The URL can be used to link to this page

Home My WebLink About15.F.2. Pull-Tab Despensing Device IS.f.;). CITY OF SHAKOPEE Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: Judith S. Cox, City Clerk SUBJECT: Pull-tab Dispensing Device (Vending Machine) DATE: March 27,2003 INTRODUCTION: City Council is asked to give direction on whether or not the Council desires to permit pull-tab dispensing devices on licensed premises selling pull-tabs. BACKGROUND: It has recently corne to the attention of city staff that the charitable gambling laws allow the placement of vending machines in establishments to allow for the sale of pull-tabs. In light of the fact that the city code was amended in 1998 to prohibit the sale of tobacco and tobacco products by the means of a vending machine, this is being brought to the attention of the City Council. The amendment to prohibit sales of tobacco from vending machines was implemented as one of many ways to discourage the purchase of tobacco by persons under the age of 18. Gambling is also prohibited for persons under the age of 18. It has been learned from the State Gambling Control Board that the State does not regulate where premises permits are allowed, nor do they regulate where vending machines selling pull-tabs are allowed. They also advised that there were 350 vending machines used in the State in 2002 and there were 3,216 premises permits issued in 2002. The Shakopee City Code is limited in regulations relating to gambling by charitable organizations. This is overseen by the State Gambling Control Board. Shakopee does require that the proceeds from charitable gambling remain in the city's trade area, which includes cities contiguous to Shakopee. We also require copies of reports to monitor that the proceeds remain in the city's trade area. Some municipalities limit premises permits to on sale and Club on sale liquor establishments. Shakopee does not. Staffhas contacted six cities to learn if they prohibit vending machines and if they limit premises permits to establishments that have on-sale or club liquor licenses. See attached. Pull- Tab Dispensing Device March 24, 2003 Page -2- There are 11 licensed premises permits in Shakopee. There are no vending machines located on any licensed premises selling pull-tabs in Shakopee, at this time. As a matter of coincidence, all licensed premises are also licensed for on sale or club on sale intoxicating liquor. The Minnesota Jaycees Charitable Foundation is going to be making application for a premises permit and would like to order and install a vending machine at Silvers Cue Club LLC, 1141 Canterbury Road. Before they place the order to purchase a used vending machine, they are interested in knowing whether or not vending machines will continue to be allowed. Mr. Mark Ewert, Minnesota Jaycees Charitable Foundation, advises that some of the cities that allow vending machines include: White Bear Lake, Brooklyn Center, Minneapolis, St. Cloud, Stillwater, Breckenridge, Duluth, and St. Paul. ALTERNATIVES: 1. Status quo, do not prohibit the use of vending machines for the sale of pull-tabs on licenses premises whether or not there has been an on sale liquor license issued for the premise. (Pull-tabs anywhere and vending machines anywhere) 2. Prohibit the use of vending machines for the sale of pull-tabs on licensed premises, except those establishments holding an on sale liquor license. (Pull-tabs anywhere, vending machines where liquor is sold only) 3. Prohibit the use of vending machines for the sale of pull-tabs on all licensed premises whether or not there has been an on sale liquor license issued for the premise. (Pull-tabs anywhere and no vending machines anywhere) 4. Prohibit the sale of pull-tabs to all establishments except those who also hold an on sale liquor license. (Pull-tabs limited to where liquor is sold and vending machines permitted) 5. Other RECOMMENDATION: Discuss the use of vending machines for the sale of pull-tabs on licensed premises and give staff direction if any changes to the current ordinance are desired. 1:\c1erk\PulI-tab vending machine Pull-tab Dispensing Devices Are premise permits Do you have an limited to ordinance to Do you have any establishments that prohibit dispensing dispensing devices have on-sale or club devices? in your City? liquor licenses? Chaska No No Yes Burnsville No No Yes Inver Grove Heights No No Yes Prior Lake No No No Bloomington No No No Lakeville No No No 3/24/03 , upon conviction, be subject to a fine of not more than $500.00.plus the costs of prosecution. Each act of violation and each day a violation occurs or continues constitutes a separate offense. (Ord. 108, November 18,1982; Ord. 145, May 24, 1984; Ord. 337, July 23, 1992) -CSEC. 1'():61~'~~~~IN~ Subd. 1. Definitions. A. "Lawful gambling", "lawful purposes", and "licensed organization" shall be defined as set forth in Minn. Stat. Chapter 349. B. "Trade area" shall mean the City of Shakopee and each city contiguous to the City of Shakopee. Subd. 2. Lawful Purposes. Each licensed organization conducting lawful gambling within the . City shall expend 75% of its expenditures for lawful purposes on lawful purposes conducted.or located within the city's trade area. Subd. 3. Exceptions. A. Any organization holding a State organization gambling license may conduct not more than one raffle in any given calendar year jf it is held in conjunction with a banquet and/or a dance, without complying with Subd. 2. B. Any organization exempt under Minn. Stat. 349.166 may conduct not more than five raffles in any given calendar year, without complying with Subd. 2, if, prior to selling any raffle tickets, the organization submits proof satisfactory to the City that more than 75% of the raffle tickets are reasonably expected to be sold to non-residents of the City of Shakopee. Proof may include evidence that the tickets shall be sold statewide, at a facility with a large regional attraction, or to a set of people not generally found in Shakopee (e.g. members of an organization of whom fewer than 25% are Shakopee residents). Subd. 4. Application. An organization seeking to obtain a State gambling premise permit shall file in the office of the City Clerk an executed, complete duplicate application, together with all exhibits and documents accompanying the application to be filed with the State board; prior to Council approving a premise permit. page I1Svised in 1995 . 966 J . Subd. 5. Records and Reports. Organizations with a premise permit in Shakopee shall file with the City Clerk one (1) copy of all records and reports required to be filed with the State board, pursuant to state law, rules and regulations. Such records and reports shall be filed on or before the day they are required to be filed with the State board. (Ord. 182, August 29, 1985; Ord. 189, March 13, 1986; Ord. 297, November 30, 1990; Ord. 345, November 12, 1992) SEC. 10.62. TRESPASS UPON LAND FOR THE PURPOSE OF USING CONTROLLED SUBSTANCES. Subd. 1. Unlawful Acts. It is unlawful for any person to do any of the following: A. Trespass by Individual. The uninvited entry on to land of another for the purpose of using controlled substances. B. Trespass by Motor Vehicles. The uninvited entry by motor vehicle on the land of another to facilitate the use of controlled substances. /5:F.1.. ALTERNATIVES RELATING TO THE SALE OF PULL-TABS IN ESTABLISHMENTS AND THE USE OF VENDING MACHINES April 1, 2003 PULL-TABS VENDING MACHINES LIQUOR LIQUOR AL TER- ANYWHERE ESTABLISH- NONE ANYWHERE ESTABLISHMENTS NATIVE ALLOWED MENTS ALLOWED ALLOWED l. X X 2. X X 3. X X 4. X X 1:\clerk\Pull-tab vending machines table