North Carolina § 14-309 - 11. Accounting and use of proceeds.

§ 14-309. 11. Accounting and use of proceeds.

All funds received in connection with a bingo game shall be placed in a separate bank account. No funds may be disbursed from this account except the exempt organization may expend proceeds for prizes, advertising, utilities, and the purchase of supplies and equipment used [in conducting the raffle and] in playing bingo, taxes and license fees related to bingo and the payment of compensation as authorized by G.S. 14-309.7(c) and for the purposes set forth below for the remaining proceeds. Such payments shall be made by consecutively numbered checks. Any proceeds available in the account after payment of the above expenses shall inure to the exempt organization to be used for religious, charitable, civic, scientific, testing, public safety, literary, or educational purposes or for purchasing, constructing, maintaining, operating or using equipment or land or a building or improvements thereto owned by and for the exempt organization and used for civic purposes or made available by the exempt organization for use by the general public from time to time, or to foster amateur sports competition, or for the prevention of cruelty to children or animals, provided that no proceeds shall be used or expended for social functions for the members of the exempt organization. An audit of the account required by subsection (a) of this section shall be prepared annually for the period of January 1 through December 31 or otherwise as directed by the Alcohol Law Enforcement Division of the Department of Public Safety and shall be filed with the Division and the local law-enforcement agency at a time directed by the Division. The audit shall be prepared on a form approved by the Division and shall include the following information: The number of bingo games conducted or sponsored by the exempt organization; The location and date at which each bingo game was conducted and the prize awarded; The gross receipts of each bingo game; The cost or amount of any prize given at each bingo game; The amount paid in prizes at each session; The net return to the exempt organization; and The disbursements from the separate account and the purpose of those disbursements, including the date of each transaction and the name and address of each payee. Any person who shall willfully furnish, supply, or otherwise give false information in any audit or statement filed pursuant to this section shall be guilty of a Class 2 misdemeanor. All books, papers, records and documents relevant to determining whether an organization has acted or is acting in compliance with this section shall be open to inspection by the law-enforcement agency or its designee, or the district attorney or his designee, or the Alcohol Law Enforcement Division of the Department of Public Safety at reasonable times and during reasonable hours. History (1983, c. 896, s. 3; 1983 (Reg. Sess., 1984), c. 1107, ss. 2, 3, 9; 1987, c. 866, s. 3; 1987 (Reg. Sess., 1988), c. 1001, s. 1; 1993, c. 539, s. 213; 1994, Ex. Sess., c. 24, s. 14(c); 1997-443, s. 11A.118(a); 2002-159, ss. 4(a), (b); 2011-145, s. 19.1(g); 2016-27, s. 3; 2020-72, s. 1(b).) Editor's Note. - The phrase "in conducting the raffle and" which appears in the second sentence of subsection (a) was not changed by Session Laws 1983 (Reg. Sess., 1984), c. 1107, which deleted the other references to raffles from this section. However, it would appear that the retention of this phrase may have been inadvertent. Session Laws 1999-237, s. 11.18, provides that the Bingo Program in the Department of Health and Human Services, Division of Facility Services, and all functions, powers, duties, and obligations vested in the Department of Health and Human Services for the Bingo Program, are transferred to and vested in the Department of Public Safety by a Type I transfer, as defined in G.S. 143A-6 . Session Laws 2016-27, s. 3, provides: "The Revisor of Statutes is directed to replace any reference to the "Department of Public Safety" with the "State Bureau of Investigation" wherever it appears in Part 2 of Article 37 of Chapter 14 of the General Statutes." At the direction of the Revisor of Statutes, "State Bureau of Investigation" was substituted for "Department of Public Safety" throughout the section. Session Laws 2020-72, s. 1(d), made the amendment of subsections (b) and (d) of this section by Session Laws 2020-72, s. 1(b), effective October 1, 2020, and applicable to applications submitted on or after that date. Effect of Amendments. - Session Laws 2011-145, s. 19.1(g), effective January 1, 2012, substituted "Department of Public Safety" for "Department of Crime Control and Public Safety" throughout the section. Session Laws 2016-27, s. 3, effective June 22, 2016, substituted "State Bureau of Investigation" for "Department of Public Safety" throughout this code section. Session Laws 2020-72, s. 1(b), in the introductory paragraph of subsection (b) and in subsection (d), substituted "Alcohol Law Enforcement Division of the Department of Public Safety" for "State Bureau of Investigation"; and substituted "Division" for "State Bureau of Investigation" three times in the introductory paragraph of subsection (b). For effective date and applicability, see editor's note.