HB394 Alabama 2019 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2019

Title

Motor vehicles, unclaimed motor vehicles, title hold, further provided, bond requirement, provided, Secs. 32-8-84, 32-13-2, 32-13-3 am'd.

Summary

HB 394 updates Alabama rules for unclaimed and abandoned motor vehicles by adding a title hold, required owner and lienholder notices, NMVTIS checks, and a bond requirement for non-bonded sellers.

What This Bill Does

It defines when a motor vehicle becomes unclaimed, requires reporting to the Department of Revenue within five days, and places a title hold of 45 to 60 days on the vehicle. It requires use of NMVTIS to identify the owner and lienholder and to mail notices with a 30-day redemption period; if not redeemed, the vehicle can be sold under the Abandoned Motor Vehicle Act. It also introduces a bond requirement for sales by non-bonded agents, imposes notice and recordkeeping duties, and sets terms for auctions and title transfer, including special handling for salvage titles and theft cases.

Who It Affects

• Vehicle owners and lienholders: must be notified about unclaimed vehicles, have a chance to redeem within 30 days, and risk loss of ownership or liens if the vehicle is abandoned and sold.
• Sellers of abandoned vehicles (including non-bonded agents): must follow new procedures (NMVTIS checks, title holds, notices, public auctions, and bond requirements for non-bonded sellers) and keep records for several years; failure to follow rules can void a sale.

Key Provisions

• Unclaimed motor vehicles are defined by specific 48-hour thresholds on public roads or property, triggering reporting to the Department of Revenue within five days.
• A title hold of 45 to 60 calendar days is placed on the vehicle's title, during which no title can be issued unless conditions allow.
• NMVTIS must be used to determine the current title state and to locate the owner and lienholder, with records requests sent within five days of reporting unclaimed.
• Notice to the owner and lienholder must be sent by certified mail with a 30-day redemption period; if not redeemed, the vehicle may be abandoned and sold under the Alabama Abandoned Motor Vehicle Act.
• A bond is required for sales by sellers who are not bonded agents to obtain title, and purchasers must post a surety bond for title for sales on or after January 1, 2020.
• Public auction notices must be published or posted at least 30 days before the sale, with additional department notice requirements and potential termination of interests at sale.
• Recordskeeping requires retention of notices, NMVTIS records, and related documents for three years after the sale; improper notices can void the sale and preserve ownership and liens.
• If a vehicle is stolen, the department can suspend registration and issue title to the insurer upon settlement until recovery; salvage titles carry special transfer and rebuilding requirements.

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