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DORSEI 42 <br /> its ordinance on charitable gambling a provision that provides that charitable gambling is limited <br /> to only one location in the City and that only one licensed organization is permitted to conduct <br /> charitable gambling at that location. By doing so the City may be able to effectively retain <br /> control of which licensed organizations conduct charitable gambling in the City. If in the future <br /> the Council wishes to expand the number of locations where charitable gambling may be <br /> conducted, it could then amend the ordinance. <br /> As I previously advised you, the City may by ordinance require a licensed organization <br /> conducting lawful gambling in the City to expend within the City's trade area all or a portion of its <br /> expenditure for lawful purposes of its gross profits. The ordinance must define the City's trade <br /> area and specify the percentage of lawful purposes expenditure to be expended within the trade <br /> area. The City's trade area must include at a minimum each city contiguous to the City. Should <br /> the City Council wish to require an organization to make all or a portion of its expenditures <br /> within the City's trade area, set forth below is proposed new Section 535.03 of the City Code <br /> which it could be included in the ordinance the City council is presently considering on <br /> charitable gambling: <br /> "Section 535.03. Expenditure by Licensed Organization Conducting Lawful Gambling. <br /> Each licensed organization conducting lawful gambling within the City must expend_percent <br /> of its lawful purpose expenditures on lawful purposes conducted or located within the trade area <br /> of the City. The trade area of the City for this.purpose shall include the City and all cities <br /> contiguous to the City. This section applies only to lawful purpose expenditures of gross profits <br /> derived from lawful gambling conducted on a premises within the City. At the end of each <br /> licensed organization's fiscal year, each organization must file with the City a report prepared by <br /> an independent certified public accountant documenting compliance with the requirements of <br /> this section." <br /> 2 <br /> DORSEY&WHITNEY LLP <br />