AN ACT to create and enact a new subsection to section 53-06.1-11.1 of the North Dakota Century Code, relating to the payment of a veterans organization's club expenses with net proceeds from charitable gaming.

69th Legislative Assembly (2025-26) Introduced by Dick Dever and 2 co-sponsors

ND SB 2288 allows veterans groups to use up to 20% of net charitable gaming proceeds each quarter to cover onsite club operating costs, food and alcohol, at one location.

Filed with Secretary Of State 03/25

Summary — North Dakota SB 2288 (2025)

Purpose
- SB 2288 creates a new subsection to section 53‑06.1‑11.1 of the North Dakota Century Code to allow veterans organizations more flexibility to use charitable gaming net proceeds to cover operating expenses of a veterans organization’s club.

Key provisions
- Permitted use of charitable gaming proceeds: A veterans organization may use up to 20% of its net charitable‑gaming proceeds per quarter to pay costs of food and beverages (expressly including alcoholic beverages) incurred in operating the organization’s club.
- Location limit: A veterans organization may operate one club in one location for purposes of this allowance.
- Statutory insertion: The change is enacted as a new subsection to NDCC § 53‑06.1‑11.1 (the charitable gaming proceeds provisions).

Who is affected
- Directly affected: Veterans organizations that conduct charitable gaming in North Dakota and operate an on‑site club (post/club buildings, etc.).
- Indirectly affected:
- Beneficiaries that previously received charitable‑gaming net proceeds (because up to 20% per quarter may now be retained for club operating costs).
- Regulators overseeing charitable gaming (may need to monitor allowable uses and compliance).
- Local communities and patrons (potential changes in how gaming revenues are allocated, and allowance for alcohol purchased with proceeds).

Potential impacts and considerations
- Increased operational flexibility: Veterans groups can use a defined share of gaming proceeds to maintain club operations and provide food/alcohol service, which may support member services and facility upkeep.
- Reduced distributable charitable funds: Up to 20% per quarter diverted to club expenses could reduce amounts available for outside charitable distributions or other qualifying uses under current law.
- Compliance and oversight: Regulators will need clear guidance and recordkeeping to ensure only up to 20% per quarter is used and that usage is properly documented; alcohol‑related liability and licensing remain governed by existing liquor laws.
- Limit on expansion: The single‑club, single‑location restriction prevents organizations from operating multiple club sites funded under this provision.

Procedural / timeline notes
- Bill text in the provided materials reflects the North Dakota version introduced in the 69th Legislative Assembly (sponsored by Senators Dever and Dwyer and Rep. Klemin).
- Enrollment documents show affirmative Senate and House votes (Senate yeas 46–0; House yeas 87–5) and indicate the bill was transmitted to and signed by the governor and filed with the Secretary of State in March 2025. Confirm the official effective date in the North Dakota Century Code or state register if needed.

(If you want, I can draft suggested regulatory language or compliance checklist items for veterans organizations and regulators.)