HB753 Alabama 2012 Session

Summary

Primary Sponsor

Paul Beckman

Republican

Session

Regular Session 2012

Title

Boats and boating, Conservation and Natural Resources Department, certificate of title required for all vessels and vessel trailers, procedure and requirements, Uniform Certificate Vessel Act adopted, Sec. 33-5-9 am'd

Summary

HB753 would create a Uniform Certificate of Title system for vessels and vessel trailers in Alabama, requiring titles, establishing how they are issued and transferred, and detailing how security interests and branding (like hull-damaged status) are recorded.

What This Bill Does

It requires all vessels and vessel trailers to have a certificate of title and sets up a process for applying through designated agents, paying fees, and receiving either written or electronic titles. It creates rules for recording security interests on titles, transferring ownership, and renewing or canceling titles, including hearings if a title is challenged. It introduces procedures for handling hull-damaged branding, replacement titles for lost or destroyed certificates, and public access to certain records while protecting sensitive information.

Who It Affects

• Vessel owners and co-owners: must obtain and maintain a certificate of title, provide required information, and may transfer ownership or brand the title (e.g., hull-damaged) as applicable.
• Secured parties (lienholders, lenders, and others with security interests): must file and perfect security interests through the title, may issue termination statements, and have access to department records for enforcement or transfer purposes.
• Dealers and manufacturers: act as designated agents to process applications and transfers, collect fees, and may keep administrative fees.
• Purchasers (including buyers in ordinary course of business): protections exist that allow some buyers to take free of a security interest under certain conditions, and buyers’ rights are governed by existing Alabama Title law for non-ordinary-course transactions.
• Insurers: participate in hull-damaged branding and replacement-title processes when transferring or insuring a damaged vessel.

Key Provisions

• Adopts the Uniform Certificate of Title for Vessels Act and requires certificates of title for all vessels and vessel trailers, with certain exceptions (e.g., documented vessels, foreign-documented vessels, vessels under construction).
• Creates an application and issuance system where owners file with a designated agent, pay a fee, and the department issues a certificate of title (written or electronic) within a set timeframe; designated agents may include probate judges or dealers who may charge administrative fees.
• Defines what information must be in an application (owner details, vessel details, security interests, and transfer information) and requires supporting documents; allows hearings if title is rejected or canceled.
• Establishes how titles record security interests, how interests are perfected, and how they appear on certificates; allows adding security interests to a title and outlines the effect of transfers on perfected security interests.
• Outlines transfer of ownership procedures, including how to cancel old certificates and issue new ones, with rules for both written and electronic certificates; provides for transfer-by-law statements when ownership changes by operation of law.
• Introduces hull-damaged branding on titles; requires new certificates or amendments to reflect hull-damaged status during transfers, and sets insurer responsibilities for branding.
• Requires replacement certificates for lost or destroyed certificates and provides a process for surrendering old certificates and issuing replacement records.
• Mandates maintaining and providing access to department records (public records with some exceptions), including information on title brands, security interests, and transfers; allows certain information to be shared for safety or law enforcement purposes.
• Sets specific fee structures (for vessels and vessel trailers), including $10 per application, plus potential $1.50 fee if the agent is a dealer and a $3 administrative fee for probate; funds are directed to applicable state funds.
• Affirms that Alabama law governs vessel titles within the state, with uniform application across states adopting the act; the act becomes effective January 1, 2013.

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

Subjects

Boats and Boating