23.0798.01000
Sixty-eighth
Legislative Assembly HOUSE BILL NO. 1374
of North Dakota
Introduced by
Representatives Toman, Christensen, Motschenbacher, Prichard
1 A BILL for an Act to create and enact a new section to chapter 49-02 of the North Dakota
2 Century Code, relating to competition between the government and private industry; and to
3 require a report to legislative management.
4 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
5 SECTION 1. A new section to chapter 49-02 of the North Dakota Century Code is created
6 and enacted as follows:
7 Government - Private business - Competition - Report to legislative management.
8 1. Upon petition by an individual directly affected by competition with a state agency or
9 institution, the commission shall determine whether the agency or institution is in
10 competition with private enterprise.
11 2. If the public service commission determines a state agency or institution is engaged in
12 competition with private enterprise after a hearing during which all impacted parties
13 had an opportunity to present evidence, the commission shall direct the state agency
14 or institution to terminate the activity unless:
15 a. Cessation of the activity will create an emergency;
16 b. The cost of providing the service through private enterprise will cost at least ten
17 percent more than the same service provided by a state agency or institution;
18 c. Private enterprise cannot adequately provide the service; or
19 d. Cessation of the activity will cause irreparable harm or loss of substantial
20 invested funds.
21 3. The commission shall submit a written decision to the parties within twenty days of the
22 hearing.
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1 4. A petitioner may file an appeal of a decision made by the commission with the district
2 court. If the appeal is unsuccessful, the petitioner shall pay the costs of the hearing
3 and appeal incurred by the state including reasonable attorney's fees.
4 5. Any activity or service provided by a state agency or institution before the effective
5 date of this Act which is found to be in competition with private enterprise may
6 continue until the expiration of any contract that would be affected adversely by the
7 cessation of the activity.
8 6. Unless a state agency or institution demonstrates a compelling public interest for an
9 activity to be in competition with private enterprise, it must be the policy of the state to
10 contract with private enterprise. If a state agency or institution is authorized to engage
11 in an activity in competition with private enterprise, the commission shall set a fee for
12 that activity to reflect the fair market value and the actual costs incurred.
13 7. This section does not apply to the Bank of North Dakota, the state mill and elevator, or
14 the department of corrections and rehabilitation.
15 8. The commission shall report to the legislative management by March fifteenth of each
16 even-numbered year on the status of petitions received under this section.
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