SB224 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Del Marsh
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. (2011-21065)
Summary: SB224 updates Alabama law to allow certain salvage vehicles to be transferred without a title to licensed dismantlers or recyclers, adds owner statements and electronic lien verification, and strengthens recordkeeping, title changes, and penalties.
What This Bill Does
It allows transfer of certain motor vehicles without a title to licensed automotive dismantlers or secondary metals recyclers under defined conditions, with processing by the Department of Revenue. It requires the vehicle owner to provide a statement with information such as vehicle description, VIN, owner and purchaser details, and lien status; the department can cancel the title chain once surrendered. It requires dismantlers/recyclers to maintain detailed records for at least five years, surrender the original title to the department, and use an electronic system to verify liens and theft status, with a five-dollar per-submittal fee or a $500 annual option. It creates a real-time electronic lien verification system to confirm title, lien, and stolen status, with a tracking number for receipts and mandatory electronic submission by licensees. It adds a five-year lien-release rule for liens on vehicles 12 model years old or older, with options to obtain a new title to continue lien perfection, and sets procedures for lien satisfaction and second titles. It includes a special small-value transfer option for certain vehicles under $1,000 and at least 12 years old, allowing transfer without title with a sworn statement and NMVTIS tracking. It introduces decals or emblems for rebuilt vehicles and requires disclosures to buyers about salvage or rebuilt titles, along with inspection and documentation requirements for restoration.

Who It Affects
Owners of salvage or totaled vehicles: may transfer their vehicles to licensed dismantlers or recyclers without a title under specific conditions, but must provide detailed information and could face penalties for noncompliance.
Automotive dismantlers and parts recyclers and secondary metals recyclers: must receive titles, maintain five years of records, surrender titles electronically, use the new lien verification system, and may incur fees; compliance provides immunity from certain lien-related claims if proper procedures are followed.

Key Provisions
Allows transfer of certain motor vehicles without a title to licensed automotive dismantlers/parts recyclers or secondary metals recyclers under defined conditions, with processing by the Department of Revenue.
Requires the vehicle owner to provide a statement containing vehicle description, VIN, ownership and lien information, purchaser details, and NMVTIS ID; the department may cancel the title chain upon surrender.
Licensed dismantlers/recyclers must maintain records for at least five years, surrender the certificate of title to the department electronically, and use the electronic lien verification system to confirm liens and theft status; a $5 per-submittal fee or a $500 annual fee applies for system access.
The Department of Revenue must maintain a real-time online verification system for titles, liens, and stolen status, providing a unique tracking number and enabling electronic transmission of statements; access is limited to licensed entities.
Introduces a five-year rule for lien releases on vehicles 12 model years old or older; requires second-title applications before five years to continue lien perfection, otherwise lien perfection follows existing sections; electronic lien releases may be required.
Adds licensing and penalties related to junk dealers and car crushers; creates penalties for unlicensed activity and forfeiture procedures for equipment used in violations; mandates decals for rebuilt vehicles and requires disclosures about salvage or rebuilt titles to buyers.
Creates a small-value transfer option for vehicles worth $1,000 or less and at least 12 model years old to be transferred to a licensed dismantler without a title, using a sworn statement with specified information and NMVTIS tracking.
Designates flood vehicles (water-damaged) with a 'flood vehicle' title designation and requires disclosure to buyers; outlines procedures for sale and transfer with this designation.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Secondary Metals Recyclers