25.1346.01000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Senators Bekkedahl, Hogue, Patten, Rummel
Representatives Lefor, Vigesaa
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 section 6-09.4-10.1,
subsection 1 of section 21-10-06, and section 54-27-19.3 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. Section 6-09.4-10.1 of the North Dakota Century Code is
amended and reenacted as follows:
6-09.4-10.1. Legacy sinking and interest fund - Debt service requirements - Public
finance authority.
There is created in the state treasury the legacy sinking and interest fund. The fund consists
of all moneys deposited in the fund under section 21-10-133 of this Act. Moneys in the fund may
be spent by the public finance authority pursuant to legislative appropriations to meet the debt
service requirements for evidences of indebtedness issued by the authority for transfer to the
Bank of North Dakota for allocations to infrastructure projects and programs.
SECTION 2. 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.
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SENATE BILL NO. 2372
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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.
n.Legacy earnings fund.
o.Opioid settlement fund.
p.o.A fund under contract with the board pursuant to subsection 3.
SECTION 3. 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 eight 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 seven-eighths of the 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.
Page No. 2 25.1346.01000
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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.
3.From the amount distributed to the legacy earnings fund under subsection 1, the state
treasurer shall allocate the remaining one-eighth of the funding in July of each
odd - numbered year to the legacy earnings highway distribution fund for allocations
under section 54 - 27 - 19.3.
SECTION 4. AMENDMENT. Section 54-27-19.3 of the North Dakota Century Code is
amended and reenacted as follows:
54-27-19.3. Legacy earnings highway distribution fund.
A legacy earnings highway distribution fund is created as a special fund in the state treasury
into which must be deposited any allocations of legacy fund earnings made under section
21-10-133 of this Act. Any moneys in the legacy earnings highway distribution fund must be
allocated and transferred by the state treasurer, as follows:
1.Sixty percent must be transferred to the department of transportation for deposit in the
state highway fund;
2.Ten percent must be transferred to the legacy earnings township highway aid fund;
3.One and five-tenths percent must be transferred to the public transportation fund; and
4.Twenty-eight and five-tenths percent must be allocated to cities and counties using the
formula established in subsection 4 of section 54-27-19. Moneys received by counties
and cities must be used for roadway purposes in accordance with section 11 of
article X of the Constitution of North Dakota.
SECTION 5. REPEAL. Sections 21-10-12 and 21-10-13 of the North Dakota Century Code
are repealed.
SECTION 6. EFFECTIVE DATE. This Act becomes effective on July 1, 2025.
SECTION 7. EMERGENCY. This Act is declared to be an emergency measure.
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