Committee approves bill allowing park districts to use cooperative purchasing agreements

The Political Subdivisions Committee voted to pass House Bill 1198 as amended, a bill that adds explicit cooperative purchasing authority for park and recreation districts.

The amendment clarifies three paths to cooperative purchasing: participating in contracts established by the Office of Management and Budget (OMB) without a joint powers agreement (JPA), using contracts established by another state, and entering into cooperative purchasing under a JPA. The amendment was developed with input from North Dakota Parks and Recreation, the OMB, and the Attorney General’s Office.

Sponsor Representative Morey said the amendment "makes it clear that no JPA is required for OMB cooperative purchasing contracts" and that it expands options to use contracts established by other states. Sherry Neese, director of the Shared Services Division at the Office of Management and Budget, testified in support and described safeguards OMB applies, including bidder notice and a determination that price and process are fair and consistent with state law.

Cole Higland, director of the Mandan Park District and policy chair for the North Dakota Recreation and Park Association, told the committee many park districts buy equipment not covered by state contracts (for example, specialized golf-course equipment) and that cooperative contracts such as Sourcewell or other states’ agreements can produce volume discounts. Higland said using cooperative purchasing can save local governments time and money by avoiding repeated procurement processes.

Committee members asked about competitive requirements and whether cooperative contracts favor out-of-state vendors. Neese and other witnesses explained cooperative contracts are typically competitively solicited and jurisdictions may still seek local vendors to match prices. Representative Maschenbarger asked whether local vendors could be asked to match cooperative prices; witnesses confirmed local dealerships can be approached to match state contract pricing.

The committee voted first to adopt the amendment (vote recorded by the clerk), and then on the amended bill. The clerk announced both votes: "House Bill 1198 passes 12 yea, 0 nay, 1 absent not voting" for the amendment and the final bill. Representative Moshenbacher agreed to carry the bill to the floor.

Committee members said the change is intended to reduce procurement duplication, allow park districts to access broader purchasing options, and save taxpayer dollars when local needs—such as specialized equipment—aren't covered by existing state contracts.