19.0560.02000
Sixty-sixth
Legislative Assembly HOUSE BILL NO. 1066
of North Dakota
Introduced by
Representatives Nathe, Owens, Porter, Howe, Vigesaa, Lefor, D. Ruby, Mock
Senators Wardner, Cook, Robinson, Bekkedahl
1 A BILL for an Act to create and enact a new section to chapter 2-05 and sections 57-51.1-07.7
2 and 57-51.1-07.8 of the North Dakota Century Code, relating to infrastructure funds; to amend
3 and reenact subsection 5 of section 57-51-01 and sections 57-51-15, 57-51.1-07.3, and
4 57-51.1-07.5 of the North Dakota Century Code, relating to oil and gas tax revenue allocations;
5 to provide a continuing appropriation; to provide for a report; and to provide an effective date.
6 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
7 SECTION 1. A new section to chapter 2-05 of the North Dakota Century Code is created
8 and enacted as follows:
9 Airport infrastructure fund.
10 There is created in the state treasury the airport infrastructure fund. The fund consists of all
11 moneys deposited in the fund pursuant to chapter 57-51.1. Moneys in the fund may be spent by
12 the aeronautics commission pursuant to legislative appropriations to provide grants to airports
13 for infrastructure projects. Grant funds must be distributed giving priority to projects that have
14 been awarded or are eligible to receive federal funding.
15 SECTION 2. AMENDMENT. Subsection 5 of section 57-51-01 of the North Dakota Century
16 Code is amended and reenacted as follows:
17 5. "Hub city" means a city with a population of twelve thousand five hundred or more,
18 according to the last official decennial federal census, which has more than two
19 percent of its private covered employment engaged in the mining industry, according
20 to annual data compiled by job service North Dakotais located in a county that has oil
21 and gas gross production tax or oil extraction tax revenue collections attributed to it, as
22 reported by the tax commissioner in certifications made to the state treasurer, in any
23 three consecutive months during the twenty-four month period preceding September
24 first of the most recent odd-numbered year.
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1 SECTION 3. AMENDMENT. Section 57-51-15 of the North Dakota Century Code is
2 amended and reenacted as follows:
3 57-51-15. Gross production tax allocation.
4 The gross production tax must be allocated monthly as follows:
5 1. The tax revenue collected under this chapter equal to one percent of the gross value
6 at the well of the oil and one-fifth of the tax on gas must be deposited with the state
7 treasurer. The state treasurer shall allocate the funding in the following order:
8 a. To each hub city, which is located in a county that received an allocation under
9 subsection 2 in the most recently completed even-numbered fiscal year, the state
10 treasurer shall allocate a monthly amount that will provide a total allocation of
11 three hundred seventy-five thousand dollars per fiscal year for each full or partial
12 percentage point, excluding the first two percentage points, of its private covered
13 employment engaged in the mining industry, according to annual data compiled
14 by job service North Dakota. For purposes of the allocations under this
15 subdivision during the period beginning September 1, 2017, and ending
16 August 31, 2018, the state treasurer shall use the following employment
17 percentages:
18 (1) Thirty-three percent for the city of Williston;
19 (2) Seventeen percent for the city of Dickinson; and
20 (3) Four percent for the city of Minot.
21 b. To each hub city, which is located in a county that did not receive an allocation
22 under subsection 2 in the most recently completed even-numbered fiscal year,
23 the state treasurer shall allocate a monthly amount that will provide a total
24 allocation of two hundred fifty thousand dollars per fiscal year for each full or
25 partial percentage point, excluding the first two percentage points, of its private
26 covered employment engaged in the mining industry, according to annual data
27 compiled by job service North Dakota.
28 c. To each hub city school district, which is located in a county that received an
29 allocation under subsection 2 in the most recently completed even-numbered
30 fiscal year, the state treasurer shall allocate a monthly amount that will provide a
31 total allocation of one hundred twenty-five thousand dollars per fiscal year for
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1 each full or partial percentage point, excluding the first two percentage points, of
2 the hub city's private covered employment engaged in the mining industry,
3 according to annual data compiled by job service North Dakota. Hub city school
4 districts, which are located in a county that did not receive an allocation under
5 subsection 2 in the most recently completed even-numbered fiscal year, must be
6 excluded from the allocations under this subdivision. For purposes of the
7 allocations under this subdivision during the period beginning September 1,
8 2017, and ending August 31, 2018, the state treasurer shall use the following
9 employment percentages:
10 (1) Thirty-three percent for the city of Williston;
11 (2) Seventeen percent for the city of Dickinson; and
12 (3) Four percent for the city of Minot.
13 d. To each county that received more than five million dollars but less than thirty
14 million dollars of total allocations under subsection 2 in the most recently
15 completed even-numbered fiscal year, the state treasurer shall allocate a monthly
16 amount that will be added to the allocations to school districts under subdivision b
17 of subsection 5, as follows:
18 (1) To each county that received more than five million dollars but not
19 exceeding ten million dollars of total allocations under subsection 2 in the
20 most recently completed even-numbered fiscal year, the state treasurer
21 shall allocate a monthly amount that will provide a total allocation of one
22 million five hundred thousand dollars per fiscal year. The allocation must be
23 distributed to school districts within the county pursuant to subdivision b of
24 subsection 5.
25 (2) To each county that received more than ten million dollars but not exceeding
26 fifteen million dollars of total allocations under subsection 2 in the most
27 recently completed even-numbered fiscal year, the state treasurer shall
28 allocate a monthly amount that will provide a total allocation of one million
29 two hundred fifty thousand dollars per fiscal year. The allocation must be
30 distributed to school districts within the county pursuant to subdivision b of
31 subsection 5.
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1 (3) To each county that received more than fifteen million dollars but not
2 exceeding twenty million dollars of total allocations under subsection 2 in
3 the most recently completed even-numbered fiscal year, the state treasurer
4 shall allocate a monthly amount that will provide a total allocation of one
5 million dollars per fiscal year. The allocation must be distributed to school
6 districts within the county pursuant to subdivision b of subsection 5.
7 (4) To each county that received more than twenty million dollars but not
8 exceeding twenty-five million dollars of total allocations under subsection 2
9 in the most recently completed even-numbered fiscal year, the state
10 treasurer shall allocate a monthly amount that will provide a total allocation
11 of seven hundred fifty thousand dollars per fiscal year. The allocation must
12 be distributed to school districts within the county pursuant to subdivision b
13 of subsection 5.
14 (5) To each county that received more than twenty-five million dollars but not
15 exceeding thirty million dollars of total allocations under subsection 2 in the
16 most recently completed even-numbered fiscal year, the state treasurer
17 shall allocate a monthly amount that will provide a total allocation of five
18 hundred thousand dollars per fiscal year. The allocation must be distributed
19 to school districts within the county pursuant to subdivision b of
20 subsection 5.
21 e. (1) For the period beginning September 1, 2017, and ending August 31, 2019,
22 the state treasurer shall allocate eight percent of the amount available under
23 this subsection to the North Dakota outdoor heritage fund, but not in an
24 amount exceeding ten million dollars per biennium. For purposes of this
25 paragraph, "biennium" means the period beginning September first of each
26 odd-numbered calendar year and ending August thirty-first of the following
27 odd-numbered calendar year.
28 (2) After August 31, 2019, the state treasurer shall allocate eight percent of the
29 amount available under this subsection to the North Dakota outdoor
30 heritage fund, but not in an amount exceeding twenty million dollars per
31 fiscal year.
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1 f. (1) For the period beginning September 1, 2017, and ending August 31, 2019,
2 the state treasurer shall allocate four percent of the amount available under
3 this subsection to the abandoned oil and gas well plugging and site
4 reclamation fund, but not in an amount exceeding four million dollars per
5 fiscal year and not in an amount that would bring the balance in the fund to
6 more than one hundred million dollars.
7 (2) After August 31, 2019, the state treasurer shall allocate four percent of the
8 amount available under this subsection to the abandoned oil and gas well
9 plugging and site reclamation fund, but not in an amount exceeding seven
10 million five hundred thousand dollars per fiscal year and not in an amount
11 that would bring the balance in the fund to more than one hundred million
12 dollars.
13 g. For the period beginning September 1, 2017, and ending August 31, 2019, the
14 state treasurer shall allocate the remaining revenues in the following order:
15 (1) Up to twenty-five million dollars to the oil and gas impact grant fund.
16 (2) Any remaining revenues under subsection 3.
17 h. After August 31, 2019, the state treasurer shall allocate the remaining revenues
18 in the following order:
19 (1) Up to five million dollars per biennium to the oil and gas impact grant fund.
20 For purposes of this paragraph, "biennium" means the period beginning
21 September first of each odd-numbered calendar year and ending
22 August thirty-first of the following odd-numbered calendar year.
23 (2) Any remaining revenues under subsection 3Eight percent of the amount
24 available under this subsection to the North Dakota outdoor heritage fund,
25 but not in an amount exceeding twenty million dollars per fiscal year.
26 b. Four percent of the amount available under this subsection to the abandoned oil
27 and gas well plugging and site reclamation fund, but not in an amount exceeding
28 seven million five hundred thousand dollars per fiscal year and not in an amount
29 that would bring the balance in the fund to more than one hundred million dollars.
30 c. Any remaining revenues pursuant to subsection 3.
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1 i.d. For purposes of this subsection, "fiscal year" means the period beginning
2 September first and ending August thirty-first of the following calendar year.
3 2. The tax revenue collected under this chapter equal to four percent of the gross value
4 at the well of the oil and four-fifths of the tax on gas must be deposited with the state
5 treasurer. The state treasurer shall allocate the funding in the following order:
6 a. During the period beginning September 1, 2017, and ending August 31, 2019, for
7 counties that received less than five million dollars of total allocations under this
8 subsection in the most recently completed even-numbered fiscal year, then after
9 deduction of the amount provided in subsection 1, the state treasurer shall
10 allocate revenue collected under this chapter from oil and gas produced in each
11 county as follows:
12 (1) The first five million dollars of collections received each fiscal year is
13 allocated to the county.
14 (2) The remaining revenue collections received each fiscal year are allocated
15 thirty percent to the county and seventy percent to the state for allocations
16 under subsection 3.
17 b. During the period beginning September 1, 2017, and ending August 31, 2019, for
18 counties that received five million dollars or more of total allocations under this
19 subsection in the most recently completed even-numbered fiscal year, then after
20 deduction of the amount provided in subsection 1, the state treasurer shall
21 allocate revenue collected under this chapter from oil and gas produced in each
22 county as follows:
23 (1) The first five million dollars of collections received each fiscal year is
24 allocated to the county. From the first five million dollars allocated to the
25 county, the state treasurer shall allocate an amount from each county to the
26 energy impact fund to provide a total allocation of two million per fiscal year
27 to the fund. The amount allocated from each county to the energy impact
28 fund under this paragraph must be proportional to the county's monthly oil
29 and gas gross production tax revenue collected relative to the total monthly
30 oil and gas gross production tax revenue collected from all the counties
31 under this subdivision. The state treasurer shall allocate the amount
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1 remaining from this paragraph to the county under subsection 5. For the
2 purposes of determining the counties that received five million dollars or
3 more of total allocations under this subsection in the most recently
4 completed even-numbered fiscal year under this section, any amounts
5 withheld from the county for allocations to the energy impact fund are
6 considered allocations to the county.
7 (2) The remaining revenue collections received each fiscal year are allocated
8 thirty percent to the county and seventy percent to the state for allocations
9 under subsection 3.
10 c. After deduction of the amount provided in subsection 1, annual revenue collected
11 under this chapter from oil and gas produced in each county must be allocated
12 after August 31, 2019, as follows:
13 (1) The first five million dollars is allocated to the county.
14 (2) Of all annual revenue exceeding five million dollars, thirty percent is
15 allocated to the countyThe first five million dollars of collections received
16 from a county each fiscal year is allocated to the county.
17 b. The remaining revenue collections received from a county each fiscal year are
18 a