Bill Summary – FastDemocracy

0915.01000
     Sixty-seventh
     Legislative Assembly                     HOUSE BILL NO. 1389
     of North Dakota
     Introduced by
       Representatives Cory, Kasper, Louser, Mock, M. Ruby
  A BILL for an Act to create and enact a new chapter to title 53 of the North Dakota Century
  Code, relating to the licensing and regulating of live poker; to amend and reenact subsection 1
  of section 12.1-28-01 of the North Dakota Century Code, relating to the definition of gambling;
  and to provide a contingent effective date.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
      SECTION 1. AMENDMENT. Subsection 1 of section 12.1-28-01 of the North Dakota
  Century Code is amended and reenacted as follows:
      1.   "Gambling" means risking any money, credit, deposit, or other thing of value for gain,
           contingent, wholly or partially, upon lot, chance, the operation of gambling apparatus,
          or the happening or outcome of an event, including an election or sporting event, over
          which the person taking the risk has no control. Gambling does not include:
          a.     Lawful contests of skill, including internet live poker, or lawful contests of speed,
                 strength, or endurance in which awards are made only to entrants or to the
                 owners of entries;
          b.     Lawful business transactions, or other acts or transactions now or hereafter
                 expressly authorized by law; or
          c.     Use of gaming equipment and devices that may not otherwise be lawful in the
                 state when the equipment or devices are used by any institution under the control
                 of the state board of higher education which awards degrees of bachelor's or
                 higher for the purpose of conducting scientific research in a controlled
                 environment on the campus of that institution.
     SECTION 2. A new chapter to title 53 of the North Dakota Century Code is created and
 enacted as follows:
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     Legislative Assembly
      Definitions.
      As used in this chapter, unless the context otherwise requires:
      1.   "Adjusted gross proceeds" means any sums wagered in an internet live poker hand
           which may be retained by the licensed internet live poker establishment as
           compensation.
      2.   "Internet live poker" means a card game played by players who are dealt cards by an
           online nonplayer dealer with the objective of each player betting the superiority of the
           player's own hand and winning the other players' bets by either making a bet no other
           player is willing to match or proving to hold the most valuable cards after the betting is
          over. The internet live poker games include Texas hold'em, Omaha high/low, Omaha
          high, draw, stud, low ball, any combination of these games, or any other similar poker
          game.
     3.   "Licensed internet live poker establishment" means a premises licensed by the
          attorney general pursuant to this chapter to conduct games of internet live poker.
     Internet live poker authorization and licensing.
     Internet live poker games may be operated by a licensed internet live poker establishment
 in accordance with this chapter. The attorney general shall license and regulate the playing of
 internet live poker at licensed internet live poker establishments in the state. The attorney
 general shall adopt rules for the licensure, regulation, and operation of internet live poker in the
 state.
     Internet live poker sites - Tax.
     1.   The attorney general may contract with a private entity for the development and
          implementation of a program for the licensing and regulation of internet live poker sites
          in the state. The program must include a license fee for each person that operates an
          internet live poker site and an annual licensing fee of ten dollars for each player who
          plays internet live poker at a site. A single annual licensing fee entitles a player to play
          internet live poker at any site licensed under this chapter.
     2.   The following tax is imposed on the adjusted gross proceeds of internet live poker
          games for each establishment authorized under this chapter:
          a.    Eight percent on the first one million dollars;
          b.    Six percent on the second one million dollars;
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     Legislative Assembly
           c.    Four percent on the third one million dollars;
           d.    Two percent on the next five million dollars;
           e.    One-half of one percent on the next fifty million dollars; and
            f.   One-fourth of one percent on any amount in excess of fifty-eight million dollars.
      3.   The licensed internet live poker establishment shall remit the tax to the attorney
           general on a quarterly basis. The attorney general shall remit the tax, licensing fees,
           and any other moneys collected under this chapter to the state treasurer for deposit in
           the internet live poker proceeds fund.
      Internet live poker proceeds fund.
     There is created in the state treasury an internet live poker proceeds fund. The fund
 consists of the internet live poker tax, licensing fees, and any other moneys collected under this
 chapter. Annually, all moneys in the fund must be allocated for:
     1.   Annual transfer to the counties for direct property tax relief. The amount allocated to a
          county must be subtracted from the county's base year levy under section 57-15-01.1
          to determine the county's maximum levy under section 57-15-01.1 and subtracted
          from the maximum levy in dollars that would be produced by the maximum levy in mills
          under section 57-15-06. Transfers under this subsection must equal sixty percent of
          total annual transfers from the internet live poker proceeds fund.
     2.   Annual transfers to the common schools trust fund to become a part of the principal of
          that fund. Transfers under this subsection must equal twenty percent of total annual
          transfers from the internet live poker proceeds fund.
     3.   Annual transfers to the general fund. Transfers under this subsection must equal
          twenty percent of the total annual transfers from the internet live poker proceeds fund.
     SECTION 3. CONTINGENT EFFECTIVE DATE. This Act becomes effective on the date the
 secretary of state certifies to the legislative council that House Concurrent Resolution No. 3012,
 as adopted by the sixty-seventh legislative assembly, has been approved by the voters.
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Statutes affected: 
INTRODUCED: 12.1-28-01
FIRST ENGROSSMENT: 12.1-28-01