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Ordinance 1986-03 i p ORDINANCE NO. UNITED CITY OF THE VILLAGE OF YORKVILLE RAFFLE ORDINANCE. WHEREAS, the United City of the Village of Yorkville may, pursuant to Public Act 81-1365 as amended, enacted by the 81st General Assembly of the State of Illinois, establish a system for the licensing of organizations to operate raffles; NOW THEREFORE, BE IT RESOLVED by the City Council and mayor of the United City of the Village of Yorkville, Kendall County, Illinois, as follows: Article I --- Definitions Section 1. State Law. Whenever reference herein is made to "State Law" it shall mean and refer to an Act of the General Assembly of the State of Illinois, entitled "an Act to provide for licensing and regulating certain games of chance and amending certain Acts herein named.," approved August 5, 1981, as amended. Section 2. Net Proceeds. Net Proceeds means the gross receipts from the conduct of raffles, less reasonable sums expended for prizes, local li- cense fees, and other reasonable operating expenses incurred as a results of operating a raffle. Section 3. Raffle Licensing Agent for The United City of the Village,of Yorkville is the City Clerk. Section 4. Other. Unless the context otherwise requires, all words and phrases used herein shall have the same meaning as the same or similar words or phrases defined and used in this State Law. Article II --- Oualifications Section 1. Applicants. A license to operate a raffle shall be issued only to bona fide religious, charitable, labor, fraternal, educational or veterans' organizations, that operate without profit to their members and which have been in existence continously for a period of 5 years immediately before making application for a license and which have had during that entire 5 year period a bona fide membership engaged in carrying out their objects. Section 2. No license shall be issued to: (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 (a) , (b) or (c) has a proprietary, equitable, or credit interest, or in which such a person is active or em- ployed; (e) any organization in which such a person defined in (a) (b) or (c) is an officer, director, or employee, whether compensated or not; (f) any organization in which a person defined in (a) (b) or (c) is to participate in the management or oper- ation of a raffle as defined by State Law. Article III --- Application Section 1. Required Information. Application forms shall be furnished by the Raffle Licensing Agent and filed with same. Said application shall show the following: (a) the name and address of the applicant; (b) the date, time and location at which winning chances will be determined; (c) place and date of chartering or incorporation of appli- cant, if applicable; (d) name, address, telephone number, Social Security number and date of birth of presiding officer, secretary, and raffle manager of applicant; (e) the area or areas in which raffle tickets will be sold; (f) a list of prizes and the retail price of each prize to be awarded in a single raffle; and (g) the price to be charged for each ticket sold. Section 2. The license application shall contain a sworn statement attesting to the accuracy of the information provided and to the not-for- profit character of the prospective licensee. Said statement shall be signed -2- l by the presiding officer, secretary, and raffle manager of that prospective licensee. Section 3. An application for a license under this Ordinance is valid for one raffle only. Section 4. Any raffle in which the aggregate value of the prizes is less that $500 shall be considered automatically licensed without necessity of an application. Article IV --- Regulations Governing Licensee Section 1. Conduct of Raffles. The conducting of raffles is subject to the following restrictions: (a) The entire net proceeds of any raffle must be exclus- ively devoted to the lawful purposes of the licensee permitted to conduct that game. (b) No person except a bona fide member of the licensee organization may participate in the management or operation of the raffle:. (c) No person may receive any remuneration or profit for participating in the management or operation of the raffle. (d) Raffle chances may be sold or issued only within the area or areas specified on the license; or in other jurisdictions which have approved a similar raffle ordinance. (e) Winning chances must be determinedonly at the time, date, and location specified on the license. (f) Any person selling raffle chances must carry a copy of the license issued for the raffle. Section Z. Raffle Limits. (a) The aggregate retail value of all prizes or merchan- dise awarded by a licensee in a single raffle, shall not exceed $50,000.00. (b) The maximum retail value of each prize awarded by a licensee in a single raffle, shall not exceed $50,000.00. (c) The maximum price which may be charged for each raffle chance issued or sold, shall not exceed $100.00. -3- (d) The maximum number of days during which chances may be issued or sold, shall not exceed 180. (e) The license shall not be valid for more than 210 days. Section 3. Raffle Manager and Bond. (a) All operation and conduct of raffles shall be under the supervision of a single raffle manager as design- ated on the license application. (b) A manager shall give a fidelity bond in the sum of the aggregate retail value of the prizes as set out on the application. The bond shall be in favor of the organ- ization conditioned upon the raffle manager's honesty in the performance of his duties. Said bond shall pro- vide that notice shall be given in writing to the licensing authority not less than thirty days prior to its cancellation period. If the retail value of the prizes exceed $15,000.00, such bond shall be a corpor- ate surety. Section 4. Records. (a) Cross receipts from the operation of raffle programs shall be segrageted from other revenues of the licensee; (including bingo gross receipts, if bingo games are also con- ducted by the same licensee pursuant to license 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 and expenses from the operation of raffles shall not be the same per- son who accounts for other revenues of the organization. (b) Each licensee shall keep records of gross receipts expenses, and net proceeds for each single raffle at which winning chances are determined. All reasonable operating expenses deducted from gross receipts for each single raffle shall be documented with receipts or other records indicating the amount, a description of the purchase item or service -4- or other reason for the deduction and the recipient. The distribution of net proceeds shall be itemized as to payee, purpose, amount, and date of payment. (c) Each licensee, within third- days (3) of the raffle, shall report to its membership and to the Raffle Licens- ing Agent each of the following: (1) gross receipts generated by the conducting of the raffle; (2) an itemized list of all reasonable operating expenses which have been deducted from the gross receipts; (3) net proceeds from the conducting of the raffle; (4) an itemized list of the distribution of the net proceeds; and (5) a list of prize winners. (d) Records required by this Section shall be preserved for three (3) years, and the organization shall make avail- able for public inspection their records relating to the operation of a raffle at reasonable times and places. Section S. Nothing in the Ordinance shall be construed to authorize the conducting or operating of any gambling scheme, enterprise, activity, or de- vice other than raffles as provide by State Law. Article V --- Fees Aggregate Prize Value Fee Less than $500 None $501 and over $10.00 Article DTI --- Administration Section 1. The Raffle Licensing Agent shall be charged with the admini- stration of this Ordinance. Section 2. The authority and jurisdiction of The United City of the Village of Yorkville to issue a license to a prospective licensee shall extend -5- i only throughout the corporate boundries of the City. Section 3. The Raffle Licensing Agent shall act upon a license applic- ation within ten (10) days from the date of the application. Section 4. The Mayor and the City Council may enter into a written contract with one or more municipalities or the County of Kendall which have adopted a raffle Ordinance consistent with this Ordinance to jointly establish a sys- tem for the licensing of organizations to operate raffles. Such contract shall be consistent with the limitations of this Ordinance except that a license issued by one Government unit shall be valid throughout the jurisdiction of all parties to the contract. Article VII --- Enforcement Section 1. Penalties. Failure to comply with any of the requirements of this Ordinance shall constitute a violation. Whoever violates any of the provisions of this Ordinance is subject to Class "C" Misdemeanor Provisions, which are thirty (30) days imprisonment and/or a fine of $500.00 (Five Hundred Dollars) . Each day the violation continues shall be considered a separate offense. Section 2. Abatement. The imposition of the penalties herein prescribed shall not preclude the State's Attorney from instituting appropriate action to prevent unlawful raffles or to restrain, correct, or abate a violation of this Ordinance or of the conditions of a raffle license issued pursuant hereto. Article VIII --- Severablility Clause If any provision of this Ordinance or the application thereof is held to be unconstitutional or otherwise invalid by a court of competent jurisdiction, such ruling shall not affect any other provisions of this Ordinance not spec- ifically included in such ruling or which can be given effect without the unconstitutional or invalid provision or application; and to this end, the pro- visions of this Ordinance are declared severable. This Ordinance will be effective " t�%�(,� . PASSED by the Mayor and City Council on <_Z7) L9 f& Mayoll- -6- Attest: j City Clerk -7-