(A) Definitions. For the purposes of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BUSINESS. A voluntary organization composed of individuals and businesses who have joined together to advance the commercial, financial, industrial and civic interests of a community.
CHARITABLE. 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.
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.
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.
LICENSEE. An organization which has been issued a license to operate a raffle.
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.
NON-PROFIT. 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.
PERSON. An individual, firm, organization, public, or public, or private corporation, government, partnership, or unincorporated association.
RAFFLE. A form of lottery, as defined in ILCS Ch. 720, Act 5, § 28-2(b), conducted by an organization licensed under this section, in which:
(1) 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 means, one or more of which chances is to be designated as a winning chance;
(2) 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.
RAFFLE ADMINISTRATOR(S). The Village Clerk of Frankfort.
RAFFLE EVENT. An event at which at least one raffle is conducted by a licensee.
RELIGIOUS. Any church, congregation, society, or organization founded for the purpose of religious worship.
VETERANS. 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.
(B) Classification of licenses.
(1) Class A: General raffle license. A general raffle license shall permit an organization the ability to conduct a raffle that may include multiple drawings to award prizes, but all drawings must occur on the same day and at the same location and within the confines of the same raffle event.
(2) Class B: Financial hardship raffle license. A Class B raffle license allows a not-for-profit fund raising organization or group, organized for the sole purpose of providing financial hardship assistance to an identified individual or group of individuals suffering severe financial hardship as a result of an injury, disability, accident, or disaster, to conduct one raffle event for that purpose.
(3) Class C: Annual raffle license. An annual raffle license permits an organization to regularly conduct raffles as defined herein within 12 consecutive calendar months. Such license shall permit no more than 52 raffle events per year.
(C) License required. It shall be unlawful for any person to conduct or operate a raffle, or to sell, offer for sale, convey, issue, or otherwise transfer for value a chance on a raffle, unless conduct pursuant to a license duly issued by the village and in accordance with the provisions of this section. Such license, when issued, is effective for all areas within the village. Such license is not effective outside the village.
(D) Raffle application. Any person seeking to conduct or operate a raffle shall file an application therefor with the Village Clerk on forms provided by the village. Such application shall contain the following information:
(1) The name, address, and type of organization;
(2) The length of existence of the organization and, if incorporated, the date and state of incorporation;
(3) The name, address, telephone number, and date of birth of the organization’s presiding officer, secretary, raffles manager, and any other members responsible for the conduct and operation of the raffle;
(4) The aggregate retail value of all prizes to be awarded in the raffle;
(5) The maximum retail value of each prize to be awarded in the raffle;
(6) The maximum price charged for each raffle chance issued or sold;
(7) The maximum number of raffle chances to be issued;
(8) The area or areas within the village in which raffle chances will be sold or issued;
(9) The time period during which raffle chances will be sold or issued;
(10) The date, time, and location at which winning chances will be determined;
(11) A sworn statement attesting to the not-for-profit character of the applicant organization, signed by its presiding officer and secretary;
(12) A certificate signed by the presiding officer of the applicant organization attesting to the fact that the information contained in the application is true and correct; and
(13) A fidelity bond in an amount equal to the aggregate retail value of all prizes to be awarded shall accompany such application.
(E) Licensee qualifications.
(1) Raffle licenses shall be issued only to 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 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, or to a non-profit fundraising organization that the licensing authority 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.
(2) The following are ineligible for any raffle license:
(a) Any person whose felony conviction will impair the person’s ability to engage in the licensed position;
(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 division (E)(2)(a), (b) or (c) of this section 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 division (E)(2)(a), (b) or (c) of this section is an officer, director, or employee, whether compensated or not; and
(f) Any organization in which a person defined in division (E)(2)(a), (b) or (c) of this section is to participate in the management or operation of a raffle as defined in this section.
(F) License issuance.
(1) The Village Clerk shall receive all license applications. If an application is approved, the Village Clerk shall forthwith issue a raffle license to the applicant. The village shall act on a license application within 30 days from the date of application.
(2) A Class A and B raffle license shall be valid for a period of 60 days from and after its issuance. In no event shall a Class C license be authorized for a period longer than one year.
(3) A raffle license shall contain the following:
(a) The area in which raffle chances will be sold or issued;
(b) The period of time during which raffle chances will be sold or issued; and
(c) The date, time, and location on or at which the winning chances will be determined.
(4) Such license shall be prominently displayed at the time and location of the determination of the winning chances.
(5) A license may be suspended or revoked for any violation of this section.
(G) Licensing fees. A license fee of $25 shall be payable to the village upon submission of a raffle application. When application for a raffle license is filed, such application fee is nonrefundable, even if the application is denied or in the event the raffle is cancelled for any reason.
(H) Conduct of raffles. The conducting of raffles is subject to the following restrictions:
(1) The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the licensee.
(2) No person, except a bona fide member of the licensee may participate in the management or operation of the raffle.
(3) No person may receive remuneration or profit for participating in the management or operation of the raffle.
(4) 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.
(5) Raffle chances may be sold, offered for sale, conveyed, issued or otherwise transferred for value only within the area specified on the license and winning chances may be determined only at those locations specified on the license.
(6) A person under the age of 18 years may participate in the conducting of raffles or chances only with the permission of a parent or guardian. A person under the age of 18 years may be within the area where winning chances in a raffle are being determined only when accompanied by his or her parent or guardian.
(7) The aggregate retail value of all prizes awarded by a licensee in a single raffle shall not exceed $50,000.
(8) The maximum retail value of each prize awarded by a licensee in a single raffle shall not exceed $50,000.
(9) The maximum price which may be charged for each raffle chance sold, offered for sale, conveyed, issued, or otherwise transferred for value shall not exceed $150.
(10) The maximum number of days during which chances may be sold, offered for sale, conveyed, issued, or otherwise transferred for value shall not exceed one year.
(11) The sale of raffle chances is only authorized within the borders of the village.
(I) Raffles manager; fidelity bond. All operation of and the conduct of raffles shall be under the supervision of a single manager designated by the organization. The manager shall give a fidelity bond in an amount determined by the village equal to the amount to the aggregate retail value of all prizes to be awarded in favor of the organization conditioned upon his honesty in the performance of his or her duties. Terms of the bond shall provide that notice shall be given in writing to the village not less than 30 days prior to its cancellation. The Board of Trustees of the village may waive this bond requirement by including a waiver provision in the license issued to an organization under this section, provided that a license containing such waiver provision shall be granted only by unanimous vote of the members of the licensed organization.
(J) Records to be kept.
(1) Each licensee shall keep records of its gross receipts, expenses and net proceeds for each single gathering or occasion at which winning chances in a raffle 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.
(2) Gross receipts from the operation of raffles shall be segregated from other revenues of the licensee, including bingo gross receipts, if bingo games are also conducted by the same nonprofit organization pursuant to license therefor issued by the Department of Revenue of the State of Illinois, and placed in a separate account. Each licensee 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 licensee.
(3) Each licensee shall report promptly after the conclusion of each raffle to its membership. Each licensee shall report promptly to the village its gross receipts, expenses and net proceeds from the raffle, and the distribution of net proceeds itemized as required herein. Each licensee shall file its records and report with the Village Clerk within 60 days following the conclusion of the raffle.
(4) 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.
(Ord. 3143, passed 4-16-18) Penalty, see § 135.99