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 changes how unclaimed and towed motor vehicles are handled by requiring prompt reporting, title holds, and owner notices, with new processes for identifying owners and possible insurer title issuance.

What This Bill Does

It defines unclaimed motor vehicles as those left on a public road for more than 48 hours, left on private property for more than 48 hours without owner consent, or left on private property for repairs and not reclaimed within 48 hours after repairs are completed or a redemption date. It requires anyone in possession of an unclaimed or towed vehicle to report to the Department of Revenue within five days (immediate reporting for towed vehicles) using the Unclaimed/Abandoned Vehicle Portal. After reporting, the department places a 60-day hold on the vehicle’s title and uses NMVTIS and state records to identify the owner and lienholder, then notifies them about the vehicle and redemption terms. If not redeemed within 30 days, the vehicle can be considered abandoned and sold under the Alabama Abandoned Motor Vehicle Act, with penalties for failing to report and potential actions regarding stolen vehicles and insurer titles; the act takes effect on October 1, 2026.

Who It Affects

• Vehicle owners and lienholders: will be notified of unclaimed vehicles, must respond, and may lose their rights or have the vehicle sold if not redeemed within 30 days.
• Tow operators, garages, and property owners in possession of unclaimed or towed vehicles: must report the vehicle promptly, use NMVTIS, and may face liability if they fail to report.
• Law enforcement: receives notices about unclaimed vehicles and related information.
• Insurance companies and vehicle owners in theft cases: titles may be issued to insurers during theft settlements, and registrations can be suspended while theft issues are resolved.

Key Provisions

• Defines unclaimed vehicles with time thresholds for public road (over 48 hours) and private property (over 48 hours without consent or after repair completion/redemption).
• Requires reporting to the Department of Revenue within five days (five days from first unclaimed status; immediate for towed vehicles) via the Unclaimed/Abandoned Vehicle Portal.
• Imposes a 60-day hold on the vehicle title after reporting; title issuance is restricted during the hold unless transactions occurred before unclaimed status or the vehicle is returned to the owner/liens.
• Requires NMVTIS lookup to determine current title state or most recent registration and a records request to obtain owner/liens; mandatory notices to owner and lienholder with location, hours, charges, storage rate, and contact information, plus a 30-day redemption window.
• Provides for public records and law enforcement notices, and penalties for failing to report or notify owners/liens (with certain exceptions for towing/repairs).
• Allows suspension of vehicle registration for theft or conversion; insurer-titled releases for theft settlements; electronic titles to insurers with potential paper titles upon recovery; effective date October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 10, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles & Traffic