SB 2012 — AN ACT to provide an appropriation for defraying the expenses of the department of transportation; to create and enact a new section to chapter 24-02 and a new section to chapter 54-27 of the North Dakota Century Code, relating to rail passenger authority agreements and a legacy earnings fund; to amend and reenact section 6-09.4-10.1, subsection 1 of section 21-10-06, and sections 24-02-37.3, 54-27-19, and 57-40.3-10, section 57-51.1-07.5 as amended by Senate Bill No. 2323 as approved by the sixty-ninth legislative assembly, and sections 57-51.1-07.7 and 57-51.1-07.8 of the North Dakota Century Code, relating to funds invested by the state investment board, the flexible transportation fund, the highway tax distribution fund, motor vehicle excise tax collections, the state share of oil and gas taxes, the municipal infrastructure fund, and the county and township infrastructure fund; to repeal sections 21-10-12, 21-10-13, 54-27-19.3, and 54-27-19.4 of the North Dakota Century Code, relating to legacy fund definitions, a legacy earnings fund, the legacy earnings highway distribution fund, and legacy earnings township highway aid fund; to provide for a legislative management report; to provide for application; to provide an effective date; and to provide an exemption.

The director may enter an agreement with the big sky passenger rail authority regarding the creation of a service development plan.

SECTION 11.

State-funded road and, bridge, and bridgeother infrastructure construction and maintenance activities within the state but off of the state highway system.

4.S.

B.

NO.

2012 - PAGE 4 4.

Pageb. No.

4 25.0179.02000 Sixty-ninth Legislative Assembly b.

TwelveThe andfollowing one-halfpercentage percent of state funds deposited in the fund must be allocated by the director to non-oil-producing counties for projects or grants forto thecounties, benefitcities, of counties and organizedtownships andin unorganizednon-oil-producing townshipscounties for theroad maintenance and improvementbridge ofrepair county and townshipreplacement pavedprojects: and unpaved roads and bridges.

(1) Nineteen and one-half percent for county and city projects.

(2) Thirteen and one-half percent for township projects.

SixSeventeen and one-quarterone-half percent of state funds deposited in the fund must be allocated by the director for grants to eligible townships located in non-oil-producing counties for road and bridge repair and replacement projects with priority given for road graveling projects.

Twelve and one-half percent of state funds deposited in the fund must be allocated by the director for grants to eligible counties for bridge repair and replacement projects.

Grants provided under this subdivision must:

(1) Give priority to projects based on the number of bridge needs for each county as identified in the most recent data available from the department's bridge condition assessment inventory.

Page No.

5 25.0179.02000 Sixty-ninth Legislative Assembly (2) Give priority to projects that include the permanent closure and removal of a different bridge in the same county.

(3) Require counties to provide matching funds equal to ten percent of total project costs except for projects that include the permanent closure and removal of a different bridge in the same county.

d.

Six and one-quarter percent of state funds deposited in the fund must be allocated by the director for grants to eligible cities for road and bridge repair and replacements projects.

e.

f.Priority for unorganized township road projects must be given to unorganized township projects located in counties that levy at least eighteen mills for unorganized township road and bridge purposes.

For purposes of determining the mills levied by a township or county, the director shall use the most recent mill rate data published by the tax commissioner.

d.

e.

Any funds allocated under this subsection not committed by October first of each even- numbered year may be reallocated by the director for any other projects eligible for funding under this section.

The state treasurer shall allocate a portion of funds deposited in the flexible transportation fund for the benefit of roadroad, bridge, and bridgeother infrastructure maintenance and projects in counties, cities, and townships, as follows:

a.S.

SixB. and one-quarter percent of state funds deposited in the fund must be distributed to non-oil-producing counties for the benefit of organized and unorganized township road needs using the distribution method in section 54-27-19.4.

ToNO. receive an allocation under this subdivision, an organized township must levy at least eighteen mills for general purposes and have a general fund balance of less than one hundred thousand dollars as of December thirty-first of the prior year.

Page2012 No.- PAGE 5 a.

6Nine 25.0179.02000percent Sixty-ninthof Legislativestate Assemblyfunds b.deposited in the fund must be distributed to non-oil-producing counties for the benefit of organized and unorganized township road needs using the distribution method in section 54-27-19.1.

SixTo andreceive one-quarteran percentallocation ofunder statethis fundssubdivision, depositedan inorganized thetownship fund must belevy distributedat toleast countieseighteen mills for general purposes and citieshave usinga thegeneral formulafund establishedbalance inof subsectionless 4than one hundred thousand dollars as of sectionDecember 54-27-19.thirty- first of the prior year.

To receive an allocation under this subdivision for unorganized townships, a county must levy at least eighteen mills for unorganized township road and bridge purposes.

For purposes of determining the mills levied by a township or county, the state treasurer shall use the most recent mill rate data published by the tax commissioner.

b.

Nineteen and one-half percent of state funds deposited in the fund must be distributed to non-oil-producing counties and cities for road, bridge, and other infrastructure projects using the formula established in subsection 4 of section 54-27-19.

Twenty-one percent of state funds deposited in the fund must be used by the director for any projects eligible for funding under this section.

7.

5.7.For purposes of determining the average annual oil production under this section, the state treasurer shall use the most recently available data compiled by the industrial commission in a report on the historical barrels of oil produced by county.

5.8.

SECTION 9.12.

Section 49-17.1-0554-27-19 of the North Dakota Century Code is amended and reenacted as follows:

49-17.1-05.54-27-19.

SubsidyHighway oftax railwaydistribution linesfund - ContinuingState appropriation.treasurer to make allocation to state, counties, and cities.

TheA department,highway withtax thedistribution approvalfund ofis thecreated commission,as maya providespecial financialfund assistance,in within the limitsstate oftreasury fundsinto appropriatedwhich bymust thebe legislativedeposited assembly, for the continuationmoneys ofavailable operationsby andlaw maintenancefrom collections of anymotor railroadvehicle withinregistration theand state,related asfees, providedfuels fortaxes, inspecial thefuels Railroadtaxes, Revitalizationuse taxes, and Regulatoryspecial Reformfuels Actexcise oftaxes. 1976 [Pub.

L.The state treasurer shall transfer the first five million five hundred thousand dollars per biennium from the highway tax distribution fund to the state highway fund for the purpose of providing administrative assistance to other transferees.

94-210;After the transfer of the first five million five hundred thousand dollars, any moneys in the highway tax distribution fund must be allocated and transferred monthly by the state treasurer, as follows:

901. Stat.

149;Sixty-one and three-tenthsSixty percent must be transferred monthly to the state department of transportation and placed in a state highway fund.

492. U.S.C.

1651Two etand seq.],seven-tenthsThree orand otherfour-tenths relevantpercent federalmust legislation.be transferred monthly to the township highway aid fund.

Moneys3. in the state rail fund are appropriated to the department on a continuing basis for distributions authorized under this section.

TheOne departmentand orfive-tenthsOne theand commissionsixth-tenths maypercent actmust asbe thetransferred agentmonthly into cooperation with the federalpublic government, any local or regional transportation authority,fund. local governmental units, any group of rail users, or any person in any rail service assistance program.

SECTION4. 10.

Thirty-four and five-tenthsThirty-five percent must be allocated to the counties of this state in proportion to the number of vehicle registrations credited to each county.

Each county must be credited with the certificates of title of vehicles registered by residents of the county.

The state treasurer shall compute and distribute the counties' share monthly after deducting the incorporated cities' share.

All the moneys received by the counties from the highway tax S.

B.

NO.

2012 - PAGE 6 distribution fund must be set aside in a separate fund called the "highway tax distribution fund" and must be appropriated and applied solely for highway purposes in accordance with section 11 of article X of the Constitution of North Dakota.

The state treasurer shall compute and distribute monthly the sums allocated to the incorporated cities within each county according to the formulas in this subsection using the incorporated cities' populations as determined by the last official regular or special federal census or the census taken in accordance with the provisions of chapter 40-02 in case of a city incorporated subsequent to the census.

a.

For counties having no cities with a population of ten thousand or more, twenty-seven percent of the total county allocation must be distributed to all of the incorporated cities within the county on a countywide per capita basis.

The remaining county allocation amount must be transferred into the county highway tax distribution fund.

b.

For each county having a city with a population of ten thousand or more, the amount transferred each month into the county highway tax distribution fund must be the difference between the amount allocated to that county pursuant to this subsection and the total amount allocated and distributed to the incorporated cities in that county as computed according to the following formula:

(1) A statewide per capita average as determined by calculating twenty-seven percent of the amount allocated to all of the counties under this subsection divided by the total population of all of the incorporated cities in the state.

(2) The share distributed to each city in the county having a population of less than one thousand must be determined by multiplying the population of that city by the product of 1.50 times the statewide per capita average computed under paragraph 1.

(3) The share distributed to each city in the county having a population of one thousand to four thousand nine hundred ninety-nine, inclusive, must be determined by multiplying the population of that city by the product of 1.25 times the statewide per capita average computed under paragraph 1.

(4) The share distributed to each city in the county having a population of five thousand or more must be determined by multiplying the population of that city by the statewide per capita average for all such cities, which per capita average must be computed as follows:

the total of the shares computed under paragraphs 2 and 3 for all cities in the state having a population of less than five thousand must be subtracted from the total incorporated cities' share in the state as computed under paragraph 1 and the balance remaining must then be divided by the total population of all cities of five thousand or more in the state.

5.

The moneys allocated to the incorporated cities must be distributed to them monthly by the state treasurer and must be deposited by the cities in a separate fund and may only be used in accordance with section 11 of article X of the Constitution of North Dakota and an incorporated city may use the fund for the construction, reconstruction, repair, and maintenance of public highways within or outside the city pursuant to an agreement entered into between the city and any other political subdivision as authorized by section 54-40-08.

SECTION 13.

The distribution from the legacy fund on July first ofS. 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.

TheB. average value of the legacy fund balance must be calculated using the fund Page No.

7NO. 25.0179.02000 Sixty-ninth Legislative Assembly balance at the end of each fiscal year for the five-year period ending with the most recently completed even-numbered fiscal year.

2012 - PAGE 7 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.

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:

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.

(1) FiftyThirty percent to the generalhighway fund.

(2) The remainder to the strategiclegacy investmentproperty andtax improvementsrelief fundfund. to be used in accordance with section 15-08.1-08.

3.SECTION 14.

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 flexible transportation fund for allocations under section 24-02-37.3.

SECTION 11.

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 21-10-1310 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;

Page No.

8 25.0179.02000 Sixty-ninth Legislative Assembly 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 12.

AMENDMENT.

The remaining fifty percenttopercent to the flexible transportation fundfundTwenty underfive sectionpercent 24-02-37.3.to the highway tax distribution fund;

SECTIONand 13.3.

Twenty-five percent to the flexible transportation fund.

SECTION 15.

AMENDMENT.

Section 57-51.1-07.5, as amended in Section 2 of Senate Bill No.

2323, as approved by the sixty-ninth legislative assembly, is amended and reenacted as follows:

57-51.1-07.5.

State share of oil and gas taxes - Deposits.

From the revenues designated for deposit in the state general fund under chapters 57-51 and 57-51.1, the state treasurer shall deposit the revenues received each biennium in the following order:

1.

The first two hundred fifty million dollars into the state general fund;

2.

The next two hundred fifty million dollars into the social service fund;

3.

The next seventy-five million dollars into the budget stabilization fund, but not in an amount that would bring the balance in the fund to more than the limit in section 54-27.2-01;

4.

The next two hundred fifty million dollars into the state general fund;

5.

The next ten million dollars into the lignite research fund;

6.

The next twenty million dollars into the state disaster relief fund, but not in an amount that would bring the unobligated balance in the fund to more than twenty million dollars;

7.

The next three hundred sixty million dollars into the strategic investment and improvements fund;

S.

B.

NO.

2012 - PAGE 8 8.

The next sixty-five million dollars to the public employees retirement fund for the main system plan;

9.

The next fifty-nine million seven hundred fifty thousand dollars, or the amount necessary to provide for twice the amount of the distributions under subsection 23 of section 57-51.1-07.7, into the funds designated for infrastructure development in non-oil-producing counties under sections 57-51.1-07.7 and 57-51.1-07.8 with fifty percent deposited into the municipal infrastructure fund and fifty percent deposited into the county and township infrastructure fund;

10.8.

The next one hundred seventy million two hundred fifty thousandone hundred million two hundred fifty thousand dollars or the amount necessary to provide a total of two hundred thirty millionone hundred sixty million dollars into the funds designated for infrastructure development in non-oil-producing counties under sections 57-51.1-07.7 and 57-51.1-07.8 with fifty percent deposited into the municipal infrastructure fund and fifty percent deposited into the county and township infrastructure fund;

11.9.

The next sixty-five million dollars to the public employees retirement fund for the main system plan;

10.

The next twenty million dollars into the airport infrastructure fund;

and 12.11.

Any additional revenues into the strategic investment and improvements fund.

SECTION 16.

AMENDMENT.

Section 57-51.1-07.7 of the North Dakota Century Code is amended and reenacted as follows:

57-51.1-07.7.

Municipal infrastructure fund - Continuing appropriation - State treasurer - Department of transportation - Reports.

1.

There is created in the state treasury the municipal infrastructure fund.

The fund consists of all moneys deposited in the fund under section 57-51.1-07.5.

All moneys a.

The first forty million dollars deposited in the fund areeach biennium is appropriated to the state treasurer on a continuing basis for the purpose of providing grants to cities located in non-oil-producing counties pursuant to subsections 2 through 5.

The grant funding may be distributed only to cities located in non-oil-producing counties, excluding hub cities, and may be used only for essential infrastructure projects.

b.

The remaining moneys deposited in the fund are available to the department of transportation, within the limits of legislative appropriation, for the purpose of providing grants to cities located in non-oil-producing counties pursuant to subsection 6.

1.2.

By November thirtieth of each even-numbered year, starting in 2022, a city that receives a grant from the fund under subsection 3 or 4 shall provide a report to the state treasurer on the use of the funding.

The state treasurer shall notify cities of the reporting requirement by November first of each even-numbered year, starting in 2022.

Upon request, the state treasurer may provide an extension of up to fifteen days for a city to submit the report.

The state treasurer shall determine the format of the report.

The report must include the amount of grant funding received and spent by the city and a description of the infrastructure projects completed in part or in whole with the grant funding.

The state treasurer shall make the reports available to the public on the state treasurer's website.

A city that does not provide the report in a timely manner or in the correct format is not eligible to receive a grant from the fund under subsection 3 or 4 for a period of two years starting from the date the report was due.

If a city uses the funding in a manner inconsistent with the requirements of this section as identified in any financial audits conducted by the state auditor or an independent accounting firm, the state treasurer shall reduce any future grants to that city under subsection 3 or 4 by the amount spent that was inconsistent with the requirements.

S.

B.

NO.

2012 - PAGE 9 2.3.

Within forty days after the fund balance isreceives total deposits under subdivision a of subsection 1 that are greater than or equal to the amount needed for the grants under this subsection or by September thirtieth of each odd-numbered year, whichever is earlier, the state treasurer shall distribute moneys in the fund as grants to cities for essential infrastructure projects.

The state treasurer shall distribute the grants only if the fund balance isreceives total deposits that are at least ten percent of the amount needed for distributions under this subsection based on the following:

a.

Two million five hundred thousand dollars to each city with a population of at least five thousand;

b.

Five hundred thousand dollars to each city with a population of at least two thousand but less than five thousand;

and c.

One hundred twenty-five thousand dollars to each city with a population of at least one thousand but less than two thousand.

d.

If, at the time of the distributions, the moneys in the fund are less than the amount needed for the grants under this subsection, the state treasurer shall distribute the grants under this subsection on a pro rata basis.

e.

For the purposes of determining the city's population under this subsection, the state treasurer shall use the most recent actual or estimated census data published by the United States census bureau.

3.4.

Within sixty days after the fund receives its statutory limit of oil and gas tax allocations under section 57-51.1-07.5total deposits equal to the amount identified under subdivision a of subsection 1 or by September thirtieth of each odd-numbered year, whichever is earlier, the state treasurer shall distribute the moneys in the fund as grants to cities for essential infrastructure projects.

The state treasurer shall distribute the grants only if the fund balance isreceives total deposits equal to the amount needed under subsection 2 plus at least ten percent of the amount needed for distributions under this subsectionidentified under subdivision a of subsection 1, based on the following:

a.

One hundred fifty dollars per person of the city's population.

b.

In addition to the amounts in subdivision a, for a city with a positive average of the annual percentage increase in population from three years prior, a dollar amount equal to the product of the following:

(1) The amount calculated in subdivision a;

and (2) The average of the annual percentage increase in population from three years prior, multiplied by ten.

c.

In addition to the amounts in subdivisions a and b, for a city with a positive average of the annual percentage increase in taxable property values from three years prior, a dollar amount equal to the average of the annual property valuation percentage increase for the three most recent years, multiplied by twenty-five thousandths.

d.

Grants may be distributed under this subdivision only if the grant distributions under subsection 23 are completed.

If the moneys in the fundtotal deposits equal to the amount identified under subdivision a of subsection 1 are insufficient to provide for the grants, the state treasurer shall distribute the grants under this subsection on a pro rata basis.

If any moneys remain in the fundfrom the total deposits equal to the amount identified under subdivision a of subsection 1 after the distribution of grants under this subsection, the state treasurer shall distribute any remaining moneys in the fund in proportion to the S.

B.

NO.

2012 - PAGE 10 combined total distributed to each city under this sectionsubsections 3 and 4 relative to the combined total distributed to all the cities under this sectionsubsections 3 and 4.

e.

For the purposes of determining the city's population under this subsection, the state treasurer shall use the most recent actual or estimated census data published by the United States census bureau.

f.

For the purposes of determining taxable property values, the state treasurer shall use the most recent data published by the tax commissioner in the tax levy report.

4.5.

For purposes of this sectionsubsections 2 through 4:

a.

"Essential infrastructure projects" means capital construction projects to construct new infrastructure or to replace existing infrastructure, which provide the fixed installations necessary for the function of a city.

Capital construction projects exclude debt repayments and routine maintenance and repair projects, but include the following:

(1) Water treatment plants;

(2) Wastewater treatment plants;

(3) Sewer lines and water lines, including lift stations and pumping systems;

(4) Water storage systems, including dams, water tanks, and water towers;

(5) Storm water infrastructure, including curb and gutter construction;

(6) Road and bridge infrastructure, including paved and unpaved roads and bridges;

(7) Airport infrastructure;

(8) Electricity transmission infrastructure;

(9) Natural gas transmission infrastructure;

and (10) Communications infrastructure, excluding fiber optic infrastructure.

b.

"Fiscal year" means the period beginning September first and ending August thirty-first of the following calendar year.

c.

"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.

6.

From the funding identified under subdivision b of subsection 1, the director of the department of transportation shall distribute grants to cities located in non-oil-producing counties from the fund in accordance with the provisions of the flexible transportation fund under section 24-02-37.3.

SECTION 17.

AMENDMENT.

Section 57-51.1-07.8 of the North Dakota Century Code is amended and reenacted as follows:

57-51.1-07.8.

County and township infrastructure fund - Continuing appropriation - State treasurer - Department of transportation - Reports.

1.

There is created in the state treasury the county and township infrastructure fund.

The fund consists of all moneys deposited in the fund under section 57-51.1-07.5.

All moneys S.

B.

NO.

2012 - PAGE 11 a.

The first forty million dollars deposited in the fund areeach biennium is appropriated to the state treasurer on a continuing basis for the purpose of providing grants to non-oil-producing counties and townships located in non-oil-producing counties pursuant to subsections 2 through 7.

The grant funding may be distributed only to non-oil-producing counties and townships located in non-oil-producing counties and may be used only for road and bridge infrastructure projects.

b.

The remaining moneys deposited in the fund are available to the department of transportation, within the limits of legislative appropriation, for the purpose of providing grants to non-oil-producing counties and townships located in non-oil-producing counties pursuant to subsection 8.

1.2.

By November thirtieth of each even-numbered year, starting in 2022, a county that receives a grant from the fund under subsection 5 shall provide a report to the state treasurer on the use of the funding.

The state treasurer shall notify counties of the reporting requirement by November first of each even-numbered year, starting in 2022.

Upon request, the state treasurer may provide an extension of up to fifteen days for a county to submit the report.

The state treasurer shall determine the format of the report.

The report must include the amount of grant funding received and spent by the county and a description of the road and bridge infrastructure projects completed in part or in whole with the grant funding.

The state treasurer shall make the reports available to the public on the state treasurer's website.

A county that does not provide the report in a timely manner or in the correct format is not eligible to receive a grant from the fund under subsection 5 for a period of two years starting from the date the report was due.

If a county uses the funding in a manner inconsistent with the requirements of this section as identified in any financial audits conducted by the state auditor or an independent accounting firm, the state treasurer shall reduce any future grants to that county under subsection 5 by the amount spent that was inconsistent with the requirements.

2.3.

Within sixty days after the fund receives its statutory limit of oil and gas tax allocations under section 57-51.1-07.5total deposits equal to the amount identified under subdivision a of subsection 1 or by September thirtieth of each odd-numbered year, whichever is earlier, the state treasurer shall distribute moneys in the fund as grants to counties for road and bridge infrastructure projects.

The state treasurer shall distribute the grants only if the fund balance isreceives total deposits that are at least ten percent of the amount needed for distributions under this sectionidentified under subdivision a of subsection 1.

3.4.

The state treasurer shall distribute the lesser of thirteen percent of the balance of the fund or sixteen million one hundred thousand dollarstotal deposits under subdivision a of subsection 1 to non-oil-producing counties for the benefit of the organized and unorganized townships within each non-oil-producing county.

The distribution to each non-oil-producing county must provide for an equal allocation to each organized and unorganized township which is proportional to the number of township road miles in each organized and unorganized township relative to the combined total township road miles in all organized and unorganized townships in all non-oil-producing counties.

For purposes of this subsection, township road miles must be based on certifications provided to the state treasurer under section 54-27-19.1.

The amount allocated to organized townships under this section must be paid by the county treasurer to each organized township.

The amount allocated to unorganized townships under this section must be credited by the county treasurer to a special fund for unorganized township roads.

A township is not eligible for an allocation of funds under this section if the township does not maintain any township roads.

a.

To be eligible for an allocation of funds under this subsection, an organized township must levy at least eighteen mills for general purposes and have a general fund balance of less than one hundred thousand dollars as of December thirty-first of the prior year.

S.

B.

NO.

2012 - PAGE 12 b.

To be eligible for an allocation of funds under this subsection for unorganized townships, a county must levy at least eighteen mills for unorganized township road and bridge purposes.

c.

For purposes of determining the mills levied by a township or county, the state treasurer shall use the most recent mill rate data published by the tax commissioner.

4.5.

After the distributions in subsection 34, the state treasurer shall distribute the remaining money in the fundeighty-seven percent of the total deposits under subdivision a of subsection 1 to non-oil-producing counties based on the most recent data compiled by the upper great plains transportation institute regarding North Dakota's county, township, and tribal road and bridge infrastructure needs.

The distribution to each non-oil-producing county must be proportional to each non-oil-producing county's total estimated road and bridge investment needs relative to the combined total estimated road and bridge investment needs of all the non-oil-producing counties.

The total estimated road and bridge investment needs for each county is the twenty-year estimate for unpaved and paved road and bridge needs as identified by the upper great plains transportation institute.

If the data compiled by the upper great plains transportation institute includes more than one twenty-year estimate for the total needs of each county, the state treasurer shall use an average of the twenty-year estimates for each county.

5.6.

If the moneys in the fundtotal deposits under subdivision a of subsection 1 are insufficient to provide for the grants under this sectionsubsections 4 and 5, the state treasurer shall distribute the grants on a pro rata basis.

6.7.

For purposes of this sectionsubsections 2 through 6:

a.

"Fiscal year" means the period beginning September first and ending August thirty-first of the following calendar year.

b.

"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.

c.

"Road and bridge infrastructure projects" means the 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.

8.

From the funding identified under subdivision b of subsection 1, the director of the department of transportation shall distribute grants to non-oil-producing counties and townships located in non-oil-producing counties from the fund in accordance with the provisions of the flexible transportation fund under section 24-02-37.3.

SECTION 18.

Sections 21-10-1221-10-12, 21-10-13, 54-27-19.3, and 21-10-1354-27-19.4 of the North Dakota Century Code are repealed.

SECTION 14.19.

TheWhen the request for bids for construction on the last segment of the United States highway 85 project between interstate highway 94 and North Dakota highway 200 commences, the department of transportation shall prepare and complete an environmental impact statement process to construct a four-lane highway for the remaining sections of the Theodore Roosevelt expressway as described in section 24-01-54 which do not have four lanes from the South Dakota border to interstate highway 94 and from Williston to the Montana border.

SECTIONS. 15.

B.

NO.

2012 - PAGE 13 SECTION 20.

PageSECTION No.21.

9MISCELLANEOUS 25.0179.02000EXPENSES Sixty-ninthFOR LegislativeDEPARTMENT AssemblyOF SECTIONTRANSPORTATION 16.FACILITIES.

The department of transportation may expend funds for workplace appliances limited to coffee makers, microwaves, and refrigerators, for the biennium beginning July 1, 2025, and ending June 30, 2027.

SECTION 22.

UNITED STATES HIGHWAY 85 FOUR-LANE PROJECT.

During the biennium beginning July 1, 2025, and ending June 30, 2027, the director of the department of transportation shall construct and complete the remaining portions of the United States highway 85 four-lane project between highway 200 and the long x bridge.

SECTION 23.

The sum of $757,000 included in the deferred maintenance funding pool line item and transferred to the department of transportation pursuant to section 9 of chapter 640 of the 2023 Special Session Session Laws;

SECTION 17.24.

APPLICATION.

Distributions by the state treasurer for organized and unorganized township road and bridge needs under subsection 5 of section 24-02-37.3 and subsection 4 of section 57-51.1-07.8 may not commence until January 1, 2026.

SECTION 25.

Section 1214 of this Act is effective for motor vehicle excise tax collections transmitted to the state treasurer after July 31, 2025.

PageS. No.

10B. 25.0179.02000

NO.

2012 - PAGE 14 ____________________________ ____________________________ President of the Senate Speaker of the House ____________________________ ____________________________ Secretary of the Senate Chief Clerk of the House This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North Dakota and is known on the records of that body as Senate Bill No.

2012.

Senate Vote:

Yeas 46 Nays 0 Absent 1 House Vote:

Yeas 86 Nays 2 Absent 6 ____________________________ Secretary of the Senate Received by the Governor at ________M.

on _____________________________________, 2025.

Approved at ________M.

on __________________________________________________, 2025.

____________________________ Governor Filed in this office this ___________day of _______________________________________, 2025, at ________ o’clock ________M.

____________________________ Secretary of State