SB 2142 — Relating to motor vehicle excise tax allocations; and to provide an effective date.

25.0818.0100125.0818.02000 Prepared by the Legislative Council Title.02000 staff for Senator Rummel February 5, 2025 Sixty-ninth Legislative Assembly of North Dakota PROPOSEDFIRST AMENDMENTSENGROSSMENT TOENGROSSED SENATE BILL NO.

2142 Introduced by Senators Wanzek, Thomas, Weber Representatives Brandenburg, Headland, Schreiber-Beck A BILL for an Act to createamend and enactreenact a new section to57-40.3-10 chapter 54-27 of the North Dakota Century Code, relating to amotor townshipvehicle roadexcise andtax bridgeallocations; sustainability fund;

to amend and reenact section 57-40.3-10 of the North Dakota Century Code, relating to motor vehicle excise tax allocations;

to provide a continuing appropriation;

A new section to chapter 54-27 of the North Dakota Century Code is created and enacted as follows:

Township road and bridge sustainability fund - State treasurer - Continuing appropriation.

1.

There is created a township road and bridge sustainability fund in the state treasury.

The fund consists of all revenue deposited in the fund under section 57-40.3-10.

All moneys in the fund are appropriated to the state treasurer on a continuing basis for allocations to townships located in non-oil-producing counties for road and bridge infrastructure projects under this section.

2.

To be eligible for an allocation under this section:

a.

An organized township located in a non-oil-producing county shall submit an annual certification to the state treasurer in the form and manner prescribed by the state treasurer regarding the number of township road miles in the township as of December thirty-first of the prior year, the balance of the township's general Page No.

1 25.0818.01001 Sixty-ninth Legislative Assembly fund as of December thirty-first of the prior year, and the total number of mills levied by the township under section 57-15-20 in the prior taxable year.

b.

A non-oil-producing county with unorganized townships shall submit an annual certification to the state treasurer in the form and manner prescribed by the state treasurer regarding the number of township road miles in all the unorganized townships within the county as of December thirty-first of the prior year.

3.

At least quarterly, the state treasurer shall distribute the moneys in the fund to non-oil-producing counties for the benefit of eligible organized and unorganized townships located within each non-oil-producing county for road and bridge infrastructure projects.

a.

The distribution to each non-oil-producing county is the sum of the allocations for each eligible organized or unorganized township within the county.

b.

The allocation to each eligible organized or unorganized township located in a non-oil-producing county must be proportional to the township's road miles relative to the total township road miles of all the eligible townships.

When processing the allocations during each fiscal year, the state treasurer shall exclude the following from the allocation:

(1) An organized township that did not maintain any township roads as of December thirty-first of the prior year, had a general fund balance exceeding one hundred thousand dollars as of December thirty-first of the prior year, was not levying at least eighteen mills under section 57-15-20 in the prior taxable year, or did not properly submit the annual certification required under subsection 2.

(2) An unorganized township for which a non-oil-producing county did not maintain any township roads as of December thirty-first of the prior year or did not properly submit the annual certification required under subsection 2.

c.

The amount allocated to organized townships under this subsection must be paid by the county treasurer to each organized township, and the amount allocated to unorganized townships under this subsection must be credited by the county treasurer to a special fund for unorganized township roads.

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2 25.0818.01001 Sixty-ninth Legislative Assembly d.

The allocations under this section must be used for road and bridge infrastructure projects.

4.

For purposes of this section:

a.

"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.

b.

"Road and bridge infrastructure projects" means projects associated with the construction of new unpaved and paved road and bridge infrastructure or associated with the maintenance, repair, or replacement of existing unpaved and paved road and bridge infrastructure.

SECTION 1.

FiftyTwenty-fiveFifty percent to the generaltownshipgeneral road and bridge sustainability fund under; section 2 of this Act;

The remaining fiftyseventy-fivefifty percent to the flexible transportation fund under section 24-02-37.3.