SB211 Alabama 2022 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

Regular Session 2022

Title

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

Summary

SB211 adopts the Uniform Certificate of Title for Vessels Act in Alabama, creating a state vessel-title system and standardized security-interest rules.

What This Bill Does

It sets up the Alabama Department of Revenue to issue vessel certificates of title (written or electronic) and requires vessel owners to obtain a title if Alabama is the state of principal use, with an application process and a $20 processing fee. It defines what information must be on the title, how security interests are perfected, transferred, and terminated, and how title brands (like Hull Damaged) are shown. It also establishes record-keeping, public-access rules, penalties for noncompliance, and transition rules for when the act takes effect. The act becomes effective January 1, 2024, with some exceptions and an option for voluntary early adoption for certain larger vessels.

Who It Affects

• Vessel owners in Alabama (where Alabama is the state of principal use) who must apply for and maintain a certificate of title, report ownership and any security interests, and may face penalties if they do not comply.
• Lenders, dealers, and other secured parties and buyers in ordinary course of business who gain defined rights under the act for perfecting, transferring, and prioritizing security interests in vessels, as well as rights related to title brands and transfers.

Key Provisions

• Creates the Office (Alabama Department of Revenue) to issue certificates of title for vessels, either written or electronic, and outlines when titles are required and how they are issued.
• Requires application content, including owner details, vessel description, hull identification number, security interests, and transfer information, plus a $20 processing/issuance fee; defines what constitutes a complete application.
• Allows perfection of security interests by delivering an application or by attachment under existing law, with rules for adding secured parties to certificates, transfer statements, and termination statements; outlines priority and effect on purchasers.
• Introduces title branding such as Hull Damaged and requires insurers to use branding upon transfer; stipulates penalties for noncompliance and requires maintenance of records for public access with certain privacy exceptions.
• Sets transition and effective dates: act applies to vessels after January 1, 2024 (with exceptions for pre-2023 completions and a voluntary early adoption for certain larger vessels); allows rules to be adopted by the Department of Revenue and requires full funding for implementation.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Vessels