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HB 1359

A BILL for an Act to create and enact a new section to chapter 26.1-40 of the North Dakota Century Code, relating to a prohibition on preferred automobile repair shops.

69th Legislative Assembly (2025-26) Introduced by Ben Koppelman

HB 1359 limits how Charles County can displace private student-bus providers - mandates advance notice, a public hearing, and possible compensation before displacement.

Second reading, failed to pass, yeas 22 nays 71
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Bill Summary · HB 1359

Summary — HB 1359 (Charles County)

Title: Charles County — Student Bus Transportation Providers — Provider Displacement
Status: Introduced; takes effect July 1, 2025

Main purpose

HB 1359 restricts the Charles County Board of Education’s ability to displace private providers of student bus transportation by imposing advance-notice, public‑hearing, and (in some cases) compensation requirements before the board may take over or otherwise displace existing private contractors.

Key provisions

  • Defines “displacement” as the county board’s provision of student bus transportation in a manner that prevents a private provider who has been supplying the service from continuing to do so.

    • Excludes displacement that results from nonrenewal for cause or where the provider has threatened public safety, materially breached a contract, or refuses to continue under the existing agreement.

  • Advance process and notice requirements:

    • At least 10 years before taking any action that would result in displacement, the board must:
    • Provide written notice (first‑class mail) of the intent to displace each person providing services in the county — that notice must be sent at least 45 days before a required public hearing; and
    • Hold at least one public hearing on whether the board should provide the transportation services. The hearing must be advertised in a newspaper of general circulation once a week for two successive weeks before the hearing.
    • Within 1 year after that public hearing — and at least 5 years before any displacement — the board must send registered‑mail notice of the displacement to the affected provider.

  • Exceptions allowing earlier takeover (i.e., less than 5 years after notice):

    • The board may proceed earlier if it pays the displaced private provider an amount equal to that provider’s gross receipts from providing the services in the county during the preceding 24‑month period; or
    • The board and provider mutually agree to a different notice period or compensation amount; or
    • The provider stops providing the services in the county.

Who is affected

  • Primary: private contractors that currently provide student bus transportation in Charles County (including small businesses operating bus fleets).
  • Secondary: Charles County Board of Education (policy and procurement options constrained), county taxpayers (potential fiscal effects), and students/families (service continuity).

Fiscal and operational impact

  • State effect: None.
  • Local (Charles County) effect: Potential increase in school transportation expenditures if the board is prevented from bringing services in‑house when that would otherwise produce savings. The fiscal note cites:
    • FY2025 student transportation costs in Charles County ≈ $47.1 million.
    • A Charles County study (2015) estimated possible average annual savings of ~3.3% if transportation were brought in‑house — roughly $1.5 million+ annually based on the FY2025 budget. The 10‑year advance‑notice requirement could preclude realizing those savings.
  • The bill constitutes a mandate on a unit of local government. Small‑business impact is characterized as minimal (but individual contractor financial impacts could be material depending on circumstances).

Procedural/timeline details

  • Effective date: July 1, 2025.
  • Timeline requirements are strict (10‑year initiation, 5‑year registered‑mail notice) but permit shorter timelines if compensation or mutual agreement conditions are met.
  • Provides process protections for contractors (public hearing, multiple types of mailed notice, statutory compensation option).

Purposefully, HB 1359 aims to preserve continuity and economic protections for private student‑transportation providers in Charles County by requiring extended advance notice and additional procedural steps before displacement by the school board.

Compiled from official sources — confirm details with the bill’s official record.

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