§ 7.20.430. Proceeds—Use Restrictions.

A.

With respect to organizations exempt from payment of bank and corporation tax by section 23701d 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. Those profits shall be used only for charitable purposes.

B.

With respect to other organizations authorized to conduct bingo games pursuant to this chapter, 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. Such proceeds shall be used only for charitable purposes, except as follows:

1.

Such proceeds may be used for prizes at authorized bingo games;

2.

A portion of such proceeds, not to exceed 20 percent of the proceeds before the deduction for prizes, or $2,000 per month, whichever is less, may be used for rental of property, overhead, and administrative expenses; and

3.

The proceeds may be used to pay license fees.

C.

The proceeds shall be disbursed by check at least quarterly for a charitable purpose.

(Ord. 2015-0003 § 3, 2015: Ord. 11822 § 1 (part), 1978: Ord. 11488 § 1 (part), 1977: Ord. 5860 Ch. 23 Art. 4 § 3556, 1951.)