5.1. SR 08-22-1994
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ITEM 5. 1.
MEMORANDUM
TO: Mayor and City Council
FROM: Sandy Thackeray, City Clerk
DATE: August 16, 1994
SUBJECT: Request to American Legion for
donation of $1,300 from Charitable
Gambling funds for the purchase of
flags
INTRODUCTION
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The American Legion has asked the City to formally request a donation of
$1,300 from Charitable Gambling Funds. The money will be used to
purchase American flags to be replace the flags that are currently located
along Highway 10 and Main Street.
BACKGROUND
"American Flags" are not specifically listed as a "lawful purpose expenditure"
under the charitable gambling state statute. Therefore, the American Legion
cannot directly purchase the flags with charitable gambling funds. The state
statute does, however, allow contributions from charitable gambling funds to
be made to "political subdivisions." This allows the political subdivision to
make the request for funds for these types of items.
The particular state statute relating to this issue is as follows:
SS 349.12, Subd. 24 (10) "Lawful Purpose" - '~ contribution to the United
States, this state or any of its political subdivisions, or any agency or
instrumentality thereof other than a direct contribution to a law enforcement
or prosecutorial agency. "
I contacted the Gambling Control Board regarding this issue and was
reassured that this type of request is legal and commonly used by other
municipalities and organizations.
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P.O. Box 490. 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
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RECOMMENDATION
Motion to request $1,300 from the American Legion for the purchase of
American flags to be located along Highway 10 and Main Street.
council\f1ags.doc
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