(a) For the purposes of this section, the following terms have the following meanings: (1) âCharitable purposesâ excludes purposes that are intended to benefit officers, directors, or members, as defined by Section 5056 of the Corporations Code, of the eligible organization. (2) âEligible organizationâ means a private, nonprofit organization established by, or affiliated with, a team from the Major League Baseball, National Hockey League, National Basketball Association, National Football League, Womenâs National Basketball Association, or Major League Soccer, or a private, nonprofit organization established by the Professional Golfersâ Association of America, Ladies Professional Golf Association, or National Association for Stock Car Auto Racing that has been qualified to conduct business in California for at least one year before conducting a raffle, is qualified for an exemption under Section 501(c)(3) of the Internal Revenue Code, and is exempt from taxation pursuant to Section 23701a, 23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701 l , 23701t, or 23701w of the Revenue and Taxation Code. (3) âRaffleâ means a scheme for the distribution of prizes by chance among persons who have paid money for paper tickets that provide the opportunity to win these prizes, in which all of the following are true: (A) Each ticket sold contains a unique and matching identifier. (B) (i) Winners of the prizes are determined by a manual draw from tickets described in subparagraph (A) that have been sold for entry in the manual draw. (ii) An electronic device may be used to sell tickets. The ticket receipt issued by the electronic device to the purchaser may include more than one unique and matching identifier, representative of and matched to the number of tickets purchased in a single transaction. (iii) A random number generator is not used for the manual draw or to sell tickets. (iv) The prize paid to the winner is comprised of one-half or 50 percent of the gross receipts generated from the sale of raffle tickets for a raffle. (C) The manual draw is conducted in California under the supervision of a natural person who meets all of the following requirements: (i) The person is 18 years of age or older. (ii) The person is affiliated with the eligible organization conducting the raffle. (iii) The person is registered with the Department of Justice pursuant to paragraph (4) of subdivision (n). (D) (i) Fifty percent of the gross receipts generated from the sale of raffle tickets for any given manual draw are used by the eligible organization conducting the raffle solely for charitable purposes, or used to benefit another private, nonprofit organization, provided that an organization receiving these funds is itself an eligible organization as defined in subdivision (c) of Section 320.5. Funds raised by raffles conducted pursuant to this section shall not be used to fund any beneficial, charitable, or other purpose outside of California. This section does not preclude an eligible organization from using funds from sources other than the sale of raffle tickets to pay for the administration or other costs of conducting a raffle if these expenses comply with legal standard of care requirements described in Sections 5231, 7231, and 9241 of the Corporations Code. (ii) An employee of an eligible organization who is a direct seller of raffle tickets shall not be treated as an employee for purposes of workersâ compensation under Section 3351 of the Labor Code if both of the following conditions are satisfied: (I) Substantially all of the remuneration, whether or not paid in cash, for the performance of the service of selling raffle tickets is directly related to sales rather than to the number of hours worked. (II) The services performed by the person are performed pursuant to a written contract between the seller and the eligible organization and the contract provides that the person will not be treated as an employee with respect to
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