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Roughrider Industries’ proposal to sell directly to state employees draws support and business‑community concern
Summary
The Senate Industry and Business Committee heard mixed testimony on SB2066, which would allow the Department of Corrections’ Roughrider Industries to sell products directly to state employees; supporters emphasized workforce and recidivism benefits while the state’s largest business association warned of unfair competition with private firms.
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The Senate Industry and Business Committee heard testimony on Senate Bill 2066, which would permit Roughrider Industries — the Department of Corrections and Rehabilitation’s manufacturing program — to sell products directly to state employees.
Rick Gardner, the program representative, told the committee Roughrider Industries operates manufacturing workshops inside state correctional facilities and emphasizes job skills that reduce recidivism. He said the program is self‑funded and faces higher raw material and security‑related operating costs that private manufacturers do not, and that the program’s main product is its trained workers. "Our actual product is our people," Gardner said, describing investments in technology such as a fiber laser and powder‑coating equipment and a longer‑term goal of employing more residents as work increases.
Gardner told senators Roughrider already sells to private retailers and outside customers but that the bill would allow a straightforward purchase channel for state employees who want to buy items such as office furniture. He and committee members discussed potential demand, the program’s manufacturing capacity, and how Roughrider screens program participants for work opportunities.
Supporters argued the program yields public benefits. Gardner cited a drop in recidivism rates for people who participate in job training programs and described partnerships with private companies such as Bobcat and others that have used Roughrider‑produced components. "If we could keep those 28 individuals out of prison, that's $1.5 million in savings to the state," Gardner said when discussing reduced reincarceration as an ancillary benefit.
The Greater North Dakota Chamber opposed the bill in testimony delivered by Andrea Fennig, vice president of government affairs. The chamber said the proposal would let the state compete directly with private businesses and could displace local suppliers and retail intermediaries. "We definitely recognize the benefits of Roughrider Industries... However, in its current form, it does enable the state to directly compete with private businesses," Fennig said. She urged further study and cooperative approaches that would help Roughrider’s mission while avoiding direct competition with private employers.
Committee members weighed the competing goals of workforce development and concern about displacement of private businesses; several senators noted the program buys raw materials and uses local suppliers, which would preserve some local economic activity even if direct sales were allowed. The committee closed the hearing after discussion; no committee vote was taken during the session.
