EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 372.3261 is hereby amended to read as follows:

1-2 372.3261 1. For the purposes of NRS 372.326, an organization is

2-1 3. An organization is created for charitable purposes if:

2-2 (a) It complies with the requirements set forth in subsection 5;

2-3 (b) The sole or primary purpose of the organization is to:

2-4 (1) Advance a public purpose, donate or render gratuitously or at a

2-5 reduced rate a substantial portion of its services to the persons who are the

2-6 subjects of its charitable services, and benefit a substantial and indefinite

2-7 class of persons who are the legitimate subjects of charity; or

2-8 (2) Provide services that are otherwise required to be provided by a

2-9 local government, this state or the Federal Government; and

2-10 (c) The organization is operating in this state.

2-11 4. An organization is created for educational purposes if:

2-12 (a) It complies with the requirements set forth in subsection 5; and

2-13 (b) The sole or primary purpose of the organization is to:

2-14 (1) Provide athletic, cultural or social activities for children;

2-15 (2) Provide displays or performances of the visual or performing arts

2-16 to members of the general public;

2-17 (3) Provide instruction and disseminate information on subjects

2-18 beneficial to the community; [or]

2-19 (4) Operate a school, college or university located in this state that

2-20 conducts regular classes and provides courses of study required for

2-21 accreditation or licensing by the state board of education or the

2-22 commission of postsecondary education, or for membership in the

2-23 Northwest Association of Schools and Colleges [.] ; or

2-24 (5) Serve as a local or state apprenticeship committee to advance

2-25 programs of apprenticeship in this state.

2-26 5. In addition to the requirements set forth in subsection 2, 3 or 4, an

2-27 organization is created for religious, charitable or educational purposes if:

2-28 (a) No part of the net earnings of any such organization inures to the

2-29 benefit of a private shareholder, individual or entity;

2-30 (b) The business of the organization is not conducted for profit;

2-31 (c) No substantial part of the business of the organization is devoted to

2-32 the advocacy of any political principle or the defeat or passage of any state

2-33 or federal legislation;

2-34 (d) The organization does not participate or intervene in any political

2-35 campaign on behalf of or in opposition to any candidate for public office;

2-36 and

2-37 (e) Any property sold to the organization for which an exemption is

2-38 claimed is used by the organization in this state in furtherance of the

2-39 religious, charitable or educational purposes of the organization.

2-40 Sec. 2. NRS 374.3306 is hereby amended to read as follows:

2-41 374.3306 1. For the purposes of NRS 374.3305, an organization is

2-43 the provisions of this section.

3-1 2. An organization is created for religious purposes if:

3-2 (a) It complies with the requirements set forth in subsection 5; and

3-3 (b) The sole or primary purpose of the organization is the operation of a

3-4 church, synagogue or other place of religious worship at which nonprofit

3-5 religious services and activities are regularly conducted. Such an

3-6 organization includes, without limitation, an integrated auxiliary or

3-7 affiliate of the organization, men’s, women’s or youth groups established

3-8 by the organization, a school or mission society operated by the

3-9 organization, an organization of local units of a church and a convention or

3-10 association of churches.

3-11 3. An organization is created for charitable purposes if:

3-12 (a) It complies with the requirements set forth in subsection 5;

3-13 (b) The sole or primary purpose of the organization is to:

3-14 (1) Advance a public purpose, donate or render gratuitously or at a

3-15 reduced rate a substantial portion of its services to the persons who are the

3-16 subjects of its charitable services, and benefit a substantial and indefinite

3-17 class of persons who are the legitimate subjects of charity; or

3-18 (2) Provide services that are otherwise required to be provided by a

3-19 local government, this state or the Federal Government; and

3-20 (c) The organization is operating in this state.

3-21 4. An organization is created for educational purposes if:

3-22 (a) It complies with the requirements set forth in subsection 5; and

3-23 (b) The sole or primary purpose of the organization is to:

3-24 (1) Provide athletic, cultural or social activities for children;

3-25 (2) Provide displays or performances of the visual or performing arts

3-26 to members of the general public;

3-27 (3) Provide instruction and disseminate information on subjects

3-28 beneficial to the community; [or]

3-29 (4) Operate a school, college or university located in this state that

3-30 conducts regular classes and provides courses of study required for

3-31 accreditation or licensing by the state board of education or the

3-32 commission of postsecondary education, or for membership in the

3-33 Northwest Association of Schools and Colleges [.] ; or

3-34 (5) Serve as a local or state apprenticeship committee to advance

3-35 programs of apprenticeship in this state.

3-36 5. In addition to the requirements set forth in subsection 2, 3 or 4, an

3-37 organization is created for religious, charitable or educational purposes if:

3-38 (a) No part of the net earnings of any such organization inures to the

3-39 benefit of a private shareholder, individual or entity;

3-40 (b) The business of the organization is not conducted for profit;

3-41 (c) No substantial part of the business of the organization is devoted to

3-42 the advocacy of any political principle or the defeat or passage of any state

3-43 or federal legislation;

4-1 (d) The organization does not participate or intervene in any political

4-2 campaign on behalf of or in opposition to any candidate for public office;

4-3 and

4-4 (e) Any property sold to the organization for which an exemption is

4-5 claimed is used by the organization in this state in furtherance of the

4-6 religious, charitable or educational purposes of the organization.

4-7 Sec. 3. This act becomes effective on July 1, 1999.