25.0811.01000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Kempenich, Warrey
Senators Bekkedahl, Kessel, Meyer
A BILL for an Act to create and enact a new section to chapter 54-27 of the North Dakota
Century Code, relating to a legacy earnings fund; to amend and reenact subsection 1 of section
21-10-06 of the North Dakota Century Code, relating to funds invested by the state investment
board; to repeal sections 21-10-12 and 21-10-13 of the North Dakota Century Code, relating to
legacy fund definitions and a legacy earnings fund; to provide an effective date; and to declare
an emergency.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subsection 1 of section 21-10-06 of the North Dakota Century
Code is amended and reenacted as follows:
1.Subject to the provisions of section 21-10-02, the board shall invest the following
funds:
a.State bonding fund.
b.Teachers' fund for retirement.
c.State fire and tornado fund.
d.Workforce safety and insurance fund.
e.Public employees retirement system.
f.Insurance regulatory trust fund.
g.State risk management fund.
h.Budget stabilization fund.
i.Water projects stabilization fund.
j.Health care trust fund.
k.Cultural endowment fund.
l.Petroleum tank release compensation fund.
m.Legacy fund.
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HOUSE BILL NO. 1435
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24 Sixty-ninth
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n.Legacy earnings fund.
o.Opioid settlement fund.
p.o.A fund under contract with the board pursuant to subsection 3.
SECTION 2. A new section to chapter 54-27 of the North Dakota Century Code is created
and enacted as follows:
Legacy earnings fund - State treasurer - Legacy fund distribution - Allocations.
1.There is created in the state treasury the legacy earnings fund. The fund consists of all
moneys distributed by the state treasurer from the legacy fund pursuant to section 26
of article X of the Constitution of North Dakota. The distribution from the legacy fund
on July first of each odd - numbered year must be equal to seven percent of the
five - year average value of the legacy fund balance as reported by the state investment
board. The average value of the legacy fund balance must be calculated using the
fund balance at the end of each fiscal year for the five - year period ending with the
most recently completed even - numbered fiscal year.
2.From the amount distributed to the legacy earnings fund under subsection 1, the state
treasurer shall allocate funding in July of each odd - numbered year in the following
order:
a.The first one hundred two million six hundred twenty-four thousand dollars or an
amount equal to the amount appropriated from the legacy sinking and interest
fund for debt service payments for a biennium, whichever is less, to the legacy
sinking and interest fund under section 6 - 09.4 - 10.1. However, the amount under
this subdivision may not exceed thirty-three percent of the amount distributed
from the legacy fund on July first under subsection 1.
b.The next two hundred twenty-five million dollars to the general fund to provide
support for tax relief initiatives approved by the legislative assembly.
c.The next one hundred million dollars to the legacy earnings highway distribution
fund for allocations under section 54 - 27 - 19.3.
d.The remaining amount as follows:
(1)Fifty percent to the general fund.
(2)The remainder to the strategic investment and improvements fund to be
used in accordance with section 15 - 08.1 - 08.
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SECTION 3. REPEAL. Sections 21-10-12 and 21-10-13 of the North Dakota Century Code
are repealed.
SECTION 4. EFFECTIVE DATE. This Act becomes effective July 1, 2025.
SECTION 5. EMERGENCY. This Act is declared to be an emergency measure.
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