23.0972.01000
Sixty-eighth
Legislative Assembly SENATE BILL NO. 2336
of North Dakota
Introduced by
Senators Lee, J. Roers, Sorvaag
Representatives Boschee, Roers Jones, Strinden
1 A BILL for an Act to amend and reenact section 53-06.1-11.1 of the North Dakota Century Code,
2 relating to eligible uses of net proceeds.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Section 53-06.1-11.1 of the North Dakota Century Code is
5 amended and reenacted as follows:
6 53-06.1-11.1. Restricted use of money in certain political activities - Eligible uses of
7 net proceeds.
8 1. Except as provided in subdivision c of subsection 1 of section 53-06.1-03:
9 a. A licensed organization or an organization that has a permit may not use money
10 from any source for placing an initiated or referred measure on a ballot or for a
11 political campaign to promote or oppose a person for public office.
12 b. Except for a use related to an organization's primary purpose, a licensed
13 organization or organization that has a permit may not use net proceeds to
14 influence legislation or promote or oppose referendums or initiatives.
15 c. Any funds expended by a licensed organization or an organization that has a
16 permit to promote or oppose an initiated or referred measure that is on the ballot
17 or for any activities of a lobbyist under section 54-05.1-02, that are not
18 compensation or expenses paid to a lobbyist, and that are not required to be
19 reported under section 54-05.1-03 must be reported to the attorney general as
20 prescribed by the attorney general. A violation of this subsection subjects an
21 organization to a suspension of its license or permit for up to one year.
22 2. A licensed organization or an organization that has a restricted event permit shall
23 disburse net proceeds within the period prescribed by rule and for only these
24 educational, charitable, patriotic, fraternal, religious, or public-spirited uses:
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1 a. Uses for stimulating and promoting state and community-based economic
2 development programs within the state which improve the quality of life of
3 community residents.
4 b. Uses for developing, promoting, and supporting tourism within a city, county, or
5 the state.
6 c. Uses benefiting an indefinite number of persons by bringing them under the
7 influence of education, cultural programs, or religion which include disbursements
8 to provide:
9 (1) Scholarships for students, if the disbursement is deposited in a scholarship
10 fund for defraying the cost of education to students and the scholarships are
11 awarded through an open and fair selection process.
12 (2) Supplementary assistance to a public or private nonprofit educational
13 institution registered with or accredited by any state.
14 (3) Assistance to libraries and museums.
15 (4) Assistance for the performing arts and humanities.
16 (5) Preservation of cultural heritage.
17 (6) Youth community, social welfare, and athletic activities.
18 (7) Adult amateur athletic activities within the state, including team uniforms
19 and equipment.
20 (8) Maintenance of places of public worship or support of a body of
21 communicants, gathered in common membership for mutual support and
22 edification in piety, worship, or religious observances.
23 (9) Scientific research.
24 d. Uses benefiting an indefinite number of persons by relieving them of disease,
25 suffering, or constraint which include disbursements to provide:
26 (1) Assistance to an individual or family suffering from poverty or
27 homelessness.
28 (2) Encouragement and enhancement of the active participation of the elderly in
29 our society.
30 (3) Services to the abused.
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1 (4) Services to persons with an addicted behavior toward alcohol, gambling, or
2 drugs.
3 (5) Funds to combat juvenile delinquency and rehabilitate ex-offenders.
4 (6) Relief for the sick, diseased, and terminally ill and their physical well-being.
5 (7) Funds for emergency relief and volunteer services.
6 (8) Funds to nonprofit nursing homes, nonprofit day care centers, and nonprofit
7 medical facilities.
8 (9) Social services and education programs aimed at aiding emotionally and
9 physically distressed, handicapped, elderly, and underprivileged persons.
10 (10) Funds for crime prevention, fire protection and prevention, and public safety.
11 (11) Funds to relieve, improve, and advance the physical and mental conditions,
12 care and medical treatment, and health and welfare of injured or disabled
13 veterans.
14 e. Uses that perpetuate the memory and history of the dead.
15 f. Uses increasing comprehension of and devotion to the principles upon which the
16 nation was founded, including disbursements to aid in teaching the principles of
17 liberty, truth, justice, and equality. However, beauty pageants do not qualify.
18 g. The erection or maintenance of public buildings, facilities, utilities, or waterworks.
19 h. Uses lessening the burden of government which include disbursements to an
20 entity that is normally funded by a city, county, state, or United States government
21 and disbursements directly to a government entity or its agency.
22 i. Uses benefiting a definite number of persons who are the victims of loss of home
23 or household possessions through explosion, fire, flood, or storm and the loss is
24 not covered by insurance.
25 j. Uses benefiting a definite number of persons suffering from a seriously disabling
26 disease or injury causing severe loss of income or incurring extraordinary
27 medical expense which is not covered by insurance.
28 k. Uses, for community service projects, by chambers of commerce exempt from
29 federal income tax under section 501(c)(6) of the Internal Revenue Code. A
30 project qualifies if it develops or promotes public services, including education,
31 housing, transportation, recreation, crime prevention, fire protection and
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1 prevention, safety, tourism, and health. Uses that directly benefit a chamber of
2 commerce do not qualify.
3 l. Uses for or of benefit to efforts in support of the health, comfort, or well-being of
4 the community which include disbursements to provide:
5 (1) Funds for adult bands, including drum and bugle corps.
6 (2) Funds for trade shows and conventions conducted in this state.
7 (3) Funds for nonprofit organizations that operate a humane society, zoo, or fish
8 or wildlife reproduction and habitat enhancement program.
9 (4) Funds for public transportation, community celebration, and recreation.
10 (5) Funds for preservation and cleanup of the environment.
11 m. To the extent net proceeds are used toward the primary purpose of a charitable,
12 educational, religious, public safety, or public-spirited organization, or are used
13 for a veterans or public cemetery by a veterans organization, that has obtained a
14 final determination from the internal revenue service as qualifying for exemption
15 from federal income tax under section 501(c)(3) or 501(c)(19) of the Internal
16 Revenue Code, the organization may establish a special trust fund or foundation
17 as a contingency for funding or maintaining the organization's future program
18 services should the organization discontinue conducting games or dissolve.
19 n. Uses for a fundraising activity unrelated to an organization's primary purpose
20 provided that the gross revenue from the activity is disbursed to uses prescribed
21 by this subsection.
22 3. The eligible uses in subsection 2 do not include the erection, acquisition, property
23 taxes, special assessments, improvement, maintenance, or repair of real property
24 owned or leased by an organization unless the real property is used exclusively for an
25 eligible use or, by a veterans organization, or for office or storage space under
26 subsection 4.
27 4. A licensed organization or recipient of net proceeds may not use net proceeds for
28 administrative or operating expenses involving the conduct of gamesdesignate space
29 within real property used for an organization's primary purpose as office or storage
30 space for gaming-related administration.
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Statutes affected: INTRODUCED: 53-06.1-11.1
FIRST ENGROSSMENT: 53-06.1-11.1
Enrollment: 53-06.1-11.1