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

1-17 (b) The sole or primary purpose of the organization is to:

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

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

2-3 subjects of its charitable services, and benefit a substantial and indefinite

2-4 class of persons who are the legitimate subjects of charity; or

2-5 (2) Provide services that are otherwise required to be provided by a

2-6 local government, this state or the Federal Government; and

2-7 (c) The organization is operating in this state.

2-8 4. An organization is created for educational purposes if:

2-9 (a) It complies with the requirements set forth in subsection 5; and

2-10 (b) The sole or primary purpose of the organization is to:

2-11 (1) Provide athletic, cultural or social activities for children;

2-12 (2) Provide athletic activities for persons who are 50 years of age or

2-13 older;

2-14 (3) Provide displays or performances of the visual or performing arts

2-15 to members of the general public;

2-16 [(3)] (4) Provide instruction and disseminate information on subjects

2-17 beneficial to the community; or

2-18 [(4)] (5) Operate a school, college or university located in this state

2-19 that conducts regular classes and provides courses of study required for

2-20 accreditation or licensing by the state board of education or the

2-21 commission [of] on postsecondary education, or for membership in the

2-22 Northwest Association of Schools and Colleges.

2-23 5. In addition to the requirements set forth in subsection 2, 3 or 4, an

2-24 organization is created for religious, charitable or educational purposes if:

2-25 (a) No part of the net earnings of any such organization inures to the

2-26 benefit of a private shareholder, individual or entity;

2-27 (b) The business of the organization is not conducted for profit;

2-28 (c) No substantial part of the business of the organization is devoted to

2-29 the advocacy of any political principle or the defeat or passage of any state

2-30 or federal legislation;

2-31 (d) The organization does not participate or intervene in any political

2-32 campaign on behalf of or in opposition to any candidate for public office;

2-33 and

2-34 (e) Any property sold to the organization for which an exemption is

2-35 claimed is used by the organization in this state in furtherance of the

2-36 religious, charitable or educational purposes of the organization.

2-37 Sec. 2. NRS 374.3306 is hereby amended to read as follows:

2-38 374.3306 1. For the purposes of NRS 374.3305, an organization is

2-42 (a) It complies with the requirements set forth in subsection 5; and

3-1 (b) The sole or primary purpose of the organization is the operation of a

3-2 church, synagogue or other place of religious worship at which nonprofit

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

3-4 organization includes, without limitation, an integrated auxiliary or

3-5 affiliate of the organization, men’s, women’s or youth groups established

3-6 by the organization, a school or mission society operated by the

3-7 organization, an organization of local units of a church and a convention or

3-8 association of churches.

3-9 3. An organization is created for charitable purposes if:

3-10 (a) It complies with the requirements set forth in subsection 5;

3-11 (b) The sole or primary purpose of the organization is to:

3-12 (1) Advance a public purpose, donate or render gratuitously or at a

3-13 reduced rate a substantial portion of its services to the persons who are the

3-14 subjects of its charitable services, and benefit a substantial and indefinite

3-15 class of persons who are the legitimate subjects of charity; or

3-16 (2) Provide services that are otherwise required to be provided by a

3-17 local government, this state or the Federal Government; and

3-18 (c) The organization is operating in this state.

3-19 4. An organization is created for educational purposes if:

3-20 (a) It complies with the requirements set forth in subsection 5; and

3-21 (b) The sole or primary purpose of the organization is to:

3-22 (1) Provide athletic, cultural or social activities for children;

3-23 (2) Provide athletic activities for persons who are 50 years of age or

3-24 older;

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

3-26 to members of the general public;

3-27 [(3)] (4) Provide instruction and disseminate information on subjects

3-28 beneficial to the community; or

3-29 [(4)] (5) Operate a school, college or university located in this state

3-30 that 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] on postsecondary education, or for membership in the

3-33 Northwest Association of Schools and Colleges.

3-34 5. In addition to the requirements set forth in subsection 2, 3 or 4, an

3-35 organization is created for religious, charitable or educational purposes if:

3-36 (a) No part of the net earnings of any such organization inures to the

3-37 benefit of a private shareholder, individual or entity;

3-38 (b) The business of the organization is not conducted for profit;

3-39 (c) No substantial part of the business of the organization is devoted to

3-40 the advocacy of any political principle or the defeat or passage of any state

3-41 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 January 1, 2000.