Committee recommends "do not pass" on House Bill 1465 after debate over charitable gaming reserves and fiscal impact

The House Finance and Taxation Committee voted to recommend a "do not pass" on House Bill 1465 after members expressed concern about the bill's fiscal impact and whether the measure would meaningfully increase funds for smaller charities. The committee's recommendation passed by a 10-2 margin with two members absent.

Supporters of keeping the bill alive had proposed an amendment (No. 01002) earlier in the session. Representative Dressler moved the amendment and Representative Olsen seconded; the amendment passed on a roll call. After further discussion, Representative Haggart moved that the committee give HB1465 a "do not pass" recommendation, a motion seconded by Representative Steiner. The clerk reported the committee vote as 10 in favor, 2 opposed and 2 absent; the motion carried, and committee members declined to carry the bill forward.

The committee's debate focused on how much revenue charitable gaming organizations currently hold in reserves and whether reducing state-collected revenue would actually increase funds available to small charities. At one point, a member noted discussions with the Attorney General's office and said the AG could, through administrative rule, change game payback percentages — for example, switching from games that provide a 90% payback to ones that provide 88% or 85% — which would shift more gross receipts toward charitable purposes. "Through administrative rule, they can change their games. Instead of purchasing games that provide 90% payback, they can purchase ones that provide 88% payback, 85%. That's a decision ... that would put more dollars towards their charitable cause," the member said during discussion.

Other committee members emphasized that some large charitable organizations are holding substantial reserves that could be used for charitable work. "When we look at the sheet that we passed out earlier ... when they're sitting on almost a hundred million dollars in reserves that could be going to their charitable causes, I don't think that gives me any reason to give away state revenue back to them," one member said.

Committee leadership also reported receiving outside input. The chair read a text from a named industry contact, saying the North Dakota Gaming Association did not oppose letting the bill die because of the fiscal note. The chair said the association "is fine with having it die." That message was read into the record during the meeting.

The committee did not adopt the bill; the do-not-pass recommendation means HB1465 will not advance from committee in its current form. No further motions to carry the bill were successful during the session.

The committee's formal roll-call entries were read aloud during the meeting and recorded in the committee minutes.