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Rep. Michael Southworth proposes turning excess proceeds from abandoned-vehicle sales to state treasurer for owners
Summary
Representative Michael Southworth introduced bill language to require tow companies that sell vehicles with abandoned titles to turn excess sale proceeds, after making themselves whole for towing and storage, over to the state treasurer in the last known owner's name so that owners can reclaim funds.
Representative Michael Southworth proposed new language in the House Transportation committee on April 10 to let owners reclaim excess proceeds when tow companies obtain abandoned-vehicle titles and sell the cars.
Southworth, a member representing Caledonia 2 and a former DMV investigator, told the committee a case from his tenure—where a person in a mental-health emergency lost a vehicle and later received taxpayer restitution—prompted the change. "If it's sold, money in excess of what is owed to the tow company for towing and storage is then turned over to the state treasurer in the last known person's name and it's held there for them to recoup that," he said.
The proposal would require tow companies to be paid first for towing and…
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