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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
raffles; nonprofits; length of existence
Purpose
Reduces, from five years to one year, the time period that a nonprofit organization is required to exist in Arizona immediately before conducting a raffle.
Background
Current statute allows nonprofit organizations to conduct a raffle subject to the following restrictions: 1) no person that is not a true local member of the sponsoring organization may participate, directly or indirectly, in the management, sales or operation of the raffle; 2) nonprofit organizations must be in existence in Arizona for at least five years immediately before conducting a raffle; and 3) no member, officer, employee or agent of the nonprofit organization may receive any direct or indirect monetary benefit other than being able to participate in the raffle on a basis equal to all other participants (A.R.S. § 13-3302).
Nonprofit
organizations under the U.S. Internal Revenue Code include charitable
organizations, churches and religious organizations, business leagues and
chambers of commerce, social and recreational clubs, civics leagues, social
welfare organizations and other nonprofits
(26
U.S.C. § 501).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Reduces, from five years to one year, the time period that a nonprofit organization is required to exist in Arizona immediately before conducting a raffle.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 24, 2022
JT/CY/sr