In 2008, the Legislature enacted SB 45, which requires cities of the first and second class to inventory all competitive activities the city undertakes and to report the inventory to the Free Market Protection and Privatization Board every two years. A competitive activity is a city-provided good or service that is similar to a privately-offered good or service. 

This year, the Legislature proposes to impose additional requirements on cities of the first and second class that undertake recreation or entertainment activities. HB 59 requires such cities to conduct a market impact study to evaluate the effect the activity will have on the local economy, city budget, and tax rate. 

The bill also requires cities to investigate whether private entities in the state could provide the good or service, to notify such private entities of the city's plan, and to allow the private entities to respond. Additionally, cities must hold a public hearing to present the results of the market impact study, explain why the city considers the activity to be necessary, and describe the effect the activity will have on the city budget and tax rate. At the hearing, the city must also provide the public with a list of private entities in the state that could provide the service.