[Added 4-20-1982]
[Amended 2-19-2019[1]]
This article shall be effective in all of the areas of McLean County outside the corporate limits of any city, town, or village and also within the corporate limits of any city, town, or village in McLean County where there is in effect a written contract between the governing body of said city, town or village and the County Board of McLean County for joining in the licensing of organizations to operate raffles and poker runs.
[1]
Editor's Note: This ordinance also changed the title of Art. IV from "Raffles" to "Raffles and Poker Runs."
[Amended 10-16-1984; 10-18-1994; 7-26-2005; 2-19-2019]
A. 
The Chairman of the McLean County Board shall be the Raffle and Poker Run Licensing Commissioner and shall head the Raffle and Poker Run Licensing Commission appointed in accordance with the terms of this article.
B. 
The Raffle and Poker Run Licensing Commission shall consist of the members of the Finance Committee of the McLean County Board.
A. 
It shall be unlawful to sell, offer for sale, or operate in the territory of McLean County under the jurisdiction of this article, any raffle chance, poker hand, or poker run participation voucher without first obtaining a license to operate a raffle or poker run, or in violation of the terms of said license.
[Amended 2-19-2019]
B. 
Application for said license shall be made in writing by the applicant and filed with the McLean County Board office. Such application shall be accompanied by the appropriate filing fee, if any, as required herein. Such fee shall be paid by cash, check, or money order. The County Board office shall refer the application as required herein and shall remit the fee to the McLean County Treasurer if the license is issued.
[Amended 2-19-2019]
C. 
Review of license applications.
[Amended 10-18-1994; 12-20-1994; 1-16-1996; 2-19-2019]
(1) 
The Raffle and Poker Run Licensing Commissioner or his designee shall review all applications for Class A and Class B licenses and shall, if such applications are in compliance with the provisions of this article, issue said licenses. Class A and Class B applications shall be acted upon within 30 days from the date of filing such application.
(2) 
The Raffle and Poker Run Licensing Commission shall review all applications for Class C licenses and, if such applications are in compliance with the provisions of this article, shall issue said licenses. The Commission shall act upon a license application within 30 days from the date of application.
(3) 
Class D licenses.
(a) 
The Raffle and Poker Run Licensing Commission shall review all applications for Class D licenses and shall, if such applications are in compliance with the provisions of this article, recommend to the County Board that the license be issued. The Commission shall review applications for Class D licenses within 30 days from the date of application.
(b) 
The McLean County Board shall review all applications for Class D licenses after said applications have first been reviewed and recommended by the Raffle and Poker Run Licensing Commission. If such applications are in compliance with the provisions of this article, the Board shall issue said licenses within 60 days from the date of application.
(4) 
Poker run licenses.
(a) 
The Raffle and Poker Run Licensing Commissioner shall review all applications for poker run licenses and shall, if such applications are in compliance with the provisions of this article, issue said licenses. Applications shall be acted upon within 30 days from the date of filing such application.
(b) 
Licenses for poker runs shall be issued for the following purposes:
[1] 
Providing financial assistance to an identified individual or group or individuals suffering extreme financial hardship as the result of an illness, disability accident, or disaster; or
[2] 
To maintain the financial stability of the organization.
(c) 
Poker runs shall be licensed by the County with jurisdiction over the key location. The license granted by the key location shall cover the entire poker run, including locations other than the key location. Each license issued shall include the name and address of each predetermined location.
D. 
Licenses shall be issued only to bona fide religious, charitable, labor, fraternal, educational, business or veterans organizations that operate without profit to the 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 years a bona fide membership engaged in carrying out their objects, or to a nonprofit fund-raising organization that the County determines to be 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 10-18-1994]
E. 
Licenses issued are subject to the following restrictions:
[Amended 10-15-1991; 10-18-1994; 2-17-2015; 2-19-2019]
(1) 
No person, firm or corporation shall conduct raffles, chances, or poker runs without have first obtained a license therefor pursuant to this article.
(2) 
The license and application for license must specify the area or areas within the jurisdiction of this article in which raffle chances, participation vouchers, or poker hands will be sold or issued, the time period during which raffle chances, participation vouchers, or poker hands will be sold or issued, the time 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 the organization.
(4) 
Raffle licenses issued pursuant to this article shall be valid for one raffle, or a specified number of raffles to be conducted during a specified period of time not to exceed one year.
(5) 
The maximum time period during which raffle chances, participation vouchers, or poker hands may be issued or sold for any one raffle or poker run shall be one year.
F. 
The following are ineligible for any license under this article:
[Amended 2-19-2019]
(1) 
Any person who has been convicted of a felony.
(2) 
Any person who is or has been a professional gambler or gambling promoter.
(3) 
Any person who is not of good moral character.
(4) 
Any firm or corporation in which a person defined in Subsection F(1), (2) or (3) has a proprietary, equitable or credit interest, or in which such a person is active or employed.
(5) 
Any organization in which a person defined in Subsection F(1), (2) or (3) is an officer, director, or employee, whether compensated or not.
(6) 
Any organization in which a person defined in Subsection F(1), (2) or (3) is to participate in the management or operation of a raffle or poker run as defined in this article.
A. 
License classifications.
(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.
(3) 
A Class C 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 B license, and where the aggregate retail value of all prizes or merchandise awarded by a licensee in a single raffle does not exceed $200,000, where the maximum retail value of each prize awarded by a licensee in a single raffle does not exceed $200,000 and where the maximum price which may be charged for each raffle chance issued or sold does not exceed $300.
[Added 10-18-1994; 2-16-1999]
(4) 
A Class D license shall authorize the operation of a raffle where the aggregate value of the prizes awarded does not exceed $500,000, a fee simple interest in real estate is offered as a first prize or a cash prize in an amount equal to at least 50% of the value of the fee simple interest in real estate is offered as an alternative first prize, and the maximum price charged for each chance issued or sold does not exceed $300. A Class D license may be issued only upon the submission of an application as provided in § 257-29 and, in addition thereto, submission of the following:
[Amended 12-20-1994; 11-21-2017]
(a) 
A copy of a ruling or determination letter issued to, or for the benefit of, the applicant by the United States Internal Revenue Service providing that the applicant meets the requirements of Section 101(6) of the Internal Revenue Code of 1939, or of Section 501(c)(3) of the Internal Revenue Code of 1954, as amended; and
(b) 
A narrative statement describing the purpose of the proposed raffle and, in figures and numbers, the estimated gross proceeds of the sale of raffle chances, the administrative cost of the raffle, and the intended use of the net proceeds derived from the proposed raffle; and
(c) 
A written agreement signed by an authorized officer of the applicant holding the County of McLean, its Board members, officers, employees and attorneys harmless from any claim or cause of action (whether state or federal) for injury or damages arising out of, or in any way related to, the subject raffle or to any property (real and/or personal) conveyed by the applicant pursuant to the subject raffle; and
(d) 
An affidavit signed by the owner of said real estate which verifies that on the date of application the fair market value of said real estate to be raffled does not exceed $500,000 and that the applicant has full authority to make said real estate the subject of the raffle. The affidavit shall also be notarized.
(5) 
A Class A poker run license shall authorize the operation of a poker run where the aggregate retail value of all prizes or merchandise awarded by a licensee in a single poker run does not exceed $1,000 and where the maximum price charged for each participation voucher or poker hand issued or sold does not exceed $5.
[Added 2-19-2019]
(6) 
A Class B poker run license shall authorize the operation of a poker run where the aggregate retail value of all prizes or merchandise awarded by a licensee in a single poker run does not exceed $20,000 and where the maximum price charged for each participation voucher or poker hand issued or sold does not exceed $100.
[Added 2-19-2019]
B. 
Fees. Filing fees for Class A, B, C and D raffle licenses and Class A and B poker run licenses shall be as set forth in Chapter 205, Fees.
[Amended 4-18-1989; 10-18-1994; 12-20-1994; 2-16-1999; 2-17-2015; 2-19-2019]
C. 
No raffle shall be conducted and no license for such raffle shall be issued within the territory under the jurisdiction of this article where the prize values or the price per chance exceeds the maximums set herein for a Class D license.
[Added 12-20-1994]
D. 
No poker run shall be conducted and no license for such poker run shall be issued within the territory under the jurisdiction of this article where the prize values or the price per chance exceeds the maximum set herein for a Class B poker run license.
[Added 2-19-2019[1]]
[1]
Editor's Note: This ordinance also redesignated former Subsection D as Subsection E.
E. 
All fees shall be payable at the time the application is filed, and in the event that the application for a license is denied, the fee shall be returned to the applicant by the County Board office. checks or money orders are to be made out to the McLean County Treasurer.
[Amended 10-18-1994; 12-20-1994]
[Amended 2-17-2015; 2-19-2019]
The conducting of raffles and poker runs is subject to the following restrictions:
A. 
The entire net proceeds of any raffle or poker run 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 or poker run.
C. 
No person may receive any remuneration or profit for participating in the management or operation of the raffle or poker run.
D. 
A licensee may rent a premises on which to determine the winning chances in a raffle or poker run only from an organization which is also licensed under this article.
E. 
Raffle chances, poker hands, and participation vouchers 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.
F. 
A person under the age of 18 years may participate in the conducting of raffles, chances, or poker runs 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 are being determined only when accompanied by a parent or guardian.
[Amended 10-18-1994; 12-20-1994; 2-19-2019]
All operation of and the conduct of raffles and poker runs shall be under the supervision of a single raffle or poker run manager designated by the licensed organization.
A. 
Bond requirements.
(1) 
In the case of Class A and B raffles, 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 the State of Illinois, and who are acceptable to the issuing authority, or 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 Commission 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.
(2) 
In the case of Class C and D raffles, the manager shall give a fidelity bond in a sum equal to the aggregate retail value of all prizes and merchandise to be awarded in the raffle with a solvent surety bond 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 be given in writing to the Commission 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.
(3) 
In the case of poker runs, 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 the State of Illinois, and who are acceptable to the issuing authority, or 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 Commission 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.
(4) 
Fidelity bonds shall be conditioned upon the faithful observance by the licensee of this article upon the provisions of all laws of the State of Illinois and the United States of America applying to raffles.
B. 
Waiver of bond requirement.
(1) 
The issuing authority may, in its discretion, waive this bond requirement for Class A raffles only subject to the following conditions:
(a) 
Upon the unanimous vote to the members of the licensed organization that said requirements may be waived.
(b) 
A written waiver is filed with the application for the licensee.
(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.
[Amended 10-18-1994; 2-17-2015; 2-19-2019]
A. 
Each organization licensed to conduct raffles, chances, or poker runs 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, 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.
B. 
Gross receipts from the operation of raffle programs and poker runs 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 and poker runs. The person who accounts for gross receipts, expenses and net proceeds from the operation of raffles and poker runs shall not be the same person who accounts for other revenues of the organization.
C. 
Each organization licensed to conduct raffles or poker runs shall report promptly after the conclusion of each occurrence to its membership, and to the County, its gross receipts, expenses and net proceeds from raffles or poker runs, and the distribution of net proceeds itemized as required in this section.
D. 
Records required by this article shall be preserved for three years, and the organization shall make available its records relating to operations of raffles and poker runs for public inspection at reasonable times and places.
A. 
The Raffle and Poker Run Licensing Commission, by a majority vote at a convened meeting, may issue, revoke or suspend any license in accordance with the provisions of this article or on the basis of provisions of any State of Illinois law pertaining to raffles or poker runs.
[Amended 2-19-2019]
B. 
In case of a tie vote of the members of the Commission at a convened meeting, the Raffle and Poker Run Licensing Commissioner shall vote to break the tie.
[Amended 2-19-2019]
C. 
Licenses issued pursuant to this article may be suspended or revoked for any violation of this article.
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.
[Amended 10-18-1994]
Any person or organization violating any provision of this article shall be guilty of a Class C misdemeanor, and a separate offense shall be deemed committed each day during or on which the violation occurs or continues.
[Amended 2-19-2019]
Nothing in this article shall be constructed to authorize the conducting or operating of any gambling scheme, enterprise, activity or device other than raffles and poker runs as provided for herein.