Section 10-16-02-01 - License application and fee1. An applicant shall initially apply for a license for a site on a form prescribed by the lottery and remit an application fee of fifty dollars that is not refundable. The licensing fiscal year is October first through September thirtieth. An applicant may apply for a license for more than one site. A separate application is required for each site. Approval of an applicant is within the sole discretion of the lottery. Only one retailer may have a license for a specific site. A retailer shall apply for a renewal license for a site before October first of each year. 2. If the lottery approves an applicant for licensure for a site, the applicant shall remit a license fee of five hundred dollars for the applicant's first year for that site within fourteen days of when the applicant is notified by the lottery of its pending licensure. This fee is not prorated or refundable unless an applicant is disqualified according to section 10-16-02-03 before the applicant sells a ticket or a new owner purchases or leases a site and applies for a license before the former owner sells a ticket. After the first partial or full year of licensure, the annual license renewal fee for the site is one hundred fifty dollars and is not prorated or refundable on or after October first. 3. If a licensed alcoholic beverage establishment and an organization that is licensed under North Dakota Century Code chapter 53-06.1 to conduct a game of chance at that site both apply for a license for the site, the establishment has the first privilege. If the establishment does not apply and the organization does apply for a license, the organization shall obtain written authorization from the establishment and provide the authorization with the application. If the organization is issued a license, the establishment's authorization is valid as long as the organization is licensed to conduct a game of chance at that site. 4. A license allows a retailer to sell a ticket for all authorized games. 5. The lottery may license a retailer on a seasonal or temporary basis for a special event or lottery promotion. A special event is an infrequent, significant, and identifiable activity in the community, such as a fair. The director of the lottery may waive the application or license fee, or both, for a temporary site for a presently licensed or new retailer that sells a ticket on a temporary basis at the site for a special event or lottery promotion. 6. The lottery may issue a conditional license to an applicant, shall designate the time period for which the license is valid, and may impose any conditions related to: a. Determining whether an applicant or retailer is eligible for a license; b. Issuing a license to an applicant or retailer whose regular license has been relinquished, suspended, or revoked; c. Applying a minimum sales quota on an applicant or retailer; d. Requiring an applicant or retailer to reimburse the lottery for the lottery's net cost of installing and maintaining the terminal and telecommunications equipment at a business if the applicant or retailer does not meet or maintain a mutually agreed minimum sales quota; or e. Accessibility of a retailer to an individual who is disabled. 7. A license is a privilege and an applicant or retailer does not have a vested or legal right to the license. 8. Except as provided by subsection 5, an applicant's site must be a permanent business location. 9. The lottery may require a security deposit from an applicant or retailer. 10. If required by law, an applicant must be currently registered with the secretary of state. 11. A license may not be sold, transferred, assigned, pledged, or otherwise conveyed from a retailer to another person. 12. A retailer shall provide the lottery a thirty-day written notice of the retailer's intent to sell or otherwise transfer ownership of the retail business to another person. The acquiring person shall apply for a new license for that site if the person desires to be a retailer. 13. If a license becomes lost or destroyed, a retailer shall apply for a duplicate license and explain to the lottery what happened to the original license. 14. If the lottery denies an applicant a license, the lottery shall notify the applicant and state the reason for the denial. 15. If a license is revoked and reinstated within the same licensing fiscal year, no additional license fee is due. N.D. Admin Code 10-16-02-01
Effective February 1, 2004; amended effective April 1, 2006; April 1, 2008.General Authority: NDCC 53-12.1-13
Law Implemented: NDCC 53-12.1-02, 53-12.1-03, 53-12.1-06, 53-12.1-07, 53-12.1-13