Committee clears bill to let dealers obtain title for abandoned or junk vehicles regardless of value

Committee counsel told the Senate Transportation and Infrastructure Committee that House Bill 4881 would strike the current statutory limitation that prevents certain licensed dealers, automobile auctions, repair facilities and registered towing companies from obtaining title to abandoned or junk motor vehicles above a specified value. Historically the cap had been raised over time (from $2,500 to higher amounts) and the bill would remove that ceiling so eligible entities could petition the Division of Motor Vehicles for a certificate of title regardless of a vehicle’s value.

Senator Marion asked whether the procedures are robust enough to prevent someone from abusing the process — for example, abandoning a high‑value vehicle so it could be converted to another’s use. Adam Holly, general counsel for the Division of Motor Vehicles, told the committee that the DMV has administered the process for years and "we've not experienced this process being abused." He said higher‑value abandoned vehicles typically have sufficient damage that owners choose abandonment over expensive repairs, and that legal notices and remedies exist when notice requirements are not followed.

The committee adopted a motion from Vice Chair Foster to report the bill to the full Senate with a recommendation that it pass; adoption was recorded by voice vote in the transcript and no roll‑call tally is provided.

Policy implications: the bill would simplify title acquisition procedures for businesses that handle abandoned or junk vehicles; senators pressed for assurance that notice, VIN checks and statutory safeguards are adequate to protect owners and prevent conversion of property. The Division of Motor Vehicles suggested the policy judgment about the cap is for the Legislature to make.

Next steps: HB4881 will be reported to the full Senate for further consideration.