SB 2224 — Summary (Gaming regulation; North Dakota Century Code)
Status and procedural history
- Introduced: March 11, 2025 (Prepared by Legislative Council staff for Rep. McLeod; Senators Myrdal and Luick listed as sponsors in some documents).
- Conference committee amendments adopted April 23, 2025.
- Second reading (final action): April 24, 2025 — failed to pass (yeas 0, nays 46).
- Note: some uploaded materials include unrelated text from an Illinois SB2224; that material is not part of the North Dakota bill summarized here.
Primary purpose and intent
- To restructure state oversight of charitable/organization gaming by (1) abolishing or substantially diminishing the independent State Gaming Commission’s role and (2) authorizing the Attorney General to administer and regulate gaming. The bill also updates gaming‑stamp procedures, expands enforcement and inspection authority, provides for penalties and hearings, and includes an appropriation (amount not specified in the provided text).
Key provisions and changes
1. Agency/authority changes
- Reframes or transfers regulatory authority from the State Gaming Commission to the Attorney General (various drafts show the bill’s intent to have the attorney general administer and regulate gaming).
- Commission structure and appointment language remain in the statute text (chair + 4 members, three‑year staggered terms), but the bill adjusts operational provisions (see below).
Commission operations and compensation
- Member per‑diem moved from a fixed $75/day to “the amount under subsection 1 of section 54‑03‑20” (statutory cross‑reference).
- Requires the commission to meet at least quarterly and allows executive sessions under section 44‑04‑19.2 (in versions where the commission continues).
Gaming stamps (section 53‑06.1‑14(3))
- Licensed distributors must affix a North Dakota gaming stamp to each deal/series of paper pull tabs, raffle boards, punchboards, sports pool boards, calcutta boards, and paddlewheel ticket card series sold or provided to licensed organizations/permit holders.
- Distributors purchase stamps from the Attorney General for $0.35 each.
- $0.10 of each stamp sold by the AG is credited to the Attorney General’s operating fund — capped at $36,000 per biennium to defray stamp‑administration costs.
- Exemption: an organization with a raffle board that only sells numbered squares on the day of the event is exempt from this stamp requirement.
Attorney General enforcement authority (section 53‑06.1‑15.1)
- Broad inspection powers: sites where gaming occurs, manufacturing and distribution premises, gaming equipment and supplies.
- Seizure, removal, and impoundment authority for equipment, supplies, games, books, and records for inspection.
- Audit and copy powers: access to books/records of applicants, organizations, lessors, manufacturers, distributors, and affiliates to determine compliance and use of net proceeds.
- May require manufacturers to reimburse reasonable inspection travel expenses.
- Can require training of representatives of licensed organizations/distributors and, for good cause, prohibit persons from involvement in gaming or from providing services.
- May prohibit individuals from playing games for violations and may require or prohibit organizations from paying certain prizes.
- Contains hearing and appeal procedures and provides for penalties (specific penalties not detailed in the supplied excerpts).
Who would be affected
- State Gaming Commission members (role diminished/abolished under the bill’s intent).
- Attorney General’s Office — expanded administrative, enforcement, and administrative burdens (stamp sales, inspections, audits); receives limited stamp revenue (up to $36,000/bi biennium).
- Licensed distributors and manufacturers — must purchase and affix stamps from the AG, subject to inspections, and manufacturers may reimburse inspection travel costs.
- Licensed organizations (charitable, fraternal, religious, etc.) — continue to be regulated, subject to audits, stamp rules, and AG enforcement; possible operational changes and compliance costs.
- Players and the public — increased state oversight and enforcement authority intended to ensure fair/honest games and proper use of net proceeds.
Fiscal/other notes
- The bill includes an appropriation (text provided does not specify amounts).
- $0.10 per stamp is earmarked to the Attorney General’s operating fund (capped at $36,000 per biennium).
- The bill’s enforcement expansion could increase workload for the Attorney General’s office; the limited stamp fee credit provides a small offset.
Outcome
- Although advanced through committee and conference committee amendments, SB 2224 failed final legislative approval on second reading (vote recorded April 24, 2025: yeas 0, nays 46), so it did not become law in this session.
If you’d like, I can:
- Extract and list the specific statutory subsections changed with quoted language; or
- Produce a one‑page “impacts checklist” for affected stakeholders (distributors, manufacturers, organizations, AG office).
