ND HB1374

Public Service Commission shall determine whether a state agency or institution competes with private enterprise upon petition by an affected individual, with a hearing where all impacted parties present evidence.

Commission shall direct state agencies or institutions to terminate competitive activities unless: cessation creates an emergency, private enterprise costs at least 10% more, private enterprise cannot adequately provide the service, or cessation causes irreparable harm or substantial loss of invested funds.

Commission must submit written decision to parties within 20 days of hearing; unsuccessful appeals require the petitioner to pay state hearing and appeal costs including reasonable attorney's fees.

State policy must favor contracting with private enterprise unless a state agency demonstrates compelling public interest; when authorized to compete, agencies must set fees reflecting fair market value and actual costs incurred.

Bank of North Dakota, state mill and elevator, and department of corrections and rehabilitation are exempt from these requirements; Commission shall report petition status to legislative management by March 15 of each even-numbered year.