Bingo: overhead costs.

The California Constitution permits the Legislature to authorize cities, counties, and cities and counties to provide for bingo games for charitable purposes. Existing law authorizes those local agencies to regulate bingo games for charitable purposes under specified criteria. Existing law requires the proceeds from authorized bingo games to be kept in a special fund and not commingled with any other fund or account. Existing law requires those funds be used only for charitable purposes, except for specified uses. Existing law authorizes an organization to use the funds for rental costs and the purchase of bingo equipment, among other specified uses. Existing law limits the amount to be spent on overhead costs to 20% of the proceeds before the deduction for prizes, or $2,000 a month, whichever is less. This bill would, beginning January 1, 2025, increase the monthly limit on bingo overhead costs to $3,000 per month, increased annually by the annual average percentage in the California Consumer Price Index for All Urban Consumers for the preceding calendar year.