House Bill 1044, sponsored by Representatives RJ Hawk, Brandon Achor, Matt Duffield, Keith Brooks, John Maddox, David Ray, and Lee Johnson, and Senators Jonathan Dismang, Justin Boyd, and Matt McKee, creates the Arkansas Sports Raffle Act. This Act establishes a new framework for institutions of higher education (and their affiliated nonprofits) to conduct raffles to support their athletic programs.

Here's a detailed summary:

Key Changes:

1. Exemption from Charitable Bingo and Raffles Enabling Act:

   • The bill amends the existing Charitable Bingo and Raffles Enabling Act to specifically exempt raffles conducted by higher education institutions and their affiliated nonprofits under the new Arkansas Sports Raffle Act. This means these raffles will have their own set of rules.

2. Establishment of the Arkansas Sports Raffle Act:

   • Purpose: The Act aims to allow colleges and universities (and their affiliated nonprofits) to raise funds for their athletic programs through raffles.
   • Legislative Findings: The bill states that these raffles are in the public interest because they:
     • Enhance the image of the institution, attracting students and athletes.
     • Provide financial support for student-athletes.
     • Increase public exposure for the institution, potentially leading to more financial support for academic programs.

3. Definitions:

   • "Affiliated nonprofit organization": A nonprofit established by or affiliated with a higher education institution in Arkansas, created to raise funds for the athletic program, with 501(c)(3) tax-exempt status, and in existence for at least 5 years.
   • "Qualifying organization": An institution of higher education in Arkansas or its affiliated nonprofit.
   • "Raffle": The sale of tickets for a chance to win a prize through a random drawing.

4. Conducting Raffles:

   • Authorization: Qualifying organizations can conduct raffles under this Act.
   • Methods: Raffles can be conducted:
     • On digital or electronic devices.
     • On online platforms, websites, or software applications.
     • On any premises owned, leased, or used by the qualifying organization.
   • Connection to Sporting Events: Raffles must be based on an official game or sporting event between the qualifying organization's athletic team and an opposing team. Only one raffle is allowed per game or event.
   • Raffle Details: Qualifying organizations can:
     • Determine acceptable payment methods for raffle tickets.
     • Set the prize amount or how the raffle receipts will be divided.
     • They must publicly announce the prize amount or division of receipts before selling tickets.

5. Use of Raffle Funds:

   • Permitted Uses: Raffle proceeds can be used for:
     • Prize payments.
     • Administrative costs, fees, and expenses.
     • Software, technology, supplies, and equipment.
     • Scholarships, financial aid, stipends, or other compensation for student-athletes.
     • Compensation of student-athletes for the use of their publicity rights (in accordance with the Arkansas Student-Athlete Publicity Rights Act).
     • General support of athletic teams or programs.
     • Purchase, maintenance, repair, debt service, or construction of athletic property, facilities, or equipment.
   • Prohibited Use: Raffle proceeds cannot be used to compensate employees or affiliates of the qualifying organization conducting the raffle.

6. Other Provisions:

   • Unclaimed Prizes: Unclaimed prizes after 120 days are retained by the institution.
   • Age Restriction: People under 18 cannot buy raffle tickets.
   • Casino Involvement: Casino licensees and their agents cannot operate or administer raffles for qualifying organizations.

7. Amendments to Alcoholic Beverage Laws:

   • The bill amends several sections of Arkansas law regarding alcoholic beverages to add the Arkansas Sports Raffle Act as an exception to various prohibited gambling practices. This likely means that these raffles can be conducted where alcohol is served.

In essence: House Bill 1044 creates a new avenue for colleges and universities in Arkansas to raise funds for their athletic programs through raffles. It provides a specific legal framework for these raffles, including how they can be conducted, how the funds can be used, and exemptions from certain existing laws.