5.32.120 Keeping of profits or proceeds in separate fund or account.
A. With respect to organizations exempt from payment of the bank and corporations tax by Section 23701(d) of the Revenue and Taxation Code, all profits derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Such profits shall be used only for charitable purposes.
B. With respect to other organizations authorized to conduct bingo games pursuant to this section, all proceeds derived from a bingo game shall be kept in a special fund or account and shall not be commingled with any other fund or account. Proceeds are the receipts of bingo games conducted by organizations not within subsection A of this section. Such proceeds shall be used only for charitable purposes, except as follows:
1. Such proceeds may be used for prizes;
2. A portion of such proceeds, not to exceed twenty percent of the proceeds before the deduction for prizes, or one thousand dollars per month, whichever is less, may be used for rental of property, overhead, including the purchase of bingo equipment, administrative expenses, security equipment and security personnel;
3. Such proceeds may be used to pay license fees;
4. If the monthly gross receipts from bingo games conducted by an organization within this subsection exceed five thousand dollars, at least ten percent of the proceeds shall be used only for charitable purposes not related to the conducting of bingo games; the balance shall be used for prizes, rental of property, overhead, administrative expenses and payment of license fees, subject to the Limitations specified in subsection A2 of this section.
C. The licensee shall keep full and accurate records of the income and expenses which are authorized by this chapter.
D. The city, by and through its authorized officers, shall have the right to examine and audit such record at any reasonable time and the licensee shall fully cooperate with the city by making such record available. (Ord. 1090 § 1, 1987: Ord. 928 § 2, 1982: prior code § 4511)