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HB 1402

A BILL for an Act to amend and reenact subsection 3 of section 54-44-04.6 of the North Dakota Century Code, relating to state surplus motor vehicles.

69th Legislative Assembly (2025-26) Introduced by Mike Brandenburg and 9 co-sponsors

ND would give political subdivisions a 14-day, 30% discount window to buy state surplus motor vehicles, ahead of others.

Withdrawn from further consideration
0
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Bill Summary · HB 1402

HB 1402 — North Dakota (2025)

Amend § 54‑44‑04.6(3) — State surplus motor vehicles

Purpose / intent

HB 1402 would change how North Dakota handles disposition of state surplus property, with a specific new priority and discount rule for surplus motor vehicles. The bill’s stated aim is to prioritize political subdivisions (local governments) in purchasing surplus vehicles and to formalize notification and transfer practices for state agencies, political subdivisions, and eligible nonprofit organizations.

Key provisions

  • Requires surplus property to be transferred at fair market value to:
    • state agencies,
    • political subdivisions, and
    • nonprofit organizations that are eligible to receive federal surplus property under the Federal Property Administrative Services Act of 1949 (as amended).
  • Requires eligible organizations to be notified on a regular basis of available surplus property.
  • Creates a 14‑day priority window for political subdivisions to purchase surplus motor vehicles before they are offered to others.
  • During that 14‑day period political subdivisions may purchase surplus motor vehicles at a cost equal to 30% less than fair market value (i.e., a 30% discount from fair market value).

Who is affected

  • Political subdivisions (counties, cities, school districts, special districts): gain first access (14 days) and a statutory 30% discount when purchasing surplus state motor vehicles.
  • State agencies: must follow the new transfer priorities and likely handle additional administrative steps (notifications and discounted sales).
  • Eligible nonprofits (those qualified under the federal surplus property statute): remain eligible recipients for surplus property but may receive lower priority than political subdivisions for motor vehicles.
  • State surplus property program/administrative staff: will need to implement regular notifications and manage the new priority/discount process.
  • State finances: potential reduction in proceeds from surplus vehicle sales due to the required discount and priority sale to political subdivisions.

Administrative and fiscal considerations

  • The Office that administers surplus property would face modest operational changes to notify eligible entities regularly and to manage the 14‑day priority window and discounted sales.
  • The state could realize lower near‑term revenue from motor vehicle disposals because of the mandated 30% discount to political subdivisions; the bill does not specify offsets.

Legislative status / timeline

  • Sponsors: Representatives Grueneich, Brandenburg, Dressler, Hendrix, Kasper, Murphy; Senators Cory, Meyer, Erbele, Roers (listed as sponsors/authors in the bill file).
  • Introduced in the 69th Legislative Assembly (2025 session).
  • Status: withdrawn by the author (bill did not advance to enactment).

Notes

  • The change applies only to subsection 3 of North Dakota Century Code § 54‑44‑04.6 (disposition of surplus property) and specifically addresses surplus motor vehicles.
  • Because the bill was withdrawn, none of these changes became law.

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

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