HB168 Alabama 2010 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Jimmy Martin
Republican
Session: Regular Session 2010
Title: Motor vehicles, salvage titles, original owner authorized to rebuild and obtain title under certain conditions, inspection provisions further provided for, approval of Revenue Department regarding valuation of salvage vehicle deleted, duties to scrap metal processors, penalties, Sec. 32-8-87 am'd.
Summary: HB168 rewrites Alabama salvage-title rules to let individual owners rebuild salvage vehicles, adds branding and disclosure requirements, tightens scrap-metal processor rules, and strengthens penalties.
What This Bill Does
It creates an exception that allows an individual owner to apply for an inspection of a salvage vehicle without being a licensed rebuilder if they can show they owned the vehicle before the salvage title was issued. It requires clear salvage-related branding and disclosures (including rebuilt, junk, and flood designations) and adds a rebuilt status decal for restored vehicles. It also removes the need for the Department of Revenue to approve certain retail-value databases for salvage valuations and expands inspection processes and penalties related to salvage, junk, and scrap-vehicle transactions.

Who It Affects
Individual salvage vehicle owners and buyers: may now apply for inspections and title actions without a rebuilder license if they can prove prior ownership, and must observe new branding/disclosure requirements when selling or transferring such vehicles.
Scrap metal processors and related salvage businesses (junkyards, salvage yards, dismantlers) and insurers: face new acquisition rules, mandatory title surrender and five-year records, higher penalties for violations, and stricter controls on handling salvage and junk vehicles.

Key Provisions
An individual salvage vehicle owner may apply for an inspection without a licensed rebuilder if they provide prior registration or documentation showing ownership before the salvage title was issued.
Salvage vehicles must be branded with specific designations (e.g., 'salvage', 'rebuilt', 'flood vehicle') and rebuilt vehicles must receive a decal or emblem; sale disclosures must announce the salvage/rebuilt status to purchasers.
The Department of Revenue's requirement to approve national value indexes or databases for salvage valuations is removed.
Owners may apply for inspections even when supporting paperwork is incomplete or unavailable, under prescribed conditions and documentation.
Scrap metal processors must surrender salvage titles to the department and maintain detailed records for at least five years, with penalties for violations.
Total loss is defined (75% or more of pre-damage value) with related rules on flood designations and disclosures; various transfer and sale requirements apply to salvage-related titles.
An expanded inspection regime for restored vehicles, including a $75 inspection fee and a $15 title fee, inspections by department agents, and documentation requirements such as notarized bills of sale for major parts and bonds when information is missing.
Certain violations carry Class C or Class A misdemeanor penalties, and there are specific prohibitions on possessing, selling, or transferring salvage or rebuilt titles without proper branding and documentation.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Motor Vehicles