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Council tables cleanup of charitable‑gambling rules after operators call city check redundant
Summary
Council pulled an ordinance to clarify Chapter 112 on bingo and charitable gambling after operators and several council members raised concerns that a city-mandated annual background check and $100 fee would duplicate state oversight; council directed staff to rewrite the measure and tabled final action to the Aug. 19 meeting.
A proposed ordinance intended to clarify the city's rules for charitable gambling prompted a lengthy exchange between council members, city staff and local veterans' and nonprofit gambling operators before the City Council voted to table the item to its Aug. 19 meeting.
Council member McKenzie pulled the draft amendment to Chapter 112 from the consent agenda and asked staff to explain who would be affected. Staff said the change was primarily a cleanup to harmonize North St. Paul's code with state statute and the city's actual practice: the ordinance would clarify that organizations must hold either a state premises permit or a temporary local permit and that the city may, under statute, conduct an annual background check capped at $100.
Operators from local posts told the council they already undergo state licensing, background checks, training, bonding and audits. Dan Bronc, who identified himself as the gambling manager for the North St. Paul American Legion, said his post carries a $10,000 bond, completes state-mandated training and passes state background checks annually, and described a municipal re-check as duplicative. Pete Olson of VFW Post 1350 made a similar point, saying the state conducts audits and compliance reviews.
Council members discussed three discrete questions: whether to require city-conducted background checks of state-licensed organizations, whether to charge a city fee if the check is performed, and whether to clarify the rules for exempt (temporary) permits. Several council members said they were surprised the city code already contained language requiring annual background checks and an older, higher fee amount that the city had not been enforcing in practice.
By the end of the discussion the council gave staff direction not to require the city to perform annual background checks on organizations that already hold state licenses, and not to collect a city background fee for those licensed groups; the council asked staff to redraft the ordinance so temporary/exempt permits and fee language are clear and to return the item for final action at the Aug. 19 meeting.
The chair recognized the practical concern raised repeatedly by speakers: many local charities rely on small margins and on charitable gambling revenue to fund community programs and services; council members emphasized the need to give groups clear notice if local enforcement or fees are to be imposed. Staff said authorities referenced by the discussion include Minnesota statutes governing charitable gambling and the Minnesota Gambling Control Board's licensing framework; the ordinance draft did not change whether the city or state issues the primary license but sought to clarify the city's administrative role.
The ordinance will return in revised form for council consideration on Aug. 19; until then staff will prepare redrafted language and outreach materials for affected organizations.
