Committee hears bill to direct veterans' gaming tax revenues to Post War Trust Fund and homelessness programs

The House Finance and Taxation Committee opened a hearing on House Bill 15‑04, a measure that would direct 50% of gaming tax revenue collected from veteran service organizations to the state Post War Trust Fund and 50% to grants aimed at preventing and eliminating homelessness among North Dakota veterans.

Representative Mary Schneider, who said she represents District 21 (Central Fargo and West Fargo), told the committee the bill “proposes changes to ensure that a portion of gaming funds, those funds only from veteran services organizations, is directed towards services for veterans.” She told the panel the proposal would send “Half ... to the Department of Veteran Affairs Post War Trust Fund ... and half would go to prevent and eliminate current homelessness among North Dakota veterans.”

The bill’s backers said the split is intended to address both immediate needs and long‑term stability for veterans. Lonnie Longan, commissioner of the North Dakota Department of Veterans Affairs, summarized the Post War Trust Fund (fund 410) history and operation and described why the department supports making some funds immediately available for grants while also growing the trust’s principal. Longan said the Post War Trust Fund is created under the state constitution and North Dakota Century Code provisions for veterans funds and that, as of Nov. 24 (date cited by Longan in testimony), the fund balance was about $8.6 million.

Longan briefed the committee on mechanics: the charitable gaming operating fund (fund 503) receives the gaming tax; the bill would ask the Tax Commissioner to direct half of the tax collected from veteran service organizations to the Post War Trust Fund principal and make the other half available to the Department of Veterans Affairs grant programs. Longan said the average tax paid by veteran organizations in recent years is about $4.7 million; he said half of that amount would be roughly $2.3 million when applied as proposed.

Representative Schneider and other witnesses cited homelessness, mental health, addiction, family instability and barriers to VA benefits as drivers for additional targeted funding. Schneider pointed to the fiscal‑note estimate, saying the calculations “would allow less than $600,000 — it would allow $590,045 per year to the Post War Trust Fund to grow that fund for the future use of all veteran services, and that same amount to address ... homelessness for veterans over the next two years.”

Supporters from the charitable‑gaming sector and social‑service agencies told the committee the change would not alter local charitable giving by veterans posts but would reallocate the state tax share on gaming receipts. Scott Meske, representing the North Dakota Gaming Alliance, said the alliance “stand[s] in support of this bill. It just makes sense,” and noted statewide gaming tax receipts are large enough to sustain multiple priorities. Andrea Olsen, executive director of the Community Action Partnership of North Dakota, described the SSVF (Supportive Services for Veteran Families) program her network administers statewide and said CapND served 362 veteran households last fiscal year with an average time to housing of 36 days.

Several veterans and case managers described individual impacts of SSVF and similar programs. Marshall Smith, a veteran who testified, credited SSVF with stabilizing his housing and helping him return to school. Max Pontinella, a Minot region case manager, and other county veteran service officers described how short financial interventions, case management and connections to VA benefits helped veterans secure permanent housing and health care.

Deb McDaniel, director of the Charitable Gaming Division in the Office of the Attorney General, explained existing law distinguishing net proceeds (the portion charities may use locally) from the gaming tax remitted to the state. McDaniel said the gaming tax is collected “right off the top” and flows into the charitable gaming operating fund; after division costs and set allocations, remaining tax revenues go to the general fund. She confirmed organizations may donate their net proceeds to local charities and that veteran organizations with the qualifying federal status (501(c)(19)) are identifiable for the carve‑out called for in the bill; the AG’s office estimated there are approximately 52 qualifying veteran organizations.

Committee members asked about flexibility and earmarking. Representative Porter questioned whether restricting half the tax to homelessness now could reduce future flexibility; Longan and Schneider replied the proposal was designed to preserve principal growth while making some funds available immediately because pressing needs exist now and waiting on interest earnings from newly added principal could delay help for several years.

The committee heard broad support from veterans’ organizations, community action agencies, county veteran service officers and the North Dakota Veterans Legislative Council. No opposition testimony was recorded in the hearing, and the committee closed public testimony and moved on to other agenda items. No committee vote on House Bill 15‑04 was recorded in the transcript excerpt provided.

Ending: The bill remains in the House Finance and Taxation committee after the hearing; supporters said the measure would provide both immediate grant funding and long‑term growth for the Post War Trust Fund if adopted.