North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1525 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25.0798.04000
	1	+	25.0798.02006
	2	+	Title.03000
	3	+	Adopted by the Judiciary Committee
2	4		Sixty-ninth
	5	+	February 10, 2025
3	6		Legislative Assembly
4	7		of North Dakota
5	8		Introduced by
6	9		Representatives Koppelman, Grueneich, Hauck, Louser, M. Ruby, Vetter, D. Ruby
7	10		Senators Magrum, Cory, Meyer, Castaneda
8		-	A BILL for an Act to amend and reenact sections 53-06.1-01.1 and 53-06.1-15.1 of the North
9		-	Dakota Century Code, relating to the structure of the state gaming commission and the
10		-	administration and regulation of games of chance; to provide an appropriation; and to provide
11		-	for application.
	11	+	A BILL for an Act to create and enact a new section to chapter 53-06.1 of the North Dakota
	12	+	Century Code, relating to the creation of the executive director of the state gaming commission;
	13	+	to amend and reenact sections 53-01-02, 53-01-03, 53-01-07, 53-01-09, 53-01-19, 53-06.1-01,
	14	+	53-06.1-01.1, 53-06.1-03, 53-06.1-06, 53-06.1-10, 53-06.1-11 53-06.1-11.2, 53-06.1-12,
	15	+	53-06.1-12.3, 53-06.1-12.4, 53-06.1-14, and 53-06.1-15.1, 53-06.2-01, 53-06.2-04,
	16	+	53-06.2-04.1, 53-06.2-07, 53-06.2-10.1, 53-12.1-01, 53-12.1-02, 53-12.1-03, 53-12.1-04,
	17	+	53-12.1-09, 53-12.1-11, and 53-12.1-13 of the North Dakota Century Code, relating to the
	18	+	structure of the state gaming commission and the administration and regulation of games of
	19	+	chance, combative sports, pari-mutuel horse racing, and the lottery; and to repeal sections
	20	+	53-06.2-02 and 53-06.2-03 of the North Dakota Century Code, relating to the pari-mutuel horse
	21	+	racing commission and pari-mutuel horse racing executive director; and to provide an
	22	+	appropriation.
12	23		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
	24	+	SECTION 1. AMENDMENT. Section 53-01-02 of the North Dakota Century Code is
	25	+	amended and reenacted as follows:
	26	+	53-01-02. Administration by secretary of state - Appointment of commission of
	27	+	combative sportsthe executive director of the gaming commission.
	28	+	The secretary of state shall act as state commissioner of combative sports andexecutive
	29	+	director of the gaming commission shall administer this chapter. The secretary of state may
	30	+	appoint a commission of combative sports to assist and advise the secretary of state in matters
	31	+	Page No. 1 25.0798.02006
	32	+	HOUSE BILL NO. 1525
	33	+	PROPOSED AMENDMENTS TO
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	55	+	relating to the regulation of boxing, kickboxing, mixed fighting style competition, and sparring.
	56	+	The secretary of state shall define the duties of the commission. Commission members are not
	57	+	entitled to compensation, except for reimbursement for actual and necessary expenses at the
	58	+	same rate as allowed state employees incurred in performing their official duties.
	59	+	SECTION 2. AMENDMENT. Section 53-01-03 of the North Dakota Century Code is
	60	+	amended and reenacted as follows:
	61	+	53-01-03. Restrictions.
	62	+	The secretary of stateexecutive director of gaming may not promote, directly or indirectly,
	63	+	any boxing, kickboxing, mixed fighting style competition, or sparring exhibition, engage in the
	64	+	managing of any boxer, kickboxer, or mixed style fighter, or be interested in any manner in the
	65	+	proceeds from any boxing, kickboxing, mixed fighting style competition, or sparring exhibition.
	66	+	SECTION 3. AMENDMENT. Section 53-01-07 of the North Dakota Century Code is
	67	+	amended and reenacted as follows:
	68	+	53-01-07. Duties of state commissioner of combative sportsthe executive director of
	69	+	gaming .
	70	+	The secretary of stateexecutive director of gaming shall supervise all boxing, kickboxing,
	71	+	mixed fighting style competitions, or sparring exhibitions held in the state and may:
	72	+	1. Adopt rules governing the conduct of boxing, kickboxing, mixed fighting style
	73	+	competitions, and sparring exhibitions.
	74	+	2. Establish license fees for all boxers, kickboxers, mixed style fighters, boxing,
	75	+	kickboxing, and mixed fighting style competition promoters, managers, judges,
	76	+	timekeepers, cornerpersons, knockdown counters, matchmakers, and referees or
	77	+	other participants.
	78	+	3. Charge a fee equal to the actual cost incurred to regulate the competitions and
	79	+	exhibitions.
	80	+	4. Adopt rules allowing the secretary of state to perform screening tests for controlled
	81	+	substances, as defined in section 19-03.1-01, on boxers, kickboxers, and mixed style
	82	+	fighters participating in a competition or an exhibition.
	83	+	SECTION 4. AMENDMENT. Section 53-01-09 of the North Dakota Century Code is
	84	+	amended and reenacted as follows:
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	117	+	53-01-09. Fees paid into special fund - Continuing appropriation.
	118	+	All fees collected by the secretary of stateexecutive director of gaming pursuant to this
	119	+	chapter must be deposited in a special fund maintained in the state treasury. All money
	120	+	deposited in the fund is appropriated as a continuing appropriation to the secretary of
	121	+	stateexecutive director of gaming for administering this chapter and for the compensation and
	122	+	expenses of members of the state gaming commission of combative sports.
	123	+	SECTION 5. AMENDMENT. Section 53-01-19 of the North Dakota Century Code is
	124	+	amended and reenacted as follows:
	125	+	53-01-19. Penalty.
	126	+	A person who violates this chapter or any rule adopted by the secretary of stateunder this
	127	+	chapter is guilty of a class B misdemeanor.
	128	+	SECTION 6. AMENDMENT. Section 53-06.1-01 of the North Dakota Century Code is
	129	+	amended and reenacted as follows:
	130	+	53-06.1-01. Definitions.
	131	+	As used in this chapter:
	132	+	1. "Adjusted gross proceeds" means gross proceeds less cash prizes, cost of
	133	+	merchandise prizes, gaming tax, and federal excise tax imposed under section 4401
	134	+	of the Internal Revenue Code [26 U.S.C. 4401].
	135	+	2. "Alcoholic beverage establishment" means an establishment licensed under chapter
	136	+	5-02 where alcoholic beverages are sold, dispensed, and consumed by guests on the
	137	+	premises. The term does not include a liquor store, gas station, grocery store, or
	138	+	convenience store.
	139	+	3. "Charitable organization" means an organization whose primary purpose is for relief of
	140	+	poor, distressed, underprivileged, diseased, elderly, or abused persons, prevention of
	141	+	cruelty to children or animals, or similar condition of public concern.
	142	+	4. "Civic and service organization" means an organization whose primary purpose is to
	143	+	promote the common good and social welfare of a community as a sertoma, lion,
	144	+	rotary, jaycee, kiwanis, or similar organization.
	145	+	5. "Closely related organization" means an organization that controls, is controlled by, or
	146	+	is under common control with another organization. Control exists when an
	147	+	organization has the authority or ability to elect, appoint, or remove a majority of the
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	181	+	officers or directors of another organization or, by policy, contract, or otherwise, has
	182	+	the authority or ability to directly or indirectly direct or cause the direction of the
	183	+	management or policies of another organization.
	184	+	6. "Distributor" means a person that sells, markets, or distributes equipment designed for
	185	+	use in the conduct of games.
	186	+	7. "Educational organization" means a nonprofit public or private elementary or
	187	+	secondary school, two-year or four-year college, or university.
	188	+	8. "Electronic pull tab device" means a device, approved by the attorney
	189	+	generalexecutive director, which electronically displays pull tabs.
	190	+	9. "Eligible organization" means a veterans, charitable, educational, religious, fraternal,
	191	+	civic and service, public safety, or public-spirited organization domiciled in North
	192	+	Dakota or authorized by the secretary of state as a foreign corporation under chapter
	193	+	10-33, incorporated as a nonprofit organization, and which has been regularly and
	194	+	actively fulfilling its primary purpose within this state during the two immediately
	195	+	preceding years. However, an educational organization does not need to be
	196	+	incorporated or be in existence for two years. An organization's primary purpose may
	197	+	not involve the conduct of games. The organization may be issued a license by the
	198	+	attorney generalexecutive director. For purposes of this section, a foreign corporation
	199	+	authorized under chapter 10-33 is not an eligible organization unless authorized to
	200	+	conduct a raffle under chapter 20.1-04 or 20.1-08 and may not conduct a game other
	201	+	than a raffle under chapter 20.1-04 or 20.1-08.
	202	+	10. "Executive director" means the executive director of the gaming commission.
	203	+	11. "Fraternal organization" means an organization, except a school fraternity, which is a
	204	+	branch, lodge, or chapter of a national or state organization and exists for the common
	205	+	business, brotherhood, or other interests of its members. The organization must have
	206	+	qualified for exemption from federal income tax under section 501(c)(8) or 501(c)(10)
	207	+	of the Internal Revenue Code.
	208	+	11.12. "Games" means games of chance.
	209	+	12.13. "Gross proceeds" means all cash and checks received from conducting games.
	210	+	13.14. "Licensed organization" means an eligible organization licensed by the attorney
	211	+	generalexecutive director.
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	245	+	14.15. "Manufacturer" means, for a pull tab or bingo card, a person who designs, prints,
	246	+	assembles, or produces the product. For a pull tab dispensing device, electronic pull
	247	+	tab device operating system, bingo card marking device, or electronic raffle system, a
	248	+	manufacturer means the person who directly controls and manages development of
	249	+	and owns the rights to the proprietary software encoded on a processing chip that
	250	+	enables the device or system to operate.
	251	+	15.16. "Net income" means gross proceeds less cash prizes, cost of merchandise prizes, and
	252	+	expenses to conduct the gaming activity.
	253	+	16.17. "Net proceeds" means adjusted gross proceeds less allowable expenses and gaming
	254	+	tax.
	255	+	17.18. "Permit" means a local permit or restricted event permit issued by a governing body of
	256	+	a city or county to a nonprofit organization or group of people domiciled in North
	257	+	Dakota.
	258	+	18.19. "Person" means any person, partnership, corporation, limited liability company,
	259	+	association, or organization.
	260	+	19.20. "Prize board" means a board used with pull tabs to award cash or merchandise prizes.
	261	+	20.21. "Public safety organization" means an organization whose primary purpose is to
	262	+	provide firefighting, ambulance service, crime prevention, or similar emergency
	263	+	assistance.
	264	+	21.22. "Public-spirited organization" means an organization whose primary purpose is for
	265	+	scientific research, amateur sports competition, safety, literary, arts, preservation of
	266	+	cultural heritage, educational activities, educational public service, youth, economic
	267	+	development, tourism, community medical care, community recreation, or similar
	268	+	organization, which does not meet the definition of any other type of eligible
	269	+	organization. However, a nonprofit organization or a group of people recognized as a
	270	+	public-spirited organization by a governing body of a city or county for obtaining a
	271	+	permit does not need to meet this definition.
	272	+	22.23. "Pull tab" means a folded or banded ticket or jar ticket, a pull tab card with break-open
	273	+	tabs, or an electronic pull tab displaying concealed numbers or symbols or
	274	+	combinations of concealed numbers and symbols which are exposed by a player to
	275	+	determine the outcome. The terms "pull tab" and "jar ticket" are used interchangeably
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	309	+	unless otherwise stated. A winning pull tab contains certain symbols, numbers, or
	310	+	combinations of symbols and numbers and may contain multiple winning symbols,
	311	+	numbers, or combinations of symbols and numbers which have been previously
	312	+	designated as winning symbols or numbers.
	313	+	23.24. "Religious organization" means a church, body of communicants, or group gathered in
	314	+	common membership whose primary purpose is for advancement of religion, mutual
	315	+	support and edification in piety, worship, and religious observances.
	316	+	24.25. "Veterans organization" means any congressionally chartered post organization, or
	317	+	any branch or lodge or chapter of a nonprofit national or state organization whose
	318	+	membership consists of individuals who are or were members of the armed services
	319	+	or forces of the United States. The organization must have qualified for exemption
	320	+	from federal income tax under section 501(c)(19) of the Internal Revenue Code.
13	321		SECTION 1. AMENDMENT. Section 53-06.1-01.1 of the North Dakota Century Code is
14	322		amended and reenacted as follows:
15		-	53-06.1-01.1. Gaming commission - Rules - Authority.
16		-	1.The state gaming commission shall administer and control games of chance. The
17		-	commission consistsmust consist of the:
18		-	a.The governor or the governor's designee, who shall serve as chairman and four
19		-	other;
20		-	b.Four members appointed by the governor, with the consent of the senate.,
	323	+	53-06.1-01.1. Gaming commission - Rules - Games of chance - Combative sports -
	324	+	Pari-mutuel horse racing - Lottery Authority .
	325	+	1.The state gaming commission shall administer and control games of chance ,
	326	+	combative sports, pari-mutuel horse racing, and the lottery . The commission consists
	327	+	of the:
	328	+	a.The lieutenant governor, who shall serve as chairman and four other;
	329	+	b.Six members appointed by the governor, with the consent of the senate.,
21	330		including one member who :
22		-	(1)Is an owner of an alcoholic beverage establishment where gaming is
23		-	conducted;
24		-	(2)Represents a licensed organization ;
25		-	(3)Represents the governing body of a city that has authorized sites where
26		-	gaming is conducted at the time the appointment is made; and
27		-	(4)Is a member at large; and
	331	+	(1)Three members who are directly associated with the charitable gaming
	332	+	industry but not employees of an organization conducting charitable
	333	+	gaming Is an owner of an alcoholic beverage establishment ;
	334	+	(2)One member with expert knowle dge of the lott ery R epresents a licensed
	335	+	organization with adjusted gross proceeds not exceeding fifty thousand
	336	+	dollars ; and
	337	+	(3)One member with expert knowledge of pari-mutuel horse racing R epresents
	338	+	a licensed organization with adjusted gross proceeds of fifty thousand
	339	+	dollars or more ; and
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	373	+	(4) R epresents a licensed organization operating in a rural community with a
	374	+	population of fewer than ten thousand;
	375	+	(5) R epresents the governing body of a city with a population of forty thousand
	376	+	or more ; and
	377	+	(6) Represents the governing body of a city with a population of fewer than forty
	378	+	thousand or the county where the city is located; and
28	379		c.Two members, one appointed by the speaker of the house of representatives and
29	380		one appointed by the president pro tempore of the senate.
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31		-	ENGROSSED HOUSE BILL NO. 1525
32		-	FIRST ENGROSSMENT
33		-	with Senate Amendments
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57	381		2.The appointed members serve three-yeartwo - year terms and until a successor is
58	382		appointed and qualified. If the senate is not in session when the term of a member
59	383		expires, the governor may make an interim appointment, and the interim appointee
60	384		holds office until the senate confirms or rejects the appointment. A member appointed
61	385		to fill a vacancy arising from other than the natural expiration of a term serves only for
62	386		the unexpired portion of the term. The terms of the commissioners must be staggered
63		-	so no more than ~~twothree~~ terms expire each July first.
	387	+	so no more than two terms expire each July first.
64	388		2.3.A person is ineligible for appointment tomember of the commission if that person has
65	389		not been:
66	390		a.Must be a resident of this state for at least two years before the date of
67	391		appointment. A person is also ineligible if that person is not
68	392		b.Must be of such character and reputation as to promote public confidence in the
69	393		administration of gaming in this state. A person is also ineligible if that person has
70	394		c.May not have been convicted of a felony criminal offense or has pled guilty or
71	395		been found guilty of any violation of chapter 12.1-06, 12.1-08, 12.1-09, 12.1-10,
72	396		12.1-11, 12.1-12, 12.1-22, 12.1-23, 12.1-24, 12.1-28, 53-06.1, or 53-06.2, or has
73	397		pled guilty or been found guilty of any violation of section 6-08-16 or 6-08-16.2, or
74	398		has pled guilty or been found guilty of any offense or violation that has a direct
75	399		bearing on the person'sindividual's fitness to be involved in gaming, or who has
76	400		committed an equivalent offense or violation of the laws of another state or of the
77	401		United States. A person who has a financial interest in gaming or is an employee
78	402		or a member of the gaming committee of a licensed organization or distributor
79	403		cannot be a member of the commission. For the purpose of this subsection, a
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80	437		financial interest includes the receiving of any direct payment from an eligible
81	438		organization for property, services, or facilities provided to that organization.
82	439		3.4.Commission members are entitled to seventy-five dollarsthe amount under
83	440		subsection 1 of section 54-03-20 per day for compensation for each day spent on
84	441		commission duties and mileage and expense reimbursement as allowed to other state
85	442		employees.
86		-	4.5.The commission shall meet at least quarterly.
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119		-	6.The commission shall adopt rules in accordance with chapter 28-32, to administer and
120		-	regulate the gaming industry, including methods of conduct, play, and promotion of
	443	+	4.5.The commission shall adopt rules in accordance with chapter 28-32, to administer and
	444	+	regulate the:
	445	+	a. The gaming industry, including methods of conduct, play, and promotion of
121	446		games; minimum procedures and standards for recordkeeping and internal control;
122	447		requiring tax returns and reports from organizations or distributors; methods of
123	448		competition and doing business by distributors and manufacturers; acquisition and use
124	449		of gaming equipment; quality standards or specifications for the manufacture of pull
125	450		tabs, paper bingo cards, electronic pull tab devices, pull tab dispensing devices, bingo
126	451		card marking devices, and fifty-fifty raffle systems; to ensure that net proceeds are
127	452		used for educational, charitable, patriotic, fraternal, religious, or public-spirited uses; to
128	453		protect and promote the public interest; to ensure fair and honest games; to ensure
129	454		that fees and taxes are paid; and to prevent and detect unlawful gambling activity.
130		-	7.Based on evidence obtained from the attorney general , which demonstrates a person
131		-	violated this chapter or a gaming rule, which could result in the revocation or
132		-	suspension of a site authorization or an organization's gaming license or the
133		-	imposition of a monetary fine of one thousand dollars or more, the commission shall
134		-	hold a hearing to determine whether a violation occurred. The commission shall
135		-	designate the time and place for the hearing and provide notice to the person accused
136		-	of the violation at least forty-five days before the hearing. The parties may present
137		-	evidence, examine, and cross-examine witnesses as provided under sections
138		-	28 - 32 - 24 and 28 - 32 - 35. The hearing must be recorded on video and broadcast live.
139		-	8.The commission shall determine whether a violation has occurred and issue an order
140		-	within thirty days of the date the hearing concluded. In the order, the commission may:
	455	+	b. Combative sports, as required under section 53 - 01 - 07.
	456	+	c. Pari-mutuel horse racing, as required under section 53 - 06.2 - 04.
	457	+	d. The operation of the lottery, as required under section 53 - 12.1 - 13.
	458	+	6. Based on evidence obtained from the attorney general or a complaint under chapter
	459	+	28 - 32, the commission shall hold a hearing according to the requirements under
	460	+	chapter 28 - 32. A hearing must be recorded on video and broadcast live. Upon
	461	+	disposition of an adjudicative proceeding, the commission may:
141	462		a. Require a representative of a licensed organization or distributor to participate in
142	463		training or for good cause prohibit the person from being involved in gaming as
143	464		an employee or volunteer. The commission may for good cause prohibit a person
144	465		from providing personal or business services to an organization or distributor.
145	466		b. Prohibit a person from playing games if the person violates this chapter, chapter
146	467		12.1-28 or 53-06.2, or a gaming rule.
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147	501		c. Require or authorize an organization to pay or prohibit an organization from
148	502		paying a bingo, electronic quick shot bingo, or raffle prize to a player on a dispute
149	503		or based on a factual determination or a hearing by the commission.
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183		-	d.Suspend, deny, or revoke an organization's permit or an organization's,
184		-	distributor's, or manufacturer's application or license for violation, by the
185		-	organization, distributor, or manufacturer or any officer, director, agent, member,
186		-	or employee of the organization, distributor, or manufacturer, of this chapter or
187		-	any gaming rule.
	504	+	d. Based on reasonable ground or written complaint, suspend, deny, or revoke an
	505	+	organization's permit or an organization's, distributor's, or manufacturer's
	506	+	application or license for violation, by the organization, distributor, or
	507	+	manufacturer or any officer, director, agent, member, or employee of the
	508	+	organization, distributor, or manufacturer, of this chapter or any gaming rule.
188	509		e. Impose a monetary fine on a licensed organization, organization that has a
189	510		permit, distributor, manufacturer, owner of an authorized site, or third-party
190	511		business operating gaming and working as an agent of the charity for failure to
191	512		comply with this chapter or any gaming rule. This fine may be in addition to or in
192	513		lieu of a license suspension or revocation. The monetary fine for each violation
193	514		by:
194	515		(1) An organization is a minimum of twenty-five dollars and may not exceed two
195	516		percent of the organization's average quarterly gross proceeds, or five
196	517		thousand dollars, whichever is greater.
197	518		(2) A distributor is a minimum of one hundred dollars and may not exceed five
198	519		thousand dollars.
199	520		(3) A manufacturer is a minimum of five hundred dollars and may not exceed
200	521		two hundred fifty thousand dollars.
201	522		(4) An owner of an authorized site is a minimum of two hundred fifty dollars and
202	523		may not exceed two thousand five hundred dollars.
203		-	f.For good cause, require a licensed organization to use the attorney general's
204		-	recordkeeping system for all games.
205		-	9.A person may appeal an order of the commission under this section to the office of
206		-	administrative hearings to be considered by an administrative law judge according to
207		-	the procedures for a hearing under chapter 28 - 32. Notwithstanding any other law, the
208		-	hearing must be held within thirty days of the date the appeal is filed. The office of
209		-	administrative hearings shall create a form to file an appeal under this subsection and
210		-	publish the form on its website. An order of the commission must be stayed pending
211		-	the determination of the appeal.
212		-	10.The commission may refer to law enforcement any evidence the commission believes
213		-	is evidence of a crime.
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	524	+	f. At any time within three years after any amount of fees, monetary fine, interest,
	525	+	penalty, or tax required to be paid pursuant to this chapter becomes due, bring a
	526	+	civil action to collect the amount due. However, if for any reason there is a
	527	+	change in adjusted gross proceeds or tax liability by an amount which is in
	528	+	excess of twenty-five percent of the amount of adjusted gross proceeds or tax
	529	+	liability originally reported on the tax return, any additional tax determined to be
	530	+	due may be assessed within six years after the due date of the tax return, or
	531	+	six years after the tax return was filed, whichever period expires later. An action
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	565	+	may be brought although the person owing the fees or tax is not presently
	566	+	licensed.
	567	+	g. Institute an action in any district court for declaratory or injunctive relief against a
	568	+	person, whether or not the person has a gaming licensee, as the commission
	569	+	deems necessary to prevent noncompliance with this chapter or gaming rules.
	570	+	h. For good cause, require a licensed organization to use the attorney general's
	571	+	recordkeeping system for all games.
	572	+	7. The commission may refer to the attorney general for prosecution any evidence the
	573	+	commission believes is evidence of a crime.
	574	+	SECTION 8. A new section to chapter 53-06.1 of the North Dakota Century Code is created
	575	+	and enacted as follows:
	576	+	Executive director of gaming - Appointment - Duties - Other personnel.
	577	+	1. The state gaming commission shall appoint an executive director of gaming. The
	578	+	commission shall establish the executive director's qualifications and salary.
	579	+	2. The executive director shall carry out the duties assigned under this chapter and
	580	+	chapters 53 - 01, 53 - 06.2, and 53 - 12.1.
	581	+	3. The executive director may employ other individuals as authorized by the commission.
	582	+	SECTION 9. AMENDMENT. Section 53-06.1-03 of the North Dakota Century Code is
	583	+	amended and reenacted as follows:
	584	+	53-06.1-03. Permits, site authorization, and licenses - Organization requirements -
	585	+	Site inspection.
	586	+	1. Except as authorized by the attorney general, an organization that has its license
	587	+	suspended or revoked, or has relinquished or not renewed its license and not
	588	+	disbursed its net proceeds, is ineligible for a license or permit. Only one of two or more
	589	+	closely related organizations may have a license or permit at one time. A college or
	590	+	university fraternity, sorority, or club is not closely related to an educational
	591	+	organization. An organization shall apply for a permit as follows:
	592	+	a. An organization recognized as a public-spirited organization by the governing
	593	+	body of a city or county may apply for permits. A local permit may allow the
	594	+	organization to conduct only raffles, bingo, or sports pools. A restricted event
	595	+	permit may allow the organization to conduct only raffles, bingo, sports pools,
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	629	+	paddlewheels, twenty-one, and poker. The organization or closely related
	630	+	organizations as a whole may only award a primary prize that does not exceed
	631	+	eight thousand dollars and total prizes of all games do not exceed forty thousand
	632	+	dollars per year. These maximum prize amounts do not apply to raffles conducted
	633	+	under chapter 20.1-08. The determination of what is a "public-spirited
	634	+	organization" is within the sole discretion of the governing body. An organization
	635	+	shall disclose on the application its intended use of the net income from the
	636	+	gaming activity. A governing body may issue a permit for games to be held at
	637	+	designated times and places.
	638	+	b. An organization shall apply to the governing body of the city or county in which
	639	+	the proposed site is located. Application must be made on a form prescribed by
	640	+	the attorney generalexecutive director. Approval may be granted at the discretion
	641	+	of the governing body. A governing body may establish a fee not to exceed
	642	+	twenty-five dollars for each permit. A permit must be on a fiscal year basis from
	643	+	July first to June thirtieth or on a calendar-year basis.
	644	+	c. An organization that has a local permit or a restricted event permit may use the
	645	+	net income from the gaming activity for any purpose that does not violate this
	646	+	chapter or gaming rules, unless the organization is a state political party or
	647	+	legislative district party committee, the organization may use the net income from
	648	+	a raffle for a political purpose. For purposes of this subdivision, a public-spirited
	649	+	use includes a political purpose.
	650	+	d. An organization that has a restricted event permit is restricted to one event per
	651	+	year and:
	652	+	(1) May not pay remuneration to employees for personal services;
	653	+	(2) Shall use chips as wagers;
	654	+	(3) Shall redeem a player's chips for merchandise prizes or cash;
	655	+	(4) Shall disburse net income to eligible uses referenced in subdivision c, if
	656	+	applicable, and in section 53-06.1-11.1; and
	657	+	(5) Shall file a report prescribed by the attorney generalexecutive director with
	658	+	the governing body and attorney generalexecutive director.
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	691	+	2. Except as authorized by the executive director, an organization that has its license
	692	+	suspended or revoked, or has relinquished or not renewed its license and not
	693	+	disbursed its net proceeds, is ineligible for a license or permit.
	694	+	3. Only one of two or more closely related organizations may have a license or permit at
	695	+	one time. A college or university fraternity, sorority, or club is not closely related to an
	696	+	educational organization.
	697	+	2.4. An eligible organization shall apply for a license to conduct only bingo, electronic quick
	698	+	shot bingo, raffles, calcuttas, pull tabs, punchboards, twenty-one, paddlewheels,
	699	+	poker, or sports pools by:
	700	+	a. First securing approval for a site authorization from the governing body of the city
	701	+	or county in which the proposed site is located. Approval, which may be granted
	702	+	at the discretion of the governing body, must be recorded on a site authorization
	703	+	form that is to accompany the license application to the attorney
	704	+	generalexecutive director for final approval. An eligible organization may request
	705	+	a specific site location on the site authorization form.
	706	+	(1) A governing body:
	707	+	(a) May not require an eligible organization to donate net proceeds to the
	708	+	city, county, or related political subdivision or for community programs
	709	+	or services within the city or county as a condition for receiving a site
	710	+	authorization from the city or county;
	711	+	(b) May not deny a site authorization solely because the eligible
	712	+	organization has not conducted gaming at the site;
	713	+	(c) May not require that an eligible organization be located at a specific
	714	+	site as a condition of site authorization;
	715	+	(d) May limit the type of games and the number of electronic pull tab
	716	+	devices or tables for the game of twenty-one per site, and the number
	717	+	of sites upon which a licensed organization may conduct games within
	718	+	the city or county; and
	719	+	(e) May charge a one hundred dollar fee for a site authorization.
	720	+	(2) This subsection may not be construed to prohibit a governing body from:
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	753	+	(a) Creating and enforcing rules that are more stringent than state law
	754	+	regarding charitable gaming as otherwise permitted in code; or
	755	+	(b) Denying a site authorization for just cause, including, after
	756	+	consultation with the attorney general, a violation of state law or local
	757	+	rules.
	758	+	b. Annually applying for a license from the attorney generalexecutive director before
	759	+	July first on a form prescribed by the attorney generalexecutive director and
	760	+	remitting a one hundred seventy-five dollar license fee for each city or county that
	761	+	approves a site authorization. An organization shall document that it qualifies as
	762	+	an eligible organization. If an organization amends its primary purpose as stated
	763	+	in its articles of incorporation or materially changes its basic character, the
	764	+	organization shall reapply for licensure. The attorney general shallexecutive
	765	+	director:
	766	+	(1) Shall deposit twenty-five dollars of this fee into the charitable gaming
	767	+	technology fund under section 53-06.1-12.4. However, the attorney general
	768	+	may
	769	+	(2) May allow an organization that only conducts a raffle or calcutta in two or
	770	+	more cities or counties to annually apply for a consolidated license and
	771	+	remit a one hundred seventy-five dollar license fee for each city or county in
	772	+	which a site is located. The attorney general shall
	773	+	(3) Shall deposit twenty-five dollars of this fee into the charitable gaming
	774	+	technology fund under section 53-06.1-12.4. An organization shall document
	775	+	that it qualifies as an eligible organization. If an organization amends its
	776	+	primary purpose as stated in its articles of incorporation or materially
	777	+	changes its basic character, the organization shall reapply for licensure. The
	778	+	attorney general may
	779	+	(4) May deny issuance of a license or deny renewal of a license to an eligible
	780	+	organization that has obtained approval of site authorization under
	781	+	subdivision a, if the organization or site is not in compliance with applicable
	782	+	laws and rules.
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	815	+	3.5. A licensed organization or organization that has a permit shall conduct games as
	816	+	follows:
	817	+	a. Only one licensed organization or organization that has a permit may conduct
	818	+	games at an authorized site on a day, except a raffle or a sports pool conducted
	819	+	under a local permit may be conducted for a special occasion by another
	820	+	licensed organization or organization that has a permit when one of these
	821	+	conditions is met:
	822	+	(1) When the area for the raffle or a sports pool is physically separated from the
	823	+	area where games are conducted by the regular organization.
	824	+	(2) Upon request of the regular organization and with the approval of the
	825	+	alcoholic beverage establishment, the regular organization's license or
	826	+	permit is suspended for that specific time of day by the attorney general.
	827	+	b. Except for a temporary site authorized for fourteen or fewer consecutive days for
	828	+	not more than two events per quarter or a licensed organization authorized on or
	829	+	before January 1, 2023, to conduct gaming at more than fifteen sites, a licensed
	830	+	organization, including a closely related organization, may not have more than
	831	+	fifteen sites.
	832	+	c. Games of electronic quick shot bingo, electronic pull tabs, pull tabs,
	833	+	punchboards, twenty-one, paddlewheels, poker, and sports pools may be
	834	+	conducted only during the hours when alcoholic beverages may be dispensed
	835	+	according to applicable regulations of the state, county, or city. Electronic pull
	836	+	tabs must be conducted in a designated area where patrons must be twenty-one
	837	+	years of age or older to enter.
	838	+	d. An organization may not permit a person under twenty-one years of age to
	839	+	directly or indirectly play pull tabs, punchboards, twenty-one, calcuttas, sports
	840	+	pools, paddlewheels, or poker. An organization may not permit an individual
	841	+	under eighteen years of age to directly or indirectly play electronic quick shot
	842	+	bingo. An organization may not permit an individual under eighteen years of age
	843	+	to directly or indirectly play bingo unless the individual is accompanied by an
	844	+	adult, bingo is conducted by an organization that has a permit, or the game's
	845	+	prize structure does not exceed that allowed for a permit.
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	879	+	e. An organization may not install more than ten electronic pull tab devices at a site.
	880	+	f. An organization with more than fifteen licensed sites under subdivision b may not
	881	+	increase its number of sites beyond the number of sites licensed as of January 1,
	882	+	2023.
	883	+	g. An organization conducting gaming at an authorized site on January 1, 2023,
	884	+	may continue to operate gaming, including as provided under subsection 1 of
	885	+	section 53-06.1-06, at the authorized site regardless of whether the authorized
	886	+	site is an alcoholic beverage establishment as defined under section 53-06.1-01.
	887	+	h. For a raffle board, an organization permitted to conduct raffles shall sell the
	888	+	numbered squares on the board for the same price and may sell squares at a site
	889	+	thirty days before the drawing.
	890	+	4.6. A permit, or site authorization and license, must be displayed at a site.
	891	+	5.7. The attorney general mayexecutive director:
	892	+	a. May issue a conditional license to an eligible organization whose regularly issued
	893	+	license has expired or been suspended, revoked, or relinquished. The attorney
	894	+	general shall
	895	+	b. Shall designate the time period for which the conditional license is valid and may
	896	+	impose any conditions.
	897	+	6.8. A governing body or local law enforcement official may inspect a site's gaming
	898	+	equipment and examine or cause to be examined any gaming-related books and
	899	+	records of a licensed organization or organization that has a permit.
	900	+	SECTION 10. AMENDMENT. Section 53-06.1-06 of the North Dakota Century Code is
	901	+	amended and reenacted as follows:
	902	+	53-06.1-06. Persons permitted to conduct games - Equipment.
	903	+	1. No person, except a member, volunteer, an employee of a licensed organization or an
	904	+	organization that has a permit, or an employee of a temporary employment agency
	905	+	who provides services to a licensed organization, may manage, control, or conduct
	906	+	any game. "Member" includes a member of an auxiliary organization. In conducting
	907	+	pull tabs or prize boards through a dispensing device, selling pull tabs through a
	908	+	pull-tab device, selling raffle tickets, or conducting sports pools, the attorney
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	941	+	generalexecutive director may allow an employee of an alcoholic beverage
	942	+	establishment to provide limited assistance to an organization.
	943	+	2. Except when authorized by the attorney generalexecutive director or allowed by the
	944	+	gaming rules, an eligible organization shall procure gaming equipment only from a
	945	+	licensed distributor. No equipment or prizes may be purchased at an excessive price.
	946	+	3. An organization and distributor shall maintain complete, accurate, and legible bank
	947	+	and accounting records in North Dakota for all gaming activity and establish a system
	948	+	of internal control as prescribed by rule. The governing board of an eligible
	949	+	organization is primarily responsible and may be held accountable for the proper
	950	+	determination and use of net proceeds. If an organization does not renew its license or
	951	+	its license is denied, relinquished, or revoked and it has not disbursed all of its net
	952	+	proceeds, the organization shall file an action plan as prescribed by the gaming rules
	953	+	with the attorney general.
	954	+	4. The value of a merchandise prize awarded in a game is its retail price, excluding sales
	955	+	tax.
	956	+	5. A person is restricted from being involved in gaming and the attorney generalexecutive
	957	+	director shall conduct a criminal history record check as follows:
	958	+	a. (1) A person who has pled guilty to or been found guilty of a felony offense as
	959	+	defined by the laws of this state, other states, or the federal government, or
	960	+	has pled guilty to or been found guilty of a violation of this chapter, a gaming
	961	+	rule, chapter 12.1-28 or 53-06.2, or offenses of other states or the federal
	962	+	government equivalent to offenses defined in these chapters, regardless of
	963	+	whether the person has completed or received a deferred imposition of
	964	+	sentence or suspended sentence, may not be a licensed distributor, be an
	965	+	investor in or board member or consultant to a licensed distributor, or be
	966	+	employed by a licensed distributor, and may not be employed by a licensed
	967	+	organization to conduct games, for five years from the date of conviction,
	968	+	release from incarceration, or expiration of parole or probation, whichever is
	969	+	the latest.
	970	+	(2) Paragraph 1 does not apply if the offense to which the person pled guilty or
	971	+	has been found guilty is a misdemeanor and the person has received a
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	1005	+	deferred imposition of sentence and has fully complied with the terms of the
	1006	+	deferral.
	1007	+	b. A person who has pled guilty to or been found guilty of a misdemeanor offense in
	1008	+	violation of section 6-08-16.1 or chapter 12.1-06, 12.1-23, or 12.1-24 or offenses
	1009	+	of other states, the federal government, or a municipality equivalent to these
	1010	+	offenses, regardless if the person has completed or received a suspended
	1011	+	sentence, may not be a licensed distributor or be employed by a licensed
	1012	+	distributor, and may not be employed by a licensed organization to conduct
	1013	+	games, for two years from the date of conviction, release from incarceration, or
	1014	+	expiration of parole or probation, whichever is the latest, unless the person has
	1015	+	received a deferred imposition of sentence and has fully complied with the terms
	1016	+	of the deferral.
	1017	+	c. Unless an employee is exempt by the gaming rules or attorney generalexecutive
	1018	+	director , the attorney generalexecutive director shall conduct a criminal history
	1019	+	record check of each employee of a licensed organization or distributor and
	1020	+	charge a fee prescribed by section 12-60-16.9. The fee may be waived by the
	1021	+	attorney general if a federal agency or local law enforcement agency has done a
	1022	+	record check. The attorney generalexecutive director may require advance
	1023	+	payment of any additional fee necessary to pay the cost of a record check of a
	1024	+	person for whom adequate background information sources are not readily
	1025	+	available. The advance payment must be placed in the attorney general's refunda
	1026	+	dedicated fund. The unused funds must be returned to the person within thirty
	1027	+	days of the conclusion of the record check. Unless a federal or local law
	1028	+	enforcement agency conducts the record check, the attorney generalexecutive
	1029	+	director shall notify the organization or distributor of the result. The attorney
	1030	+	generalexecutive director shall keep the information confidential except in the
	1031	+	proper administration of this chapter or any gaming rule or to provide to an
	1032	+	authorized law enforcement agency.
	1033	+	6. For a site where bingo is the primary game or a site that is leased by a licensed
	1034	+	organization, the organization may not pay bingo prizes in which the total bingo prizes
	1035	+	exceed total bingo gross proceeds for a period prescribed by gaming rule. However, if
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	1069	+	bingo is the primary game at the site, a bingo prize that equals or exceeds ten
	1070	+	thousand dollars is excluded from the total of the bingo prizes.
	1071	+	7. A city or county may require a person conducting games to obtain a local work permit,
	1072	+	charge a reasonable fee, and conduct a criminal history record check.
	1073	+	SECTION 11. AMENDMENT. Section 53-06.1-10 of the North Dakota Century Code is
	1074	+	amended and reenacted as follows:
	1075	+	53-06.1-10. Twenty-one.
	1076	+	The organization shall provide playing chips of various denominations to players although
	1077	+	the organization may use a metal coin rather than a fifty-cent chip. The organization may set the
	1078	+	minimum limit for the original wager at not more than three dollars on one active table. If there is
	1079	+	more than one active table at a site, the organization may set a higher minimum wager on
	1080	+	additional tables. The maximum limit per wager may be set by the organization at not more than
	1081	+	twenty-five dollars. Wagers in increments of one dollar must be accepted between the posted
	1082	+	minimum and the posted maximum limit. A player may not play more than two hands at the
	1083	+	same time. Only the player actually playing a hand may place a wager on that hand. Each
	1084	+	player plays the player's hand against the dealer's hand. Any requirement to pool tips is within
	1085	+	the sole discretion of each organization. Except for a site that has twenty-one gross proceeds
	1086	+	averaging less than ten thousand dollars per quarter, an organization may not conduct
	1087	+	twenty-one at the site with wagers exceeding two dollars unless the organization has first
	1088	+	installed video surveillance equipment as required by rules and the equipment is approved by
	1089	+	the attorney generalexecutive director.
	1090	+	SECTION 12. AMENDMENT. Section 53-06.1-11 of the North Dakota Century Code is
	1091	+	amended and reenacted as follows:
	1092	+	53-06.1-11. Gross proceeds - Allowable expenses - Rent limits.
	1093	+	1. All money received from games must be accounted for according to the gaming rules.
	1094	+	Gaming activity for a quarter must be reported on a tax return form prescribed by the
	1095	+	attorney generalexecutive director. Unless otherwise authorized by the attorney
	1096	+	generalexecutive director, the purchase price of a merchandise prize must be paid
	1097	+	from a gaming bank account by check. A cash prize paid by check must be paid from a
	1098	+	gaming bank account. No check drawn from a gaming or trust bank account may be
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	1131	+	payable to "cash" or a fictitious payee. A cash prize that exceeds an amount set by
	1132	+	rule must be accounted for by a receipt prescribed by the gaming rules.
	1133	+	2. Allowable expenses may be deducted from adjusted gross proceeds. The allowable
	1134	+	expense limit is sixty percent of the adjusted gross proceeds per quarter.
	1135	+	3. Cash shorts incurred in games and interest and penalty are classified as expenses.
	1136	+	4. For a site where bingo is conducted:
	1137	+	a. If bingo is the primary game, the monthly rent must be reasonable.
	1138	+	b. If bingo is not the primary game, but is conducted with twenty-one, paddlewheels,
	1139	+	or pull tabs, no additional rent is allowed.
	1140	+	5. For a site where bingo is not the primary game:
	1141	+	a. If twenty-one or paddlewheels is conducted, the monthly rent may not exceed
	1142	+	two hundred dollars multiplied by the necessary number of tables based on
	1143	+	criteria prescribed by gaming rule. For each twenty-one table with a wager
	1144	+	greater than five dollars, an additional amount up to one hundred dollars may be
	1145	+	added to the monthly rent. If pull tabs is also conducted involving only a jar bar,
	1146	+	the monthly rent for pull tabs may not exceed an additional one hundred
	1147	+	seventy-five dollars. If pull tabs is conducted involving only a dispensing device
	1148	+	or a jar bar and dispensing device, the monthly rent for pull tabs may not exceed
	1149	+	an additional three hundred twenty-five dollars.
	1150	+	b. If twenty-one and paddlewheels are not conducted but pull tabs is conducted
	1151	+	involving either a jar bar or dispensing device, the monthly rent may not exceed
	1152	+	four hundred dollars.
	1153	+	c. If pull tabs is conducted using one or more electronic pull tab devices, the
	1154	+	monthly rent may not exceed one hundred seventy-five dollars per machine for
	1155	+	the first five machines in the same venue. For each additional machine in the
	1156	+	same venue beyond five, the monthly rent may not exceed seventy-five dollars
	1157	+	per machine up to a maximum of one thousand two hundred fifty dollars per
	1158	+	month for all electronic pull tab devices in a single venue.
	1159	+	SECTION 13. AMENDMENT. Section 53-06.1-11.2 of the North Dakota Century Code is
	1160	+	amended and reenacted as follows:
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	1193	+	53-06.1-11.2. Charitable gaming operating fund - Attorney general - State treasurer -
	1194	+	Allocations - Transfer to the general fund.
	1195	+	1. There is created in the state treasury the charitable gaming operating fund. The fund
	1196	+	consists of all gaming taxes, monetary fines, and interest and penalties collected
	1197	+	under this chapter.
	1198	+	2. Excluding moneys in the charitable gaming operating fund appropriated by the
	1199	+	legislative assembly for administrative and operating costs associated with charitable
	1200	+	gaming, the attorney generalexecutive director shall allocate remaining moneys in the
	1201	+	charitable gaming operating fund on a quarterly basis as follows:
	1202	+	a. Ten thousand dollars to the gambling disorder prevention and treatment fund.
	1203	+	b. Subject to legislative appropriations, five percent of the total moneys deposited in
	1204	+	the charitable gaming operating fund to cities and counties in proportion to the
	1205	+	taxes collected under section 53-06.1-12 from licensed organizations conducting
	1206	+	games within each city, for sites within city limits, or within each county, for sites
	1207	+	outside city limits. If a city or county allocation is less than two hundred dollars,
	1208	+	that city or county is not entitled to receive a payment for the quarter and the
	1209	+	undistributed amount must be included in the total amount to be distributed to
	1210	+	other cities and counties for the quarter.
	1211	+	3. On or before June thirtieth of each odd-numbered year, the attorney generalexecutive
	1212	+	director shall certify to the state treasurer the amount of accumulated funds in the
	1213	+	charitable gaming operating fund which exceed the amount appropriated by the
	1214	+	legislative assembly for administrative and operating costs associated with charitable
	1215	+	gaming for the subsequent biennium. The state treasurer shall transfer the certified
	1216	+	amount from the charitable gaming operating fund to the general fund prior to the end
	1217	+	of each biennium.
	1218	+	SECTION 14. AMENDMENT. Section 53-06.1-12 of the North Dakota Century Code is
	1219	+	amended and reenacted as follows:
	1220	+	53-06.1-12. Gaming tax - Deposits. (Retroactive application - See note)
	1221	+	1. Except as provided in subsection 2, a gaming tax is imposed on the total adjusted
	1222	+	gross proceeds received by a licensed organization in a quarter and the tax must be
	1223	+	computed and paid to the attorney generalexecutive director on a quarterly basis on
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	1257	+	the tax return. This tax must be paid from adjusted gross proceeds and is not part of
	1258	+	the allowable expenses. For a licensed organization with adjusted gross proceeds:
	1259	+	a. Not exceeding fifty thousand dollars the tax is one percent of adjusted gross
	1260	+	proceeds.
	1261	+	b. Exceeding fifty thousand dollars the tax is five hundred dollars plus twelve
	1262	+	percent of adjusted gross proceeds exceeding fifty thousand dollars.
	1263	+	2. For a licensed organization permitted to conduct raffles in this state with adjusted
	1264	+	gross proceeds exceeding fifty thousand dollars, a gaming tax of one percent of gross
	1265	+	proceeds is imposed on the total gross proceeds received by the licensed organization
	1266	+	from raffles in a quarter. The tax must be computed and paid to the attorney
	1267	+	generalexecutive director on a quarterly basis on the tax return. The tax must be paid
	1268	+	from adjusted gross proceeds and is not part of the allowable expenses.
	1269	+	3. The tax must be paid to the attorney generalexecutive director at the time tax returns
	1270	+	are filed.
	1271	+	4. The attorney generalexecutive director shall deposit gaming taxes, monetary fines,
	1272	+	and interest and penalties collected in the charitable gaming operating fund.
	1273	+	SECTION 15. AMENDMENT. Section 53-06.1-12.3 of the North Dakota Century Code is
	1274	+	amended and reenacted as follows:
	1275	+	53-06.1-12.3. Interest, penalty, and estimated tax.
	1276	+	1. Assessment of interest. If a licensed organization does not pay tax due by the original
	1277	+	date of a tax return, or if additional tax is due based on an audit or math verification of
	1278	+	the return and it is not paid by the original due date of the return, the organization shall
	1279	+	pay interest on the tax at the rate of twelve percent per annum computed from the
	1280	+	original due date of the return through the date the tax is paid.
	1281	+	2. Assessment of penalty. If a licensed organization does not pay tax due on a tax return
	1282	+	by the original or extended due date of the return, or if additional tax is due based on
	1283	+	an audit or math verification of the return and it is not paid by the original or extended
	1284	+	due date of the return, the organization shall pay a penalty of five percent of the tax, or
	1285	+	twenty-five dollars, whichever is greater. If an organization does not file a tax return by
	1286	+	the original or extended due date of the return, the organization shall pay a penalty of
	1287	+	five percent of the tax, or twenty-five dollars, whichever is greater, for each month or
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	1321	+	fraction of a month during which the return is not filed, not exceeding a total of
	1322	+	twenty-five percent.
	1323	+	3. The attorney generalexecutive director may require a licensed organization to make
	1324	+	monthly estimated gaming tax payments if the attorney generalexecutive director
	1325	+	determines that the organization is in poor financial condition. If an organization fails to
	1326	+	pay any tax or estimated tax, interest, or penalty by the original due date or date set by
	1327	+	the attorney general, the attorney generalexecutive director, the executive director
	1328	+	may bring court action to collect it and may suspend the organization's license. The
	1329	+	attorney generalexecutive director may for good cause waive all or part of any interest
	1330	+	or penalty and may waive any minimal tax.
	1331	+	4. If a licensed organization has failed to file a tax return, has been notified by the
	1332	+	attorney generalexecutive director of the delinquency, and refuses or neglects within
	1333	+	thirty days after the notice to file a proper return, the attorney generalexecutive director
	1334	+	shall determine the adjusted gross proceeds and gaming tax due according to the best
	1335	+	information available and assess the tax at not more than double the amount. Interest
	1336	+	and penalty also must be assessed.
	1337	+	5. The attorney generalexecutive director may authorize a licensed organization to pay
	1338	+	any delinquent tax, interest, or penalty on an installment plan and may set any
	1339	+	qualifying conditions.
	1340	+	SECTION 16. AMENDMENT. Section 53-06.1-12.4 of the North Dakota Century Code is
	1341	+	amended and reenacted as follows:
	1342	+	53-06.1-12.4. Charitable gaming technology fund - Continuing appropriation.
	1343	+	There is created in the state treasury a special fund known as the charitable gaming
	1344	+	technology fund. The fund consists of all moneys deposited in the fund pursuant to this chapter.
	1345	+	Moneys in the fund are appropriated to the attorney generalexecutive director on a continuing
	1346	+	basis and may be used only for contracting for and purchasing equipment and software for a
	1347	+	charitable gaming technology system, training employees to operate the system, and
	1348	+	maintaining and updating the system.
	1349	+	SECTION 17. AMENDMENT. Section 53-06.1-14 of the North Dakota Century Code is
	1350	+	amended and reenacted as follows:
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	1383	+	53-06.1-14. Distributors and manufacturers.
	1384	+	1. A manufacturer of pull tabs, bingo cards, electronic quick shot bingo systems and
	1385	+	devices, or bingo card marking devices shall apply annually for a license and pay a
	1386	+	license fee of five thousand five hundred dollars. A manufacturer of electronic pull tab
	1387	+	systems and devices shall apply annually for a license and pay a license fee of ten
	1388	+	thousand dollars. The attorney generalexecutive director shall deposit one thousand
	1389	+	five hundred dollars of these fees into the charitable gaming technology fund under
	1390	+	section 53-06.1-12.4. A manufacturer of paper pull tab dispensing devices shall apply
	1391	+	annually for a license and pay a license fee of one thousand five hundred dollars. The
	1392	+	attorney generalexecutive director shall deposit five hundred dollars of this fee into the
	1393	+	charitable gaming technology fund under section 53-06.1-12.4. A manufacturer of
	1394	+	electronic raffle systems shall apply annually for a license and pay a license fee of one
	1395	+	thousand dollars. The attorney generalexecutive director shall deposit five hundred
	1396	+	dollars of this fee into the charitable gaming technology fund under section
	1397	+	53-06.1-12.4. A distributor shall apply annually for a license and pay a license fee of
	1398	+	two thousand dollars. The attorney generalexecutive director shall deposit five
	1399	+	hundred dollars of this fee into the charitable gaming technology fund under section
	1400	+	53-06.1-12.4. Application must be made before the first day of April in each year on a
	1401	+	form prescribed by the attorney generalexecutive director.
	1402	+	2. A licensed distributor may not sell, market, or distribute gaming equipment except to a
	1403	+	licensed distributor, licensed organization, organization that has a permit, or other
	1404	+	person authorized by gaming rule or the attorney generalexecutive director. A
	1405	+	manufacturer of a pull tab dispensing device, pull tab, electronic pull tab device, bingo
	1406	+	card marking device, bingo card, or fifty-fifty raffle system may only sell, market, or
	1407	+	distribute the manufacturer's pull tab dispensing device and processing chip encoded
	1408	+	with proprietary software, pull tab, electronic pull tab device, bingo card marking
	1409	+	device, bingo card, or fifty-fifty raffle system to a licensed distributor. A licensed
	1410	+	distributor may purchase or acquire a pull tab dispensing device and processing chip
	1411	+	encoded with proprietary software, pull tab, electronic pull tab device, bingo card
	1412	+	marking device, bingo card, or fifty-fifty raffle system only from a licensed
	1413	+	manufacturer or licensed distributor. However, a distributor may purchase or acquire a
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	1447	+	used pull tab dispensing device or electronic pull tab device from a licensed
	1448	+	organization. A distributor may not duplicate a manufacturer's processing chip
	1449	+	encoded with proprietary software. No gaming equipment or prize may be sold or
	1450	+	leased at an excessive price.
	1451	+	3. A licensed distributor shall affix a North Dakota gaming stamp to each deal of pull
	1452	+	tabs, raffle board, punchboard, sports pool board, calcutta board, and series of
	1453	+	paddlewheel ticket cards sold or otherwise provided to a licensed organization or
	1454	+	organization that has a permit and shall purchase the stamps from the attorney
	1455	+	generalexecutive director for thirty-five cents each. Ten cents of each stamp sold by
	1456	+	the attorney generalexecutive director, up to thirty-six thousand dollars per biennium,
	1457	+	must be credited to the attorney general'sexecutive director's operating fund to defray
	1458	+	the costs of issuing and administering the gaming stamps. If an organization hosts an
	1459	+	event with a raffle board and only sells numbered squares on the day of event, the
	1460	+	organization is exempt from the requirements under this subsection.
	1461	+	4. A licensed organization, organization that has a permit, licensed manufacturer, or
	1462	+	North Dakota wholesaler of liquor or alcoholic beverages may not be a distributor or
	1463	+	stockholder of a distributor. A distributor may not be a stockholder of a manufacturer.
	1464	+	5. In addition to the license fee, the attorney generalexecutive director may require
	1465	+	advance payment of any fee necessary to pay the cost of a record check of an
	1466	+	applicant according to subdivision c of subsection 5 of section 53-06.1-06.
	1467	+	6. A licensed manufacturer may not refuse to sell deals of pull tabs, paper bingo cards, or
	1468	+	gaming equipment to a licensed distributor unless:
	1469	+	a. A specific deal of pull tabs is sold on an exclusive basis;
	1470	+	b. The manufacturer does not sell deals of pull tabs, paper bingo cards, or gaming
	1471	+	equipment to any distributor in the state;
	1472	+	c. A gaming law or rule prohibits the sale;
	1473	+	d. The distributor has not provided the manufacturer with proof of satisfactory credit
	1474	+	or is delinquent on any payment owed to the manufacturer; or
	1475	+	e. The distributor has not met the manufacturer's standard minimum order quantity
	1476	+	and freight terms.
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247	1509		SECTION 2. AMENDMENT. Section 53-06.1-15.1 of the North Dakota Century Code is
248	1510		amended and reenacted as follows:
249		-	53-06.1-15.1. Authority of the attorney ~~general~~ - Duties.
250		-	1.The attorney ~~general~~ may:
	1511	+	53-06.1-15.1. Authority of the attorney generalexecutive director - Duties .
	1512	+	1. The attorney generalexecutive director may:
251	1513		1.a.Inspect all sites in which gaming is conducted or inspect all premises where
252		-	gaming equipment is manufactured or distributed. The attorney general may
253		-	require a licensed manufacturer to reimburse the attorney general for the
254		-	reasonable actual cost of transportation, lodging, meals, and incidental expenses
255		-	incurred in inspecting the manufacturer's facility.
	1514	+	gaming equipment is manufactured or distributed. The attorney generalexecutive
	1515	+	director may require a licensed manufacturer to reimburse the attorney
	1516	+	generalexecutive director for the reasonable actual cost of transportation,
	1517	+	lodging, meals, and incidental expenses incurred in inspecting the manufacturer's
	1518	+	facility.
256	1519		2.b.Inspect all gaming equipment and supplies.
257	1520		3.c.Seize, remove, or impound any gaming equipment, supplies, games, or books
258	1521		and records for the purpose of examination and inspection.
259	1522		4.d.Demand access to and inspect, examine, photocopy, and audit all books and
260	1523		records of applicants, organizations, lessors, manufacturers, distributors, and
261	1524		affiliated companies concerning any income, expense, or use of net proceeds,
262	1525		and determine compliance with this chapter or gaming rules.
263	1526		5.e.Permit the commissioner or proper representative of the internal revenue service
264	1527		of the United States to inspect a tax return or furnish a copy of the tax return, or
265	1528		information concerning any item contained in the return, or disclosed by any audit
266	1529		or investigation report of the gaming activity of any organization or player, or
267	1530		recordkeeping information. However, information cannot be disclosed to the
268		-	extent that the attorney general determines that the disclosure would identify a
269		-	confidential informant or seriously impair any civil or criminal investigation.
270		-	Except when directed by judicial order, or for pursuing civil or criminal charges
271		-	regarding a violation of this chapter or a gaming rule, or as is provided by law, the
272		-	attorney general may not divulge nor make known, to any person, any income or
273		-	expense item contained in any tax return or disclosed by an audit or investigative
274		-	report of any taxpayer provided to the attorney general by the internal revenue
275		-	service.
276		-	f.At any time within three years after any amount of fees, monetary fine, interest,
277		-	penalty, or tax required to be paid under this chapter becomes due, bring a civil
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311		-	action to collect the amount due. However, if for any reason there is a change in
312		-	adjusted gross proceeds or tax liability by an amount which is in excess of
313		-	twenty - five percent of the amount of adjusted gross proceeds or tax liability
314		-	originally reported on the tax return, any additional tax determined to be due may
315		-	be assessed within six years after the due date of the tax return, or six years after
316		-	the tax return was filed, whichever period expires later. An action may be brought
317		-	although the person owing the fees or tax is not presently licensed.
318		-	g.Institute an action in any district court for declaratory or injunctive relief against a
319		-	person, whether or not the person is a gaming licensee, as the attorney general
320		-	deems necessary to prevent noncompliance with this chapter or gaming rules.
321		-	2.The attorney general shall refer to the gaming commission for review any evidence
322		-	that a person violated this chapter or a gaming rule, which could result in the
323		-	revocation or suspension of a site authorization or an organization's gaming license or
324		-	the imposition of a monetary fine of one thousand dollars or more, unless this chapter
325		-	provides the attorney general authority regarding the violation, including a violation
326		-	related to tax - related delinquency, permits, licensure, and site authorization.
	1531	+	extent that the attorney generalexecutive director determines that the disclosure
	1532	+	would identify a confidential informant or seriously impair any civil or criminal
	1533	+	investigation. Except when directed by judicial order, or for pursuing civil or
	1534	+	criminal charges regarding a violation of this chapter or a gaming rule, or as is
	1535	+	provided by law, the attorney generalexecutive director may not divulge nor make
	1536	+	known, to any person, any income or expense item contained in any tax return or
	1537	+	disclosed by an audit or investigative report of any taxpayer provided to the
	1538	+	attorney generalexecutive director by the internal revenue service.
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	1571	+	2. The attorney general shall refer any evidence of a violation of law or rule to the gaming
	1572	+	commission for review , unless this chapter provides the attorney general authority
	1573	+	regarding the violation, including a violation related to tax - related delinquency , permits,
	1574	+	licensure, and site authorization. A decision made by the attorney general under this
	1575	+	chapter may be appealed to the gaming commission.
327	1576		6. Require a representative of a licensed organization or distributor to participate in
328	1577		training or for good cause prohibit the person from being involved in gaming as an
329		-	employee or volunteer. The attorney general may for good cause prohibit a person
330		-	from providing personal or business services to an organization or distributor.
	1578	+	employee or volunteer. The attorney generalexecutive director may for good cause
	1579	+	prohibit a person from providing personal or business services to an organization or
	1580	+	distributor.
331	1581		7. Prohibit a person from playing games if the person violates this chapter, chapter
332	1582		12.1-28 or 53-06.2, or a gaming rule.
333	1583		8. Require or authorize an organization to pay or prohibit an organization from paying a
334	1584		bingo, electronic quick shot bingo, or raffle prize to a player on a dispute or based on a
335		-	factual determination or a hearing by the attorney ~~general~~.
	1585	+	factual determination or a hearing by the attorney generalexecutive director.
336	1586		9. Based on reasonable ground or written complaint, suspend, deny, or revoke an
337	1587		organization's permit or an organization's, distributor's, or manufacturer's application
338	1588		or license for violation, by the organization, distributor, or manufacturer or any officer,
339	1589		director, agent, member, or employee of the organization, distributor, or manufacturer,
340	1590		of this chapter or any gaming rule.
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373	1591		10. Impose a monetary fine on a licensed organization, organization that has a permit,
374	1592		distributor, manufacturer, or third-party business operating gaming and working as an
375	1593		agent of the charity for failure to comply with this chapter or any gaming rule. The
376	1594		monetary fine for each violation by an organization is a minimum of twenty-five dollars
377	1595		and may not exceed two percent of the organization's average quarterly gross
378	1596		proceeds, or five thousand dollars, whichever is greater. The monetary fine for each
379	1597		violation by a distributor is a minimum of one hundred dollars and may not exceed five
380	1598		thousand dollars. The monetary fine for each violation by a manufacturer is a minimum
381	1599		of five hundred dollars and may not exceed two hundred fifty thousand dollars. This
382	1600		fine may be in addition to or in place of a license suspension or revocation.
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383	1633		11. At any time within three years after any amount of fees, monetary fine, interest,
384	1634		penalty, or tax required to be paid pursuant to this chapter becomes due, bring a civil
385	1635		action to collect the amount due. However, if for any reason there is a change in
386	1636		adjusted gross proceeds or tax liability by an amount which is in excess of twenty-five
387	1637		percent of the amount of adjusted gross proceeds or tax liability originally reported on
388	1638		the tax return, any additional tax determined to be due may be assessed within six
389	1639		years after the due date of the tax return, or six years after the tax return was filed,
390	1640		whichever period expires later. An action may be brought although the person owing
391	1641		the fees or tax is not presently licensed.
392	1642		12. Institute an action in any district court for declaratory or injunctive relief against a
393		-	person, whether or not the person is a gaming licensee, as the attorney general
394		-	deems necessary to prevent noncompliance with this chapter or gaming rules.
395		-	13.For good cause, require a licensed organization to use the attorney general's
396		-	recordkeeping system for any or all games.
397		-	3.A person may appeal an order or action taken by the attorney general under this
398		-	chapter to the office of administrative hearings to be considered by an administrative
399		-	law judge according to the procedures for a hearing under chapter 28 - 32.
400		-	Notwithstanding any other law, the hearing must be held within thirty days of the date
401		-	the appeal is filed. The office of administrative hearings shall create a form to file an
402		-	appeal under this subsection and publish the form on its website. An order of the
403		-	attorney general must be stayed pending the determination of the appeal.
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	1643	+	person, whether or not the person is a gaming licensee, as the attorney
	1644	+	generalexecutive director deems necessary to prevent noncompliance with this
	1645	+	chapter or gaming rules.
	1646	+	13. For good cause, require a licensed organization to use the attorney general'sexecutive
	1647	+	director's recordkeeping system for any or all games.
	1648	+	SECTION 19. AMENDMENT. Section 53-06.2-01 of the North Dakota Century Code is
	1649	+	amended and reenacted as follows:
	1650	+	53-06.2-01. Definitions.
	1651	+	As used in this chapter:
	1652	+	1. "Breeders' fund" means a fund, administered by the commission, established to
	1653	+	financially reward breeders or owners of North Dakota-bred horses to be paid in
	1654	+	accordance with rules as approved by the commission.
	1655	+	2. "Certificate system" means the system of betting described in section 53-06.2-10.
	1656	+	3. "Charitable organization" means a nonprofit organization operated for the relief of
	1657	+	poverty, distress, or other conditions of public concern in this state and has been so
	1658	+	engaged in this state for at least two years.
	1659	+	4. "Civic and service club" means a branch, lodge, or chapter of a nonprofit national or
	1660	+	state organization that is authorized by its written constitution, charter, articles of
	1661	+	incorporation, or bylaws to engage in a civic or service purpose in this state and has
	1662	+	so existed in this state for at least two years. The term includes a similar local
	1663	+	nonprofit organization, not affiliated with a state or national organization, which is so
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	1697	+	recognized by a resolution adopted by the governing body of the local jurisdiction in
	1698	+	which the organization conducts its principal activities, and which has existed in this
	1699	+	state for at least two years.
	1700	+	5. "Commission" means the North Dakota racinggaming commission.
	1701	+	6. "Executive director" means the executive director of the gaming commission.
	1702	+	7. "Fraternal organization" means a nonprofit organization in this state, which is a
	1703	+	branch, lodge, or chapter of a national or state organization and exists for the common
	1704	+	business, brotherhood, or other interests of its members, and has so existed in this
	1705	+	state for two years. The term does not include a college or high school fraternity.
	1706	+	8. "Local jurisdiction" means, with respect to a site inside the city limits of a city, that city,
	1707	+	and with respect to a site not inside the city limits of a city, the county in which the site
	1708	+	is located.
	1709	+	9. "Other public-spirited organization" means a nonprofit organization recognized by the
	1710	+	governing body of the appropriate local jurisdiction by resolution as public-spirited and
	1711	+	eligible under this chapter.
	1712	+	10. "Purse fund" means a fund, administered by the commission, established to
	1713	+	supplement and improve purses offered at racetracks within the state.
	1714	+	11. "Racing" means live or simulcast horse racing under the certificate system or
	1715	+	simulcast dog racing under the certificate system.
	1716	+	12. "Racing promotion fund" means a fund administered by the commission established to
	1717	+	assist in improving and upgrading racetracks in the state, promoting horse racing in
	1718	+	the state, and developing new racetracks in the state as necessary and approved by
	1719	+	the commission.
	1720	+	13. "Religious organization" means a nonprofit organization, church, body of
	1721	+	communicants, or group gathered in common membership for mutual support and
	1722	+	edification in piety, worship, and religious observances, and which has been so
	1723	+	gathered or united in this state for at least two years.
	1724	+	14. "Veterans' organization" means a congressionally chartered organization in this state,
	1725	+	or a branch, lodge, or chapter of a nonprofit national or state organization in this state,
	1726	+	the membership of which consists of individuals who were members of the armed
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	1759	+	services or forces of the United States, and which has so been in existence in this
	1760	+	state for at least two years.
	1761	+	SECTION 20. AMENDMENT. Section 53-06.2-04 of the North Dakota Century Code is
	1762	+	amended and reenacted as follows:
	1763	+	53-06.2-04. Duties of commissionthe executive director.
	1764	+	The commissionexecutive director shall:
	1765	+	1. Provide for racing under the certificate system.
	1766	+	2. Set racing dates.
	1767	+	3. Adopt rules for effectively preventing the use of any substance, compound items, or
	1768	+	combinations of any medicine, narcotic, stimulant, depressant, or anesthetic which
	1769	+	could alter the normal performance of a racehorse, unless specifically authorized by
	1770	+	the commission.
	1771	+	4. Supervise and check the making of pari-mutuel pools, pari-mutuel machines, and
	1772	+	equipment at all races held under the certificate system.
	1773	+	5. Adopt rules governing, restricting, or regulating bids on licensees' concessions and
	1774	+	leases on equipment.
	1775	+	6. Consider all proposed extensions, additions, or improvements to the buildings,
	1776	+	stables, or tracks on property owned or leased by a licensee.
	1777	+	7. Exclude from racetracks or simulcast pari-mutuel wagering facilities any person who
	1778	+	violates any rule of the commission or any law.
	1779	+	8. Determine the cost of inspections performed under subsection 3 of section 53-06.2-05
	1780	+	and require the licensee to pay that cost.
	1781	+	9. Report biennially to the legislative council regarding the operation of the commission.
	1782	+	10. Provide notice to the North Dakota horsemen's council of meetings held by the
	1783	+	commission and permit the North Dakota horsemen's council to participate in the
	1784	+	meetings through placement of items on the agenda.
	1785	+	11. Complete, distribute, and post on the commission's website the minutes of each
	1786	+	commission meeting within thirty days of that meeting or before the next meeting of
	1787	+	the commission, whichever occurs first.
	1788	+	SECTION 21. AMENDMENT. Section 53-06.2-04.1 of the North Dakota Century Code is
	1789	+	amended and reenacted as follows:
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	1823	+	53-06.2-04.1. North Dakota-bred registry.
	1824	+	The commissionexecutive director shall provide for registration of a North Dakota-bred
	1825	+	horse for qualification for breeders' fund awards or purse supplements. The administrative cost
	1826	+	must be paid from the breeders' fund.
	1827	+	SECTION 22. AMENDMENT. Section 53-06.2-07 of the North Dakota Century Code is
	1828	+	amended and reenacted as follows:
	1829	+	53-06.2-07. Issuance of licenses - Applications.
	1830	+	1. On compliance by an applicant with this chapter and the approval of the attorney
	1831	+	generalexecutive director, the commission may issue a license to conduct races. The
	1832	+	attorney generalexecutive director may not grant a license denied by the commission.
	1833	+	2. An application for a license to conduct a racing meet must be signed under oath and
	1834	+	filed with the commission. The application must contain at least the following:
	1835	+	a. The name and post-office address of the applicant.
	1836	+	b. The location of the racetrack and whether it is owned or leased. If the racetrack is
	1837	+	leased, a copy of the lease must be included.
	1838	+	c. A statement of the applicant's previous history and association sufficient to
	1839	+	establish that the applicant is an eligible organization.
	1840	+	d. The time, place, and number of days the racing meet is proposed to be
	1841	+	conducted.
	1842	+	e. The type of racing to be conducted.
	1843	+	f. Other information the commission requires.
	1844	+	3. At least thirty days before the commission issues or renews a license to conduct
	1845	+	races, the applicant shall deliver a complete copy of the application to the local
	1846	+	jurisdiction governing body. The application to the commission must include a
	1847	+	certificate verified by a representative of the applicant, indicating delivery of the
	1848	+	application copy to the governing body. If the governing body of the local jurisdiction
	1849	+	adopts a resolution disapproving the application for license or renewal and so informs
	1850	+	the executive director within thirty days of receiving a copy of the application, the
	1851	+	license to conduct races may not be issued or renewed.
	1852	+	SECTION 23. AMENDMENT. Section 53-06.2-10.1 of the North Dakota Century Code is
	1853	+	amended and reenacted as follows:
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	1887	+	53-06.2-10.1. Simulcast wagering.
	1888	+	In addition to racing under the certificate system, as authorized by this chapter, and
	1889	+	conducted upon the premises of a racetrack, simulcast pari-mutuel and account wagering may
	1890	+	be conducted in accordance with this chapter or rules adopted by the commission under this
	1891	+	chapter in accordance with chapter 28-32. Any organization qualified under section 53-06.2-06
	1892	+	to conduct racing may make written application to the commission for the conduct of simulcast
	1893	+	pari-mutuel and account wagering on races held at licensed racetracks inside the state or
	1894	+	racetracks outside the state, or both. Licensure of service providers, totalizator companies, site
	1895	+	operators, or organizations applying to conduct or conducting simulcast or account wagering
	1896	+	must be approved by the attorney generalexecutive director. The attorney generalexecutive
	1897	+	director may not grant a license denied by the commission. Notwithstanding any other provision
	1898	+	of this chapter, the commission may authorize any licensee to participate in interstate or
	1899	+	international combined wagering pools with one or more other racing jurisdictions. Anytime that
	1900	+	a licensee participates in an interstate or international combined pool, the licensee, as
	1901	+	prescribed by the commission, may adopt the take-out of the host jurisdiction or facility. The
	1902	+	commission may permit a licensee to use one or more of its races or simulcast programs for an
	1903	+	interstate or international combined wagering pool at locations outside its jurisdiction and may
	1904	+	allow pari-mutuel pools in other states to be combined with pari-mutuel pools in its jurisdiction
	1905	+	for the purpose of establishing an interstate or international combined wagering pool. The
	1906	+	participation by a licensee in a combined interstate or international wagering pool does not
	1907	+	cause that licensee to be considered to be doing business in any jurisdiction other than the
	1908	+	jurisdiction in which the licensee is physically located. Pari-mutuel taxes or commissions may
	1909	+	not be imposed on any amounts wagered in an interstate or international combined wagering
	1910	+	pool other than amounts wagered within this jurisdiction. The certificate system also permits
	1911	+	pari-mutuel wagering to be conducted through account wagering. As used in this section,
	1912	+	"account wagering" means a form of pari-mutuel wagering in which an individual deposits
	1913	+	money in an account and uses the account balance to pay for pari-mutuel wagers. An account
	1914	+	wager made on an account established in this state may only be made through the licensed
	1915	+	simulcast service provider approved by the attorney generalexecutive director and authorized
	1916	+	by the commission to operate the simulcast pari-mutuel wagering system under the certificate
	1917	+	system. The attorney generalexecutive director may not grant a license denied by the
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	1951	+	commission. An account wager may be made in person, by direct telephone communication, or
	1952	+	through other electronic communication in accordance with rules adopted by the
	1953	+	commissionunder this chapter. Breakage for interstate or international combined wagering pools
	1954	+	must be calculated in accordance with the statutes or rules of the host jurisdiction and must be
	1955	+	distributed among the participating jurisdictions in a manner agreed to among the jurisdictions.
	1956	+	SECTION 24. AMENDMENT. Section 53-12.1-01 of the North Dakota Century Code is
	1957	+	amended and reenacted as follows:
	1958	+	53-12.1-01. Definitions.
	1959	+	As used in this chapter:
	1960	+	1. "Director" means the executive director of the lotterythe gaming commission.
	1961	+	2. "Lottery" means the division of the attorney general's office created to operate a
	1962	+	lottery.
	1963	+	3. "Online lottery" means a game linked to a central computer via a telecommunications
	1964	+	network in which the player selects or is assigned a number or symbol or group of
	1965	+	numbers or symbols out of a predetermined range of numbers or symbols and a
	1966	+	winning ticket is determined by chance.
	1967	+	4.3. "Retailer" means a person the lottery has licensed to sell or redeem a ticket.
	1968	+	5.4. "Ticket" means an original and acceptable tangible evidence of play prescribed by the
	1969	+	lottery and produced by a lottery terminal or a properly and validly registered online
	1970	+	play to prove participation in a draw of a game for a chance to win a prize.
	1971	+	SECTION 25. AMENDMENT. Section 53-12.1-02 of the North Dakota Century Code is
	1972	+	amended and reenacted as follows:
	1973	+	53-12.1-02. Lottery - Administration - Line of credit.
	1974	+	1. There is established a division of the attorney general's office called the North Dakota
	1975	+	lottery. Under the supervision of the attorney general, aThe director shall administer
	1976	+	the lottery as provided in this chapter. The director shall consider the sensitive nature
	1977	+	of the lottery, promote games, and ensure the integrity, security, and fairness of the
	1978	+	lottery's operation. The lotterygaming commission is solely responsible for the
	1979	+	management and control over the operation of itslottery games.
	1980	+	2. The attorney general's officegaming commission may arrange a short-term line of
	1981	+	credit with the Bank of North Dakota should lottery funds on hand be insufficient to
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	2015	+	meet an immediate major prize obligation. The line of credit is limited to the amount of
	2016	+	each prize of one hundred thousand dollars or more that relates to prize funds known
	2017	+	to be due and forthcoming to the lottery from other government-authorized lotteries
	2018	+	through the multistate lottery association. However, the line of credit may not exceed
	2019	+	one million dollars in the aggregate.
	2020	+	SECTION 26. AMENDMENT. Section 53-12.1-03 of the North Dakota Century Code is
	2021	+	amended and reenacted as follows:
	2022	+	53-12.1-03. Director - Responsibilities.
	2023	+	1. The attorney general shall appoint a director who shall serve at the pleasure of the
	2024	+	attorney general.
	2025	+	2. Subject to policy of the attorney generalgaming commission, the director shall:
	2026	+	a.1. Employ those individuals deemed necessary to operate the lottery and provide secure
	2027	+	facilities to house the lottery;
	2028	+	b.2. Enter a written agreement with one or more government-authorized lotteries, or with
	2029	+	an organization created and controlled by those lotteries, for conducting and marketing
	2030	+	a joint lottery game;
	2031	+	c.3. Provide for a secure computer data center and internal control system for the reliable
	2032	+	operation of the lottery;
	2033	+	d.4. Prepare and submit a budget for operating the lottery;
	2034	+	e.5. Operate the lottery so it is self-sustaining and self-funded;
	2035	+	f.6. Maintain books and records which accurately reflect each day's financial transactions,
	2036	+	including the sale of tickets, receipt of funds and fees, prize payments, and expenses
	2037	+	to ensure accountability;
	2038	+	g.7. License a retailer to sell or redeem a ticket;
	2039	+	h.8. Require a retailer to furnish proof of financial stability or post a bond in an amount the
	2040	+	director deems necessary to protect the financial interest of the state;
	2041	+	i.9. Timely and efficiently transfer lottery funds due from a retailer;
	2042	+	j.10. Conduct a retailer promotion to promote the sale of a ticket;
	2043	+	k.11. As necessary, enter a contract for a promotional service, an annuity for the payment of
	2044	+	a prize, credit history report, security service, service from another state agency,
	2045	+	Page No. 33 25.0798.02006
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	2077	+	marketing and related service, gaming system and related service, and other
	2078	+	necessary service;
	2079	+	l.12. Based on reasonable ground or written complaint, suspend or revoke a retailer's
	2080	+	license or impose a monetary fine, or both, for a violation, by the retailer or employee
	2081	+	of the retailer, of a lottery law or rule;
	2082	+	m.13. Examine, or cause to be examined by an agent designated by the director, any book
	2083	+	or record of a retailer to ensure compliance with the lottery law and rules;
	2084	+	n.14. Upon request, report to the legislative council regarding the operation of the lottery;
	2085	+	o.15. Make quarterly and annual financial reports to the governor and attorney
	2086	+	generaldirector and a biennial report to the legislative assembly;
	2087	+	p.16. Have an annual audit, conducted by the state auditor, of the lottery. The director shall
	2088	+	present the audit report to the governor, state treasurer, and legislative assembly;
	2089	+	q.17. As necessary, have an independent firm conduct a study and evaluation of security;
	2090	+	and
	2091	+	r.18. As necessary, conduct a survey of retailers and players or a study of reactions of
	2092	+	citizens to present and potential features of the lottery.
	2093	+	SECTION 27. AMENDMENT. Section 53-12.1-04 of the North Dakota Century Code is
	2094	+	amended and reenacted as follows:
	2095	+	53-12.1-04. Advisory commission - Penalty.
	2096	+	1. There is created the lottery advisory commission, which is composed of five members,
	2097	+	three of whom are legislators selected by the chairman of the legislative management
	2098	+	and two of whom are selected by the attorney generaldirector. The term of office is
	2099	+	three years, expiring on June thirtieth with no more than two terms expiring in any one
	2100	+	year. Each member must be a citizen of the United States and a resident of this state.
	2101	+	A chairman of the commission must be chosen annually from the membership of the
	2102	+	commission by a majority of its members at the first meeting of the commission each
	2103	+	fiscal year. A member may serve as chairman for more than one year.
	2104	+	2. The lottery advisory commission shall meet at least once a quarter and any additional
	2105	+	meetings as the chairman deems necessary. Special meetings may be called by the
	2106	+	chairman upon the written request of the director or any three members of the
	2107	+	commission.
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	2141	+	3. The lottery advisory commission shall advise the director and attorney general on
	2142	+	policy and general operation of the lottery and shall serve as the audit committee.
	2143	+	4. A member of the lottery advisory commission who is not a permanent full-time state
	2144	+	employee is to be compensated at a rate of seventy-five dollars per day and entitled to
	2145	+	mileage and expenses as provided by law for state employees. A state employee who
	2146	+	is a member of the commission must receive that employee's regular salary and is
	2147	+	entitled to mileage and expenses, to be paid by the employing agency.
	2148	+	5. No member of the lottery advisory commission, employee of the lottery, or any
	2149	+	individual who regularly resides in the same household as either of those individuals
	2150	+	may directly or indirectly, individually, as a partner of a partnership, or a stockholder,
	2151	+	director, or officer of a corporation, have an interest in the gaming system or
	2152	+	advertising agency vendor of the lottery. A knowing violation of this subsection is a
	2153	+	class B misdemeanor.
	2154	+	SECTION 28. AMENDMENT. Section 53-12.1-09 of the North Dakota Century Code is
	2155	+	amended and reenacted as follows:
	2156	+	53-12.1-09. Operating fund - Continuing appropriation - Authorization of
	2157	+	disbursements - Report - Net proceeds.
	2158	+	There is established within the state treasury the lottery operating fund into which must be
	2159	+	deposited all revenue from the sale of tickets, interest received on money in the fund, and all
	2160	+	other fees and moneys collected, less a prize on a lottery promotion, prize on a winning ticket
	2161	+	paid by a retailer, and a retailer's commission. Except for moneys in the lottery operating fund
	2162	+	appropriated by the legislative assembly for administrative and operating costs of the lottery
	2163	+	under section 53-12.1-10, all other money in the fund is continuously appropriated for the
	2164	+	purposes specified in this section. During each regular session, the attorney generaldirector
	2165	+	shall present a report to the appropriations committee of each house of the legislative assembly
	2166	+	on the actual and estimated operating revenue and expenditures for the current biennium and
	2167	+	projected operating revenue and expenditures for the subsequent biennium authorized by this
	2168	+	section. A payment of a prize or expense or transfer of net proceeds by the lottery may be made
	2169	+	only against the fund or money collected from a retailer on the sale of a ticket. A disbursement
	2170	+	from the fund must be for the following purposes:
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	2203	+	1. Payment of a prize as the director deems appropriate to the owner of a valid, winning
	2204	+	ticket;
	2205	+	2. Notwithstanding section 53-12.1-10, payment of a marketing expense that is directly
	2206	+	offset by cosponsorship funds collected;
	2207	+	3. Payment of a gaming system or related service expense, retailer record and credit
	2208	+	check fees, game group dues, and retailer commissions; and
	2209	+	4. Transfer of net proceeds:
	2210	+	a. Eighty thousand dollars must be transferred to the state treasurer each quarter
	2211	+	for deposit in the gambling disorder prevention and treatment fund;
	2212	+	b. An amount for the lottery's share of a game's prize reserve pool must be
	2213	+	transferred to the multistate lottery association; and
	2214	+	c. Starting July 1, 2023, two hundred fifty thousand dollars must be transferred to
	2215	+	the state treasurer each quarter for deposit in the attorney general
	2216	+	multijurisdictional drug task force grant fund; and
	2217	+	d. The balance of the net proceeds, less holdback of any reserve funds the director
	2218	+	may need for continuing operations, must be transferred to the state treasurer on
	2219	+	at least an annual basis for deposit in the state general fund.
	2220	+	SECTION 29. AMENDMENT. Section 53-12.1-11 of the North Dakota Century Code is
	2221	+	amended and reenacted as follows:
	2222	+	53-12.1-11. Confidentiality of records.
	2223	+	1. The following information and records of the lottery are confidential:
	2224	+	a. Sales and income tax information, financial statements, and a credit report of a
	2225	+	retailer applicant or person seeking or doing business with the lottery, and retailer
	2226	+	application information other than the applicant's name and location;
	2227	+	b. Information related to a person owing a debt to the state or having a debt
	2228	+	collected through a state agency that is made confidential by another state law or
	2229	+	rule;
	2230	+	c. Internal control and security procedures, security information on a winning ticket,
	2231	+	and information on a bid or contractual data, the disclosure of which is harmful to
	2232	+	the efforts of the lottery to contract for goods and services on favorable terms;
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	2265	+	d. Personal information on a player who purchases an online play or a player who
	2266	+	wins a prize on a winning ticket unless the player authorizes, in writing, release of
	2267	+	the information; and
	2268	+	e. Non-aggregated, identifiable lottery sales data, the disclosure of which is harmful
	2269	+	to the competitive position of the lottery, retailer, or person seeking or doing
	2270	+	business with the lottery. However, a retailer may authorize the lottery to release
	2271	+	the retailer's lottery sales data.
	2272	+	2. To be confidential, information must relate to the security and integrity of the lottery.
	2273	+	Information and records may be disclosed within the attorney general'sdirector's office
	2274	+	or to an authorized person in the proper administration of the lottery law and rules or in
	2275	+	accordance with a judicial order. Criminal history record check information on an
	2276	+	individual seeking or doing business with the lottery may be released only according to
	2277	+	chapter 12-60.
	2278	+	SECTION 30. AMENDMENT. Section 53-12.1-13 of the North Dakota Century Code is
	2279	+	amended and reenacted as follows:
	2280	+	53-12.1-13. Rules.
	2281	+	The attorney generaldirector shall adopt rules governing the operation of the lottery. The
	2282	+	attorney generaldirector may adopt emergency rules as necessary without the grounds
	2283	+	otherwise required under section 28-32-03. The attorney generaldirector shall adopt rules to
	2284	+	address any matters necessary for the efficient operation of the lottery or convenience of the
	2285	+	public, including:
	2286	+	1. Type of retailer where a ticket may be sold;
	2287	+	2. Qualification for selecting a retailer and amount of application and license fees;
	2288	+	3. Licensing procedure;
	2289	+	4. Method used to sell a ticket, including a gift certificate and online play;
	2290	+	5. Financial responsibility of a retailer;
	2291	+	6. Retailer promotions;
	2292	+	7. Amount and method of commission to be paid to a retailer, including a special bonus
	2293	+	or incentive;
	2294	+	8. Deadline for claiming a prize by the owner of a winning ticket, however, the deadline
	2295	+	may not exceed one year;
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	2329	+	9. Manner of paying a prize to the owner of a winning ticket; and
	2330	+	10. Setoff of a prize.
	2331	+	SECTION 31. REPEAL. Sections 53-06.2-02 and 53-06.2-03 of the North Dakota Century
	2332	+	Code are repealed.
437	2333		SECTION 3. APPROPRIATION - OFFICE OF THE ATTORNEY GENERAL - GAMING
438	2334		COMMISSION - ONE-TIME FUNDING. There is appropriated out of any moneys in the general
439	2335		fund in the state treasury, not otherwise appropriated, the sum of $25,000, or so much of the
440		-	sum as may be necessary, to the office of ~~the~~ attorney general for the purpose of defraying the
	2336	+	sum as may be necessary, to the office of attorney general for the purpose of defraying the
441	2337		costs of operations of the gaming commission, for the biennium beginning July 1, 2025, and
442		-	ending June 30, 2027. The appropriation provided in this section is considered a one-time
443		-	funding item.
444		-	SECTION 4. APPLICATION. For purposes of the membership of the gaming commission
445		-	under section 1 of this Act, the term of a member serving on the gaming commission before the
446		-	effective date of this Act terminates on June 30, 2025. The initial term of three of the four
447		-	members appointed by the governor on July 1, 2025, under subsection 1 of section
448		-	53-06.1-01.1, must be limited to a term of one year to effectuate the staggering of terms
449		-	required under subsection 2 of section 53-06.1-01.1.
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	2338	+	ending June 30, 2027. The funding provided in this section is considered a one-time funding
	2339	+	item.
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	2346	+	6
	2347	+	7
	2348	+	8
	2349	+	9
	2350	+	10
	2351	+	11