53-06.1-03. Permits, site authorization, and licenses - Organization requirements - Site inspection

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

Site inspection.

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:

a. 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

fifteen thousand dollars and total prizes of all games do not exceed fifty 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.

b. 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.

c. 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.

d. 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:

a. First securing approval for a site authorization from the governing body of the city

or county in which the proposed site is located. The approved authorization must

be recorded on a site authorization form that is to accompany the license

application to the attorney general for final approval. An eligible organization may

request a specific site location on the site authorization form.

(1) A governing body may deny a site authorization only in accordance with an

ordinance or written policy adopted or amended following public comment.

Under the ordinance or policy, the governing body:

ation form that is to accompany the license

application to the attorney general for final approval. An eligible organization may

request a specific site location on the site authorization form.

(1) A governing body may deny a site authorization only in accordance with an

ordinance or written policy adopted or amended following public comment.

Under the ordinance or policy, the governing body:

(a) 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;

(b) May not deny a site authorization solely because the eligible

organization has not conducted gaming at the site;

(c) May not require that an eligible organization be located at a specific

site or require a site to enter a lease with a specific organization as a

condition of site authorization;

(d) May require a signed agreement between an eligible organization and

a site owner before approving a site authorization. The agreement

must be contingent on securing approval for the site authorization

from the governing body of the city or county;

(e) May limit the type of games, the number of electronic pull tab devices

or tables for the game of twenty-one per site, the number of sites the

governing body may approve per licensed organization, and the

number of sites upon which a licensed organization may conduct

games within the city or county;

(f) May establish qualifications for an eligible organization to receive a

site authorization; and

(g) May charge a one hundred dollar fee for a site authorization.

(2) This subsection may not be construed to prohibit a governing body from:

(a) Creating and enforcing rules that are more stringent than state law

regarding charitable gaming as otherwise permitted in code; or

(b) Denying a site authorization for just cause, including, after

consultation with the attorney general, a violation of state law or local

rules.

b. 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 seventy-five

dollar license fee for each city or county that approves a site authorization. The

attorney general shall deposit twenty-five dollars of this fee into the charitable

gaming technology fund under section 53-06.1-12.4. 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 seventy-five dollar license fee for each city or county in which a site

is located. The attorney general shall deposit twenty-five dollars of this fee into

the charitable gaming technology fund under section 53-06.1-12.4. 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. The attorney general may deny issuance of a license or deny renewal

of a license to an eligible organization that has obtained approval of site

authorization under subdivision a, if the organization or site is not in compliance

with applicable laws and rules.

3. A licensed organization or organization that has a permit shall conduct games as

follows:

a. Only one licensed organization or organization that has a permit may conduct

games at an authorized site on a day, except a raffle or a sports pool conducted

under a local permit 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 or a sports pool is physically separated from the

area where games are conducted by the regular organization.

nduct

games at an authorized site on a day, except a raffle or a sports pool conducted

under a local permit 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 or a sports pool 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.

b. Except for a temporary site authorized for fourteen or fewer consecutive days for

not more than two events per quarter or a licensed organization authorized on or

before January 1, 2023, to conduct gaming at more than fifteen sites, a licensed

organization, including a closely related organization, may not have more than

fifteen sites.

c. Games of electronic quick shot bingo, electronic pull tabs, 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. Electronic pull tabs must be conducted in

a designated area where patrons must be twenty-one years of age or older to

enter.

d. 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.

e. An organization may not install more than ten electronic pull tab devices at a site.

f. An organization with more than fifteen licensed sites under subdivision b may not

increase its number of sites beyond the number of sites licensed as of January 1,

2023.

g. An organization conducting gaming at an authorized site on January 1, 2023,

may continue to operate gaming, including as provided under subsection 1 of

section 53-06.1-06, at the authorized site regardless of whether the authorized

site is an alcoholic beverage establishment as defined under section 53-06.1-01.

h. For a raffle board, an organization permitted to conduct raffles shall sell the

numbered squares on the board for the same price and may sell squares at a site

thirty days before the drawing.

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.