[HISTORY: Adopted by the City Council of
the City of Lexington 6-2-1982 by Ord. No. 1982-3 (Ch. 8 of the 1998
Code). Amendments noted where applicable.]
This chapter shall be effective in all of the
area within the corporate limits of the City of Lexington.
For the purposes of this chapter, the terms
defined in this section have the meanings given them.
A voluntary organization composed of individuals and businesses
who have joined together to advance the commercial, financial, industrial
and civic interests of a community.[1]
An organization 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.
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 the scope and intensity with the course of study presented in tax-supported
schools.
An organization of persons having a common interest, the
primary interest of which is to both promote the welfare of its members
and provide assistance to the general public in such a way as to lessen
the burdens of government by caring for those who otherwise would
be cared for by the government.
An organization composed of workers organized with the objective
of betterment of the conditions of those engaged in such, pursuant
to the development of a higher degree of efficiency in their respective
occupations.
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.
An organization or institution organized and conducted on
a not-for-profit basis with no personal profit incurring to anyone
as a result of the operation.
A form of lottery, as defined in Section 28-2(b) of the Criminal
Code of 1961,[2] conducted by an organization licensed under this chapter,
in which:
The player pays or agrees to pay something of
value for a chance, presented 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.
The winning chance is to be determined through
a drawing or by 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.
Any church, congregation, society, or organization founded
for the purpose of religious worship.
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.
A.
It shall be unlawful to sell or offer for sale, in
the City of Lexington, any raffle chance without first obtaining a
license to operate a raffle or in violation of the terms of said license.
B.
Application for said license shall be made in writing
by the applicant and filed with the City Clerk. Such application shall
be accompanied by the appropriate filing fee, if any, as required
herein. Such fee shall be by cash, check, or money order. The City
Clerk shall refer the application to the Mayor for review.
C.
The Mayor shall review all applications for Class
A licenses and shall, if such application is in compliance with the
provisions of this chapter, issue said license. Class A applications
shall be acted upon within 15 days from the date of filing such application.
D.
The City Council shall review all applications for
Class B licenses, and, if such application is in compliance with the
provisions of this chapter, shall issue said license. The City Council
shall act upon a license application within 30 days from the date
of application.[1]
E.
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 license and which have had during
that entire five-year period a bona fide membership engaged in carrying
out their objects, or to a nonprofit 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 hardship as the result
of an illness, disability, accident or disaster.
[Amended 9-9-1991 by Ord. No. 1991-5]
F.
Licenses issued are subject to the following restrictions:
(2)
The license and application for license must specify
the area or areas within the jurisdiction of this chapter in which
raffle chances will be sold or issued, the time period during which
raffle chances will be sold or issued, the time of determination of
winning chances and the location or locations at which winning chances
will be determined.
(3)
A license application must contain a sworn statement
attesting to the not-for-profit character of the prospective licensee
organization, signed by the presiding officer and the secretary of
that organization.
(4)
Licenses issued pursuant to this chapter shall be
valid for one raffle.
(5)
The maximum number of days during which raffle chances
may be issued or sold for any one raffle shall be 180 days.
A.
Raffle
licenses shall be classified as follows:
(1)
A Class A license shall authorize the operation of
a raffle where the aggregate retail value of all prizes or merchandise
awarded by a licensee in a single raffle does not exceed $1,000, where
the maximum retail value of each prize awarded by a licensee in a
single raffle does not exceed $1,000, and where the maximum price
charged for each raffle chance issued or sold does not exceed $5.
(2)
A Class B license shall authorize the operation of
a raffle where either the prize values or the price per chance exceeds
the maximums set forth for a Class A license, and where the aggregate
retail value of all prizes or merchandise awarded by a licensee in
a single raffle does not exceed $20,000, where the maximum retail
value of each prize awarded by a licensee in a single raffle does
not exceed $20,000 and where the maximum price which may be charged
for each raffle chance issued or sold does not exceed $100.
B.
No raffle shall be conducted and no license for such
raffle shall be issued within the territory under the jurisdiction
of this chapter where the prize values or the price per chance exceeds
the maximums set herein for a Class B license.
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 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
participating in the management or operation of the raffle.
D.
A licensee may rent a premises on which to determine
the winning chances in a raffle only from an organization which is
also licensed under this chapter.
E.
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.
A.
All operation of and the conduct of raffles shall
be under the supervision of a single raffle manager designated by
the licensed organization. The manager shall give a fidelity bond
in a sum equal to the aggregate retail value of all prizes or merchandise
to be awarded in the raffle, with two sureties thereon who are residents
of Lexington, Illinois, with a solvent surety company licensed to
do business in the State of Illinois, in favor of the sponsoring licensee,
conditioned upon his honesty and performance of his duties. Terms
of the bond shall provide that notice shall be given in writing to
the City Council not less than 30 days prior to its cancellation.
The issuing authority shall consider the bond and shall have the right
to disapprove the bond.
B.
Said bond shall be conditioned upon the faithful observance
by the licensee of this chapter and provisions of all laws of the
State of Illinois and the United States of America applying to raffles.
C.
Waiver of bond requirement.
(1)
The
issuing authority may, in its discretion, waive this bond requirement,
subject to the following conditions:
(a)
Upon the unanimous vote of the members of the
licensed organization that said requirement may be waived.
(b)
A written waiver is filed with the application
for the license.
(c)
The license application must contain a sworn
statement attesting to the unanimous vote of the members of the licensed
organization, signed by the presiding officer and the secretary of
said organization.
(2)
A license issued to the organization shall include
a provision that the fidelity bond has been waived.
A.
Each organization licensed to conduct raffles shall
keep records of its gross receipts, expenses and net proceeds for
each single gathering or occasion at which winning games 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.[1]
B.
Gross receipts from the operation of raffle 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 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 promptly after the conclusion of each raffle to its membership,
and to the City Clerk, its gross receipts, expenses and net proceeds
from raffles, and the distribution of net proceeds itemized as required
in this section.
D.
Records required by this chapter shall be preserved
for three years, and the organization shall make its records relating
to operations of raffles available for public inspection at reasonable
times and places.
A.
The City Council, by a majority vote at a convened
meeting, may issue, revoke or suspend any license in accordance with
the provisions of this chapter or on the basis of provisions of any
State of Illinois law pertaining to raffles.
B.
In case of a tie vote of the members of the City Council
at a convened meeting, the Mayor shall vote to break the tie.
C.
Licenses issued pursuant to this chapter may be suspended
or revoked for any violation of this chapter.
D.
When any licensee shall have its license revoked for
any cause, no license shall be granted to said licensee for a period
of one year thereafter.
Any person or organization violating any provision
of this chapter shall be fined in an amount not to exceed $750, and
a separate offense shall be deemed committed each day during or on
which the violation occurs or continues.
Nothing in this chapter shall be construed to
authorize the conducting or operating of any gambling scheme, enterprise,
activity or device other than raffles as provided for herein.
