SB152 Alabama 2019 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Session

Regular Session 2019

Title

Vessels, certificate of title, uniform act, requirements, issuance by State Law Enforcement Agency, security agreement, perfection

Summary

The bill would adoption the Uniform Certificate of Title for Vessels Act in Alabama, creating a state system to title vessels, record security interests, and govern transfers and related duties.

What This Bill Does

It requires vessel owners to obtain a certificate of title from the Alabama State Law Enforcement Agency, with an issuance fee. It establishes how security interests in vessels are perfected, recorded, transferred, released, and terminated, and how ownership transfers are recorded—including both electronic and written certificates. It sets rules for title brands (like hull damage), maintenance and public access to records, and provides a transition plan with an effective date of January 1, 2021. It also creates the processes and penalties for noncompliance and outlines fees and administrative details for clerks and agents involved.

Who It Affects

• Vessel owners in Alabama (individuals and businesses) who must apply for and maintain a certificate of title, disclose ownership and security interests, and comply with transfer and branding rules.
• Secured parties, lenders, dealers, buyers in ordinary course of business, insurers, and other parties with security interests or claims in vessels, who will use the title system to perfect, record, release, or transfer interests and respond to notices and termination statements.

Key Provisions

• Adopts the Uniform Certificate of Title for Vessels Act; certificates of title issued by the Alabama State Law Enforcement Agency; title required for vessels with principal use in Alabama (with listed exceptions).
• Application and issuance: requirements for filing an application (owner signatures, contact details, vessel description, hull identification number, vessel number, security interests, transfer details) and a associated $50 processing/issuance fee; titles may be electronic or written.
• Perfection and security interests: security interests in vessels are perfected by delivering a title application identifying the secured party; titles can carry and reflect security interests, with procedures to add, transfer, or release interests and to file termination statements.
• Title brands and penalties: hull-damaged vessels must be branded as hull damaged; penalties of up to $1,000 for owner or insurer noncompliance; insurers have specific filing duties.
• Recordkeeping and public access: the office maintains and indexes title records, keeps security interest data for at least 10 years after termination, and provides public access to most records (with some exceptions); records are searchable by hull ID, vessel number, and owner.
• Fees and administration: a $50 fee applies to several title-related transactions; county licensing officials may act as agents collecting fees; funds go to the Public Safety Fund; there are provisions for replacement certificates and handling of lost/stolen certificates.
• Transition and effective date: act takes effect January 1, 2021; applicability to vessels depends on the date of use or construction and allows voluntary early application for certain large vessels; existing pre-act transactions remain valid under transitional rules.

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

Subjects

Vessels