All raffles conducted pursuant to this chapter shall be subject to the following restrictions:
A. Net Proceeds: The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the organization licensed hereunder to conduct that game; and
B. Members Only: No person except a bona fide member of the sponsoring licensed organization may participate in the management or operation of the raffle; and
C. Nonprofit Nature: No person may receive any remuneration or profit for participating in the management or operation of any raffle; and
D. Rented Premises: 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 pursuant to this chapter; and
E. Location Restrictions: 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
F. Persons Under Eighteen: A person under the age of eighteen (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 eighteen (18) years may be within the area where winning chances are being determined only when accompanied by his parent or guardian; and
G. Manager:
1. All operation of and conduct of raffles shall be under the supervision of a single raffles manager designated by the licensed organization. The manager shall give a fidelity bond:
a. In an amount to be specified by the mayor in the license;
b. In favor of the licensed organization;
c. Conditioned upon his honesty in the performance of his duties;
d. With terms providing that notice shall be given in writing to the mayor not less than thirty (30) days prior to its cancellation; (Ord. 2002-O-36, 5-21-2002)
2. If the members of the licensed organization have voted unanimously to request waiver of the bonding requirement in this subsection, and the mayor and city council decide to waive such requirement in the license, this subsection shall not apply to that license; and (Ord. 2002-O-36, 5-21-2002; amd. 2009 Code)
H. Records:
1. Each licensee hereunder shall keep complete records of its gross receipts, expenses and net proceeds for each single gathering or occasion at which winning chances are determined;
2. All deductions from gross receipts for each single gathering or occasion shall be documented with receipts or other records indicating the net amount, a description of the purchased item or service or other reason for the deduction, and the recipient;
3. The distribution of net proceeds shall be itemized as to payee, purpose, amount and date of payment;
4. Gross receipts from the operation of raffles programs shall be segregated from other revenues of each licensed organization, including bingo gross receipts, if bingo games are also conducted by the same nonprofit organization pursuant to license therefor issued by the state department of revenue, and placed in a separate account;
5. 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 licensed organization; (Ord. 2002-O-36, 5-21-2002)
6. Promptly, after the conclusion of each raffle, each organization licensed hereunder shall report its gross receipts, expenses and net proceeds from raffles and the distribution of net proceeds to its membership and the mayor, itemized as required by this subsection; (Ord. 2002-O-36, 5-21-2002; amd. 2009 Code)
7. Records required by this subsection shall be preserved for five (5) years, and licensed organizations shall make their records relating to operation of raffles available for public inspection at reasonable times and places, and shall immediately forward accurate written copies of the same to the mayor upon request; and
I. Drawings: Any determination of winning chances may only be conducted as specified in the license for the raffle, at the time and place specified, and shall be made publicly known throughout the entire time any chances are sold or distributed, and until all determinations are completed. All such determinations of winning chances shall be open to the public where all persons present may observe the complete procedure utilized to select the winning chances. The mayor shall be permitted to inspect and examine all raffle materials at any time that any winning chance is being determined, even if to do so would delay such determination. (Ord. 2002-O-36, 5-21-2002)