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HomeMy WebLinkAboutAgenda Report - November 3, 1982 (25)76 CITY COUNCIL MEETING. NOVEMBER 3, 1981 PUBLIC HEARING Following introduction of the matter by City Attorney Stein, SET TO CONSIDER Council, on motion of Councilman Pinkerton, Murphy second, PROPOSED ORD- set a Public Hearing for 8:00 p.m. November 17, 1982 to INANCE LEGALIZ- consider a proposed Ordinance legalizing Bingo in the City of 1 ING BIIJGO IN THE Lodi as authorized by State Law. CITY OF LODI NOTICE OF PUBLIC HEARING BY THE CITY COUNCIL OF THE CITY OF LODI TO CONSIDER A PROPOSED ORDINANCE LEGALIZING BINGO IN THE CITY OF IQDI AS AUTHORIZED BY STATE LAW NOTICE IS HEREBY GIVEN that on Wednesday, November 17, 1982, at the hour of 8:00 p.m. or as soon thereafter as the matter may be heard, the Lodi City Council will conduct a public hearing in the Council Chambers, City Hall, 221 West Pine Street, Lodi, California, to consider a proposed ordinance legalizing Bingo in the City of Lodi as authorized by State Law which shall read in full as follows: An Ordinance of the City of Lodi Authorizing Qualified Organizations to Conduct Bingo Games within the City of Lodi BE IT 0141AIlVED by the City Council of the City of Lodi as follows -- Section 1. Sections are hereby added to the City Code of the City of Lodi authorizing qualified organizations to conduct Bingo Games within the City of Lodi as follows: Sec. AUTHORITY This part is enacted pursuant to the authority of Section 326.5 of the Penal Code. sec. AUTHORIZED ORGANIZATION All organizations qualified pursuant to Section 326.5 of the Penal Code are hereby authorized to conduct Bingo Games within the City of Lodi. Sec. COMPLIANCE WITH PENAL CODE All authorized organizations shall conduct Bingo Games in strict compliance with Section 326.5 of the California Penal Code. Sec. HOURS OF OPERATION No authorized organization shall conduct any Bingo Gaup or Games more than once a week nor more than six (6) hours in length. No Bingo Game or Ganes shall be oonducted prior to the hour of 10:00 A.M. or after 2:00 A.M. Section II. This Ordinance shall take effect and be in full force from and after thirty (30) days frcxn its final passage. Information regarding this item may be obtained in the office of the City Clerk at 221 West Pine Street, Lodi, California. All interested persons are invited to present their views either for or against the above proposal. Written statements may be filed with the City Clerk at any time prior to the hearing scheduled herein and oral statnients; may be made at said hearing. Dated: November 3, 1982 By Order of the City Council ALICE M. LAM City Clerk MEMORANDUM To: City Manager From: City Attorney Re: Bingo Ordinance Date: October 25, 1982 Hank, I received this letter from Bob Elliott asking that the City prepare a bingo ordinance. I enclose herewith a copy of Stockton's bingo ordinance. Would you like me to proceed with preparing an ordinance for the City? Please let me know. N RORCRT N. RINK RODCRT I►. ELLIOTT RINN & ELLIOTT ATTORNEYS AT LAW 2ZA WEST SINE STREET LODI. CALWORNIA 93240 October 11, 1982 Mr. Ron tein City Attorney City of Lodi City Hall Lodi, CA 95240 Re: Loel Center Dear Mr. Stein: TC -1 EMNO The undersigned is one of the members of the Board of Directors of the Loel Center. I have been asked by the other Directors to contact the City, through your offices, in connec- tion with Bingo games which the Loel Center desires to conduct in order to raise funds for the carrying on of the Loel Center's functions, as well as providing entertainment and amusement for the people who use the facilities of Loel Center. It is my understanding that the City of Lodi has not specifically enacted any ordinances making the conduct of such Bingo games by non-commercial charitable organizations legal. The Loel Center has been advised by its accountant that under federal law, income from Bingo games would be tax-exempt so long as the games were being conducted legally under the authority of the applicable law of the jurisdiction. In the event the games were being conducted "illegally", then any income would be subject to a special federal tax known as the Unrelated Business Income Tax. I am sure that there are other non-profit organizations in Lodi who would desire to conduct such games and would be faced with similar penalties under federal tax laws. Accordingly, it would be appreciated if you would prepare and submit to the City Council at your earliest convenience, a form of proposed ordinancy legalizing Bingo in the City of Lodi as authorized by state law. I understand that the City of Stockton and the County of San Joaquin have, in fact, enacted such ordinances. If I can be of any assistance in this matter, please feel free to call me. OCT 12 Ron Stein, Esq. October 11, 1982 Page 2 Thanking you, I am, Yours very truly, RINN b ELLIOTT I By , Robert K. Elliott RKE/nkk cc: Loel Center K-a- OMMAKE NO. US&C.i As ORotMAMM TO ADD PART X1V TO CNAFM I OF THE SIOM I MAI - K PAL Cool AUTHORIZING VAALI n" ORGAMIIATKIIIS TO COMO= mm emn wnmu TN! CRY OP iTOCKTOIL so w w"rad by Ow Counts of we CRY afa stedt► asSAKT R Xtv his adbd to ChaP:er S of our Stet Oom MarkIW Coda. eddir,S Sac - Items $40 IS Sim MMudva. n,wwisirr �ualir4 tied orwaaisatleto Conduct QMps Garnw wills Cha City at Sted►- tan. and Mai be as Pill', PART XIV SEC Slob. AVTHOHTY This Pon k wreled pawsm is ate auMerlh d SWlon 33" of we Penal Cade. SEC. SM. AVTMORIZOD OIwAMtu T" Fpu�►►s�nt toASat� Sd f a* PPa� Cods we Mraby &Wtha "d to cod t Imm" Gwrree WINCH IM CRY et Seedsen. SEC. 5-"?. COMPLIANC■ WITH PENAL COOR MI *Whwind orpalso"ana MMII aw*jd &M p Game In Mitt awq*. Mal w40 section IM.S of ChM Casfornla Parol Coda. SEC. Sof. HOURS OP OPBRATIM No wthwlaM vVent iam *40 ear. Acct any sww own or Gam" rums Son era {aawn wook em *we Plain Mix 16) hwirs In Gerna ~ be oenA,c!W prior to Me hew of HI:M AAL or ddtr 2:0 AAL SECTION is. This aalwwe Mai bka entad and be In NO force Irwo and after MIRY 00) do" barn NM Rnst pavoe w CRIWICATS This IS to cw*y w,d Ordlrwrce Ma, StINC•S. Wae POSW to Print by the City CancN d ww pry of Sftcbsm% an Pw Mt dey of October If& by Wo Id- terdr+Y vale: Ayee--Cawex;R~ Ilia". Devh H► bom &Ilrlwm. Rawer. Rue. Wire and Mayor Madds I/oes- 4done. Abnn1-C)O NKOMFOR SRrerta. Slodden. Cal.. OMW A. HIM JOHN M. JARRETT. City Ctwtt of ww Clty d Dom". LAn Oct. S t f 23701 BANK AND CORPORATION TAX LAW Div. 2 Where aossrnoHng Itank and Corporation Franchise Tax Act, whims bernme effec- tive Julie Ii, IACs, nuthorliced the levying and toiMt•ting of franc-hbw taxes based on new tier iow•ome tax xyxtem for entire teal• eni"r year of 31135. nstwitisxtaloling tnxrs had horn levied flood colirrtrd for fist -til year eroding July 1. ISM. tit* statute pro- viding for rise xulatetluent Ivry wax not ob"ifillable nserelr iwos lose It ap►pliltl retrosj.et-tively as to rhe iw►rtkm of rise tnxalde year whit -h hall not elalwed before the statute became effective since nrithrr five federal monctituthm nor the evn►stitts- tion of California torohihitti (toe emortusent of retrostpwetire laws. id. The fact flint previous taxes wlsirh were levied against a utility corporation nx ad valorem taxes for fitarol year ending July 1. 1933. were drt-lnrel to Ise ht lieu of all other taxes alit litrnxes, did not p►rrelude tlse Imioo"ing of additional franchise taxes for tive calendar year of 1113.1. pursuant to a statute wlsich because effective .lune 6. 1635, and which upecifimll► authorized such franchise taxes. Irl. 3. Jurisdiction Mhere injunction was (nsprop►eriy 000ught against asseoosme11t ant) collection of taxes under California Bank and Vorpsoration Front-ltise Tax Act, lout plaintiff also xtmKbt injunction against susioeuslon and forfeiture of t"xpayer's t•ert►orate powers stool pnr.+w-ution of its offienr►y directors and sXrnts, whk-h threatened to deprive t•orls.rfltion of property exceeding $3.000 in valur without due process of law, tlsner•jmdxe t•uurt had jurisdiction. Birch V. 11.4,4oly an (11.('.1941) :19 F..`tupit. 37a 4. Review Where California supreme rout deter- mined that rortw.rate taxiwyer tied not furnished any explanation of why its Cali- fornia bolster" differed so from the average flint the formula used by Califor- file (ss assessiux corporate franchise tax prahp-el not erroneeua rexult, denial of taxpayers jsetition for rehearing did not result in denial of procedural "due procesut of law", 000 ax to authorise remandment. notwitlixtaudi11g that a stiltulutlon stated that. if taxpayer failed to establish any feet necessary to a decision, case alsould Ise reolwiml. where the taxpayer had a full odoi►ortunity to be hrard oil the trines which it tendered and the California cou►t created no innovation when it placed on tine tmxpwsyer rise burden of eatabtishing flint tier formula taxed extraterritorial valine". Butler Bros, Y. AlcColgan (1942) oft 317t. 701, 315 U.R. Ii01. 86 L.Ed. 991. ✓ § 23701 a. Labor, agricultural, or horticnitural organizations Labor, agricultural, or horticultural organizations other than co- operative organizations described in Section 24404 or 24405. For purposes of this section, the term "agricultural" includes the art or science of cultivating land, harvesting crops or aquatic re- sources, or raising livestock. ( Added by Stats.1949, c. 557, p. 976, § 1. Amended by Stats.1951, c. 343, P. 779, 12. eff. May 5. 1941; Stats.1955. C. 938. p. 1574, § 13, eff. June 6, 1955; Stats.1977. c. 1079. § 118, eff. Sept. 26. 1977.) Historical Noto An added in 19411, tine set•tion read: •'I.a- lar organizations." The 1wil vt11st-tahfleut rewrote the Pee - lion in its present 1►n+ir form. For provinionn of the 11151 art relating to rffertive date, otw•nttivt. 418111, "1141 ap- plication, tiro llixtoritnd Note wnier 1 '.23701. The IWZ "menisatatt n -ferns) to "Nre- tiou 24404 or 24405" instead of to "Sec- tion 24121m or 29131st". For additional prmiAms% of th.• 19:&5 net, Pee Historical Note tntder I :11 ►i. The 11177 nmrndnsestt added tine second pasntgraph. 1977 nmsrntlmrtst applit•uhle in Compute- tion of tstxes for in-ome yearn beginning nfter Ih-r. 31. 111711 Per Ilistorical Note un- der f 234414. Derivation: Urrivalion under f _"17111, Cross References Imposition of tax upon tturelatcd butwiuexn taxable income, see 11 23731, 23732. 166 F 1 FXENIN'C C01010RATIONS Library References United States Code Annotated .1111 .n. .•r»• 4a� pruviwi.•nw• w.•r _K i .�.(' .\. :dll (r) (:•l. § 23701C § 23701b. Fraternal beneficiary societiPti, orders, or organiza- tions; conditions Fraternal beneficiary societies, orders, or organizations, (i) oper- Mir.l; undt•r the lodge system or for the exclusive benefit of the meln- bt rs of a fraternity itself operating under the lodge system; lend (ii) providing for the payment of life, sick. accident, or other benefits to the members of such s0Ciety, order or org:uliz:{til,n or their depend- ents. lddrd to., `tats.1:i51, c.3-13. it. 779. §3. eff. flay 5. 1951.) Cross References t-;l..rnlata,m r.•turu, w••r- 9 L1:1772. Library References l'r1a.•r1••u (�1ttt�. 1'..I.�.'1'aurFi/lll 6 111l1!i, United States Code Annotated V -1--r.1 itl•nror ht♦ prmkiou+, ••,- -_43 1•..q.('_A tl -Olir) 0). 237010. Nonprofit cemetery companies; conditions Cemetery companies owned and exclusively for the ben- efit of their members or which al -e not operated for profit; and any corporation chartered solely for the ptl►'pose of the disposal of bodies by b-urial or cremation which is not permitted by its charter to en - 9:19e in an}" business not necessarily incident to that purpose and nn Part of the net earning of which inures to the benefit of any private shareholder or individual. Formerly § 23701d, added by 5:17, 0. 976, § 1. Renumbered 237ole Intl amended b\ St:it,.19;)1, c. :i•1:;, 11. 779, § 4, eff. flay 5, 1951; �,at-S-1963, c. 1028. p. 2305, § ;i, eff. .tune 26, 1963; Stats.1971, F.x.Sens., c. 1. p. 5057, § 218, eff. 11ec. 8, 1971.) 167 Historical Note V..r pn..t.inus I,f t1.P 1'•1:11 n••t rAi•Iiitg Derivation: r'/1rn1Pr j •-'.:3;3171: `tilt". r., •.((.•. r,lr .int•', Igw•ratitr .lilt.•, :111.1 np 1'1•:.. •'. 71:.. p. _IX1. 3: Ntpi".1939. r. p!:•vtulu• ere [[il.tarirpl \utr un•1rr 1`1111. p. -hNC{. 1} :{..1; �rnt�.l!111. C. (i!►7. {.. - ( "111, 6 1: �tnt".1!11:, 1•. !:ti7, p. �'?�\. � - 1Nt M. 1!1 ill, 1•. Vrfllrr } ��;{ 11111 N'pV rPtlllTntlr 1••11 {/) srnr..i!1..I, r. :{tit. It. 1711. b K. and n,,w 4;•t•rrlrrr N\ 1 '2.{•11111. Cross References t-;l..rnlata,m r.•turu, w••r- 9 L1:1772. Library References l'r1a.•r1••u (�1ttt�. 1'..I.�.'1'aurFi/lll 6 111l1!i, United States Code Annotated V -1--r.1 itl•nror ht♦ prmkiou+, ••,- -_43 1•..q.('_A tl -Olir) 0). 237010. Nonprofit cemetery companies; conditions Cemetery companies owned and exclusively for the ben- efit of their members or which al -e not operated for profit; and any corporation chartered solely for the ptl►'pose of the disposal of bodies by b-urial or cremation which is not permitted by its charter to en - 9:19e in an}" business not necessarily incident to that purpose and nn Part of the net earning of which inures to the benefit of any private shareholder or individual. Formerly § 23701d, added by 5:17, 0. 976, § 1. Renumbered 237ole Intl amended b\ St:it,.19;)1, c. :i•1:;, 11. 779, § 4, eff. flay 5, 1951; �,at-S-1963, c. 1028. p. 2305, § ;i, eff. .tune 26, 1963; Stats.1971, F.x.Sens., c. 1. p. 5057, § 218, eff. 11ec. 8, 1971.) 167 § 23701c BANK AND CORPORATION TAX LAW Div. 2 Historical Note This seedoe. as originally enacted. read "Cemetery companies owned and operat- as follows: ed exclusively for the benefit of their "Cemetery companies owned and operst- members; or which are not operated for ed exclusively for the benefit of their profit: or any corporation chartered sole - members; or which are not operated for ly for burial pwrposen an a cemetery cor- profit; or any corporation chartered for poration and not permitted by its charter cemetery purposes and permitted by its to engage in any business not necessarily charter to engage in any business related incident to that purpose, no part of the to that purpose. so part of the net earn- net earnings of which inures to the bene - too of which inures to the benefit of any fit of any private shareholder or individu- sharebolder or member thereof." al." The 1951 act. to renumbering this ear- The 1971 amendment rewrote the aft - don, made so change In the section. tion to read an it now appears. For provisions of the 1961 act relating Former 1 23701c was renumbered by to effective date. operative date. and ap- Ittatx.lillil. e. M p. 780. 1 13. and now plkatton. an 111storical Note under 1 appears as 1 23701m. 2370L Derivation: See Derivation under 1 The 1963 amendment rewrote the sec. 23701. tion to read as follows: Cross References lustaliment obligation, effect of transfer. see 1246r2. Taxation 4=10M Library References C.1.8. Taxation 1 1098. United States Code Annotated Federal Income tax provisions. see 26 U.&C.A. 1501(c) (13). Notes of Decisions i. In sea" Within moudug of constitutional provi- Mon stating that all property used or betel exclusively for burial or other permanent deposit of human dead or for care of much property or each dead. except an used or held for profit, shall be free from taxa- tion (ace. now. Const.. Art. 13. 1 3). property purchased by nonprofit cemetery association and used or hdd by It exclu- sively for burial or other deposit of hu- man dead was not, by reason of its aopui- Ation under percentage sales price con- tract. "used or held for profit" where ro- lationnhip between association and vendors wan that of debtor and general creditors and there was no relationship of joint venture. partnership Oter ego or trust be- tween parties; and the property vas ex- empt from taxation so far as cemetery association was concerned. Westminster Memorial Park Y. Orange County (1980) 6 Cal.Rptr. T75. 834 Ptd 247, 54 C.2d 4fW. § 23701 d. Religions, charitable, scientific, literary, educational, amateur sports or humanitarian corporations Corporations, community chests or trusts, organized and operat- ed exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or in- ternational amateur sports competition (but only if no part of its ac- tivities involves the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which Inures to the benefit of any private shareholder 168 4 1 ~. Ik �~ 1'r. 11 1;XE:a11'T cerltiII(M ATtorls 23741d , I or no substantial part of the sertivities of which is carrying r)n pt•ol);igar)d..I or otherwise attvniptinl, to influence" legislation (ex- , -,.p,, ;is other%0se prociric•d in SfY'tion 2.:70.1.:)), and which does not l,articipate in, or iniervene in (inc•lu(ling the publishing or distribu lion of statements), any t+oldie a) campaign on behalf of any candi- date for public office. An Organization is not organized exclusively for exempt purposes lisle above u: -,Ie. -;sits assets are irrevocably ded- Icatefl to one or more purposes listed in this section. rx-dication of asstlts requires that in the event of dissolution of an organization or the. Impossibility of performing the specific organizational purposes the .Isets Would continue to he devoted to exempt purposes. Ass %hall be de•en)ed irrevocably dedicated to exempt purposes if the arti- r•Ies of organization provide that 1p(,n dissolution the assets will be dlstnblutfil to in organization which is exempt under this section or ;;t•e ruin :,fll (c') (a) of the Internal )tc"enue ('rete rn to the federal L:o%ernnlent, or to a state or local go�•ernmelnt for public purposes; or by it provision in the artit•Ic, of ol,ganization, satisfactory to the t''rane•hise Tax Board; that the prol)ert.' will be distributed in trust for exempt purposes; or by establishing that the assets are irrrvoca- hlv dedicated to exempt purlmst's by' operation of law. The irrevoca- ble dedication requirement shall not tk� a sole basis for revocation of an exempt determination made by the i••ranvhise Tax Board prior to the• effective date of this amentlrne•nt. I Fornit.0% � 2:{7ellt•, added h}• Stat -.191a, e'. 557, p. 971', § 1. 16,1111 nbered 23illld :anti ame'tttled by' titats.l!1i1, t :{1:{ it 779. § r,. ..ff. May 5, 1951. srats 1! 69. c 1320. p 2461. d . stais.l:17l. 1:x.�t•w., e. 1, p. 511:1 > 211 • f f Dec, K. 1971. Stah.l!1i 1. t:x.`e•:v , c '2. p. 51tA v QA. t ff. l)t a .:{i1, 19;1 , Slat% 1977. t• 1079. j 119, t•ff. sept. 26. 1977.) Historlcil Note '1'!•.• 1!1:.1 u• r lu h•nnuJ..•rtn� IL1. •.• -- r .•ttv. her ILIr.•, ulwr:I II, rt:lt.•• nu.l ul. L.....r-.�.n. .I. jl�.t.rn•-s► \..1.� a„•L�r t . ..111 L. be i9 aln.I'Al"a•IIt :abl.•.I tl.. .....L.1 I 1. r.rr!•; Ir .1•t11 .••tlt.•t..••. 1 In 1'e71 :uI rinlnlr•ht. iu. lu•1••.I ..n•i n.0 sur. r Lr. t. nr th1•t •... :rrl.l••.I '•t••>t1 71•. !•:LL. .--.IfI.tI :I. it l.rlrl•u. :unlr�Il•rl••I . v n�l4 it If it r gn I,iv:rti•ar1 I..Irii• Is.” r. ..I -,,I r•. su • Is, ..nnl•�ul;n f. -Ir l�••!rt:• II . Ini.h .Iw r. I•urpr•-•• ul tl,:1 F:�.�•'-•. Ir.hni.•nl t 1 .•• th•tr.ri.t.t Nwe un.j••r I 1 'j'Lr• la.i nnl.•n11u»•nt in. lurh•II l.rin t.n•n. � r.•I;ttnls; t.• amatl•nr �l...rt- nn.l tL•• l•.IWit , eli.•t Ir III r\•Y•j ltlUq IT.'l:•titll; N• lrtul�nl; tl nllw •} .rt :.t t.'•Il l•t- t.1111f11r.'I1.'r• 1••a;I �illt tl.11 1'1..• 1!eii ntnvlr.!•Ilrnt 1� n;.plirahjr its .'. •I11 l.11t 111); tnil•� his, in••.II I, eii r- i..'rltl It I t••• :tl. 1!►�ti• ,.-tr I ll.1.1 ri. al . .• urt.l. r a _'::NII. i j•',.rI.I• r 9 ;tt111 ttn> •un rlr••rv.j h• 1 :a::1't_ !• i.l1. nu is it III) nut• !,, �r,,r• I)eriv tion'eril,.n••I) trl,Ilrr i .\ •11, uhull of nm.�n•In..l.l. 'n I'1', I. a ural ntul I uri•ura burn enc Inw, ,.. Irli�tuil• al \air nu.l.•r t _: G lett 169 § 23701d BANK AND CORPORATION TAX LAW Crsas References niv_ 2 (Sburch exemption. see 1206; (`.Dost. Art. 13. If A. s. 1>"itartions for charitable t tributionP. see 124157 of *M. Doulal of welfare esetaptioa to organization oat qualifW uabr this suction. see 1214.& 1arpoaition of tax alien unrelated busiiiaese taxable income. see If 23731.23732. Information return. ase ! 23772, Prohibited transactions. ase 122M at a". Returns of exempt orgaulastiona. we 1 ?..lir: Taxation of employee annuities, we i} 1ni11. Trust organized for purposes stated in this Portion renskleretl a eorporation. ate It 17409.210311. Volunteer fire department qualitied under this section. property tax exemption. sea 213.7. Law Review Comaaestarle- California wctfare exemption. (1888) 41 Se.CaLL.R. 844. Literary Raferenoea Taxation 4=1048. C.J.& Taxation 11098. United stat" Code Assetated Federal Income tax provision*, we 201'R.(' A.1 tial (r) (3). metes of Dee(a(eas 1. IS 8etteral Itertiens 214. 2;14. 2342{. 201?„ 4986 to onitnence which im)iosed a sperial tax 41114 (It 4i11kt. 4104. repealed: see. now. on retired persons omu)lying nonprofit n- it 4911, 411112). 50110 to 11107. and this tirement homm while exempting froaa the Pet -thin. linnwrly rountrur+i. provide that tax persons orrupylag protit-miltivated re- while there to no time limit upon right to tlrement homes, was unconstitutional. 4-nm•1111tloa of tsxntion under welfare ex- sinry there was no possible or lagk-id slit• en1idion. refutsl ran be had only after fermV. between an ow"lrant living in a prrsrntntien of pro)sar claim showing rbatitabir retirement home nud one living right (hereto which must he filed within In a profit-motivateoi retirement home thrre years after t.nyment of sum sought that would justify imtasNyt it tax on the to Is+ Tofu" -d. and Pubjeet to further former while exemirthyt 1 t latter. John nnPlttion that snit mast be brought. If at Tennant Memorial Ilosom inr. v. ('ity of all. within Pix months after rejection. 8a- Paetfir Grove (18T2) 1017 CaMptr. 215ti ma►Rand of Banta Barbara. Inc, v. Banta 27 C.A.3d 372. liarbarn County (1063) 31 Cat.itptr. 1111. 216 C.A.2d 341. § 23701e. Bnsinesx leagues, chambers of eommeree, read estate boards, and boards of trade; conditions Business leagues, chambers of commerce, real estate boards, or boards of trade, not organized for profit and no part of the net earn- ings of which inures to the benefit of any private shareholder or indi- vidual. ( Formerly 123701 f, %.dded by Stats.1949, c. 657. p. 977, f 1. Renumbered I 23701e and amended by Stats.1951, c. 343, p. 780, q 6. eff. May 5, 1951.) 170 r ' rt. 11 ! LIN11"T ('<ntrul A,riO NS § 23701f Historical Nott jl .• 1't31 :n r, iu ►.•nnnllwnul ti -i- )•%mairr j _- wn• rrmunb••rr.f be ! ..n hY.lr fln .I�xtly;r 114 11-r Asr-t tr.41. ' I " I . I!1.1 _ .:1 :, 1. 1.'t, 4 :11u1 h4•\. ,t 1.1. i,rw nv pn..l.i•.n+ u( tins 1!1:.i x•�t ♦rl:lfiul; ,.!t..rl..• .lat., •.l.rretn.• -hair. :11•.1 :II- Derivation: Sr.• 1`-•rt\11t1-m uo.l-•r I I,I.• Irl..n, e••r IltxTon.xl �uM unJ.•r ! _::ittl Cro« References {.� ..iU•u ••( Ing up..o rinr.•lotr•l Au.nlr.. tn�nl.l•• Inromr, .rr 44 �::.ai..::i:... library References 1',4•.1!1.-n C- 1111 . CA.S. 9'nslttion f 1101\. United States Code Annotated )• brill Ip mwtx\ pr4.\Igntl.,srr'fti•.8:1'.A. 4.'41144.1e11-1 Is 23701 f. Civic leagues; social mvelfare and rmplo%"%I organiza- tions; conditions Ovic leagues of- organization, not organized for profit but oper- Mod em-lusive•ly for the pronlotion of social) welfare, or local organiza- tions of cmployees, the nien)he'rship of whit•h is limited to the em- p!n%ms of a desigmited person or p -t -sons in a particular munic•ipali- ty, and the net earnings of whit -11 are devoted exclusively to c•harita- blc, Vdurational or recreational purpose -s. An organization is not organized excltfsivel} for exempt purposes listed above unless its as e•ts are irrevocably dedic.tt1Kl to one or more purpose-, listed in this see•tion. I Added Uy Stxts.1951, c. :baa, p. ii!I, � 7, 1'ff. May 5, 19:11. Anit•n(I1-d by St:1ty.1971, F OSess., c. 1. p. bo5s. § ':120, eff. th•r. S. 1971.) Cross Refercnrr% r fir. .I. nu•I t .I.I::Ili i. .I ui. 1. r I' i.I. 1.•rt\ 1.1\ r\. n.l.tn•r.. .r.. I' ' ! .I:t 7 Library F1cfcrcnrra T•a luh..h C�hl+\ 1'..! � '1.44�ntil•u 9 lU!!ti. 171 Ht%lnrir:0 Nolo 1'.•t 1.:.\I.L.n. of tL. 1!1:.1 ¢•.t t••I. }'I.II".•1 4 .. .r4if \\u. r•.n.....l• r, -.l I.\ I-. .'ff.•• II\.• .114!1• •rt •.•t Ntl•r• .1SI r.•, rl l.•1 I11• Malt-. i!1.1I, 311 1., 1.!1 •j• 4 t-, ,111.1 I,,,- 11�. .,i� ... jii.r..,1.:11 \..r. un•i••r ul.l..•:It. .1. 4 Derivation: F•'unn••r 4 _..;alb. Ntxt� 'j'!.. 1:4�1 :In,.!,.1,-I•-III :1•Ll.,t tl.. ....•1..1 1:1':,. .1: , t. _1�1 4 ! Xtnl•.l!t::S1 , t•n ra s:r l -h in{!1• {.. _!Nla• d :{: �hlt•. 1 . �tnr. 1!i.i:.• .\:ISI. i'., ISi::. 4 -. Cross Refercnrr% r fir. .I. nu•I t .I.I::Ili i. .I ui. 1. r I' i.I. 1.•rt\ 1.1\ r\. n.l.tn•r.. .r.. I' ' ! .I:t 7 Library F1cfcrcnrra T•a luh..h C�hl+\ 1'..! � '1.44�ntil•u 9 lU!!ti. 171 § 701h. Holding corporations for benefit of exempt orgaxdzs- tions Co rations organized for the exclusive purpose of holding title to props collecting Income therefrom, and turning over the entire amount the f, less expenses, to an organization which itself Is ex- empt from mposed on or measured by income. (Formerly § 23701b. dded by Stats.1949. c. 557. p. 976. § 1. Renumbered 4 23701h and amend Stats.1951, c. 343. p. 779, § 8, eff. May 5, 1951; Stats.1957, c. 544. p. 1602. 4, eff. May 30. 1957.) The l9.'$I act. In renumbering this ls` tion, made no change in the section. For provisions of the 1951 act relating to effective data. operative date. and ap- pbicatioa. see Historical Note ander ! 23701. The 1957 amendment nubatitutcd the words "from taxes imposed on or tnmaur- 1 Not* t41 by income". at the end of the rection. for the words "from the tax imposed by his part". rmer I 23701h was renumbered by Stnt .951, c. 343, p. 7th). 11. and now appre a 123701k. Mrivatlos See Derivation under I 70 i . Cross References Imposition of tax upon unrelatee) huninens taxable. invome. nee 11 237:11. 237.V— Prohibited traasuctious, nee 123736.1. Restricdop on opersdon of section, see j =702. 172 § M7O1f BANK AND CORPORATION TAX LAW Div. 2 United States Cede Aaaetat*d Fe4tral lwvme tax provisions, nor :M U.K(`.A. li 1W)l (r) (4). :. §`13701 g. Nonprofit pie wre and recreation clubs '- Clubs organized and operated exclusively for pleasure, recreation, and other nonprofitable purposes, no part of the net earnings of which Inures to the benefit of any private shareholder. (Added by Stats.1949, c. 657. p. 977, 11.) Nlstsrical Nate Derieatlen: Bee Derivation under I 23701. Cron References Unrelated business taxable income. we 123 742 Library References Taxation C -100L CJ.3. Taxation 1068. Ua1t&d Stater Code Annotated Federal income tax provisions. see 28 U.&C A. 1501 (e) (7). § 701h. Holding corporations for benefit of exempt orgaxdzs- tions Co rations organized for the exclusive purpose of holding title to props collecting Income therefrom, and turning over the entire amount the f, less expenses, to an organization which itself Is ex- empt from mposed on or measured by income. (Formerly § 23701b. dded by Stats.1949. c. 557. p. 976. § 1. Renumbered 4 23701h and amend Stats.1951, c. 343. p. 779, § 8, eff. May 5, 1951; Stats.1957, c. 544. p. 1602. 4, eff. May 30. 1957.) The l9.'$I act. In renumbering this ls` tion, made no change in the section. For provisions of the 1951 act relating to effective data. operative date. and ap- pbicatioa. see Historical Note ander ! 23701. The 1957 amendment nubatitutcd the words "from taxes imposed on or tnmaur- 1 Not* t41 by income". at the end of the rection. for the words "from the tax imposed by his part". rmer I 23701h was renumbered by Stnt .951, c. 343, p. 7th). 11. and now appre a 123701k. Mrivatlos See Derivation under I 70 i . Cross References Imposition of tax upon unrelatee) huninens taxable. invome. nee 11 237:11. 237.V— Prohibited traasuctious, nee 123736.1. Restricdop on opersdon of section, see j =702. 172 § 23701i BANK AND CORPORATION TAX LAW DIv. 2 Historical Note . For provisions of the 1951 an rrlatintt Derivation- Former 1 ZMld; Rtata. to effeMive date, operative .late. nal ap- 1937. r M. p. 2184. 1 4; Statx.1", C. � plication. see Historical Note under 1 1049. P. 21103, 13.5. Statx.1941. c. 697. V. 2$701. =10 1 i ; Stata.1943. c. 1187, is. 2728, 1 1; Stata.1945, c. 8N. p. 1573. 12. 2i*� United States Cede Annotates iworal Iaoome tax provision. see 28 U.R.C.A.1501(c) (l1). Library Roferonces Taxat 0-1048. CJ.S. Taxation 1109& ; § 23701 Religious or apostolic corporations having common or community tnumary; members' returns , Religious or a lie corporations, If such corporations have a common treasury or munity treasury even if such corporations engaged in business for common benefit of the members, but only If the members thereof a (at the time of filing their returns) in their gross income their enti pro rata shares, whether distributed or not, of the net income of t corporation for such year. Any amount so Included in the gross I me of a member shall be treated as a dividend received (Formerly f 23701h, added by Stats.1949, c. 7. p. 977, f 1. Renumbered 23701k and amended by Stats.1951, c. 343. P.. 111, eff. May 5. 1951.) Historical Note The 1951 act. which renumbered this For provixiow of a 1951 act relating section. is the first sentenceomitted a to effective date. opt ive date. and ap. comma which formerly appeared foilowing pth,eNou, xee llistoricai\\ote under 1 the words "community treasury" in the 23701. \ : phrase "it such corporations have a com- Derivation: See Uerivatioo under 1 anon treasury or community treasury even 24701. i If such corporations eugagwl in buxinea■". ot�e. Cross Reforeness Church exemption. see 1206; Coast. Art. is. 113. IL Library References Taxation 49 -IOM C..l.S. Taxation # 1068. i United States Code Annotate Fele rat income tax provisions, see 26 1f.S.C2 A. 1501 (d) - \ § 237011. Domestic fraternal societies, orders or associations; conditions Domestic fraternal societies, orders or associations, operating un- der the lodge system—the net earnings of which are devoted exclu- 174 Fit. 11 EXEMPT CORPORATIONS § 23701n sn-ely to religious, charitable, scientific, literary, educational, and fra- ternal purposes and, which do not provide' for the payment of Life, stik, accident, or other benefits. For the purposes of this section. the term " dornestic" means created or organized in the United States or under the law of the United States or of any state or territory. .added h% Stats. t 9 i 1. e. 72, p. 98. § 3, eff. May 14, 1971,) Historical Note �1 tiff. nt:.•n of )!ti 1 n.6liti•.a, x. r I (i.tt•r i:, p. n.1. 1 ? Former 1 237011 wit* OP •. �.i \,,N mu•I••f 2:tillli. .•{_• t 1 � ri..•A from fttrnwr 9 _...ter• Xtntx.l.l:{;. -1 C .•. ;ti'•, p. _'1ti-►, 1 -1: Ntntx,l!1::4, r. 11►1!1 F'•••mvt { _:tel 1l, n.l.bd h►' Infx.11l:.1, 1•, •.•Mt:r. { a.:•, Xtat._1!'1t1, r, (i!1i, p, _•"_'ler. :Ct, t• :Vr. { !_. r••lutin/ to .olunt+ttc 1� - ....1.1....•.•.' brurtr.tan nrl;,tnizationa math 9 1: 'Atilt, 01113• .. KX7. �h1t..I:11:.. r•. -%69. .11...( rny.l..�rrtt of the 1'mitrd \tote+ Kov� vrnrm.•nt• ANv reprnle•l by ttnt%.1!1.1, v'. Cross References 1,31411111% of .-..rpornfiun on .Ir.triMttiou, t.r.• Library References 1'ntxr t.o .'�11►1!i. 1'..1.x. 'rnanti..n y iieox. United States Code Annotated F.A.-rill inronr•• tett prt.ti.irrn., ..•r _ek § 23701m. Diversified management companies Corporations classified as diversified management companies un - (ter Section 5 of the Federal Investment Company Act of 1940,1 and registered as provided in that act. (Formerly § 23701c, added by Stati.19.39, 1'. 557. p. 976, § 1. Renumbered $ 23701m and amended by Stats.1951, c. 3.13, p. 7211), § 13, eff. Maty 5, 1951-) 1 1:1 ! sie"-f. Historical Note 1 1,. l:r.•l n. r in n•t::unhrnu;; rl,�+ n••. p1n ,ttn.n. .. • I li.r..rr, al \nt.• mn.;rr � P�••�+, r.:a•1.• 1•o thau}•• in tl.r .• rtion. _':itrl For l•rtHt.it.nr tnf tI_ 111:,1 nt•t rt•Int,111, Derivation: ..•.• llrrivntion moiler >Y t•. rffr• tt.r .Itrtr• ol.erritker little-, tttl.t xl•'-'37111- Library -'3 111, Library References 'rnitlflu:: (C=al4)1.s. CA.S. '1•nx>,tit.n { hells• § 23701 n. Trust for payment of supplernental unemployment compensation benefits ( 1) A trust or trusts forming part of a plan providing for the payment of supplemental unemployment compensation benefits, if— F: 175 tyL 81 DEERING'S PENAL. person who aids or assists, either by print- ing, writing, advertising, publishing, or oth- erwise in setting up, managing, or drawing any lottery, or in selling or disposing of any ticket, chance. or share therein, is guilty of a misdemeanor. [1872.] 22 Cal Jur 3d Crimi- nal Law § 3141; Witkin Crimes p 555. § 323. Lottery offices: [Keeping or] ad- vertising lottery offices. Every person who opens, sets up, or keeps, by himself or by any other person, any office or other place for the sale of, or for registering the number of any ticket in any lottery. or who, by printing. writing, or otherwise, advertises or publishes the setting up, opening, or using of any such office. is guilty of a misdemeanor. (1872.] 22 Cal Jur 3d Criminal Law §§ 3141, 3274; Witkin Crimes p 555. §324. Insuring lottery tickets: Publish - Ing offers to insure. Every person who in- sures or receives any consideration for insur- ance for or against the drawing of any ticket in any lottery whatever, whether drawn or to be drawn within this state or not, or who receives any valuable consideration upon any agreement to repay any sum, or deliver the same, or any other property, if any lottery ticket or number of any ticket in any lottery shall prove fortunate or unfortunate, or shall be drawn or not be drawn, at any particular time or in any particular order, or who promises or agrees to pay any sum of money. or to deliver any goods, things in action. or property, or to forbear to do anything for the benefit of any person, with or without consideration, upon any event or contingency dependent on the drawing of any ticket in any lottery, or who publishes any notice or proposal of any of the pur- poses is guilty of a misdemeanor. 1872.] 22 Cal Jur 3d Criminal Law § 3141; Wits':: Crimes p 555. § 325. [Property offered for disposal in lottery forfeited: Attachment.] All moneys and property offered for sale or distribution in violation of any of the provisions of this chapter are forfeited to the state, and may be recovered by information filed, or by an action brought by the Attorney General, or by any district attorney, in the name of the state. Upon the filing of the information or complaint, the clerk of the court must issue an attachment against the property men- tioned in the complaint or information, which attachment has the same force and effect against such property, and is issued in the same manner as attachments issued from § 326.5 the superior courts in civil cases. [ 1872; 1951 ch 1608 § 4; 1953 ch 617 § l; 1977 ch 1257 § 118, effective October 3, 1977.] 22 Cal Jur 3d Criminal Law § 3150, Forfeitures and Penalties § 3; Witkin Crimes p 921. § 326. Letting [or permitting use of] building [or vessel] for lottery purposes. Every person who lets, or permits to be used, any building or vessel, or any portion thereof, knowing that it is to be used for setting up, managing, or drawing any lot- tery, or for the purpose of selling, or dispos- ing of lottery tickets, is guilty of a misde- meanor. (1872.] 22 Cal Jur 3d Criminal Law § 3141; Witkin Crimes p 556. § 326.5. [Bingo games] (a) Neither this chapter nor Chapter 10 (commencing with Section 330) applies to any bingo game which is conducted in a city, county, or city and county pursuant to an ordinance cn acted under Section 19 of Article IV of the State Constitution, provided that such ordi- nance allows games to be conducted only by organizations exempted from the payment of the bank and corporation tax by Sections 23701x, 23701b, 23701d, 23701e, 23701f, 23701g, and 237011 of the Revenue and Taxation Code and by mobilehome park associations and senior citizens organiza- tions; and provided that the receipts of such games are used only for charitable purposes. (b) It is a misdemeanor for any person to receive or pay a profit, wage, or salary from any bingo game authorized by Section 19 of Article IV of the State Constitution. Security personnel employed by the organization con- ducting the bingo game may be paid from the revenues of bingo garner as provided in subdivisions (j) and (k). (c) A violation of subdivision (b) of this section shall be punishable by a fine not to exceed ten thousand dollars (510,000), which fine shall be deposited in the general fund of the city, county, or city and county which enacted the ordinance authorizing the bingo game. A violation of any provision of this section, other than subdivision (b), is a mis- demeanor. (d) The city. county, or city and county which enacted the ordinance authorizing the bingo game may bring an action to enjoin a violation of this section. (e) No minors shall be allowed to partici- pate in any bingo game. (f) An organization authorized to conduct bingo games pursuant to subdivision (a) shall conduct a bingo game only on property owned or leased by it, or property whose use § 326.3 DEERING is donated to the organization, and which property is used by such organization for an office or for performance of the purposes for which the organization is organized. Noth- ing in this subdivision shall be construed to require that the property owned or leased by or whose use is donated to the organization be used or leased exclusively by or donated exclusively to such organization. (g) All bingo games shall be open to the public, not just to the members of the autho- rized organization. (h) A bingo game shall be operated and staffed only by members of the authorized organization which organized it. Such mem- bers shall not receive a profit, wage, or salary from any bingo game. Only the orga- nization authorized to conduct a bin#o game shall operate such game, or participate in the promotion, supervision, or any other phase of such game. This subdivision does not preclude the employment of security personnel who are not members of the au- thorized organization at such bingo game by the organization conducting the game. (i) No individual. corporation, partner- ship, or other legal entity except the orga- nization authorized to conduct a bingo game c shall hold a financial interest in the conduct of such bingo game. (1) 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. (k) With respect to other organizations authorized to conduct bingo games pursuant to this section, 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 orga- nizations not within subdivision 6). 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 20 percent of the proceeds before the deduction for prizes, or one thousand dollars (51,000) 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. 5 PENAL 82 (4) A city, county, orcity county which' enacts an ordinance permitting bingo games may specify in such ordinance that if the monthly gross receipts from bingo games of an organization within this subdivision exceed five thousand dollars ($5,000), a min- imum percentage of the proceeds shall be used only for charitable purposes not relat- ing to the conducting of bingo games and that the balance shall be used for prizes, rental of property. overhead, administrative expenses and payment of license fees. The amount of proceeds used for rental of prop- erty, overhead, and administrative expenses is subject to the limitations specified in para- graph (2) of this subdivision. (n (1) A city. county, or city and county may impose a license fee on each organiza- tion which it authorizes to conduct bingo games. The fee, whether for the initial li- cense or renewal, shall not exceed fifty dol- lars (S50) annually, except as provided in paragraph (2). If an application for a license is denied. one-half of any license fee paid shall be refunded to the organization. (2) In lieu of the license fee permitted under paragraph (1), a city, county, or city and county may impose a license fee of fifty dollars (S50) paid upon application. If an application for a license is denied, one-half of the application fte shall be refunded to the organization. An additional fee of 1 percent of the monthly gross receipts over five thousand dollars ($5.000) derived from bingo games shall be collected monthly by the city. county, or city and county issuing the license. (m) No person shall be allowed or� r tr!ici- pate in a bingo game, unless the person is physically present at the time and place in which the bingo game is being conducted. (n) The total value of prizes awarded during the conduct of. any bingo games shall not exceed two hundred fifty dollars ($250) in cash or kind, or both, for each separate game which is held. (o) As used in this section "bingo" means a game of chance in which prizes are awrrded on the basis of designated numbers or symbols on a card which conform to numbers or symbols selected at random. Notwithstanding Section 330c, as used in this section, the game of bingo shall include cards having numbers or symbols which are concealed and preprinted in a manner pro- viding for distribution of prizes. The win- ning cards shall not be known prior to the game by any person participating in the IN playing or operatic such preprinted cF "for sale or use or rued under Califs local ordinance." Legislature that I subdivision applies and shall not be a or enforcement os law. (1975 ch 869 at Prtmary Electio 271 § 1, effective J 1; 1980 ch 997 § ¢ 327. ("E"es tion.) Every person sets up, proposes, chain is guilty of a this section, an "e scheme for the di property whereby i able consideration compensation for i additional persons scheme orof r the c sation when a pe participant introdu: § 330. Gaming: Pc 330x. Possession c fac § 330b. Possession c § 330c. "Punchboar § 330.1. Manufactur § 330.2. "Thing of v § 330.3. Se"m and § 330.4. Possession L - Mal § 330.5. Application § 330.6. Slot machin § 330.7. Antique slo, § 330.8. Authorize- tray § 331. Permitting 6 § 332. Obtaining n . . 0333. Witnesses nc § 334. Punishment hid, prL not 1335. Duties of di!, § 335a. Seizure and peri° mor- A I i 1 DEERING•S PENAL Compensation, as used in this section, dors not mean or include payment based upon sales made to persons who are not partici- pants in the scheme and who are not pur- chasing in order to participate in the scheme. 11968 ch 1468 § 1.) 22 Cal Jur 3d Criminal Law §3143. playing or operation of the bingo game. All such preprinted cards shall bear the legend, "for sale or use only in a bingo game autho- rized under Caldornia law and pursuant to local ordinance." it is the intention of the Legislature that bingo as defined in this subdivision applies exclusively to this section and shall not be applied in the construction or enforcement of any other provision of law. [1975 ch 869 § 1, ACA No. 3 adopted at Primary Election, June 8, 1976; 1977 ch 271 § 1, effective July 8, 1979; 1979 ch 1006 §1; 1980 ch 997§1; 1981 ch 804§1.] § 327. ["Endless chain" scheme; Defini- tion.) Every person who contrives, prepares, sets up, proposes. or operates any endless chain is guilty of a misdemeanor. As used in this section, an "endless chain" means any scheme for the disposal or distribution of property whereby a participant pays a valu- able consideration for the chance to receive compensation for introducing one or more additional persons into participation in the scheme or for the chance to receive compen- sation when a person introduced by the participant introduces a new participant. § 330 § 328. (Printing or aroduction services; Advertising.) Nothing n, this chapter shall make unlawful the printing or other produc- tion of any advertisements for, or any ticket. chance, or share in a tottery conducted in any other state or nation where such lottery is not prohibited by the laws of such state or nation; or the sale of such materials by the manufacturer thereof to any person or entity conducting or participating in the conduct of such a lottery in any such state or nation. This section does not authorize any adver- t :mens within California relating to lotter- ies, or the sale or resale within California of lottery tickets, chances, or shares to individ- uals, or acts otherwise in violation of any laws of the state. (1980 ch 216 § 1, effective June 23, 1980.1 ,ty CIiAP"T TER 10 an Gaming alf to § 330. Gaming: Punishment. I § 330a. Possession or keeping of slut or card machine, card dice or dice ha%.in6 more than six er faces: Punishment. nn § 330b. Possession of keeping of slot machines or devices. by § 330c. "Punchboard" defined. ng § 330.1. Manufacture. etc., of slot machine: Definition: Punishment. § 330.2. "Thing of value" defined. ci- is § 330.3. Seizure and disposal of slot machines. in § 330.4. Possession and control of slot machines prohibited: Prrmitting placement, etc., of slot machines: Confiscation. ed § 330.5. Application of §§ 330.1-330.4. all § 330.0. Slot machines located on or tran.lx�rted by vessel. in interstate or foreign commerce. 0) § 330.7. Antique slot machines: Drfensc to prosecution: Purpose of secti�a ite § 330.8. Authorized sale, transportation, storage, and manufacture of gambling devices for transportation in interstate or foreign commerce. ns § 331. Permitting gambling in house by owner or tenant. re § 332. Obtaining money or property by fraudulent game or trick. rs § 333. Witnesses neglecting or refusing to attend trial. to X34. Punishment for operating concts lon, or fraudulent) obtainingmoneyh means of n. hidden mechanical device with intent to diminish chance of patron to win in de de prize: Manufacturer's punishment: Restrictive regulation by local government not prohibited. 0- § 335. Duties of district attorneys, sheriffs, and others: Neglect of duty. n- n- § 335a. Seizure and destruction of gambling devices: Notice of intent to destroy: Waiting he peritxi: Jurisdiction of actions for recovery of devices: Disposition of seized he money.