The North Dakota Senate Transportation Committee voted to give House Bill 1578 a “do pass” recommendation after hearing testimony that commercial towing companies often cannot recover costs for abandoned vehicles.

Representative Jim Greenite, District 28, told the committee the bill would keep the existing process for obtaining titles but would exempt commercial towers from paying motor vehicle excise tax at the Department of Motor Vehicles when they take title to abandoned vehicles. "What this bill is really trying to do is ... not pay sales tax at the DMV like they currently are to get that title," Representative Greenite said.

The bill’s sponsors and witnesses told the committee towing companies face financial risk when they take possession of abandoned cars: vehicles often lack keys, may not run, and frequently are later crushed. Brian Barrett, representing the North Dakota Towing Association, told the committee that an abandoned motor vehicle fund financed by a $1.50 title fee and capped historically at $250,000 (recently raised to $350,000) pays only a small portion of claims. Barrett said one tow company submitted $1 million in invoices and received roughly $1,200 from the fund. "When you add up the cost of getting a key, paying excise tax, now they have to invest $500 to $1,500 into a vehicle they don't know is gonna run," Barrett said.

Shannon Fleisher, associate director with the tax department, described how titling and excise-tax collection are administered. Fleisher said the Department of Transportation (DOT) acts as the motor-vehicle agent for titling and that the title must be issued in the towing company’s business name to qualify for any special handling. She said DOT and the tax department would check business registration with the Secretary of State to verify commercial towing companies.

Committee members asked about verification of commercial status and whether non‑licensed individuals could start towing operations simply by buying a truck; witnesses said there is no special towing license and that verification would rely on business registration and local knowledge. Committee members also heard that statutory notice and posting procedures (referenced in 23.1‑15‑07) remain part of the abandoned‑vehicle process.

Senator Rummel moved a due‑pass recommendation on House Bill 1578; Senator Corey seconded. The clerk called the roll and the committee recorded ayes from those present; the motion passed.

The committee did not amend the bill at the hearing. Supporters said the change would reduce up‑front cost and financial risk for towers that lawfully take possession of abandoned vehicles; opponents did not appear. The bill will proceed to the next committee of referral with a recommendation to pass.