[Ord. No. 19-63, 10-3-2019]
As used in this Chapter, the following terms shall have the meanings indicated:
A fraternal beneficiary society, order, or association must meet the following requirements:
It must have a fraternal purpose. An organization has a fraternal purpose if membership is based on a common tie or the pursuit of a common object.
The organization must also have a substantial program of fraternal activities.
It must operate under the lodge system or for the exclusive benefit of the members of a fraternal organization itself operating under the lodge system. Operating under the lodge system requires, at a minimum, two active entities:
It must provide for the payment of life, sick, accident, or other benefits to the members of such society, order, or association or their dependents.
An organization that provides benefits to some, but not all, of its members may qualify if most of the members are eligible for benefits, and criteria for excluding certain members are reasonable.
Any gambling game in which the player's expected return is not favorably increased by his or her reason, foresight, dexterity, sagacity, design, information or strategy;
Any gambling game in which there is an opportunity for the player to use his or her reason, foresight, dexterity, sagacity, design, information or strategy to favorably increase the player's expected return; including, but not limited to, the gambling games known as "poker," "blackjack" (twenty-one), "craps," "Caribbean stud," "pai gow poker," "Texas hold 'em," "double down stud" and any video representation of such games;
An organization with the main function of social contact between members and is not related to making money. Generally, these clubs are exempt from Federal income taxes. Social clubs must meet the following requirements:
The club must be organized for not-for-profit purposes.
The club must provide an opportunity for personal contact among members, and membership must be limited.
The club must be supported by membership fees, dues, and assessments.
The organization's net earnings may not inure to the benefit of any person having a personal and private interest in its activities.
If the club exceeds the Federal Internal Revenue Service's safe harbor guidelines for non-member and investment income, the facts and circumstances must show that it is organized substantially for not-for-profit purposes.
The club may receive de minimis income from non-traditional sources.
The club's governing instrument may not contain a provision that provides for discrimination against any person on the basis of race, color, or religion.