North Dakota Administrative Code › Title 99 - State Gaming Commission › Article 99-01.3 - Games of Chance › Chapter 99-01.3-14 - Eligible Uses › Section 99-01.3-14-02 - Eligible uses

Current through Supplement No. 393, July, 2024
1. A use of net
				proceeds for erecting, acquiring, improving, maintaining, or repairing real or
				personal qualifying property owned by an organization is an eligible use
				provided the organization agrees that, upon abandoning the exclusive use of the
				property for an eligible use, it will transfer the property to a governmental
				unit or to an organization that will use it for an eligible use. However, if an
				organization sells the property, the portion of net receipts from the sale
				related to the original net proceeds must be deposited in the trust account and
				disbursed to an eligible use, or reinvested in property used for a similar
				purpose.
2. In applying subdivision
				a of subsection 2 of North Dakota Century Code section 53-06.1-11.1, net
				proceeds must be disbursed to or by a recognized nonprofit city or county job
				development authority or certified or noncertified local development
				corporation.
3. In applying
				subdivision b of subsection 2 of North Dakota Century Code section
				53-06.1-11.1, net proceeds must be used to attract in-state and out-of-state
				visitors by publicizing attractions, promoting, planning, conducting, and
				sponsoring market research, trade shows, meetings, conventions, seminars,
				sporting events, and festivals, and by developing and promoting the state's
				attractions, recreational opportunities, shopping malls, and other
				tourism-related activities. Uses may not directly benefit a for-profit
				business.
4. In applying
				subdivision c of subsection 2 of North Dakota Century Code section
				53-06.1-11.1, eligible uses include:
a. A
				scholarship for a student. A scholarship may be based on criteria, including
				community service, patriotism, leadership, education, talent, athletic ability,
				course of study, or special disability. No scholarship award may be decided by
				a donor organization, unless the organization administers an education program
				for special students or students inflicted with disease. Net proceeds may be
				disbursed to a scholarship board or to an educational institution. A majority
				of the members of a scholarship board may not be members of a donor
				organization. A disbursement must be payable to an educational institution and
				a recipient, scholarship board and a recipient, or to an educational
				institution or scholarship board. A student receiving a scholarship may apply
				it at a nonprofit public, or for-profit or nonprofit private, educational
				institution, including a trade or business school, registered with or
				accredited by any state board. A scholarship may be for housing, books,
				tuition, and meals that relate to a student's educational need. A scholarship
				may be awarded through a pageant, contest, or tournament; however, associated
				administrative and operating expenses do not qualify. No scholarship may be
				based on criteria that includes a person's physical appearance;
b. Supplemental assistance to a primary,
				secondary, or postsecondary nonprofit educational institution, including
				affiliated alumni associations, booster clubs, parent-teacher councils, and
				college sororities and fraternities. Net proceeds may be used for youth
				activities, educational equipment, musical instruments, playground equipment,
				extracurricular activities, sporting events, field trips, cultural exchanges,
				maintenance of buildings, remodeling, fixed assets, administrative and
				operating expenses, and supplies;
c. Assistance to a library for maintenance of
				buildings, remodeling, fixed assets, administrative and operating expenses,
				supplies, program services, special events, promotions, educational material,
				books, computer systems, information services, exhibits, story hours, film
				showings, and discussion groups. A disbursement to a museum may be for
				maintaining buildings, remodeling, fixed assets, administrative and operating
				expenses, and assembly of exhibits for preservation, collection, education, and
				interpretation;
d. Assistance to a
				nonprofit performing arts and humanities organization for studio and auditorium
				rental, speaker fees, equipment, travel, administrative and operating expenses,
				and uniforms. Functions may include children's theater, summer camps, and
				developing art parks;
e.
				Preservation of cultural heritage, including restoring, reconstructing,
				improving, or preserving public buildings in North Dakota which are listed in
				the state historic sites registry or the national registry of historic places.
				Net proceeds may be used for programs of nonprofit organizations that provide
				historical information or tell a story about a local region, North Dakota, or
				the nation and which primarily educate and inspire the public, elderly,
				disabled, schoolchildren, teachers, and foreign visitors. Qualifying programs
				include the lifestyles and human experiences of homesteaders, immigrants,
				Indian culture, frontier army, and fur trade. Net proceeds may be used for
				interpretive programming, including exhibits, publications, simulations of
				life, classroom outreach services, audiovisual presentations, special events,
				and tours. Special events such as chautauquas and community celebrations of
				Norskfest, threshing bees, and Octoberfest qualify for expenses of parades,
				displays, equipment, educational materials, and awards. School reunion expenses
				do not qualify;
f. Youth community
				and athletic activities open to all youth, less than eighteen years of age. An
				organization shall disburse, to the extent possible, equal amounts to
				activities for each gender. Net proceeds may be used for uniforms, equipment,
				tournament fees, private and public ground transportation, coaches' salaries
				and mileage, judges, field trips, speaker fees, father-son and mother-daughter
				banquets provided that the meals for these banquets are provided free, meals,
				and lodging. Meals and mileage may not exceed the state per diem rate and
				lodging expenses must be documented with a receipt;
g. Adult amateur athletic activities within
				North Dakota. Net proceeds may be used for sponsorship and league fees for
				entire teams, uniforms, umpire fees, construction, use and maintenance of a
				sports complex, and team equipment. Uniforms and equipment must be owned by the
				team or league association. Tournament fees, individual player fees, food and
				drink, lodging, trophies, prizes, yearbook, advertising, and private or public
				transportation expenses do not qualify, except transportation expenses for a
				disabled player. Unless specifically allowed in this section, net proceeds may
				not be used for adult hobby and recreational activities that personally benefit
				adult individuals. Rodeos, car, or horse racing, car or gun shows, shooting
				events, fishing derbies, tractor or pickup pulls, and similar activities do not
				qualify;
h. Maintenance of
				religious buildings, remodeling, fixed assets, administrative and operating
				expenses, gospel outreach programs, youth church activities, uniforms for a
				choir, furnishings, and supplies for church groups and services; and
i. Scientific research for a cure to relieve
				human beings of disease and suffering.