HB42 Alabama 2026 Session

Summary

Primary Sponsor

Allen TreadawayRepresentative

Republican

Session

2026 Regular Session

Title

Motor vehicles; reporting requirements for towed and unclaimed motor vehicles, further provided

Summary

HB42 would allow immediate reporting of towed vehicles as unclaimed, expand notification and title-handling procedures, and set an Oct 1, 2026 effective date for these changes.

What This Bill Does

HB42 would allow a person in possession of a towed motor vehicle to report the vehicle as unclaimed immediately after towing to the Department of Revenue, while preserving the existing five-calendar-day reporting window for other unclaimed vehicles. Reports would be submitted through the Unclaimed/Abandoned Vehicle Portal. The bill also creates a 60-calendar-day hold on the title after notice, requires NMVTIS checks and state-records requests to identify ownership, requires notices to the owner and lienholder with details and a 30-day redemption period, and gives the Department authority to suspend registration if theft or conversion is reported. It also addresses insurer-related title transfers when a stolen vehicle is settled and requires public record maintenance and law enforcement notification.

Who It Affects

• Vehicle owners and lienholders: they would receive detailed notices about unclaimed or towed vehicles, face a 60-day title hold and a 30-day redemption window, and may face a sale if not redeemed.
• Tow operators and other possessors of unclaimed/towed vehicles (and the Department of Revenue): they would have new duties to report immediately after towing, use NMVTIS and the reporting portal, and handle notices and record-keeping.

Key Provisions

• Provision 1: Allows reporting of a towed motor vehicle as unclaimed immediately after towing to the Department of Revenue via the Unclaimed/Abandoned Vehicle Portal; for all other unclaimed vehicles, the five-calendar-day reporting window remains.
• Provision 2: Establishes a 60-calendar-day title hold after notice, requires NMVTIS checks and state-records requests to identify owner, requires certified-mail notices to owner and lienholder with location, hours, charges, storage rate, and redemption instructions (30-day redemption), authorizes possible suspension of registration for theft/conversion, and outlines insurer-title handling with October 1, 2026 as the effective date.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles & Traffic