ORDINANCE NO. 2022 - 05
AN ORDINANCE AMENDING TITLE 3 BUSINESS AND LICENSE REGULATIONS TO ADD CHAPTER 5 “CHARITABLE RAFFLES”
 
ADOPTED BY THE VILLAGE BOARD OF THE
VILLAGE OF WATERMAN THIS 14th DAY OF JUNE 2022
 
Published in pamphlet form by authority of the Village Board of the Village of Waterman, DeKalb County, Illinois, this 14th day of June 2022 A.D.
 
ORDINANCE NO. 2022 - 05
 
AN ORDINANCE AMENDING TITLE 3 BUSINESS AND LICENSE REGULATIONS TO ADD CHAPTER 5 “CHARITABLE RAFFLES”
 
NOW THEREFORE, BE IT ORDAINED by the President and the Board of Trustees of the Village of Waterman, DeKalb County, Illinois as follows:
 
SHORT TITLE  
 
This chapter shall be known and may be cited as the “Charitable Raffles Ordinance.”
 
3-5-2  DEFINITIONS 
 
The following definitions shall apply unless the context clearly indicates or requires a different meaning.
 
Chamber shall mean 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 shall mean 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.
 
Charitable raffle license shall mean a license to conduct a raffle issued pursuant to this article.
 
Educational shall mean 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 shall mean 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 shall mean an organization composed of workers organized with the objective of betterment of the conditions of a higher degree of efficiency in their respective occupations.
 
Net proceeds shall mean the gross receipts from the conduct of raffles, less reasonable sums expended for prizes, license fees, and other reasonable operating expenses incurred as a result of operating a raffle.
 
Non-profit shall mean 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 shall mean a procedure whereby one or more prizes are distributed by chance among persons who have paid or promised consideration for a chance to win such prizes in which:
 
The persons pay or agree 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
 
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 connect with the raffle, except that the winning chance shall not be determined by the outcome of a publicly exhibited sporting contest.
 
Religious shall mean any church, congregation, society, or organization founded for the purposes of religious worship.
 
Veterans shall mean an organization or association comprised of members of which substantially all are individuals who are veterans of military service, 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.
 
3-5-3 CHARITABLE RAFFLE LICENSE REQUIRED.
 
No person, firm, corporation, or other entity shall conduct a raffle without having first obtained a charitable raffle license therefore pursuant to this chapter. A raffle shall be deemed to occur in the village if the determination of one or more winners thereof is made or announced within the corporate limits in the village.
 
3-5-6 LICENSE CLASSES.
 
Charitable raffle licenses shall come in one of the following classes:
 
A class 1 license shall authorize the conducting of multiple raffles by a single applicant during a specified calendar year. The aggregate retail value of all prizes awarded as part of a single raffle shall not exceed five thousand dollars ($5,000.00). The aggregate retail value of all prizes awarded during the calendar year shall not exceed fifty thousand dollars ($50,000.00). In addition, the maximum retail value of any single prize shall not exceed two thousand five hundred dollars ($2,500.00). The annual license fee shall be ten dollars ($10.00). A class 1 license shall authorize the sale or purchase of chances in person and on-line. Winners shall be determined via manual selection.
 
A class 2 license shall authorize the conducting of a single raffle. Chances for the raffle may be sold after the issuance of the license and up to three hundred sixty-four (364) days thereafter but all prizes must be awarded on the same day as part of a single determination. The aggregate retail value of all prizes awarded shall not exceed fifty thousand dollars ($50,000.00). The annual license fee shall be ten dollars ($10.00). A class 2 license shall authorize the sale or purchase of chances in person and on-line. Winners shall be determined via manual selection.
 
A class 3 license shall authorize the conducting of a single raffle. Chances for the raffle may be sold after the issuance of the license and up to three hundred sixty-four (364) days thereafter but all prizes must be awarded on the same day as part of a single determination. The maximum price of a raffle chance shall not exceed one thousand dollars ($1,000.00). The aggregate retail value of all prizes awarded shall not exceed two hundred fifty thousand dollars ($250,000.00). The annual license fee shall be one-half of one (0.5) percent of the aggregate retail value of the prizes to be awarded. A class 3 license shall authorize the sale or purchase of chances in person and on-line. Winners shall be determined via manual selection.
 
A class 4 license shall authorize the conducting of a single raffle. Chances for the raffle may be sold after the issuance of the license and up to three hundred sixty-four (364) days thereafter but all prizes must be awarded on the same day as part of a single determination.
 
The aggregate retail value of all prizes awarded shall not exceed five hundred thousand dollars ($500,000.00). The annual license fee shall be one (1) percent of the aggregate retail value of the prizes to be awarded. A class 4 license shall authorize the sale and purchase of chances on-line and the manual or electronic determination of winners.
 
 
LICENSE APPLICATION.
 
All applications for a charitable raffle license shall be submitted to the Village Clerk prior to the holding of the raffle. The application shall be on a form prepared and furnished by the Clerk. The application must contain at least the following information:
 
The name, address, telephone number and email address of the applicant, the raffles manager and the operator of the raffle, if different;
 
A sworn statement signed by the presiding officer and secretary of the applicant attesting to the not-for-profit character of the applicant;
 
A statement describing the purpose of the raffle;
 
The areas within the village in which raffle chances will be sold or issued;
 
The time period during which raffle chances will be sold or issued;
 
The date, time and location of the determination of the winning chances;
 
The aggregate retail value of all prizes to be awarded by a single raffle;
 
The maximum retail value of each prize to be awarded in a single raffle;
 
The maximum to be charged for each raffle chance;
 
The maximum number of chances to be issued;
 
The class of license applied for;
 
If chances are to be sold on-line, the name, address, telephone number, and email address of the organization in possession of the computer servers providing hosting services for the raffle and the URL of all websites at which the raffle chances may be purchased. If chances are sold in-person, the specific locations(s) where chances will be sold/issued;
 
Identification/contact information of the manager who will run the raffle and identification/contact information of the record keeper.
 
Sworn statement from the application that it will (i) abide by the Illinois Raffles and Poker Runs Act; (ii) that each officer, director, employee would not be ineligible for the license; (iii) that the application is a charitable organization and (iv) attesting to the truth of the entire application.
 
The Board of Trustees shall approve or deny a charitable raffle license within thirty (30) business days of the submittal of a proper application. The Board of Trustees may, in its sole discretion, reject any application for a license if it determines that the rules and regulations of the proposed raffle do not provide sufficient opportunities to win or do not provide for an acceptable pay-out of the net proceeds received for the raffle.
 
ELIGIBILITY FOR LICENSE.
 
A charitable raffle license may only be issued to a bona fide chamber, charitable, educational, fraternal, labor, religious or veterans’ organization, or to a political committee as defined in the Raffles and Poker Runs Act (230 ILCS 15/1 et seq.), as amended.
 
In addition, a qualifying organization must have operated without profit to their members and have been in existence continuously for a period of five (5) years immediately before making application for a license and must have had during that entire five-year period a bona fide membership engaged in carrying out their objectives, or to a non-profit fund raising 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 hardships as the result of an illness, disability, accident or disaster.
 
The Village may waive the requirement that the charitable organization must have been in existence continuously for a period of five years before making application for a bona fide religious, charitable, labor, business, fraternal, educational, or veterans' organization that applies for a license to conduct a raffle if the village's corporate authorities determine that the organization is a local organization that is affiliated with and chartered by a national or state organization that meets the five-year requirement.
 
INELIGIBILITY FOR LICENSE.
 
A charitable raffle license may not be issued to any of the following:
 
Any person who has been convicted of a felony;
 
Any person who is or has been a professional gambler or gambling promoter;
 
Any person who is not of good moral character;
 
Any firm or corporation in which a person defined in subsections (a), (b), or (c) has a proprietary, equitable or credit interests, or in which such a person is active or employed;
 
Any organization in which a person defined in subsections (a), (b), or (c) is an officer, director or employee, whether compensated or not;
 
Any organization in which a person defined in subsections (a), (b), or (c) is to participate in the management or operation of a raffle.
 
CONDUCT OF RAFFLES.
 
All raffles shall be conducted in strict compliance with applicable laws and ordinances. In addition, all raffles shall be subject to the following requirements:
 
The entire net proceeds of the raffle must be exclusively devoted to the lawful purposes of the licensee.
 
No person except a bona fide member of the licensee may participate in the management or operation of the raffle.
 
No person may receive any remuneration or profit for participating in the management or operation of the raffle.
 
Winning chances may only be determined only at those locations specified on the license.
 
Raffle chances may be sold or issued only within the area specified on the license.
 
No person under eighteen (18) years of age may participate in the conducting of raffles, or chances, unless such person has the approval of a parent or legal guardian.
 
RECORDS.
 
Each organization licensed to conduct raffles shall keep records of its gross receipts, expenses and net proceeds for each raffle. All deductions from gross receipts for each raffle 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 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 license therefore issued by the state department of revenue, and shall be 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.
 
Each organization licensed to conduct raffles shall report promptly after the conclusion of each raffle to its membership, and to the Board of Trustees, its gross receipts, expenses, and net proceeds itemized as required in this section.
 
Records required by this section shall be preserved three (3) years, and organizations shall make available their records relating to operation of raffles for inspection by the Board of Trustees at reasonable times and places.
 
   MANAGER’S BOND.
 
All raffles shall be conducted under the supervision of a raffles manager designated by the licensee. The raffles manager must be a bona fide member of the licensee and may not receive any remuneration or profit for participating in the management or operation of the raffle. The raffles manager shall give a fidelity bond in amount of twice the aggregate retail value of the prizes to be awarded in the raffle conditioned upon his or her honesty in the performance of his/her duties. Upon the request of a license applicant, the Board of Trustees may waive this bond requirement for qualifying organizations having a principal or substantial place of business in the village or in any county in which the village has territory.
 
  LICENSE SUSPENSION OR REVOCATION.
 
A charitable raffle license may be suspended or revoked by the Board of Trustees after notice and hearing for failure to meet the requirements of this chapter.
 
In addition, the Board of Trustees may revoke or suspend a charitable raffle license after notice and hearing if at any time it appears that the proposed or actual operation of the raffle will be or is such as to constitute a public nuisance or the endanger the public health, safety or welfare.
 
A charitable raffle license may only be suspended or revoked after providing notice to the licensee and a reasonable opportunity to be heard. A notice of intent to revoke or suspend shall state the basis for the contemplated action and shall be given to the licensee at least seven (7) calendar days prior to a license hearing to be held by the Village President and the Board of Trustees. Notice shall be delivered in person or by first class mail addressed to the location specified in the license application.
 
   ENFORCEMENT.
 
It shall be unlawful for any person to knowingly conduct a raffle in violation of this article. Violations shall be subject to the penalties set forth in Section 1-4-1.
 
SECTION 2 : REPEALER
 
All Ordinances or parts of Ordinances in conflict with any of the provisions of this Ordinance shall be, and the same are hereby repealed.
 
SECTION 3 :  SEVERABILITY  
 
This Ordinance and every provision thereof, shall be considered severable. If any court of competent jurisdiction may find and declare any word, phrase, clause, sentence, paragraph, provision or section or part of a phrase, clause, sentence, paragraph, provision or section of this Ordinance is void or unconstitutional, the remaining words, phrases, clauses, sentences, paragraphs and provisions and parts of phrases, clauses, sentences, paragraphs, provisions and sections not ruled void or unconstitutional shall continue in full force and effect.
 
ADOPTED this 14 th day of June 2022, pursuant to roll call vote as follows:
 
AYES:______________
 
NAYES:_____________
 
ABSTAIN:__________
 
Approved this 14th day of June 2022 A.D.
 
___________________________
Peter Robinson, Village President
 
ATTEST:
 
____________________________
Abigail Pool, Village Clerk
 
CERTIFICATE
 
STATE OF ILLINOIS   )
) SS. COUNTY OF DEKALB   )
 
I, Abigail Pool, certify that I am the duly appointed and acting municipal clerk of the Village of Waterman, DeKalb County, Illinois.
I further certify that on June _____, 2022, the Corporate Authorities of such municipality passed and approved Ordinance No. 2022 - 05, AMENDING TITLE 3 BUSINESS AND LICENSE REGULATIONS TO ADD CHAPTER 5 “CHARITABLE RAFFLES”,” which provided by its terms that it should be published in pamphlet form.
The pamphlet form of Ordinance No. 2022 - 05 including the Ordinance and a cover sheet thereof prepared, and a copy of such Ordinance was posted in the Village Hall, commencing on June _____, 2022, and continuing for at least ten days thereafter. Copies of such Ordinance were also available for public inspection upon request in the office of the municipal clerk.
Dated at Waterman, Illinois, this _____ day of June 2022.
 
(SEAL)
 
Abigail Pool, Village Clerk