North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2268 Compare Versions

Only one version of the bill is available at this time.

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1	1	25.1230.01000
2	2	Sixty-ninth
3	3	Legislative Assembly
4	4	of North Dakota
5	5	Introduced by
6	6	Senator Barta
7	7	A BILL for an Act to amend and reenact section 53-06.1-01 of the North Dakota Century Code,
8	8	relating to the definition of alcoholic beverage establishment.
9	9	BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
10	10	SECTION 1. AMENDMENT. Section 53-06.1-01 of the North Dakota Century Code is
11	11	amended and reenacted as follows:
12	12	53-06.1-01. Definitions.
13	13	As used in this chapter:
14	14	1."Adjusted gross proceeds" means gross proceeds less cash prizes, cost of
15	15	merchandise prizes, gaming tax, and federal excise tax imposed under section 4401
16	16	of the Internal Revenue Code [26 U.S.C. 4401].
17	17	2."Alcoholic beverage establishment" means an establishment licensed under chapter
18	18	5 - 01 or 5-02 where alcoholic beverages are sold, dispensed, and consumed by guests
19	19	on the premises. The term does not include a liquor store, gas station, grocery store,
20	20	or convenience store.
21	21	3."Charitable organization" means an organization whose primary purpose is for relief of
22	22	poor, distressed, underprivileged, diseased, elderly, or abused persons, prevention of
23	23	cruelty to children or animals, or similar condition of public concern.
24	24	4."Civic and service organization" means an organization whose primary purpose is to
25	25	promote the common good and social welfare of a community as a sertoma, lion,
26	26	rotary, jaycee, kiwanis, or similar organization.
27	27	5."Closely related organization" means an organization that controls, is controlled by, or
28	28	is under common control with another organization. Control exists when an
29	29	organization has the authority or ability to elect, appoint, or remove a majority of the
30	30	officers or directors of another organization or, by policy, contract, or otherwise, has
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32	32	SENATE BILL NO. 2268
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58	58	Legislative Assembly
59	59	the authority or ability to directly or indirectly direct or cause the direction of the
60	60	management or policies of another organization.
61	61	6."Distributor" means a person that sells, markets, or distributes equipment designed for
62	62	use in the conduct of games.
63	63	7."Educational organization" means a nonprofit public or private elementary or
64	64	secondary school, two-year or four-year college, or university.
65	65	8."Electronic pull tab device" means a device, approved by the attorney general, which
66	66	electronically displays pull tabs.
67	67	9."Eligible organization" means a veterans, charitable, educational, religious, fraternal,
68	68	civic and service, public safety, or public-spirited organization domiciled in North
69	69	Dakota or authorized by the secretary of state as a foreign corporation under chapter
70	70	10-33, incorporated as a nonprofit organization, and which has been regularly and
71	71	actively fulfilling its primary purpose within this state during the two immediately
72	72	preceding years. However, an educational organization does not need to be
73	73	incorporated or be in existence for two years. An organization's primary purpose may
74	74	not involve the conduct of games. The organization may be issued a license by the
75	75	attorney general. For purposes of this section, a foreign corporation authorized under
76	76	chapter 10-33 is not an eligible organization unless authorized to conduct a raffle
77	77	under chapter 20.1-04 or 20.1-08 and may not conduct a game other than a raffle
78	78	under chapter 20.1-04 or 20.1-08.
79	79	10."Fraternal organization" means an organization, except a school fraternity, which is a
80	80	branch, lodge, or chapter of a national or state organization and exists for the common
81	81	business, brotherhood, or other interests of its members. The organization must have
82	82	qualified for exemption from federal income tax under section 501(c)(8) or 501(c)(10)
83	83	of the Internal Revenue Code.
84	84	11."Games" means games of chance.
85	85	12."Gross proceeds" means all cash and checks received from conducting games.
86	86	13."Licensed organization" means an eligible organization licensed by the attorney
87	87	general.
88	88	14."Manufacturer" means, for a pull tab or bingo card, a person who designs, prints,
89	89	assembles, or produces the product. For a pull tab dispensing device, electronic pull
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123	123	tab device operating system, bingo card marking device, or electronic raffle system, a
124	124	manufacturer means the person who directly controls and manages development of
125	125	and owns the rights to the proprietary software encoded on a processing chip that
126	126	enables the device or system to operate.
127	127	15."Net income" means gross proceeds less cash prizes, cost of merchandise prizes, and
128	128	expenses to conduct the gaming activity.
129	129	16."Net proceeds" means adjusted gross proceeds less allowable expenses and gaming
130	130	tax.
131	131	17."Permit" means a local permit or restricted event permit issued by a governing body of
132	132	a city or county to a nonprofit organization or group of people domiciled in North
133	133	Dakota.
134	134	18."Person" means any person, partnership, corporation, limited liability company,
135	135	association, or organization.
136	136	19."Prize board" means a board used with pull tabs to award cash or merchandise prizes.
137	137	20."Public safety organization" means an organization whose primary purpose is to
138	138	provide firefighting, ambulance service, crime prevention, or similar emergency
139	139	assistance.
140	140	21."Public-spirited organization" means an organization whose primary purpose is for
141	141	scientific research, amateur sports competition, safety, literary, arts, preservation of
142	142	cultural heritage, educational activities, educational public service, youth, economic
143	143	development, tourism, community medical care, community recreation, or similar
144	144	organization, which does not meet the definition of any other type of eligible
145	145	organization. However, a nonprofit organization or a group of people recognized as a
146	146	public-spirited organization by a governing body of a city or county for obtaining a
147	147	permit does not need to meet this definition.
148	148	22."Pull tab" means a folded or banded ticket or jar ticket, a pull tab card with break-open
149	149	tabs, or an electronic pull tab displaying concealed numbers or symbols or
150	150	combinations of concealed numbers and symbols which are exposed by a player to
151	151	determine the outcome. The terms "pull tab" and "jar ticket" are used interchangeably
152	152	unless otherwise stated. A winning pull tab contains certain symbols, numbers, or
153	153	combinations of symbols and numbers and may contain multiple winning symbols,
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187	187	numbers, or combinations of symbols and numbers which have been previously
188	188	designated as winning symbols or numbers.
189	189	23."Religious organization" means a church, body of communicants, or group gathered in
190	190	common membership whose primary purpose is for advancement of religion, mutual
191	191	support and edification in piety, worship, and religious observances.
192	192	24."Veterans organization" means any congressionally chartered post organization, or
193	193	any branch or lodge or chapter of a nonprofit national or state organization whose
194	194	membership consists of individuals who are or were members of the armed services
195	195	or forces of the United States. The organization must have qualified for exemption
196	196	from federal income tax under section 501(c)(19) of the Internal Revenue Code.
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