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Ms. Annette Freeman <br />November 22, 1989 <br />Page Four <br />expenditures be made, but rather the procedure of administering <br />those funds that formed the basis of the Court's decision. <br />Under the statute as amended, a requirement for specific <br />expenditures is not considered a tax merely because funds are <br />administered and regulated by the responsible local unit of <br />government. If this statute had been in effect at the time Rice <br />Street V.F.W., Post 43877 vs. City of St. Paul was before the <br />Court, we believe the St. Paul City Ordinance would have been <br />upheld. We discussed this matter with the Assistant St. Paul <br />City Attorney who handled the case on behalf of the City of St. <br />Paul. He infotms us that he requested the new legislation as a <br />result of the Court's decision. In his opinion, the statute <br />essentially overrules that decision. <br />If you have any additional questions regarding this matter, <br />please contact Tom Sweeney or the undersigned. <br />PTO:gc <br />Very truly yours, <br />SWEENEY & BORER <br />Paul T. Ostrow <br />Page 90 <br />