[1-4-2021 by Ord. No.
2021-04]
[Amended 12-6-2021 by Ord. No. 2021-71]
When used in this § 22-12, the following terms shall be defined as follows:
Any item of real value, which may include gift certificates
to be used for or towards the purchase of a retail item. "Bona fide
product" does not include discount coupons, internet access, a telephone
card, a calling card, or a phone card.
A coupon that has a value worth more than the amount inserted
into the electronic product promotion kiosk and is used to offset
the price of a retail item at a store with a physical location or
e-commerce website.
A provider of electronic product promotion kiosks that sells
fills through the fill system and who is responsible for the collection
and remittance of the revenue operation fee to the Village of Elmwood
Park.
Any electronic video machine which is used to promote the
purchase of a bona fide product from a sponsor and offers or awards
a prize, without requiring payment or purchase to participate, as
a means to promote that sponsor and is otherwise consistent with 720
ILCS 5/28-1(b)(13) and not in violation of 720 ILCS 5/28-1(a)(12),
contains a fill system, and is not connected directly or indirectly
to the internet, either by cellular modem, hardwire or wireless connection,
or to a set of interconnected networked devices, including a stand-alone
server that allows one or more terminals to connect, in order to participate
in the game or contest or to receive or retrieve any data related
to the kiosk or device unless the connected device is a redemption
vault.
The internal revenue generation refill system of the electronic
product promotion kiosk which permits the operation of and access
to plays on the software on a fee basis, automatically ceases to operate
upon the completion of a revenue cycle, is solely determined by the
amount of revenue generated by the electronic product promotion kiosk,
and that provides for the auditable determination of the revenue operation
fee. "Fill System" does not include a system other than that based
on the amount of revenue generated, including, without limitation,
a system based on time, number of spins or spin equivalent or other
non-revenue-based system.
The extended play authorizations for the software.
A connection of individual computer terminals, computers,
mobile devices, and computer networks to the internet enabling users
to access internet services such as email and the world wide web.
An individual, entity, partnership or otherwise that provides
electronic product promotion sweepstakes kiosks for use by others.
A stand-alone or connected device to an electronic product
promotion kiosk for the sole purpose of redeeming a prize or award.
The end of a fill of software generated through the fill
system.
The $1,000 fee paid to the Village for each fill generated
through the fill system.
The software that runs the product promotion kiosk that runs
through the fill system.
Any stored-value system capable of being discarded when depleted
or recharged for reuse and utilized to place a telephone call.
It shall be unlawful for any person to distribute or operate
an electronic product promotion sweepstakes kiosk without a license
issued by the Village.
[Amended 12-6-2021 by Ord. No. 2021-71]
The Village shall not issue more than the number of licenses
that are authorized by the Village Board from time to time.
[Amended 12-6-2021 by Ord. No. 2021-71]
(a)
The total number of electronic product promotion sweepstakes kiosks
operated on any premises at one time shall not exceed the number that
is authorized by the Village Board from time to time.
(b)
No electronic product promotion sweepstakes kiosk shall be connected
directly or indirectly to the internet, either by cellular modem,
hardwire or wireless connection, or to a set of interconnected networked
devices in order to participate in the game or contest or to receive
or retrieve any data related to the kiosk or device unless the connected
device is a redemption vault.
(c)
It shall be unlawful for an electronic product promotion sweepstakes
kiosk to offer the sale of anything other than a bona fide product.
(d)
It shall be unlawful to operate an electronic product promotion sweepstakes
kiosk without a self-contained fill system.
(a)
The Village of Elmwood Park is hereby authorized to impose an annual
fee of not more than the then-current fee for an amusement device
for the operation of each electronic product promotion sweepstakes
kiosk, which shall not count as an amusement device for purposes of
determining a public place of amusement license, and collect a revenue
operation fee of $1,000 for each revenue cycle.
(b)
Distributors of lawful electronic production promotion kiosks shall
be responsible for the collection and remittance to the Village of
the revenue operation fee on a monthly basis.
(c)
The Village shall have the right to audit a distributor and/or operator
to ensure that all fills sold through the fill system are accounted
for and subject to the revenue operation fee.
It shall be unlawful for the owner or lessee of any premises
or person in control of such premises to permit the installation or
use of an electronic product promotion sweepstakes kiosk within the
Village for gain or profit unless the authorization emblem and revenue
operation fee has been paid and is evidenced by the authorization
emblem affixed to the electronic product promotion kiosk in a conspicuous
location. Each such device shall be plainly labeled with the name,
address and telephone number of its owner. No person shall remove,
alter or deface the tax emblem or label required by this section or
allow use of an electronic product promotion sweepstakes kiosk if
the tax emblem or label has been removed, altered, defaced or become
illegible. The owner or lessee of the premises where the device is
placed for operation by the public and every person responsible for
the premises shall be jointly and severally liable for a violation
of this section.
(a)
An application for an electronic product promotion sweepstakes kiosk
distributor or operator license shall be made in conformity with the
provisions and the general requirements of this section.
(b)
The application shall be in writing, signed by the applicant if an
individual. If the applicant is a partnership or corporation, the
application shall be signed by a duly authorized agent thereof. If
the applicant is a limited liability company managed by managers,
the application shall be signed by a manager. If the applicant is
a limited liability company managed by its members, the application
shall be signed by a member. The application shall be verified by
oath or affidavit and shall include the following statements and information:
(1)
In the case of an individual: the name, date of birth, residence
address, current telephone number and social security number of the
applicant; in the case of a partnership, limited partnership, corporation,
limited liability company or other legal entity: the date of its organization
or incorporation, the objects for which it was organized or incorporated,
a summary of its activities during the past year, the name, residence
address, date of birth and social security numbers of any person owning
directly or beneficially any percentage of ownership therein; provided,
however, that if the partnership, limited partnership, corporation,
limited liability company or other legal entity is publicly traded
on an exchange within meaning of the Securities Exchange Act of 1934,
the names, residence addresses, social security numbers, dates of
birth and percentage of interest of the three members who own the
highest percentage of interest therein and of any other members who
hold a 5% or greater interest therein, and, where applicable, the
names, residence addresses, dates of birth and social security numbers
of all principal officers and directors; in the case of an entity
that is a manager-managed limited liability company, the names, residence
addresses, dates of birth and social security numbers of all managers
and the name and current telephone number of any authorized agent;
and
(2)
The length of time the applicant has been in a business of that
character or, in the case of a corporation, the date when its charter
was issued; and
(3)
The location of the place of business which is to be operated
under such license; and
(4)
A statement as to whether the applicant is not disqualified
to receive a license by reason of any provision of this chapter or
other provisions of this Code or the laws of the State of Illinois;
and
(5)
A statement as to whether the applicant has ever been convicted
of a felony related to a gambling offense; and
(6)
A statement that the applicant will not violate any of the laws
of the State of Illinois, or of the United States, or any provision
of this Code in the conduct of business.
(c)
Applicants for an electronic product promotion sweepstakes kiosk
distributor or operator license must have a fingerprint-based criminal
history record information background check completed by an Illinois-licensed
live-scan fingerprint vendor.
(d)
Distributor or operator licenses shall either be issued and approved
or denied within 60 days from the time the application is submitted
to the Village. No license shall be issued in the event that the applicant
or any of its owners, partners, shareholders or members have been
convicted of a felony related to gambling.
(a)
If the Village President, Chief of Police, the Finance Director,
the Village Clerk or their duly authorized enforcement officer shall
have a reasonable basis for believing any electronic product promotion
sweepstakes kiosk is an illegal device due to connecting directly
or indirectly to the internet, either by cellular modem, hardwire
or wireless connection, or to a set of interconnected networked devices
for any length of time in order to participate in the contest or game,
or to receive or retrieve any data from the electronic product promotion
sweepstakes kiosk, unless the connect device is a redemption vault,
then said device or any part or contents thereof may be seized by
any duly authorized enforcement official, followed by an administrative
hearing with notice to the owner within seven days of such seizure
for the purpose of reviewing the appropriateness of the seizure. If
criminal charges involving the use or condition of the device are
pending, the device shall be held until disposition of the criminal
charges and until such time as the owner of such device pays any delinquent
tax, reimburses the Village for actual cartage cost incurred in the
seizure, and pays to the Village $20 for each day or part of day said
device has been in storage.
(b)
If it is determined at the hearing by a preponderance of the evidence
that the seized device is not an illegal amusement device, it shall
be returned to the owner without charge. If it is determined at the
hearing that the electronic product promotion kiosk device was used
for illegal gambling because of connecting directly or indirectly
to the internet, either by hardwire or wireless connection, or to
a set of interconnected networked devices in order to participate
in the contest or game or because it failed to sell a bona fide product,
it shall be destroyed by the Village, and all money found within the
device at the time of confiscation shall become the property of the
Village and shall be used to defray the costs of cartage, notice,
storage and hearings. If the owner of the device does not claim the
electronic product promotion kiosk within 14 days after the mailing
of the notice, the device and its contents will be treated as abandoned
property and the device will be destroyed.
(a)
The owner, manager, licensee or person in control of premises where
an electronic product promotion kiosk is used for illegal gambling
because of connecting directly or indirectly to the internet, either
by cellular modem, hardwire or wireless connection, or to a set of
interconnected networked devices for any length of time in order to
participate in the contest or game or to receive or retrieve any data,
or because it failed to sell a bona fide product, shall be subject
to a fine of $1,000 for each device so used. Any person violating
any other provision of this section by possession or use of an illegal
electronic product promotion sweepstakes kiosk or connecting directly
or indirectly to the internet, either by cellular modem, hardwire
or wireless connection, or to a set of interconnected networked devices
for any length of time in order to participate in the contest or game
or to receive or retrieve any data or because it failed to sell a
bona fide product, shall be fined not less than $500 nor more than
$1,000 for each offense. Every day such violation continues shall
constitute a separate and distinct offense. Fines under this section
shall be in addition to suspension or revocation of business licenses
issued under this Code and in addition to confiscation and destruction
of illegal electronic product promotion devices.
(b)
Upon a third violation of the provisions of this section relating to possession or use of an illegal electronic product promotion sweepstakes kiosk occurring on the same premises for a period of five years, all Village licenses issued for business activity on those premises shall be revoked, and no electronic product promotion sweepstakes kiosks or automatic amusement device as defined in the Code may be placed on the premises for a period of one year from the date of revocation. Nothing in this section limits the authority of the Village to revoke a license on a licensee's first or second violation during such period. For purposes of this Subsection (b), "licensee" includes an employee or agent of a licensee.
(c)
The distribution or operation of an electronic product promotion
sweepstakes kiosk by anyone or any entity other than the authorized
distributor/operator, as defined herein, shall be a violation of this
section and subject to the fines listed herein and potential loss
of license.
