§ 5.08.080. Profits and proceeds.

A.

With respect to organizations exempt from payment of the 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. Such 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. "Proceeds" are the receipts of bingo games conducted by organizations not identified in 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.

(Ord. 912 § 15 (part), 1989: prior code § 8277 (g), (h))