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HB 1525

Education; Education Reform Act of 2025; effective date.

2025 Regular Session Introduced by Dick Lowe

Reorganizes North Dakota's Gaming Commission, creates an Executive Director role, and broadens regulation of games of chance across gaming, pari-mutuel, and lottery.

Second Reading referred to Rules
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Bill Summary · HB 1525

HB 1525 — Summary (North Dakota: Gaming Commission structure & games of chance regulation)

Status: Introduced April 1, 2025 — Second reading (failed to pass: yeas 13, nays 34)

Purpose
- Amend and reenact NDCC §§ 53‑06.1‑01.1 and 53‑06.1‑15.1 to change the structure and governance of the State Gaming Commission and to revise procedures for administration and regulation of “games of chance.” The bill also creates/recognizes an executive director position for gaming, makes related statutory changes across gaming/combative-sports/pari‑mutuel/lottery chapters, and provides an appropriation and application provisions.

Key provisions and changes
- Commission composition
- Reconfigures the State Gaming Commission membership: governor (or designee) as chair, four governor‑appointed members (with specified representational slots: e.g., alcoholic beverage establishment owner; representative of licensed organization; municipal representative; at‑large member), plus two legislative appointees (one each by House Speaker and Senate president pro tempore).
- Shortens appointed member terms from three years to two years and staggers terms so no more than two/three expire each July 1 (text varies across drafts).
- Sets eligibility requirements: at least two years’ state residency, good character, and no disqualifying felony or enumerated convictions; bars persons with financial interests in gaming or who are gaming‑committee employees from commission membership.
- Adjusts member compensation to the amount under NDCC § 54‑03‑20 (replacing a prior flat $75/day).

  • Executive director and administrative changes

    • Creates/recognizes an Executive Director of the Gaming Commission (transfers certain administrative duties historically performed by the Secretary of State).
    • Requires the commission to adopt rules (under chapter 28‑32) governing play, recordkeeping/internal controls, equipment standards (pull tabs, electronic devices, etc.), tax reporting, and other regulatory matters.

  • Enforcement, hearings, and penalties

    • Specifies hearing procedures: hearings based on evidence (including from the Attorney General); notice at least 45 days; hearings recorded on video and broadcast live.
    • Commission must issue an order within 30 days after the hearing’s conclusion and may impose remedies including training requirements, suspensions/revocations, prohibitions on participation, or fines.
    • Prescribes monetary fine ranges and minimums (examples from the engrossed text):
    • Licensed organization: minimum $25; up to 2% of average quarterly gross proceeds or $5,000 (whichever greater).
    • Manufacturer: minimum $500; up to $250,000.
    • Distributor: minimum $100; up to $5,000.
    • Owner of an authorized site: minimum $250; up to $2,500.
    • Authorizes civil collection within 3 years for fees/fines/taxes due.

  • Broader statutory cleanup

    • Amends related chapters governing combative sports, pari‑mutuel horse racing, and the state lottery to reflect the commission/executive director restructuring; some drafts propose repeal of the separate pari‑mutuel commission and consolidation under the gaming commission.

  • Appropriation & application

    • Bill text provides for an appropriation to implement changes and includes application provisions (specific appropriation amount not shown in the materials provided).

Who is affected
- State Gaming Commission members and staff (structure, duties, compensation)
- Licensed organizations, distributors, manufacturers, owners of authorized gaming sites
- Attorney General and Secretary of State (shifts in investigative/administrative interactions)
- Participants and the public (procedural changes, live‑broadcast hearings)
- Entities in related regulatory areas: combative sports, pari‑mutuel racing, and lottery operators.

Procedural/timeline notes
- Introduced April 1, 2025. Multiple engrossed drafts and committee amendments circulated (including texts creating an executive director and detailed penalty schedules).
- Reported in committee and placed on calendar; on second reading the bill failed to pass (yeas 13, nays 34). Because it failed second reading, the bill did not advance to final passage in this session as of the provided status.

Note: Multiple versions and proposed amendments circulated during committee and floor consideration; the summary above reflects the substantive elements recurring in the engrossed/first‑engrossment drafts of the North Dakota bill as provided.

Compiled from official sources — confirm details with the bill’s official record.

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