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.

Legislative Session Recaps

A look back at the bills from the last four regular sessions that shaped how North Dakota bars, restaurants, hotels, and other hospitality businesses operate.

2025 Session (69th Legislative Assembly)

Adjourned May 3, 2025, after 74 legislative days

The 2025 session centered on charitable gaming at hospitality venues and on property tax relief. The biggest win for bar owners was new protection for their right to choose which charity operates gaming on their premises.

Enacted

• HB 1615, Local approval of gaming sites: Protects a bar owner’s right to choose which charity conducts gaming in the establishment. Cities and counties may not require donations, dictate which charity operates at a site, or deny a site simply because it has no gaming history, and they must adopt a written policy after public comment before denying approval. NDHA supported this bill.
• SB 2334, Eligible gaming locations and new study: Adds brewer taprooms to the establishments that may host charitable gaming, while keeping liquor stores, gas stations, grocery stores, and convenience stores off the list. Also directs an interim study of charities that own bars.
• HB 1375, ID checks and licensee due process: Makes it an infraction for a patron to refuse to show photo ID to an officer who believes the patron is under 21, and requires complaints against a licensed retailer to be filed within 14 days.
• HB 1440, Cigar lounges: Simplifies the first certification application for cigar lounges and allows pipe tobacco in addition to cigars.
• HB 1176, Property tax relief: Raises the primary residence credit to $1,600 and caps growth in local property tax budgets at 3% a year for all property, including commercial property, with a local voter opt-out.
• SB 2084, State employee lodging reimbursement: Raises the in-state lodging reimbursement cap for state travelers from 90% to 100% of the federal GSA rate, plus taxes.
• SB 2288, Veterans’ club food and beverage: Allows veterans’ clubs to use up to 20% of quarterly gaming net proceeds on food and beverages.

Bills That Did Not Pass

• SB 2373: Changes to the definition of an alcoholic beverage establishment and permissible gaming locations. Passed the Senate but failed in the House.
• HB 1465: A tiered reduction in the tax charities pay on gaming. Failed in the House, 44-47.
• HB 1416: Would have allowed two charities to conduct gaming at the same site. Failed in the Senate.
• HB 1324: A state income tax deduction for tips earned by food and beverage employees. Failed in the House.
• HB 1552: Would have limited city and county home rule sales taxes, which fund some local restaurant and lodging taxes. Failed in the House.

2023 Session (68th Legislative Assembly)

Adjourned April 30, 2023, after 75 legislative days

The 2023 session delivered NDHA’s long-sought increase in electronic pull tab rent for host venues, legalized cigar bars, and passed the largest tax relief package in state history.

Enacted

• SB 2304, Charitable gaming omnibus: Raised the maximum monthly rent charities pay host sites for electronic pull tab machines from $100 to $175 per machine for the first five and from $50 to $75 for the next five. Defined which establishments may host e-tabs and where they may be placed, codified the 10-machine site limit, added protections against local interference in site selection, and directed an interim study of charitable gaming.
• HB 1229, Cigar bars: Legalized cigar lounges that meet requirements for a humidor, solid enclosure, and ventilation that does not recirculate smoke into nonsmoking areas.
• SB 2082, Lodging licensing and inspection: Exempted certain small lodging operations, such as single structures with five or fewer guest rooms, from select licensing and inspection requirements.
• SB 2124, State employee meal reimbursement: Delivered the first significant increase in more than a decade: breakfast $7 to $9, lunch $10.50 to $14, and dinner $17.50 to $22.
• HB 1158, Income and property tax relief: A $515 million package that reduced income tax brackets from five to three, eliminated income tax on the first $44,725 of taxable income for single filers, and expanded property tax relief for homeowners.

Bills That Did Not Pass

• SB 2217: A legislative management study of credit card interchange (swipe) fees charged to merchants. Passed the Senate but failed in the House, 29-64.

2021 Session (67th Legislative Assembly)

Adjourned April 29, 2021, after 76 legislative days

Coming out of the first year of the COVID-19 pandemic, the 2021 session focused on helping hospitality businesses recover: earlier Sunday service, liability protection, and more flexibility for families dining out.

Enacted

• SB 2220, Sunday morning alcohol sales: Moved the start of Sunday alcohol sales to 8 a.m. Previously, bars and restaurants had to wait until 11 a.m. Effective August 1, 2021.
• HB 1175, COVID-19 liability protection: Protected businesses from lawsuits over COVID-19 exposure, except in cases of willful, reckless, or intentional misconduct, retroactive to January 1, 2020.
• HB 1184, Minors in restaurants: Allowed people under 21 in a restaurant’s bar area when accompanied by a parent or guardian, seated at least 3 feet from the bar, and out by 10 p.m. Also clarified that minors may work as servers under supervision as long as they do not serve alcohol. NDHA testified in support.
• HB 1284, Event permits and minors: Allowed minors to attend events held under an alcohol event permit in designated areas, with alcohol served only by employees 21 or older.
• HB 1212, Charitable gaming tax reform: Changed the charitable gaming tax to apply to adjusted gross proceeds rather than gross proceeds. A proposed moratorium on new electronic pull tab machines was rejected.
• HB 1180, Emergency powers and alcohol sales: Removed the governor’s authority to limit alcohol sales during a declared emergency.

2019 Session (66th Legislative Assembly)

Convened January 3 and adjourned April 26, 2019, after 76 legislative days

The 2019 session set the first rent structure for electronic pull tabs in bars, expanded local lodging and restaurant tax options, and gave restaurants and craft producers new flexibility.

Enacted

• HB 1394, Electronic pull tab rent: Set the maximum monthly rent charities may pay host sites for e-tab machines: $100 per machine for the first five and $50 per machine after that.
• SB 2192, County lodging and restaurant tax: Allowed counties to adopt a lodging tax, or a lodging and restaurant tax, outside cities that already have their own, with proceeds dedicated to visitor promotion.
• HB 1344, Wine to go: Clarified that restaurants may reseal a partially consumed bottle of wine for a guest to take home, with a receipt.
• SB 2343, Brewpubs and taprooms: Allowed brewpubs to sell beer to go and made other changes to brewer taproom rules.
• HB 1502, Craft distilleries: Allowed small distilleries to sell a limited number of cases directly to licensed retailers and doubled their special event days.
• HB 1193, Local wage mandates: Prohibited cities and counties from requiring a local “living wage,” keeping wage rules consistent statewide.
• HB 1507, Human trafficking awareness in lodging: Created an optional training program for hotel, motel, and resort employees and protected good-faith reporting from civil liability.

Bills That Did Not Pass

• HB 1242: Would have loosened rules for minors in restaurants that serve alcohol. The idea passed two years later as HB 1184.
• HB 1473: Would have replaced the wholesale liquor tax with a higher gross receipts tax on alcohol sales. Failed in the House, 12-81.

Looking Ahead to 2027

The next regular session convenes in January 2027. During the current interim, lawmakers are studying charities that own bars and other hospitality venues, a trend NDHA is following closely. If there is an issue affecting your business that you would like NDHA to raise with lawmakers, please contact Executive Director Terry Effertz at 701-833-7224 or terry@esmnd.com.

For the full text and history of any bill, visit the North Dakota Legislative Branch or the Secretary of State’s signed legislative bills archive. Bill summaries are provided for general information and are not legal advice.

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