HB 1191 — Office of Entrepreneurship (North Dakota) — Summary
Status (as provided)
- Introduced: November 12, 2024
- Last recorded action: Second reading, failed to pass (yeas 18, nays 28)
- Versions: Committee draft(s) and engrossments produced; some drafts include an appropriation and FTE authorization.
Purpose
- Establish an Office of Entrepreneurship inside the Department of Commerce to coordinate and strengthen state support for new and early-stage businesses, improve access to resources, and serve as a central point of contact for entrepreneurs interacting with state government.
Key provisions
- Creation and placement: Creates an Office of Entrepreneurship within the Department of Commerce. Office staff report to the Commerce Commissioner.
- Core duties:
- Strengthen policies and programs supporting entrepreneurship across demographic groups and geographic areas.
- Work with stakeholders to enhance entrepreneur learning and skills, provide technical support, and expand access to resources.
- Act as a point of contact to assist businesses operating less than five years in their interactions with state agencies and, where appropriate, refer them to state or local assistance.
- Interagency cooperation: Requires state agencies to cooperate with and assist the office in carrying out its duties.
- Procurement goals and data collection (reporting elements vary by draft):
- Office must report to Legislative Management (timing varies by draft: before August of each year or before August of each even-numbered year).
- Report items include number and dollar amount of state contracts awarded to businesses in operation less than five years (with demographic and geographic breakdowns), percentages of contracts/counts, types of business receiving contracts, recommendations to improve access to state contracts and entrepreneurship, regional challenges, and summaries of work/events.
- Office is directed to "encourage" that 5% of state contracts (by count) be awarded to businesses operating less than five years with principal place in the state (nonbinding goal language).
- Records: Financial records and communications of the office (or records containing financial information) are designated exempt from public disclosure under the cited state records law in the draft.
- Appropriation / staffing (present in some draft versions): An appropriation of $485,000 from the general fund for the 2025–27 biennium and authorization for two full‑time equivalent positions to staff the office (salary/benefits funding for that biennium).
Who would be affected
- Department of Commerce (new office, duties, and reporting obligations).
- State agencies (must cooperate with the office and provide information for the office’s duties/reports).
- Early-stage businesses (operating less than five years) — potential increased assistance and advocacy in procurement and state interactions.
- State procurement outcomes (possible changes in contract awards if the office’s recommendations are adopted).
Fiscal and operational impact
- Drafts with appropriation: one-time/biennial cost of ~$485,000 and two FTEs for FY 2026–27 (salaries and benefits).
- Ongoing administrative costs if staffing and activities continue beyond initial biennium.
- No binding procurement set‑aside; fiscal effects on contracting depend on whether procurement policy is changed in practice.
Procedural/timeline notes and caveats
- Multiple drafts and amendments exist; reporting frequency and the presence of an explicit appropriation differ between versions (some require biennial reporting, others annual; some include the $485,000 appropriation and 2 FTEs, later engrossments omit appropriation language).
- The version described here is based on committee drafts and engrossments circulated during the 2025 session. The status provided indicates the bill failed a second‑reading vote (18–28) as recorded; subsequent action could differ if refiled or modified.
For further detail
- Consult the bill text and committee engrossment(s) to confirm the final language adopted by any particular chamber, and to verify whether the appropriation and reporting schedule were retained in the version advanced.
