Use of net proceeds of event; expenses.

(1) Except as provided in subsection (2), the entire net proceeds of an event conducted under a license issued under this article must be devoted exclusively to the lawful purposes of the licensee. A licensee shall not incur or pay an item of expense in connection with holding, operating, or conducting an event except the following expenses in amounts that the commissioner determines to be reasonable: (a) The purchase or rental of equipment necessary for conducting an event and payment of services reasonably necessary for the repair of equipment. (b) Cash prizes or the purchase of prizes of merchandise. (c) Rental of the location at which the event is conducted. (d) Janitorial services. (e) The fee required for issuance or reissuance of a license to conduct the event. (f) Other reasonable expenses incurred by the licensee, not inconsistent with this article, as permitted by rule of the commissioner. (2) A qualified organization described in section 3a(d)(ii) shall use the entire net proceeds of an event, after paying items of expense incurred in reasonable amounts in connection with the holding, operating, or conducting of the event and listed in subsection (1), only for the expense of training or purchasing goods or services for the support of the activities of the component.