CHAPTER 53-01 Commissioner of Combative Sports

53-01-01. Definition. [Repealed]

Repealed by S.L. 1971, ch. 484, § 13.

53-01-01.1. Mixed fighting style competition — Definition .

As used in this chapter, “mixed fighting style competition” means an advertised or professionally promoted exhibition or contest for which any type of admission fee is charged and in which participants who inflict or employ kicks, punches, blows, holds, and other techniques to injure, stun, choke, incapacitate, or disable an opponent. The techniques may include a combination of boxing, kickboxing, wrestling, grappling, or other recognized martial arts. Boxing and kickboxing exhibitions or contests without the combination of other techniques do not constitute mixed fighting style competitions.

Source:

S.L. 2005, ch. 464, § 1; 2021, ch. 385, § 1, eff August 1, 2021.

53-01-02. Administration by secretary of state — Appointment of commission of combative sports.

The secretary of state shall act as state commissioner of combative sports and administer this chapter. The secretary of state may appoint a commission of combative sports to assist and advise the secretary of state in matters relating to the regulation of boxing, kickboxing, mixed fighting style competition, and sparring. The secretary of state shall define the duties of the commission. Commission members are not entitled to compensation, except for reimbursement for actual and necessary expenses at the same rate as allowed state employees incurred in performing their official duties.

Source:

S.L. 1935, ch. 91, § 1; R.C. 1943, § 53-0102; S.L. 1967, ch. 74, § 13; 1971, ch. 484, § 1; 1991, ch. 543, § 1; 2005, ch. 464, § 2; 2011, ch. 377, § 1.

Effective Date.

The 2011 amendment of this section by section 1 of chapter 377, S.L. 2011 became effective August 1, 2011.

53-01-03. Restrictions.

The secretary of state may not promote, directly or indirectly, any boxing, kickboxing, mixed fighting style competition, or sparring exhibition, engage in the managing of any boxer, kickboxer, or mixed style fighter, or be interested in any manner in the proceeds from any boxing, kickboxing, mixed fighting style competition, or sparring exhibition.

Source:

S.L. 1935, ch. 91, § 2; R.C. 1943, § 53-0103; S.L. 1971, ch. 484, § 2; 1991, ch. 543, § 2; 2005, ch. 464, § 3.

53-01-04. Commissioners — Reimbursement for expenses. [Repealed]

Repealed by S.L. 1971, ch. 484, § 13.

53-01-05. Boxing and wrestling commissioner — Appointment — Duties — Salary — Expenses. [Repealed]

Repealed by S.L. 1971, ch. 484, § 13.

53-01-06. Official bond of boxing and wrestling commissioner. [Repealed]

Repealed by S.L. 1971, ch. 484, § 13.

53-01-07. Duties of state commissioner of combative sports.

The secretary of state shall supervise all boxing, kickboxing, mixed fighting style competitions, or sparring exhibitions held in the state and may:

  1. Adopt rules governing the conduct of boxing, kickboxing, mixed fighting style competitions, and sparring exhibitions.
  2. Establish license fees for all boxers, kickboxers, mixed style fighters, boxing, kickboxing, and mixed fighting style competition promoters, managers, judges, timekeepers, cornerpersons, knockdown counters, matchmakers, and referees or other participants.
  3. Charge a fee equal to the actual cost incurred to regulate the competitions and exhibitions.
  4. Adopt rules allowing the secretary of state to perform screening tests for controlled substances, as defined in section 19-03.1-01, on boxers, kickboxers, and mixed style fighters participating in a competition or an exhibition.

Source:

S.L. 1935, ch. 91, § 5; 1939, ch. 98, § 1; R.C. 1943, § 53-0107; S.L. 1971, ch. 484, § 3; 1987, ch. 607, § 1; 1989, ch. 609, § 1; 1991, ch. 543, § 3; 1995, ch. 483, § 1; 1997, ch. 426, § 1; 2005, ch. 464, § 4; 2007, ch. 445, § 1; 2011, ch. 377, § 2; 2017, ch. 358, § 1, eff August 1, 2017; 2021, ch. 385, § 2, eff August 1, 2021.

Effective Date.

The 2011 amendment of this section by section 2 of chapter 377, S.L. 2011 became effective August 1, 2011.

The 2007 amendment of this section by section 1 of chapter 445, S.L. 2007 became effective March 6, 2007, pursuant to section 2 of chapter 445, S.L. 2007.

53-01-08. Biennial report to governor. [Repealed]

Repealed by S.L. 1991, ch. 543, § 8.

53-01-09. Fees paid into special fund — Continuing appropriation.

All fees collected by the secretary of state pursuant to this chapter must be deposited in a special fund maintained in the state treasury. All money deposited in the fund is appropriated as a continuing appropriation to the secretary of state for administering this chapter and for the compensation and expenses of members of the commission of combative sports.

Source:

S.L. 1935, ch. 91, § 6; 1939, ch. 98, § 2; R.C. 1943, § 53-0109; S.L. 1971, ch. 484, § 5; 1987, ch. 607, § 2; 1991, ch. 543, § 4; 2005, ch. 464, § 5; 2011, ch. 377, § 3.

Effective Date.

The 2011 amendment of this section by section 3 of chapter 377, S.L. 2011 became effective August 1, 2011.

53-01-10. Application for license — Terms of license. [Repealed]

Repealed by S.L. 1991, ch. 543, § 8.

53-01-11. Bond required with application for license. [Repealed]

Repealed by S.L. 1987, ch. 607, § 10.

53-01-12. Annual license fee for exhibitions. [Repealed]

Repealed by S.L. 1991, ch. 543, § 8.

53-01-13. Restrictions on licensee. [Repealed]

Repealed by S.L. 1991, ch. 543, § 8.

53-01-14. Books and records of exhibitor open to inspection — Canceling license. [Repealed]

Repealed by S.L. 1987, ch. 607, § 10.

53-01-15. Licensing of boxers, managers, and referees — Fee. [Repealed]

Repealed by S.L. 1991, ch. 543, § 8.

53-01-16. Amateur and professional exhibitions. [Repealed]

Repealed by S.L. 1991, ch. 543, § 8.

53-01-17. Exhibitions also governed by local ordinance.

Boxing, kickboxing, or sparring exhibitions may not be held in cities in which such contests or exhibitions are declared illegal by ordinance. All boxing, kickboxing, mixed fighting style competitions, or sparring exhibitions held in any city in this state must be held in conformity with the ordinances of the city in addition to the requirements under this chapter.

Source:

S.L. 1935, ch. 91, § 15; R.C. 1943, § 53-0117; 1991, ch. 543, § 5; 2005, ch. 464, § 6.

53-01-18. Certain exhibitions exempt.

All boxing or sparring exhibitions conducted by bona fide educational institutions or by national amateur boxing associations or their local affiliates are exempt from this chapter.

Source:

S.L. 1935, ch. 91, § 16; R.C. 1943, § 53-0118; S.L. 1975, ch. 460, § 1; 1987, ch. 607, § 8; 1991, ch. 543, § 6; 2003, ch. 448, § 1.

53-01-19. Penalty.

A person who violates this chapter or any rule adopted by the secretary of state is guilty of a class B misdemeanor.

Source:

S.L. 1935, ch. 91, § 12; R.C. 1943, § 53-0119; S.L. 1971, ch. 484, § 12; 1975, ch. 106, § 567; 1987, ch. 607, § 9; 1991, ch. 543, § 7.

CHAPTER 53-02 Dances, Dancing Places, and Musical Performances

53-02-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Music festival” means a musical performance by one or more groups held out of doors with the audience being present primarily for the purpose of listening to music.
  2. “Person” means a natural person, firm, association, corporation, or limited liability company.
  3. “Public concert” means a musical performance by one or more groups held indoors where the audience is seated by reserve or general admission with the audience being present primarily for the purpose of listening to music and the location of such musical performance having a seating capacity of at least one thousand people.
  4. “Public dance” means any dance where the public may participate and is present primarily for the sole purpose of dancing and where the location of the dance has a capacity of at least one hundred people.
  5. “Public dancing place” means a room, place, or space, which has a capacity of at least one hundred people, open to public patronage where dancing in which the public may participate is carried on and where the public is present primarily for the sole purpose of dancing.

Source:

S.L. 1925, ch. 128, § 1; 1925 Supp., § 3163a1; S.L. 1939, ch. 136, § 1; 1941, ch. 147, § 1; R.C. 1943, § 53-0201; S.L. 1973, ch. 401, § 1; 1977, ch. 471, § 1; 1981, ch. 510, § 1; 1983, ch. 544, § 1; 1985, ch. 547, § 1; 1993, ch. 54, § 106.

Notes to Decisions

Purpose of Statute.

The regulatory statutes contained in this chapter show a legislative intent to surround dances and public dancing with all the protection possible against such unwholesome, harmful, or bad influences as may possibly arise surrounding them or be associated with the conduct of a public dance. State v. Johnson, 88 N.W.2d 209, 1958 N.D. LEXIS 67, decided prior to the adoption of N.D.R.Crim.P. 29.

DECISIONS UNDER PRIOR LAW

“Guardian.”

Under repealed section 53-02-10, prohibiting admission of minors to public dance unless accompanied by parent or guardian, “guardian” referred to person occupying, under the law, the relation created by natural law between a parent and child or created by order of court; neither accompaniment of minor by a chaperone, escort, neighbor or adult friend who might supervise such minor at dance or authorization by parents for owner or proprietor of public dancing place to admit and supervise their minor child satisfied the requirement that minor be accompanied by parent or guardian; responsibility of complying with statute rested upon licensee and he was responsible for admission of minors by his employees; no criminal intent or guilty knowledge was required for violation of statute. State v. Johnson, 88 N.W.2d 209 (N.D. 1958), overruled on other grounds, State v. Allen, 237 N.W.2d 154 (N.D. 1975), decided prior to the adoption of N.D.R.Crim.P. 29.

Collateral References.

Nuisances, public dances or dance halls as, 44 A.L.R.2d 2381.

Nuisance, drive-in theatre or other outdoor dramatic or musical entertainment as, 93 A.L.R.2d 1171.

53-02-02. Permit for public dance, music festival, or public concert required — Exception. [Repealed]

Repealed by S.L. 1983, ch. 544, § 3.

53-02-03. Who shall issue permits — Permit not transferable. [Repealed]

Repealed by S.L. 1983, ch. 544, § 3.

53-02-04. Refusal of permit — Reasons in writing — Appeal. [Repealed]

Repealed by S.L. 1983, ch. 544, § 3.

53-02-05. Application for permit — Special permits. [Repealed]

Repealed by S.L. 1983, ch. 544, § 3.

53-02-06. Inquiry by governing body as to granting a permit. [Repealed]

Repealed by S.L. 1983, ch. 544, § 3.

53-02-07. Public dancing place — Restrictions. [Repealed]

Repealed by S.L. 1983, ch. 544, § 3.

53-02-08. Officer of law to be in attendance at public dance, music festival, or public concert.

The sheriff in any county in which any public dance, music festival, or public concert is held outside of an incorporated city, and the chief peace officer of the city where the dance, music festival, or public concert is held within the limits of a city, may police the dance, music festival, or public concert so that law and order are there maintained. The sheriff or the chief peace officer shall determine the number, if any, of deputy sheriffs, special officers, or licensed private security officers needed to police the dance, music festival, or public concert properly. The person conducting the dance, music festival, or public concert, before the dance, music festival, or public concert is held, shall pay to the sheriff, peace officer, or licensed private security provider the expense of any deputy sheriff, special officer, or licensed private security officer required for the proper policing of the dance, music festival, or public concert, and no dance, music festival, or public concert may be permitted to proceed unless the officer or officers are present and the fees are paid. The holding of a dance, music festival, or public concert without giving notice of the dance, music festival, or public concert to the sheriff of the county or the peace officer of the city, and without making provision for the policing of the dance, music festival, or public concert, is unlawful. No person, directly or indirectly interested or concerned in the giving, holding, or conducting of a public dance, music festival, or public concert, or connected with the person conducting the same, is eligible to appointment under this section as a special officer.

Source:

S.L. 1925, ch. 128, § 6; 1925 Supp., § 3163a6; R.C. 1943, § 53-0208; S.L. 1967, ch. 323, § 234; 1973, ch. 401, § 5; 1975, ch. 106, § 568; 1977, ch. 471, § 2; 1981, ch. 510, § 6; 1983, ch. 544, § 2; 1993, ch. 498, § 1; 1997, ch. 427, § 1.

Notes to Decisions

Township Action.

It is not the duty of township officers to enforce this statute, except in the granting or refusing to grant permits. Denmark Township v. Ukkelberg, 60 N.D. 508, 235 N.W. 353, 1931 N.D. LEXIS 196 (N.D. 1931).

53-02-09. Refusal and revocation of permit for cause. [Repealed]

Repealed by S.L. 1983, ch. 544, § 3.

53-02-10. Admission of certain minors to public dance prohibited — Exception. [Repealed]

Repealed by S.L. 1973, ch. 402, § 1.

53-02-11. Notice as to minors — Posting required. [Repealed]

Repealed by omission from this code.

53-02-12. Dancing prohibited on premises adjacent to premises where liquor sold — Penalty. [Repealed]

Repealed by S.L. 1963, ch. 342, § 1.

53-02-13. Failure of officers to enforce — Ground for removal. [Repealed]

Repealed by omission from this code.

53-02-14. Penalty. [Repealed]

Repealed by omission from this code.

53-02-15. General penalty. [Repealed]

Except as otherwise may be provided, any person violating any provision of this chapter is guilty of a class B misdemeanor.

Source:

S.L. 1923, ch. 169, § 3; 1925, ch. 128, § 9; 1925 Supp., §§ 3163a9, 9609a3; R.C. 1943, § 53-0215; S.L. 1975, ch. 106, § 569.

CHAPTER 53-03 Carnivals

53-03-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Carnival” means an aggregation of attractions including any show, circus, act, game, vending device, or amusement device, whether conducted under one management or more, or independently, temporarily set up or conducted in a public place or upon any private premises accessible to the public with or without admission fee, which, from the nature of the aggregation, attracts attendance and causes promiscuous commingling of persons in the spirit of merrymaking and revelry.
  2. “Fair board” means the officers of any state or county fair association, or the agents of any such board, duly authorized to make any contract or issue any permit as provided in this chapter.
  3. “Governing body” means a city council, or a board of city commissioners, as the case may be, or the agents of any such governing body duly authorized to make any contract or to issue any permit as provided in this chapter.
  4. “Person” means any natural person, firm, corporation, or limited liability company or the clerk, agent, or abettor of any such person, firm, corporation, or limited liability company.

Source:

S.L. 1923, ch. 149, § 1; 1925 Supp., § 2873a1; R.C. 1943, § 53-0301; S.L. 1967, ch. 323, § 235; 1993, ch. 54, § 106.

53-03-02. Carnivals — When permitted — Prohibitions.

No person may set up, run, operate, or conduct within this state any itinerant carnival except within the limits of an incorporated municipality, or within the limits or upon the grounds of a state or county fair association, and then only when such person shall have procured and shall have in the person’s possession a written contract and permit from the governing body of the municipality or the fair board of the fair association where such carnival is set up and operated, setting forth the conditions under which such carnival must be operated.

Source:

S.L. 1923, ch. 149, § 2; 1925 Supp., § 2873a2; R.C. 1943, § 53-0302.

Cross-References.

Director of fair association not liable for negligence of person staging show, see § 4-02-02.

53-03-03. Permit required — Terms upon which granted.

A permit to conduct a carnival must be granted upon the condition, and the contract must state, that there may not be:

  1. Set up or operated any gambling device, lottery, number or paddlewheel, number board, punchboard, or other game of chance or skin game of any kind, except as otherwise permitted by law; or
  2. Any lewd, lascivious, or indecent show, indecent exposure of the person, suggested lewdness or immorality, any indecent dance where persons perform, or any other lewd, immoral, or indecent show or attraction.

Source:

S.L. 1923, ch. 149, § 2; 1925 Supp., § 2873a2; R.C. 1943, § 53-0303; S.L. 1989, ch. 181, § 12; 1995, ch. 61, § 9.

Cross-References.

Restrictions relating to amusements, see chapter 53-05.

53-03-04. Powers and duties of governing body or fair board.

No governing body or fair board may grant a permit to operate a carnival until it shall have investigated the same and shall have become satisfied that, if a permit is granted, it will be operated according to law, and that none of the illicit or unlawful acts mentioned in the contract will be permitted.

Source:

S.L. 1923, ch. 149, § 3; 1925 Supp., § 2873a3; R.C. 1943, § 53-0304.

53-03-05. Authority of governing body and fair board.

If a governing body or fair board determines that an application for a permit should be granted, it shall:

  1. Enter into a contract such as is prescribed by section 53-03-02;
  2. Issue a permit to operate a carnival;
  3. Collect such permit fees as are necessary to pay the expenses of the investigation required by this chapter;
  4. Aid in policing the carnival grounds and in otherwise compensating the municipality or association interested in such amount as may be determined; and
  5. Require the permittee to execute and deliver to such municipality or association a bond in a penal sum not exceeding five hundred dollars, to be approved by the governing body or fair board, conditioned for the faithful conduct of such carnival in accordance with the governing laws and ordinances, and that the same must be forfeited upon the violation of the provisions thereof.

Source:

S.L. 1923, ch. 149, § 3; 1925 Supp., § 2873a3; R.C. 1943, § 53-0305.

53-03-06. Board to enforce provisions — Free access of officers.

The governing body or fair board shall enforce the provisions of the carnival contract, of this chapter, and of any ordinances of the municipality regulating carnivals. Each permit must contain a provision that sheriffs and police officers shall have free access to the grounds and all booths, shows, and concessions thereon at all times, and all officers present at such carnival shall enforce all the provisions of this chapter and other governing statutes of this state.

Source:

S.L. 1923, ch. 149, § 3; 1925 Supp., § 2873a3; R.C. 1943, § 53-0306; S.L. 1985, ch. 151, § 32.

53-03-07. Permit in possession of board — To be shown.

The contract and permit authorized by this chapter must be made in duplicate. One must be in the possession of the governing body or fair board and the other in the possession of the manager of such carnival, and in either case, upon request of an officer or citizen, must be produced and shown. Refusal to show the same to one asking to see it is presumptive evidence that such carnival is being operated without such contract or permit.

Source:

S.L. 1923, ch. 149, § 4; 1925 Supp., § 2873a4; R.C. 1943, § 53-0307.

53-03-08. Penalty.

Any person who violates any of the provisions of this chapter is guilty of a class B misdemeanor.

Source:

S.L. 1923, ch. 149, § 5; 1925 Supp., § 2873a5; R.C. 1943, § 53-0308; S.L. 1975, ch. 106, § 570.

CHAPTER 53-04 Licensing of Amusement Games

53-04-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Amusement games or devices” includes such coin-operated games and devices as electric ray guns, music boxes, picture boxes, bumper-ball or pinball, and other similar coin-operated miniature games or devices, whether or not they show a score, but does not apply to any machine which may constitute a lottery under the laws of this state.
  2. “Person” includes any partnership, corporation, or limited liability company.

Source:

S.L. 1941, ch. 181, § 2; R.C. 1943, § 53-0401; S.L. 1951, ch. 299, § 1; 1957 Supp., § 53-0401; S.L. 1983, ch. 545, § 1; 1993, ch. 54, § 106.

DECISIONS UNDER PRIOR LAW

Juke Box.

A “juke box” was not an “amusement game” and where the title of S.L. 1941, ch. 181 restricted the act to amusement games, the requirement that “juke boxes” be licensed was unconstitutional. Dornacker v. Strutz, 71 N.D. 449, 1 N.W.2d 614, 1941 N.D. LEXIS 185 (N.D. 1941).

An electric automatic phonograph, popularly known as a “juke box”, was a “music box” within S.L. 1941, ch. 181. Dornacker v. Strutz, 71 N.D. 449, 1 N.W.2d 614, 1941 N.D. LEXIS 185 (N.D. 1941).

53-04-02. Annual license required — Fee.

A person may not operate, lease, or distribute an amusement game or device without first having obtained an annual license.

Licenses are of two types. An operator’s license entitles the licensee to operate, lease, or distribute machines at locations not owned or managed by the licensee. The operator shall affix to each machine an operator’s number provided by the attorney general. The operator shall have a business office within the state and a valid sales tax permit. A location license must be secured by an individual for any establishment managed or owned by that person. A location license entitles the licensee to have not more than ten machines at one location managed or owned by that individual. An individual is not entitled to more than one location license. The location license must be displayed on or near the machines.

The annual fee for an operator’s license is one thousand dollars. The annual fee for a location license is twenty-five dollars per machine.

A reinstatement fee of one hundred dollars for an operator’s license renewal and fifty dollars for a location license renewal is required in addition to the annual license fee for each license renewal applied for after June thirtieth.

Source:

S.L. 1941, ch. 181, § 1; R.C. 1943, § 53-0402; S.L. 1951, ch. 299, § 2; 1957 Supp., § 53-0402; S.L. 1971, ch. 485, § 1; 1983, ch. 545, § 2; 1985, ch. 548, § 1; 1991, ch. 78, § 3; 1991, ch. 544, § 1.

Collateral References.

Validity and construction of statute or ordinance regulating commercial video game enterprises, 38 A.L.R.4th 930.

53-04-03. Annual license required — Fee. [Repealed]

Repealed by S.L. 1983, ch. 545, § 4.

53-04-04. Annual license fee. [Repealed]

Repealed by S.L. 1983, ch. 545, § 4.

53-04-05. Administering and enforcing provisions of chapter — Confiscation of machines and devices.

The attorney general shall administer and enforce the provisions of this chapter and may adopt rules as deemed necessary and expedient. The attorney general may confiscate all machines and devices that are not covered by an appropriate license or are machines primarily designed for gambling.

Source:

S.L. 1941, ch. 181, § 5; R.C. 1943, § 53-0405; S.L. 1951, ch. 299, § 5; 1957 Supp., § 53-0405; S.L. 1983, ch. 545, § 3.

Collateral References.

Validity and construction of statute or ordinance regulating commercial video game enterprises, 38 A.L.R.4th 930.

53-04-06. License to be displayed. [Repealed]

Repealed by S.L. 1983, ch. 545, § 4.

53-04-07. All money remitted to state treasurer.

All money collected under the provisions of this chapter for licenses on amusement devices must be remitted to the state treasurer and must be credited to the general fund of the state.

Source:

S.L. 1941, ch. 181, § 7; R.C. 1943, § 53-0407; S.L. 1951, ch. 300, § 1; 1957 Supp., § 53-0407.

53-04-08. Penalty.

Any person engaged in the operating or displaying to the public of any amusement device, whether one or more, in violation of any of the provisions of this chapter is guilty of a class B misdemeanor.

Source:

S.L. 1941, ch. 181, § 9; R.C. 1943, § 53-0408; S.L. 1975, ch. 106, § 571.

CHAPTER 53-04.1 Amusement Concessions

53-04.1-01. Definitions.

  1. “Amusement concession” means any place where a single amusement game or device, or bingo, is conducted by a person for profit, and includes the area within which are confined the equipment, playing area, and other personal property necessary for the conduct of the game.
  2. “Amusement games or devices” means such games and devices as electric ray guns, music boxes, picture boxes, bumper-ball, or pinball, and other similar miniature games or devices, whether or not they show a score, if a charge for playing or operating is collected, but do not include any machine which may constitute a lottery under the laws of this state. “Amusement games or devices” also means a game, contest, scheme, or device in which a person stakes or risks something of value for an opportunity to win something of value and in which the outcome depends in a material degree upon an element of chance, notwithstanding a person’s skill may also be a factor.
  3. “Bingo” means that game in which each participant receives one or more cards, each of which is marked off into twenty-five squares and five horizontal rows of five squares each and five vertical rows of five squares each. Each square is designated by number, letter, or combination of numbers and letters, no two cards being identical. The players cover squares as the operator of such game announces the number, letter, or combination of numbers and letters appearing on an object selected by chance, either manually or mechanically, from a receptacle in which have been placed objects bearing numbers, letters, or combination of numbers and letters corresponding to the system used for designating the squares. The winner of each game is the player or players first properly covering a predetermined and announced pattern of squares on a card being used by the player or players.
  4. “Carnival” means an aggregation of attractions including any show, circus, act, game, vending device, or amusement device, whether conducted under one management or more, or independently, temporarily set up or conducted in a public place or upon any private premises accessible to the public with or without admission fee, which, from the nature of the aggregation, attracts attendance and causes promiscuous commingling of persons in the spirit of merrymaking and revelry.
  5. “Conducts” means a specified activity which occurs when a person owns, promotes, sponsors, or operates a game or activity. A natural person does not conduct a game or activity if the person is a participant in a game or activity which complies with this chapter.
  6. “Fair” means an annual fair or exposition held by the North Dakota state fair board or any county fair board.
  7. “Fair board” means the officers of any state or county fair association, or the agents of any such board, duly authorized to make any contract or issue any permit as provided in this chapter.
  8. “Gross proceeds” means the total revenue received as rent for the privilege of conducting amusement games or devices or bingo.
  9. “Licensee” means an eligible organization licensed under the provisions of this chapter.
  10. “Licensing authority” means the attorney general of the state of North Dakota.
  11. “Net proceeds” means gross proceeds less cash prizes or the price of merchandise prizes.
  12. “Person” means any natural person, firm, partnership, corporation, or limited liability company.
  13. “Posted” means that the person conducting a game has caused to be placed near the front or playing area of the game a sign at least thirty inches by thirty inches [76.2 centimeters by 76.2 centimeters], with permanent material and lettering stating, at the top in letters at least three inches [7.62 centimeters] high, “Rules of the Game”. Thereunder, in large, easily readable print, the name of the game, the price to play the game, the complete rules for the game, and the name and permanent mailing address of the owner of the game must be stated.
  14. “Raffle” means a lottery in which each participant buys a ticket for a chance at a prize with the winner determined by a random method. “Raffle” does not include a slot machine.
  15. “Rent” means the amount paid by a person or organization for the use of space to conduct amusement games or devices or bingo.

Source:

S.L. 1981, ch. 512; § 1; 1993, ch. 54, § 106.

Collateral References.

27A Am. Jur. 2d, Entertainment and Sports Law, §§ 3, 9-15.

53-04.1-02. Organizations eligible.

Fair boards may conduct or authorize a person to conduct amusement games or devices or bingo under the conditions of this chapter. Notwithstanding any other provisions of this chapter, fair boards may use the net proceeds of such amusement games or devices or bingo or may use the rent as defined in this chapter to directly benefit the fair board. It is the finding of the legislative assembly that it is in the public interest to preserve agricultural fairs and expositions.

Source:

S.L. 1981, ch. 512, § 2.

53-04.1-03. License — Fees — Application — Suspension — Revocation.

A fair board shall apply for a license to conduct amusement games or devices or bingo from the attorney general at least thirty days before the operation of such games. Application must be made upon forms prescribed by the attorney general along with the submission of a fifty dollar license fee.

The license application must be signed and sworn to by the applicant and must contain the following:

  1. The name and post-office address of the applicant.
  2. The location at which the organization will conduct the amusement games or devices or bingo, whether the organization owns or leases the premises, and a copy of the rental agreement if it leases the premises.
  3. A statement of the applicant’s previous history and association sufficient to establish the applicant is an eligible organization.
  4. A statement of the educational, charitable, patriotic, fraternal, religious, or other public-spirited uses to which the net proceeds of an amusement game or device or bingo will be devoted.
  5. Such other reasonable and necessary information as the attorney general may require.

The attorney general shall license applicant organizations which conform to the requirements of this chapter to conduct amusement games or devices or bingo. In addition, the attorney general may, on the attorney general’s own motion based on reasonable grounds or on written complaint, suspend or revoke a license in accordance with chapter 28-32 for violation, by the licensee or other officer, director, agent, member, or employee of such licensee, of this chapter or any rule adopted pursuant to this chapter. Each amusement game or device must be licensed by the attorney general’s office in accordance with chapter 53-04.

Source:

S.L. 1981, ch. 512, § 3.

53-04.1-04. Amusement concessions.

An amusement game or device or bingo is lawful when conducted by a person at an amusement concession, but only if all of the following are complied with:

  1. The location where the game is conducted by the person has been authorized as provided in section 53-04.1-05.
  2. The person conducting the game has been issued a license pursuant to this chapter and prominently displays the license at the playing area of the game.
  3. Games of chance other than the licensed game are not conducted or engaged in at the amusement concession.
  4. The game is posted and the cost to play the game does not exceed five dollars.
  5. A prize is not displayed which cannot be won.
  6. Cash prizes in excess of five dollars are not awarded and merchandise prizes are not repurchased.
  7. The game is not operated on a build-up or pyramid basis except a trade up of a prize is allowed.
  8. Concealed numbers or conversion charts are not used to play the game and the game is not designated or adapted with any control device to permit manipulation of the game by the operator to prevent a player from winning or to predetermine who the winner will be. The object target, block, or object of the game must be attainable and possible to perform under the rules stated from the playing position of the player.
  9. The game is conducted in a fair and honest manner.
  10. A person under the age of eighteen may not play any amusement game or device, except bingo, in which cash prizes are awarded.

Source:

S.L. 1981, ch. 512, § 4; 1995, ch. 61, § 10.

53-04.1-05. Permitted locations.

An amusement game or device or bingo may be lawfully conducted by a person at an amusement concession provided the person has written authorization from the sponsor of the fair to conduct the amusement game or device or bingo.

Source:

S.L. 1981, ch. 512, § 5.

53-04.1-06. Examination of books and records.

The licensing authority and its agents, and representatives of the governing body of a city or county with respect to a fair board authorized by that governing body, shall have the power to examine or cause to be examined the books and records of any fair board licensed or authorized to conduct amusement games or devices or bingo under this chapter to the extent that such books and records relate to any transaction connected with holding, operating, or conducting of any amusement game or device or bingo.

Source:

S.L. 1981, ch. 512, § 6.

53-04.1-07. Rules.

The licensing authority may adopt rules in accordance with chapter 28-32 relating to, but not limited to, methods of play, conduct, and promotion of amusement games or devices or bingo; methods, procedures, and minimum standards for accounting and recordkeeping; requiring reports by licensees and authorized organizations; ensuring that the entire net proceeds of amusement games or devices or bingo are devoted to educational, charitable, patriotic, fraternal, religious, or other public-spirited uses as defined by this chapter; protecting and promoting the public interest; ensuring fair and honest amusement games or devices or bingo; ensuring that fees and taxes are paid; and seeking to prevent or detect unlawful gambling activity.

Source:

S.L. 1981, ch. 512, § 7.

53-04.1-08. Violation of chapter — Misdemeanor — Forfeiture of licensure — Ineligibility for two years.

Any person who knowingly makes a false statement in any application for a license or authorizing resolution or in any statement annexed thereto, or who fails to keep sufficient books and records to substantiate the receipts, expenses, or uses resulting from amusement games or devices or bingo conducted under this chapter or who falsifies any books or records so far as they relate to any transaction connected with the holding, operating, and conducting of any amusement game or device or bingo or who violates any of the provisions of this chapter, any rule adopted hereunder, or of any term of a license is guilty of a class A misdemeanor. If convicted, such organization or person shall forfeit any license or authorizing resolution issued to it pursuant to this chapter and is ineligible to reapply for a license or authorization for two years thereafter.

Source:

S.L. 1981, ch. 512, § 8.

CHAPTER 53-05 Restrictions Relating to Amusements

53-05-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Fair” means any fair or exposition.
  2. “Person” means any natural person, copartnership, association, corporation, or limited liability company.

Source:

R.C. 1943, § 53-0501; S.L. 1993, ch. 54, § 106.

53-05-02. Carnivals — When prohibited — Exceptions.

A person may not conduct any circus or carnival in any city, or within a radius of thirty miles [48.28 kilometers] of any city, within this state, at or near which any state, county, or district fair association operates an agricultural and livestock exposition or fair, within a period of thirty days next preceding the date advertised and set for such exposition or fair, nor during the time of holding the same unless:

  1. The officials of such fair or exposition consent to the holding thereof;
  2. Such circus or carnival is held in conjunction with such fair or exposition or some other civic-sponsored festival or outdoor event; or
  3. The circus or carnival is held outside the boundaries of the county in which the fair or exposition is held.

Nothing in this section exempts such circus or carnival from obtaining a proper license or permit, as provided by law, for the holding thereof.

Source:

S.L. 1929, ch. 196, § 1; R.C. 1943, § 53-0502; S.L. 1995, ch. 61, § 11.

Cross-References.

Permit for carnival, see chapter 53-03.

Sports on Memorial Day, see § 1-03-03.

53-05-03. Exhibitions — Filing.

Every person managing, promoting, or producing any public exhibition, show, circus, carnival, auto race, motorcycle race, auto polo game, airplane exhibition, ferris wheel, merry-go-round, seaplane, caterpillar, or similar exhibition other than a horse race, rodeo, bicycle race, or entertainment in which motor power is not used, before producing or exhibiting the same shall file with the county auditor of the county in which such performance or exhibition is to take place:

  1. A copy of the contract, if any, under which such exhibition, amusement, or entertainment will be given; and
  2. The correct post-office address of the principal place of business of the person producing the same.

Source:

S.L. 1929, ch. 197, §§ 1, 4; R.C. 1943, § 53-0503.

53-05-04. Service of process upon secretary of state.

In any action or proceeding upon a claim arising out of conduct regulated by this chapter, service of process may be made upon the secretary of state. When served with process, such official, if possible, immediately shall ascertain the post-office address of such person and shall forward a copy of the process served by registered or certified mail to such person. Such service of process upon the secretary of state for all purposes of such suit, and any verdict rendered or judgment entered therein, must be deemed legal and valid personal service of process the same as though made personally upon such person.

Source:

S.L. 1929, ch. 197, § 1; R.C. 1943, § 53-0504.

53-05-05. Definition of physical endurance contests — Prohibited. [Repealed]

Repealed by S.L. 1981, ch. 513, § 2.

53-05-06. Penalty.

Any person who violates any provision of section 53-05-02 or 53-05-03 is guilty of a class B misdemeanor.

Source:

S.L. 1929, ch. 196, § 2; 1929, ch. 197, § 3; 1935, ch. 130, § 2; R.C. 1943, § 53-0506; S.L. 1975, ch. 106, § 572; 1981, ch. 513, § 1.

53-05-07. Amusement places — Penalty for screening. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

53-05-08. Minors not allowed in certain public places — Exception — Penalty. [Repealed]

Repealed by S.L. 1973, ch. 402, § 1.

CHAPTER 53-05.1 Amusement Rides

53-05.1-01. Definition.

As used in this chapter, “amusement ride” means any mechanical device that carries or conveys passengers along, around, or over a fixed or restricted route or course or within a defined area for the purpose of giving its passengers amusement, pleasure, or excitement. The term does not include:

  1. A single-passenger, coin-operated ride that is manually, mechanically, or electrically operated and customarily placed in a public location and that does not normally require the supervision or services of an operator.
  2. Nonmechanized playground equipment, including swings, seesaws, stationary spring-mounted animal features, rider-propelled merry-go-rounds, climbers, slides, trampolines, and physical fitness devices.

Source:

S.L. 1989, ch. 611, § 1.

53-05.1-02. Affidavit of inspection and insurance.

No person may operate an amusement ride unless that person has filed with the governing body of the city or county where that person is intending to operate the amusement ride an affidavit that the ride has been inspected by a qualified inspector of an insurance underwriter and that the owner or operator has a current insurance policy in force written by an insurance company authorized to do business in this state. The policy must insure the owner or operator against liability for injury to persons arising out of the use of the amusement ride in an amount of not less than five hundred thousand dollars per occurrence or an aggregate of not less than one million dollars.

Source:

S.L. 1989, ch. 611, § 2.

53-05.1-03. Records required.

The owner or operator of an amusement ride shall retain at all times up-to-date maintenance and inspection records for the amusement ride and, upon request, provide those records to the governing body of the city or county in which the person is intending to operate the amusement ride. In addition, the owner or operator of an amusement ride shall provide to the governing body of the city or county a copy of any report of an accident related to an amusement ride submitted by that person to an insurer within the last year.

Source:

S.L. 1989, ch. 611, § 3.

53-05.1-04. Operator — Requirements.

A person may not operate an amusement ride unless that person is at least sixteen years of age. An operator must be in attendance at all times that an amusement ride is in operation.

Source:

S.L. 1989, ch. 611, § 4.

53-05.1-05. Penalty — Injunction.

A person who violates this chapter is guilty of a class A misdemeanor. The governing body of a city or county may seek an injunction against a person operating an amusement ride in violation of this chapter.

Source:

S.L. 1989, ch. 611, § 5.

CHAPTER 53-06 Licensing Games and Amusements [Repealed]

[Repealed by S.L. 1979, ch. 444, § 2]

CHAPTER 53-06.1 Games of Chance

53-06.1-01. Definitions.

As used in this chapter:

  1. “Adjusted gross proceeds” means gross proceeds less cash prizes, cost of merchandise prizes, gaming tax, and federal excise tax imposed under section 4401 of the Internal Revenue Code [26 U.S.C. 4401].
  2. “Charitable organization” means an organization whose primary purpose is for relief of poor, distressed, underprivileged, diseased, elderly, or abused persons, prevention of cruelty to children or animals, or similar condition of public concern.
  3. “Civic and service organization” means an organization whose primary purpose is to promote the common good and social welfare of a community as a sertoma, lion, rotary, jaycee, kiwanis, or similar organization.
  4. “Closely related organization” means an organization that controls, is controlled by, or is under common control with another organization. Control exists when an organization has the authority or ability to elect, appoint, or remove a majority of the officers or directors of another organization or, by policy, contract, or otherwise, has the authority or ability to directly or indirectly direct or cause the direction of the management or policies of another organization.
  5. “Distributor” means a person that sells, markets, or distributes equipment designed for use in the conduct of games.
  6. “Educational organization” means a nonprofit public or private elementary or secondary school, two-year or four-year college, or university.
  7. “Electronic pull tab device” means a device, approved by the attorney general, which electronically displays pull tabs.
  8. “Eligible organization” means a veterans, charitable, educational, religious, fraternal, civic and service, public safety, or public-spirited organization domiciled in North Dakota or authorized by the secretary of state as a foreign corporation under chapter 10-33, incorporated as a nonprofit organization, and which has been regularly and actively fulfilling its primary purpose within this state during the two immediately preceding years. However, an educational organization does not need to be incorporated or be in existence for two years. An organization’s primary purpose may not involve the conduct of games. The organization may be issued a license by the attorney general. For purposes of this section, a foreign corporation authorized under chapter 10-33 is not an eligible organization unless authorized to conduct a raffle under chapter 20.1-04 or 20.1-08 and may not conduct a game other than a raffle under chapter 20.1-04 or 20.1-08.
  9. “Fraternal organization” means an organization, except a school fraternity, which is a branch, lodge, or chapter of a national or state organization and exists for the common business, brotherhood, or other interests of its members. The organization must have qualified for exemption from federal income tax under section 501(c)(8) or 501(c)(10) of the Internal Revenue Code.
  10. “Games” means games of chance.
  11. “Gross proceeds” means all cash and checks received from conducting games.
  12. “Licensed organization” means an eligible organization licensed by the attorney general.
  13. “Manufacturer” means, for a pull tab or bingo card, a person who designs, prints, assembles, or produces the product. For a pull tab dispensing device, bingo card marking device, or a fifty-fifty raffle system, a manufacturer means the person who directly controls and manages development of and owns the rights to the proprietary software encoded on a processing chip that enables the device to operate.
  14. “Net income” means gross proceeds less cash prizes, cost of merchandise prizes, and expenses to conduct the gaming activity.
  15. “Net proceeds” means adjusted gross proceeds less allowable expenses and gaming tax.
  16. “Permit” means a local permit or restricted event permit issued by a governing body of a city or county to a nonprofit organization or group of people domiciled in North Dakota.
  17. “Person” means any person, partnership, corporation, limited liability company, association, or organization.
  18. “Prize board” means a board used with pull tabs to award cash or merchandise prizes.
  19. “Public safety organization” means an organization whose primary purpose is to provide firefighting, ambulance service, crime prevention, or similar emergency assistance.
  20. “Public-spirited organization” means an organization whose primary purpose is for scientific research, amateur sports competition, safety, literary, arts, preservation of cultural heritage, educational activities, educational public service, youth, economic development, tourism, community medical care, community recreation, or similar organization, which does not meet the definition of any other type of eligible organization. However, a nonprofit organization or a group of people recognized as a public-spirited organization by a governing body of a city or county for obtaining a permit does not need to meet this definition.
  21. “Pull tab” means a folded or banded ticket or jar ticket, a pull tab card with break-open tabs, or an electronic pull tab displaying concealed numbers or symbols or combinations of concealed numbers and symbols which are exposed by a player to determine the outcome. The terms “pull tab” and “jar ticket” are used interchangeably unless otherwise stated. A winning pull tab contains certain symbols, numbers, or combinations of symbols and numbers and may contain multiple winning symbols, numbers, or combinations of symbols and numbers which have been previously designated as winning symbols or numbers.
  22. “Religious organization” means a church, body of communicants, or group gathered in common membership whose primary purpose is for advancement of religion, mutual support and edification in piety, worship, and religious observances.
  23. “Veterans organization” means any congressionally chartered post organization, or any branch or lodge or chapter of a nonprofit national or state organization whose membership consists of individuals who are or were members of the armed services or forces of the United States. The organization must have qualified for exemption from federal income tax under section 501(c)(19) of the Internal Revenue Code.

Source:

S.L. 1981, ch. 514, § 1; 1983, ch. 546, §§ 2, 3; 1985, ch. 549, § 1; 1987, ch. 608, § 1; 1987, ch. 609, § 1; 1987, ch. 610, § 1; 1989, ch. 612, § 1; 1991, ch. 28, § 20; 1991, ch. 545, § 1; 1991, ch. 546, § 1; 1991, ch. 547, § 1; 1993, ch. 54, § 106; 1993, ch. 499, § 1; 1995, ch. 484, § 1; 1997, ch. 428, § 3; 1997, ch. 429, § 1; 1999, ch. 441, § 1; 2001, ch. 460, § 3; 2003, ch. 449, § 1; 2003, ch. 450, § 1; 2007, ch. 446, § 1; 2009, ch. 450, § 1; 2009, ch. 451, § 1; 2011, ch. 379, § 1; 2011, ch. 378, § 1; 2017, ch. 359, § 1, eff August 1, 2017; 2017, ch. 360, § 1, eff August 1, 2017; 2019, ch. 427, § 1, eff August 1, 2019.

Effective Date.

The 2011 amendment of this section by section 1 of chapter 379, S.L. 2011 became effective August 1, 2011.

The 2011 amendment of this section by section 1 of chapter 378, S.L. 2011 became effective July 1, 2011.

The 2009 amendment of this section by section 1 of chapter 450, S.L. 2009 became effective July 1, 2009.

The 2009 amendment of this section by section 1 of chapter 451, S.L. 2009 became effective August 1, 2009.

The 2007 amendment of this section by section 1 of chapter 446, S.L. 2007 became effective July 1, 2007.

Note.

Section 53-06.1-01 was amended 2 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 1 of Chapter 359, Session Laws 2017, House Bill 1216; and Section 1 of Chapter 360, Session Laws 2017, Senate Bill 1415.

Collateral References.

Validity of statute or ordinance prohibiting or regulating bookmaking or pool selling, 80 A.L.R.4th 1079.

Validity, construction, and application of statute or ordinance prohibiting or regulating use or occupancy of premises for bookmaking or pool selling, 82 A.L.R.4th 356.

Construction and application of statute or ordinance prohibiting or regulating bookmaking or pool selling, 84 A.L.R.4th 740.

53-06.1-01.1. Gaming commission.

  1. The state gaming commission consists of the chairman and four other members appointed by the governor, with the consent of the senate. The members serve three-year terms and until a successor is appointed and qualified. If the senate is not in session when the term of a member expires, the governor may make an interim appointment, and the interim appointee holds office until the senate confirms or rejects the appointment. A member appointed to fill a vacancy arising from other than the natural expiration of a term serves only for the unexpired portion of the term. The terms of the commissioners must be staggered so no more than two terms expire each July first.
  2. A person is ineligible for appointment to the commission if that person has not been a resident of this state for at least two years before the date of appointment. A person is also ineligible if that person is not of such character and reputation as to promote public confidence in the administration of gaming in this state. A person is also ineligible if that person has been convicted of a felony criminal offense or has pled guilty or been found guilty of any violation of chapter 12.1-06, 12.1-08, 12.1-09, 12.1-10, 12.1-11, 12.1-12, 12.1-22, 12.1-23, 12.1-24, 12.1-28, 53-06.1, or 53-06.2, or has pled guilty or been found guilty of any violation of section 6-08-16 or 6-08-16.2, or has pled guilty or been found guilty of any offense or violation that has a direct bearing on the person’s fitness to be involved in gaming, or who has committed an equivalent offense or violation of the laws of another state or of the United States. A person who has a financial interest in gaming or is an employee or a member of the gaming committee of a licensed organization or distributor cannot be a member of the commission. For the purpose of this subsection, a financial interest includes the receiving of any direct payment from an eligible organization for property, services, or facilities provided to that organization.
  3. Commission members are entitled to seventy-five dollars per day for compensation for each day spent on commission duties and mileage and expense reimbursement as allowed to other state employees.
  4. The commission shall adopt rules in accordance with chapter 28-32, to administer and regulate the gaming industry, including methods of conduct, play, and promotion of games; minimum procedures and standards for recordkeeping and internal control; requiring tax returns and reports from organizations or distributors; methods of competition and doing business by distributors and manufacturers; acquisition and use of gaming equipment; quality standards or specifications for the manufacture of pull tabs, paper bingo cards, electronic pull tab devices, pull tab dispensing devices, bingo card marking devices, and fifty-fifty raffle systems; to ensure that net proceeds are used for educational, charitable, patriotic, fraternal, religious, or public-spirited uses; to protect and promote the public interest; to ensure fair and honest games; to ensure that fees and taxes are paid; and to prevent and detect unlawful gambling activity.

Source:

S.L. 1991, ch. 28, § 21; 1993, ch. 499, § 2; 1993, ch. 500, § 1; 1995, ch. 484, § 2; 1997, ch. 428, § 4; 1999, ch. 441, § 2; 2001, ch. 460, § 4; 2003, ch. 449, § 2; 2017, ch. 359, § 2, eff August 1, 2017; 2017, ch. 360, §§ 2, 3, eff August 1, 2017.

Note.

Section 53-06.1-01.1 was amended 2 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 2 of Chapter 359, Session Laws 2017, House Bill 1216; and Section 2 of Chapter 360, Session Laws 2017, Senate Bill 1415.

53-06.1-01.2. Duty of attorney general to participate in certain hearings — Employment of private counsel by commission. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-02. Organizations eligible — Use of net proceeds. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-02.1. Waiver of two-year active requirement — Local permit. [Repealed]

Repealed by S.L. 1995, ch. 484, § 35.

53-06.1-03. Permits, site authorization, and licenses.

  1. Except as authorized by the attorney general, an organization that has its license suspended or revoked, or has relinquished or not renewed its license and not disbursed its net proceeds, is ineligible for a license or permit. Only one of two or more closely related organizations may have a license or permit at one time. A college or university fraternity, sorority, or club is not closely related to an educational organization. An organization shall apply for a permit as follows:
    1. An organization recognized as a public-spirited organization by the governing body of a city or county may apply for permits. A local permit may allow the organization to conduct only raffles, bingo, or sports pools. A restricted event permit may allow the organization to conduct only raffles, bingo, sports pools, paddlewheels, twenty-one, and poker. The organization or closely related organizations as a whole may only award a primary prize that does not exceed eight thousand dollars and total prizes of all games do not exceed forty thousand dollars per year. These maximum prize amounts do not apply to raffles conducted under chapter 20.1-08. The determination of what is a “public-spirited organization” is within the sole discretion of the governing body. An organization shall disclose on the application its intended use of the net income from the gaming activity. A governing body may issue a permit for games to be held at designated times and places.
    2. An organization shall apply to the governing body of the city or county in which the proposed site is located. Application must be made on a form prescribed by the attorney general. Approval may be granted at the discretion of the governing body. A governing body may establish a fee not to exceed twenty-five dollars for each permit. A permit must be on a fiscal year basis from July first to June thirtieth or on a calendar-year basis.
    3. An organization that has a local permit or a restricted event permit may use the net income from the gaming activity for any purpose that does not violate this chapter or gaming rules, unless the organization is a state political party or legislative district party committee, the organization may use the net income from a raffle for a political purpose. For purposes of this subdivision, a public-spirited use includes a political purpose.
    4. An organization that has a restricted event permit is restricted to one event per year and:
      1. May not pay remuneration to employees for personal services;
      2. Shall use chips as wagers;
      3. Shall redeem a player’s chips for merchandise prizes or cash;
      4. Shall disburse net income to eligible uses referenced in subdivision c, if applicable, and in section 53-06.1-11.1; and
      5. Shall file a report prescribed by the attorney general with the governing body and attorney general.
  2. An eligible organization shall apply for a license to conduct only bingo, electronic quick shot bingo, raffles, calcuttas, pull tabs, punchboards, twenty-one, paddlewheels, poker, or sports pools by:
    1. First securing approval for a site authorization from the governing body of the city or county in which the proposed site is located. Approval, which may be granted at the discretion of the governing body, must be recorded on a site authorization form that is to accompany the license application to the attorney general for final approval. A governing body may not require an eligible organization to donate net proceeds to the city, county, or related political subdivision or for community programs or services within the city or county as a condition for receiving a site authorization from the city or county. A governing body may limit the number of tables for the game of twenty-one per site and the number of sites upon which a licensed organization may conduct games within the city or county. A governing body may charge a one hundred dollar fee for a site authorization; and
    2. Annually applying for a license from the attorney general before July first on a form prescribed by the attorney general and remitting a one hundred fifty dollar license fee for each city or county that approves a site authorization. However, the attorney general may allow an organization that only conducts a raffle or calcutta in two or more cities or counties to annually apply for a consolidated license and remit a one hundred fifty dollar license fee for each city or county in which a site is located. An organization shall document that it qualifies as an eligible organization. If an organization amends its primary purpose as stated in its articles of incorporation or materially changes its basic character, the organization shall reapply for licensure.
  3. A licensed organization or organization that has a permit shall conduct games as follows:
    1. Only one licensed organization or organization that has a permit may conduct games at an authorized site on a day, except that a raffle may be conducted for a special occasion by another licensed organization or organization that has a permit when one of these conditions is met:
      1. When the area for the raffle is physically separated from the area where games are conducted by the regular organization.
      2. Upon request of the regular organization and with the approval of the alcoholic beverage establishment, the regular organization’s license or permit is suspended for that specific time of day by the attorney general.
    2. Except for a temporary site authorized for fourteen or fewer consecutive days for not more than two events per quarter, a licensed organization may not have more than twenty-five sites unless granted a waiver by the attorney general. If the attorney general finds that there is no other licensed organization interested in conducting gaming at a site for which a waiver is being sought, the attorney general may approve the waiver for no more than five sites.
    3. Games of electronic quick shot bingo, pull tabs, punchboards, twenty-one, paddlewheels, poker, and sports pools may be conducted only during the hours when alcoholic beverages may be dispensed according to applicable regulations of the state, county, or city.
    4. An organization may not permit a person under twenty-one years of age to directly or indirectly play pull tabs, punchboards, twenty-one, calcuttas, sports pools, paddlewheels, or poker. An organization may not permit an individual under eighteen years of age to directly or indirectly play electronic quick shot bingo. An organization may not permit an individual under eighteen years of age to directly or indirectly play bingo unless the individual is accompanied by an adult, bingo is conducted by an organization that has a permit, or the game’s prize structure does not exceed that allowed for a permit.
  4. A permit, or site authorization and license, must be displayed at a site.
  5. The attorney general may issue a conditional license to an eligible organization whose regularly issued license has expired or been suspended, revoked, or relinquished. The attorney general shall designate the time period for which the conditional license is valid and may impose any conditions.
  6. A governing body or local law enforcement official may inspect a site’s gaming equipment and examine or cause to be examined any gaming-related books and records of a licensed organization or organization that has a permit.

Source:

S.L. 1981, ch. 514, § 3; 1983, ch. 546, § 4; 1985, ch. 550, § 1; 1985, ch. 551, §§ 1, 2; 1985, ch. 552, § 1; 1987, ch. 532, § 4; 1987, ch. 611, § 1; 1987, ch. 612, § 1; 1989, ch. 612, § 3; 1989, ch. 615, § 1; 1989, ch. 616, § 1; 1989, ch. 617, § 1; 1989, ch. 618, § 1; 1989, ch. 619, § 1; 1991, ch. 28, § 22; 1991, ch. 548, § 1; 1991, ch. 549, § 1; 1993, ch. 499, § 6; 1995, ch. 484, § 4; 1995, ch. 485, § 1; 1997, ch. 428, § 5; 1999, ch. 441, § 3; 2001, ch. 460, § 5; 2001, ch. 461, § 1; 2003, ch. 449, § 3; 2009, ch. 451, § 2; 2009, ch. 452, § 1; 2015, ch. 356, § 1, eff August 1, 2015; 2017, ch. 360, § 4, eff August 1, 2017; 2019, ch. 427, §§ 2, 3, eff August 1, 2019; 2021, ch. 386, § 1, eff August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 356, S.L. 2015 became effective August 1, 2015.

The 2009 amendment of this section by section 2 of chapter 451, S.L. 2009 became effective August 1, 2009.

The 2009 amendment of this section by section 1 of chapter 452, S.L. 2009 became effective August 1, 2009.

53-06.1-03.1. Bingo sites — Limit on rent. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-03.2. Twenty-one sites — Limit on rent. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-03.3. Pull tab sites — Limit on rent. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-03.4. Electronic video gaming devices — Limit on rent. [Repealed]

Disapproved by R.M. December 5, 1989, S.L. 1991, ch. 744.

53-06.1-04. College fraternities and sororities allowed to conduct raffles, sports pools, and bingo — Use of proceeds. [Repealed]

Repealed by S.L. 1995, ch. 484, § 35.

53-06.1-05. Local permit for educational organizations, college fraternities, and sororities for raffles, sports pools, and bingo. [Repealed]

Repealed by S.L. 1995, ch. 484, § 35.

53-06.1-05.1. Regulation by city or county of number of twenty-one tables per site and number of sites per licensed organization. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-06. Persons permitted to conduct games — Equipment.

  1. No person, except a member, volunteer, an employee of a licensed organization or an organization that has a permit, or an employee of a temporary employment agency who provides services to a licensed organization, may manage, control, or conduct any game. “Member” includes a member of an auxiliary organization. In conducting pull tabs or prize boards through a dispensing device, selling pull tabs through a pull-tab device, selling raffle tickets, or conducting sports pools, the attorney general may allow an employee of an alcoholic beverage establishment to provide limited assistance to an organization.
  2. Except when authorized by the attorney general or allowed by the gaming rules, an eligible organization shall procure gaming equipment only from a licensed distributor. No equipment or prizes may be purchased at an excessive price.
  3. An organization and distributor shall maintain complete, accurate, and legible bank and accounting records in North Dakota for all gaming activity and establish a system of internal control as prescribed by rule. The governing board of an eligible organization is primarily responsible and may be held accountable for the proper determination and use of net proceeds. If an organization does not renew its license or its license is denied, relinquished, or revoked and it has not disbursed all of its net proceeds, the organization shall file an action plan as prescribed by the gaming rules with the attorney general.
  4. The value of a merchandise prize awarded in a game is its retail price, excluding sales tax.
  5. A person is restricted from being involved in gaming and the attorney general shall conduct a criminal history record check as follows:
      1. A person who has pled guilty to or been found guilty of a felony offense as defined by the laws of this state, other states, or the federal government, or has pled guilty to or been found guilty of a violation of this chapter, a gaming rule, chapter 12.1-28 or 53-06.2, or offenses of other states or the federal government equivalent to offenses defined in these chapters, regardless of whether the person has completed or received a deferred imposition of sentence or suspended sentence, may not be a licensed distributor, be an investor in or board member or consultant to a licensed distributor, or be employed by a licensed distributor, and may not be employed by a licensed organization to conduct games, for five years from the date of conviction, release from incarceration, or expiration of parole or probation, whichever is the latest.
      2. Paragraph 1 does not apply if the offense to which the person pled guilty or has been found guilty is a misdemeanor and the person has received a deferred imposition of sentence and has fully complied with the terms of the deferral.
    1. A person who has pled guilty to or been found guilty of a misdemeanor offense in violation of section 6-08-16.1 or chapter 12.1-06, 12.1-23, or 12.1-24 or offenses of other states, the federal government, or a municipality equivalent to these offenses, regardless if the person has completed or received a suspended sentence, may not be a licensed distributor or be employed by a licensed distributor, and may not be employed by a licensed organization to conduct games, for two years from the date of conviction, release from incarceration, or expiration of parole or probation, whichever is the latest, unless the person has received a deferred imposition of sentence and has fully complied with the terms of the deferral.
    2. Unless an employee is exempt by the gaming rules or attorney general, the attorney general shall conduct a criminal history record check of each employee of a licensed organization or distributor and charge a fee prescribed by section 12-60-16.9. The fee may be waived by the attorney general if a federal agency or local law enforcement agency has done a record check. The attorney general may require advance payment of any additional fee necessary to pay the cost of a record check of a person for whom adequate background information sources are not readily available. The advance payment must be placed in the attorney general’s refund fund. The unused funds must be returned to the person within thirty days of the conclusion of the record check. Unless a federal or local law enforcement agency conducts the record check, the attorney general shall notify the organization or distributor of the result. The attorney general shall keep the information confidential except in the proper administration of this chapter or any gaming rule or to provide to an authorized law enforcement agency.
  6. For a site where bingo is the primary game or a site that is leased by a licensed organization, the organization may not pay bingo prizes in which the total bingo prizes exceed total bingo gross proceeds for a period prescribed by gaming rule. However, if bingo is the primary game at the site, a bingo prize that equals or exceeds ten thousand dollars is excluded from the total of the bingo prizes.
  7. A city or county may require a person conducting games to obtain a local work permit, charge a reasonable fee, and conduct a criminal history record check.

Source:

S.L. 1981, ch. 514, § 6; 1983, ch. 546, §§ 8, 9; 1987, ch. 613, § 1; 1989, ch. 612, § 9; 1989, ch. 615, § 3; 1991, ch. 28, § 23; 1991, ch. 54, § 27; 1991, ch. 545, § 2; 1991, ch. 549, § 4; 1991, ch. 550, § 1; 1993, ch. 499, § 10; 1995, ch. 484, § 9; 1995, ch. 485, § 2; 1997, ch. 428, § 6; 1999, ch. 441, § 4; 2001, ch. 460, § 6; 2003, ch. 449, § 4; 2003, ch. 450, § 2; 2005, ch. 465, § 1; 2017, ch. 359, § 3, eff August 1, 2017; 2017, ch. 360, § 5, eff August 1, 2017; 2019, ch. 54, § 9, eff August 1, 2019; 2021, ch. 175, § 6, eff August 1, 2021.

Note.

Section 53-06.1-06 was amended 2 times by the Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 3 of Chapter 359, Session Laws 2017, House Bill 1216; and Section 5 of Chapter 360, Session Laws 2017, Senate Bill 1415.

53-06.1-06.1. Local work permits. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-07. Games allowed. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-07.1. Limitations on hours and participation. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-07.2. Poker.

Poker may be conducted on not more than two occasions per year. An organization may supply the dealer. The maximum single bet is one dollar. Not more than three raises, of not more than one dollar each, may be made among all the players in each round of bets. For nontournament activity, an organization shall charge each player a fee not to exceed two dollars per one-half hour of playing time, collected in advance. For a tournament, an organization shall charge each player an entry fee and the amount of prizes may not exceed ninety percent of the gross proceeds.

Source:

S.L. 1987, ch. 608, § 3; 1989, ch. 615, § 5; 1991, ch. 545, § 4; 1993, ch. 499, § 13; 1995, ch. 484, § 13; 1997, ch. 428, § 7; 1999, ch. 441, § 5; 2001, ch. 460, § 7; 2003, ch. 449, § 5.

53-06.1-07.3. Calcuttas.

A calcutta may only be conducted for a professional or amateur sporting event held in this state but not for elementary, secondary, or postsecondary education sports events. Only one wager per competitor may be allowed in a calcutta pool. The amount of prizes may not exceed ninety percent of the gross proceeds. A player may not place a wager on a competitor in a calcutta sporting event unless the competitor is eighteen years of age or older.

Source:

S.L. 1989, ch. 620, § 3; 1993, ch. 499, § 14; 1995, ch. 484, § 14; 1997, ch. 428, § 8; 1999, ch. 441, § 6.

53-06.1-07.4. Paddlewheels.

A paddlewheel is a mechanical vertical wheel marked off into equally spaced sections that contain numbers or symbols, and which after being spun, uses a pointer to indicate the winning number or symbol. The maximum price per paddlewheel ticket or chip is two dollars. A table and chips must be used to register a player’s wager when a prize is a variable multiple of the wager. Otherwise, a ticket must be used. A player may not place wagers totaling more than twenty dollars on each spin of the paddlewheel. Cash, chips, or merchandise prizes may be awarded. No single cash prize, value of chips, or the retail value of the merchandise prize to be awarded for a winning ticket or chip may exceed one hundred dollars.

Source:

S.L. 1991, ch. 552, § 1; 1993, ch. 499, § 15; 1997, ch. 428, § 9; 1999, ch. 441, § 7; 2001, ch. 460, § 8.

53-06.1-08. Punchboards and pull tabs.

Unless all top tier winning pull tabs or punchboard punches of a game have been redeemed, or unless otherwise permitted by a gaming rule or the attorney general, a person or organization may not close the game after it has been placed in play. The maximum sales price per pull tab and punchboard punch is two dollars. The maximum prize value of a top tier winning pull tab or punchboard punch is five hundred dollars. The game of pull tabs may only be conducted by commingling deals.

Source:

S.L. 1981, ch. 514, § 8; 1983, ch. 546, § 10; 1987, ch. 609, § 2; 1987, ch. 614, § 1; 1989, ch. 612, § 12; 1993, ch. 499, § 16; 1995, ch. 484, § 15; 1997, ch. 428, § 10.

53-06.1-08.1. Limitation on pull tab prizes. [Repealed]

Repealed by S.L. 1995, ch. 484, § 35.

53-06.1-08.2. Electronic pull tab device requirements.

An electronic pull tab device must display an electronic pull tab in which the player may win credits that can be redeemed for cash or used to purchase more pull tabs. The device may not directly dispense coins, cash, tokens, or anything else of value other than a credit ticket voucher.

Source:

S.L. 2017, ch. 3, § 12, eff July 1, 2017.

53-06.1-09. Sports pools.

A sports pool must be for a professional sport only. The maximum wager is twenty-five dollars. The amount of prizes may not exceed ninety percent of the gross proceeds.

Source:

S.L. 1981, ch. 514, § 9; 1985, ch. 553, § 1; 1993, ch. 499, § 18; 1995, ch. 484, § 16; 1997, ch. 428, § 11; 2015, ch. 357, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 357, S.L. 2015 became effective August 1, 2015.

53-06.1-10. Twenty-one.

The organization shall provide playing chips of various denominations to players although the organization may use a metal coin rather than a fifty-cent chip. The organization may set the minimum limit for the original wager at not more than three dollars on one active table. If there is more than one active table at a site, the organization may set a higher minimum wager on additional tables. The maximum limit per wager may be set by the organization at not more than twenty-five dollars. Wagers in increments of one dollar must be accepted between the posted minimum and the posted maximum limit. A player may not play more than two hands at the same time. Only the player actually playing a hand may place a wager on that hand. Each player plays the player’s hand against the dealer’s hand. Any requirement to pool tips is within the sole discretion of each organization. Except for a site that has twenty-one gross proceeds averaging less than ten thousand dollars per quarter, an organization may not conduct twenty-one at the site with wagers exceeding two dollars unless the organization has first installed video surveillance equipment as required by rules and the equipment is approved by the attorney general.

Source:

S.L. 1981, ch. 514, § 10; 1983, ch. 546, § 11; 1989, ch. 612, § 14; 1989, ch. 622, § 1; 1991, ch. 553, § 1; 1993, ch. 499, § 19; 1995, ch. 484, § 17; 1997, ch. 428, § 12; 1999, ch. 441, § 8; 2001, ch. 460, § 9; 2001, ch. 462, § 1; 2003, ch. 449, § 6; 2015, ch. 358, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 358, S.L. 2015 became effective August 1, 2015.

53-06.1-10.1. Raffles.

  1. A prize for a raffle may be cash or merchandise but may not be real estate. No single cash prize may exceed twenty-five thousand dollars and the total cash prizes in one day may not exceed twenty-five thousand dollars. However, on not more than two occasions per year a licensed organization may, at the request of a winning player, exchange a merchandise prize valued at not more than twenty-five thousand dollars for a cash prize.
  2. The maximum cash prize limits of this section do not apply to a public-spirited organization that supports amateur collegiate athletics.
  3. An organization permitted to conduct raffles in this state may conduct a fifty-fifty raffle either by manual drawing or by using a random number generator. Fifty-fifty raffle tickets must be sold and drawings held onsite at the location of and on the date of the event. Fifty-fifty raffles may not be conducted online over the internet.
  4. A licensed organization permitted to conduct raffles in this state may sell online over the internet and may accept an electronic payment, including payment by a debit card or a credit card, for the purchase of a raffle ticket. An organization that accepts payment by credit card for the purchase of a raffle ticket shall limit an individual’s ticket purchases using a credit card to five hundred dollars per day, not to exceed one thousand five hundred dollars per week. If a licensed organization accepts electronic payment for the purchase of a raffle ticket, the organization shall verify the ticket purchaser is at least eighteen years of age and physically is located in the state.

Source:

S.L. 1983, ch. 546, § 12; 1989, ch. 623, § 1; 1993, ch. 499, § 20; 1995, ch. 484, § 18; 1997, ch. 428, § 13; 2005, ch. 465, § 2; 2007, ch. 447, § 1; 2013, ch. 395, § 1; 2015, ch. 356, § 2, eff August 1, 2015; 2017, ch. 361, § 1, eff August 1, 2017; 2021, ch. 387, § 1, eff August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 356, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 1 of chapter 395, S.L. 2013 became effective August 1, 2013.

The 2007 amendment of this section by section 1 of chapter 447, S.L. 2007 became effective August 1, 2007.

53-06.1-10.2. Electronic quick shot bingo.

  1. Electronic quick shot bingo is a bingo game played on portable hand-held bingo devices utilizing electronic bingo card images. The maximum sales price per electronic bingo card is five dollars. The bingo game is played using twenty-four predrawn letters and numbers and may use up to six bonus letters and numbers to achieve predetermined patterns. The letters and numbers may only be drawn by the organization either manually or with the use of a random number generator, once during a business day and before the beginning of any session. It is not required for each bingo game to have a winner. The bingo devices used in conjunction with a site operating system automatically daubs the called letters and numbers via a radio frequency signal or wi-fi transmission on a maximum of sixteen electronic bingo cards for an individual game. The site operating system, including the point-of-sale, allows an employee to deposit credits received from a player by cash, check, or debit card to a temporary credit account to be used by a player for the purchase of electronic bingo cards. The devices may determine a winning bingo and must accumulate the winning prize amounts in a separate winnings account which may only be redeemed by an employee.
  2. An electronic quick shot bingo marking device under subsection 1 is not a “coin-operated gaming device” as defined in subsection 4 of section 12.1-28-02.

History. S.L. 2015, ch. 361, § 1, eff August 1, 2015; 2017, ch. 360, § 6, eff August 1, 2017.

Effective Date.

This section became effective August 1, 2015.

53-06.1-11. Gross proceeds — Allowable expenses — Rent limits.

  1. All money received from games must be accounted for according to the gaming rules. Gaming activity for a quarter must be reported on a tax return form prescribed by the attorney general. Unless otherwise authorized by the attorney general, the purchase price of a merchandise prize must be paid from a gaming bank account by check. A cash prize paid by check must be paid from a gaming bank account. No check drawn from a gaming or trust bank account may be payable to “cash” or a fictitious payee. A cash prize that exceeds an amount set by rule must be accounted for by a receipt prescribed by the gaming rules.
  2. Allowable expenses may be deducted from adjusted gross proceeds. The allowable expense limit is sixty percent of the adjusted gross proceeds per quarter.
  3. Cash shorts incurred in games and interest and penalty are classified as expenses.
  4. For a site where bingo is conducted:
    1. If bingo is the primary game, the monthly rent must be reasonable.
    2. If bingo is not the primary game, but is conducted with twenty-one, paddlewheels, or pull tabs, no additional rent is allowed.
  5. For a site where bingo is not the primary game:
    1. If twenty-one or paddlewheels is conducted, the monthly rent may not exceed two hundred dollars multiplied by the necessary number of tables based on criteria prescribed by gaming rule. For each twenty-one table with a wager greater than five dollars, an additional amount up to one hundred dollars may be added to the monthly rent. If pull tabs is also conducted involving only a jar bar, the monthly rent for pull tabs may not exceed an additional one hundred seventy-five dollars. If pull tabs is conducted involving only a dispensing device or a jar bar and dispensing device, the monthly rent for pull tabs may not exceed an additional three hundred twenty-five dollars.
    2. If twenty-one and paddlewheels are not conducted but pull tabs is conducted involving either a jar bar or dispensing device, the monthly rent may not exceed four hundred dollars.
    3. If pull tabs is conducted using one or more electronic pull tab devices, the monthly rent may not exceed an additional one hundred dollars per machine for the first five machines in the same venue. For each additional machine in the same venue beyond five, the monthly rent may not exceed an additional fifty dollars per machine up to a maximum of one thousand one hundred twenty-five dollars per month for all electronic pull tab devices in a single venue.

Source:

S.L. 1981, ch. 514, § 11; 1983, ch. 546, § 13; 1985, ch. 554, § 1; 1987, ch. 616, § 1; 1989, ch. 170, § 3; 1989, ch. 615, § 6; 1991, ch. 546, § 2; 1993, ch. 499, § 21; 1995, ch. 484, § 19; 1995, ch. 485, § 3; 1995, ch. 486, § 1; 1997, ch. 428, § 14; 1999, ch. 441, § 9; 2001, ch. 462, § 2; 2001, ch. 463, § 1; 2011, ch. 378, § 2; 2013, ch. 396, § 1; 2015, ch. 359, § 1, eff August 1, 2015; 2017, ch. 359, § 4, eff August 1, 2017; 2017, ch. 360, § 7, eff August 1, 2017; 2019, ch. 428, § 1, eff August 1, 2019.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 359, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 1 of chapter 396, S.L. 2013 became effective August 1, 2013.

The 2011 amendment of this section by section 2 of chapter 378, S.L. 2011 became effective July 1, 2011.

53-06.1-11.1. Restricted use of money in certain political activities — Eligible uses of net proceeds.

  1. Except as provided in subdivision c of subsection 1 of section 53-06.1-03:
    1. A licensed organization or an organization that has a permit may not use money from any source for placing an initiated or referred measure on a ballot or for a political campaign to promote or oppose a person for public office.
    2. Except for a use related to an organization’s primary purpose, a licensed organization or organization that has a permit may not use net proceeds to influence legislation or promote or oppose referendums or initiatives.
    3. Any funds expended by a licensed organization or an organization that has a permit to promote or oppose an initiated or referred measure that is on the ballot or for any activities of a lobbyist under section 54-05.1-02, that are not compensation or expenses paid to a lobbyist, and that are not required to be reported under section 54-05.1-03 must be reported to the attorney general as prescribed by the attorney general. A violation of this subsection subjects an organization to a suspension of its license or permit for up to one year.
  2. A licensed organization or an organization that has a restricted event permit shall disburse net proceeds within the period prescribed by rule and for only these educational, charitable, patriotic, fraternal, religious, or public-spirited uses:
    1. Uses for stimulating and promoting state and community-based economic development programs within the state which improve the quality of life of community residents.
    2. Uses for developing, promoting, and supporting tourism within a city, county, or the state.
    3. Uses benefiting an indefinite number of persons by bringing them under the influence of education, cultural programs, or religion which include disbursements to provide:
      1. Scholarships for students, if the disbursement is deposited in a scholarship fund for defraying the cost of education to students and the scholarships are awarded through an open and fair selection process.
      2. Supplementary assistance to a public or private nonprofit educational institution registered with or accredited by any state.
      3. Assistance to libraries and museums.
      4. Assistance for the performing arts and humanities.
      5. Preservation of cultural heritage.
      6. Youth community, social welfare, and athletic activities.
      7. Adult amateur athletic activities within the state, including team uniforms and equipment.
      8. Maintenance of places of public worship or support of a body of communicants, gathered in common membership for mutual support and edification in piety, worship, or religious observances.
      9. Scientific research.
    4. Uses benefiting an indefinite number of persons by relieving them of disease, suffering, or constraint which include disbursements to provide:
      1. Assistance to an individual or family suffering from poverty or homelessness.
      2. Encouragement and enhancement of the active participation of the elderly in our society.
      3. Services to the abused.
      4. Services to persons with an addicted behavior toward alcohol, gambling, or drugs.
      5. Funds to combat juvenile delinquency and rehabilitate ex-offenders.
      6. Relief for the sick, diseased, and terminally ill and their physical well-being.
      7. Funds for emergency relief and volunteer services.
      8. Funds to nonprofit nursing homes, nonprofit day care centers, and nonprofit medical facilities.
      9. Social services and education programs aimed at aiding emotionally and physically distressed, handicapped, elderly, and underprivileged persons.
      10. Funds for crime prevention, fire protection and prevention, and public safety.
      11. Funds to relieve, improve, and advance the physical and mental conditions, care and medical treatment, and health and welfare of injured or disabled veterans.
    5. Uses that perpetuate the memory and history of the dead.
    6. Uses increasing comprehension of and devotion to the principles upon which the nation was founded, including disbursements to aid in teaching the principles of liberty, truth, justice, and equality. However, beauty pageants do not qualify.
    7. The erection or maintenance of public buildings, facilities, utilities, or waterworks.
    8. Uses lessening the burden of government which include disbursements to an entity that is normally funded by a city, county, state, or United States government and disbursements directly to a government entity or its agency.
    9. Uses benefiting a definite number of persons who are the victims of loss of home or household possessions through explosion, fire, flood, or storm and the loss is not covered by insurance.
    10. Uses benefiting a definite number of persons suffering from a seriously disabling disease or injury causing severe loss of income or incurring extraordinary medical expense which is not covered by insurance.
    11. Uses, for community service projects, by chambers of commerce exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code. A project qualifies if it develops or promotes public services, including education, housing, transportation, recreation, crime prevention, fire protection and prevention, safety, tourism, and health. Uses that directly benefit a chamber of commerce do not qualify.
    12. Uses for or of benefit to efforts in support of the health, comfort, or well-being of the community which include disbursements to provide:
      1. Funds for adult bands, including drum and bugle corps.
      2. Funds for trade shows and conventions conducted in this state.
      3. Funds for nonprofit organizations that operate a humane society, zoo, or fish or wildlife reproduction and habitat enhancement program.
      4. Funds for public transportation, community celebration, and recreation.
      5. Funds for preservation and cleanup of the environment.
    13. To the extent net proceeds are used toward the primary purpose of a charitable, educational, religious, public safety, or public-spirited organization, or are used for a veterans or public cemetery by a veterans organization, that has obtained a final determination from the internal revenue service as qualifying for exemption from federal income tax under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code, the organization may establish a special trust fund or foundation as a contingency for funding or maintaining the organization’s future program services should the organization discontinue conducting games or dissolve.
    14. Uses for a fundraising activity unrelated to an organization’s primary purpose provided that the gross revenue from the activity is disbursed to uses prescribed by this subsection.
  3. With the exception of a veterans organization, the uses in subsection 2 do not include the erection, acquisition, improvement, maintenance, or repair of real or personal property owned or leased by an organization unless it is used exclusively for an eligible use.
  4. A licensed organization or recipient of net proceeds may not use net proceeds for administrative or operating expenses involving the conduct of games.

Source:

S.L. 1989, ch. 615, § 7; 1995, ch. 484, § 20; 1997, ch. 428, § 15; 1999, ch. 441, § 10; 2001, ch. 460, § 10; 2003, ch. 449, § 7; 2017, ch. 362, § 1, eff March 23, 2017; 2019, ch. 427, § 4, eff August 1, 2019; 2021, ch. 386, § 2, eff August 1, 2021.

Note.

Section 53-06.1-11.1 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 2 of Chapter 386, Session Laws 2021, Senate Bill 2251; and Section 1 of Chapter 388, Session Laws 2021, House Bill 1263.

53-06.1-11.1. Restricted use of money in certain political activities — Eligible uses of net proceeds.

  1. A licensed organization or an organization that has a permit may not use money from any source for placing an initiated or referred measure on a ballot or for a political campaign to promote or oppose a person for public office. Except for a use related to an organization’s primary purpose, a licensed organization or organization that has a permit may not use net proceeds to influence legislation or promote or oppose referendums or initiatives. Any funds expended by a licensed organization or an organization that has a permit to promote or oppose an initiated or referred measure that is on the ballot or for any activities of a lobbyist under section 54-05.1-02, that are not compensation or expenses paid to a lobbyist, and that are not required to be reported under section 54-05.1-03 must be reported to the attorney general as prescribed by the attorney general. A violation of this subsection subjects an organization to a suspension of its license or permit for up to one year.
  2. A licensed organization or an organization that has a restricted event permit shall disburse net proceeds within the period prescribed by rule and for only these educational, charitable, patriotic, fraternal, religious, or public-spirited uses:
    1. Uses for stimulating and promoting state and community-based economic development programs within the state which improve the quality of life of community residents.
    2. Uses for developing, promoting, and supporting tourism within a city, county, or the state.
    3. Uses benefiting an indefinite number of persons by bringing them under the influence of education, cultural programs, or religion which include disbursements to provide:
      1. Scholarships for students, if the disbursement is deposited in a scholarship fund for defraying the cost of education to students and the scholarships are awarded through an open and fair selection process.
      2. Supplementary assistance to a public or private nonprofit educational institution registered with or accredited by any state.
      3. Assistance to libraries and museums.
      4. Assistance for the performing arts and humanities.
      5. Preservation of cultural heritage.
      6. Youth community, social welfare, and athletic activities.
      7. Adult amateur athletic activities within the state, including team uniforms and equipment.
      8. Maintenance of places of public worship or support of a body of communicants, gathered in common membership for mutual support and edification in piety, worship, or religious observances.
      9. Scientific research.
    4. Uses benefiting an indefinite number of persons by relieving them of disease, suffering, or constraint which include disbursements to provide:
      1. Assistance to an individual or family suffering from poverty or homelessness.
      2. Encouragement and enhancement of the active participation of the elderly in our society.
      3. Services to the abused.
      4. Services to persons with an addicted behavior toward alcohol, gambling, or drugs.
      5. Funds to combat juvenile delinquency and rehabilitate ex-offenders.
      6. Relief for the sick, diseased, and terminally ill and their physical well-being.
      7. Funds for emergency relief and volunteer services.
      8. Funds to nonprofit nursing homes, nonprofit day care centers, and nonprofit medical facilities.
      9. Social services and education programs aimed at aiding emotionally and physically distressed, handicapped, elderly, and underprivileged persons.
      10. Funds for crime prevention, fire protection and prevention, and public safety.
      11. Funds to relieve, improve, and advance the physical and mental conditions, care and medical treatment, and health and welfare of injured or disabled veterans.
    5. Uses that perpetuate the memory and history of the dead.
    6. Uses increasing comprehension of and devotion to the principles upon which the nation was founded, including disbursements to aid in teaching the principles of liberty, truth, justice, and equality. However, beauty pageants do not qualify.
    7. The erection or maintenance of public buildings, facilities, utilities, or waterworks.
    8. Uses lessening the burden of government which include disbursements to an entity that is normally funded by a city, county, state, or United States government and disbursements directly to a government entity or its agency.
    9. Uses benefiting a definite number of persons who are the victims of loss of home or household possessions through explosion, fire, flood, or storm and the loss is not covered by insurance.
    10. Uses benefiting a definite number of persons suffering from a seriously disabling disease or injury causing severe loss of income or incurring extraordinary medical expense which is not covered by insurance.
    11. Uses, for community service projects, by chambers of commerce exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code. A project qualifies if it develops or promotes public services, including education, housing, transportation, recreation, crime prevention, fire protection and prevention, safety, tourism, and health. Uses that directly benefit a chamber of commerce do not qualify.
    12. Uses for or of benefit to efforts in support of the health, comfort, or well-being of the community which include disbursements to provide:
      1. Funds for adult bands, including drum and bugle corps.
      2. Funds for trade shows and conventions conducted in this state.
      3. Funds for nonprofit organizations that operate a humane society, zoo, or fish or wildlife reproduction and habitat enhancement program.
      4. Funds for public transportation, community celebration, and recreation.
      5. Funds for preservation and cleanup of the environment.
    13. To the extent net proceeds are used toward the primary purpose of a charitable, educational, religious, public safety, or public-spirited organization, or are used for a veterans or public cemetery by a veterans organization, that has obtained a final determination from the internal revenue service as qualifying for exemption from federal income tax under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code, the organization may establish a special trust fund or foundation as a contingency for funding or maintaining the organization’s future program services should the organization discontinue conducting games or dissolve.
    14. Uses for a fundraising activity unrelated to an organization’s primary purpose provided that the gross revenue from the activity is disbursed to uses prescribed by this subsection.
  3. The eligible uses in subsection 2 do not include the erection, acquisition, property taxes, special assessments, improvement, maintenance, or repair of real property owned or leased by an organization unless the real property is used exclusively for an eligible use or by a veterans organization.
  4. A licensed organization or recipient of net proceeds may not use net proceeds for administrative or operating expenses involving the conduct of games.

Source:

S.L. 1989, ch. 615, § 7; 1995, ch. 484, § 20; 1997, ch. 428, § 15; 1999, ch. 441, § 10; 2001, ch. 460, § 10; 2003, ch. 449, § 7; 2017, ch. 362, § 1, eff March 23, 2017; 2019, ch. 427, § 4, eff August 1, 2019; 2021, ch. 388, § 1, eff August 1, 2021.

53-06.1-11.2 Charitable gaming operating fund — Attorney general — State treasurer — Continuing appropriation — Allocations — Transfer to the general fund.

  1. There is created in the state treasury the charitable gaming operating fund. The fund consists of all gaming taxes, monetary fines, and interest and penalties collected under this chapter.
  2. Excluding moneys in the charitable gaming operating fund appropriated by the legislative assembly for administrative and operating costs associated with charitable gaming, all other moneys in the charitable gaming operating fund are appropriated to the attorney general on a continuing basis for quarterly allocations as follows:
    1. Ten thousand dollars to the gambling disorder prevention and treatment fund.
    2. Five percent of the total moneys deposited in the charitable gaming operating fund to cities and counties in proportion to the taxes collected under section 53-06.1-12 from licensed organizations conducting games within each city, for sites within city limits, or within each county, for sites outside city limits. If a city or county allocation is less than two hundred dollars, that city or county is not entitled to receive a payment for the quarter and the undistributed amount must be included in the total amount to be distributed to other cities and counties for the quarter.
  3. On or before June thirtieth of each odd-numbered year, the attorney general shall certify to the state treasurer the amount of accumulated funds in the charitable gaming operating fund which exceed the amount appropriated by the legislative assembly for administrative and operating costs associated with charitable gaming for the subsequent biennium. The state treasurer shall transfer the certified amount from the charitable gaming operating fund to the general fund prior to the end of each biennium.

Source:

S.L. 2021, HB1212, § 1, eff July 1, 2021.

Note.

Section 53-06.1-11.2 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 15 of Chapter 3, Session Laws 2021, House Bill 1003; and Section 1 of Chapter 389, Session Laws 2021, House Bill 1212.

53-06.1-12. Gaming tax — Deposits. [Effective for taxable events occurring after June 30, 2021]

  1. A gaming tax is imposed on the total adjusted gross proceeds received by a licensed organization in a quarter and it must be computed and paid to the attorney general on a quarterly basis on the tax return. This tax must be paid from adjusted gross proceeds and is not part of the allowable expenses. For a licensed organization with adjusted gross proceeds:
    1. Not exceeding fifty thousand dollars the tax is one percent of adjusted gross proceeds.
    2. Exceeding fifty thousand dollars the tax is five hundred dollars plus twelve percent of adjusted gross proceeds exceeding fifty thousand dollars.
  2. The tax must be paid to the attorney general at the time tax returns are filed.
  3. The attorney general shall deposit gaming taxes, monetary fines, and interest and penalties collected in the charitable gaming operating fund.

Source:

S.L. 1981, ch. 514, § 12; 1983, ch. 546, § 14; 1989, ch. 170, § 4; 1991, ch. 28, § 24; 1993, ch. 499, § 22; 1995, ch. 484, § 21; 1997, ch. 428, § 16; 2001, ch. 3, § 15; 2001, ch. 464, § 1; 2003, ch. 449, § 8; 2007, ch. 446, § 2; 2009, ch. 450, § 2; 2009, ch. 453, § 1; 2009, ch. 454, § 1; 2011, ch. 378, § 3; 2013, ch. 397, § 1; 2021, [HB1212], § 2, eff for taxable events occurring after after June 30, 2021.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 397, S.L. 2013 became effective July 1, 2013.

The 2011 amendment of this section by section 3 of chapter 378, S.L. 2011 became effective July 1, 2011.

The 2009 amendment of this section by section 2 of chapter 450, S.L. 2009 became effective July 1, 2009.

The 2009 amendment of this section by section 1 of chapter 453, S.L. 2009 is effective for taxable events occurring after June 30, 2009.

The 2009 amendment of this section by section 1 of chapter 454, S.L. 2009 became effective August 1, 2009

The 2007 amendment of this section by section 2 of chapter 446, S.L. 2007 became effective July 1, 2007.

Collateral References.

Validity of state or local gross receipts tax on gambling, 21 A.L.R.5th 812.

53-06.1-12.1. Deposits. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-12.2. Pull tab excise tax. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-12.3. Interest, penalty, and estimated tax.

  1. Assessment of interest. If a licensed organization does not pay tax due by the original date of a tax return, or if additional tax is due based on an audit or math verification of the return and it is not paid by the original due date of the return, the organization shall pay interest on the tax at the rate of twelve percent per annum computed from the original due date of the return through the date the tax is paid.
  2. Assessment of penalty. If a licensed organization does not pay tax due on a tax return by the original or extended due date of the return, or if additional tax is due based on an audit or math verification of the return and it is not paid by the original or extended due date of the return, the organization shall pay a penalty of five percent of the tax, or twenty-five dollars, whichever is greater. If an organization does not file a tax return by the original or extended due date of the return, the organization shall pay a penalty of five percent of the tax, or twenty-five dollars, whichever is greater, for each month or fraction of a month during which the return is not filed, not exceeding a total of twenty-five percent.
  3. The attorney general may require a licensed organization to make monthly estimated gaming tax payments if the attorney general determines that the organization is in poor financial condition. If an organization fails to pay any tax or estimated tax, interest, or penalty by the original due date or date set by the attorney general, the attorney general may bring court action to collect it and may suspend the organization’s license. The attorney general may for good cause waive all or part of any interest or penalty and may waive any minimal tax.
  4. If a licensed organization has failed to file a tax return, has been notified by the attorney general of the delinquency, and refuses or neglects within thirty days after the notice to file a proper return, the attorney general shall determine the adjusted gross proceeds and gaming tax due according to the best information available and assess the tax at not more than double the amount. Interest and penalty also must be assessed.
  5. The attorney general may authorize a licensed organization to pay any delinquent tax, interest, or penalty on an installment plan and may set any qualifying conditions.

Source:

S.L. 1995, ch. 484, § 24; 1997, ch. 428, § 17; 1999, ch. 441, § 11; 2003, ch. 449, § 9; 2009, ch. 450, § 3; 2011, ch. 378, § 4.

Effective Date.

The 2011 amendment of this section by section 4 of chapter 378, S.L. 2011 became effective July 1, 2011.

The 2009 amendment of this section by section 3 of chapter 450, S.L. 2009 became effective July 1, 2009.

53-06.1-13. Examination of books and records. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-13.1. Financial statements. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-14. Distributors and manufacturers.

  1. A manufacturer of pull tabs, bingo cards, electronic pull tab devices, or bingo card marking devices shall apply annually for a license and pay a license fee of four thousand dollars. A manufacturer of pull tab dispensing devices shall apply annually for a license and pay a license fee of one thousand dollars. A manufacturer of fifty-fifty raffle systems shall apply annually for a license and pay a license fee of five hundred dollars. A distributor shall apply annually for a license and pay a license fee of one thousand five hundred dollars. 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 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.
  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.
  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:
    1. A specific deal of pull tabs is sold on an exclusive basis;
    2. The manufacturer does not sell deals of pull tabs, paper bingo cards, or gaming equipment to any distributor in the state;
    3. A gaming law or rule prohibits the sale;
    4. The distributor has not provided the manufacturer with proof of satisfactory credit or is delinquent on any payment owed to the manufacturer; or
    5. The distributor has not met the manufacturer’s standard minimum order quantity and freight terms.

Source:

S.L. 1981, ch. 514, § 14; 1987, ch. 609, § 3; 1989, ch. 170, § 7; 1989, ch. 612, § 15; 1989, ch. 618, § 2; 1991, ch. 28, § 28; 1991, ch. 545, § 5; 1991, ch. 551, § 3; 1991, ch. 552, § 4; 1991, ch. 554, § 1; 1993, ch. 499, § 26; 1995, ch. 484, § 26; 1997, ch. 3, § 6; 1997, ch. 428, § 18; 1999, ch. 25, § 9; 1999, ch. 441, § 12; 2001, ch. 460, § 11; 2001, ch. 465, § 1; 2003, ch. 24, § 9; 2003, ch. 449, § 10; 2003, ch. 451, § 1; 2015, ch. 360, § 1, eff July 1, 2015; 2017, ch. 359, § 5, eff August 1, 2017; 2017, ch. 360, § 8, eff August 1, 2017; 2019, ch. 427, § 5, eff August 1, 2019.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 360, S.L. 2015 became effective July 1, 2015.

53-06.1-15. Form and display of license and local permit. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-15.1. Authority of the attorney general.

The attorney general may:

  1. Inspect all sites in which gaming is conducted or inspect all premises where gaming equipment is manufactured or distributed. The attorney general may require a licensed manufacturer to reimburse the attorney general for the reasonable actual cost of transportation, lodging, meals, and incidental expenses incurred in inspecting the manufacturer’s facility.
  2. Inspect all gaming equipment and supplies.
  3. Seize, remove, or impound any gaming equipment, supplies, games, or books and records for the purpose of examination and inspection.
  4. Demand access to and inspect, examine, photocopy, and audit all books and records of applicants, organizations, lessors, manufacturers, distributors, and affiliated companies concerning any income, expense, or use of net proceeds, and determine compliance with this chapter or gaming rules.
  5. Permit the commissioner or proper representative of the internal revenue service of the United States to inspect a tax return or furnish a copy of the tax return, or information concerning any item contained in the return, or disclosed by any audit or investigation report of the gaming activity of any organization or player, or recordkeeping information. However, information cannot be disclosed to the extent that the attorney general determines that the disclosure would identify a confidential informant or seriously impair any civil or criminal investigation. Except when directed by judicial order, or for pursuing civil or criminal charges regarding a violation of this chapter or a gaming rule, or as is provided by law, the attorney general may not divulge nor make known, to any person, any income or expense item contained in any tax return or disclosed by an audit or investigative report of any taxpayer provided to the attorney general by the internal revenue service.
  6. Require a representative of a licensed organization or distributor to participate in training or for good cause prohibit the person from being involved in gaming as an employee or volunteer. The attorney general may for good cause prohibit a person from providing personal or business services to an organization or distributor.
  7. Prohibit a person from playing games if the person violates this chapter, chapter 12.1-28 or 53-06.2, or a gaming rule.
  8. Require or authorize an organization to pay or prohibit an organization from paying a bingo, electronic quick shot bingo, or raffle prize to a player on a dispute or based on a factual determination or a hearing by the attorney general.
  9. Based on reasonable ground or written complaint, suspend, deny, or revoke an organization’s permit or an organization’s, distributor’s, or manufacturer’s application or license for violation, by the organization, distributor, or manufacturer or any officer, director, agent, member, or employee of the organization, distributor, or manufacturer, of this chapter or any gaming rule.
  10. Impose a monetary fine on a licensed organization, organization that has a permit, distributor, or manufacturer for failure to comply with this chapter or any gaming rule. The monetary fine for each violation by an organization is a minimum of twenty-five dollars and may not exceed two percent of the organization’s average quarterly gross proceeds, or five thousand dollars, whichever is greater. The monetary fine for each violation by a distributor is a minimum of one hundred dollars and may not exceed five thousand dollars. The monetary fine for each violation by a manufacturer is a minimum of five hundred dollars and may not exceed two hundred fifty thousand dollars. This fine may be in addition to or in place of a license suspension or revocation.
  11. At any time within three years after any amount of fees, monetary fine, interest, penalty, or tax required to be paid pursuant to this chapter becomes due, bring a civil action to collect the amount due. However, if for any reason there is a change in adjusted gross proceeds or tax liability by an amount which is in excess of twenty-five percent of the amount of adjusted gross proceeds or tax liability originally reported on the tax return, any additional tax determined to be due may be assessed within six years after the due date of the tax return, or six years after the tax return was filed, whichever period expires later. An action may be brought although the person owing the fees or tax is not presently licensed.
  12. Institute an action in any district court for declaratory or injunctive relief against a person, whether or not the person is a gaming licensee, as the attorney general deems necessary to prevent noncompliance with this chapter or gaming rules.
  13. For good cause, require a licensed organization to use the attorney general’s recordkeeping system for any or all games.

Source:

S.L. 1983, ch. 546, § 20; 1989, ch. 612, §§ 16, 17; 1993, ch. 499, § 28; 1995, ch. 484, § 28; 1997, ch. 428, § 19; 1999, ch. 441, § 13; 2001, ch. 460, § 12; 2003, ch. 449, § 11; 2005, ch. 466, § 1; 2017, ch. 360, § 9, eff August 1, 2017.

53-06.1-15.2. Attorney general may bring civil action for collection of fees and tax and to force compliance. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-15.3. Exchange and secrecy of information regarding the internal revenue service. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-15.4. Conditional license — Issuance. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-16. Violation of law or rule — Fraudulent scheme or technique to cheat or skim unlawful — Penalty.

  1. Except as otherwise provided by this chapter, a person who knowingly makes a false statement on a request for record check form or in any application for a permit, or license, or in any accompanying statement, knowingly signs a false record or report, or who fails to maintain sufficient books and records or adequate internal control to substantiate gross proceeds, prizes, cash profits, expenses, or disbursement of net proceeds, or who falsifies any books or records, including any transaction involving the direct or indirect conduct of games, or who violates this chapter, any gaming rule, or of any term of a permit or license is guilty of a class A misdemeanor. If convicted, the person forfeits any gaming license or permit issued to it and is ineligible to reapply for a gaming license or permit for a period of time determined by the attorney general.
  2. It is unlawful for a person:
    1. To use bogus or counterfeit chips or pull tabs or to substitute or use any game, cards, pull tabs, or game piece that have been marked or tampered with.
    2. To employ or have on one’s person any cheating device to facilitate cheating in any game, or to attempt to commit or commit a theft, or to assist in committing any other fraudulent scheme.
    3. To willfully use any fraudulent scheme or technique, including when a person directly or indirectly solicits, provides, or receives inside information of the status of a game of pull tabs for the benefit of any person.
    4. To alter or counterfeit a site authorization, license, or North Dakota gaming stamp.
    5. To knowingly cause, aid, abet, or conspire with another person or to cause any person to violate this chapter or a gaming rule.

A person violating this subsection is guilty of a class A misdemeanor unless the total amount gained through the use of these items, schemes, or techniques resulted in a person obtaining over five hundred dollars, then the offense is a class C felony. However, if a person knowingly uses a fraudulent scheme regarding soliciting, providing, using, or receiving inside information involving the game of pull tabs or uses a fraudulent scheme or technique to cheat or skim involving pull tabs, twenty-one, paddlewheels, or bingo, regardless of the amount gained, the offense is a class C felony.

Source:

S.L. 1981, ch. 514, § 16; 1983, ch. 546, § 15; 1991, ch. 548, § 2; 1993, ch. 499, § 30; 1995, ch. 484, § 31; 1997, ch. 428, § 20; 1999, ch. 441, § 14; 2001, ch. 460, § 13; 2003, ch. 449, § 12.

DECISIONS UNDER PRIOR LAW

Analysis

Constitutionality.

Heightened penalties for pull tabs, bingo, and twenty-one, under former section 53-06.1-16.1, were rationally related to the legislature’s goal of reducing and preventing widespread problems in those three forms of gambling, and former section 53-06.1-16.1 was not arbitrary, unreasonable, or unwarranted. State v. Erickson, 534 N.W.2d 804, 1995 N.D. LEXIS 135 (N.D. 1995).

Specific Intent Not Required.

The words “cheat and skim” in former section 53-06.1-16.1 did not supply a specific-intent element; they merely highlighted the fact the statute applied to both players and dealers of twenty-one. State v. Erickson, 534 N.W.2d 804, 1995 N.D. LEXIS 135 (N.D. 1995).

53-06.1-16.1. Bogus chips, marked cards, cheating devices, or fraudulent schemes unlawful — Penalty. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-16.2. License suspension or revocation — Ineligibility for local permit. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-17. Rules. [Repealed]

Repealed by S.L. 1997, ch. 428, § 21.

53-06.1-18. Compulsive gambling prevention, awareness, crisis intervention, rehabilitation, and treatment services. [Repealed]

Repealed by S.L. 2001, ch. 460, § 14.

CHAPTER 53-06.2 Pari-Mutuel Horse Racing

53-06.2-01. Definitions.

As used in this chapter:

  1. “Breeders’ fund” means a fund, administered by the commission, established to financially reward breeders or owners of North Dakota-bred horses to be paid in accordance with rules as approved by the commission.
  2. “Certificate system” means the system of betting described in section 53-06.2-10.
  3. “Charitable organization” means a nonprofit organization operated for the relief of poverty, distress, or other conditions of public concern in this state and has been so engaged in this state for at least two years.
  4. “Civic and service club” means a branch, lodge, or chapter of a nonprofit national or state organization that is authorized by its written constitution, charter, articles of incorporation, or bylaws to engage in a civic or service purpose in this state and has so existed in this state for at least two years. The term includes a similar local nonprofit organization, not affiliated with a state or national organization, which is so recognized by a resolution adopted by the governing body of the local jurisdiction in which the organization conducts its principal activities, and which has existed in this state for at least two years.
  5. “Commission” means the North Dakota racing commission.
  6. “Executive director” means the executive director of the commission.
  7. “Fraternal organization” means a nonprofit organization in this state, which is a branch, lodge, or chapter of a national or state organization and exists for the common business, brotherhood, or other interests of its members, and has so existed in this state for two years. The term does not include a college or high school fraternity.
  8. “Local jurisdiction” means, with respect to a site inside the city limits of a city, that city, and with respect to a site not inside the city limits of a city, the county in which the site is located.
  9. “Other public-spirited organization” means a nonprofit organization recognized by the governing body of the appropriate local jurisdiction by resolution as public-spirited and eligible under this chapter.
  10. “Purse fund” means a fund, administered by the commission, established to supplement and improve purses offered at racetracks within the state.
  11. “Racing” means live or simulcast horse racing under the certificate system or simulcast dog racing under the certificate system.
  12. “Racing promotion fund” means a fund administered by the commission established to assist in improving and upgrading racetracks in the state, promoting horse racing in the state, and developing new racetracks in the state as necessary and approved by the commission.
  13. “Religious organization” means a nonprofit organization, church, body of communicants, or group gathered in common membership for mutual support and edification in piety, worship, and religious observances, and which has been so gathered or united in this state for at least two years.
  14. “Veterans’ organization” means a congressionally chartered organization in this state, or a branch, lodge, or chapter of a nonprofit national or state organization in this state, the membership of which consists of individuals who were members of the armed services or forces of the United States, and which has so been in existence in this state for at least two years.

Source:

S.L. 1987, ch. 618, § 1; 1989, ch. 624, § 1; 1991, ch. 556, § 1; 1993, ch. 502, § 1; 2007, ch. 448, § 1; 2021, ch. 390, § 1, eff April 16, 2021.

Effective Date.

The 2007 amendment of this section by section 1 of chapter 448, S.L. 2007 became effective July 1, 2007.

53-06.2-02. Racing commission — Members — Appointment — Term — Qualifications — Compensation.

  1. A North Dakota racing commission is established consisting of the chairman and four other members appointed by the governor. One of the members must be appointed from a list of four nominees, one of whom is nominated by the state chapter or affiliate of the American quarter horse racing association, one of whom is nominated by the state chapter or affiliate of the United States trotting association, one of whom is nominated by the state chapter or affiliate of the international Arabian horse association, and one of whom is nominated by the state chapter or affiliate of the North Dakota thoroughbred association. The members serve five-year terms and until a successor is appointed and qualified. A member appointed to fill a vacancy arising from other than the natural expiration of a term serves for the unexpired portion of the term and may be reappointed. The terms of the commissioners must be staggered so that one term expires each July first. At the expiration of the five-year term of each incumbent member of the commission, the governor shall appoint a new member to the commission.
  2. A person is ineligible for appointment to the commission if that person has not been a resident of this state for at least two years before the date of appointment. A person is also ineligible if that person is not of such character and reputation as to promote public confidence in the administration of racing in this state. A person who has a financial interest in racing cannot be a member of the commission and cannot be employed by the commission. Failure to maintain compliance with this subsection is grounds for removal from the commission or from employment with the commission. For purposes of this section, a person has a financial interest in racing if that person has an ownership interest in horses running at live or simulcast meets conducted or shown in this state subject to this chapter or rules of the commission, is required to be licensed under this chapter or the rules of the commission, or who derives any direct financial benefit from racing, individually or by or through an entity or other person, as regulated by this chapter or the rules of the commission.
  3. Commission members are entitled to seventy-five dollars per day for compensation, and mileage and expense reimbursement as allowed to other state employees.

Source:

S.L. 1987, ch. 618, § 2; 1989, ch. 624, § 2; 1989, ch. 625, § 1; 1991, ch. 557, § 1; 1991, ch. 558, § 1; 1993, ch. 502, § 2; 2001, ch. 3, § 16; 2005, ch. 467, § 1; 2005, ch. 3, § 15.

53-06.2-03. Executive director of racing — Appointment — Qualifications — Salary — Duties — Other personnel.

  1. The commission shall appoint an executive director of racing. The commission shall establish the executive director’s qualifications and salary.
  2. The executive director shall devote such time to the duties of the office as the commission may prescribe. The executive director is the executive officer of the commission and shall enforce the rules and orders of the commission. The executive director shall perform other duties the commission prescribes.
  3. The executive director may employ other persons as authorized by the commission.

Source:

S.L. 1987, ch. 618, § 3; 1989, ch. 624, § 3; 1989, ch. 625, § 2; 2021, ch. 390, § 2, eff April 16, 2021.

Notes to Decisions

Civil Rights Action.

Racing simulcast provider and its owner relied on mere speculation to support their allegation that a conspiracy existed between an employee and the other defendants to ruin the gambling success of the provider. The employee reported the alleged illegal conduct of the provider to the Director of Racing, who had the responsibility to contact the North Dakota Attorney General’s office regarding allegations pursuant to N.D.C.C. § 53-06.2-03. Bala v. Stenehjem, 671 F. Supp. 2d 1067, 2009 U.S. Dist. LEXIS 111133 (D.N.D. 2009).

53-06.2-04. Duties of commission.

The commission shall:

  1. Provide for racing under the certificate system.
  2. Set racing dates.
  3. Adopt rules for effectively preventing the use of any substance, compound items, or combinations of any medicine, narcotic, stimulant, depressant, or anesthetic which could alter the normal performance of a racehorse, unless specifically authorized by the commission.
  4. Supervise and check the making of pari-mutuel pools, pari-mutuel machines, and equipment at all races held under the certificate system.
  5. Adopt rules governing, restricting, or regulating bids on licensees’ concessions and leases on equipment.
  6. Consider all proposed extensions, additions, or improvements to the buildings, stables, or tracks on property owned or leased by a licensee.
  7. Exclude from racetracks or simulcast pari-mutuel wagering facilities any person who violates any rule of the commission or any law.
  8. Determine the cost of inspections performed under subsection 3 of section 53-06.2-05 and require the licensee to pay that cost.
  9. Report biennially to the legislative council regarding the operation of the commission.
  10. Provide notice to the North Dakota horsemen’s council of meetings held by the commission and permit the North Dakota horsemen’s council to participate in the meetings through placement of items on the agenda.
  11. Complete, distribute, and post on the commission’s website the minutes of each commission meeting within thirty days of that meeting or before the next meeting of the commission, whichever occurs first.

Source:

S.L. 1987, ch. 618, § 4; 1991, ch. 556, § 2; 2003, ch. 36, § 18; 2007, ch. 448, § 2.

Effective Date.

The 2007 amendment of this section by section 2 of chapter 448, S.L. 2007 became effective July 1, 2007.

53-06.2-04.1. North Dakota-bred registry.

The commission shall provide for registration of a North Dakota-bred horse for qualification for breeders’ fund awards or purse supplements. The administrative cost must be paid from the breeders’ fund.

Source:

S.L. 2007, ch. 449, § 1; 2015, ch. 362, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 362, S.L. 2015 became effective August 1, 2015.

The 2015 amendment of this section by section 1 of chapter 130, S.L. 2015 became effective July 1, 2015.

53-06.2-05. Powers of commission.

The commission may:

  1. Compel the production of all documents showing the receipts and disbursements of any licensee and determine the manner in which such financial records are to be kept.
  2. Investigate the operations of any licensee and enter any vehicle or place of business, residence, storage, or racing of any licensee on the grounds of a licensed association to determine whether there has been compliance with the provisions of this chapter and rules adopted under this chapter, and to discover and seize any evidence of noncompliance.
  3. Request appropriate state officials to perform inspections necessary for the health and safety of spectators, employees, participants, and horses that are lawfully on a racetrack.
  4. License all participants in the racing and simulcast pari-mutuel wagering industry and require and obtain information the commission deems necessary from license applicants. Licensure of service providers, totalizator companies, site operators, and organizations applying to conduct or conducting pari-mutuel wagering must be approved by the attorney general. The attorney general may not grant a license denied by the commission. The commission may obtain a statewide and nationwide criminal history record check from the bureau of criminal investigation for the purpose of determining suitability or fitness for a license. The nationwide check must be conducted in the manner provided in section 12-60-24. All costs associated with obtaining a background check are the responsibility of the applicant for a license.
  5. Receive moneys from the North Dakota horse racing foundation for deposit in the purse fund, breeders’ fund, or racing promotion fund in accordance with subsection 6 of section 53-06.2-11.
  6. Adopt additional rules for the administration, implementation, and regulation of activities conducted pursuant to this chapter. The commission shall deposit any fees collected under authority of this subsection in the racing commission operating fund. Subject to legislative appropriation, the commission may spend the fees for operating costs of the commission.

Source:

S.L. 1987, ch. 618, § 5; 1989, ch. 624, § 4; 1991, ch. 556, § 3; 1993, ch. 502, § 3; 2005, ch. 468, § 1; 2007, ch. 448, § 3; 2007, ch. 115, § 19.

Effective Date.

The 2007 amendment of this section by section 3 of chapter 448, S.L. 2007 became effective July 1, 2007.

The 2007 amendment of this section by section 19 of chapter 115, S.L. 2007 became effective August 1, 2007.

Notes to Decisions

Civil Rights Actions.

Former Director of Racing for the North Dakota Racing Commission was not liable to a racing simulcast provider and its owner under 42 U.S.C.S. § 1983 for enforcing the rules and regulations that existed when the state and federal cases against them were filed because his statutory duties were limited to enforcing the rules and orders of the North Dakota Racing Commission and performing other duties the Racing Commission prescribed under N.D.C.C. § 53-06.2-13. He was also not liable for the Racing Commission’s failure to promulgate new administrative regulations to control account wagering activities because the power to implement new regulations rested with the North Dakota Racing Commission under N.D.C.C. § 53-06.2-05, not the director. Bala v. Stenehjem, 671 F. Supp. 2d 1067, 2009 U.S. Dist. LEXIS 111133 (D.N.D. 2009).

53-06.2-06. Organizations eligible to conduct racing and simulcast pari-mutuel wagering.

Civic and service clubs; charitable, fraternal, religious, and veterans’ organizations; and other public-spirited organizations may be licensed to conduct racing and simulcast pari-mutuel wagering as authorized by this chapter.

Source:

S.L. 1987, ch. 618, § 6; 1991, ch. 556, § 4.

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:
    1. The name and post-office address of the applicant.
    2. 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.
    3. A statement of the applicant’s previous history and association sufficient to establish that the applicant is an eligible organization.
    4. The time, place, and number of days the racing meet is proposed to be conducted.
    5. The type of racing to be conducted.
    6. 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.

Source:

S.L. 1987, ch. 618, § 7; 2007, ch. 448, § 4; 2021, ch. 390, § 3, eff April 16, 2021.

Effective Date.

The 2007 amendment of this section by section 4 of chapter 448, S.L. 2007 became effective July 1, 2007.

53-06.2-08. License authorization and fees.

  1. Each license issued under the certificate system must describe the place, track, or racecourse at which the licensee may hold races. Every license must specify the number of days the licensed races may continue, the hours during which racing may be conducted, and the number of races that may be held each day. Races authorized under this chapter may be held during the hours approved by the commission and within the hours permitted by state law.
  2. The commission may charge a license fee for racing commensurate with the size and attendance of the race meet.
  3. Each applicant for a license under this chapter shall give bond or a letter of credit payable to this state with good security as approved by the commission. The bond or letter of credit must be in the amount the commission determines will adequately protect the amount normally due and owing to this state in a regular payment period or, in the case of new or altered conditions, based on the projected revenues.
  4. The commission may grant licenses to horse owners, jockeys, riders, agents, trainers, grooms, stable foremen, exercise workers, veterinarians, valets, concessionaires, service providers, employees of racing associations, and such other persons as determined by the commission. Licensure of service providers, totalizator companies, site operators, and organizations applying to conduct or conducting pari-mutuel wagering must be approved by the attorney general. The attorney general may not grant a license denied by the commission. License fees are as established by the commission.
  5. The commission may establish the period of time for which licenses issued under this chapter are valid.
  6. The commission shall deposit all fees collected under this section in the racing commission operating fund. Subject to legislative appropriation, the commission may spend the fees for operating costs of the commission.

Source:

S.L. 1987, ch. 618, § 8; 1989, ch. 624, § 5; 1989, ch. 625, § 3; 1993, ch. 502, §§ 4, 5; 2005, ch. 468, § 2; 2007, ch. 448, § 5; 2015, ch. 363, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 363, S.L. 2015 became effective August 1, 2015.

The 2007 amendment of this section by section 5 of chapter 448, S.L. 2007 became effective July 1, 2007.

Collateral References.

Disciplinary proceedings against horse trainer or jockey, 59 A.L.R.5th 203.

53-06.2-09. Allotment of racing days.

If an applicant is eligible to receive a license under this chapter, the commission shall fix the racing days that are allotted to that applicant and issue a license for the holding of racing meets.

Source:

S.L. 1987, ch. 618, § 9; 1993, ch. 502, § 6.

53-06.2-10. Certificate system — Rules.

The certificate system allows a licensee to receive money from any person present at a live horse race, 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 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 racing.

Source:

S.L. 1987, ch. 618, § 10; 1993, ch. 502, § 7.

53-06.2-10.1. Simulcast wagering.

In addition to racing under the certificate system, as authorized by this chapter, and conducted upon the premises of a racetrack, simulcast pari-mutuel and account wagering may be conducted in accordance with this chapter or rules adopted by the commission under this chapter in accordance with chapter 28-32. Any organization qualified under section 53-06.2-06 to conduct racing may make written application to the commission for the conduct of simulcast pari-mutuel and account wagering on races held at licensed racetracks inside the state or racetracks outside the state, or both. Licensure of service providers, totalizator companies, site operators, or organizations applying to conduct or conducting simulcast or account wagering must be approved by the attorney general. The attorney general may not grant a license denied by the commission. Notwithstanding any other provision of this chapter, the commission may authorize any licensee to participate in interstate or international combined wagering pools with one or more other racing jurisdictions. Anytime that a licensee participates in an interstate or international combined pool, the licensee, as prescribed by the commission, may adopt the take-out of the host jurisdiction or facility. The commission may permit a licensee to use one or more of its races or simulcast programs for an interstate or international combined wagering pool at locations outside its jurisdiction and may allow pari-mutuel pools in other states to be combined with pari-mutuel pools in its jurisdiction for the purpose of establishing an interstate or international combined wagering pool. The participation by a licensee in a combined interstate or international wagering pool does not cause that licensee to be considered to be doing business in any jurisdiction other than the jurisdiction in which the licensee is physically located. Pari-mutuel taxes or commissions may not be imposed on any amounts wagered in an interstate or international combined wagering pool other than amounts wagered within this jurisdiction. The certificate system also permits pari-mutuel wagering to be conducted through account wagering. As used in this section, “account wagering” means a form of pari-mutuel wagering in which an individual deposits money in an account and uses the account balance to pay for pari-mutuel wagers. An account wager made on an account established in this state may only be made through the licensed simulcast service provider approved by the attorney general and authorized by the commission to operate the simulcast pari-mutuel wagering system under the certificate system. The attorney general may not grant a license denied by the commission. An account wager may be made in person, by direct telephone communication, or through other electronic communication in accordance with rules adopted by the commission. Breakage for interstate or international combined wagering pools must be calculated in accordance with the statutes or rules of the host jurisdiction and must be distributed among the participating jurisdictions in a manner agreed to among the jurisdictions.

Source:

S.L. 1989, ch. 624, § 8; 1991, ch. 556, § 5; 2001, ch. 466, § 1; 2007, ch. 448, § 6; 2013, ch. 398, § 1.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 398, S.L. 2013 became effective August 1, 2013.

The 2007 amendment of this section by section 6 of chapter 448, S.L. 2007 became effective July 1, 2007.

Notes to Decisions

Relationship to Other Law.

Canon of construing a statute to avoid a constitutional violation did not mean N.D.C.C. § 53-06.2-10.1 had to be construed to imply a tax on account wagering because the statute's plain language did not necessarily violate N.D. Const. art. XI, § 25. PW Enters., Inc. v. North Dakota (In re Racing Servs.), 779 F.3d 498, 2015 U.S. App. LEXIS 2574 (8th Cir. N.D. 2015).

Taxes collected from a bankrupt horse-racing simulcast service provider had to be returned to the bankruptcy estate because, (1) when N.D.C.C. § 53-06.2-10.1 was amended to allow such wagering, N.D.C.C. § 53-06.2-11 was not amended to impose a tax, and (2) North Dakota law did not imply a tax. PW Enters., Inc. v. North Dakota (In re Racing Servs.), 779 F.3d 498, 2015 U.S. App. LEXIS 2574 (8th Cir. N.D. 2015).

Collateral References.

Validity, construction, and application of statute or ordinance prohibiting or regulating use of messenger services to place wagers in pari-mutuel pool, 78 A.L.R.4th 483.

53-06.2-11. Bet payoff formulas — Uses by licensee of funds in excess of expenses — Payment to general fund.

  1. For wagering on live horse racing:
    1. In win, place, and show pari-mutuel pools, the licensee may deduct no more than twenty percent of the amount wagered. Of the amount wagered, the licensee shall pay:
      1. One-half of one percent to the state treasurer to be deposited in the general fund.
      2. One-half of one percent to the commission to be deposited in the breeders’ fund.
      3. One-half of one percent to the commission to be deposited in the purse fund.
      4. One-half of one percent to the commission to be deposited in the racing promotion fund.
    2. In daily double, quinella, exacta, trifecta, or other combination pari-mutuel pools, the licensee may deduct no more than twenty-five percent of the amount wagered. Of the amount wagered, the licensee shall pay:
      1. One-half of one percent to the state treasurer to be deposited in the general fund.
      2. One-half of one percent to the commission to be deposited in the breeders’ fund.
      3. One-half of one percent to the commission to be deposited in the purse fund.
      4. One-half of one percent to the commission to be deposited in the racing promotion fund.
  2. For simulcast and account wagering:
    1. In win, place, and show pari-mutuel pools, the licensee may deduct no more than twenty percent of the amount wagered. Except as limited in subdivision c, of the amount wagered by simulcast and account wagering in win, place, and show pari-mutuel pools, the licensee shall pay:
      1. One-sixteenth of one percent to the state treasurer to be deposited in the general fund.
      2. One-sixteenth of one percent to the commission to be deposited in the breeders’ fund.
      3. One-sixteenth of one percent to the commission to be deposited in the purse fund.
      4. One-sixteenth of one percent to the commission to be deposited in the racing promotion fund.
    2. Except as limited in subdivision c, of the amount wagered by simulcast and account wagering in daily double, quinella, exacta, trifecta, or other combination pari-mutuel pools, the licensee shall pay:
      1. One-sixteenth of one percent to the state treasurer to be deposited in the general fund.
      2. One-sixteenth of one percent to the commission to be deposited in the breeders’ fund.
      3. One-sixteenth of one percent to the commission to be deposited in the purse fund.
      4. One-sixteenth of one percent to the commission to be deposited in the racing promotion fund.
    3. For the fiscal year commencing July 1, 2013, the licensee may not pay more than four hundred thousand dollars. For the fiscal year commencing July 1, 2014, and thereafter, the licensee may not pay more than four hundred twenty thousand dollars.
  3. For all pari-mutuel wagering the licensee shall pay to the commission the amount due for all unclaimed tickets and all breakage on the first twenty million dollars wagered in each fiscal year with each service provider. The amount received must be deposited in the racing promotion fund.
  4. The licensee conducting wagering on live racing, simulcast wagering, or account wagering shall retain all other money in the pari-mutuel pool and pay it to bettors holding winning tickets as provided by rules adopted by the commission.
  5. A licensee may not use any of the portion deducted for expenses under subsections 1 and 2 for expenses not directly incurred by the licensee in conducting pari-mutuel racing under the certificate system. After paying qualifying expenses, the licensee shall use the remainder of the amount so withheld only for eligible uses allowed to charitable gambling organizations under section 53-06.1-11.1.
  6. The commission shall deposit the moneys received pursuant to subsections 1, 2, and 3 and from the North Dakota horse racing foundation pursuant to subsection 5 of section 53-06.2-05 in the breeders’ fund, the purse fund, and the racing promotion fund. Moneys, and any earnings on the moneys, in the breeders’ fund, purse fund, and racing promotion fund are appropriated to the commission on a continuing basis to carry out the purposes of those funds under this chapter and must be administered and disbursed in accordance with rules adopted by the commission. The commission may not transfer money among the funds. The commission shall distribute in-state awards and payment supplements from the breeders’ fund in the same calendar year the money was earned by the recipient. The commission shall distribute out-of-state awards and payment supplements from the breeders’ fund, if made available by the commission, within two months of the end of the calendar year the money was earned by the recipient. The commission shall distribute payments awarded to qualified owners and breeders from the breeders’ fund without requiring owners and breeders to apply for the payments. The commission may receive twenty-five thousand dollars per year or twenty-five percent per year, whichever is greater, from the racing promotion fund for the payment of the commission’s operating expenses.

Source:

S.L. 1987, ch. 618, § 11; 1989, ch. 624, § 6; 1989, ch. 625, § 4; 1991, ch. 556, § 6; 1991, ch. 559, § 1; 1993, ch. 499, § 34; 1993, ch. 502, § 8; 1995, ch. 487, § 1; 1999, ch. 50, § 70; 2001, ch. 3, § 17; 2003, ch. 452, § 1; 2005, ch. 467, § 2; 2005, ch. 469, § 1; 2007, ch. 448, § 7; 2007, ch. 449, § 2; 2009, ch. 455, § 1; 2011, ch. 380, § 1; 2013, ch. 398, § 2; 2017, ch. 363, § 1, eff August 1, 2017.

Effective Date.

The 2013 amendment of this section by section 2 of chapter 398, S.L. 2013 became effective August 1, 2013.

The 2011 amendment of this section by section 1 of chapter 380, S.L. 2011 became effective July 1, 2011.

The 2009 amendment of this section by section 1 of chapter 455, S.L. 2009 became effective July 1, 2009.

The 2007 amendment of this section by section 2 of chapter 449, S.L. 2007 became effective August 1, 2007.

The 2007 amendment of this section by section 7 of chapter ch. 448, S.L. 2007 became effective July 1, 2007.

Notes to Decisions

Application.

Taxes collected from a bankrupt horse-racing simulcast service provider had to be returned to the bankruptcy estate because, (1) when N.D.C.C. § 53-06.2-10.1 was amended to allow such wagering, N.D.C.C. § 53-06.2-11 was not amended to impose a tax, and (2) North Dakota law did not imply a tax. PW Enters., Inc. v. North Dakota (In re Racing Servs.), 779 F.3d 498, 2015 U.S. App. LEXIS 2574 (8th Cir. N.D. 2015).

N.D. Const. art. XI, § 25 , requiring gaming proceeds to be used for charitable purposes, did not mean N.D.C.C. § 53-06.2-11 did not apply to account wagering because North Dakota law did not allow a tax to be implied. PW Enters., Inc. v. North Dakota (In re Racing Servs.), 779 F.3d 498, 2015 U.S. App. LEXIS 2574 (8th Cir. N.D. 2015).

Application.

Bankruptcy court did not err in denying creditor claims for unauthorized taxes assessed through the debtor’s horse wagering service business and returned by the state; no unjust enrichment was shown because the improperly collected taxes were not analogous to a sales tax on consumers but instead were paid by the debtor under a former version of this section, and any error in referring to the debtor’s “profit” was harmless because no party was using funds for charitable purposes. PW Enters. v. Bala (In re Racing Servs.), — F. Supp. 3d —, 617 B.R. 641, 2020 U.S. Dist. LEXIS 106642 (D.N.D. 2020).

53-06.2-12. Audits and investigations by state auditor.

On request of the commission, the state auditor shall conduct audits and investigate the operations of any licensee. The commission shall reimburse the state auditor for all services rendered.

Source:

S.L. 1987, ch. 618, § 12.

53-06.2-13. Duty of attorney general to participate in certain hearings and to conduct investigations — Employment of private counsel by commission.

  1. The attorney general shall represent the state in all hearings before the commission and shall prosecute all criminal proceedings arising from violations of this chapter. The attorney general may require payment for any services rendered to the racing commission. Payment for the services must be deposited in the attorney general’s operating fund. The commission may employ private counsel for adoption of rules and to ensure that its hearings are conducted fairly.
    1. The attorney general may audit and investigate service providers, totalizator companies, site operators, or organizations applying to conduct or conducting pari-mutuel wagering. The attorney general may:
      1. Inspect all sites in which pari-mutuel wagering is conducted.
      2. Inspect all pari-mutuel wagering equipment and supplies.
      3. Seize, remove, or impound any pari-mutuel equipment, supplies, or books and records for the purpose of examination and inspection.
      4. Inspect, examine, photocopy, and audit all books and records.
    2. The commission shall reimburse the attorney general for auditing and investigation. Payment for auditing and investigation must be deposited in the attorney general’s operating fund.

Source:

S.L. 1987, ch. 618, § 13; 1989, ch. 625, § 5; 2005, ch. 467, § 3; 2007, ch. 448, § 8.

Effective Date.

The 2007 amendment of this section by section 8 of chapter 448, S.L. 2007 became effective July 1, 2007.

Notes to Decisions

Civil Rights Actions.

Former Director of Racing for the North Dakota Racing Commission was not liable to a racing simulcast provider and its owner under 42 U.S.C.S. § 1983 for enforcing the rules and regulations that existed when the state and federal cases against them were filed because his statutory duties were limited to enforcing the rules and orders of the North Dakota Racing Commission and performing other duties the Racing Commission prescribed under N.D.C.C. § 53-06.2-13. He was also not liable for the Racing Commission’s failure to promulgate new administrative regulations to control account wagering activities because the power to implement new regulations rested with the North Dakota Racing Commission under N.D.C.C. § 53-06.2-05, not the director. Bala v. Stenehjem, 671 F. Supp. 2d 1067, 2009 U.S. Dist. LEXIS 111133 (D.N.D. 2009).

Immunity.

Racing simulcast provider and its owner were not entitled to recovery under 42 U.S.C.S. § 1983 in their action against the state attorney general because the attorney general’s participation in investigating a charge of illegal gambling operations was consistent with his authority under N.D.C.C. § 53-06.2-13, affording him protection by absolute immunity. Even if he were only protected by qualified immunity, his communications with the receiver did not violate a clearly established constitutional or statutory right of which a reasonable person would have known and he was protected by qualified immunity. Bala v. Stenehjem, 671 F. Supp. 2d 1067, 2009 U.S. Dist. LEXIS 111133 (D.N.D. 2009).

53-06.2-14. Denial, suspension, and revocation of licenses — Reasons.

The commission may deny, suspend, or revoke licenses under the certificate system and privileges granted by it, and it may terminate racing privileges for just cause. Actions constituting just cause include:

  1. Any action or attempted action by a person contrary to any law.
  2. Corrupt practices, which include:
    1. Prearranging or attempting to prearrange the order of finish of a race.
    2. Failing to properly pay winnings to a bettor or to properly return change to a bettor purchasing a ticket.
    3. Falsifying or manipulating the odds on any entrant in a race.
  3. Any violation of the rules of racing adopted by the commission.
  4. Willful falsification or misstatement of fact in an application for racing privileges.
  5. Material false statement to a racing official or to the commission.
  6. Willful disobedience of a commission order or of a lawful order of a racing official other than a commission member.
  7. Continued failure or inability to meet financial obligations connected with racing meets.
  8. Failure or inability to properly maintain a racetrack.

Source:

S.L. 1987, ch. 618, § 14.

53-06.2-15. Revocation, suspension, fine — Procedure.

The commission, on proof of violation by a licensee, its agents or employees, of this chapter or any rule adopted by the commission may, on reasonable notice to the licensee and after giving the licensee an opportunity to be heard, fine the licensee or revoke or suspend the license. If the license is revoked, the licensee is not eligible to receive another license within twelve months from the date of revocation. Every decision or order of the commission must be made in writing and filed with the executive director for preservation as a permanent record of the commission. The decision must be signed by the chairman, attested by the executive director, and dated.

Source:

S.L. 1987, ch. 618, § 15; 2021, ch. 390, § 4, eff April 16, 2021.

Notes to Decisions

Immunity.

In a 42 U.S.C.S. § 1983 action, the North Dakota Racing Commission was protected by absolute immunity for refusing to renew a simulcast service provider license because the procedures used to revoke, suspend, or fine a simulcast provider under N.D.C.C. § 53-06.2-15 were quasi-judicial in nature. Bala v. Stenehjem, 671 F. Supp. 2d 1067, 2009 U.S. Dist. LEXIS 111133 (D.N.D. 2009).

53-06.2-16. Prohibited acts — Penalties.

  1. No person may conduct a pari-mutuel horse race unless that person is licensed by the commission. Violation of this subsection is a class A misdemeanor.
  2. No person may prearrange or attempt to prearrange the order of finish of a race. Violation of this subsection is a class C felony.

Source:

S.L. 1987, ch. 618, § 16; 1989, ch. 624, § 7.

CHAPTER 53-07 Outdoor Recreation Agency [Repealed]

[Repealed by S.L. 1977, ch. 503, § 6]

Note.

For present provisions, see chapter 55-08.

CHAPTER 53-08 Liability Limited for Owner of Recreation Lands

53-08-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Charge” means the amount of money asked in return for an invitation to enter or go upon the land. “Charge” does not include vehicle, parking, shelter, or other similar fees required by any public entity.
  2. “Commercial purpose” means a deliberative decision of an owner to invite or permit the use of the owner’s property for normal business transactions, including the buying and selling of goods and services. The term includes any decision of an owner to invite members of the public onto the premises for recreational purposes as a means of encouraging business transactions or directly improving the owner’s commercial activities other than through good will. “Commercial purpose” does not include the operation of public lands by a public entity except any direct activity for which there is a charge for goods or services.
  3. “Land” includes all public and private land, roads, water, watercourses, and ways and buildings, structures, and machinery or equipment thereon.
  4. “Owner” includes tenant, lessee, occupant, or person in control of the premises.
  5. “Recreational purposes” includes any activity engaged in for the purpose of exercise, relaxation, pleasure, or education.

Source:

S.L. 1965, ch. 337, § 1; 1995, ch. 162, § 7; 2011, ch. 381, § 1.

Effective Date.

The 2011 amendment of this section by section 1 of chapter 381, S.L. 2011 became effective August 1, 2011.

Notes to Decisions

Political Subdivision Liability.

Where injuries are sustained by a nonpaying recreational user, this chapter precludes liability against the political subdivision for ordinary acts of negligence by its employees which relate to the condition of the property; unless the political subdivision, through its employees, has committed a willful or malicious failure to guard or warn against a dangerous condition, use, structure, or activity on the property, the political subdivision is not liable. Fastow v. Burleigh County Water Resource Dist., 415 N.W.2d 505, 1987 N.D. LEXIS 427 (N.D. 1987).

Under subsection (1) of section 32-12.1-03 a political subdivision is liable for injury caused from a condition or use of real property only under those circumstances in which a private person would be liable for such injury; this provision unambiguously makes the liability protections of this chapter applicable to political subdivisions in the same manner and under the same circumstances as those protections are applicable to a private owner of recreational land. Fastow v. Burleigh County Water Resource Dist., 415 N.W.2d 505, 1987 N.D. LEXIS 427 (N.D. 1987).

Under section 32-12.1-05 the defense of governmental immunity is waived when a political subdivision purchases liability insurance coverage; thus, when a political subdivision has such insurance coverage the liability protections afforded under this chapter are inapplicable. Fastow v. Burleigh County Water Resource Dist., 415 N.W.2d 505, 1987 N.D. LEXIS 427 (N.D. 1987).

City was not immune under the recreational use statute from plaintiff’s claims for personal injuries she sustained while using city bike path. Hovland v. City of Grand Forks, 1997 ND 95, 563 N.W.2d 384, 1997 N.D. LEXIS 89 (N.D. 1997).

In an action against a school district for injuries sustained by a student who was rehearsing for a school project, the district court erred when it applied the recreational use statutes, N.D.C.C. ch. 53-08, to bar the claim because those statutes were not intended to relieve school districts of duties owed their students, who were mandated by law to attend their schools. M.M. v. Fargo Pub. Sch. Dist. No. 1, 2010 ND 102, 783 N.W.2d 806, 2010 N.D. LEXIS 98 (N.D. 2010).

“Recreational Purposes”.

Recreational use immunity statutes, N.D.C.C. ch. 53-08, did not bar the vendor’s negligence claims because, although the city’s intent in opening its auditorium may have been for a public recreational use, the vendor’s presence at the auditorium on the day before the seniors event was for employment purposes and not for a recreational purpose where he was there to set up his company’s booth for the event. The plain language of the statute was not so broad as to include a person present on the property for purposes of the person’s employment because, even though the word “includes,” as used in the context of N.D.C.C. § 53-08-01(4), suggested a broadening of the activities which were for “recreational purposes,” the Supreme Court of North Dakota could not conclude it encompassed all activities. Leet v. City of Minot, 2006 ND 191, 721 N.W.2d 398, 2006 N.D. LEXIS 199 (N.D. 2006).

Because a section line was a public road under N.D.C.C. § 24-07-03, the recreational use immunity statutes, N.D.C.C. ch. 53-08, did not apply. Kappenman v. Klipfel, 2009 ND 89, 765 N.W.2d 716, 2009 N.D. LEXIS 96 (N.D. 2009).

Premises liability suit, brought after a wife tripped over a pothole in an owner’s parking lot while visiting an exhibition hosted by a church as part of an outreach mission, was wrongly dismissed on summary judgment because there were disputed issues of fact about whether the owner and the church were entitled to recreational use immunity. The church was a rent-paying tenant of the owner’s property; the church held the exhibition as part of a youth outreach program, which was not necessarily congruent with only a recreational purpose; and the church procured sponsors for the exhibition and charged contestants a registration fee to enter the contests. Schmidt v. Gateway Cmty. Fellowship, 2010 ND 69, 781 N.W.2d 200, 2010 N.D. LEXIS 69 (N.D. 2010).

District court properly granted summary judgment in favor of a county fair in an attendee's personal injury action because, while the attendee stepped on a rotten board in a grandstand and fell to the ground, the fair was protected from liability by recreational use immunity where the attendee stipulated that the fair was a public entity, the fairgrounds and grandstand were public lands operated solely for the fair's non-profit and tax-exempt purposes, and the attendee did not pay any charge for entry to the fairgrounds, to the grandstand area, or to observe a fireworks display. Woody v. Pembina Cnty. Annual Fair & Exhibition Ass'n, 2016 ND 56, 877 N.W.2d 70, 2016 N.D. LEXIS 62 (N.D. 2016).

Snowmobiling Accident.

The trial court did not err in determining that this chapter was applicable to an action arising out of the death of plaintiff’s decedent, who was killed while snowmobiling when he struck an unmarked guy wire of defendant’s on the side of a county road, thereby precluding liability on the part of defendant for ordinary negligence. Grant of summary judgment was reversed on grounds that there was competent admissible evidence upon which a jury could have based an inference of willful or malicious conduct and thus that there were genuine issues of material fact. Stokka v. Cass County Elec. Coop., 373 N.W.2d 911, 1985 N.D. LEXIS 398 (N.D. 1985).

Summary judgment was granted for the landowner because the landowner did not owe any different type of duty to the injured plaintiff if the plaintiff was a trespasser and was snowmobiling on a portion of the land that was posted for no trespassing, because the immunities of the recreational use statute also applied to trespassers. Cudworth v. Midcontinent Communs., 2003 U.S. Dist. LEXIS 6242 (D.N.D. Apr. 11, 2003).

Recreational use immunity statute, N.D.C.C. § 53-08-01 et seq., operates to absolve landowners of any affirmative duty to entering recreational users as: (1) the statute does not explicitly require that landowners open their property to public use before receiving immunity; (2) the statute does not specify that immunity applies only where entrants are invitees or licensees; and (3) the statute applies regardless of a landowner’s decision to close some or all of its property and irrespective of an entrant’s particular common law status as an invitee, a licensee, or a trespasser. Cudworth v. Midcontinent Communs., 380 F.3d 375, 2004 U.S. App. LEXIS 17859 (8th Cir. N.D. 2004).

Collateral References.

Children: private owner’s liability to trespassing children for injury sustained by sledding, tobogganing, skiing, skating or otherwise sliding on his land, 19 A.L.R.3d 184.

Liability for injury or death of nonparticipant caused by water skiing, 67 A.L.R.3d 1218.

Liability of operator of skiing, tobogganing, or bobsledding facilities for injury to patron or participant, 95 A.L.R.3d 203.

Public rights of recreational boating, fishing, wading, or the like in inland stream the bed of which is privately owned, 6 A.L.R.4th 1030.

Liability for injuries to or death of, water skiers, 34 A.L.R.5th 77.

Criminal and civil regulation of paintball guns, 11 A.L.R.6th 525.

Law Reviews.

Summary ofsignificant decisions rendered by the North Dakota Supreme Court in1989 relating to government immunity and liability,65 N.D. L. Rev. 574 (1989).

North Dakota Supreme Court Review (Olson v. Bismarck Parks & Rec. Dist., 2002 ND 61, 642 N.W.2d 864), see 79 N.D. L. Rev. 589 (2003).

North Dakota Supreme Court Review (Leet v. City of Minot), 83 N.D. L. Rev. 1085 (2007).

Case Comment: Schools — District Liability: Political Subdivision Liability and School Duties Prevail Over Recreational Use Immunity: M.M. v. Fargo Public School District No. 1, 2010 ND 102, 783 N.W.2d 806, see 86 N.D. L. Rev. 689 (2010).

53-08-02. Duty of care of owner.

  1. Subject to the provisions of section 53-08-05, an owner of land owes no duty of care to keep the premises safe for entry or use by others for recreational purposes, regardless of the location and nature of the recreational purposes and whether the entry or use by others is for their own recreational purposes or is directly derived from the recreational purposes of other persons, or to give any warning of a dangerous condition, use, structure, or activity on such premises to persons entering for such purposes.
  2. This section does not apply to:
    1. A person that enters land to provide goods or services at the request of, and at the direction or under the control of, an owner; or
    2. An owner engaged in a for-profit business venture that directly or indirectly invites members of the public onto the premises for commercial purposes or during normal periods of commercial activity in which members of the public are invited.

Source:

S.L. 1965, ch. 337, § 2; 2011, ch. 381, § 2.

Effective Date.

The 2011 amendment of this section by section 2 of chapter 381, S.L. 2011 became effective August 1, 2011.

Notes to Decisions

Effect of Nuisance.

Injured party could not recover under a theory that an obstruction on the land owner’s property presented a nuisance because the landowner was immune from liability under this section and the landowner thus did not owe the injured party any duty. Cudworth v. Midcontinent Communs., 2003 U.S. Dist. LEXIS 6242 (D.N.D. Apr. 11, 2003).

Legislative Intent.

The legislative history of this section indicates the law was intended to encourage landowners to open their land to the public for recreational purposes. Hovland v. City of Grand Forks, 1997 ND 95, 563 N.W.2d 384, 1997 N.D. LEXIS 89 (N.D. 1997).

Political Subdivision Liability.
—In General.

Applying the recreational use statute to the political subdivision liability statute completely circumvents the legislature’s intent under section 32-12.1-03, leading to an unintended and absurd result. Hovland v. City of Grand Forks, 1997 ND 95, 563 N.W.2d 384, 1997 N.D. LEXIS 89 (N.D. 1997).

—Constitutionality.

The legislative history of the recreational use statute does not disclose any reason why a recreational user of public lands could not recover for personal injuries when a non-recreational user could, and without a close correspondence with the legislative goals supporting this classification of user, the statute might fail an equal protection challenge. Hovland v. City of Grand Forks, 1997 ND 95, 563 N.W.2d 384, 1997 N.D. LEXIS 89 (N.D. 1997).

Under the undisputed facts of the case, the recreational use immunity statutes, N.D.C.C. ch. 53-08, advance the important legislative goal of opening property to the public for recreational use in a manner that closely corresponds to the achievement of that goal, and therefore N.D.C.C. ch. 53-08, as applied here, does not violate the equal protection provisions of N.D. Const. art. I, § 21. Olson v. Bismarck Parks & Rec. Dist., 2002 ND 61, 642 N.W.2d 864, 2002 N.D. LEXIS 72 (N.D. 2002).

—Immunity Not Found.

City was not immune under the recreational use statute from plaintiff’s claims for personal injuries she sustained while using city bike path. Hovland v. City of Grand Forks, 1997 ND 95, 563 N.W.2d 384, 1997 N.D. LEXIS 89 (N.D. 1997).

Trial court erred by granting summary judgment for the city, pursuant to N.D.R.Civ.P. 56(c), in the vendor’s negligence action on the ground of recreational use immunity under N.D.C.C. § 53-08-02 because, although the city’s intent in opening its auditorium may have been for a public recreational use, the vendor’s presence at the auditorium on the day before the seniors event was for employment purposes and not for a recreational purpose where he was setting up his company’s booth for the event. The plain language of the statute was not so broad as to include a person present on the property for purposes of the person’s employment. Leet v. City of Minot, 2006 ND 191, 721 N.W.2d 398, 2006 N.D. LEXIS 199 (N.D. 2006).

Snowmobiling Accident.

The trial court did not err in determining that this chapter was applicable to an action arising out of the death of plaintiff’s decedent, who was killed while snowmobiling when he struck an unmarked guy wire of defendant’s on the side of a county road, thereby precluding liability on the part of defendant for ordinary negligence. Grant of summary judgment was reversed on grounds that there was competent admissible evidence upon which a jury could have based an inference of willful or malicious conduct and thus that there were genuine issues of material fact. Stokka v. Cass County Elec. Coop., 373 N.W.2d 911, 1985 N.D. LEXIS 398 (N.D. 1985).

Summary judgment was granted for the landowner because the landowner did not owe any different type of duty to the injured plaintiff if the plaintiff was a trespasser and was snowmobiling on a portion of the land that was posted for no trespassing, because the immunities of the recreational use statute also applied to trespassers. Cudworth v. Midcontinent Communs., 2003 U.S. Dist. LEXIS 6242 (D.N.D. Apr. 11, 2003).

Collateral References.

Effect of statute limiting landowner’s liability for personal injury to recreational user, 47 A.L.R.4th 262.

Baseball player’s right to recover for baseball-related personal injury from nonplayer, 55 A.L.R.4th 664.

Liability of State or Local Governmental Entity for Injury Sustained or Caused by Persons Sledding, Tobogganing, Coasting, or Otherwise Sliding on Snow on Government Land, 29 A.L.R.6th 369.

Law Reviews.

Case Comment: Schools — District Liability: Political Subdivision Liability and School Duties Prevail Over Recreational Use Immunity: M.M. v. Fargo Public School District No. 1, 2010 ND 102, 783 N.W.2d 806, see 86 N.D. L. Rev. 689 (2010).

53-08-03. Not invitee or licensee of landowner.

Subject to the provisions of section 53-08-05, an owner of land who either directly or indirectly invites or permits without charge any person to use such property for recreational purposes does not thereby:

  1. Extend any assurance that the premises are safe for any purpose;
  2. Confer upon such persons, or any other person whose presence on the premises is directly derived from those recreational purposes, the legal status of an invitee or licensee to whom a duty of care is owed other than a person that enters land to provide goods or services at the request of, and at the direction or under the control of, the owner; or
  3. Assume responsibility for or incur liability for any injury to person or property caused by an act or omission of such persons.

Source:

S.L. 1965, ch. 337, § 3; 2011, ch. 381, § 3.

Effective Date.

The 2011 amendment of this section by section 3 of chapter 381, S.L. 2011 became effective August 1, 2011.

Notes to Decisions

Trespassers.

Where the recreational use statute did not confer invitee or licensee status upon individuals who were specifically invited on the property, it followed that a trespasser would not be afforded a different status if the landowner attempted to prohibit entry to certain portions of the property. Cudworth v. Midcontinent Communs., 2003 U.S. Dist. LEXIS 6242 (D.N.D. Apr. 11, 2003).

Collateral References.

Effect of statute limiting landowner’s liability for personal injury to recreational user, 47 A.L.R.4th 262.

Law Reviews.

Case Comment: Schools — District Liability: Political Subdivision Liability and School Duties Prevail Over Recreational Use Immunity: M.M. v. Fargo Public School District No. 1, 2010 ND 102, 783 N.W.2d 806, see 86 N.D. L. Rev. 689 (2010).

53-08-04. Leased land to state or political subdivisions.

Unless otherwise agreed in writing, an owner of land leased to the state or its political subdivisions for recreational purposes owes no duty of care to keep that land safe for entry or use by others or to give warning to persons entering or going upon such land of any hazardous conditions, uses, structures, or activities thereon. An owner who leases land to the state or its political subdivisions for recreational purposes does not by giving such lease:

  1. Extend any assurance to any person using the land that the premises are safe for any purpose;
  2. Confer upon such persons the legal status of an invitee or licensee to whom a duty of care is owed; or
  3. Assume responsibility for or incur liability for any injury to person or property caused by an act or omission of a person who enters upon the leased land.

The provisions of this section apply whether the person entering upon the leased land is an invitee, licensee, trespasser, or otherwise.

Source:

S.L. 1965, ch. 337, § 4.

Notes to Decisions

Waiver Not Shown.

United States Army Corps of Engineers did not waive, either expressly or impliedly, the protections of this section by entering into written agreements to assume management of recreation area, where the license agreement which addressed liability stated that the Corps would not be responsible for personal or property damage, and further required that the state hold the Corps harmless from such damage. Umpleby ex rel. Umpleby v. United States, 806 F.2d 812, 1986 U.S. App. LEXIS 34309 (8th Cir. N.D. 1986).

Law Reviews.

Case Comment: Schools — District Liability: Political Subdivision Liability and School Duties Prevail Over Recreational Use Immunity: M.M. v. Fargo Public School District No. 1, 2010 ND 102, 783 N.W.2d 806, see 86 N.D. L. Rev. 689 (2010).

53-08-05. Failure to warn against dangerous conditions — Charge to enter.

This chapter does not limit in any way any liability that otherwise exists for:

  1. Willful and malicious failure to guard or warn against a dangerous condition, use, structure, or activity; or
  2. Injury suffered in any case in which the owner of land:
    1. Charges the person for entry onto the land other than the amount, if any, paid to the owner of the land by the state; and
    2. The total charges collected by the owner in the previous calendar year for all recreational use of land under the control of the owner are more than:
      1. Twice the total amount of property taxes imposed on the land for the previous calendar year; or
      2. In the case of agricultural land, four times the total amount of property taxes imposed on the land for the previous calendar year.

Source:

S.L. 1965, ch. 337, § 5; 1993, ch. 503, § 1; 2003, ch. 453, § 1.

Notes to Decisions

Malice.

Recreational use immunity statute, N.D.C.C. § 53-08-01 et seq., does not protect landowners who engage in a willful and malicious failure to guard or warn against a dangerous condition, use, structure, or activity on their premises; the term malicious typically means arising from malice, and malice most commonly connotes an intention or desire to harm another. N.D.C.C. § 53-08-05 does not distinguish between types of malicious conduct, the legislature has not stated that it intends to allow liability for presumed malice or reckless disregard, and therefore the term malicious does not encompass presumed malice, which exists where a defendant’s conduct amounts to a reckless disregard of the rights of others. Cudworth v. Midcontinent Communs., 380 F.3d 375, 2004 U.S. App. LEXIS 17859 (8th Cir. N.D. 2004).

Improper Road Design and Maintenance.

District court erred when it held as a matter of law that the exception for willful failure to guard or warn found in this section was not pertinent in case where the plaintiff contended that road was improperly designed, constructed and maintained. Umpleby ex rel. Umpleby v. United States, 806 F.2d 812, 1986 U.S. App. LEXIS 34309 (8th Cir. N.D. 1986).

Snowmobiling Accident.

The trial court did not err in determining that this chapter was applicable to an action arising out of the death of plaintiff’s decedent, who was killed while snowmobiling when he struck an unmarked guy wire of defendant’s on the side of a county road, thereby precluding liability on the part of defendant for ordinary negligence. Grant of summary judgment was reversed on grounds that there was competent admissible evidence upon which a jury could have based an inference of willful or malicious conduct and thus that there were genuine issues of material fact. Stokka v. Cass County Elec. Coop., 373 N.W.2d 911, 1985 N.D. LEXIS 398 (N.D. 1985).

Summary judgment was warranted for the property owner because the plaintiff, who was injured while snowmobiling on the property owner’s land could not show that the property owner was not subject to the immunities set forth in the recreational use statute; the exception to immunity under this section, did not include an exception for presumed malice or reckless disregard of the rights of others. Cudworth v. Midcontinent Communs., 2003 U.S. Dist. LEXIS 6242 (D.N.D. Apr. 11, 2003).

Summary judgment was properly entered for property owners, who were sued by an injured snowmobile rider and his wife, because the owners were immune from liability as a matter of law under North Dakota’s recreational use immunity statute, N.D.C.C. § 53-08-01 et seq.; the owners were immune even though they had erected barriers in an attempt to close off part of their property from the public and regardless of whether the rider would be considered, for common law purposes, as an invitee, a licensee, or a trespasser. There was no evidence presented to show that the owners had erected the barriers in order to injure snowmobilers, and the nature of the barrier itself was not sufficient for a jury to infer willful and malicious conduct on the owners’ part. Cudworth v. Midcontinent Communs., 380 F.3d 375, 2004 U.S. App. LEXIS 17859 (8th Cir. N.D. 2004).

Collateral References.

Effect of statute limiting landowner’s liability for personal injury to recreational user, 47 A.L.R.4th 262.

Law Reviews.

Case Comment: Schools — District Liability: Political Subdivision Liability and School Duties Prevail Over Recreational Use Immunity: M.M. v. Fargo Public School District No. 1, 2010 ND 102, 783 N.W.2d 806, see 86 N.D. L. Rev. 689 (2010).

53-08-06. Duty of care or liability for injury.

Nothing in this chapter may be construed as creating a duty of care or grounds of liability for injury to person or property. Nothing herein limits in any way the obligation of a person entering upon or using the land of another for recreational purposes to exercise due care in that person’s use of such land and in that person’s activities thereon.

Source:

S.L. 1965, ch. 337, § 6.

Collateral References.

Effect of statute limiting landowner’s liability for personal injury to recreational user, 47 A.L.R.4th 262.

CHAPTER 53-09 Skiing Responsibility Act

53-09-01. Legislative purpose.

The legislative assembly finds that the sport of skiing is practiced in this state by a growing number of North Dakota citizens and nonresidents. Since it is recognized that there are inherent risks in the sport of skiing which should be understood by each skier and which are essentially impossible to eliminate by the ski area operator, it is the purpose of this chapter to define those areas of responsibility and affirmative acts for which ski area operators shall be liable for loss, damage, or injury and those risks which the skier expressly assumes and for which there can be no recovery.

Source:

S.L. 1979, ch. 532, § 2.

Notes to Decisions

Constitutionality.

Because this chapter bears a close correspondence to the legislative intent and does not create an impermissible classification, it does not violate the state’s constitutional guarantee to equal protection of the laws. Bouchard v. Johnson, 555 N.W.2d 81, 1996 N.D. LEXIS 229 (N.D. 1996).

Because this chapter applies to all persons operating a skiing facilty within the state, this is a permissible class and does not create a special law, as prohibited by the N.D. Const., Art. IV, § 13. Bouchard v. Johnson, 555 N.W.2d 81, 1996 N.D. LEXIS 229 (N.D. 1996).

Because this chapter does not operate as an absolute bar to recovery, it did not act as a denial of plaintiff’s access to the courts, as protected by the N.D. Const., Art. I, § 9. Bouchard v. Johnson, 555 N.W.2d 81, 1996 N.D. LEXIS 229 (N.D. 1996).

Legislative Intent.

The legislative goal of this chapter is to limit the liability for ski facility operators from some of the inherent risks associated with skiing. Bouchard v. Johnson, 555 N.W.2d 81, 1996 N.D. LEXIS 229 (N.D. 1996).

Collateral References.

Liability of operator of skiing, tobagganing, or bobsledding facilities for injury to patron or participant, 94 A.L.R.2d 1431.

Liability for injury or death from ski lift, ski tow or similar device, 95 A.L.R.3d 203.

Ski resort’s liability for skier’s injuries resulting from condition of ski run or slope, 55 A.L.R.4th 632.

Skier’s liability for injuries to or death of another person, 75 A.L.R.5th 583.

53-09-02. Definitions.

The following words and phrases when used in this chapter have, unless the context clearly indicates otherwise, the meaning given to them in this section:

  1. “Aerial passenger tramway” means any device operated by a ski area operator used to transport passengers, by single or double reversible tramway; chairlift or gondola lift; t-bar lift, j-bar lift, platter lift, or similar device; or a fiber rope tow.
  2. “Passenger” means any person who is lawfully using an aerial passenger tramway or is waiting to embark or has recently disembarked from an aerial passenger tramway and is in its immediate vicinity.
  3. “Ski area” means property owned or leased and under the control of the ski area operator and administered as a single enterprise within the state of North Dakota.
  4. “Ski area operator” means any person, partnership, corporation, limited liability company, or other commercial entity and their agents, officers, managers, employees, or representatives, who has operational responsibility for any ski area or aerial passenger tramway.
  5. “Ski slopes and trails” means those areas designed by the ski area operator to be used by skiers for the purpose of participating in the sport of skiing.
  6. “Skier” means any person present at a skiing area under the control of the ski operator for the purpose of engaging in the sport of skiing by utilizing the ski slopes and trails and does not include the use of an aerial passenger tramway.
  7. “Skiing area” means all slopes and trails not including any aerial passenger tramway.

Source:

S.L. 1979, ch. 532, § 3; 1993, ch. 54, § 106.

53-09-03. Duties of ski operators with respect to ski areas.

Every ski operator shall have the following duties with respect to its operation of a skiing area:

  1. To mark all trail maintenance vehicles and to furnish such vehicles with flashing or rotating lights which must be in operation whenever the vehicles are working or are in movement in the skiing area.
  2. To mark with a visible sign or other warning implement the location of any hydrant or similar equipment used in snowmaking operations and located on ski slopes and trails.
  3. To mark conspicuously the top or entrance to each slope, trail, or area with the appropriate symbol for its relative degree of difficulty and those slopes, trails, or areas which are closed, or portions of which present an unusual obstacle, must be marked at the top or entrance with appropriate symbols.
  4. To maintain one or more trail boards at prominent locations at each ski area displaying that area’s network of ski trails and slopes with each trail and slope rated thereon in accordance with the symbols provided for in subsection 3.
  5. To designate by trail board or other means which trails or slopes are open or closed.
  6. To place, or cause to be placed, whenever snow grooming or snowmaking operations are being undertaken upon any trail or slope while such trail or slope is open to the public, a conspicuous notice to that effect at or near the top of such trail or slope.
  7. To post notice, at or near the boarding area for each aerial passenger tramway designed to transport passengers with skis attached to boots, of the requirements of this chapter concerning the use of ski retention devices. This obligation is the sole requirement imposed upon the ski area operator regarding the requirement for or use of ski retention devices.

Source:

S.L. 1979, ch. 532, § 4.

Notes to Decisions

Assumption of Risk.

There should be no liability for a ski area operator if the design of the ski run creates natural conditions, necessary to the enjoyment of the sport, and the design is so obviously dangerous the skier assumes the risk. Bouchard v. Johnson, 555 N.W.2d 81, 1996 N.D. LEXIS 229 (N.D. 1996).

Nonexclusive List.

This section is a nonexclusive list of duties for ski facility operators. Bouchard v. Johnson, 555 N.W.2d 81, 1996 N.D. LEXIS 229 (N.D. 1996).

53-09-04. Duties of ski area operators with respect to aerial passenger tramways.

Every ski area operator shall have the duty to construct, operate, maintain, and repair any aerial passenger tramway in a safe and responsible manner.

Source:

S.L. 1979, ch. 532, § 5.

53-09-05. Duties of passengers.

Every passenger shall have the duty not to:

  1. Board or embark upon or disembark from an aerial passenger tramway except at an area designated for such purpose.
  2. Intentionally drop, throw, or expel any object from an aerial passenger tramway.
  3. Do any act which interferes with the running or operation of an aerial passenger tramway.
  4. Use any aerial passenger tramway unless the passenger has the ability to use it safely without any instruction on its use by the ski area operator or requests and receives instructions before entering the boarding area of the aerial passenger tramway.
  5. Engage in any harmful conduct or willfully or negligently engage in any type of conduct which contributes to or causes injury to another person.
  6. Embark on an aerial passenger tramway without the authority of the ski area operator.
  7. Use any aerial passenger tramway without engaging such safety or restraining devices as may be provided.
  8. Wear skis without properly securing ski retention straps.

Source:

S.L. 1979, ch. 532, § 6.

53-09-06. Duties of skiers.

It is recognized that skiing as a recreational sport is hazardous to skiers, regardless of all feasible safety measures which can be taken. Each skier expressly assumes the risk of and legal responsibility for any injury to person or property which results from participation in the sport of skiing including any injury caused by the following: variations in terrain; surface or subsurface snow or ice conditions; bare spots, rocks, trees, or other forms of forest growth or debris, lift towers and components thereof; pole lines; and snowmaking equipment which are plainly visible or are plainly marked in accordance with the provisions of section 53-09-03. Therefore, each skier shall have the sole individual responsibility for knowing the range of that skier’s own ability to negotiate any slope, trail, or aerial passenger tramway, and it is the duty of each skier to ski within the limits of the skier’s own ability, to make reasonable control of speed and course at all times while skiing, to heed all posted warnings, to ski only on a skiing area designated by the ski area operator, and to refrain from acting in a manner which may cause or contribute to the injury of anyone. The responsibility for collisions by any skier while actually skiing, with any person or object, is solely that of the individual or individuals involved in such collision and not that of the ski area operator. No person may:

  1. Unless authorized by the ski area operator, place any object in the skiing area or on the uphill track of any aerial passenger tramway which may cause a passenger or skier to fall.
  2. Cross the track of a t-bar lift, j-bar lift, platter lift or similar device, or a fiber rope tow except at a designated location.
  3. Fail to wear retention straps or other devices to help prevent runaway skis.

Source:

S.L. 1979, ch. 532, § 7.

53-09-07. Liability of ski area operators.

Any ski area operator is liable for loss or damages caused by its failure to follow the duties set forth in sections 53-09-03 and 53-09-04 when the violation of duty is causally related to loss or damage suffered. A ski area operator is not liable to any passenger or skier acting in violation of the passenger’s or skier’s duties as set forth in sections 53-09-05 and 53-09-06, when the violation of duty by the passenger or skier is causally related to the loss or damage suffered; nor is a ski area operator liable for any loss or damage caused by any object dropped, thrown, or expelled by a passenger from an aerial passenger tramway.

Source:

S.L. 1979, ch. 532, § 8.

53-09-08. Liability of passengers.

Any passenger is liable for loss or damages resulting from violation of the duties set forth in section 53-09-05 and shall not be able to recover from the ski area operator for any losses or damages when a violation of the duties set forth in section 53-09-05 is causally related to the loss or damage suffered by the passenger.

Source:

S.L. 1979, ch. 532, § 9.

53-09-09. Liability of skiers.

Any skier is liable for loss or damages resulting from violation of the duties set forth in section 53-09-06 and shall not be able to recover from the ski area operator for losses or damages when the violation of the skier’s duty is causally related to the loss or damage suffered by the skier.

Source:

S.L. 1979, ch. 532, § 10.

53-09-10. Effect of modified comparative fault.

Notwithstanding section 32-03.2-02, any person is, consistent with the provisions of this chapter, barred from recovery for loss or damage resulting from a risk inherent in the sport of skiing and likewise is so barred when it is established that a person has knowingly exposed oneself to the real or potential hazards of a situation.

Source:

S.L. 1979, ch. 532, § 11; 1995, ch. 54, § 38.

Notes to Decisions

Inherent Risks.

This section, which bars recovery by a skier when an injury is caused by an inherent risk in skiing, does not conflict with the modified comparative fault statute found in section 32-03.2-02. Bouchard v. Johnson, 555 N.W.2d 81, 1996 N.D. LEXIS 229 (N.D. 1996).

53-09-11. Warning to users.

Before any owner or operator may claim any provision of this chapter as a defense to any claim or action brought against the owner or operator, the owner or operator shall establish that the owner or operator has conspicuously placed on the premises a warning as follows: WARNING TO USERS North Dakota law severely limits your right to compensation for injuries caused by the negligence of the owner or operator.

Source:

S.L. 1979, ch. 532, § 12.

CHAPTER 53-10 Equine Activity Sponsor or Professional

53-10-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Engages in an equine activity” means a person who rides, trains, drives, or is a passenger upon an equine, whether mounted or unmounted, and does not mean a spectator in equine activity or a person who participates in the equine activity but does not ride, train, drive, or ride as a passenger upon an equine.
  2. “Equine” means a horse, pony, mule, donkey, or hinny.
  3. “Equine activity” means:
    1. An equine show, fair, competition, performance, or parade that involves any breed of equine in any equine discipline, including dressage, a hunter and jumper horse show, grand prix jumping, a three-day event, combined training, a rodeo, driving, pulling, cutting, polo, steeplechasing, endurance, trail riding, guided trail rides, pleasure trail riding, wagon and buggy rides, and western games and hunting;
    2. An equine training or teaching activity;
    3. Boarding an equine;
    4. Riding, inspecting, or evaluating an equine belonging to another whether or not the owner has received some monetary consideration or other thing of value for the use of the equine or is permitting a prospective purchaser of the equine to ride, inspect, or evaluate the equine; and
    5. A ride, trip, hunt, or other equine activity of any type however informal or impromptu that is sponsored by an equine activity sponsor.
  4. “Equine activity sponsor” means an individual, group, club, partnership, corporation, or limited liability company, whether or not the sponsor is operating for profit or nonprofit, which sponsors, organizes, or provides the facility for an equine activity including a pony club, 4-H club, hunt club, riding club, school or college-sponsored class or program, therapeutic riding program, and an operator, instructor, or promoter of an equine facility including but not limited to a stable, clubhouse, pony ride string, fair, or arena at which the activity is held.
  5. “Equine professional” means a person engaged for compensation in:
    1. Instructing a participant or renting to a participant an equine for the purpose of riding, driving, or being a passenger upon an equine; or
    2. In renting equipment or tack to a participant.
  6. “Participant” means any person, whether amateur or professional, who directly engages in an equine activity, whether or not a fee is paid to participate in the equine activity.

Source:

S.L. 1991, ch. 560, § 1; 1993, ch. 54, § 106.

53-10-02. Liability of equine activity sponsor or equine professional limited.

  1. Except as provided in subsection 2, an equine activity sponsor or an equine professional is not liable for an injury to or the death of a participant engaged in an equine activity, and, except as provided in subsection 2, no participant or participant’s representative may maintain an action against or recover from an equine activity sponsor or an equine professional for an injury to or the death of a participant engaged in an equine activity. This chapter does not apply to the horse racing industry as regulated in chapter 53-06.2.
  2. Nothing in subsection 1 prevents or limits the liability of an equine activity sponsor or an equine professional:
    1. If the equine activity sponsor or the equine professional:
      1. Provided the equipment or tack and the equipment or tack caused the injury; or
      2. Provided the equine and failed to make reasonable and prudent efforts to determine the ability of the participant to engage safely in the equine activity, to determine the ability of the equine to behave safely with the participant, and to determine the ability of the participant to safely manage the particular equine;
    2. If the equine activity sponsor or the equine professional owns, leases, rents, or otherwise is in lawful possession and control of the land or facility upon which the participant sustained an injury because of the dangerous latent condition which was known to or should have been known to the equine activity sponsor or the equine professional and for which a warning sign has not been conspicuously posted;
    3. If the equine activity sponsor or the equine professional commits an act or omission that constitutes willful or wanton disregard for the safety of the participant and that act or omission caused the injury;
    4. If the equine activity sponsor or the equine professional intentionally injures the participant;
    5. Under products liability provisions as set forth in products liability laws; or
    6. Under liability provisions in chapter 36-11.

Source:

S.L. 1991, ch. 560, § 1.

CHAPTER 53-11 Contest Prize Notices

53-11-01. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Prize” means an item or service of value that is offered or awarded to a participant in a real or purported contest, competition, sweepstakes, puzzle, drawing, scheme, plan, or other selection process.
  2. “Retail value” of a prize means:
    1. A price at which the sponsor can substantiate that a substantial number of the prizes have been sold to the public in this state during the preceding year; or
    2. If the sponsor is unable to satisfy the requirement in subdivision a, then no more than one and one-half times the amount the sponsor paid or would pay for the prize in a bona fide purchase from an unaffiliated seller.
  3. “Sponsor” means a person that requires another person in this state to pay money as a condition of awarding the person a prize, or as a condition of allowing the person to receive, use, compete for, or obtain information about a prize, or that creates the reasonable impression that such a payment is required.

Source:

S.L. 1995, ch. 488, § 1.

53-11-02. Disclosures required.

  1. A sponsor may not require a person to pay the sponsor money as a condition of awarding the person a prize, or as a condition of allowing the person to receive, use, compete for, or obtain information about a prize. A sponsor may not use a solicitation that creates the reasonable impression that a payment is required, unless the sponsor first has delivered to the person written prize notice containing the following information:
    1. The true name or names of the sponsor and the address of the sponsor’s actual principal place of business;
    2. The retail value of each prize the person receiving the notice has been selected to receive or may be eligible to receive;
    3. A statement of the person’s odds of receiving each prize identified in the notice;
    4. Any requirement that the person pay shipping or handling fees or any other charges to obtain or use a prize, including the nature and amount of the charges;
    5. If receipt of the prize is subject to a restriction, a statement that a restriction applies, and a description of the restriction;
    6. Any limitation on eligibility; and
    7. If a sponsor represents that the person is a “winner”, is a “finalist”, has been “specially selected”, is in “first place”, or is otherwise among a limited group of persons with an enhanced likelihood of receiving a prize, the written prize notice must contain a statement of the maximum number of persons in the group or purported group with this enhanced likelihood of receiving a prize.
  2. The information required by subsection 1 must be presented in the following form:
    1. The retail value and the statement of odds required must be stated in immediate proximity to each identification of a prize on the written notice and must be in the same size and boldness of type as the reference to the prize. The statement of odds must include, for each prize, the total number of prizes to be given away and the total number of written prize notices to be distributed. The number of prizes and written prize notices must be stated in Arabic numerals. The statement of odds must be in the following form:
    2. If a person is required to pay a shipping or handling fee or any other charge to obtain a prize, to be eligible to obtain a prize, or participate in a contest, the following statement must appear in immediate proximity to each listing of the prize in the written prize notice, in not less than ten-point boldface type: YOU MUST PAY $ _________  TO RECEIVE THIS ITEM or YOU MUST PAY $ _________  TO COMPETE FOR THIS ITEM, whichever is applicable.
    3. The statement required under subdivision g of subsection 1 must appear in immediate proximity to each representation that the person is among a group of persons with an enhanced likelihood of receiving a prize and must be in the same size and boldness of type as the representation.

_________ (number of prizes) out of _________ notices distributed.

Source:

S.L. 1995, ch. 488, § 2.

53-11-03. Prize award required.

No later than thirty days after making the representation, a sponsor who represents to a person that the person has been awarded a prize shall provide the person with the prize, or with a voucher, certificate, or other document giving the person the unconditional right to receive the prize, or provide the person with either of the following items selected by the person:

  1. Any other prize listed in the written prize notice that is available and that is of equal or greater value; or
  2. The retail value of the prize, as stated in the written notice, in the form of cash, a money order, or a certified check.

Source:

S.L. 1995, ch. 488, § 3.

53-11-04. Exemptions.

  1. This chapter does not create liability for acts by the publisher, owner, agent, or employee of an advertising agency, a newspaper, periodical, radio station, television station, cable television system, or other advertising medium arising out of the publication or dissemination of a solicitation, notice, or promotion governed by this chapter, unless the publisher, owner, agent, or employee had knowledge that the solicitation, notice, or promotion violated the requirements of this chapter, or had a financial interest in the solicitation, notice, or promotion.
  2. This chapter does not apply to solicitations or representations, in connection with:
    1. The sale or purchase of books, recordings, videocassettes, periodicals, and similar goods through a membership group or club that is regulated by the federal trade commission under title 16, Code of Federal Regulations, part 425.1, concerning use of negative option plans by sellers in commerce.
    2. The sale or purchase of goods ordered through a contractual plan or arrangement such as a continuity plan, subscription arrangement, or a single sale or purchase series arrangement under which the seller ships goods to a consumer who has consented in advance to receive the goods and after the receipt of the goods is given the opportunity to examine the goods and to receive a full refund of charges for the goods upon return of the goods undamaged.
    3. A sale by a catalog seller that derives at least fifty percent of its annual revenues from the sale of products sold in connection with the distribution of catalogs of at least twenty-four pages that contain written descriptions or illustrations and sale prices for each item of merchandise, if the catalogs are distributed in more than one state with a total annual distribution of at least two hundred fifty thousand.

Source:

S.L. 1995, ch. 488, § 4.

53-11-05. Penalty — Remedies.

  1. A violation of this chapter is an unlawful practice in violation of section 51-15-02 and is subject to applicable provisions of chapter 51-15.
  2. A person who intentionally violates this chapter is guilty of a class C felony. It is evidence of intent if the violation occurs after the attorney general has notified a person by certified mail that the person is in violation of this section.
  3. A person suffering pecuniary loss because of an intentional violation of this chapter may bring an action in district court to recover costs, reasonable attorney’s fees, and the greater of five hundred dollars or twice the amount of the pecuniary loss.
  4. This chapter provides relief in addition to the remedies or penalties provided under other law.

Source:

S.L. 1995, ch. 488, § 5.

CHAPTER 53-12 Lottery [Repealed]

[Repealed by S.L. 2005, ch. 470, § 9]

CHAPTER 53-12.1 Lottery

53-12.1-01. Definitions.

As used in this chapter:

  1. “Director” means the director of the lottery.
  2. “Lottery” means the division of the attorney general’s office created to operate a lottery.
  3. “Online lottery” means a game linked to a central computer via a telecommunications network in which the player selects or is assigned a number or symbol or group of numbers or symbols out of a predetermined range of numbers or symbols and a winning ticket is determined by chance.
  4. “Retailer” means a person the lottery has licensed to sell or redeem a ticket.
  5. “Ticket” means an original and acceptable tangible evidence of play prescribed by the lottery and produced by a lottery terminal or a properly and validly registered online play to prove participation in a draw of a game for a chance to win a prize.

Source:

S.L. 2005, ch. 470, § 4; 2007, ch. 450, § 1; 2019, ch. 429, § 1, eff August 1, 2019.

Effective Date.

The 2007 amendment of this section by section 1 of chapter 450, S.L. 2007 became effective August 1, 2007.

Collateral References.

State Lotteries: Actions by Ticketholders or Other Claimants against State or Contractor for State. 48 A.L.R.6th 243.

53-12.1-02. Lottery — Administration — Line of credit.

  1. There is established a division of the attorney general’s office called the North Dakota lottery. Under the supervision of the attorney general, a director shall administer the lottery as provided in this chapter. The director shall consider the sensitive nature of the lottery, promote games, and ensure the integrity, security, and fairness of the lottery’s operation. The lottery is solely responsible for the management and control over the operation of its games.
  2. The attorney general’s office may arrange a short-term line of credit with the Bank of North Dakota should lottery funds on hand be insufficient to meet an immediate major prize obligation. The line of credit is limited to the amount of each prize of one hundred thousand dollars or more that relates to prize funds known to be due and forthcoming to the lottery from other government-authorized lotteries through the multistate lottery association. However, the line of credit may not exceed one million dollars in the aggregate.

Source:

S.L. 2005, ch. 470, § 4.

53-12.1-03. Director — Responsibilities.

  1. The attorney general shall appoint a director who shall serve at the pleasure of the attorney general.
  2. Subject to policy of the attorney general, the director shall:
    1. Employ those individuals deemed necessary to operate the lottery and provide secure facilities to house the lottery;
    2. Enter a written agreement with one or more government-authorized lotteries, or with an organization created and controlled by those lotteries, for conducting and marketing a joint lottery game;
    3. Provide for a secure computer data center and internal control system for the reliable operation of the lottery;
    4. Prepare and submit a budget for operating the lottery;
    5. Operate the lottery so it is self-sustaining and self-funded;
    6. Maintain books and records which accurately reflect each day’s financial transactions, including the sale of tickets, receipt of funds and fees, prize payments, and expenses to ensure accountability;
    7. License a retailer to sell or redeem a ticket;
    8. Require a retailer to furnish proof of financial stability or post a bond in an amount the director deems necessary to protect the financial interest of the state;
    9. Timely and efficiently transfer lottery funds due from a retailer;
    10. Conduct a retailer promotion to promote the sale of a ticket;
    11. As necessary, enter a contract for a promotional service, an annuity for the payment of a prize, credit history report, security service, service from another state agency, marketing and related service, gaming system and related service, and other necessary service;
    12. Based on reasonable ground or written complaint, suspend or revoke a retailer’s license or impose a monetary fine, or both, for a violation, by the retailer or employee of the retailer, of a lottery law or rule;
    13. Examine, or cause to be examined by an agent designated by the director, any book or record of a retailer to ensure compliance with the lottery law and rules;
    14. Upon request, report to the legislative council regarding the operation of the lottery;
    15. Make quarterly and annual financial reports to the governor and attorney general and a biennial report to the legislative assembly;
    16. Have an annual audit, conducted by the state auditor, of the lottery. The director shall present the audit report to the governor, state treasurer, and legislative assembly;
    17. As necessary, have an independent firm conduct a study and evaluation of security; and
    18. As necessary, conduct a survey of retailers and players or a study of reactions of citizens to present and potential features of the lottery.

Source:

S.L. 2005, ch. 470, § 4; 2019, ch. 429, § 2, eff August 1, 2019.

53-12.1-04. Advisory commission — Penalty.

  1. There is created the lottery advisory commission, which is composed of five members, three of whom are legislators selected by the chairman of the legislative management and two of whom are selected by the attorney general. The term of office is three years, expiring on June thirtieth with no more than two terms expiring in any one year. Each member must be a citizen of the United States and a resident of this state. A chairman of the commission must be chosen annually from the membership of the commission by a majority of its members at the first meeting of the commission each fiscal year. A member may serve as chairman for more than one year.
  2. The lottery advisory commission shall meet at least once a quarter and any additional meetings as the chairman deems necessary. Special meetings may be called by the chairman upon the written request of the director or any three members of the commission.
  3. The lottery advisory commission shall advise the director and attorney general on policy and general operation of the lottery and shall serve as the audit committee.
  4. A member of the lottery advisory commission who is not a permanent full-time state employee is to be compensated at a rate of seventy-five dollars per day and entitled to mileage and expenses as provided by law for state employees. A state employee who is a member of the commission must receive that employee’s regular salary and is entitled to mileage and expenses, to be paid by the employing agency.
  5. No member of the lottery advisory commission, employee of the lottery, or any individual who regularly resides in the same household as either of those individuals may directly or indirectly, individually, as a partner of a partnership, or a stockholder, director, or officer of a corporation, have an interest in the gaming system or advertising agency vendor of the lottery. A knowing violation of this subsection is a class B misdemeanor.

Source:

S.L. 2005, ch. 470, § 4; 2007, ch. 450, § 2; 2009, ch. 3, § 8; 2009, ch. 482, § 97.

Effective Date.

The 2009 amendment of this section by section 8 of chapter 3, S.L. 2009 became effective July 1, 2009.

The 2009 amendment of this section by section 97 of chapter 482, S.L. 2009 became effective August 1, 2009.

The 2007 amendment of this section by section 2 of chapter 450, S.L. 2007 became effective August 1, 2007.

53-12.1-05. Competitive bidding — Investigation of a vendor.

Before a contract for a gaming system or marketing services is awarded, the director shall:

  1. Use an open and competitive bid process which reflects the best interest of the state. The director shall consider all relevant factors, including security, competence, experience, timely performance, and maximization of net proceeds; and
  2. Conduct a thorough background investigation of the lottery’s gaming system and advertising agency vendors, all shareholders of ten percent or more interest, and all senior officers and directors of the vendors, including a parent or subsidiary corporation of the vendors. The director may use information of another government-authorized lottery or other source to determine the qualification and background of the vendors. The vendors shall submit appropriate investigation authorizations. The director may require any appropriate information from the vendors to preserve the integrity and financial security of the lottery.

Source:

S.L. 2005, ch. 470, § 4.

53-12.1-06. Retailer application — Fees — Display of license.

  1. An applicant for a license does not have a right to a license or granting of the approval sought. A license issued or approval granted is a suspendable or revocable privilege, and the holder does not acquire any vested interest in the license or approval granted.
  2. An applicant for a license that has had an application denied or a license revoked may not reapply until at least one year has elapsed from the date of the denial or revocation unless the director determines that the reason for the denial of the application or revocation of the license has been remedied. A person who has had an application denied or a license revoked for a second time may not reapply until at least three years have passed since the date of the second denial or revocation. The decision of the director to deny an application or revoke a license is final and not appealable.
  3. The director may charge an application fee to a person applying to become a retailer and a license fee.
  4. A retailer license is:
    1. Renewable annually unless it is sooner relinquished, suspended, or revoked;
    2. Not transferable or assignable to another person; and
    3. Required to be conspicuously displayed at the retailer’s site.

Source:

S.L. 2005, ch. 470, § 4.

53-12.1-07. Selection and qualifications of a retailer.

  1. The director shall select a person that the director deems best able to serve the public convenience and promote the sale of a ticket. The director shall consider relevant factors, including the applicant’s credit history, physical security and public accessibility of the applicant’s site, integrity, sufficiency of existing retailers to serve the public convenience, especially in a geographically remote area of the state, and volume of expected sales of tickets. A person lawfully engaged in nongovernmental business on state property or a person within the exterior boundary of an Indian reservation or on tribal trust land may be selected as a retailer.
  2. A retailer may not be the lottery’s gaming system or advertising agency vendor or an employee or agent of the vendor.
  3. To be eligible as a retailer, an individual acting as a sole proprietor must:
    1. Have a satisfactory credit check;
    2. Be current in payment of all taxes, interest, and penalties owed to the state and be current under a payment plan, excluding an item under formal dispute or appeal pursuant to law;
    3. Be at least eighteen years of age;
    4. Be of good character and reputation;
    5. Not have been convicted of a felony in this or any other jurisdiction, unless at least ten years have passed since satisfactory completion of the sentence or probation imposed by the court in each felony;
    6. Not have been found to have knowingly violated a lottery law or rule;
    7. Not have been found to have a background, including a criminal record, or prior activities that pose a threat to the public interests of this state or to the security and integrity of the lottery, create or enhance the dangers of unsuitable or illegal practices in the conduct of lottery activities, or present questionable business practices and financial arrangements incidental to the lottery activity;
    8. Not be a parent, stepparent, child, stepchild, spouse, or sibling who is a regular member of the same household of an employee of the lottery or member of the lottery advisory commission; and
    9. Not have knowingly made a false statement of material fact to the lottery.
  4. To be eligible as a retailer, a partnership must meet the requirement of subdivision a of subsection 3 and each partner must meet the requirements of subdivisions b through i of subsection 3.
  5. To be eligible as a retailer, an organization other than a partnership must meet the requirements of subdivisions a and b of subsection 3 and each officer and director who is primarily responsible for making financial decisions and each shareholder who owns ten percent or more of an ownership interest in the organization must meet the requirements of subdivisions c through i of subsection 3.

Source:

S.L. 2005, ch. 470, § 4.

53-12.1-08. Purchase of ticket or payment of prize to certain individuals prohibited — Price of a ticket — Sale by retailer only — Second chance drawings — Prize paid to owner of a winning ticket — Prize subject to taxation — Discharge of liability — Penalty.

  1. A North Dakota lottery ticket may not be bought by or otherwise provided to, and a prize may not be paid to, the following individuals or to a parent, stepparent, child, stepchild, spouse, or sibling who is a regular member of the same household of the following individuals:
    1. A member of the lottery advisory commission or employee of the lottery, unless authorized in writing by the director; or
    2. An officer or employee of the lottery’s gaming system vendor.
  2. An individual who knowingly violates subsection 1 is guilty of a class B misdemeanor on the first offense and a class A misdemeanor on a subsequent offense.
  3. A retailer or employee of a retailer may buy a ticket and be paid a prize for a winning ticket.
  4. Only a retailer may sell a ticket. A retailer may sell a ticket only at the site stated on the license or at a temporary site for a special event authorized by the lottery. A retailer may not sell a ticket at a price greater than the price set by the lottery rules. A person convicted of violating this subsection is guilty of a class A misdemeanor on the first offense and a class C felony on a subsequent offense.
  5. A retailer may conduct a second chance drawing of entry forms or tickets to promote the sale of a ticket at that site provided that an individual is not required to purchase a ticket to participate.
  6. No ticket may be sold or given to a minor. A retailer, employee of a retailer, or any other person who knowingly violates this subsection is guilty of a class B misdemeanor on the first offense and a class A misdemeanor on a subsequent offense.
  7. The prize to be paid or awarded for a winning ticket must be paid to the individual who the director determines is the owner of the ticket. However, the prize of a deceased winning player must be paid to the lawful representative of the estate. A prize may not be paid on a winning ticket that has been purchased by use of a stolen lottery gift certificate or acquired illegally.
  8. If an individual steals a ticket or lottery gift certificate from a retailer, the individual is guilty of a class A misdemeanor. However, if the total value of the tickets or gift certificates stolen exceeds five hundred dollars, the offense is a class C felony.
  9. A prize awarded is subject to state and federal income tax laws and rules.
  10. An individual who, with intent to defraud, falsely makes, alters, forges, passes, or counterfeits a ticket or gift certificate issued by the lottery, regardless of the amount gained, is guilty of a class C felony.
  11. The state, members of the lottery advisory commission, and employees of the lottery are discharged of all further liability upon payment of a prize.

Source:

S.L. 2005, ch. 470, § 4; 2007, ch. 450, § 3; 2019, ch. 429, § 3, eff August 1, 2019.

Effective Date.

The 2007 amendment of this section by section 3 of chapter 450, S.L. 2007 became effective August 1, 2007.

53-12.1-09. Operating fund — Continuing appropriation — Authorization of disbursements — Report — Net proceeds.

There is established within the state treasury the lottery operating fund into which must be deposited all revenue from the sale of tickets, interest received on money in the fund, and all other fees and moneys collected, less a prize on a lottery promotion, prize on a winning ticket paid by a retailer, and a retailer’s commission. Except for moneys in the lottery operating fund appropriated by the legislative assembly for administrative and operating costs of the lottery under section 53-12.1-10, all other money in the fund is continuously appropriated for the purposes specified in this section. During each regular session, the attorney general shall present a report to the appropriations committee of each house of the legislative assembly on the actual and estimated operating revenue and expenditures for the current biennium and projected operating revenue and expenditures for the subsequent biennium authorized by this section. A payment of a prize or expense or transfer of net proceeds by the lottery may be made only against the fund or money collected from a retailer on the sale of a ticket. A disbursement from the fund must be for the following purposes:

  1. Payment of a prize as the director deems appropriate to the owner of a valid, winning ticket;
  2. Notwithstanding section 53-12.1-10, payment of a marketing expense that is directly offset by cosponsorship funds collected;
  3. Payment of a gaming system or related service expense, retailer record and credit check fees, game group dues, and retailer commissions; and
  4. Transfer of net proceeds:
    1. Eighty thousand dollars must be transferred to the state treasurer each quarter for deposit in the gambling disorder prevention and treatment fund;
    2. An amount for the lottery’s share of a game’s prize reserve pool must be transferred to the multistate lottery association;
    3. Starting July 1, 2019, two hundred thousand dollars must be transferred to the state treasurer each quarter for deposit in the attorney general multijurisdictional drug task force grant fund; and
    4. The balance of the net proceeds, less holdback of any reserve funds the director may need for continuing operations, must be transferred to the state treasurer on at least an annual basis for deposit in the state general fund.

Source:

S.L. 2005, ch. 470, § 4; 2007, ch. 450, § 4; 2007, ch. 459, § 1; 2007, ch. 450 § 4; 2015, ch. 37, § 7, eff July 1, 2015; 2017, ch. 352, § 3, eff August 1, 2017; 2019, ch. 28, § 5, eff July 1, 2019.

Effective Date.

The 2015 amendment of this section by section 7 of chapter 37, S.L. 2015 became effective July 1, 2015.

The 2007 amendment of this section by section 4 of chapter 450, S.L. 2007 became effective August 1, 2007.

The 2007 amendment of this section by section 1 of chapter 459, S.L. 2007 became effective May 1, 2007, pursuant to an emergency clause in section 4 of chapter 459, S.L. 2007.

53-12.1-10. Administrative and other operating costs of the lottery — Lottery operating fund.

Money in the lottery operating fund may be spent pursuant to legislative appropriation for costs of administering and operating the lottery, including costs relating to employees, supplies, surveys, advertising and marketing, printing, promotion, premium incentive items, a facility, and services provided by another state agency.

Source:

S.L. 2005, ch. 470, § 4.

53-12.1-11. Confidentiality of records.

  1. The following information and records of the lottery are confidential:
    1. Sales and income tax information, financial statements, and a credit report of a retailer applicant or person seeking or doing business with the lottery, and retailer application information other than the applicant’s name and location;
    2. Information related to a person owing a debt to the state or having a debt collected through a state agency that is made confidential by another state law or rule;
    3. Internal control and security procedures, security information on a winning ticket, and information on a bid or contractual data, the disclosure of which is harmful to the efforts of the lottery to contract for goods and services on favorable terms;
    4. Personal information on a player who purchases an online play or a player who wins a prize on a winning ticket unless the player authorizes, in writing, release of the information; and
    5. Lottery sales data, the disclosure of which is harmful to the competitive position of the lottery, retailer, or person seeking or doing business with the lottery. However, a retailer may authorize the lottery to release the retailer’s lottery sales data.
  2. To be confidential, information must relate to the security and integrity of the lottery. Information and records may be disclosed within the attorney general’s office or to an authorized person in the proper administration of the lottery law and rules or in accordance with a judicial order. Criminal history record check information on an individual seeking or doing business with the lottery may be released only according to chapter 12-60.

Source:

S.L. 2005, ch. 470, § 4; 2007, ch. 450, § 5; 2019, ch. 429, § 4, eff August 1, 2019.

Effective Date.

The 2007 amendment of this section by section 5 of chapter 450, S.L. 2007 became effective August 1, 2007.

53-12.1-12. Setoff of prize. [Effective through August 31, 2022]

  1. A claimant agency and the director shall cooperate on the setoff of a winning lottery ticket or promotional cash prize against a delinquent debt. A claimant agency is an agency of the state of North Dakota that an individual owes money to or that collects money on behalf of another party to satisfy a debt. The claimant agency and director shall share necessary information, including the individual’s full name, social security number, and amount and type of debt, through a mutually convenient method to timely achieve a setoff of a prize.
  2. The director shall establish a debt setoff process in which a lottery prize claim of an amount equal to or greater than six hundred dollars must be used to set off a delinquent debt owed to or collected through a claimant agency.
  3. If the director determines that a winning player owes a delinquent debt to or has a delinquent debt collected through a claimant agency, the director shall set off the amount of the debt from the prize due and notify the player, in writing, of the setoff. If the setoff accounts for only a portion of the prize due, the remainder of the prize must be paid to the player. The director shall transfer the setoff amount to the claimant agency unless the player notifies the director, in writing, within thirty days of the date of the notice of the setoff, that the player disputes all or part of the debt owed to or collected through the claimant agency. If the director receives a notification that the player disputes the setoff amount or claim upon which the setoff is based, the director shall grant a hearing to the player to determine whether the setoff is proper or the claim is valid, unless a review by a court is authorized under section 50-09-14. At a hearing, no issue may be reconsidered that the player has or could have previously litigated in a court or administrative proceeding.
  4. The lottery is discharged of all further liability for the amount of any debt setoff paid to a claimant agency.
  5. If two or more claimant agencies have delinquent accounts for the same player, the director shall apportion the prize equally among them. However, a setoff to the department of human services for child support payments has priority over all other setoffs.
  6. If the prize is insufficient to satisfy the entire debt, the remainder of the debt may be collected by a claimant agency as provided by law or rule and resubmitted for setoff against any other prize awarded.
  7. If two or more claimant agencies make adverse claims to all or a part of a prize payment, upon receipt of written notice from the claimant agencies setting forth their claims, the director may deposit, in accordance with section 32-11-02, the contested amount of the prize payment with the clerk of court in the district in which an action pertaining to the contested amount is pending or with a court-authorized depository. If one of the claims is for child support, the director shall transfer the setoff amount to the state disbursement unit before depositing any remaining prize payment or award. Any review of this transfer to the state disbursement unit must be done pursuant to section 50-09-14. Upon making the deposit or transfer, the state and its officials and employees are discharged and relieved from further liability to any individual or claimant agency related to the prize payment.

Source:

S.L. 2005, ch. 470, § 4; 2007, ch. 450, § 6; 2019, ch. 429, § 5, eff August 1, 2019.

Effective Date.

The 2007 amendment of this section by section 6 of chapter 450, S.L. 2007 became effective August 1, 2007.

Note.

Section 53-12.1-12 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 7 of Chapter 175, Session Laws 2021, Senate Bill 2283; and Section 483 of Chapter 352, Session Laws 2021, House Bill 1247.

53-12.1-12. Setoff of prize. [Effective September 1, 2022]

  1. A claimant agency and the director shall cooperate on the setoff of a winning lottery ticket or promotional cash prize against a delinquent debt. A claimant agency is an agency of the state of North Dakota thatan individual owes money to or that collects money on behalf of another party to satisfy a debt. The claimant agency and director shall share necessary information, including theindividual’s full name, social security number, and amount and type of debt, through a mutually convenient method to timely achieve a setoff of a prize.
  2. The director shall establish a debt setoff process in which a lottery prize claim of an amount equal to or greater than six hundred dollars must be used to set off a delinquent debt owed to or collected through a claimant agency. If the lottery prize claim is paid through an annuitized payment option, each prize payment must be used to set off a delinquent debt owed to or collected through a claimant agency.
  3. If the director determines that a winning player owes a delinquent debt to or has a delinquent debt collected through a claimant agency, the director shall set off the amount of the debt from the prize payment due and notify the player, in writing, of the setoff. If the setoff accounts for only a portion of the prize payment due, the remainder of the prize payment must be paid to the player. The director shall transfer the setoff amount to the claimant agency unless the player notifies the director, in writing, within thirty days of the date of the notice of the setoff, that the player disputes all or part of the debt owed to or collected through the claimant agency. If the director receives a notification that the player disputes the setoff amount or claim upon which the setoff is based, the director shall grant a hearing to the player to determine whether the setoff is proper or the claim is valid, unless a review by a court is authorized under section 50-09-14. At a hearing, no issue may be reconsidered that the player has or could have previously litigated in a court or administrative proceeding.
  4. The lottery is discharged of all further liability for the amount of any debt setoff paid to a claimant agency.
  5. If two or more claimant agencies have delinquent accounts for the same player, the director shall apportion the prize equally among them. However, a setoff to the department of health and human services for child support payments has priority over all other setoffs.
  6. If the prize payment is insufficient to satisfy the entire debt, the remainder of the debt may be collected by a claimant agency as provided by law or rule and resubmitted for setoff against any other prize payment awarded.
  7. If two or more claimant agencies make adverse claims to all or a part of a prize payment, upon receipt of written notice from the claimant agencies setting forth their claims, the director may deposit, in accordance with section 32-11-02, the contested amount of the prize payment with the clerk of court in the district in which an action pertaining to the contested amount is pending or with a court-authorized depository. If one of the claims is for child support, the director shall transfer the setoff amount to the state disbursement unit before depositing any remaining prize payment or award. Any review of this transfer to the state disbursement unit must be done pursuant to section 50-09-14. Upon making the deposit or transfer, the state and its officials and employees are discharged and relieved from further liability to any individual or claimant agency related to the prize payment.

Source:

S.L. 2005, ch. 470, § 4; 2007, ch. 450, § 6; 2019, ch. 429, § 5, eff August 1, 2019; 2021, ch. 352, § 483, eff September 1, 2022; 2021, ch. 175, § 7, eff August 1, 2021.

53-12.1-13. Rules.

The attorney general shall adopt rules governing the operation of the lottery. The attorney general may adopt emergency rules as necessary without the grounds otherwise required under section 28-32-03. The attorney general shall adopt rules to address any matters necessary for the efficient operation of the lottery or convenience of the public, including:

  1. Type of retailer where a ticket may be sold;
  2. Qualification for selecting a retailer and amount of application and license fees;
  3. Licensing procedure;
  4. Method used to sell a ticket, including a gift certificate and online play;
  5. Financial responsibility of a retailer;
  6. Retailer promotions;
  7. Amount and method of commission to be paid to a retailer, including a special bonus or incentive;
  8. Deadline for claiming a prize by the owner of a winning ticket, however, the deadline may not exceed one year;
  9. Manner of paying a prize to the owner of a winning ticket; and
  10. Setoff of a prize.

Source:

S.L. 2005, ch. 470, § 4; 2019, ch. 429, § 6, eff August 1, 2019.

CHAPTER 53-13 Agritourism Activity Registration and Liability

53-13-01. Definitions.

In this chapter, unless the context otherwise requires:

  1. “Agritourism activity” means any activity, including farming and ranching activities, or any historic, cultural, or natural attraction, that is viewed or enjoyed by members of the general public, for educational, recreational, or entertainment purposes, regardless of whether the member of the general public pays to participate in the activity or to view or enjoy the attraction.
  2. “Inherent risk” means:
    1. Any condition or danger that is an integral part of agritourism, including:
      1. Surface and subsurface conditions of the land;
      2. Surface and subsurface conditions of the water;
      3. Natural conditions of land, vegetation, and water;
      4. The behavior of wild or domestic animals; and
      5. Structures and equipment ordinarily used in farming or ranching; and
    2. The potential of a participant to act in a negligent manner, including failing to follow instructions or failing to exercise reasonable caution while engaging in an agritourism activity.
  3. “Participant” means a member of the general public who engages in a registered agritourism activity.
  4. “Registered agritourism activity” means an agritourism activity that is registered with the division of tourism.
  5. “Registered agritourism operator” means a person that is registered with the division of tourism and that is engaged in the provision of a registered agritourism activity.

Source:

S.L. 2011, ch. 382, § 1.

Effective Date.

This chapter became effective August 1, 2011.

53-13-02. Registration — Requirements.

  1. A person may become a registered agritourism operator by registering with the division of tourism.
  2. The registration must include a description of the agritourism activity that the person provides or intends to provide.
  3. The division of tourism may not impose any fees or other charges to register agritourism operators.
  4. A registration under this section is effective for five years.

Source:

S.L. 2011, ch. 382, § 1.

53-13-03. Registered agritourism operators — Maintenance of list.

The division of tourism shall:

  1. Maintain a list of all registered agritourism operators; and
  2. Maintain a list of all registered agritourism activities.

Source:

S.L. 2011, ch. 382, § 1.

53-13-04. Notice regarding liability — Requirements.

A registered agritourism operator shall post in a conspicuous location on the premises and include in each written contract pertaining to an individual’s participation in agritourism a notice indicating that under the laws of this state, the registered agritourism operator is not liable for any injury to or for the death of a participant if the injury or death results from an inherent risk.

Source:

S.L. 2011, ch. 382, § 1.

53-13-05. Participant in agritourism activity — Assumption of risk.

Except as otherwise provided, a participant assumes all inherent risks of agritourism. In any action for damages arising from an individual’s participation in agritourism, a registered agritourism operator may plead assumption of risk by the participant as an affirmative defense.

Source:

S.L. 2011, ch. 382, § 1.

53-13-06. Liability of registered agritourism operator.

This chapter does not prevent or limit the liability of a registered agritourism operator if the operator:

  1. Injures a participant willfully or through conduct that amounts to gross negligence; or
    1. Has actual knowledge of or should have known of:
      1. A dangerous condition on property, including in a facility, at which a registered agritourism activity occurs;
      2. A dangerous condition with respect to equipment used in the registered agritourism activity; or
      3. The dangerous propensity of a particular animal used in the registered agritourism activity;
    2. Does not exercise ordinary care to remedy the danger or to warn a participant of the danger; and
    3. The danger causes injury to the participant or contributes to the injury of the participant.

Source:

S.L. 2011, ch. 382, § 1.

53-13-07. Division of tourism — Copy of law — Provision to registered agritourism operator.

The division of tourism shall provide a copy of the applicable law to each person that registers or reregisters as an agritourism operator.

Source:

S.L. 2011, ch. 382, § 1.