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Permit Requirements Permitting requirements are set forth in City Code Section 304, and State Statute, Chapter 349. Lawful garbling is permitted in the City if the organization meets the following criteria: a) Is licensed by the State Gambling Control Board b) Is a tax exempt organization pursuant to 5 01(c) of the interml revenue code c) Maintains a business address within the city d) Complies with all other requirements as set forth in City Code and State Statute The applicant currently meets all local requirements, although licensing by the State is contingent upon local approval. Permitting Considerations As required by City Code, organizations conducting lawful garbling activities must contribute 10% of its net profits (defined as; gross receipts less prizes paid less expenses) derived from said activities into a City- prescribed Fund for the purposes of providing funding for various Roseville-based groups and events. In addition, an organization must pay an amount equal to % of the net receipts (defined as; gross receipts less prizes paid) from lawful gambling activities conducted in the City for the purposes of covering the City's regulatory, administrative, and law enforcement costs. It is unknown as to amount of charitable ironies that will contributed to the Community if the Council approves the license. Based on existing pulltab operations in the City, the average contribution received directly through the City is approximately $5,000 annually for each organization. In addition, these sarne organizations contribute approximately $50,000 annually directly to other groups and events, some of which remains local. In conversations with officials at the State Gambling Control Board, Staff has learned that there may be one area of concern regarding the applicant. The SLEAs members include active law enforcement personnel that are, on occasion, entrusted with policing and/or investigating gambling activities in various capacities. It is conceivable that some of these same individuals may at times be serving as elected or appointed officers of the organization, and/or participating in other capacities of the gambling operation. This could potentially create a situation whereby the independent nature of an oversight body is compromised. Although many policies can be instituted to ensure this does not occur, the perception of the loss of independence may be an issue. The State has not yet taken an official position on the matter, but it will be a consideration in their final decision.