HB556 Alabama 2016 Session

Summary

Primary Sponsor

Reed IngramRepresentative

Republican

Session

Regular Session 2016

Title

Motor vehicles, titles, fee increased for issuing and processing, Sec. 32-8-6 am'd.

Summary

HB556 would add a $13 processing fee to motor vehicle title transactions and route the funds to prison facility bond payments, with a parallel fee structure for manufactured homes and added record-keeping provisions.

What This Bill Does

It imposes an additional $13 processing fee on each motor vehicle title transaction (in addition to the existing $15) and applies this to manufactured homes under a similar framework. Designated title agents receive a $1.50 per-transaction commission, with the remainder of the fees sent to the Department of Revenue. Proceeds from the $13 fee are distributed as 5% to the Department of Revenue for administration, and the rest to the Alabama Corrections Institution Finance Authority to pay bonds for women's prison facilities and regional prisons, with any excess going to the State General Fund if not needed. The bill also creates NMVTIS verification requirements and record-keeping rules for title records, including a $5 per submittal NMVTIS fee or an annual $500 option, and it introduces a separate $5 fee distribution impacting manufactured home records; the act becomes effective only if SB287 is enacted.

Who It Affects

• Individuals and businesses who apply for motor vehicle titles (applications, replacements, transfers, notices of security interest, etc.) will pay an added $13 per transaction, increasing the total fees for title processing.
• Designated title agents (offices designated to process titles) will receive a $1.50 per-transaction commission, with the rest of the fees remitted to the Department of Revenue.
• The Alabama Department of Revenue will administer the new fees and allocate a portion to its own administrative costs, plus oversee NMVTIS-related procedures.
• The Alabama Corrections Institution Finance Authority will receive the majority of the new proceeds to pay bond principal and interest for prison facilities; any excess funds may go to the State General Fund if not needed.
• Manufactured home owners and dealers will be subject to the same base ($15) and additional ($13) fee structure, plus a $5 Alabama Housing Foundation contribution on certain transactions and NMVTIS-related record-keeping provisions.
• Automotive dismantlers, salvage yards, and secondary metals recyclers will face new NMVTIS verification requirements, must keep detailed records, and could face penalties for violations.

Key Provisions

• Imposes an additional processing fee of $13 on every motor vehicle title transaction, in addition to the existing $15 base fee.
• Proceeds from the $13 fee are distributed as follows: 5% to the Department of Revenue for administrative costs; the remainder to the Alabama Corrections Institution Finance Authority to service bonds for women's prison facilities and regional prisons; any surplus goes to the State General Fund if not needed.
• Manufactured homes are subject to the same $15 base fee plus $13 processing fee structure, with an added $5 fee dedicated to the Alabama Housing Foundation on specified transactions.
• A $5 NMVTIS record/submittal fee (or an annual $500 option) applies to motor vehicle records and is split between the State General Fund and the MV Division for training and improvements; a real-time NMVTIS verification system will be established to check titles, liens, and stolen status.
• The act becomes effective on the first day of the second month after passage, but only if Senate Bill 287 authorizing ACIFA to issue additional bonds is enacted; if SB287 is not enacted, the provisions are void.

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