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Home My WebLink About5.2 Amending Chapter 11 of the Village Code 9/17/2019 BoardDocs®Pro IL Agenda Item Details Meeting 7, 2019 - REGULAR MEETINGI - . Category 5. CONSENT AGENDA Subject i to waive the rule requiring two readings ordinance and adopt AN ORDINANCE AMENDING , 'MERCHANTS,, BUSINESSES.,OCCUPATIONS AND AMUSEMENTS." AND APPENDIX A OF THE VILLAGE , ILLINOIS. Tye Action (Consent) Information Raffles for non-profit r i tions have becomeincreasing popular y of raising funds to increase tions and be ore lucrative. The Village has received requests to update the Raffles andChances section of Chapter 11 which was ted in 1981 and revised only once in 1986. Currently, raffles not run longer than 120 dayswith prize monies being c . This limitation prevents certain types of raffles such as the ever gaining i popularity"Queen rt " raffle. On July 29, 2019, Governor Pritzker signed Public Act 101-109 that enactedns to the Illinois Raffles and Poker Runs Act. Significant amendments to the Act include: ( ) a licensee now can rent a premisedetermine winners that is not also licensed to conduct raffle; (2) raffle chances now can be sold or issued statewide; ( ) limitations on the value raffle prizes, merchandise and the length of a raffle is now discretionary, rather than mandatory. Village Counsel has reviewed r the attached amendments regarding "Raffles Chances", Article XXX of Chapter 11 of the Village Code, to become current with the State Act and best serve the interest of the community while maintaining the Village's fundamental policies. Alternatives 1. Approve r i nc n iArticle XXX of Chapter res, Businesses, Occupations and Amusements," and Appendixthe Village Code of Mount Prospect., Illinois. 2. Action discretion of VillageBoard. Staff Recommendation Staff recommends approval of text amendments to Chapter 11 and Appendixincluded in the attached ordinance. Final i . All items under Consent Agenda are considered routine by the Village Board and will be enacted by one motion. There will be no separate discussion of those items unless a Board member or member from the audience so requests, in which the item will be removed from the Consent Agenda and considered in its sequence on theagenda. https://go.boarddocs.com/il/vomp/Board.nsf/Public 1/1 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 11, "MERCHANTS, BUSINESSES, OCCUPATIONS AND AMUSEMENTS," AND APPENDIX A OF THE VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, ILLINOIS: SECTION 1: Subsection A of Section 11.3003, "Eligibility for License," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended as follows: License shall be issued only to bona fide religious, charitable, labor, fraternal, educational.. of veterans' or not-for-profit organizations that operate without profit to their members and have been in existence for a period of five (5) years immediately before making application for a license and which have had during the entire five (5) year period a bona fide membership engaged in carrying out their objects. SECTION 2: Subsection A of Section 11.3004, "Application for License," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended as follows: An application for a license to conduct a raffle pursuant to this article shall be made to the village +roeast,piz,,ror manager on the forms provided by his or her office. A separate application shall be submitted for each license which is sought. SECTION 3: Subsection B(7) of Section 11.3004, "Application for License," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended by deleting the third sentence of this subsection and replacing it with the following: The president and board of trustees may waive this bond requirement for any given license provided they are presented with certification of the affirmative vote of the requisite number of the members of the applicant organization, or, if the 1 applicant organization does not have members, of members of the governing board of the organization, to constitute an affirmative action of the applicant organization, that no bond be required. SECTION 4: Subsection B(8) of Section 11.3004, "Application for License," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended as follows: The area or areas "tet-I IN-0 V:CP 11 I^VIII"Iwhere raffle chances shall be sold or issued, the time period during which raffle chances shall be sold or issued, the time or times of determination of winning chances and the location or locations at which winning chances in the raffle will be determined. SECTION 5: Subsection C of Section 11.3004, "Application for License," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended by adding the following: A license holder that, at the end of the time limit set forth in subsection D of section 11.3006 of chapter 11, seeks to extend the license beyond the time limit shall pay an additional nonrefundable fee in the amount set forth in appendix A, division II of this code. Further, a license holder that seeks to extend the duration of its license beyond the time limit set forth in subsection D of section 11.3006 of chapter 11 shall provide an additional fidelity bond in the amount set forth in appendix A, division I of this Code. SECTION 6: Subsection B of Section 11.3004, "Application for License (Raffles)," of Chapter 1, "Merchants, Businesses, Occupations and Amusements," of Appendix A, Division I, "Bonds, Salaries, Insurance and Miscellaneous," of the Mount Prospect Village Code be amended by adding the following: 7. Fidelity bond: $1,000.00. If a raffle license holder wants to issue or sell chances for a single raffle for more than 120 days, it shall provide an additional fidelity bond of $5,000.00. 2 SECTION 7: Subsection C of Section 11.3004, "Application for License," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of Appendix A, Division II, "Fees, Rates and Taxes," of the Mount Prospect Village Code shall be amended by adding the following: Nonrefundable application fee: $25.00. If, at the end of 120 days, a raffle license holder wants to extend the license in order to continue issuing or selling chances for a single raffle for up to, but no more than, 54 weeks, it shall pay an additional nonrefundable fee of $250.00. SECTION 8: Subsection D of Section 11.3004, "Application for License," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended as follows: The ��g in +ronSi iror village manager or designee shall act upon an application for a license within thirty (30) days of receiving a complete application. SECTION 9: Subsection D of Section 11.3006, "Conduct of Raffles," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended by adding the following: If, at the end of 120 days, a license holder wants to continue issuing or selling chances for a single raffle for a period up to, but not more than, 54 weeks, it shall pay the additional nonrefundable fee and provide the additional fidelity bond required by subsection 11.3004 C, above. SECTION 10: Subsection F of Section 11.3006, "Conduct of Raffles," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended as follows: 3 No person except a bona fide director, officer, employee or member of the licensee organization may manage or participate in the management of the raffle. SECTION 11: Subsection G of Section 11.3006, "Conduct of Raffles," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be deleted and replaced with the following: No person may receive any remuneration or profit for managing or participating in the management of the raffle. Licensee organizations may contract with third parties who, acting at the direction of and under the supervision of the licensee organization, provide bona fide services to the licensee organization in connection with the operation of a raffle and may pay reasonable compensation for such services. Such services include the following: (a) advertising, marketing and promotion, (b) legal, (c) procurement of goods, prizes, wares and merchandise for the purpose of operating the raffle, (d) rent, if the premises upon which the raffle will be held is rented, (e) accounting, auditing and bookkeeping, (f) website hosting, (g) mailing and delivery, (h) banking and payment processing, and (i) other services relating to the operation of the raffle. SECTION 12: Subsection H of Section 11.3006, "Conduct of Raffles," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be amended as follows: A licensee may rent a premises on which to determine the winning chance or chances in a raffle provided that the rent is not determined as a percentage of receipts or profits from the raffle. SECTION 13: Subsection I of Section 11.3006, "Conduct of Raffles," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of the Mount Prospect Village Code shall be deleted and replaced with the following: 4 Raffle chances beyond the borders of the village. Winning chances may be determined only at those locations specified on the license. SECTION 14: Subsection A of Section 11.3006, "Conduct of Raffles," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of Appendix A, Division I, "Bonds, Salaries, Insurance and Miscellaneous," of the Mount Prospect Village Code shall be amended by adding the following: A. $50,000.00, unless the license holder extends the raffle beyond 120 days by paying an additional fee to the Village and providing an increased fidelity bond, in which case the aggregate value of all prizes or merchandise awarded in a single raffle may exceed $50,000.00. SECTION 15: Subsection B of Section 11.3006, "Application for License," of Article XXX, "Raffles and Chances," of Chapter 11, "Merchants, Businesses, Occupations and Amusements," of Appendix A, Division I, "Bonds, Salaries, Insurance and Miscellaneous," of the Mount Prospect Village Code shall be amended by adding the following: B. $50,000.00, unless the license holder extends the raffle beyond 120 days by paying an additional fee to the Village and providing an increased fidelity bond, in which case the retail value of any prize awarded in a single raffle may exceed $50,000.00. 5 SECTION 16: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED AND APPROVED this day of , 2019. Arlene A. Juracek, Village President ATTEST: Karen Agoranos, Village Clerk 6