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HomeMy WebLinkAboutOrdinances - MC-19-1203 - 09/03/2019 - Raffle Code CITY OF MCHENRY MCHENRY COUNTY STATE OF ILLINOIS ORDINANCE NUMBER MC-19-1203 An Ordinance Repealing and Replacing Chapter 12 Licenses and Permits, Article III, Raffles Sections 12-55 through 12-65 of the City of McHenry's Municipal Code Adopted by the Mayor and City Council Of the City of McHenry McHenry County State of Illinois September 3,2019 Published in pamphlet form by authority of the Mayor and City Council of the City of McHenry, McHenry County,Illinois this W1 day of September,2019. ORDINANCE NO. MC-19-1203 An Ordinance Repealing and Replacing Chapter 12 Licenses and Permits,Article III,Raffles Sections 12-55 through 12-65 of the City of McHenry's Municipal Code WHEREAS,the City of McHenry,McHenry County,Illinois,is a home rule municipality as contemplated under Article VII, Section 6,of the Constitution of the State of Illinois,and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois; NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF McHENRY, McHenry County, Illinois, as follows: SECTION 1: Chapter 12,Licenses and Permits,Article III,Raffles,Sec. 12-55 through Sec. 12-6, shall be fully repealed and replaced in its entirety and restated as referenced in Exhibit A attached hereto. SECTION 2: If any section, paragraph, subdivision, clause, sentence or provision of this Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment shall not affect,impair,invalidate or nullify the remainder thereof,which remainder shall remain and continue in full force and effect. SECTION 3:All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 4: This Ordinance shall be in full force and effect upon its passage,approval and publication in pamphlet form(which publication is hereby authorized) as provided by law. Passed and approved this Yd day of September, 2019. Ayes Nays Absent Abstain Alderwoman Baehne k Alderman Devine Alderman Glab X Alderman Mihevc Ir Alderwoman Miller X Alderman Santi X Alderman Schaefer X 1,4,k1 Wayne At 14ay&r Trisha Ramel, City Clerk Exhibit A MUNICIPAL CODE CHAPTER 12,ARTICLE III: RAFFLES Sec.12-55 Definitions. As used in this chapter, the following terms shall have the meanings indicated: Charitable. An organization or institution organized and operated to benefit an indefinite number of the public. The services rendered to those eligible for benefits must also confer some benefit on the public. Educational. 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. Fraternal. 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. Key Location. The location where the winning chances in the raffle are determined. Labor. 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. Net Proceeds. 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. Nonprofit. An organization or institution organized and conducted on a not-for-profit basis with no personal profit inuring to anyone as a result of the operation. Raffle. A form of lottery, as defined in subsection (b) of Section 28-2 of the Criminal Code of 2012 conducted by an organization licensed under this chapter 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. Religious. Any church,congregation, society or organization founded for the purpose of religious worship. Exhibit A Veterans. An organization or association comprised of members which are substantially veterans and spouses, widows or widowers of veterans, the primary purpose of which is to promote the welfare of its membership and to provide assistance to the general public in such a way as to confer a public benefit. Sec. 12-56. Authority for Issuance: Applicability. The Office of the City Administrator or designee shall have the authority to issue licenses for raffles subject to the limitations set forth in this Ordinance. Nothing in this Chapter shall be construed to authorize the conducting or operating of any gambling scheme, enterprise, activity or device other than a raffle provided herein. Sec. 12-57 License Required. (a) It shall be unlawful for any person, firm or corporation to conduct raffles or chances within the City of McHenry unless the person,firm or corporation has a valid license issued in accordance with the provisions of this chapter. (b) Licenses shall be issued only to bona fide religious, charitable, labor, fraternal, educational, veteran or other bona fide not-for-profit organizations that operate without profit to their members and which have been in existence continuously for a period of five years immediately before making application for a license and which have been during that entire five-year period engaged in carrying out their objects, or to a nonprofit fund-raising organization that the City of McHenry 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, disaster or to any law enforcement agency or statewide association that represents law enforcement. Sec. 12-58. Application for License. Applications for such licenses shall be made to the City Administrator or his/her designated representative, signed by the applicant or its duly authorized representatives and verified by oath or affidavit, and shall contain the following information and statements: (a) Name and address of the applicant; (b) The area or areas within the City and outside the City in which the raffle chances will be sold and issued; (c) The time period during which raffle chances will be sold or issued; (d) The date,time, manner and"Key Location" of determining the winning chance(s); (e) A sworn statement attesting to the not-for-profit character of the respective licensee organization signed by the presiding officer and/or secretary of that organization; (f) A copy of the applicants not-for-profit articles of incorporation and/or charter; and Exhibit A (g) Such other information as the Office of the City Administrator may require under the authority of this Chapter or 230 ILCS 15. (h) Each license issued under this article shall be valid for a single raffle or a specified number of raffles to be conducted during a specific period not to exceed one (1) year. Sec. 12-59. License Fees. Cash Value of Merchandise Value Lima V, $0 - $100,000 None $101,000 - $499,000 $500.00 $500,000 - $999,000 $1,000.00 $1,000,000 or greater $2,500.00 Sec. 12-60. Restrictions on Issuance of Licenses. No such license shall be issued to: (a) A person who has been convicted of a felony; (b) Any person who is or has been a professional gambler or gambling promoter; (c) A person who is not of good moral character; (d) A person who license issued under this chapter has been revoked for cause; (e) A person who,at the time of application for renewal of any license issued hereunder would not be eligible for such license upon a first application; (f) 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 employed; (g) Any organization in which a person defined in(a),(b)or(c)is an officer,director,or employee, whether compensated or not; or (h) Any organization in which a person defined in(a),(b)or(c)is to participate in the management or operation of a raffle as defined in this code. Sec. 12-61. Conduct of Raffles. The conducting of raffles is subject to the following restrictions: (a) The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the organization permitted to conduct that game. (b) No person except a bona fide director, officer, employee or member of the sponsoring organization may participate in the management or operation of the raffle. (c) No person may receive any remuneration or profit for managing or participating in the management of the raffle. Exhibit A (d) Sponsoring organizations may contract with third parties who, acting at the direction of and under the supervision of the sponsoring organization, provide bona fide services to the sponsoring organization in connection with the operation (not management) of a raffle and may pay reasonable compensation for such services including: (1) advertising, marketing and promotion, (2) legal, (3) procurement of goods, prizes, wares and merchandise for the purpose of operating the raffle, (4) rent, if the premises upon which the raffle will be held is rented, (5) accounting, auditing and bookkeeping, (6) website hosting, (7) mailing and delivery, (8)banking and payment processing, or (9) other services related to the operation of the raffle. (e) A licensee may rent a premises on which to determine the winning chance or chances in a raffle provided that the rent is not determined as a percentage of the receipts or profits from the raffle. (f) Raffle chances may be sold or issued throughout the State. (g) Winning chances may be determined only at the "Key Location" identified on the application and subsequent license. (h) A person under the age of 18 years may participate in the conducting of raffles or chances. A person under the age of 18 years may be within the area where winning chances are being determined only when accompanied by his/her parents or guardian and in accordance with applicable law. Sec. 12-62. Raffles Manager; Bond. Operation and conduct of raffles shall be under the supervision of a single raffles manager designated by the person or organization making application for a license. The raffles manager shall file with the Officer of the City Administrator a fidelity bond in an amount not less than the anticipated gross receipts for each raffle. The bond shall be in favor of the organization and conditioned upon his/her honesty in the performance of duties. The bond shall also provide that notice be given in writing to the City of McHenry not less than 30 days prior to its cancellation. The City Administrator or his/her designated representative is authorized to waive the requirement for a bond by including a waiver provision in the license issued, provided that the license containing such waiver provision shall be granted only by the affirmative vote of the requisite number of members of the licensed organization or, if the licensed organization does not have members, of members of the governing board of the organization, to constitute an affirmative action of the licensed organization. Sec. 12-63. Raffle Tickets. (a) Each raffle ticket, chance or other raffle token shall state, on its face,the name and address of the licensee, the date or dates of the drawings, and the prize or prizes to be awarded; provided however,that this requirement shall not apply to any raffle in which the following occurs: Exhibit A (1)prizes in aggregate value under fifty dollars ($50.00) are awarded, (2) any raffle in which raffle chances are sold only on the date of the drawing during the event at which the drawing is to be conducted. (3) any raffle in which the chances sold document a serial number which can be traced back to a specific raffle which clearly defines the name of the organization, location, drawing dates, times and prize amounts. (b) No such raffle ticket, chance or token shall be sold or issued more than three hundred sixty five (365) days before the determination of a winning chance or chances. (c) If any raffle for which a license is issued under this Chapter is canceled, or if any such raffle is not conducted on the date contained in the application for license,the licensee shall refund all money paid for any raffle chances issued or sold to the persons to whom such raffle chances were issued or sold within forty-five (45) days after the date on which the raffle was to be conducted or within forty-five (45) days after the cancellation of the raffle, whichever is sooner. Sec. 12-64. Prize Limit and Raffle Duration. (a) The aggregate retail value of all prizes or merchandise awarded by a licensee and received by a player or players in a single raffle shall not exceed $2,000,000.00. "Aggregate retail value of all prizes or merchandise awarded" shall mean the gross value, before taxes, of all the prizes or merchandise awarded in a single raffle. (b) The maximum retail value of each prize awarded by a licensee and received by a player or players in a single raffle shall be $2,000,000.00."Maximum retail value of each prize awarded"shall mean the gross value,before taxes,of each single prize awarded in a single raffle. (c) The maximum price which may be charged for each raffle chance issued or sold shall be $100. (d) The maximum number of days during which chances may be issued or sold is 365. (e) In the event that the Chief of Police (or designee) determines that a proposed raffle is adversely impacting city services or the safety of the community due to size, traffic, security or other reasons, a notice may be issued requiring the game be brought to an end within seven (7) days. Sec. 12-65 Records. (a) Each organization licensed to conduct raffles and changes shall keep records of its gross receipts, expenses and net proceeds for each single gathering or occasion at which 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 deduction,and the recipient. The distribution of net proceeds shall be itemized as to payee, purpose, amount and date of payment. Exhibit A (b) Gross receipts from the operation of raffles programs shall be segregated from other revenues of the organization, including bingo gross receipts, if bingo games are also conducted by the same nonprofit organization pursuant to a 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 monthly to its membership, and to the City of McHenry, its gross receipts, expenses and net proceeds from raffles, and the distribution of net proceeds itemized as required in this section. Such reports shall be filed with the Office of the City Administrator on the fifteenth (151") day of each month. (d) Records required by this section 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. CERTIFICATION I,Trisha Ramel,do hereby certify that I am the duly appointed,acting and qualified Clerk of the City of McHenry, McHenry County, Illinois, and that as such Clerk, I am the keeper of the records and minutes and proceedings of the Mayor and Council Members of said City of McHenry. I do hereby further certify that at a regular meeting of the Mayor and Council Members of the City of McHenry, held on the 3rd day of September, 2019, the foregoing Ordinance entitled Ordinance Repealing and Replacing Chapter 12 Licenses and Permits, Article III, Raffles Sections 12-55 through 12-65 of the City of McHenry's Municipal Code,was duly passed by the City Council of the City of McHenry. The pamphlet form of Ordinance No. MC-19-1203, including the Ordinance and a cover sheet thereof,was prepared,and a copy of such Ordinance was posted in the City Hall,commencing on the 4th day of September, 2019, and will continue for at least 10 days thereafter. Copies of such Ordinance are also available for public inspection upon request in the office of the City Clerk. I do further certify that the original, of which the attached is a true and correct copy, is entrusted to me as the Clerk of said City for safekeeping, and that I am the lawful custodian and keeper of the same. GIVEN under my hand and seal this 4th day of September 2019. �L rmfk�' Tris Ramel, City Clerk City of McHenry, McHenry County, Illinois (SEAL)