Legislative Action

The North Dakota Hospitality Association (NDHA) places a high priority on protecting your business from unfair taxation, undue regulation, and policy changes that could harm your bottom line. We focus on building strong working relationships between our industry and the decision-makers who shape it every day.

NDHA members benefit from a team that develops legislative policy in the best interest of our industry and shepherds that policy through the process. These policies are set by the NDHA Board of Directors and our Legislative Committee, based on direct member input.

Gaming Rent

NDHA’s largest legislative accomplishment this session was the passage of Senate Bill 2304, an omnibus gaming bill. The bill secured a long-sought rent increase on electronic pull tab machines, structured in two parts:

Maximum rent on the first five machines: $100 → $175 per machine
Maximum rent on the next five machines: $50 → $75 per machine

Definitions and Statutory Cleanup

SB 2304 also delivered a series of statutory updates: defining where electronic pull tabs may be placed within bars, identifying which venues are eligible to host them, and codifying the existing 10-machine site limit. The bill further granted charities and hospitality establishments new protections against local interference in charitable gaming site selection, and created a new oversight role for the Attorney General when a local authority intervenes in that relationship.

Cigar Bars

After nearly a decade of effort, cigar bars are finally legal in North Dakota with the passage of House Bill 1229. The bill permits cigar bars that meet the following conditions: a humidor on the premises; enclosure by solid walls or windows, a ceiling, and a solid door; and a ventilation system that does not recirculate exhausted air into nonsmoking areas or backstream smoke into them. Cigar bars may open beginning in August.

Swipe Fee Study

Senate Bill 2217 would have prevented banks, credit card companies, and other financial institutions from charging interchange fees on the tax portion of credit card transactions. The bill was backed by both majority leaders and had broad support in the Senate. In the House, significant lobbying from credit unions, banks, and other financial institutions stopped its advance. After the bill failed, NDHA worked with legislators to secure a legislative management study examining the total cost of these fees and their annual financial impact on North Dakota businesses.

Changes to Lodging Health Inspection

Under Senate Bill 2082, certain lodging establishments are now exempt from select licensing and inspection requirements. Specifically:

Single structures with five or fewer guest rooms and 10 or fewer total occupants
Facilities with multiple structures totaling no more than five guest rooms and 10 occupants
Facilities providing certain personal care services

These establishments will no longer face the same inspection requirements as larger lodging properties.

State Employee Meal Reimbursement

Senate Bill 2124 delivered the first significant increase in state employee meal reimbursement rates in more than a decade:

Breakfast: $7 → $9
Lunch: $10.50 → $14
Dinner: $17.50 → $22

The bill also clarifies that nightly lodging reimbursement is capped at 90% of the federal GSA lodging rate for the state.

Property and Income Tax Changes

House Bill 1158 enacts the largest tax relief package in North Dakota history. Designed to attract workers and ease the cost of homeownership, the package directly addresses two of the state’s most persistent challenges: workforce retention and recruitment. With HB 1158, North Dakota now has the lowest income tax in the country among states that levy one.

The package provides $515 million in targeted relief, including:

$358.2M in income tax relief, reducing the previous five brackets to three:
- $0 – $44,725: 0% (down from 1.1%)
- $44,726 – $74,750: 1.95% (down from 2.04% and 2.27%)
- $74,751 and above: 2.5% (down from 2.64% and 2.9%)
$156.7M in property tax relief
$53.5M in ongoing funding for an expansion of the Homestead Tax Credit Program

The package provides the most direct relief to middle-income families.

Legislative Interim Process

With the session adjourned, the legislature has begun the interim process — a period when committees study issues of importance and prepare recommendations for the next session.

The interim study most relevant to NDHA members is authorized in SB 2304 § 6: a comprehensive study of statewide charitable gaming. Input will be gathered from the Attorney General, large and small charitable organizations, local political subdivisions that authorize sites, gaming equipment manufacturers and distributors, gambling addiction counselors, and other industry leaders.

Areas under review include:

Economic impact of charitable gaming on the state, in both urban and rural areas
Gambling addiction and the treatment services currently available
Civic benefit of charitable gaming to surrounding communities
Site authorization and renewal, including whether charities have equitable access to sites
The gaming tax structure and public support for charitable gaming
Statewide and local restrictions on charitable gaming
Gaming expansion and site location patterns
Eligible uses of charitable gaming proceeds, including the share that may go to administration
Categories of organizations permitted to conduct charitable gaming, and their missions
Placement of gaming activity within sites, including electronic pull-tab device placement
Rental rates paid by organizations to alcoholic beverage establishments
The Attorney General’s authority to regulate alcoholic beverage establishments

If you would like to contribute to the study or testify, please contact Executive Director Terry Effertz at 701-833-7224 or terry@esmnd.com.

Other Issue Priorities

Wage and hour issues, including minimum wage and changes to the tip credit statute
Fees and licensing — ensuring state and local requirements remain reasonable and do not unduly burden bars, restaurants, or hotels
Food safety — working closely with the State Health Department on Food Safety code and serving as a resource for members preparing for inspections
Local ordinances — advising members on food, beverage, and lodging ordinance issues at the city and county level
Charitable gaming — securing fair rental rates for venues that host charitable gaming
Business climate — advocating across tax policy, regulation, wage and hour policy, and licensing

Past Legislative Accomplishments

Secured the first increase in electronic pull tab maximum rental rates and championed the original rental-rate framework
Successfully lobbied for $62 million in state economic impact funds for the industry in response to COVID-19
Joined federal industry allies to secure additional relief through the Restaurant Recovery Fund
Worked with other business associations to secure COVID-19 liability protections for businesses
Defeated a policy that would have weakened the trespassing law that helps keep employees and customers safe
Advanced legislation giving hospitality establishments tools to curb the use of fraudulent IDs
Passed legislation allowing alcohol service to begin at 8 a.m. on Sundays
Secured incentives for hospitality venues providing responsible beverage server training
Raised the reimbursement rate for retailers collecting sales tax
Authorized a study on the impact of credit card swipe fees on collected sales taxes

Follow this page, or follow NDHA on Facebook and X (formerly Twitter) for ongoing legislative updates.

Click here for a summary of the 2017 Legislative Session.

Click here for a summary of the 2015 Legislative Session.

Click here for a summary of the 2013 Legislative Session.

Click here for a summary of the 2009 Legislative Session.

Click here for a summary of the 2007 Legislative Session.

Click here for a summary of the 2005 Legislative Session.

For more information, contact Terry Effertz at (701) 833-7224 or terry@esmnd.com