25.1323.03000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Senators Cory, Patten
Representatives Hagert, Meier
A BILL for an Act to amend and reenact section 53-06.1-14, subsection 11 of section
53-06.2-01, and sections 53-06.2-07 and 53-06.2-10 of the North Dakota Century Code, relating
to the maintenance of electronic pull tab devices and the elimination of dog racing; and to
provide an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 53-06.1-14 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.1-14. Distributors and manufacturers.
1.A manufacturer of pull tabs, bingo cards, electronic quick shot bingo systems and
devices, or bingo card marking devices shall apply annually for a license and pay a
license fee of five thousand five hundred dollars. A manufacturer of electronic pull tab
systems and devices shall apply annually for a license and pay a license fee of ten
thousand dollars. The attorney general shall deposit one thousand five hundred dollars
of these fees into the charitable gaming technology fund under section 53-06.1-12.4. A
manufacturer of paper pull tab dispensing devices shall apply annually for a license
and pay a license fee of one thousand five hundred dollars. The attorney general shall
deposit five hundred dollars of this fee into the charitable gaming technology fund
under section 53-06.1-12.4. A manufacturer of electronic raffle systems shall apply
annually for a license and pay a license fee of one thousand dollars. The attorney
general shall deposit five hundred dollars of this fee into the charitable gaming
technology fund under section 53-06.1-12.4. A distributor shall apply annually for a
license and pay a license fee of two thousand dollars. The attorney general shall
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ENGROSSED SENATE BILL NO. 2384
FIRST ENGROSSMENT
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deposit five hundred dollars of this fee into the charitable gaming technology fund
under section 53-06.1-12.4. Application must be made before the first day of April in
each year on a form prescribed by the attorney general.
2.A licensed distributor may not sell, market, or distribute gaming equipment except to a
licensed distributor, licensed organization, organization that has a permit, or other
person authorized by gaming rule or the attorney general. A manufacturer of a pull tab
dispensing device, pull tab, electronic pull tab device, bingo card marking device,
bingo card, or fifty-fifty raffle system may only sell, market, or distribute the
manufacturer's pull tab dispensing device and processing chip encoded with
proprietary software, pull tab, electronic pull tab device, bingo card marking device,
bingo card, or fifty-fifty raffle system to a licensed distributor. A licensed distributor may
purchase or acquire a pull tab dispensing device and processing chip encoded with
proprietary software, pull tab, electronic pull tab device, bingo card marking device,
bingo card, or fifty-fifty raffle system only from a licensed manufacturer or licensed
distributor. However, a distributor may purchase or acquire a used pull tab dispensing
device or electronic pull tab device from a licensed organization. A distributor may not
duplicate a manufacturer's processing chip encoded with proprietary software. No
gaming equipment or prize may be sold or leased at an excessive price.
3.A licensed distributor shall affix a North Dakota gaming stamp to each deal of pull
tabs, raffle board, punchboard, sports pool board, calcutta board, and series of
paddlewheel ticket cards sold or otherwise provided to a licensed organization or
organization that has a permit and shall purchase the stamps from the attorney
general for thirty-five cents each. Ten cents of each stamp sold by the attorney
general, up to thirty-six thousand dollars per biennium, must be credited to the
attorney general's operating fund to defray the costs of issuing and administering the
gaming stamps. If an organization hosts an event with a raffle board and only sells
numbered squares on the day of event, the organization is exempt from the
requirements under this subsection.
4.A licensed organization, organization that has a permit, licensed manufacturer, or
North Dakota wholesaler of liquor or alcoholic beverages may not be a distributor or
stockholder of a distributor. A distributor may not be a stockholder of a manufacturer.
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5.In addition to the license fee, the attorney general may require advance payment of
any fee necessary to pay the cost of a record check of an applicant according to
subdivision c of subsection 5 of section 53-06.1-06.
6.A licensed manufacturer may not refuse to sell deals of pull tabs, paper bingo cards, or
gaming equipment to a licensed distributor unless:
a.A specific deal of pull tabs is sold on an exclusive basis;
b.The manufacturer does not sell deals of pull tabs, paper bingo cards, or gaming
equipment to any distributor in the state;
c.A gaming law or rule prohibits the sale;
d.The distributor has not provided the manufacturer with proof of satisfactory credit
or is delinquent on any payment owed to the manufacturer; or
e.The distributor has not met the manufacturer's standard minimum order quantity
and freight terms.
7.A manufacturer may work directly with a licensed organization to ensure proper
maintenance of and address technical or software issues with an electronic pull tab
device. A distributor or manufacturer of an electronic pull tab device shall notify a
licensed organization of scheduled maintenance or repair and allow an organization to
have a representative present when any maintenance or repair is performed.
SECTION 2. AMENDMENT. Subsection 11 of section 53-06.2-01 of the North Dakota
Century Code is amended and reenacted as follows:
11."Racing" means live or simulcast horse racing under the certificate system or
simulcast dog racing under the certificate system.
SECTION 3. AMENDMENT. Section 53-06.2-07 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-07. Issuance of licenses - Applications.
1.On compliance by an applicant with this chapter and the approval of the attorney
general, the commission may issue a license to conduct races. The attorney general
may not grant a license denied by the commission.
2.An application for a license to conduct a racing meet must be signed under oath and
filed with the commission. The application must contain at least the following:
a.The name and post-office address of the applicant.
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b.The location of the racetrack and whether it is owned or leased. If the racetrack is
leased, a copy of the lease must be included.
c.A statement of the applicant's previous history and association sufficient to
establish that the applicant is an eligible organization.
d.The time, place, and number of days the racing meet is proposed to be
conducted.
e.The type of racing to be conducted.
f.Other information the commission requires.
3.At least thirty days before the commission issues or renews a license to conduct
races, the applicant shall deliver a complete copy of the application to the local
jurisdiction governing body. The application to the commission must include a
certificate verified by a representative of the applicant, indicating delivery of the
application copy to the governing body. If the governing body of the local jurisdiction
adopts a resolution disapproving the application for license or renewal and so informs
the executive director within thirty days of receiving a copy of the application, the
license to conduct races may not be issued or renewed.
4.A totalizator or service provider licensee may not use its license to offer bets or wagers
on dog races.
SECTION 4. AMENDMENT. Section 53-06.2-10 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-10. Certificate system - Rules.
The certificate system allows a licensee to receive money from any person present aton a
live horse race,or simulcast horse race, or simulcast dog race who desires to bet on any entry in
that race. A person betting on an entry to win acquires an interest in the total money bet on all
entries in the race, in proportion to the amount of money bet by that person, under rules
adopted by the commission. The licensee shall receive the bets and for each bet on a live or
simulcast horse race shall issue a certificate to the bettor on which is at least shown the number
of the race, the amount bet, and the number or name of the entry selected by the bettor. The
commission may adopt rules for place, show, quinella, combination, or other types of betting
usually connected with racingwagering on live or simulcast horse races.
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SECTION 5. EFFECTIVE DATE. Sections 2, 3, and 4 of this Act become effective on
August 1, 2027.
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