Senate hearing on bill to tighten definition of "public‑spirited organization" draws opposition from CVBs and rural nonprofits

The Senate Judiciary Committee opened a hearing on Senate Bill 2035, which would amend statutory definitions used to determine which organizations may conduct charitable gaming and raffles in North Dakota.

The bill would amend the definition of “educational organization” and substantially revise the definition of “public‑spirited organization,” adding language that the entity must be “organized and operated not for pecuniary profit or gain, but for the primary purpose of improving or alleviating a condition of public concern within the state or conferring a direct benefit on the community at large.”

Senator Keith Bridal, who said he chaired the interim judiciary committee that drafted the changes, told the panel the interim group’s intent was to “put some guardrails” around charitable gaming so it “doesn’t just bleed out to become things that were not intended by the legislative body.” Legislative counsel Austin Gunderson summarized the technical edits and noted the bill also removes an explicit exemption for “adult amateur athletic activities.”

Deb McDaniel, director of gaming for the North Dakota Attorney General’s Office, testified she was neutral on the bill and said the office interprets the bill’s current wording to include youth activities such as athletics: “We would consider youth activities to include athletics or any other kind of youth activities,” she said, adding an amendment could explicitly list “youth athletic community and social welfare activities” if the committee wanted more clarity.

Opponents said the changes create statutory uncertainty for long‑standing users of charitable gaming. Sherry Grossman, CEO of the Bismarck‑Mandan Convention and Visitors Bureau, said CVBs have conducted gaming since 1993 and that gaming funds account for about half of her agency’s annual budget (roughly $900,000): “Our gaming funds are used to bring people to Bismarck‑Mandan to spend money in our restaurants, hotels, and stores,” Grossman said. She urged the committee to “do not pass” the bill, saying the language is subjective and could later be read to exclude CVBs.

Taryn Dorr, executive director of the Bowman County Development Corporation, described a rural agency that uses gaming revenue for childcare, education and public safety. She said the bill’s language is “too subjective and creates some unnecessary uncertainty” and asked the committee to preserve economic development and tourism language that had previously made those organizations clearly eligible.

Other cultural and tourism stakeholders, including Aaron Barth of the Fort Abraham Lincoln Foundation and representatives of the North Dakota Travel Alliance, joined CVBs in urging the committee to preserve the ability of tourism and economic development organizations to participate in charitable gaming, or to make the language more explicit.

Legislative counsel and the attorney general’s office told senators they believe the bill, as drafted, would cover youth activities and many tourism‑related activities, but that adding targeted wording could remove doubt. Committee members repeatedly asked for assurances about youth sports and victims of uneven interpretation at the local level.

The committee recessed the hearing after public testimony; no final action on the bill was recorded in the provided transcript.

Ending: The hearing drew extensive testimony from local tourism authorities and rural nonprofits urging the committee to avoid language that could unintentionally remove longstanding charitable‑gaming participants. Legislative counsel and the attorney general’s office recommended clarifying amendments rather than a wholesale exclusion, particularly to ensure youth activities remain eligible.