North Dakota House Bill HB1374

North Dakota 2023-2024 Regular Session

• Introduced: 1/13/23
• Refer: 1/13/23
• Report DNP: 1/31/23
• Refer: 2/1/23

Caption

Competition between the government and private industry; and to require a report to legislative management.

Impact

The implications of HB1374 are significant as it shifts the balance of service provision from state agencies to private enterprises. By potentially limiting the scope of government services in the market, the bill emphasizes a policy of contracting with private entities unless there is a compelling public interest to do otherwise. This could lead to more private sector participation in areas traditionally governed by state services and may affect various public service sectors depending on how the commission interprets the terms of competition.

Summary

House Bill 1374 seeks to regulate the competition between government entities and private industries in North Dakota. The bill establishes a framework where individuals can petition the Public Service Commission to determine if a state agency is competing with private businesses. If such competition is found to exist, the commission may direct the state agency to discontinue the service, unless specific criteria are met, such as the cost of private provision being significantly higher or cessation causing irreparable harm. This aspect of the bill aims to ensure that public services do not unnecessarily compete against private sector offerings, promoting fair competition.

Contention

Notably, the bill has faced considerable opposition. Critics argue that the measures could lead to a reduction in essential services, especially in rural areas where private alternatives may not be feasible or available. Concerns have also been raised about the potential negative impact on jobs within state agencies and the quality of services provided to the public if private companies prioritize profit over public welfare. Proponents, however, advocate for the bill as a necessary means to prevent government overreach into sectors best served by the private market, aiming for a leaner government.

Voting_history

The bill was reviewed on February 6, 2023, during the House's second reading. It received 14 votes in favor and 79 votes against, indicating substantial division among lawmakers regarding its provisions and potential consequences. The mixed reception suggests ongoing debates about the appropriateness of government competition with private industry, with significant concerns about the bill's real-world applications and implications for various communities.