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<br />I ~"-( <br />( II <br />1ft{ River <br /> <br /> <br />ITEM 5. 1. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Sandy Thackeray, City Clerk <br /> <br />DATE: August 16, 1994 <br /> <br />SUBJECT: Request to American Legion for <br />donation of $1,300 from Charitable <br />Gambling funds for the purchase of <br />flags <br /> <br />INTRODUCTION <br /> <br />. <br /> <br />The American Legion has asked the City to formally request a donation of <br />$1,300 from Charitable Gambling Funds. The money will be used to <br />purchase American flags to be replace the flags that are currently located <br />along Highway 10 and Main Street. <br /> <br />BACKGROUND <br /> <br />"American Flags" are not specifically listed as a "lawful purpose expenditure" <br />under the charitable gambling state statute. Therefore, the American Legion <br />cannot directly purchase the flags with charitable gambling funds. The state <br />statute does, however, allow contributions from charitable gambling funds to <br />be made to "political subdivisions." This allows the political subdivision to <br />make the request for funds for these types of items. <br /> <br />The particular state statute relating to this issue is as follows: <br /> <br />SS 349.12, Subd. 24 (10) "Lawful Purpose" - '~ contribution to the United <br />States, this state or any of its political subdivisions, or any agency or <br />instrumentality thereof other than a direct contribution to a law enforcement <br />or prosecutorial agency. " <br /> <br />I contacted the Gambling Control Board regarding this issue and was <br />reassured that this type of request is legal and commonly used by other <br />municipalities and organizations. <br /> <br />. <br /> <br />P.O. Box 490. 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />