A BILL for an Act to amend and reenact subsection 1 of section 53-06.1-03 of the North Dakota Century Code, relating to a public-spirited organization's use of raffle proceeds for a political purpose.
Summary
HB 1276 would amend North Dakota’s charitable gaming law, specifically the rules governing local permits and restricted event permits for public-spirited organizations under section 53-06.1-03 of the Century Code. The bill keeps the existing framework for licensing, permit approval by city or county governing bodies, prize limits, and reporting requirements, but adds an explicit exception allowing certain political organizations to use raffle net income for political purposes.
Under the bill, if the organization is a nonfederal candidate campaign committee, nonfederal political action committee, state political party, or legislative district party committee, raffle proceeds could be used for a political purpose. The bill also states that, for this purpose, a public-spirited use includes a political purpose. In effect, it would broaden the permissible uses of raffle proceeds for specified political entities while leaving the rest of the charitable gaming restrictions intact.
Impact
If enacted, HB 1276 would change state gaming law by carving out a new authorized use of raffle proceeds for certain political committees and party organizations. It would affect the interpretation of what counts as a permissible “public-spirited” use under North Dakota’s charitable gaming statutes and would likely require the Attorney General and local permitting authorities to apply the new rule when reviewing applications and reports from eligible organizations. The bill does not appear to alter prize caps, permit types, or general licensing structure, but it would expand the lawful disposition of net income from raffles for the listed political entities.
Sentiment
The bill appears to have faced strong opposition. It failed on House second reading by a wide margin, with 21 yeas and 72 nays, indicating that most members were not supportive of the proposal. No committee transcript is available, so the recorded vote is the main indicator of sentiment, and it suggests the chamber was broadly skeptical of allowing raffle proceeds to be used for political purposes.
Contention
The central point of contention is whether political organizations should be allowed to treat raffle proceeds as a permissible source of funding for political activity. Supporters of the bill likely viewed the change as a narrow clarification or expansion for certain political committees and parties, while opponents likely objected to mixing charitable gaming proceeds with partisan or campaign-related uses. The bill’s language also raises a definitional issue by declaring that a political purpose qualifies as a public-spirited use, which may have been controversial because it departs from the usual understanding of charitable or community-oriented gaming proceeds.