab Dispensing Devices
April 11, 2003
Page -3-
RECOMMENDED ACTION:
If Council concurs with the staff recommendation:
Offer Ordinance No. 661, Fourth Series, An Ordinance of the City of Shako pee,
Minnesota, Adding Subdivision 6 to Section 10.61 of the City Code Pertaining to
Premises Permits for Lawful Gambling, and move its adoption.
I:clerk\Licenses\Pull-tab vending machine
ORDINANCE NO. 661, FOURTH SERIES
AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA,
ADDING SUBDIVISION 6 TO SECTION 10.61 OF THE CITY CODE PERTAINING TO
PREMISES PERMITS FOR LA WFUL GAMBLING
THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS:
Section 1. Section 10.61 ofthe City Code is amended by adding the following subdivision:
Subd. 6. Location Restriction. Lawful gambling for which a license is required from the
Minnesota Gambling Control Board may only be conducted at a location for which an on-sale
intoxicating liquor license or on-sale club license has been issued, and pull-tab dispensing devices
may be used at such locations. Any organization that is exempt from obtaining a state license in
order to conduct lawful gambling is exempt from this location requirement, but any such
organization must not use pull-tab dispensing devices.
Section 2. Effective Date. This ordinance becomes effective from and after its passage and
publication.
Adopted in session of the City Council of the City of Shakopee,
Mhmesota held the _ day of ,2003.
Mayor of the City of Shakopee
ATTEST:
City Clerk
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