North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2384 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	25.1323.01000
2	2		Sixty-ninth
3	3		Legislative Assembly
4	4		of North Dakota
5	5		Introduced by
6	6		Senators Cory, Patten
7	7		Representatives Hagert, Meier
8	8		A BILL for an Act to amend and reenact section 53-06.1-14, subsection 11 of section
9	9		53-06.2-01, and sections 53-06.2-07 and 53-06.2-10 of the North Dakota Century Code, relating
10		-	to the ~~maintenance~~ of electronic ~~pull tab~~ devices ~~and the elimination of dog racing;~~ and to
11		-	~~provide an effective date~~.
	10	+	to the authorized sale of electronic gaming devices by manufacturers and live or simulcast
	11	+	horse racing.
12	12		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
13	13		SECTION 1. AMENDMENT. Section 53-06.1-14 of the North Dakota Century Code is
14	14		amended and reenacted as follows:
15	15		53-06.1-14. Distributors and manufacturers.
16	16		1.A manufacturer of pull tabs, bingo cards, electronic quick shot bingo systems and
17	17		devices, or bingo card marking devices shall apply annually for a license and pay a
18	18		license fee of five thousand five hundred dollars. A manufacturer of electronic pull tab
19	19		systems and devices shall apply annually for a license and pay a license fee of ten
20	20		thousand dollars. The attorney general shall deposit one thousand five hundred dollars
21	21		of these fees into the charitable gaming technology fund under section 53-06.1-12.4. A
22	22		manufacturer of paper pull tab dispensing devices shall apply annually for a license
23	23		and pay a license fee of one thousand five hundred dollars. The attorney general shall
24	24		deposit five hundred dollars of this fee into the charitable gaming technology fund
25	25		under section 53-06.1-12.4. A manufacturer of electronic raffle systems shall apply
26	26		annually for a license and pay a license fee of one thousand dollars. The attorney
27	27		general shall deposit five hundred dollars of this fee into the charitable gaming
28	28		technology fund under section 53-06.1-12.4. A distributor shall apply annually for a
29	29		license and pay a license fee of two thousand dollars. The attorney general shall
30		-	Page No. 1 25.1323.03000
31		-	ENGROSSED SENATE BILL NO. 2384
32		-	FIRST ENGROSSMENT
	30	+	deposit five hundred dollars of this fee into the charitable gaming technology fund
	31	+	Page No. 1 25.1323.01000
	32	+	SENATE BILL NO. 2384
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55	57		Legislative Assembly
56		-	deposit five hundred dollars of this fee into the charitable gaming technology fund
57	58		under section 53-06.1-12.4. Application must be made before the first day of April in
58	59		each year on a form prescribed by the attorney general.
59	60		2.A licensed distributor may not sell, market, or distribute gaming equipment except to a
60	61		licensed distributor, licensed organization, organization that has a permit, or other
61	62		person authorized by gaming rule or the attorney general. A manufacturer of a pull tab
62	63		dispensing device, pull tab, electronic pull tab device, bingo card marking device,
63	64		bingo card, or fifty-fifty raffle system may only sell, market, or distribute the
64	65		manufacturer's pull tab dispensing device and processing chip encoded with
65	66		proprietary software, pull tab, electronic pull tab device, bingo card marking device,
66		-	bingo card, or fifty-fifty raffle system to a licensed distributor. A licensed distributor may
67		-	purchase or acquire a pull tab dispensing device and processing chip encoded with
68		-	proprietary software, pull tab, electronic pull tab device, bingo card marking device,
69		-	bingo card, or fifty-fifty raffle system only from a licensed manufacturer or licensed
70		-	distributor. However, a distributor may purchase or acquire a used pull tab dispensing
71		-	device or electronic pull tab device from a licensed organization. A distributor may not
72		-	duplicate a manufacturer's processing chip encoded with proprietary software. No
73		-	gaming equipment or prize may be sold or leased at an excessive price.
74		-	3.A licensed distributor shall affix a North Dakota gaming stamp to each deal of pull
75		-	tabs, raffle board, punchboard, sports pool board, calcutta board, and series of
	67	+	bingo card, or fifty-fifty raffle system to a licensed distributor. A manufacturer of an
	68	+	electronic pull tab device, electronic quick shot bingo system or device, or other
	69	+	electronic gaming device may sell, market, or distribute the manufacturer's electronic
	70	+	pull tab device, electronic quick shot bingo system or device, or other electronic
	71	+	gaming device to a licensed distributor or licensed organization. A licensed distributor
	72	+	may purchase or acquire a pull tab dispensing device and processing chip encoded
	73	+	with proprietary software, pull tab, electronic pull tab device, bingo card marking
	74	+	device, bingo card, or fifty-fifty raffle system, or other electronic gaming device only
	75	+	from a licensed manufacturer or licensed distributor. However, a distributor may
	76	+	purchase or acquire a used pull tab dispensing device or electronic pull tab device
	77	+	from a licensed organization. A distributor may not duplicate a manufacturer's
	78	+	processing chip encoded with proprietary software. No gaming equipment or prize
	79	+	may be sold or leased at an excessive price.
	80	+	3.A licensed distributor shall affix a North Dakota gaming stamp to each deal of paper
	81	+	pull tabs, raffle board, punchboard, sports pool board, calcutta board, and series of
76	82		paddlewheel ticket cards sold or otherwise provided to a licensed organization or
77	83		organization that has a permit and shall purchase the stamps from the attorney
78	84		general for thirty-five cents each. Ten cents of each stamp sold by the attorney
79	85		general, up to thirty-six thousand dollars per biennium, must be credited to the
80	86		attorney general's operating fund to defray the costs of issuing and administering the
81	87		gaming stamps. If an organization hosts an event with a raffle board and only sells
82		-	numbered squares on the day of event, the organization is exempt from the
83		-	requirements under this subsection.
84		-	4.A licensed organization, organization that has a permit, licensed manufacturer, or
85		-	North Dakota wholesaler of liquor or alcoholic beverages may not be a distributor or
86		-	stockholder of a distributor. A distributor may not be a stockholder of a manufacturer.
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	88	+	Page No. 2 25.1323.01000
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	120	+	numbered squares on the day of event, the organization is exempt from the
	121	+	requirements under this subsection.
	122	+	4.A licensed organization, organization that has a permit, licensed manufacturer, or
	123	+	North Dakota wholesaler of liquor or alcoholic beverages may not be a distributor or
	124	+	stockholder of a distributor. A distributor may not be a stockholder of a manufacturer.
120	125		5.In addition to the license fee, the attorney general may require advance payment of
121	126		any fee necessary to pay the cost of a record check of an applicant according to
122	127		subdivision c of subsection 5 of section 53-06.1-06.
123	128		6.A licensed manufacturer may not refuse to sell deals of pull tabs, paper bingo cards, or
124	129		gaming equipment to a licensed distributor unless:
125	130		a.A specific deal of pull tabs is sold on an exclusive basis;
126	131		b.The manufacturer does not sell deals of pull tabs, paper bingo cards, or gaming
127	132		equipment to any distributor in the state;
128	133		c.A gaming law or rule prohibits the sale;
129	134		d.The distributor has not provided the manufacturer with proof of satisfactory credit
130	135		or is delinquent on any payment owed to the manufacturer; or
131	136		e.The distributor has not met the manufacturer's standard minimum order quantity
132	137		and freight terms.
133		-	7.A manufacturer may work directly with a licensed organization to ensure proper
134		-	maintenance of and address technical or software issues with an electronic pull tab
135		-	device. A distributor or manufacturer of an electronic pull tab device shall notify a
136		-	licensed organization of scheduled maintenance or repair and allow an organization to
137		-	have a representative present when any maintenance or repair is performed.
138	138		SECTION 2. AMENDMENT. Subsection 11 of section 53-06.2-01 of the North Dakota
139	139		Century Code is amended and reenacted as follows:
140	140		11."Racing" means live or simulcast horse racing under the certificate system or
141	141		simulcast dog racing under the certificate system.
142	142		SECTION 3. AMENDMENT. Section 53-06.2-07 of the North Dakota Century Code is
143	143		amended and reenacted as follows:
144	144		53-06.2-07. Issuance of licenses - Applications.
145	145		1.On compliance by an applicant with this chapter and the approval of the attorney
146	146		general, the commission may issue a license to conduct races. The attorney general
147	147		may not grant a license denied by the commission.
148	148		2.An application for a license to conduct a racing meet must be signed under oath and
149	149		filed with the commission. The application must contain at least the following:
150	150		a.The name and post-office address of the applicant.
151		-	Page No. 3 25.1323.~~03000~~
	151	+	Page No. 3 25.1323.01000
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184	184		b.The location of the racetrack and whether it is owned or leased. If the racetrack is
185	185		leased, a copy of the lease must be included.
186	186		c.A statement of the applicant's previous history and association sufficient to
187	187		establish that the applicant is an eligible organization.
188	188		d.The time, place, and number of days the racing meet is proposed to be
189	189		conducted.
190	190		e.The type of racing to be conducted.
191	191		f.Other information the commission requires.
192	192		3.At least thirty days before the commission issues or renews a license to conduct
193	193		races, the applicant shall deliver a complete copy of the application to the local
194	194		jurisdiction governing body. The application to the commission must include a
195	195		certificate verified by a representative of the applicant, indicating delivery of the
196	196		application copy to the governing body. If the governing body of the local jurisdiction
197	197		adopts a resolution disapproving the application for license or renewal and so informs
198	198		the executive director within thirty days of receiving a copy of the application, the
199	199		license to conduct races may not be issued or renewed.
200	200		4.A totalizator or service provider licensee may not use its license to offer bets or wagers
201	201		on dog races.
202	202		SECTION 4. AMENDMENT. Section 53-06.2-10 of the North Dakota Century Code is
203	203		amended and reenacted as follows:
204	204		53-06.2-10. Certificate system - Rules.
205	205		The certificate system allows a licensee to receive money from any person present aton a
206	206		live horse race,or simulcast horse race, or simulcast dog race who desires to bet on any entry in
207	207		that race. A person betting on an entry to win acquires an interest in the total money bet on all
208	208		entries in the race, in proportion to the amount of money bet by that person, under rules
209	209		adopted by the commission. The licensee shall receive the bets and for each bet on a live or
210	210		simulcast horse race shall issue a certificate to the bettor on which is at least shown the number
211	211		of the race, the amount bet, and the number or name of the entry selected by the bettor. The
212	212		commission may adopt rules for place, show, quinella, combination, or other types of betting
213	213		usually connected with racingwagering on live or simulcast horse races.
214		-	Page No. 4 25.1323.~~03000~~
	214	+	Page No. 4 25.1323.01000
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246		-	SECTION 5. EFFECTIVE DATE. Sections 2, 3, and 4 of this Act become effective on
247		-	August 1, 2027.
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