§ 24-02-37.3 — Flexible transportation fund - Budget section approval - State treasurer distributions to political subdivisions - Report (Retroactive application - See note)

North Dakota § 24-02-37.3

• Jurisdiction: North Dakota
• Title 24: Highways, Bridges, and Ferries
• Ch. 24-02: Director of the Department of Transportation

Text

distributions to political subdivisions - Report. (Retroactive application - See note)
There is created in the state treasury the flexible transportation fund. The fund consists of
eligible federal or state funding and any contributed private funds.
1. The flexible transportation fund must be administered and expended by the director
and may be used for the following:
a. Providing a match for federal funding obtained by the department of
transportation.
b. State-funded road and bridge construction and maintenance, and transportation
support costs including staffing, facilities, and operational expenditures on the
state highway system.
c. State-funded road, bridge, and other infrastructure construction and maintenance
activities within the state but off of the state highway system. The director shall
establish the terms and provisions of the program.
2. All money derived from the investment of the flexible transportation fund or any portion
of the fund, must be credited to the flexible transportation fund. The director shall
monthly transmit all moneys collected and received under this chapter to the state
treasurer to be transferred and credited to the flexible transportation fund.
3. The director must receive budget section approval for any project that utilizes more
than ten million dollars from the fund except for projects that match federal or private
funds and the amount utilized from the fund is fifty percent or less of total project costs.
Any request considered by the budget section must comply with section 54-35-02.9.
4. The director shall allocate a portion of funds deposited in the flexible transportation
fund for the benefit of road and bridge maintenance and projects in counties, cities,
and townships as follows:
a. The following percentage of state funds deposited in the fund must be allocated
by the director for grants to counties, cities, and townships in non-oil-producing
counties for road and bridge repair and replacement projects:
(1) Nineteen and one-half percent for county and city projects.
(2) Thirteen and one-half percent for township projects.
b. Seventeen 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.
c. The director shall establish criteria to distribute the funds under this subsection.
Priority must be given to projects that match federal or private funds and to
projects that improve roadways that serve as local corridors. Priority for organized
township road projects must be given to projects located in townships that 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.
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. The amount allocated to organized townships under this subsection must be paid
by the county treasurer to each organized township and the amount allocated for
unorganized townships under this subsection must be credited by the county
treasurer to a special fund for unorganized township roads.
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.
5. The state treasurer shall allocate a portion of funds deposited in the flexible
transportation fund for the benefit of road, bridge, and other infrastructure maintenance
and projects in counties, cities, and townships, as follows:
a. Nine 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 54-27-19.1. To 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. 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.
6. 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. For purposes of this section, "non-oil-producing county" means a county that had
average annual oil production of fewer than ten million barrels based on the average
annual oil production in the three-year period ending with the most recently completed
even-numbered fiscal year before the start of each biennium. 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.
8. The director shall provide periodic reports to the budget section regarding the status of
the fund and projects receiving allocations from the fund.