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 which are 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 (20) percent of the proceeds after the deduction for prizes, or one thousand dollars ($1,000.00) 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.
C. Any licensee under this chapter shall keep full and accurate records of the income and expenses received and disbursed in connection with its operation, conduct, promotion, supervision and any other phase of bingo games which are authorized by this chapter. The city manager or his or her designee shall have the right to examine and audit such records and the license holder shall fully cooperate with the city manager by making such records available upon request. The city manager or his or her designee shall have the authority to prescribe the keeping of any records which he or she deems necessary, and licensees shall compile and maintain such records and make them available to the city manager for examination and audit. (Prior code § 18.01.116)