North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2323 Compare Versions

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22 Sixty-ninth
33 Legislative Assembly
44 of North Dakota
55 Introduced by
66 Senators Bekkedahl, Sorvaag, Hogue
77 Representatives Lefor, Brandenburg, Richter
88 A BILL for an Act to create and enact a new section to chapter 57-51 of the North Dakota
99 Century Code, relating to an energy impact grant fund; to amend and reenact sections 57-51-15
1010 and 57-51.1-07.5 of the North Dakota Century Code, relating to oil and gas gross production tax
11-allocations and the state share of oil and gas tax allocations; to provide for a report; to provide a
12-continuing appropriation; to provide an exemption; to provide an effective date; and to provide
13-an expiration date.
11+allocations and the state share of oil and gas tax allocations; to provide a continuing
12+appropriation; to provide an exemption; to provide an effective date; and to provide an
13+expiration date.
1414 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
1515 SECTION 1. AMENDMENT. Section 57-51-15 of the North Dakota Century Code is
1616 amended and reenacted as follows:
17-57-51-15. Gross production tax allocation. (Effective through June 30, 20272029)
17+57-51-15. Gross production tax allocation. (Effective through June 30, 20272037)
1818 The gross production tax must be allocated monthly as follows:
1919 1.The tax revenue collected under this chapter equal to one percent of the gross value
2020 at the well of the oil and one-fifth of the tax on gas must be deposited with the state
2121 treasurer. The state treasurer shall allocate the funding in the following order:
2222 a.Eight percent of the amount available under this subsection to the North Dakota
2323 outdoor heritage fund, but not in an amount exceeding twenty million dollars per
2424 fiscal year.
2525 b.Four percent of the amount available under this subsection to the abandoned oil
2626 and gas well plugging and site reclamation fund, but not in an amount exceeding
2727 seven million five hundred thousand dollars per fiscal year and not in an amount
2828 that would bring the balance in the fund to more than one hundred million dollars
2929 through June 30, 2027, or to more than fifty million dollars after June 30, 2027 .
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3131 ENGROSSED SENATE BILL NO. 2323
3232 FIRST ENGROSSMENT
33-with House Amendments
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57-c.Up to twenty-five million dollars per fiscal year to the energy impact grant fund
58-under section 2 of this Act.
56+c.Up to twenty million dollars per fiscal year to the energy impact grant fund under
57+section 2 of this Act.
5958 d.Any remaining revenues pursuant to subsection 3.
6059 d.e.For purposes of this subsection, "fiscal year" means the period beginning
6160 September first and ending August thirty-first of the following calendar year.
6261 2.The tax revenue collected under this chapter equal to four percent of the gross value
6362 at the well of the oil and four-fifths of the tax on gas must be deposited with the state
6463 treasurer. The state treasurer shall allocate the funding in the following order:
6564 a.The first five million dollars of collections received from a county each fiscal year
6665 is allocated to the county.
6766 b.The remaining revenue collections received from a county each fiscal year are
6867 allocated thirty percent to the county and seventy percent as follows:
6968 (1)Monthly amounts to the hub city funding pool to provide fifteen million four
7069 hundred thousand dollars per fiscal year for the allocations under
7170 paragraph 2 of subdivision a of subsection 5.
7271 (2)Monthly amounts to the hub city school district funding pool to provide two
7372 million one hundred thousand dollars per fiscal year for the allocations
7473 under paragraph 3 of subdivision a of subsection 5.
7574 (3)Monthly amounts to the supplemental school district funding pool to provide
7675 seventy percent of the total amount needed for the allocations under
7776 paragraph 4 of subdivision a of subsection 5.
7877 (4)Any remaining revenue collections to the state for the state's allocations
7978 pursuant to subsection 3.
8079 c.For purposes of this subsection, "fiscal year" means the period beginning
8180 September first and ending August thirty-first of the following calendar year.
8281 3.After the allocations under subsections 1 and 2, the amount remaining is allocated first
8382 to provide for deposit of thirty percent of all revenue collected under this chapter in the
8483 legacy fund as provided in section 26 of article X of the Constitution of North Dakota
8584 and the remainder must be allocated to the state general fund. If the amount available
8685 for a monthly allocation under this subsection is insufficient to deposit thirty percent of
8786 all revenue collected under this chapter in the legacy fund, the state treasurer shall
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121120 transfer the amount of the shortfall from the state general fund share of oil extraction
122121 tax collections and deposit that amount in the legacy fund.
123122 4.For a county that received less than five million dollars of allocations under
124123 subsection 2 in the most recently completed even-numbered fiscal year before the
125124 start of the biennium, revenues allocated to that county must be distributed by the
126125 state treasurer as follows:
127126 a.Forty-five percent must be distributed to the county treasurer and credited to the
128127 county general fund.
129128 b.Thirty-five percent must be distributed proportionally to school districts within the
130129 county on the average daily attendance distribution basis for kindergarten
131130 through grade twelve students residing within the county, as certified to the state
132131 treasurer by the county superintendent of schools. However, a hub city school
133132 district must be omitted from distributions under this subdivision.
134133 c.Twenty percent must be distributed to the incorporated cities of the county. A hub
135134 city must be omitted from distributions under this subdivision. Distributions
136135 among cities under this subsection must be proportional based upon the
137136 population of each incorporated city according to the last official decennial federal
138137 census. In determining the population of any city in which total employment
139138 increases by more than two hundred percent seasonally due to tourism, the
140139 population of that city for purposes of this subdivision must be increased by eight
141140 hundred percent.
142141 d.For purposes of this subsection, "fiscal year" means the period beginning
143142 September first and ending August thirty-first of the following calendar year.
144143 5.For a county that received five million dollars or more of allocations under subsection 2
145144 in the most recently completed even-numbered fiscal year before the start of the
146145 biennium, revenues allocated to that county must be distributed by the state treasurer
147146 as follows:
148147 a.A portion of the revenues from each county must be distributed to a hub city
149148 funding pool, a hub city school district funding pool, and a supplemental school
150149 district funding pool as follows:
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183182 (1)The amount distributed from each county to the funding pools under this
184183 subdivision must be proportional to each county's monthly oil and gas gross
185184 production tax revenue collections relative to the combined total monthly oil
186185 and gas gross production tax revenue collections from all the counties that
187186 receive allocations under this subsection.
188187 (2)The state treasurer shall distribute, to the hub city funding pool, the monthly
189188 amount needed from each county to provide six million six hundred
190189 thousand dollars per fiscal year for the allocations under this paragraph.
191190 (a)The state treasurer shall allocate monthly amounts from the hub city
192191 funding pool to provide a combined total of twenty-two million dollars
193192 per fiscal year to all the hub cities, which includes the fifteen million
194193 four hundred thousand dollars under paragraph 1 of subdivision b of
195194 subsection 2 and the six million six hundred thousand dollars under
196195 this paragraph. The monthly allocation to each hub city must be
197196 proportional to each hub city's impact percentage score, including
198197 fractional percentage points rounded to the nearest tenth of a percent,
199198 relative to the combined total of all the hub cities' impact percentage
200199 scores.
201200 (b)The state treasurer shall calculate the impact percentage score for
202201 each hub city by summing the following:
203202 [1]The percentage of mining, quarrying, and oil and gas extraction
204203 employment relative to the total employment of all industries in
205204 the county in which the hub city is located, based on the most
206205 recent annual data for all ownership types compiled by job
207206 service North Dakota in the quarterly census of employment and
208207 wages, multiplied by forty-five hundredths;
209208 [2]The average of the percentage of mining, quarrying, and oil and
210209 gas extraction employment relative to the total employment of all
211210 industries in each county for all the counties in the human
212211 service region in which the hub city is located, based on the most
213212 recent annual data for all ownership types compiled by job
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245244 31 Sixty-ninth
246245 Legislative Assembly
247246 service North Dakota in the quarterly census of employment and
248247 wages, multiplied by fifteen hundredths;
249248 [3]The percentage of establishments engaged in mining, quarrying,
250249 and oil and gas extraction relative to the total establishments of
251250 all industries in the county in which the hub city is located, based
252251 on the most recent annual data for all ownership types complied
253252 by job service North Dakota in the quarterly census of
254253 employment and wages, multiplied by one-tenth;
255254 [4]The percentage of oil production in the human service region in
256255 which the hub city is located relative to the total oil production in
257256 all the human service regions with hub cities, based on the most
258257 recently available calendar year data compiled by the industrial
259258 commission in a report on the historical barrels of oil produced by
260259 county, multiplied by one-tenth;
261260 [5]The percentage change in population from five years prior for the
262261 hub city, based on the most recent actual or estimated census
263262 data published by the United States census bureau, multiplied by
264263 one-tenth; and
265264 [6]The percentage change in population from five years prior for the
266265 county in which the hub city is located, based on the most recent
267266 actual or estimated census data published by the United States
268267 census bureau, multiplied by one-tenth.
269268 (c)For purposes of this paragraph, "human service region" means the
270269 areas designated by the governor's executive order 1978-12 dated
271270 October 5, 1978.
272271 (3)The state treasurer shall distribute, to the hub city school district funding
273272 pool, the monthly amount needed from each county to provide nine hundred
274273 thousand dollars per fiscal year for the allocations under this paragraph.
275274 (a)The state treasurer shall allocate monthly amounts from the hub city
276275 school district funding pool to provide a combined total of three million
277276 dollars per fiscal year to all the hub city school districts, which
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309308 31 Sixty-ninth
310309 Legislative Assembly
311310 includes the two million one hundred thousand dollars under
312311 paragraph 2 of subdivision b of subsection 2 and the nine hundred
313312 thousand dollars under this paragraph. The monthly allocation to each
314313 hub city school districts must be proportional to each hub city school
315314 district's impact percentage score, including fractional percentage
316315 points rounded to the nearest tenth of a percent, relative to the
317316 combined total of all the hub cities' impact percentage scores.
318317 (b)For the purpose of determining the impact percentage score for each
319318 hub city school district, the state treasurer shall use the same impact
320319 percentage score as the corresponding score calculated for each hub
321320 city in paragraph 2.
322321 (4)The state treasurer shall distribute, to the supplemental school district
323322 funding pool, the monthly amount needed from each county to provide for
324323 thirty percent of the total allocations under this paragraph. To each county
325324 that received more than five million dollars but less than thirty million dollars
326325 of total allocations under subsection 2 in the most recently completed
327326 even-numbered fiscal year before the start of the biennium, the state
328327 treasurer shall allocate a monthly amount from the supplemental school
329328 district funding pool which will be added to the distributions to school
330329 districts under paragraph 2 of subdivision b, as follows:
331330 (a)To each county that received more than five million dollars but not
332331 exceeding ten million dollars of total allocations under subsection 2 in
333332 the most recently completed even-numbered fiscal year before the
334333 start of the biennium, the state treasurer shall allocate a monthly
335334 amount that will provide a total allocation of one million five hundred
336335 thousand dollars per fiscal year. The allocation must be distributed to
337336 school districts within the county pursuant to paragraph 2 of
338337 subdivision b.
339338 (b)To each county that received more than ten million dollars but not
340339 exceeding fifteen million dollars of total allocations under subsection 2
341340 in the most recently completed even-numbered fiscal year before the
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373372 31 Sixty-ninth
374373 Legislative Assembly
375374 start of the biennium, the state treasurer shall allocate a monthly
376375 amount that will provide a total allocation of one million two hundred
377376 fifty thousand dollars per fiscal year. The allocation must be distributed
378377 to school districts within the county pursuant to paragraph 2 of
379378 subdivision b.
380379 (c)To each county that received more than fifteen million dollars but not
381380 exceeding twenty million dollars of total allocations under subsection 2
382381 in the most recently completed even-numbered fiscal year before the
383382 start of the biennium, the state treasurer shall allocate a monthly
384383 amount that will provide a total allocation of one million dollars per
385384 fiscal year. The allocation must be distributed to school districts within
386385 the county pursuant to paragraph 2 of subdivision b.
387386 (d)To each county that received more than twenty million dollars but not
388387 exceeding twenty-five million dollars of total allocations under
389388 subsection 2 in the most recently completed even-numbered fiscal
390389 year before the start of the biennium, the state treasurer shall allocate
391390 a monthly amount that will provide a total allocation of seven hundred
392391 fifty thousand dollars per fiscal year. The allocation must be distributed
393392 to school districts within the county pursuant to paragraph 2 of
394393 subdivision b.
395394 (e)To each county that received more than twenty-five million dollars but
396395 not exceeding thirty million dollars of total allocations under
397396 subsection 2 in the most recently completed even-numbered fiscal
398397 year before the start of the biennium, the state treasurer shall allocate
399398 a monthly amount that will provide a total allocation of five hundred
400399 thousand dollars per fiscal year. The allocation must be distributed to
401400 school districts within the county pursuant to paragraph 2 of
402401 subdivision b.
403402 b.After the distributions in subdivision a, each county's remaining revenues must be
404403 distributed as follows:
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435434 30 Sixty-ninth
436435 Legislative Assembly
437436 (1)Sixty percent must be distributed to the county treasurer and credited to the
438437 county general fund.
439438 (2)Five percent must be distributed proportionally to school districts within the
440439 county on the average daily attendance distribution basis for kindergarten
441440 through grade twelve students residing within the county, as certified to the
442441 state treasurer by the county superintendent of schools. However, a hub city
443442 school district must be omitted from distributions under this subdivision.
444443 (3)Twenty percent must be distributed to the incorporated cities of the county. A
445444 hub city must be omitted from distributions under this subdivision.
446445 Distributions among cities under this subsection must be proportional based
447446 upon the population of each incorporated city according to the last official
448447 decennial federal census. In determining the population of any city in which
449448 total employment increases by more than two hundred percent seasonally
450449 due to tourism, the population of that city for purposes of this subdivision
451450 must be increased by eight hundred percent.
452451 (4)Four percent must be allocated among the organized and unorganized
453452 townships of the county. The state treasurer shall allocate the funds
454453 available under this subdivision among townships in proportion to each
455454 township's road miles relative to the total township road miles in the county.
456455 The amount allocated to unorganized townships under this subdivision must
457456 be distributed to the county treasurer and credited to a special fund for
458457 unorganized township roads, which the board of county commissioners shall
459458 use for the maintenance and improvement of roads in unorganized
460459 townships.
461460 (5)Nine percent must be distributed among hub cities. The state treasurer shall
462461 distribute the funds available under this subdivision in proportion to the
463462 amounts the hub cities receive under paragraph 2 of subdivision a.
464463 (6)Two percent must be distributed among hub city school districts. The state
465464 treasurer shall distribute the funds available under this subdivision in
466465 proportion to the amounts the hub city school districts receive under
467466 paragraph 3 of subdivision a.
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499498 31 Sixty-ninth
500499 Legislative Assembly
501500 (7)For purposes of this subsection, "fiscal year" means the period beginning
502501 September first and ending August thirty-first of the following calendar year.
503-Gross production tax allocation. (Effective after June 30, 20272029) The gross
502+Gross production tax allocation. (Effective after June 30, 20272037) The gross
504503 production tax must be allocated monthly as follows:
505504 1.The tax revenue collected under this chapter equal to one percent of the gross value
506505 at the well of the oil and one-fifth of the tax on gas must be deposited with the state
507506 treasurer. The state treasurer shall allocate the funding in the following order:
508507 a.Eight percent of the amount available under this subsection to the North Dakota
509508 outdoor heritage fund, but not in an amount exceeding twenty million dollars per
510509 fiscal year.
511510 b.Four percent of the amount available under this subsection to the abandoned oil
512511 and gas well plugging and site reclamation fund, but not in an amount exceeding
513512 seven million five hundred thousand dollars per fiscal year and not in an amount
514513 that would bring the balance in the fund to more than fifty million dollars.
515514 c.Any remaining revenues pursuant to subsection 3.
516515 d.For purposes of this subsection, "fiscal year" means the period beginning
517516 September first and ending August thirty-first of the following calendar year.
518517 2.The tax revenue collected under this chapter equal to four percent of the gross value
519518 at the well of the oil and four-fifths of the tax on gas must be deposited with the state
520519 treasurer. The state treasurer shall allocate the funding in the following order:
521520 a.The first five million dollars of collections received from a county each fiscal year
522521 is allocated to the county.
523522 b.The remaining revenue collections received from a county each fiscal year are
524523 allocated thirty percent to the county and seventy percent as follows:
525524 (1)Monthly amounts to the hub city funding pool to provide fifteen million four
526525 hundred thousand dollars per fiscal year for the allocations under
527526 paragraph 2 of subdivision a of subsection 5.
528527 (2)Monthly amounts to the hub city school district funding pool to provide two
529528 million one hundred thousand dollars per fiscal year for the allocations
530529 under paragraph 3 of subdivision a of subsection 5.
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562561 Legislative Assembly
563562 (3)Monthly amounts to the supplemental school district funding pool to provide
564563 seventy percent of the total amount needed for the allocations under
565564 paragraph 4 of subdivision a of subsection 5.
566565 (4)Any remaining revenue collections to the state for the state's allocations
567566 pursuant to subsection 3.
568567 c.For purposes of this subsection, "fiscal year" means the period beginning
569568 September first and ending August thirty-first of the following calendar year.
570569 3.After the allocations under subsections 1 and 2, the amount remaining is allocated first
571570 to provide for deposit of thirty percent of all revenue collected under this chapter in the
572571 legacy fund as provided in section 26 of article X of the Constitution of North Dakota
573572 and the remainder must be allocated to the state general fund. If the amount available
574573 for a monthly allocation under this subsection is insufficient to deposit thirty percent of
575574 all revenue collected under this chapter in the legacy fund, the state treasurer shall
576575 transfer the amount of the shortfall from the state general fund share of oil extraction
577576 tax collections and deposit that amount in the legacy fund.
578577 4.For a county that received less than five million dollars of allocations under
579578 subsection 2 in the most recently completed even-numbered fiscal year before the
580579 start of the biennium, revenues allocated to that county must be distributed by the
581580 state treasurer as follows:
582581 a.Forty-five percent must be distributed to the county treasurer and credited to the
583582 county general fund.
584583 b.Thirty-five percent must be distributed proportionally to school districts within the
585584 county on the average daily attendance distribution basis for kindergarten
586585 through grade twelve students residing within the county, as certified to the state
587586 treasurer by the county superintendent of schools. However, a hub city school
588587 district must be omitted from distributions under this subdivision.
589588 c.Twenty percent must be distributed to the incorporated cities of the county. A hub
590589 city must be omitted from distributions under this subdivision. Distributions
591590 among cities under this subsection must be proportional based upon the
592591 population of each incorporated city according to the last official decennial federal
593592 census. In determining the population of any city in which total employment
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626625 Legislative Assembly
627626 increases by more than two hundred percent seasonally due to tourism, the
628627 population of that city for purposes of this subdivision must be increased by eight
629628 hundred percent.
630629 d.For purposes of this subsection, "fiscal year" means the period beginning
631630 September first and ending August thirty-first of the following calendar year.
632631 5.For a county that received five million dollars or more of allocations under subsection 2
633632 in the most recently completed even-numbered fiscal year before the start of the
634633 biennium, revenues allocated to that county must be distributed by the state treasurer
635634 as follows:
636635 a.A portion of the revenues from each county must be distributed to a hub city
637636 funding pool, a hub city school district funding pool, and a supplemental school
638637 district funding pool as follows:
639638 (1)The amount distributed from each county to the funding pools under this
640639 subdivision must be proportional to each county's monthly oil and gas gross
641640 production tax revenue collections relative to the combined total monthly oil
642641 and gas gross production tax revenue collections from all the counties that
643642 receive allocations under this subsection.
644643 (2)The state treasurer shall distribute, to the hub city funding pool, the monthly
645644 amount needed from each county to provide six million six hundred
646645 thousand dollars per fiscal year for the allocations under this paragraph.
647646 (a)The state treasurer shall allocate monthly amounts from the hub city
648647 funding pool to provide a combined total of twenty-two million dollars
649648 per fiscal year to all the hub cities, which includes the fifteen million
650649 four hundred thousand dollars under paragraph 1 of subdivision b of
651650 subsection 2 and the six million six hundred thousand dollars under
652651 this paragraph. The monthly allocation to each hub city must be
653652 proportional to each hub city's impact percentage score, including
654653 fractional percentage points rounded to the nearest tenth of a percent,
655654 relative to the combined total of all the hub cities' impact percentage
656655 scores.
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687686 30 Sixty-ninth
688687 Legislative Assembly
689688 (b)The state treasurer shall calculate the impact percentage score for
690689 each hub city by summing the following:
691690 [1]The percentage of mining, quarrying, and oil and gas extraction
692691 employment relative to the total employment of all industries in
693692 the county in which the hub city is located, based on the most
694693 recent annual data for all ownership types compiled by job
695694 service North Dakota in the quarterly census of employment and
696695 wages, multiplied by forty-five hundredths;
697696 [2]The average of the percentage of mining, quarrying, and oil and
698697 gas extraction employment relative to the total employment of all
699698 industries in each county for all the counties in the human
700699 service region in which the hub city is located, based on the most
701700 recent annual data for all ownership types compiled by job
702701 service North Dakota in the quarterly census of employment and
703702 wages, multiplied by fifteen hundredths;
704703 [3]The percentage of establishments engaged in mining, quarrying,
705704 and oil and gas extraction relative to the total establishments of
706705 all industries in the county in which the hub city is located, based
707706 on the most recent annual data for all ownership types complied
708707 by job service North Dakota in the quarterly census of
709708 employment and wages, multiplied by one-tenth;
710709 [4]The percentage of oil production in the human service region in
711710 which the hub city is located relative to the total oil production in
712711 all the human service regions with hub cities, based on the most
713712 recently available calendar year data compiled by the industrial
714713 commission in a report on the historical barrels of oil produced by
715714 county, multiplied by one-tenth;
716715 [5]The percentage change in population from five years prior for the
717716 hub city, based on the most recent actual or estimated census
718717 data published by the United States census bureau, multiplied by
719718 one-tenth; and
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751750 31 Sixty-ninth
752751 Legislative Assembly
753752 [6]The percentage change in population from five years prior for the
754753 county in which the hub city is located, based on the most recent
755754 actual or estimated census data published by the United States
756755 census bureau, multiplied by one-tenth.
757756 (c)For purposes of this paragraph, "human service region" means the
758757 areas designated by the governor's executive order 1978-12 dated
759758 October 5, 1978.
760759 (3)The state treasurer shall distribute, to the hub city school district funding
761760 pool, the monthly amount needed from each county to provide nine hundred
762761 thousand dollars per fiscal year for the allocations under this paragraph.
763762 (a)The state treasurer shall allocate monthly amounts from the hub city
764763 school district funding pool to provide a combined total of three million
765764 dollars per fiscal year to all the hub city school districts, which
766765 includes the two million one hundred thousand dollars under
767766 paragraph 2 of subdivision b of subsection 2 and the nine hundred
768767 thousand dollars under this paragraph. The monthly allocation to each
769768 hub city school districts must be proportional to each hub city school
770769 district's impact percentage score, including fractional percentage
771770 points rounded to the nearest tenth of a percent, relative to the
772771 combined total of all the hub cities' impact percentage scores.
773772 (b)For the purpose of determining the impact percentage score for each
774773 hub city school district, the state treasurer shall use the same impact
775774 percentage score as the corresponding score calculated for each hub
776775 city in paragraph 2.
777776 (4)The state treasurer shall distribute, to the supplemental school district
778777 funding pool, the monthly amount needed from each county to provide for
779778 thirty percent of the total allocations under this paragraph. To each county
780779 that received more than five million dollars but less than thirty million dollars
781780 of total allocations under subsection 2 in the most recently completed
782781 even-numbered fiscal year before the start of the biennium, the state
783782 treasurer shall allocate a monthly amount from the supplemental school
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815814 31 Sixty-ninth
816815 Legislative Assembly
817816 district funding pool which will be added to the distributions to school
818817 districts under paragraph 2 of subdivision b, as follows:
819818 (a)To each county that received more than five million dollars but not
820819 exceeding ten million dollars of total allocations under subsection 2 in
821820 the most recently completed even-numbered fiscal year before the
822821 start of the biennium, the state treasurer shall allocate a monthly
823822 amount that will provide a total allocation of one million five hundred
824823 thousand dollars per fiscal year. The allocation must be distributed to
825824 school districts within the county pursuant to paragraph 2 of
826825 subdivision b.
827826 (b)To each county that received more than ten million dollars but not
828827 exceeding fifteen million dollars of total allocations under subsection 2
829828 in the most recently completed even-numbered fiscal year before the
830829 start of the biennium, the state treasurer shall allocate a monthly
831830 amount that will provide a total allocation of one million two hundred
832831 fifty thousand dollars per fiscal year. The allocation must be distributed
833832 to school districts within the county pursuant to paragraph 2 of
834833 subdivision b.
835834 (c)To each county that received more than fifteen million dollars but not
836835 exceeding twenty million dollars of total allocations under subsection 2
837836 in the most recently completed even-numbered fiscal year before the
838837 start of the biennium, the state treasurer shall allocate a monthly
839838 amount that will provide a total allocation of one million dollars per
840839 fiscal year. The allocation must be distributed to school districts within
841840 the county pursuant to paragraph 2 of subdivision b.
842841 (d)To each county that received more than twenty million dollars but not
843842 exceeding twenty-five million dollars of total allocations under
844843 subsection 2 in the most recently completed even-numbered fiscal
845844 year before the start of the biennium, the state treasurer shall allocate
846845 a monthly amount that will provide a total allocation of seven hundred
847846 fifty thousand dollars per fiscal year. The allocation must be distributed
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879878 31 Sixty-ninth
880879 Legislative Assembly
881880 to school districts within the county pursuant to paragraph 2 of
882881 subdivision b.
883882 (e)To each county that received more than twenty-five million dollars but
884883 not exceeding thirty million dollars of total allocations under
885884 subsection 2 in the most recently completed even-numbered fiscal
886885 year before the start of the biennium, the state treasurer shall allocate
887886 a monthly amount that will provide a total allocation of five hundred
888887 thousand dollars per fiscal year. The allocation must be distributed to
889888 school districts within the county pursuant to paragraph 2 of
890889 subdivision b.
891890 b.After the distributions in subdivision a, each county's remaining revenues must be
892891 distributed as follows:
893892 (1)Sixty percent must be distributed to the county treasurer and credited to the
894893 county general fund.
895894 (2)Five percent must be distributed proportionally to school districts within the
896895 county on the average daily attendance distribution basis for kindergarten
897896 through grade twelve students residing within the county, as certified to the
898897 state treasurer by the county superintendent of schools. However, a hub city
899898 school district must be omitted from distributions under this subdivision.
900899 (3)Twenty percent must be distributed to the incorporated cities of the county. A
901900 hub city must be omitted from distributions under this subdivision.
902901 Distributions among cities under this subsection must be proportional based
903902 upon the population of each incorporated city according to the last official
904903 decennial federal census. In determining the population of any city in which
905904 total employment increases by more than two hundred percent seasonally
906905 due to tourism, the population of that city for purposes of this subdivision
907906 must be increased by eight hundred percent.
908907 (4)Four percent must be allocated among the organized and unorganized
909908 townships of the county. The state treasurer shall allocate the funds
910909 available under this subdivision among townships in proportion to each
911910 township's road miles relative to the total township road miles in the county.
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943942 31 Sixty-ninth
944943 Legislative Assembly
945944 The amount allocated to unorganized townships under this subdivision must
946945 be distributed to the county treasurer and credited to a special fund for
947946 unorganized township roads, which the board of county commissioners shall
948947 use for the maintenance and improvement of roads in unorganized
949948 townships.
950949 (5)Nine percent must be distributed among hub cities. The state treasurer shall
951950 distribute the funds available under this subdivision in proportion to the
952951 amounts the hub cities receive under paragraph 2 of subdivision a.
953952 (6)Two percent must be distributed among hub city school districts. The state
954953 treasurer shall distribute the funds available under this subdivision in
955954 proportion to the amounts the hub city school districts receive under
956955 paragraph 3 of subdivision a.
957956 (7)For purposes of this subsection, "fiscal year" means the period beginning
958957 September first and ending August thirty-first of the following calendar year.
959958 SECTION 2. A new section to chapter 57-51 of the North Dakota Century Code is created
960959 and enacted as follows:
961-Energy impact grant fund - State treasurer - Continuing appropriation - Report.
960+Energy impact grant fund - State treasurer - Continuing appropriation.
962961 1.There is created in the state treasury the energy impact grant fund. The fund consists
963962 of all moneys allocated to the fund under section 57 - 51 - 15. All moneys in the fund are
964963 appropriated to the state treasurer on a continuing basis for energy impact grants to
965964 hub cities.
966965 2.Within forty days after the fund receives its statutory limit of oil and gas tax allocations
967966 for a fiscal year under section 57 - 51 - 15 or by August thirty-first of each year,
968967 whichever is earlier, the state treasurer shall distribute moneys in the fund for grants to
969968 hub cities as follows:
970-a.Seventy and thirteen hundredths percent of the amount under this subsection to
971-Williston;
972-b.Nineteen and ninety-four hundredths percent of the amount under this subsection
973-to Dickinson; and
974-c.Nine and ninety-three hundredths percent of the amount under this subsection to
969+a.Seventy-three and eighty-eight hundredths percent of the amount under this
970+subsection to Williston;
971+b.Fifteen and sixty-six hundredths percent of the amount under this subsection to
972+Dickinson; and
973+c.Ten and forty-six hundredths percent of the amount under this subsection to
975974 Minot.
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10071006 31 Sixty-ninth
10081007 Legislative Assembly
10091008 3.A hub city shall use the grant funding provided under this section for debt repayments
1010-related to debt incurred between July 1, 2012, and December 31, 2024, to address
1011-impacts from oil and gas development .
1012-4.At least once per interim, each hub city shall provide a report to the budget section
1013-regarding the use of the funding received under this section and information on the
1014-hub city's outstanding debt, including maturity dates, interest rates, and annual
1015-repayment amounts.
1009+related to debt incurred to address impacts from oil and gas development or for other
1010+expenses incurred to address impacts from oil and gas development.
10161011 SECTION 3. AMENDMENT. Section 57-51.1-07.5 of the North Dakota Century Code is
10171012 amended and reenacted as follows:
10181013 57-51.1-07.5. State share of oil and gas taxes - Deposits.
10191014 From the revenues designated for deposit in the state general fund under chapters 57-51
10201015 and 57-51.1, the state treasurer shall deposit the revenues received each biennium in the
10211016 following order:
10221017 1.The first two hundred thirty milliontwo hundred fifty million dollars into the state general
10231018 fund;
10241019 2.The next two hundred fifty million dollars into the social service fund;
10251020 3.The next seventy-five million dollars into the budget stabilization fund, but not in an
10261021 amount that would bring the balance in the fund to more than the limit in section
10271022 54-27.2-01;
10281023 4.The next two hundred thirty milliontwo hundred fifty million dollars into the state
10291024 general fund;
10301025 5.The next ten million dollars into the lignite research fund;
10311026 6.The next twenty million dollars into the state disaster relief fund, but not in an amount
10321027 that would bring the unobligated balance in the fund to more than twenty million
10331028 dollars;
1034-7.The next four hundred millionthree hundred ten million dollars into the strategic
1029+7.The next four hundred millionthree hundred twenty million dollars into the strategic
10351030 investment and improvements fund;
10361031 8.The next sixty-five million dollars to the public employees retirement fund for the main
10371032 system plan;
10381033 9.The next fifty-nine million seven hundred fifty thousand dollars, or the amount
10391034 necessary to provide for twice the amount of the distributions under subsection 2 of
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1035+section 57-51.1-07.7, into the funds designated for infrastructure development in
1036+non-oil-producing counties under sections 57-51.1-07.7 and 57-51.1-07.8 with fifty
1037+percent deposited into the municipal infrastructure fund and fifty percent deposited into
1038+the county and township infrastructure fund;
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10711070 31 Sixty-ninth
10721071 Legislative Assembly
1073-section 57-51.1-07.7, into the funds designated for infrastructure development in
1074-non-oil-producing counties under sections 57-51.1-07.7 and 57-51.1-07.8 with fifty
1075-percent deposited into the municipal infrastructure fund and fifty percent deposited into
1076-the county and township infrastructure fund;
10771072 10.The next one hundred seventy million two hundred fifty thousand dollars or the amount
10781073 necessary to provide a total of two hundred thirty million dollars into the funds
10791074 designated for infrastructure development in non-oil-producing counties under sections
10801075 57-51.1-07.7 and 57-51.1-07.8 with fifty percent deposited into the municipal
10811076 infrastructure fund and fifty percent deposited into the county and township
10821077 infrastructure fund;
10831078 11.The next twenty million dollars into the airport infrastructure fund; and
10841079 12.Any additional revenues into the strategic investment and improvements fund.
10851080 SECTION 4. EXEMPTION - OIL AND GAS TAX REVENUE ALLOCATIONS - NORTH
10861081 DAKOTA OUTDOOR HERITAGE FUND - OIL AND GAS RESEARCH FUND.
10871082 1.Notwithstanding the provisions of section 57-51-15 relating to the allocations to the
10881083 North Dakota outdoor heritage fund, for the period beginning September 1, 2025, and
10891084 ending August 31, 2027, the state treasurer shall allocate eight percent of the oil and
10901085 gas gross production tax revenue available under subsection 1 of section 57-51-15 to
10911086 the North Dakota outdoor heritage fund, but not in an amount exceeding $7,500,000
10921087 per fiscal year.
10931088 2.Notwithstanding the provisions of section 57-51.1-07.3 relating to the allocations to the
10941089 oil and gas research fund, for the period beginning August 1, 2025, and ending
10951090 July 31, 2027, the state treasurer shall allocate two percent of the oil and gas gross
10961091 production tax and oil extraction tax revenues, up to $17,500,000, into the oil and gas
10971092 research fund before allocating oil and gas tax revenues under sections 57-51.1-07.5,
10981093 57-51.1-07.9, and 57-51.1-07.10.
10991094 SECTION 5. EFFECTIVE DATE. Section 1 of this Act is effective for oil and gas gross
11001095 production tax allocations by the state treasurer occurring after August 31, 2025.
1101-SECTION 6. EXPIRATION DATE. Section 2 of this Act is effective through June 30, 2029,
1102-and after that date is ineffective.
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