HB167 Alabama 2025 Session

Summary

Primary Sponsor

Allen TreadawayRepresentative

Republican

Session

2025 Regular Session

Title

Motor vehicles, unclaimed, towing, towing company may notify the Revenue Department on the Unclaimed/Abandoned Vehicle Portal immediately after towing

Summary

HB167 lets tow yards report unclaimed towed vehicles immediately to the Revenue Department via the Unclaimed/Abandoned Vehicle Portal and updates the notification and title procedures tied to those vehicles.

What This Bill Does

It amends existing law to allow immediate reporting of a towed vehicle as unclaimed to the Department of Revenue. It requires use of NMVTIS to verify the vehicle’s title status and to obtain owner or lienholder information from the relevant state, with fallback to the most recent state if no NMVTIS record exists. It creates a 60-day title hold after notice to the owner or lienholder, requires certified mail notices with key details, and sets a 30-day redemption window before the vehicle is considered abandoned and may be sold under the Abandoned Motor Vehicle Act. It also requires public record maintenance, law enforcement notice, and allows for possible registration suspension in theft cases and for titles to be issued to insurers in stolen-vehicle settlements until recovery.

Who It Affects

• Tow yards or other persons in possession of a towed motor vehicle, who must report unclaimed status promptly and follow NMVTIS-based procedures.
• Vehicle owners and lienholders, who will be notified and must respond within defined timeframes, with a 60-day title hold and a 30-day redemption period prior to abandonment.
• Law enforcement and the Department of Revenue, which receive notices, maintain records, and oversee holds and potential registration actions.
• Insurance companies, which may receive titles in stolen-vehicle cases and hold them until recovery.
• Private and public property owners, who are affected by definitions of unclaimed vehicles on property and related procedures.

Key Provisions

• A towed motor vehicle may be reported as unclaimed immediately after towing to the Department of Revenue via the Unclaimed/Abandoned Vehicle Portal.
• The reporting process requires a NMVTIS check to determine the current title state, with a records request to the current title state or most recent state to identify the owner and lienholder.
• A 60-calendar day hold is placed on the title after notice to the owner or lienholder; if the vehicle was returned before the hold ends, the reporter must notify the department within five days.
• Notice to the owner and lienholder must be sent by certified mail with details on location, charges, storage rate, and contact information; the notice must state that if not redeemed within 30 days, the vehicle may be deemed abandoned and sold under the Alabama Abandoned Motor Vehicle Act.
• If the vehicle is not redeemed, it may be sold under the Abandoned Motor Vehicle Act; failure to report or notify can result in forfeiture of garage/storage liens (but not towing/repair liens).
• The department will maintain public records of unclaimed vehicles and provide notices to law enforcement; notice is also given to the reporting party if the vehicle is stolen.
• The department may suspend vehicle registration if theft or conversion is reported; a title may be issued to an insurance company in stolen-vehicle cases until recovery.
• If stolen, the title may be issued electronically to the insurer until recovery, then may be issued in paper form upon recovery.
• Effective date: October 1, 2025.

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

Subjects

Motor Vehicles & Traffic