REFERENCE TITLE: charitable entities; regulation; limitations

 

 

 

 

State of Arizona

House of Representatives

Fifty-fourth Legislature

First Regular Session

2019

 

 

 

HB 2581

 

Introduced by

Representative Allen J

 

 

AN ACT

 

amending Title 1, Arizona Revised Statutes, by adding chapter 8; relating to charitable entities.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Title 1, Arizona Revised Statutes, is amended by adding chapter 8, to read:

CHAPTER 8

LIMITATIONS ON GOVERNMENT ACTION

ARTICLE 1.  PROHIBITED REGULATION

START_STATUTE1-801.  Charitable entities; demographic information; definitions

A.  This state or a political subdivision of this state may not require a charitable organization, private FOUNDATION trust, split interest trust or private foundation to disclose demographic information about its employees, officers, directors, trustees, members or owners without the prior written consent of the individual about whom the information is sought.

B.  This state or a political subdivision of this state may not require a private FOUNDATION trust, split interest trust, private foundation or grant‑making organization to disclose demographic information about the employees, officers, directors, trustees, members or owners of any entity that has received monetary or in‑kind contributions from or contracted with the private FOUNDATION trust, split interest trust, private foundation or grant‑making organization without the prior written consent of the individual about whom the information is sought.

C.  This state or a political subdivision of this state may not do either of the following:

1.   require that the members of the governing board or officers of a charitable organization, private FOUNDATION trust, split interest trust or private foundation include a person with any particular demographic characteristic.

2.  Prohibit service as a member of the governing board or officer of a charitable organization, private FOUNDATION trust, split interest trust or private foundation by an individual based on the individual's familial relationship to a governing board member, officer or donor or require that the governing board members or officers include an individual who does not share a familial relationship with a governing board member, officer or donor.

D.  This state may not require a charitable organization, private FOUNDATION trust, split interest trust or private foundation to distribute its monies to or contract with any person or entity based on the demographic characteristics of the person or the employees, officers, directors, trustees, members or owners of the entity or based on the populations, locales or communities served by the person or entity, except as a lawful condition on the expenditure of particular monies that is imposed by the donor of the monies.

E.  For the purposes of this section:

1.  "Demographic characteristic" or "demographic information" means the race, religion, gender, national origin, socioeconomic status, age, ethnicity, disability, marital status, sexual orientation or political party affiliation of an individual.

2.  "Grant‑making organization" means an organization that makes grants to charitable organizations and is not a private foundation, private foundation trust or split interest trust.

3.  "Private foundation" has the same meaning prescribed in 26 United States Code section 509. END_STATUTE