HB 1276 — Summary (North Dakota — amendment to NDCC §53‑06.1‑03)
Status: Introduced Nov. 13, 2024. Second reading — failed to pass (yeas 21, nays 72).
Purpose
- To amend subsection 1 of ND Century Code §53‑06.1‑03 to clarify and expand when proceeds from permitted gaming (specifically raffles) may be used for a political purpose by certain categories of organizations recognized as “public‑spirited.”
Key provisions and changes
- Recognition and permitting (unchanged framework retained)
- Organizations must be recognized as a “public‑spirited organization” by the city or county governing body to obtain local permits for certain games (raffles, bingo, sports pools, etc.).
- Local permits are issued on forms prescribed by the attorney general; governing bodies may charge up to $25 per permit and set times/places for games.
- Prize caps for local/restricted permits remain: primary prize ≤ $8,000 and total prizes per year ≤ $40,000 (does not apply to raffles under chapter 20.1‑08).
New/clarified allowance to use raffle net income for political purposes (main change)
- The bill clarifies that organizations generally may use net income from permitted gaming for any purpose that does not violate the gaming chapter or rules.
- Crucially, it adds that if the organization is any of the following:
- a nonfederal candidate campaign committee,
- a nonfederal political action committee,
- a state political party, or
- a legislative district party committee,
then the organization may use the net income from a raffle for a political purpose.
- The bill explicitly states that, for subdivision c, a “public‑spirited use includes a political purpose.”
Continued limitations for restricted event permits
- Organizations with a restricted event permit are limited to one event per year, may not pay remuneration to employees for personal services, must use chips as wagers, must redeem chips for merchandise or cash, must disburse net income to eligible uses (as applicable), and must file reports required by the attorney general.
Who is affected
- Directly affected:
- Nonfederal candidate campaign committees, nonfederal PACs, state political parties, and legislative district party committees in municipalities/counties that recognize them as “public‑spirited” — these entities could lawfully direct net raffle proceeds to political purposes if permitted locally.
- Local governments (city/county governing bodies) that decide recognition and issue permits.
- The attorney general’s office (form and regulatory oversight) and permit applicants (must disclose intended use of net income on application).
- Indirectly affected:
- Voters and the public (changes fundraising pathways for political organizations).
- Other nonprofit or civic organizations (distinction preserved — only specified political entities are called out).
Procedural/timing notes
- The bill was introduced Nov. 13, 2024.
- According to the provided status, it reached second reading but failed to pass (yeas 21, nays 72).
- If enacted, the amendment would become part of NDCC §53‑06.1‑03 and operate within the existing local permitting/registration framework administered by city/county governing bodies and subject to attorney general rules and reporting requirements.
Potential implications (objective)
- Enables certain political organizations to raise and deploy raffle proceeds directly for political purposes where local recognition and permits are granted.
- Maintains existing structural safeguards: local recognition, disclosure of intended uses on permit application, prize caps for local permits, and AG‑prescribed reporting.