25.1104.02000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Senators Patten, Bekkedahl, Erbele, Kessel
Representatives Brandenburg, Porter
A BILL for an Act to amend and reenact subsection 9 of section 57-51.1-07.5 and sections
57-51.1-07.7 and 57-51.1-07.8 of the North Dakota Century Code, relating to the state share of
oil and gas tax revenue allocations, the municipal infrastructure fund, and the county and
township infrastructure fund.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subsection 9 of section 57-51.1-07.5 of the North Dakota
Century Code is amended and reenacted as follows:
9.The next fifty-nine million seven hundred fifty thousand dollars, or the amount
necessary to provide for twice the amount of the distributions under subsection 24 of
section 57-51.1-07.7, into the funds designated for infrastructure development in
non-oil-producing counties under sections 57-51.1-07.7 and 57-51.1-07.8 with fifty
percent deposited into the municipal infrastructure fund and fifty percent deposited into
the county and township infrastructure fund;
SECTION 2. AMENDMENT. Section 57-51.1-07.7 of the North Dakota Century Code is
amended and reenacted as follows:
57-51.1-07.7. Municipal infrastructure fund - Continuing appropriation - State
treasurer - Reports.
1.There is created in the state treasury the municipal infrastructure fund. The fund
consists of all moneys deposited in the fund under section 57-51.1-07.5. All moneys in
the fund are appropriated to the state treasurer on a continuing basis for the purpose
of providing grants to cities located in non-oil-producing counties. The grant funding
Page No. 1 25.1104.02000
ENGROSSED SENATE BILL NO. 2208
FIRST ENGROSSMENT
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may be distributed only to cities located in non-oil-producing counties, excluding hub
cities, and may be used only for essential infrastructure projects.
1.2.By November thirtieth of each even-numbered year, starting in 2022, a city that
receives a grant from the fund shall provide a report to the state treasurer on the use
of the funding. The state treasurer shall notify cities of the reporting requirement by
November first of each even-numbered year, starting in 2022. Upon request, the state
treasurer may provide an extension of up to fifteen days for a city to submit the report.
The state treasurer shall determine the format of the report. The report must include
the amount of grant funding received and spent by the city and a description of the
infrastructure projects completed in part or in whole with the grant funding. The state
treasurer shall make the reports available to the public on the state treasurer's
website.
3.a.A city that does not provide the report in a timely manner or in the correct format
is not eligible to receive a grant from the fund for a period of two years starting
from the date the report was due.
b.If a city uses the funding in a manner inconsistent with the requirements of this
section as identified in any financial audits conducted by the state auditor or an
independent accounting firm, the state treasurer shall reduce any future grants to
that city by the amount spent that was inconsistent with the requirements.
c.If a city adopts an ordinance or policy that exceeds state statute, administrative
rule, or policy or interferes, unreasonably restricts, or conflicts with an agriculture
or energy infrastructure project that is required to be permitted or approved by a
state agency, as reported under this subdivision, the city is not eligible to receive
any grants from the fund beginning on the date on which the state treasurer is
notified by the board of university and school lands of a determination of a
violation under this subdivision.
(1)For purposes of this subdivision, an agriculture or energy infrastructure
project includes a project permitted or approved under chapter 4.1 - 25,
23.1 - 06, 38 - 08, 38 - 22, 49 - 22, 49 - 22.1, or 61 - 28 or under administrative
rules related to the implementation of those chapters but excludes wind and
solar projects approved or permitted under chapter 49 - 22.
Page No. 2 25.1104.02000
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(2)A person may report a suspected violation under this subdivision to the
board of university and school lands in the form and manner prescribed by
the board. The report must include the name of the city, the city's ordinance
or policy suspected of violating state statute, administrative rule, or policy,
and the state statute, administrative rule, or policy which the person
suspects is violated by the city's ordinance or policy. Within thirty days after
receiving the report, the board shall investigate the suspected violation, in
consultation with a state agency having jurisdiction over the relevant state
statute, administrative rule, or policy, and shall provide a written
determination to the person who submitted the report and to the city named
in the report. The board shall notify the state treasurer if the determination
identifies a violation. Any person aggrieved by the determination may appeal
the determination using the procedure under chapter 28 - 32.
2.4.Within forty days after the fund balance is greater than or equal to the amount needed
for the grants under this subsection or by September thirtieth of each odd-numbered
year, whichever is earlier, the state treasurer shall distribute moneys in the fund as
grants to cities for essential infrastructure projects. The state treasurer shall distribute
the grants only if the fund balance is at least ten percent of the amount needed for
distributions under this subsection based on the following:
a.Two million five hundred thousand dollars to each city with a population of at
least five thousand;
b.Five hundred thousand dollars to each city with a population of at least two
thousand but less than five thousand; and
c.One hundred twenty-five thousand dollars to each city with a population of at
least one thousand but less than two thousand.
d.If, at the time of the distributions, the moneys in the fund are less than the
amount needed for the grants under this subsection, the state treasurer shall
distribute the grants under this subsection on a pro rata basis.
e.For the purposes of determining the city's population under this subsection, the
state treasurer shall use the most recent actual or estimated census data
published by the United States census bureau.
Page No. 3 25.1104.02000
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3.5.Within sixty days after the fund receives its statutory limit of oil and gas tax allocations
under section 57-51.1-07.5 or by September thirtieth of each odd-numbered year,
whichever is earlier, the state treasurer shall distribute the moneys in the fund as
grants to cities for essential infrastructure projects. The state treasurer shall distribute
the grants only if the fund balance is at least ten percent of the amount needed for
distributions under this subsection based on the following:
a.One hundred fifty dollars per person of the city's population.
b.In addition to the amounts in subdivision a, for a city with a positive average of
the annual percentage increase in population from three years prior, a dollar
amount equal to the product of the following:
(1)The amount calculated in subdivision a; and
(2)The average of the annual percentage increase in population from three
years prior, multiplied by ten.
c.In addition to the amounts in subdivisions a and b, for a city with a positive
average of the annual percentage increase in taxable property values from three
years prior, a dollar amount equal to the average of the annual property valuation
percentage increase for the three most recent years, multiplied by twenty-five
thousandths.
d.Grants may be distributed under this subdivision only if the grant distributions
under subsection 24 are completed. If the moneys in the fund are insufficient to
provide for the grants, the state treasurer shall distribute the grants under this
subsection on a pro rata basis. If any moneys remain in the fund after the
distribution of grants under this subsection, the state treasurer shall distribute any
remaining moneys in the fund in proportion to the combined total distributed to
each city under this section relative to the combined total distributed to all the
cities under this section.
e.For the purposes of determining the city's population under this subsection, the
state treasurer shall use the most recent actual or estimated census data
published by the United States census bureau.
Page No. 4 25.1104.02000
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f.For the purposes of determining taxable property values, the state treasurer shall
use the most recent data published by the tax commissioner in the tax levy
report.
4.6.For purposes of this section:
a."Essential infrastructure projects" means capital construction projects to construct
new infrastructure or to replace existing infrastructure, which provide the fixed
installations necessary for the function of a city. Capital construction projects
exclude debt repayments and routine maintenance and repair projects, but
include the following:
(1)Water treatment plants;
(2)Wastewater treatment plants;
(3)Sewer lines and water lines, including lift stations and pumping systems;
(4)Water storage systems, including dams, water tanks, and water towers;
(5)Storm water infrastructure, including curb and gutter construction;
(6)Road and bridge infrastructure, including paved and unpaved roads and
bridges;
(7)Airport infrastructure;
(8)Electricity transmission infrastructure;
(9)Natural gas transmission infrastructure; and
(10)Communications infrastructure, excluding fiber optic infrastructure.
b."Fiscal year" means the period beginning September first and ending August
thirty-first of the following calendar year.
c."Non-oil-producing county" means a county that received no allocation of funding
or a total allocation of less than five million dollars under subsection 2 of section
57-51-15 in the most recently completed even-numbered fiscal year before the
start of each biennium.
SECTION 3. AMENDMENT. Section 57-51.1-07.8 of the North Dakota Century Code is
amended and reenacted as follows:
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57-51.1-07.8. County and township infrastructure fund - Continuing appropriation -
State treasurer - Reports.
1.There is created in the state treasury the county and township infrastructure fund. The
fund consists of all moneys deposited in the fund under section 57-51.1-07.5. All
moneys in the fund are appropriated to the state treasurer on a continuing basis for
the purpose of providing grants to non-oil-producing counties and townships located in
non-oil-producing counties. The grant funding may be distributed only to
non-oil-producing counties and townships located in non-oil-producing counties and
may be used only for road and bridge infrastructure projects.
1.2.By November thirtieth of each even-numbered year, starting in 2022, a county that
receives a grant from the fund shall provide a report to the state treasurer on the use
of the funding. The state treasurer shall notify counties of the reporting requirement by
November first of each even-numbered year, starting in 2022. Upon request, the state
treasurer may provide an extension of up to fifteen days for a county to submit the
report. The state treasurer shall determine the format of the report. The report must
include the amount of grant funding received and spent by the county and a
description of the road and bridge infrastructure projects completed in part or in whole
with the grant funding. The state treasurer shall make the reports available to the
public on the state treasurer's website.
3.a.A county that does not provide the report in a timely manner or in the correct
format is not eligible to receive a grant from the fund for a period of two years
starting from the date the report was due.
b.If a county uses the funding in a manner inconsistent with the requirements of
this section as identified in any financial audits conducted by the state auditor or
an independent accounting firm, the state treasurer shall reduce any future
grants to that county by the amount spent that was inconsistent with the
requirements.
c.If a county or township adopts an ordinance or policy that exceeds state statute,
administrative rule, or policy or interferes, unreasonably restricts, or conflicts with
an agriculture or energy infrastructure project that is required to be permitted or
approved by a state agency, as reported under this subdivision, the county or
Page No. 6 25.1104.02000
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township is not eligible to receive any grants from the fund beginning on the date
on which the state treasurer is notified by the board of university and school
lands of a determination of a violation under this subdivision.
(1)For purposes of this subdivision, an agriculture or energy infrastructure
project includes a project permitted or approved under chapter 4.1 - 25,
23.1 - 06, 38 - 08, 38 - 22, 49 - 22, 49 - 22.1, or 61 - 28 or under administrative
rules related to the implementation of those chapters but excludes wind and
solar projects approved or permitted under chapter 49 - 22.
(2)A person may report a suspected violation under this subdivision to the
board of university and school lands in the form and manner prescribed by
the board. The report must include the name of the county or township, the
county's or township's ordinance or policy suspected of violating state
statute, administrative rule, or policy, and the state statute, administrative
rule, or policy which the person suspects is violated by the county's or
township's ordinance or policy. Within thirty days after receiving the report,
the board shall investigate the suspected violation, in consultation with any
state agency having jurisdiction over the relevant state statute,
administrative rule, or policy, and shall provide a written determination to the
person who submitted the report and to the county or township named in the
report. The board shall notify the state treasurer if the determination
identifies a violation. Any person aggrieved by the determination may appeal
the determination using the procedure under chapter 28 - 32.
2.4.Within sixty days after the fund receives its statutory limit of oil and gas tax allocations
under section 57-51.1-07.5 or by September thirtieth of each odd-numbered year,
whichever is earlier, the state treasurer shall distribute moneys in the fund as grants to
counties for road and bridge infrastructure projects. The state treasurer shall distribute
the grants only if the fund balance is at least ten percent of the amount needed for
distributions under this section.
3.5.The state treasurer shall distribute the lesser of thirteen percent of the balance of the
fund or sixteen million one hundred thousand dollars to non-oil-producing counties for
the benefit of the organized and unorganized townships within each non-oil-producing
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county. The distribution to each non-oil-producing county must provide for an equal
allocation to each organized and unorganized township. The amount allocated to
organized townships under this section must be paid by the county treasurer to each
organized township. The amount allocated to unorganized townships under this
section must be credited by the county treasurer to a special fund for unorganized
township roads. A township is not eligible for an allocation of funds under this section if
the township does not maintain any township roads.
4.6.After the distributions in subsection 35, the state treasurer shall distribute the
remaining money in the fund to non-oil-producing counties based on the most recent
data compiled by the upper great plains transportation institute regarding North
Dakota's county, township, and tribal road and bridge infrastructure needs. The
distribution to each non-oil-producing county must be proportional to each
non-oil-producing county's total estimated road and bridge investment needs relative
to the combined total estimated road and bridge investment needs of all the
non-oil-producing counties. The total estimated road and bridge investment needs for
each county is the twenty-year estimate for unpaved and paved road and bridge
needs as identified by the upper great plains transportation institute. If the data
compiled by the upper great plains transportation institute includes more than one
twenty-year estimate for the total needs of each county, the state treasurer shall use
an average of the twenty-year estimates for each county.
5.7.If the moneys in the fund are insufficient to provide for the grants under this section,
the state treasurer shall distribute the grants on a pro rata basis.
6.8.For purposes of this section:
a."Fiscal year" means the period beginning September first and ending August
thirty-first of the following calendar year.
b."Non-oil-producing county" means a county that received no allocation of funding
or a total allocation of less than five million dollars under subsection 2 of section
57-51-15 in the most recently completed even-numbered fiscal year before the
start of each biennium.
c."Road and bridge infrastructure projects" means the projects associated with the
construction of new unpaved and paved road and bridge infrastructure or
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associated with the maintenance, repair, or replacement of existing unpaved and
paved road and bridge infrastructure.
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