HB1358

HB1358Oil & Gas Production Tax DistributionBackground17 Oil & Gas Producing Counties85% of production from 4 countiesMountrailMcKenzieWilliamsDunnMountrailMcKenzieWilliamsDunn184 Drilling Rigs May 11, 2013ND Industrial Commission WebsiteTwo TaxesGross Production Tax (GPT) - 5%Extraction Tax (ET) 6.5%Total = 11.5%

HB1358 relates to GPT only% of GPT back to local Government

% of GPT & ET combined back to local government

Hub cities & HUB CITY schoolsPopulation 12,500 or more

More than 1% of employment engaged in miningWilliston 40%Dickinson 17%Minot 4%Hub city allocationsWilliston40$375,000$15 Million/yearDickinson17$375,000$6.375 Million/yearMinot4$375,000$1.5 Million/yearHub city SCHOOLS allocationsWilliston40$125,000$5 Million/yearDickinson17$125,000$2.125 Million/yearMinot4$125,000$500,000/yearFiscal yearFiscal Year 2013 (FY2013) ends June 30, 2013

Fiscal Year 2014 (FY2014) begins July 1, 2013July 2013 ProductionReported to state in August 2013Paid to counties, cities, schools in September 2013Fiscal yeaRCurrent Formula applies to all payments you receive through August 2013

New formula applies to payment you receive in September 2013Current formula5 different tiers for split between state & county

First $2 Million 0/100Third $1 Million 25/75Fourth $1 Million 50/50Next $14 Million 75/25After $18 Million 90/10

Current formulaDistribution to Local Government

45% General Fund35% Schools (cap based on population)20% Cities (no cap)Infrastructure FundCurrent formulaInfrastructure Fund

Grants to Townships for Impacted Roads and to Schools for Buses

Infrastructure Fund goes away with new formulaNew formula (hb1358)Only 2 different tiers for split between state & county

First $5 Million 0/100All $$ Over $5 Million - 75/25

New formula (hb1358)Two distribution formulas:

Counties less than $5 Million Counties over $5 Million

State Treasurer will do ALL allocations to cities and schools

New formula (hb1358)6 Counties Less than $5 Million

BottineauGolden ValleyMcHenryRenvilleSlopeWardNew formula (hb1358)Counties Less than $5 Million

45% General Fund35% Schools20% Cities

New formula (hb1358)BillingsBowmanBurkeDivideDunn

McKenzieMountrailStarkWilliams

9 Counties Over $5 Million

New formula (hb1358)Counties Over $5 Million60% General Fund5% Schools20% Cities3% Townships (allocated by miles)3% Townships (shared equally)9% Hub Cities

New formula (hb1358)Counties Over $5 Million

9% to Hub Cities:Williston 60%Dickinson 30%Minot 10%

State Treasurer will do ALL allocations to cities and schools

And more.HB1358 - Sections 5, 6 & 7 County Road Funds

$160 Million for counties over $5 Million in GPT allocations in FY2013

Allocated based on UGPTI studyJuly 2013 June 2015And more.HB1358 - Sections 5, 6 & 7 County Road Funds

$120 Million for counties that did not receive $5 Million in GPT allocations in FY2013

Allocated based on the miles of road defined by NDDOT as county major collector roads in each countyJuly 2013 June 2015And more.HB1358 - Section 8

$2 Million AppropriationNursing Homes & Basic Care FacilitiesAllocated by Dept. of Commerce in January 2014 and January 2015Based on number of FTEs determined by NDDHSAnd more.HB1358 - Section 10

$9.6 Million AppropriationCritical Access HospitalsAllocated by ND Dept. of Human ServicesOne time fundingMax of $4.8 Million each year of bienniumAnd more.HB1358 - Section 11

$9.6 Million AppropriationAttorney Generals OfficeGrants to Law Enforcement agencies in oil impacted countiesUp to 10% may be used by AGs office to offset added expenseMax of $4.8 Million each year of bienniumDevelopment of uniform law enforcement & custody manualThank youNDAOGPC, Brady PeltonNDACo, Mark, Terry & AaronRepresentative Bob SkarpholGovernor Dalrymple

Oil & Gas Producing Counties Auditors and TreasurersTraining SessionState Treasurers Office State Treasurer Kelly SchmidtJune 12 1:00 p.m.