(1) Require and verify that one hundred percent (100%) of the applicable net proceeds shall be distributed to local or regional nonprofits that have a history and mission of benefiting the San Miguel County, Colorado regional community or which local or regional nonprofits support programs or activities accessible to the Town of Telluride community. Any local or regional nonprofit designated to be a recipient of any of the net proceeds must be a federally recognized and qualified nonprofit pursuant to one (1) of the following provisions under applicable federal law pursuant to 26 U.S.C. § 501(c)(1), (3), (4), (6) through (8), (10), (13), (19) or (23). The Telluride Town Council, acting as the Telluride Liquor Licensing Authority, shall be the only entity that can permit an exception to the one hundred percent (100%) net proceeds distribution to local or regional nonprofits. Any Town Council exception for the local or regional nonprofit requirement can expressly extend for multiple years provided the same nonprofit granted the exception continues to be recognized, qualified and in good standing pursuant to the federal nonprofit exemption sections referenced above. However, no Town Council exception to this local or regional nonprofit distribution requirement shall exceed fifty percent (50%).

(2) No later than one hundred twenty (120) days following the conclusion of the special event permit, the Authority shall also require an affirmative accounting as to the required distribution of the net proceeds from the special event permit to nonprofits; except for minor administrative retention necessary for the special event permittee, the net proceeds from any special event permit must be distributed and no significant retention of the net proceeds is allowed by the special event permittee. The Telluride Town Council, acting as the Telluride Liquor Licensing Authority, shall be the only entity that can permit an exception, based on a finding of good cause, to the required one hundred twenty (120) day distribution to nonprofits.

(3) No distribution of the net proceeds from the special event permit to nonprofits shall be related to compensation for in-kind labor, services or materials provided by a nonprofit to the special event permittee or promoter or festival organizer.

(4) Each applicant for a special event permit shall work fully and cooperatively with the Authority to provide any and all information related to the overall accounting and net proceeds distribution to nonprofits as required by Colorado law, the Telluride Municipal Code and under any terms of the issuance of a special event permit.

(5) At all times, the Authority is entitled to examine and request documentation and/or accounting as to the reasonableness of any shared expenses if the holder of the special event permit uses a promoter or festival organizer.

(6) If the Authority needs to employ the private services of an accountant or other professional services to determine the reasonableness of any shared expenses between the holder of the special event permit and a promoter or festival organizer, those costs for any accounting and/or professional services shall be borne by the promoter or festival organizer as a condition of any minor or major festival event permit contract executed with the Town.