SENATE, No. 1080

STATE OF NEW JERSEY

INTRODUCED MAY 9, 1996

By Senator CIESLA

An Act concerning the eligibility of certain organizations to conduct raffles and supplementing P.L.1954, c.5 (C.5:8-50 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. A nonprofit corporation organized under the laws of this State for the sole purpose of making loans to students from a single New Jersey school district to defray the costs of post-secondary education shall be deemed to be a bona fide educational organization which is eligible to conduct raffles and the net proceeds of such raffles shall be deemed to be devoted to educational uses.

    2. This act shall take effect immediately.

STATEMENT

    The State Constitution provides that the Legislature, by law, may authorize certain types of charitable and civic organizations to conduct raffles. Among the groups which may hold raffles are bona fide educational organizations when the net proceeds of such raffles are devoted to educational uses. N.J. Const. Art. IV, Sec. VII, par. 2. The Legalized Games of Chance Control Commission, which administers the "Raffles Licensing Law," N.J.S.A.5:8-50 et seq., permits scholarship funds to hold raffles but has declined to recognize nonprofit student loan funds as bona fide educational organizations which are eligible to conduct raffles.

    This bill would allow certain types of nonprofit student loan funds to hold raffles. It provides that a nonprofit corporation organized for the sole purpose of making loans to students from a single New Jersey school district in order to defray the costs of post-secondary education shall be deemed to be a bona fide educational organization which may conduct raffles and that the net proceeds thereof shall be deemed to be devoted to educational uses.

Permits certain nonprofit student loan funds to conduct raffles.