§ 9.27.050. Licensing of certain organizations to operate raffles.

A.

No person, firm, corporation, voluntary association, or other organization shall operate or conduct a raffle within the corporate boundaries of the city, and no chance connected with any raffle shall be sold within the corporate boundaries of the city, unless such person, firm, corporation, voluntary association, or other organization shall have first obtained from the city clerk a license to operate or conduct such raffle as provided in this section.

B.

For purposes of this section, the terms defined below shall have the meanings given them:

1.

"Business" means a voluntary organization composed of individuals and businesses who have joined together to advance the commercial, financial, industrial, and civic interests of the community.

2.

"Charitable" means 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 on the public.

3.

"Educational" means 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.

4.

"Fraternal" means 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.

5.

"Labor" means an organization composed of workers organized with the objectives of betterment of the conditions of those engaged in such pursuit and the development of higher degree of efficiency in their respective occupations.

6.

"Net proceeds" means 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.

7.

"Non-profit." Means 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.

8.

"Raffle" means a form of lottery, as defined in 720 ILCS 5/28-2, conducted by an organization licensed under this section, in which:

a.

The player 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 the winning chance; and

b.

The winning chance is to be determined through a 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.

9.

"Religious" means any church, congregation, society, or organization founded for the purpose of religious worship.

10.

"Veterans" means an organization or association comprised of members of which substantially all are individuals who are veterans of military or naval service 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.

C.

Licenses under this section shall be issued only to a bona fide religious, charitable, labor, business, fraternal, educational, or veterans' organization that operates without profit to its members and which has been in existence continuously for a period of five years immediately before making application for a license and which has had during that entire five-year period a bona fide membership engaged in carrying out its objects, and a non-profit fundraising organization the mayor determines is organized for the sole purpose of providing financial assistance to an identified individual or group of individuals suffering extreme financial hardship as the result of an illness, disability, accident, or disaster.

D.

No license shall be issued under this section if:

1.

The aggregate retail value of all prizes or merchandise awarded by a licensee in a single raffle exceeds two hundred thousand dollars;

2.

The maximum retail value of each prize awarded by a licensee in a single raffle exceeds one hundred thousand dollars;

3.

The maximum price which may be charged for each raffle chance issued or sold by the licensee exceeds two hundred dollars;

4.

The maximum number of days during which chances may be issued or sold by the licensee for a single raffle exceeds ninety; or

5.

The maximum period of time during which chances may be issued or sold by the licensee for a specified number of raffles exceeds one year.

E.

Each applicant for a license to be issued under this section shall complete and execute under oath a written application to be filed with the city clerk upon such form as the city clerk may prescribe providing the following information:

1.

The area or areas within the corporate boundaries of the city in which raffle chances will be sold of issued;

2.

The time period during which raffle chances will be sold or issued;

3.

The time of determination of winning chances and the location or locations at which winning chances will be determined;

4.

A sworn statement attesting to the non-profit character of the applicant and that the applicant meets the time period requirements of subsection (C)(1) above or is otherwise within the scope of subsection (C)(2) above;

5.

The facts and circumstances showing that the limitations of subsection D above are complied with in the conduct of each raffle described in the application; and

6.

The application shall be signed by the presiding officer and the secretary of the organization.

F.

The following are ineligible to conduct raffles and shall be denied a license notwithstanding compliance with the application procedures of subsection E above:

1.

Any person who has been convicted of a felony;

2.

Any person who is or has been a professional gambler or gambling promoter;

3.

Any person who is not of good moral character;

4.

Any firm or corporation in which a person described in subsection (F)(1), (2), or (3) above has a proprietary, equitable, or credit interest or in which such a person is active or employed;

5.

Any organization in which a person described in subsection (F)(1), (2), or (3) above is an officer, director, or employee, whether compensated or not; or

6.

Any organization in which a person described in subsection (F)(1), (2), or (3) above is to participate in the management or operation of a raffle.

G.

In order to obtain a license under this section, the applicant must pay to the city a license fee of ten dollars for each application. Licenses issued pursuant to this section shall be valid for one raffle or for a specified number of raffles to be conducted during a specified period not to exceed one year. Any license issued hereunder may be suspended or revoked by the mayor for any violation of this section. The city council shall act on properly completed and filed license applications within thirty days from the date of application. No license under this section shall be issued without approval of the city council.

H.

A license issued under this section authorizes the licensee to conduct raffles subject to the following conditions and restrictions:

1.

The provisions of subsections (D)(1) through (5) above are complied with in the conduct of each raffle authorized in the license;

2.

The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the organization as described in the application;

3.

No person except a bona fide member of the sponsoring organization may participate in the management or operation of any raffle authorized in the license;

4.

No person may receive any remuneration or profit for participating in the management or operation of any raffle authorized in the license;

5.

A licensee may rent a premises on which to determine the winning chance or chances in a raffle only from an organization which is also licensed under this section;

6.

Raffle chances may be sold or issued only within the area specified on the license and winning chances may be determined only at those locations specified on the license; and

7.

A person under the age of eighteen years may participate in the conducting of raffles or sales of chances only with permission of a parent or guardian. A person under the age of eighteen years may be within the area where winning chances are being determined only when accompanied by his or her parent or guardian.

I.

All operations of and the conduct of raffles licensed under this section shall be under the supervision of a single raffle manager designated by the licensee in its application. In the event of the death, resignation, or removal of the designated raffle manager, the licensee shall designate in writing a successor or substitute raffle manager. No person shall be designated a raffle manager by any licensee who would be ineligible to conduct raffles under the provisions of subsection F above. No bond shall be required of such raffle manager, unless required by the licensee.

J.

The violation of any provision of this chapter shall be punished as provided in Municipal Code Section 1.16.010.

(Ord. No. 888, § 5, 8-6-12)