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AlabamaSB962025 Regular SessionSenateWALLET

Motor vehicles; salvage certificate of title requirements, revised

Sponsored By: Josh Carnley (Republican)

Enacted

Motor Vehicles & Traffic

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 3 benefits, 2 costs, 3 mixed.

Alabama titles for out-of-state rebuilt vehicles

Beginning October 1, 2025, Alabama can issue titles for vehicles fully restored outside the state to their pre-salvage operating condition. The vehicle must have an Alabama or other-state salvage title, or evidence that a salvage title should have been issued. The Department of Revenue must be satisfied that the rebuild followed the other state's salvage-rebuilding laws.

Owners can recycle older vehicles without titles

Beginning October 1, 2025, owners or authorized agents can use a sworn statement without obtaining a title in their name. The vehicle must be worth $1,000 or less, at least 12 model years old, and free of recorded liens. The transfer must be to a licensed automotive dismantler and parts recycler or secondary metals recycler for dismantling or recycling. The statement must include required certifications, a National Motor Vehicle Title Information System ID, and a Department-issued tracking number.

Vehicle document offense now targets individuals

Beginning October 1, 2025, the revised Class A misdemeanor for unlawfully handling covered vehicle papers or plates applies to individuals. It covers documents and plates linked to vehicles scrapped, dismantled, or sold as junk, salvage, or a total loss. The text no longer expressly includes firms, corporations, their officers or workers, or people who direct, aid, or approve the conduct.

Tighter title rules for rebuilt vehicles

Beginning October 1, 2025, Alabama bars titles for vehicles marked junk, parts car, parts only, or nonrebuildable. Similar wording on a destruction certificate or bill of sale also blocks a title. For covered restored passenger vehicles, trucks, and buses, any frame portion counts as a major part, including a frame horn. Inspection applications must include notarized bills of sale for major parts used in the rebuild. The inspection application costs $75, and the rebuilt title costs $15; inspection does not certify roadworthiness or safety.

Vehicle recyclers face filing and waiting rules

Beginning October 1, 2025, processors must file cancellation notices and get state receipts before crushing, dismantling, or recycling vehicles. Licensed dismantlers and secondary metals recyclers must file electronically; the state checks current title and stolen status before issuing receipts. For sworn-statement transfers, recyclers must file within 72 hours, get a receipt before processing, and wait 48 hours before crushing or shredding, excluding Saturdays and Sundays. Covered processors must keep vehicle, seller, identification, sale, and surrendered-title records for at least five years; crushing for an owner also requires vehicle and customer identification records. Sworn-statement recyclers must retain original signed documents for at least five years and send the information to local sheriffs or police chiefs when requested.

New title duties for salvage owners

Beginning October 1, 2025, covered owners must apply for a salvage title within 72 hours after a total-loss or salvage event. Coverage includes vehicles with an Alabama title, vehicles in Alabama when applying for or branding a title, or Alabama-resident owners. A total loss means damage reaches at least 75% of fair retail value; the salvage certificate costs $15. Owners must also send the original title to the Department of Revenue. The Department can cancel a surrendered title only with consent from any listed lienholder, protecting the lender but potentially delaying cancellation.

Recyclers pay for checks and claim protection

Beginning October 1, 2025, covered recyclers get a real-time state system to check titles, liens, and stolen-vehicle reports. Access costs $5 per submission or $500 annually per location or license, covering submissions and inquiries for the fiscal year beginning October 1. Fees support Motor Vehicle Division training and technology and processing improvements. Recyclers that follow the filing and verification requirements and document their inquiry with the state's tracking number receive protection from certain claims. Protection covers only liens or theft reports not recorded or reported when the vehicle was purchased and checked.

Illegal vehicle sales bring felony penalties

Beginning October 1, 2025, knowing and willful violations of the sworn-statement transfer rules are Class C felonies. Covered offenses include falsifying the required statement or knowingly selling a vehicle with an unpaid lien; restitution can also apply. A court can order seizure and forfeiture of a vehicle used to transport an illegally sold vehicle. Forfeiture protects owners or people in charge who neither knew of nor agreed to the conduct. It also respects the rights of qualifying lenders with legally secured liens.

Sponsors & Cosponsors

Sponsor

  • Josh Carnley

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 293 • No: 0

House vote • 4/1/2025

Motion to Read a Third Time and Pass - Adopted Roll Call 600

Yes: 100 • No: 0

House vote • 4/1/2025

Third Reading in Second House

Yes: 102 • No: 0

Senate vote • 3/4/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 251

Yes: 31 • No: 0

Senate vote • 3/4/2025

Carnley motion to Adopt - Adopted Roll Call 250

Yes: 30 • No: 0

Senate vote • 3/4/2025

Third Reading in House of Origin

Yes: 30 • No: 0

Actions Timeline

  1. Enacted

    4/10/2025Senate

  2. Delivered to Governor

    4/3/2025Senate

  3. Signature Requested

    4/3/2025House

  4. Ready to Enroll

    4/2/2025Senate

  5. Enrolled

    4/2/2025Senate

  6. Third Reading in Second House

    4/1/2025House

  7. Motion to Read a Third Time and Pass - Adopted Roll Call 600

    4/1/2025House

  8. Reported Out of Committee Second House

    3/19/2025House

  9. Read for the Second Time and placed on the Calendar

    3/19/2025House

  10. Engrossed

    3/5/2025Senate

  11. Read for the first time and referred to the House Committee on State Government

    3/5/2025House

  12. Pending Committee Action in Second House

    3/5/2025House

  13. Third Reading in House of Origin

    3/4/2025Senate

  14. Banking and Insurance 1st Amendment Offered

    3/4/2025Senate

  15. Carnley motion to Adopt - Adopted Roll Call 250

    3/4/2025Senate

  16. Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 251

    3/4/2025Senate

  17. Banking and Insurance 1st Amendment

    2/20/2025Senate

  18. Reported Out of Committee House of Origin

    2/20/2025Senate

  19. Read for the Second Time and placed on the Calendar

    2/20/2025Senate

  20. Read for the first time and referred to the Senate Committee on Banking and Insurance

    2/5/2025Senate

  21. Pending Committee Action in House of Origin

    2/5/2025Senate

Bill Text

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