[Added 4-10-2018 by Ord.
No. 5-2018]
It shall be unlawful to conduct any raffle, including the sale
or issuance of chances, in the City without first having obtained
a raffle license in accordance with the provisions of this article.
The following words and phrases shall be given the meanings
ascribed herein unless the context clearly denotes a contrary intention:
The Raffles and Poker Runs Act, 230 ILCS 15/0.01, et seq.
A voluntary organization composed of individuals and businesses
who have joined together to advance the commercial, financial, industrial,
and civic interests of a community.
An organization or institution organized and operated to
benefit an indefinite number of the public. The service rendered to
those eligible for benefits must also confer some benefit to the public.
The president and City Council of the City of Hometown.
An organization or institution organized and operated to
provide systematic instruction in useful branches of learning by methods
common to schools and institutions of learning which compare favorably
in their scope and intensity with the course of study presented in
tax-supported schools.
An organization of persons having a common interest, the
primary interest of which is to both promote the welfare of its members
and to provide assistance to the general public in such a way as to
lessen the burdens of government by caring for those that otherwise
would be cared for by the government.
The location where a raffle organized by a law enforcement
agency or a statewide association that represents law enforcement
officials is conducted and the prize or prizes are awarded.
An organization composed of workers organized with the objective
of betterment of the conditions of those engaged in such pursuit and
the development of a higher degree of efficiency in their respective
occupations.
Any agency of Illinois or unit of local government which
is vested by law or ordinance with the duty to maintain public order
and to enforce criminal laws or ordinances.
The gross receipts from the conduct of raffles, less reasonable
sums expended for prizes, local license fees and other reasonable
operating expenses incurred as a result of operating a raffle.
An organization or institution organized and conducted on
a not-for-profit basis with no personal profit inuring to any one
as a result of the operation.
A form of lottery, as defined in § 28-2(b) of the
Criminal Code of 2012, conducted by an organization licensed under
this article, in which a person pays or agrees to pay something of
value for a chance, represented and differentiated by a number or
by a combination of numbers or by some other medium, one or more of
which chances is to be designated a winning chance; the winning chance
is determined through drawing or by some other method based on an
element of chance by an act or set of acts on the part of persons
conducting or connected with the lottery, except that the winning
chance shall not be determined by the outcome of a publicly exhibited
sporting contest. "Raffle" does not include a savings promotion raffle
authorized under § 5g of the Illinois Banking Act, Section
7008 of the Savings Bank Act, § 42.7 of the Illinois Credit
Union Act, § 5136B of the National Bank Act (12 U.S.C. § 25a),
or § 4 of the Home Owner's Loan Act (12 U.S.C. § 1463).
Any church, congregation, society, or organization founded
for the purpose of religious worship.
An organization or association comprised of members of which
substantially all are individuals who are veterans or spouses, widows,
or widowers of veterans, the primary purpose of which is to promote
the welfare of its members and to provide assistance to the general
public in such a way as to confer a public benefit.
Only bona fide religious, charitable, labor, business, fraternal,
educational, or veterans' organizations that operate without profit
to their members and which have been in existence continuously for
a period of five years immediately before making an application for
a raffle license and which have had during that entire five-year period
a bona fide membership engaged in carrying out their objects, nonprofit
fundraising organizations organized for the sole purpose of providing
financial assistance to an identified individual or group of individuals
suffering extreme financial hardship as a result of illness, disability,
accident or disaster, or law enforcement agencies and statewide associations
that represent law enforcement officials, shall be qualified for the
issuance of a raffle license.
The following qualified persons/organizations shall be ineligible
for a raffle license:
(A)
Any person who has been convicted of a felony;
(B)
Any person who is or has been a professional gambler or gambling
promoter;
(C)
Any person who is not of good moral character;
(D)
Any firm or corporation in which a person defined in Subsection (A),
(B), or (C) has a proprietary, equitable or credit interest, or in
which such a person is active or employed;
(E)
Any organization in which a person defined in Subsection (A), (B),
or (C) is an officer, director, or employee, whether compensated or
not;
(F)
Any organization in which a person defined in Subsection (A), (B),
or (C) is to participate in the management or operation of a raffle;
and
(G)
Any organization that has had a raffle license revoked that has not
eliminated the basis for such revocation.
Any organization desirous of conducting a raffle within the
City shall complete and file with the City Clerk an application that
shall include the following information:
(A)
The name, address and telephone number of the organization, including
the manager;
(B)
Proof of eligibility for a raffle license;
(C)
Identification of the area or areas within the City where raffle
chances will be sold or issued;
(D)
The time period during which raffle chances are to be sold or issued;
(E)
The time of determination of winning chances;
(F)
The location or locations where winning chances are to be determined;
(G)
A sworn statement on the letterhead of the organization executed by the presiding officer and secretary of the organization attesting to the not-for-profit character of the applicant and that upon reasonable inquiry, there exists no basis for the denial of such license under § 11.505 of this article; and
(H)
The name of any other jurisdiction in the State of Illinois in which
the organization is licensed to conduct raffles.
The fee for a raffle license shall be $25 for each raffle to
be conducted. The license fee shall be tendered with the prospective
licensee's application. The license fee shall be nonrefundable unless
the applicant is denied a license.
A raffle license shall be issued to qualified organizations
not otherwise ineligible that have completed and filed an application
therefor, have tendered the applicable license fee, and have tendered
a copy of the fidelity bond for its manager in conformance with the
provisions of this article. Raffle licenses shall be granted or denied
by the City within 30 days after the date of filing of the application.
Each raffle license shall be valid for one raffle or for a specified
number of raffles to be conducted within a specified period of a calendar
year as identified on the raffle license. Raffle licenses are not
assignable or transferable.
No raffle license shall be required for a political committee
conducting a raffle within the City that has a valid raffle license
issued by the Illinois State Board of Elections, nor shall a raffle
license be required for the sale or issuance of raffle chances within
the City by law enforcement agencies or statewide associations that
represent law enforcement officials that are otherwise licensed by
another jurisdiction because the key location of the raffle is located
outside of the City.
Raffles conducted in City shall be subject to the following
restrictions:
(A)
The entire net proceeds of any raffle shall be exclusively devoted
to the lawful purposes of the organization permitted to conduct that
raffle;
(B)
No person except a bona fide member of the sponsoring organization
shall participate in the management or operation of a raffle;
(C)
No person may receive any remuneration or profit for participating
in the management or operation of a raffle;
(D)
No licensee shall rent a premises where a winning chance or chances
are to be determined from an organization not licensed under this
article;
(E)
Excepting law enforcement agencies and statewide associations that
represent law enforcement officials, raffle chances for raffles to
be conducted in the City shall only be sold or issued within the corporate
boundaries of the City;
(F)
Raffle chances shall only be sold or issued within the area specified
on the license and winning chances shall be determined only at those
locations specified on the license;
(G)
A person under the age of 18 years shall not participate in the conducting
of a raffle without the written permission of a parent or guardian;
(H)
A person under the age of 18 years shall only be within the area
where winning chances are determined when accompanied by a parent
or guardian;
(I)
The aggregate retail value of all prizes and merchandise awarded
by a licensee in a single raffle shall not exceed $1,000,000;
(J)
The maximum retail value of each prize awarded in a single raffle
shall not exceed $1,000,000;
(K)
The maximum price that may be charged for a raffle chance shall not
exceed $200; and
(L)
The maximum period for which chances may be issued or sold shall
not exceed 12 months.
[Amended 4-24-2018 by Ord. No. 7-2018]
[Amended 4-24-2018 by Ord. No. 7-2018]
The operation and conduct of each raffle shall be under the
supervision of a single manager designated by the organization and
bonded in accordance with the provision of this section. The manager
shall provide a fidelity bond in favor of the licensee conditioned
upon his honesty in the performance of his duties in the amount of
50% of the anticipated aggregate value of all raffle prizes and merchandise
to be awarded by the licensee in the license year. The term of the
bond shall provide that notice shall be given in writing to the City
not less than 30 days prior to its cancellation or amendment. The
bond requirement of this section may be waived by the City Council,
including a waiver provision on the license issued to an organization,
provided that the license containing such bond waiver is approved
by the unanimous vote of the members of the organization.
(A)
Each organization licensed to conduct raffles shall maintain the
records of its gross receipts, expenses, and net proceeds for each
single gathering or occasion where winning chances are determined.
All deductions from gross receipts for each single gathering or occasion
shall be documented with receipts or other records indicating the
amount, a description of the purchased item or service or other reason
for the deductions, and the recipient. The distribution of net proceeds
shall be itemized as to payee, purpose, amount and date of payment.
(B)
Gross
receipts from the operation of raffle programs shall be segregated
from other revenues of the organization, including bingo gross receipts,
if bingo games are also conducted by the organization pursuant to
license therefor issued by the Department of Revenue of the State
of Illinois, and placed in a separate account. Each organization shall
have separate records of its raffles. The person who accounts for
gross receipts, expenses, and net proceeds from the operation of raffles
shall not be the same person who accounts for other revenues of the
organization.
(C)
Each organization licensed to conduct raffles shall report to the
City and its membership within seven days after the conclusion of
each raffle its gross receipts, expenses and net proceeds from raffles,
and the distribution of net proceeds itemized as required in this
article.
(D)
Records shall be preserved for three years, and organizations shall
make available their records relating to operation of raffles for
public inspection at reasonable times and places.
A raffle license issued under this article may be revoked or
suspended by the City Clerk for a violation of this article, or any
other provision of this Code, upon notice and an opportunity to be
heard before the City Council.
Any person, firm, corporation or organization violating any
provision of this article shall be fined not less than $250 nor more
than $750 for each offense. A separate offense shall be deemed committed
on each day during or on which the violation occurs or continues.
