1f Approval of Gambling Permit, St. Hubert's
~
CITY OF
CHANHASSEN
MEMORANDUM
TO:
Mayor and City Council
o City Center Drive, PO Box 147 FROM:
~hanhassen, Minnesota 55317
Phone 612.937.1900 DA TE:
General Fax 612.937.5739
:,zgineering Fax 612.937.9152 SUBJ:
'ub/ic Safety Fax 612.934.2524
Web www.ci.chanhassen.mn.us
Scott Harr, Public Safety Director
April 22, 1998
Approval of Gambling Permit, S1. Hubert's Church
Attached please find a request from 81. Hubert's Church for a gambling permit for
their annual church festival on August 15 & 16, 1998. Background checks have
been completed and no negative comments were found.
Approval is recommended.
be City of ClwzhasseIl. A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, and beautiful parks. A great place to live, work, and play.
Organization Information
Organization nam~ _... +-;;:... C' l/L _I, (Y L , t!~vious lawful gambling exemption number
5t. u~YI J J(rno({ / LrtUr(J) x- locol
Bioi (f/rVn& rmh(]/f.;lj) StateJZip ode County
For Board Use Only
Fee Paid . .
.
Check No.
Initials
Received I J_
Minnesota Lawful Gambling
Application for Exempt Permit - LG220
Name of chief executive officer (CEO) of organization
First .ame hen L1 ~JCl
Name of easurer of organization
Fjtff BlALr~~sILi
Daytime phone number of
CEO: ( ) q3LJ- q (tXo
Daytime phone number of
treasurer: ( )
Type of Nonprofit Organization
Check the box that best describes your organization:
o Fraternal ~eligiOUS
o Veteran 0 Other nonprofit organization
Check the box that indicates the type of proof your organization attached to this application:
o IRS letter indicating income tax exempt status
o Certificate of Good Standing from the Minnesota Secretary of State's Office
o A charter showing you are an affiliate of a parent nonprofit organization
I .
[QJ Proof previously submitted and on file with the Gambling Control Board
Gambling Premises Information
Name of premises where gambling activity will be conducted (for raffles, list the site where the drawing will take place)
Sf. HUIx(~ ca 0 Ife CI1L~ rC,h
Address (do not use PO box) City
8Z0( rn~j(l {;t C:nMhui;:1€n
Date(s) of activity (for raffles, indicate the date of the drawing)
All U?
StatelZip Code
mN !333t
County
(2~vveY
Check the bo r boxes that indicate the e of gambling activity your organization will be conducting:
~in90 ~ffleS ~addlewheelS ~u1l-T.bs ~oardS
*Equipment for these activities must bl::'ined from a licensed diZ;;:tor. / ~
This form will be made available in alternative format (i.e. large print, Braille) upon request.
The information requested on this form will become public information when received by the Board, and will be used to determine
your compliance with Minnesota statutes and rules governing lawful gambling activities.
Page 1 of 2
3/98
Application for Exempt Permit - LG220
Page 2 of 2
3/98
-
Organization Name
Local Unit of Government Acknowledgment (Required by Statute)
'fthegambllng premlsesJs wfthincity limits, the ..
clty.rnus.t t>>'grt th~.applicatfon~,
On behalf of the city, , acknowledge this application
and three options for the city:
1. Approve the application: By taking no action,
the city allows the Board to issue a permit after
30 days (60 days for a first class city).
2. Waive the above-noted waiting period: The
city allows the Board to issue a permit before
30 days (60 days for a first class city). Docu-
mentation attached.
3. Deny the application by passing a resolution
within 30 days (60 days for a first class city).
Title
Date I
---.;
1---.;
If the gambling premises is located In a township, both
thecou~ty~and township must sign this application.
On behalf of the county, I acknowledge this application
and three options for the county:
1. Approve the application: By taking no action, the
county allows the Board to issue a permit after 30 days.
2. Waive the above-noted waiting period: The county
allows the Board to issue a permit before 30 days.
Documentation attached.
3. Deny the application by passing a resolution within
30 days.
Print name of county:
(Signature of county personnel receiving application)
Title
Date---.;I I
---.;
On behalf of the township, I acknowledge that the
organization is applying for exempted gambling activity
within the township limits.
A township has no statutory authority to approve or deny
an application (Minn. Stat. sec. 349.213, subd. 2).
Print name of townShip:
(Signature of township official acknowledging application)
Title
Date-l-l---.;
Print name of city:
(Signature of city personnel receiving application)
Chief Executive Officer's Signature
The'infcm'.ation Provided in this apPlir..tiO~ i~ete and accurate to the best of my knowledge.
Chief Executive Officer's signature ~ Z t ~
Name (please print) F'p , -SL ~L LILt I <-Ie. Date If I..!:LJ~
Mail Application and Attachment(s)
At least 45 days prior to your scheduled activity date send:
· the completed application;
. a copy of your proof of nonprofit status, and
. a $25 application fee (make check payable to "State of Minnesota"). Application fees are not prorated,
refundable, or transferable.
Send to: Gambling Control Board
1711 West County Road B, Suite 300 South
Rosevllle, MN 55113
If your application has not been acknowledged by the local unit of government, do not send the application to the
Gambling Control Board.
Application for Exempt Permit - LG220, Information Sheet
3/98
Who may be issued an
exempt permit?
An exempt permit can be issued to nonprofit organizations conducting lawful gambling activity
on five or fewer days, and awarding less than $50,000 in prizes during a calendar year.
Complete a separate application for each occasion. An occasion may be either:
1. One day of gambling activity.
. If your organization wants to conduct gambling activity on April 5, May 5, and June 5, you
must submit a separate application and fee for each activity date.
-OR-
2. Two or more consecutive days of gambling activity.
. If your organization wants to conduct gambling on July 3, 4, and 5 at the same site, you may
submit only one application and one fee.
If you are conducting a raffle, each day a drawing is held constitutes one day of gambling. If
drawings are held on more than five days in a calendar year, your organization must obtain an
organization license, a gambling manager's license, and a premises permit.
Separate applications
required
How to Obtain a Copy of Proof of Nonprofit Status
Minnesota Secretary. of State
Gertificate.of Good Standin9 _Nonprofit Articles of
Incorporation
Attach a copy of your organization's. Certificate of Good
Standing (31.7 A) showing incorporationasa nonprofit
organization.
OR
IRS Incorne Tax Exemption
Wnder a national ol'9anization
If your organization falls under a national organization,
attach both ofthe following:
1.a copy of the. IRS letter showing that your national
organization has been a registered nonprofit 501 (c)
organization and carries a group ruling, and
2. a copy ofthe charter, or letter from your national
organization, recognizing your organization as a
subordinate.
This certificate can be obtained from the Minnesota
Secretary of State:
Minnesota Secretary of State
Business Services Division
180 State Office Building
St. Paul, MN 55155
Phone: (612) 296-2803
Not under a national or9anization
If your organization does not fall under a national
organization,attach a copy oftpe I~S income tax
exemption [501 (cn letter in the name of your
organization, showing income tax exempt status.
To obtain a copy of your federal income tax exempt
letter,send your federallD number and the date your
organization initially applied for tax exempt status to:
IRS .
P.O. Box 2508
4010
Sales tax exempt status or federal 10 employer numbers are not proof of Income tax exempt status.
. On the first working day of the month in which your gambling activity is being held, the Gambling
Control Board will send your organization a financial report form and instructions.
. Complete and return the financial report form to the Board within 30 days of your date of activity.
. Your organization must keep your gambling records for 3-1/2 years.
Call the licensing Section ofthe Gambling Control Board at (612) 639-4000. If you use a TTY, you
can call the Board by using the Minnesota Relay Service at 1-800-627-3529 and ask to place a call
to (612) 639-4000.
Financial report and
recordkeeping required
Questions?
EXPENDITURES OF GAMBLING FUNDS - EXEMPT AND EXCLUDED ORGANIZA TrONS
All gambling expenditures from your gambling account must be for:
· lawful purposes authorized by statute, and
· allowable expenses that are directly related to lawful gambling.
This chart lists the lawful pUrpose expenditures (contributions) that are allowed (If you need additional
information, the codes, such as A-I, A-2, etc., correspond to language contained in Minnesota Statutes,
section 349.12, subd. 25.)
A-I
-loand by 501 (c)(3) organizations
- to and by 501(c)(4)festival
organizations
A-4
funding a public or private
nonprofit education institution
registered with or accredited by
Minnesota or any other state
A-'
for activitiesandfaciIities
benefiting youth underage 21
A-IO
- contributions to the United States,
state of Minnesota, or any of its
subdivisions or agencies or
instrumentalities (except a direct
contribution to a law enforcement
or prosecutorial agency)
- a fund administered and regulated
by a city or county (for lawful
purposes)
A-I3
wildlife managementprojectthat ..... ...
benefits thepublic-at-Iarge. .
provided that . the Department. of
Natural Resources approves it
before the expenditure is made
A-2
relieving the effects of poverty ,
homelessness, or physical or
mental disability
A-S
a scholarship fund
A.,.8
payment of local,state,and
federal. taxes on receipts from
lawful gambling
A-l1
to and by a nonprofit
organization which is a church
or a body of communicants
A..14
costs.. related to grooming and
maintaining snowmobile trails
thataregrant..in-aidtrails ,or
othertrailsop.e n to public u. .s. e,
0", '. .,'. .... '. '..
provided .thattheconimissioner
. (>fnaturalresources..has
approved. tlu~expenditurebefore.
itiSlllade. .. .
A-3
treatment of:
- delayed posttraumatic stress
syndrome
- compulsive gambling
A-6
recognition of humanitarian or
military service
A-9
real estate . taxes and
assessments on gambling
premiseswhoJIy owned by the
organization
A-I2
one-half of the reasonable
costs of a required audit or
financial review of the
gambling operation (for
licensed organizations only)
A-IS
conducting nutritional
programs, food shelves, and
congregate dining programs
primarily. for persons who are
age 62 or older or disabled
EXPENDITURES OF GAMBLING FUNDS - EXEMPT AND EXCLUDED ORGANIZATIONS
These lawful purpose expenditures require prior Gambling Control Board approval.
~._..::c~-----
B-3 (i) For costs relating to the erection, acquisition, improvement, LG266
expansion, repair, or maintenance of real property or capital
assets that will be used exclusively for lawful purposes and are
owned or leased by the organization.
B3-A7 For facilities intended primarily for persons under age 21. LG266
B-3(ii)
B-3 (iv)
For costs relating to the repair and maintenance of property
owned or leased by the organization, provided the property
will be used extensively as a meeting place or event location
by other nonprofit organizations or community or service
groupS and no rental fee is charged for the use.
For costs relating to the acquisition or erection of a
comparable building to replace an organization-owned building
destroyed or made uninhabitable by fire or natural disaster,
provided the expenditure is only for the part of the
replacement cost not reimbursed by insurance.
For costs relating to the acquisition or erection of a
comparable building to replace an organization-owned building
acquired from the organization by eminent domain, provided
the expenditure is only for the part of the replacement cost
exceeding the amount received by the organization for the
building being replaced.
LG261
LG262
B-3(ili)
LG263
Defmition of allowable
expense
Maximum percentage
allowed
An aiiowable expense is the percentage of the total cost inc.urred
by your organization in the purchase of any good, service, or
other item which corresponds to the proportion of the total actual
use of the good, service, or other item that is directly related to
the conduct of lawful gambling.
An allowable expense could be for gambling equipment such as
pull-tabs, bingo paper, raffle tickets, bingo blower, paddlewheel
tickets, tipboard games; or for advertising, or any services or
goods that are directly related to the conduct of your gambling.
The maximum percentage of gross profits that your organization
may spend on allowable expenses is:
. 55 %, for all forms of lawful gambling except bingo
. 65 % (less tax imposed), for bingo
Examples
EXEMPT AND EXCLUDED ORGANIZATIONS
i:;~'~;fs:i~i.~~~;,:1":::::2:.................~...
Raffle prize
limitations
.. Ownership and
.value of prizes
Raffle log book
required
. Sellers must return
stubs
No sales after
drawing begins
into raffle
. Equal chance
< to win
Use of receptacle
required
. AUendance
lIof required
Raffle date change
needs Board
approval
Exempt Organization. The value of all raffle prizes, including donated prizes, awarded by
an exempt organization cannot exceed a total of $50,000 total prizes awarded in a calendar
year, including $12,000 cash prizes for a single raffle or for more than one raffle where the
drawings are conducted on the same day.
Excluded Organization, The value of all raffle prizes, including donated prizes, awarded by
an excluded organization cannot exceed a total of $750 in a calendar year.
Ifreal or personal property prizes are awarded, you must own or fully pay for all the real or
personal property--without lien or interest of others--before the drawing to determine the
... grize winners.
Real and personal property prizes must be valued at the actual market value or the suggested
market value, whichever is less.
For each raffle, maintain a log book with the fOllowing information:
· name of your organization . number of tickets each person sold
· total number of tickets printed . number of tickets each person returned
· price per ticket 4nsold
· date of the raffle drawing . actual gross proceeds reported by each
· names and telephone numbers of all person to whom tickets were given to be
persons to whom tickets were given to be sold
sold . actual cash received from each person to
· number of tickets given to each person to whom tickets were given to be sold
sell . cash long or short reported by each
· consecutive numbers of the tickets given person to whom tickets were given to be
to each person to sell sold
Before the drawing, each person who sells tickets for your organization must return the
stubs or other detachable section of all tickets sold, and all unsold tickets.
No tickets may be sold after the first drawing.
In order to enter a raffle, no person is required to:
· purchase more than one ticket
.. pay for anything other than the ticket
The cost of each ticket must be the same and may not be discounted. For example, a $1
ticket may not be discounted as 6 for $5.
ticket for entry in a raffle must constitute an equal chance to win in the raffle.
· Before drawing, place the stub or detachable section of each ticket sold into a receptacle
from which the winning tickets are drawn.
· Be sure the receptacle is designed so that each winning ticket placed in it has an equal
chance to be drawn.
/Aperson does not need to be. present at ~raffle dra",ingtobeeligible for the prize
....dr~\Ving... . . ..... ........ .... . ..
The Board will approve a drawing date change for two reasons only:
· the weather caused postponements of the event on the day the drawing was to be held
· not enough tickets were sold to Cover the cost of the prizes
The Board will not approve a drawing date change because the desired level of profit was
not obtained. To obtain Board approval, write a letter to the Board stating the reasons why
the raffle date needs to be changed. Send your letter to:
Gambling Control Board
Suite 300 South, 1711 W. County Road B
Roseville, MN 55113
2/98
r:lsharpdlfnr",.IDv._Rl_ .L_
RAFFLE TICKET REQUIREMENTS
Numbers are sequential - Raffle tickets are sequentially
numbered, beginning with the number "1".
Stubs are detachable - Each ticket must have a detach-
able stub with:
. a space for the purchaser's name, address, and
phone number
. a duplicate number corresponding to the ticket
number
Combining raffle with other purchase - Combining a raffle
with the purchase of another item on the same ticket is
not allowed.
Each raffle ticket must contain:
. name of your organization (for exempt organiza-
tions, list the exempt number obtained from the
Gambling Control Board for your raffle)
. time, date, and location of the drawing
. price of the ticket (all tickets must be sold for the
same price and may not be discounted--for
example, a $1 ticket may not be discounted as 6
for $5)
. all prizes to be awarded
Price of Ticket
Purchaser Name, Address,
and Phone Number
Location of
Drawing
Prizes to
be Awarded
$1.00
Name
MAY DAY RAFFL
Address
State
1st Prize - $500 Cash
2nd Prize -13 Inch Color TV
3rd Prize - 12 Speed Bike
Aquatore Park - 91st and Central Ave.
Blaine, MN
City
Zip Code
I Sponsored by the
Blaine Community Club
(Exempt Number)
May 1, 1998
1 :00 p.m.
0001
phone #
Organization Name
(and Exempt Number)
Date and Time of
Drawing
Consecutive Number Matches
Raffle Ticket
Consecutive Number Matches
Ticket Stub
2198
r:\Sharedlpagemakr\generaflexraffJe.pm5
.. ::::::::::::::::::::::::::;:: ...
EXEMPT AND EXCLUDED ORGANIZA nONS
....:.:.:.:.....;.:...........
. .
..... ..
..........
Prizes per bingo occasion may nor exceed $2,500, no, including cover-all games. If Cover-all games are conducted, the 'otal
prizes per bingo occasion may not exceed $3,500 (that is, $2,500 plus the cover-all of up to $1,000). Prizes awarded for
progressive games are not subject to the limits established for bingo occasions.
Type of Game
Description
Single game
A bingo game other than a cover-
all or progressive game.
A bingo game where all spaces on
the bingo face must be covered.
A game in which the value of the
prize increases depending upon
whether the prize was won at a
previous occasion.
Cover-all game
Progressh'e
game
Gambling equipment not allowed as prize
Prizes may not consist of gambling equipment (such as
pull-tabs, tipboard tickets, raffle tickets, or
paddlewheel tickets), except for coupons to redeem
bingo hard cards or bingo paper.
Bi!igoprizes - value, ownership
Donated prizes - Donated bingo prizes must be valued
attheirfairmarketvalue....Fairmarket value is whata
Willing buyer would pay a wilIingsellerwhenneither
has to buy Or seIIand.bpthareaware of the conditiOns
of the sale. . .
.- .........-. .-- -..
.--...."......-..
. .--.--........
...-.-....._-.....,.".. ..... . .......,. '.' ".', .,' ...-,_.,...-_..'...,....- .'-'
""-""-'-- """, --"--..
.......".." . ..... .. '.. -..... - ....... -. - -.. .. -. -" - ..... ..
Merchandise prizes- Merchandiseprizesrnust be
valued. at their fair market v,l!ue,md cannot be ..
redd::IlledJor cash or converted into cash.
'''.. "..... .
(>\Vl1ershi12- Real or personal property. prizes must be
pai~Jorwithout lien or interest by others prior to the.
occasion.
Savings bonds- Savings bonds must be announced and
reponed at their purchase price.
EXAMPLE - A $50 savings bond would be announced
as $25. ..
Prizes
May not exceed $200.
May not exceed $1,000 for all cover-all games played during an
occasion.
· Up to $2,000.
· May stan at up to $300 and increase by up to $100 per
occasion.
· Progressive prizes may not exceed $36,000 in any calendar
year.
Consolation priz~
· Up to $100 where a progressive game is played and the
accumulated prize is not won.
· Consolation prizes count toward the occasion limit of $2,500.
Additional information
For additional information, you may wish to obtain a copy of
the Lawful Gambling Manual, an easy-to-use reference guide
for the conduct of lawful gambling, or a copy of statutes and
rules that govern lawful gambling. There is a charge for the
copies. Contact:
Minnesota's BOOkstore
1I7 University Avenue
S1. Paul, MN 55155
Phone: 1-800-657-3757 or 612-297-3000
References
Statutesand.rules contain regulatory requirements for the
coDduclofbingo. Thosereferences are:
. -.... '. ........-.....- "...
Minn. Statutes 349.12 .... Definitions
Minn.Statutes349 .17;... Conduct of Bingo
Mirin.$tatlltes349.18 .... Premises U sed For Gambling
Minll.Statutes349. 19 .. .... Records. and Reports
Millll.\Statutes349.211.... Prize Limits .
Minn'Rules 786LOOIO..Definitions .
Minn.l~ldes786L0060..Conduct of LawfulGambling
Minn. Rules 786L0070..Bingo ...
2/98
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