All raffles licensed under the provisions of this subchapter shall comply with the following.
(A) If all or a portion of the prize is cash, the maximum amount of cash award in a single raffle shall not exceed $20,000.
(B) The maximum price which may be charged for each raffle chance issued or sold shall not exceed $150.
(C) The maximum number of days during which chances may be issued or sold shall not exceed 180 days.
(D) The entire net proceeds of any raffle must be exclusively devoted to the lawful purposes of the organization permitted to conduct the raffle.
(E) No person, except the bona fide member, director, officer, employee, or member of the sponsoring organization, may manage or participate in the management of the raffle.
(F) No person may receive any remuneration or profit for managing or participating in the management of the raffle.
(G) 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 receipts or profits from the raffle.
(H) Winning chances must be determined only at the location or locations within the city specified on the license.
(I) No 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 or her parent or guardian.
(J) The management, operation, and conduct of raffles shall be under the supervision of one raffles manager designated by the organization. The manager shall give a fidelity bond in the sum of not less than an amount equal to a 200% of the aggregate retail value of all prizes in favor of the organization conditioned upon his or her honesty in the performance of his or her duties. The bond shall provide that notice shall be given in writing to the city not less than 30 days prior to its cancellation. The City Council may waive this bond requirement by including a waiver provision in the license issued to an organization under this subchapter, provided that a license containing such waiver provision will 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.
(K) Each organization licensed hereunder 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. Gross receipts from the operation of raffles shall be segregated from other revenues of the organization of every kind and nature and placed in a separate account. Each organization shall have separate records of its raffles and the person who accounts for gross receipts, expenses and net proceeds from 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.
(L) Each organization licensed to conduct raffles under the terms of this subchapter shall report promptly after the conclusion of each raffle to its membership, or if the organization does not have members, to its governing board, and to the city its gross receipts, expenses and net proceeds from raffles and the distribution of net proceeds, itemized as required in this subchapter.
(M) All records required by the subchapter shall be preserved for three years and shall be open for public inspection at reasonable times and places.
(N) 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 of a raffle and may pay reasonable compensation for such services. Such services include the following: (a) advertising, marketing and promotion; (b) legal; (c) procurement of goods, prizes, wares and merchandise for the purpose of operating the raffle; (d) rent, if the premises upon which the raffle will be held is rented; (e) accounting, auditing and bookkeeping; (f) website hosting; (g) mailing and delivery; (h) banking and payment processing; and (i) other services relating to the operation of the raffle.
(Prior Code, § 23-185) (Ord. 2020-008, passed 1-21-2020) Penalty, see § 110.999