Bill Summary – FastDemocracy

0695.01000
     Sixty-eighth
     Legislative Assembly                     HOUSE BILL NO. 1379
     of North Dakota
     Introduced by
       Representatives Lefor, Bosch, Dockter, Headland, Nathe, Novak, O'Brien
       Senators Bekkedahl, Hogue, Rummel, Sorvaag
  A BILL for an Act to create and enact a new section to chapter 4.1-01, a new section to chapter
  6-09, a new section to chapter 15-20.1, two new sections to chapter 21-10, and a new section
  to chapter 54-27 of the North Dakota Century Code, relating to an agriculture infrastructure
  fund, an economic diversification research fund, a workforce development and enrichment fund,
  a legacy projects fund, a legacy projects advisory board, and a county and township bridge
  fund; to amend and reenact sections 6-09.4-10.1 and 21-10-13 of the North Dakota Century
  Code, relating to the legacy sinking and interest fund and the legacy earnings fund; to provide a
  report; to provide an appropriation; to provide a contingent appropriation; and to provide an
  effective date.
 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
     SECTION 1. A new section to chapter 4.1-01 of the North Dakota Century Code is created
 and enacted as follows:
     Agriculture infrastructure fund.
     1.    There is created in the state treasury the agriculture infrastructure fund. Pursuant to
           legislative appropriations, moneys in the fund are available to the commissioner for
           grants to political subdivisions for infrastructure improvements necessary for the
           development or enhancement of new or existing value-added agriculture businesses
           or for grants to an individual or organization for capital improvements to develop or
           enhance new or existing value-added agriculture businesses.
     2.    The commissioner shall develop policies to administer the grants, including a grant
           application process and eligibility criteria. Grants to political subdivisions are limited to
           two million five hundred thousand dollars per project and may not exceed eighty
           percent of the infrastructure project cost. Grants to individuals or organizations are
           limited to five hundred thousand dollars per project and may not exceed eighty percent
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           of the capital improvement project costs. Eligible uses of grant funding include road
           and bridge improvements, water and sewer line improvements, and electrical and gas
           supply improvements. Grant funding may not be used for routine maintenance or
           operating costs. For purposes of grant eligibility, value-added agriculture businesses
           includes the same businesses as provided under section 4.1-01.1-07.
     SECTION 2. A new section to chapter 6-09 of the North Dakota Century Code is created
  and enacted as follows:
     Economic diversification research fund - Economic diversification research
  committee - Legislative management report.
     1.   There is created in the state treasury the economic diversification research fund. The
          fund consists of all moneys deposited in the fund under section 21-10-13. Moneys in
          the fund may be spent by the Bank of North Dakota pursuant to legislative
          appropriations to provide grants to institutions under the control of the state board of
          higher education for economic diversification research.
     2.   The economic diversification research committee consists of:
          a.   The president of the Bank of North Dakota, as chairman;
          b.   Four members with experience in research, appointed by the president of the
               Bank of North Dakota;
          c.   The state commissioner of higher education, or a designee; and
          d.   The president of North Dakota state university and the president of the university
               of North Dakota.
     3.   In consultation with representatives of North Dakota state university and the university
          of North Dakota, the committee shall award grants to institutions under the control of
          the state board of higher education. Up to ninety percent of the funding must be
          awarded to North Dakota state university and the university of North Dakota with equal
          amounts awarded to each institution. The remaining funding must be awarded to the
          other institutions under the control of the state board of higher education, as
          determined by the committee. The committee may not award more than fifty percent of
          the available funding during the first year of the biennium. The Bank of North Dakota
          shall distribute the grant funding as awarded by the committee.
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      4.   The committee shall develop guidelines for the economic diversification research
           grants. The purpose of the grants is to stimulate economic activity across the state
           through innovation of new technology, concepts, and products; to promote job creation
           and career and wage growth; to enhance health care outcomes; to address loss of
           revenue and jobs in communities with economies that depend primarily on the fossil
           fuel industry; and to provide experiential learning opportunities for students. Research
           projects may be initiated by an institution under the control of the state board of higher
           education or by the private sector. The guidelines must include consideration for
           research projects with matching funds and provisions for grant oversight by an internal
          advisory committee and an external advisory committee.
     5.   The committee shall develop reporting requirements for the institutions under the
          control of the state board of higher education. The reporting requirements must
          include criteria for assessing performance outcomes related to the grants. The
          committee shall compile the reports and submit a comprehensive report annually to
          the legislative management. The comprehensive report must include information on
          how the research efforts by each institution align with the state's priorities, how the
          institutions collaborate when appropriate, and how the outcomes of the research meet
          established performance expectations.
     SECTION 3. 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 21-10-13. 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. Any moneys in the fund in
 excess of the amounts appropriated from the fund to meet the debt service requirements for a
 biennium must be transferred by the state treasurer to the public employees retirement system
 main system plan under chapter 54-52, but only if the public employees retirement system main
 system plan's actuarial funded ratio as reported for the most recently completed even-
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  numbered fiscal year is less than ninety percent. If the public employees retirement system
  main system plan's actuarial funded ratio is ninety percent or more and then subsequently
  decreases below ninety percent, the state treasurer may not resume the transfers under this
  subdivision unless the main system plan's actuarial funded ratio is less than seventy percent.
      SECTION 4. A new section to chapter 15-20.1 of the North Dakota Century Code is created
  and enacted as follows:
      Workforce development and enrichment fund.
      1.   There is created in the state treasury the workforce development and enrichment fund.
           The fund consists of all moneys deposited in the fund under section 21-10-13. Moneys
          in the fund may be spent pursuant to legislative appropriations to provide grants to
          support:
          a.   Strategic workforce development;
          b.   Technical education;
          c.   Workforce diversification initiatives; and
          d.   Workforce guidance and support.
     2.   Grant funding may be awarded only for one-time projects and initiatives.
     3.   Grants awarded for capital projects must have a matching requirement.
     4.   Thirty percent of the moneys in the fund must be designated to support workforce
          initiatives in cities located in oil-producing counties that receive five million dollars or
          more of allocations per fiscal year under subsection 2 of section 57-51-15 with priority
          given to cities that have:
          a.   The highest percent of mining, quarrying, and oil and gas extraction employment
               relative to the total employment of all industries in the city;
          b.   The highest number of employees in the mining, quarrying, and oil and gas
               extraction sector relative to the other cities located in oil-producing counties that
               receive five million dollars or more of allocations per fiscal year under
               subsection 2 of section 57-51-15; and
          c.   The highest total taxable sales and purchases relative to the total taxable sales
               and purchases of all the cities located in oil-producing counties that receive five
               million dollars or more of allocations per fiscal year under subsection 2 of section
               57-51-15.
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     SECTION 5. AMENDMENT. Section 21-10-13 of the North Dakota Century Code is
  amended and reenacted as follows:
     21-10-13. Legacy earnings fund - State treasurer - Transfers.
      1.   There is created in the state treasury the legacy earnings fund. The fund consists of all
           moneys transferred to the fund under subsection 2 and all interest and earnings upon
           moneys in the fund.
      2.   Any legacy fund earnings transferred to the general fund at the end of each biennium
           in accordance with section 26 of article X of the Constitution of North Dakota must be
           immediately transferred by the state treasurer to the legacy earnings fund.
     3.   For each biennium subsequent to the biennium in which the legacy fund earnings are
          transferred under subsection 2, the amount available for appropriation from the legacy
          earnings fund is seven percent of the five-year average value of the legacy fund
          assets as reported by the state investment board. The average value of the legacy
          fund assets must be calculated using the value of the assets at the end of each fiscal
          year for the five-year period ending with the most recently completed even-numbered
          fiscal year.
     4.   On July first of each odd-numbered year, from the amount available for appropriation
          or transfer from the legacy earnings fund for the biennium, the state treasurer shall
          transfer funding in the following order:
          a.   The first one hundred fifty million dollars to the legacy sinking and interest fund
               under section 6-09.4-10.1.
          b.   The next sixty million dollars to the highway tax distribution fund for allocations
               under section 54-27-19.
          c.   Any remaining funds for other purposes as designated by the legislative
               assembly, including:
               (1)   Up to fifty million dollars for tax relief pursuant to appropriations or transfers
                     authorized by the legislative assembly;
               (2)   Up to thirty million dollars to the clean sustainable energy fund pursuant to
                     appropriations or transfers authorized by the legislative assembly; and
               (3)   Up to thirty million dollars for university research programs, the innovation
                     loan fund to support technology advancement, and workforce enrichment
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                     initiatives pursuant to appropriations or transfers authorized by the
                     legislative assemblyThe next two hundred million dollars for tax relief
                     pursuant to appropriations or transfers authorized by the legislative
                     assembly.
           d.   The next thirty million dollars to the clean sustainable energy fund under section
                54-63.1-07.
           e.   The next ten million dollars to the economic diversification research fund under
                section 2 of this Act.
           f.   The next ten million dollars to the innovation loan fund to support technology
               advancement under section 6-09.18-05.
          g.   The next ten million dollars to the workforce development and enrichment fund
               under section 4 of this Act.
          h.   The next sixteen million six hundred thousand dollars to the legacy projects fund
               under section 7 of this Act.
     5.   If the amounts transferred under subsection 2 exceed the amount available for
          appropriation under subsection 3, an amount equal to any appropriations from the
          legacy sinking and interest fund for bond payments under section 6-09.4-10.1 must be
          retained in the legacy earnings fund through June 30, 2025, after which an amount
          equal to twice any appropriations from the legacy sinking and interest fund under
          section 6-09.4-10.1 for bond payments, but not more than one hundred fifty million
          dollars, must be retained in the legacy earnings fund. After deducting any amounts to
          be retained in the legacy earnings fund, the state treasurer shall transfer, within thirty
          days, any remaining amounts under this subsection in the following order the state
          treasurer shall transfer the excess and any remaining amounts after the transfers and
          appropriations under subsection 4, in the following order:
          a.   The first one hundred million dollars to the legacy fund to become part of the
               principalseventy-three million four hundred thousand dollars to the legacy
               projects fund under section 7 of this Act.
          b.   The next one hundred million dollars the county and township bridge fund under
               section 8 of this Act.
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           c.   The next fifteen million dollars to the agriculture infrastructure fund under
                section 1 of this Act.
           d.   The next fifteen million dollars to the bioscience innovation grant program under
                section 4.1-01-20.1.
           e.   Any remaining amount to the strategic investment and improvements fund to be
                used in accordance with the provisions of section 15-08.1-08.
     SECTION 6. AMENDMENT. Section 21-10-13 of the North Dakota Century Code is
  amended and reenacted as follows:
     21-10-13. Legacy earnings fund - State treasurer - Transfers.
     1.   There is created in the state treasury the legacy earnings fund. The fund consists of all
          moneys transferred to the fund under subsection 2 and all interest and earnings upon
          moneys in the fund.
     2.   Any legacy fund earnings transferred to the general fund at the end of each biennium
          in accordance with section 26 of article X of the Constitution of North Dakota must be
          immediately transferred by the state treasurer to the legacy earnings fund.
     3.   For each biennium subsequent to the biennium in which the legacy fund earnings are
          transferred under subsection 2, the amount available for appropriation from the legacy
          earnings fund is seven percent of the five-year average value of the legacy fund
          assets as reported by the state investment board. The average value of the legacy
          fund assets must be calculated using the value of the assets at the end of each fiscal
          year for the five-year period ending with the most recently completed even-numbered
          fiscal year.
     4.   On July first of each odd-numbered year, from the amount available for appropriation
          or transfer from the legacy earnings fund for the biennium, the state treasurer shall
          transfer funding in the following order:
          a.   The first one hundred fiftytwo million six hundred twenty thousand four hundred
               sixty-one dollars to the legacy sinking and interest fund under section
               6-09.4-10.1.
          b.   The next seventy million dollars to the public employees retirement system main
               system plan under chapter 54-52, but only if the public empl