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<br />Minn. Rule part 7861.0140. <br /> <br />Minn. Stat. S 349.213. <br /> <br />Minn. Stat. s 349.213. <br /> <br />Minn. Stat. S 349.213; Minn. <br />Stat. S 349.166; See PartY. <br /> <br />Minn. Stat. S 349.213. <br /> <br />12 <br /> <br />vi. The organization complies with reporting requirements to the <br />Board. <br /> <br />An organization that conducts exempted lawful gambling must submit an <br />application to the Board at least 30 days before the gambling activity is to be <br />conducted. The application fee for each exempted activity is $25. A <br />completed local government notification form must be attached to the <br />application. <br /> <br />Cities may require organizations that conduct exempted lawful gambling to <br />obtain local permits. The fee for a local permit may not exceed $100. <br /> <br />VI. Local regulation <br /> <br />Cities may not require state licensed lawful gambling organizations to obtain <br />local gambling licenses or permits. However, state law does allow cities to <br />regulate lawful gambling. Cities have the authority to adopt gambling <br />regulations that are more stringent than state law. A city may prohibit lawful <br />gambling altogether. Or, a city could restrict the conduct ofJawful gambling <br />to certain hours or to certain days of the week. A city could also prohibit <br />licensed organizations from employing non-members and could limit the <br />prizes to be awarded. <br /> <br />The law specifically allows cities to: (a) require a local permit for the <br />conduct of gambling exempt from state licensing requirements; (b) require <br />organizations to make specific expenditures of up to 10 percent of the net <br />profit from lawful gambling; ( c) require organizations to contribute 10 <br />percent of the net profit from lawful gambling to a fund administered by the <br />city; (d) require an organization to expend all or a portion of its expenditures <br />within the cities trade area; (e) charge an investigation fee; and (g) impose a <br />gambling tax. <br /> <br />A. Local permits <br /> <br />Cities may require a local permit for the conduct of lawful gambling exempt <br />from state licensing requirements. The fee for a local permit may not exceed <br />$100. <br /> <br />B. Specific expenditures <br /> <br />Cities may require organizations to make specific expenditures of up to 10 <br />percent of net profits derived from lawful gambling, but cities must be <br />careful when enacting such a regulation. Requiring specific expenditures <br />may violate the U.S. Constitution, at least where the city designates too <br />specific a cause, and approval of a gambling license or permit is conditional <br />on the organization abiding by the regulation. <br /> <br />League of Minnesota Cities <br />