Bill would create "collector" title to help people retitle long-salvaged vehicles

Representative Bill Twite of District 33 in Hazen told the House Transportation Committee that House Bill 1155 would create a collector-brand certificate of title to allow people who salvage or restore long-abandoned vehicles to establish legal ownership when original titles or motor vehicle records are not available.

Twite said the bill largely mirrors a prior 2021 measure (House Bill 1399) and was offered partly in memory of restoration expert Archie Rosenau Hazen, who helped draft earlier legislation. "The purpose of House Bill 1155 is to allow an individual to salvage a vehicle from a tree row, rock pile, pasture, storage shed, or other such locations, establish and prove ownership through a legitimate means," Twite said. He described the target vehicles as heavily deteriorated projects for which no title can be found in state records.

The bill would add a new collector title brand and allow an applicant to seek a collector title when Motor Vehicle Division (MVD) records and an original certificate are not available. Twite described two amendments he planned for committee: replacing a proposed class A misdemeanor for certain actions with an infraction, and clarifying that an individual may apply for a certificate of title after restoration if they provide an approved certificate of inspection.

Brad Shafer, director of driver and vehicle services at the North Dakota Department of Transportation, testified in a neutral capacity and described the current administrative practice when an applicant lacks an original title. "If there's no VIN on that vehicle, we can't title that vehicle," Shafer said, explaining that MVD staff first check state and out-of-state title databases and then work with applicants to document ownership. Under current practice, Shafer said, the division will accept a notarized bill of sale, a photo of the VIN, a certificate of VIN inspection, current photos of the vehicle, a copy of the applicant's North Dakota driver's license, a statement of ownership and a statement of fact if the vehicle will not be registered.

Shafer said a vehicle inspection is required for registration and that applicants must pay title fees, license fees and any applicable motor vehicle excise taxes. When asked about costs, Shafer said the motor vehicle excise tax is computed per current law (5 percent), and that current administrative fees include a $5 title fee and a $1.50 abandoned-vehicle fee.

Several committee members raised potential problems the bill should address, including fraud and trespass. Representative Casper asked whether an affidavit from the owner would be sufficient; Shafer said the MVD could follow a law change permitting such affidavits but currently would not title a vehicle that lacks a VIN because it would be an easy avenue for title-washing and fraud. Committee members also asked how the value for excise tax would be determined on a restored vehicle; Shafer said an appraisal could be used and that, if the owner can prove uninterrupted ownership despite a lost title, the tax might not apply.

A resident, Myron Vegas of Kenmare (testified as Myron Vegas), described restoring a 1930 Ford and said the VIN location was now unreadable because it had been buried in gravel and mud for decades. He said he invested significant work and money and could not secure a title under current requirements.

Twite and committee members discussed safeguards to reduce the risk that people will remove vehicles from private property and claim them. Twite suggested including location photos and landowner statements in applications; members noted that trespass and criminal laws address wrongful taking but that DOT and MVD concern remains over validating ownership before issuing a title.

Shafer said the MVD has improved its internal processes in recent years and that only a relatively small number of cases do not complete the untitled-vehicle process. He said older paper records predating computerized systems may be unavailable but Motor Vehicle staff can sometimes search archives to resolve ownership questions. He added that if an applicant disagrees with MVD’s final decision they may pursue a court order establishing ownership and present that to MVD for title issuance.

The committee closed the hearing on House Bill 1155 without a vote; members said they would consider Twite's proposed amendments and may seek additional language clarifying transferability of a collector title and safeguards against fraud.