§ 57-62-02 — Allocation of moneys in coal development fund

North Dakota § 57-62-02

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-62: Impact Aid Program

Text

Moneys deposited in the coal development fund shall be apportioned monthly by the state
treasurer as follows:
1. Fifteen percent must be deposited in a permanent trust fund in the state treasury, to be
known as the coal development trust fund, pursuant to section 21 of article X of the
Constitution of North Dakota. Those funds held in trust and administered by the board
of university and school lands on March 5, 1981, pursuant to section 12, chapter 563,
1975 Session Laws; section 12, chapter 560, 1977 Session Laws; or section 13,
chapter 626, 1979 Session Laws must also be deposited in the trust fund created
pursuant to this subsection. The fund must be held in trust and administered by the
board of university and school lands for loans to coal-impacted counties, cities, and
school districts as provided in section 57-62-03 and for loans to school districts
pursuant to chapter 15.1-36. The board of university and school lands may invest such
funds as are not loaned out as provided in this chapter and may consult with the state
investment board as provided by law. The income, including interest payments on
loans, from the trust must be used first to replace uncollectible loans made from the
fund and the balance must be deposited in the general fund. Loan principal payments
must be redeposited in the trust fund. The trust fund must be perpetual and held in
trust as a replacement for depleted natural resources subject to the provisions of this
chapter and chapter 15.1-36.
2. Fifteen percent must be deposited in the lignite research fund for the purpose of
developing advanced energy technology.
3. Seventy percent must be allocated to the coal-producing counties and must be
distributed among such counties in such proportion as the number of tons [metric tons]
of coal severed at each mining operation bears to the total number of tons [metric
tons] of coal severed in the state during such monthly period. Allocations under
subdivisions a and b must be apportioned by the state treasurer as follows:
a. If the tipple of the currently active coal mining operation in a county is not within
fifteen miles [24.14 kilometers] of another county in which no coal is mined, the
revenue apportioned according to this subdivision must be allocated as follows:

(1) Thirty percent must be paid by the state treasurer to the incorporated cities
of the county based upon the population of each incorporated city according
to 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 such census.
(2) Forty percent must be paid to the county treasurer who shall deposit it in the
county general fund to be used for general governmental purposes.
(3) Thirty percent must be apportioned by the state treasurer to school districts
within the county on the average daily membership basis, as certified to the
state treasurer by the county superintendent of schools.
b. If the tipple of a currently active coal mining operation in a county is within fifteen
miles [24.14 kilometers] of another county in which no coal is mined, the revenue
from the production not exceeding the production limitation in a calendar year
which is apportioned from that coal mining operation according to this subsection
must be allocated, subject to the definitions of terms and the requirements in
paragraph 4, as provided in this subdivision. For purposes of this subdivision, the
production limitation is three million four hundred thousand tons [3084428.12
metric tons] through calendar year 2017 and three million tons [2721554.22
metric tons] after calendar year 2017. Revenue from production exceeding the
production limitation in a calendar year from that coal mining operation must be
allocated only within the coal-producing county under subdivision a. Allocations
under this subdivision must be made as follows:
(1) Thirty percent must be paid by the state treasurer to the incorporated cities
of the coal-producing county and to any city of a non-coal-producing county
when any portion of the city lies within fifteen miles [24.14 kilometers] of the
tipple of the currently active coal mining operation in the coal-producing
county, based upon the population of each incorporated city according to 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 such census.
(2) Forty percent must be divided by the state treasurer between the general
fund of the coal-producing county and the general fund of any
non-coal-producing county when any portion of the latter county lies within
fifteen miles [24.14 kilometers] of the tipple of the currently active coal
mining operation in the coal-producing county. The non-coal-producing
county portion must be based upon the ratio which the assessed valuation
of all quarter sections of land in that county, any portion of which lies within
fifteen miles [24.14 kilometers] of the tipple of the currently active coal
mining operation, bears to the combined assessed valuations of all land in
the coal-producing county and the quarter sections of land in the
non-coal-producing county within fifteen miles [24.14 kilometers] of the
tipple of the currently active coal mining operation. The county director of tax
equalization of the coal-producing county shall certify to the state treasurer
the number of quarter sections of land in the non-coal-producing counties
which lie at least in part within fifteen miles [24.14 kilometers] of the tipple of
the currently active coal mining operation and their assessed valuations.
(3) Thirty percent must be apportioned by the state treasurer to school districts
within the coal-producing county and to school districts in adjoining
non-coal-producing counties when a portion of those school districts' land
includes any of the quarter sections of land certified by the director of tax
equalization to the state treasurer to be eligible to share county funds as
provided for in paragraph 2. The county superintendent of the
non-coal-producing counties shall certify to the state treasurer the number of
students actually residing on these quarter sections lying outside the
coal-producing county and each school district in non-coal-producing
counties shall receive a portion of the money under this paragraph based

upon the ratio of the number of children residing on quarter sections of that
school district within the fifteen-mile [24.14-kilometer] radius of the tipple of
a currently active coal mining operation to the total number of schoolchildren
from the coal-producing county combined with all the schoolchildren certified
to be living on quarter sections within fifteen miles [24.14 kilometers] of the
tipple of the currently active coal mining operation in the coal-producing
county.
(4) For the purposes of this subdivision:
(a) The terms "currently active coal mining operation in a county",
"currently active coal mining operation in the coal-producing county",
and "currently active coal mining operation" mean a coal mining
operation that produced more than one hundred fifty thousand tons
[136077.71 metric tons] of coal in a coal-producing county during the
prior quarterly period.
(b) The term "coal-producing county" means a county in which more than
one hundred fifty thousand tons [136077.71 metric tons] of coal were
mined in the prior quarterly period.
(c) The term "another county in which no coal is mined" means a county
in which not more than seventy-five thousand tons [68038.86 metric
tons] of coal were mined in the prior quarterly period.
(d) The terms "non-coal-producing county" and "non-coal-producing
counties" mean any county in which not more than seventy-five
thousand tons [68038.86 metric tons] of coal were mined in the prior
quarterly period.
(e) In computing each amount to be paid as provided in paragraph 1, 2, or
3 for coal severance tax revenue from coal mined during a monthly
period, the state treasurer shall deduct from the allocation the amount
of coal severance tax revenue, if any, that the governmental body in
the non-coal-producing county received from the coal mined in the
non-coal-producing county during the same monthly period.
(5) The state treasurer shall allocate funds provided by legislative appropriation
to cities, the county general fund, and school districts within a
coal-producing county according to the allocation method provided in
subdivision a in an amount to offset fifty percent of the loss of that county's
share of coal severance tax revenue allocated to a non-coal-producing
county under this subdivision in the previous calendar year for the payments
through calendar year 2018 and to offset thirty percent of the loss of that
county's share of coal severance tax revenue allocated to a
non-coal-producing county under this subdivision in the previous calendar
year for payments after calendar year 2018. The state treasurer shall make
the allocation and distribute the funds, within the limits of legislative
appropriations, under this paragraph during the first month of each calendar
year. The state treasurer shall include in each biennial budget request the
amounts estimated to be necessary for the biennium for purposes of this
paragraph, based on the allocations under this subdivision in the most
recent calendar years.