HB509 Alabama 2011 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2011

Title

Salvage vehicles, secondary metals recyclers may acquire without title under certain conditions, statement of ownership, value, and identifying characterists required, lien verification system provided by Revenue Department, penalties, Sec. 32-8-64.2 added; Sec. 32-8-87, 40-12-412, 40-12-116 am'd.; Act 2010-748, 2010 Reg. Sess. am'd.

Summary

HB509 creates a process to transfer certain motor vehicles to recyclers without titles under conditions, adds an electronic lien verification system, requires recordkeeping, and updates penalties and lien rules.

What This Bill Does

It allows an owner to transfer a motor vehicle without a title to a licensed automotive dismantler/parts recycler or secondary metals recycler if the owner provides a statement about ownership, value, and identifying characteristics. The recycler must submit this statement to the Department of Revenue and keep detailed records of vehicles purchased for recycling or remelting. It imposes criminal penalties for violations and lets law enforcement confiscate vehicles or tools used in illegal sales. It also creates a real-time electronic system to verify titles, liens, and stolen status, with a $5 per submittal fee or a $500 annual option, and imposes a five-year lien-satisfaction rule for older vehicles plus requirements for electronic lien releases.

Who It Affects

• Vehicle owners/sellers of junk, salvage, or total-loss vehicles who may transfer without a title under specified conditions and must provide truthful ownership/value/identifying information to the Department of Revenue; they could face penalties for false statements.
• Automotive dismantlers/parts recyclers, secondary metals recyclers, and car crushers who must obtain and use the NMVTIS verification system, submit required statements to the Department of Revenue within deadlines, maintain detailed records for at least five years, pay new fees, and comply with lien and recordkeeping requirements (with potential penalties for noncompliance).

Key Provisions

• Owner may transfer a motor vehicle without title to a licensed dismantler/recycler if the owner provides a statement of ownership, value, and identifying characteristics, and the statement is filed with the Department of Revenue.
• Disassembly/recycling entities must maintain detailed records of vehicles purchased for recycling or remelting, including VIN, seller info, seller ID, sale date, and surrendered title copies.
• Criminal penalties are set for violations; law enforcement may confiscate a vehicle or tools used in illegal sales.
• A real-time electronic lien verification system will be created by the Department of Revenue to verify titles, liens, and stolen status; there is a $5 per submittal fee or a $500 annual option for recyclers, with funds used by the Motor Vehicle Division for training and improvements.
• Licensed automotive dismantlers/parts recyclers and secondary metals recyclers must include NMVTIS IDs on license applications and follow recordkeeping and reporting requirements; a system for electronic submissions and receipts is established.
• For vehicles 12 model years old or newer, liens may be considered satisfied after five years unless exceptions apply; electronic lien releases may be required within 10 days; applying for a second title may be needed to continue lien perfection for longer periods.
• The act includes effective dates: Section 1 takes effect January 1, 2012; the remaining sections take effect October 1, 2011.

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

Subjects

Secondary Metals Recyclers