Alabama 2025 Regular Session

Alabama Senate Bill SB96 Compare Versions

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33 SB96
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55 By Senator Carnley
66 RFD: Banking and Insurance
77 First Read: 05-Feb-25
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12-5 SB96 Enrolled
12+5 SB96 Engrossed
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1414 First Read: 05-Feb-25
15-Enrolled, An Act,
15+A BILL
16+TO BE ENTITLED
17+AN ACT
1618 Relating to salvage vehicle certificates of title; to
1719 amend Section 32-8-87, Code of Alabama 1975; to provide that
1820 Alabama vehicle owners may apply for a salvage certificate of
1921 title if their vehicle is declared a loss in any state; and to
2022 make nonsubstantive, technical revisions to update the
2123 existing code language to current style.
2224 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
2325 Section 1. Section 32-8-87 of the Code of Alabama 1975,
2426 is amended to read as follows:
2527 "ยง32-8-87
2628 (a)(1) Each owner of a motor vehicle and each person
2729 individual mentioned as owner in the last certificate of title
2830 who scraps, dismantles, destroys, or changes the motor vehicle
2931 in such a manner that it is not the same motor vehicle
3032 described in the certificate of origin or certificate of title
3133 shall as soon as practicable cause the certificate of origin
3234 or certificate of title, if any, and any other documents or
3335 information required by the department to be mailed or
3436 delivered to the department for processing.
3537 (2) The department shall, with the consent of any
36-holder of liens noted on the surrendered certificate, shall
37-enter a cancellation upon its records. Upon cancellation of a
38-certificate of origin or certificate of title in the manner
39-prescribed by this section, the department shall cancel all
40-certificates of origin or certificates of title in that chain
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67+(2) The department shall, with the consent of any
68+holder of liens noted on the surrendered certificate, shall
69+enter a cancellation upon its records. Upon cancellation of a
70+certificate of origin or certificate of title in the manner
71+prescribed by this section, the department shall cancel all
7072 certificates of origin or certificates of title in that chain
7173 of title. A certificate of title for the vehicle shall not
7274 again be issued except upon application containing the
7375 information the department requires, accompanied by a
7476 certificate of inspection in the form and content as specified
7577 in this section.
7678 (3) No motor vehicle for which a salvage or junk
7779 certificate has been issued by this state or any other state
7880 shall be driven or operated on the highways or other public
7981 places of this state. A vehicle which is in this state and for
8082 which a salvage certificate has been issued, and the vehicle
8183 is being restored to its operating condition which existed
8284 prior to the event which caused the salvage certificate of
8385 title to issue, may be moved to and from repair points as
8486 necessary by the rebuilder to complete the restoration or may
8587 be moved as permitted by the Department of Revenue department
8688 for inspection or for any other purpose. A valid Alabama
8789 dealer license plate shall be displayed on the vehicle during
8890 its movement. A person An individual who violates this
8991 subsection subdivision shall, upon conviction, be guilty of a
9092 Class A misdemeanor and shall be punishable as required by
9193 law.
9294 (b)(1) When the frame or engine is removed from a motor
9395 vehicle and not immediately replaced by another frame or
94-engine, or when an insurance company has paid money or made
95-other monetary settlement as compensation for a total loss of
96-any motor vehicle, the motor vehicle shall be considered to be
97-salvage.
98-The owner of every motor vehicle in which the total
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125+vehicle and not immediately replaced by another frame or
126+engine, or when an insurance company has paid money or made
127+other monetary settlement as compensation for a total loss of
128+any motor vehicle, the motor vehicle shall be considered to be
129+salvage.
128130 The owner of every motor vehicle in which the total
129131 loss or salvage has occurred and which has a current title
130132 issued in this state or the vehicle is located in this state
131133 at the time of title application or branding or both, or the
132134 owner is an Alabama resident in this state, shall , within 72
133135 hours after the total loss or salvage occurs, shall make
134136 application for a salvage certificate of title and forward to
135137 the department the certificate of origin or certificate of
136138 title to the motor vehicle , whereupon and the department shall
137139 process the certificate of origin or certificate of title in a
138140 manner prescribed by law or regulation rule.
139141 An insurance company which that pays money or makes
140142 other monetary settlement as compensation for total loss of a
141143 motor vehicle shall at the time of payment or monetary
142144 settlement obtain the vehicle's properly assigned certificate
143145 of origin or certificate of title and, as soon as practicable
144146 after receiving it, shall forward it along with their
145147 application for a salvage certificate, to the department for
146148 processing.
147149 In the event the payment or monetary settlement was
148150 made because of the theft of the vehicle, which shall be
149151 considered a total loss as defined in this section, the
150152 insurance company shall forward the vehicle's properly
151153 assigned certificate of origin or certificate of title as
152-provided herein, to the department as soon as practicable
153-after the vehicle is recovered.
154-(2) When a stolen motor vehicle has been reported to
155-the department in compliance with this section and is later
156-recovered, and for which a salvage certificate has been
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183+assigned certificate of origin or certificate of title as
184+provided herein, to the department as soon as practicable
185+after the vehicle is recovered.
186+(2) When a stolen motor vehicle has been reported to
187+the department in compliance with this section and is later
186188 recovered, and for which a salvage certificate has been
187189 issued, the owner recorded on the salvage certificate shall
188190 assign that certificate to the purchaser. A person An
189191 individual who violates this subsection shall, upon
190192 conviction, be guilty of a Class A misdemeanor and shall be
191193 punishable as required by law .
192194 (c) If an insurance company acquires a motor vehicle in
193195 settlement of an insurance claim and holds the vehicle for
194196 resale and procures the certificate of origin or certificate
195197 of title from the owner or lienholder within 15 days after
196198 delivery of the vehicle to the insurance company, and if the
197199 vehicle was not a total loss as defined by this section
198200 subsection (d), the insurance company need not send the
199201 certificate of origin or certificate of title to the
200202 department but, upon transferring the vehicle to another
201203 person individual, other than by the creation of a security
202204 interest, the insurance company shall complete an affidavit of
203205 acquisition and disposition of the motor vehicle on a form
204206 prescribed by the department and deliver the certificate of
205207 origin or certificate of title, affidavit, and any other
206208 documents required by the department to the transferee at the
207209 time of delivery of the motor vehicle.
208210 (d)(1) For the purposes of this section, a total loss
209211 shall occur when an insurance company or any other person
210-individual pays or makes other monetary settlement to a person
211-an individual when a vehicle is damaged and the damage to the
212-vehicle is greater than or equal to 75 percent of the fair
213-retail value of the vehicle prior to damage as set forth in a
214-current edition of a nationally recognized compilation of
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241+shall occur when an insurance company or any other person
242+individual pays or makes other monetary settlement to a person
243+an individual when a vehicle is damaged and the damage to the
244+vehicle is greater than or equal to 75 percent of the fair
245+retail value of the vehicle prior to damage as set forth in a
244246 current edition of a nationally recognized compilation of
245247 retail values, including automated data bases databases.
246248 The compensation for total loss as defined in this
247249 subsection shall not include payments by an insurer or other
248250 person individual for medical care, bodily injury, vehicle
249251 rental, or for anything other than the amount paid for the
250252 actual damage to the motor vehicle. A vehicle that has
251253 sustained minor damage as a result of theft or vandalism shall
252254 not be considered a total loss.
253255 Any person individual acquiring ownership of a damaged
254256 motor vehicle that meets the definition of total loss for
255257 which a salvage title has not been issued shall apply for a
256258 salvage title, other than a scrap metal processor acquiring
257259 such the vehicle for purposes of recycling into metallic scrap
258260 for remelting purposes only. This application shall be made
259261 before the vehicle is further transferred, but in any event,
260262 within 30 days after ownership is acquired.
261263 (e) It shall be unlawful for the owner of any junkyard,
262264 salvage yard, or automotive dismantler and parts recycler or
263265 his or her agents or employees to have in their possession any
264266 motor vehicle which that is junk or salvage or a total loss
265267 when the manufacturer's vehicle identification number plate or
266268 plates, authorized replacement vehicle identification number
267269 plate or plates, or serial plate or plates have been removed,
268-unless previously required to be removed by a statute or law
269-of this state or another jurisdiction. A person An individual
270-who violates this subsection shall, upon conviction, be guilty
271-of a Class A misdemeanor and shall be punishable as required
272-by law.
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299+plate or plates, or serial plate or plates have been removed,
300+unless previously required to be removed by a statute or law
301+of this state or another jurisdiction. A person An individual
302+who violates this subsection shall, upon conviction, be guilty
303+of a Class A misdemeanor and shall be punishable as required
302304 by law.
303305 (f) It shall be unlawful for a person, firm, or
304306 corporation an individual to possess, sell or exchange, offer
305307 to sell or exchange, or to give away any certificate of
306308 origin, certificate of title, salvage certificate of title,
307309 manufacturer's identification number plate or plates,
308310 authorized replacement vehicle identification number plate or
309311 plates, serial plate or plates, or motor vehicle license plate
310312 or plates of any motor vehicle which that has been scrapped,
311313 dismantled, or sold as junk or salvage or as a total loss
312314 contrary to in violation of this section, subsection. An
313315 individual who violates this subsection shall and every
314316 officer, agent, or employee of a person, firm, or corporation,
315317 and every person who shall authorize, direct, aid in or
316318 consent to the possession, sale or exchange, or offer to sell,
317319 exchange, or give away such certificate of origin, certificate
318320 of title, salvage certificate of title, manufacturer's vehicle
319321 identification number plate or plates, authorized replacement
320322 vehicle identification number plate or plates, serial plate or
321323 plates, or motor vehicle license plate or plates contrary to
322324 this section, shall, upon conviction, be guilty of a Class A
323325 misdemeanor and shall be punishable as required by law .
324326 (g) The department is authorized may to issue a salvage
325327 certificate of title for a fee of fifteen dollars ($15), on a
326-form prescribed by the department which shall provide for
327-assignments of this the salvage certificate of title. The
328-salvage certificate of title is to shall replace a certificate
329-of origin or certificate of title required to be surrendered
330-by this section. The department shall prescribe necessary
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357+certificate of title for a fee of fifteen dollars ($15), on a
358+form prescribed by the department which shall provide for
359+assignments of this the salvage certificate of title. The
360+salvage certificate of title is to shall replace a certificate
361+of origin or certificate of title required to be surrendered
360362 by this section. The department shall prescribe necessary
361363 forms and procedures to comply with this subsection.
362364 (h) It shall be unlawful for a person an individual to
363365 sign as assignor or for a person an individual to have in his
364366 or her possession a salvage certificate of title which that
365367 has been signed by the owner as assignor without the name of
366368 the assignee and other information called for on the form
367369 prescribed by the department. A person An individual who
368370 violates this subsection, upon conviction, shall be guilty of
369371 a Class A misdemeanor and shall be punishable as required by
370372 law.
371373 (i) Every owner of a salvage or junk motor vehicle who
372374 sells or transfers the vehicle to any person individual shall
373375 provide at the time of the sale or transfer a properly
374376 executed assignment and warranty of title to the transferee in
375377 the space provided therefor on the salvage certificate of
376378 title or junk certificate of title or as the department
377379 prescribes. A person An individual who willfully violates this
378380 subsection shall, upon conviction, be guilty of a Class A
379381 misdemeanor and shall be punishable as required by law .
380382 (j)(1) The department may issue a certificate of title
381383 to any motor vehicle for which a salvage certificate has been
382384 issued by this or any other state, and the vehicle has, in
383385 this state, been completely restored to its operating
384-condition which existed prior to the event which caused the
385-salvage certificate of title to issue, provided that all
386-requirements of this section have been met.
387-(2) The department may issue a certificate of title for
388-any motor vehicle for which a salvage certificate of title has
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415+this state, been completely restored to its operating
416+condition which existed prior to the event which caused the
417+salvage certificate of title to issue, provided that all
418+requirements of this section have been met.
419+(2) The department may issue a certificate of title for
418420 any motor vehicle for which a salvage certificate of title has
419421 been issued by this or any other state or when the department
420422 has evidence that a salvage title should have been issued by
421423 this or any other state, and the vehicle has been completely
422424 restored outside of this state to its operating condition
423425 which existed prior to the event which caused the salvage
424426 certificate of title to be issued, provided the department is
425427 satisfied that the vehicle was rebuilt in the other state in
426428 accordance with that state's salvage rebuilding laws.
427429 (3) Any motor vehicle for which a certificate of title
428430 has been issued by any state with the notation of junk, parts
429431 car, parts only, nonrebuildable, or when a certificate of
430432 destruction or bill of sale has been issued for transfer of
431433 the vehicle with similar language shall be considered to be a
432434 junk vehicle and shall not be titled in this state.
433435 (4) Notwithstanding any other provision of this
434436 subsection In addition, no certificate of title may be issued
435437 for any vehicle where the frame or the majority of the major
436438 component parts were obtained from a junk vehicle as
437439 previously defined .
438440 (k) Every owner of a salvage motor vehicle designated a
439441 1975 year model and all models subsequent thereto which is in
440442 this state and which has been restored in this state to its
441443 operating condition which existed prior to the event which
442-caused the salvage certificate of title to issue shall make
443-application to the department for an inspection of the vehicle
444-in the form and content as determined by the department. Each
445-application for inspection of a salvage vehicle which has been
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473+operating condition which existed prior to the event which
474+caused the salvage certificate of title to issue shall make
475+application to the department for an inspection of the vehicle
476+in the form and content as determined by the department. Each
474477 application for inspection of a salvage vehicle which has been
475478 so restored shall be accompanied by all of the following:
476479 (1) The outstanding salvage certificate or out-of-state
477480 title previously issued for the salvage vehicle.
478481 (2) Notarized bills of sale evidencing acquisition of
479482 all major component parts ,(listing the manufacturer's vehicle
480483 identification number of the vehicle from which the parts were
481484 removed, if parts contain or should contain the manufacturer's
482485 vehicle identification number ) used to restore the vehicle and
483486 bills of sale evidencing acquisition of all minor component
484487 parts. Notarization shall not be required on bills of sale for
485488 minor component parts; provided , that a notarized bill of sale
486489 which lists the manufacturer's vehicle identification number
487490 of the vehicle from which the parts were removed, if parts
488491 contain or should contain the manufacturer's vehicle
489492 identification number, shall be required for a transmission.
490493 (3) Evidence that the owner is a licensed motor vehicle
491494 rebuilder, as defined in Section 40-12-390, unless otherwise
492495 exempt from the licensing requirement by Chapter 12 of Title
493496 40. Notwithstanding the foregoing, where an owner acquires an
494497 Alabama salvage certificate of title to his or her own vehicle
495498 from his or her insurance company in settlement of a claim, a
496499 prior registration or other documentation that shows that the
497500 owner owned the vehicle prior to the salvage title being
498501 issued may be submitted in lieu of a rebuilder's license.
499-(4) The owner shall also provide a A written
500-affirmation which states by the owner stating all of the
501-following:
502-a. The actions taken to restore the vehicle to its
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531+issued may be submitted in lieu of a rebuilder's license.
532+(4) The owner shall also provide a A written
533+affirmation which states by the owner stating all of the
534+following:
532535 a. The actions taken to restore the vehicle to its
533536 operating condition which existed prior to the event which
534537 caused the salvage certificate to issue.
535538 b. That the owner personally inspected the completed
536539 vehicle and it complies with all safety requirements set forth
537540 by the State of Alabama and any regulations promulgated
538541 adopted thereunder.
539542 c. That the identification numbers of the restored
540543 vehicle and its parts have not, to the knowledge of the owner,
541544 been removed, destroyed, falsified, altered, or defaced.
542545 d. That the salvage certificate document or
543546 out-of-state title certificate attached to the application has
544547 not to the knowledge of the owner been forged, falsified,
545548 altered, or counterfeited.
546549 e. That all information contained on the application
547550 and its attachments is true and correct to the knowledge of
548551 the owner.
549552 f. The An acknowledgment that the owner, as specified
550553 in subsection (r), shall be required to post a bond in
551554 accordance with Section 32-8-36 in the event that the owner
552555 cannot provide any information required in this subsection (k)
553556 or any other information specified by the department.
554557 (l) The application fee for each inspection of a
555558 restored vehicle shall be seventy-five dollars ($75), payable
556559 to the department in a manner as prescribed by the department,
557-which and shall accompany the application.
558-(1) All application fees and title fees received by the
559-department pursuant to this subsection shall be applied toward
560-the personnel and maintenance costs of the vehicle inspection
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589+to the department in a manner as prescribed by the department,
590+which and shall accompany the application.
591+(1) All application fees and title fees received by the
592+department pursuant to this subsection shall be applied toward
590593 the personnel and maintenance costs of the vehicle inspection
591594 program and the vehicle inspection program shall be conducted
592595 by the office of investigations and inspections of the
593596 department. Upon receipt of the application for inspection,
594597 application fee of seventy-five dollars ($75), its supporting
595598 documents, and title fee of fifteen dollars ($15), payable to
596599 the department in a manner as prescribed by the department,
597600 the department shall require an inspection to be made of the
598601 title and the vehicle by qualified agents or law enforcement
599602 officers of the department.
600603 (2) The inspection and certification shall include an
601604 examination of the vehicle and its parts to determine that the
602605 identification numbers of the vehicle or its parts have not
603606 been removed, falsified, altered, defaced, destroyed, or
604607 tampered with; that the vehicle information contained in the
605608 application for certificate of title and supporting documents
606609 is true and correct; and that there are no indications that
607610 the vehicle or any of its parts are stolen. The certification
608611 shall not attest to the roadworthiness or safety condition of
609612 the vehicle.
610613 (m) Component parts are defined as:
611614 (1) PASSENGER VEHICLES.
612615 a. Major components:
613616 1. Motor or engine.
614617 2. Trunk floor pan or rear section and roof.
615-3. Frame or any portion thereof ,(except frame horn ),
616-or, in the case of a unitized body, the supporting structure
617-which serves as the frame, except when it is a part of the
618-trunk floor pan, or rear section and roof.
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647+2. Trunk floor pan or rear section and roof.
648+3. Frame or any portion thereof ,(except frame horn ),
649+or, in the case of a unitized body, the supporting structure
650+which serves as the frame, except when it is a part of the
648651 trunk floor pan, or rear section and roof.
649652 4. Cowl, firewall, or any portion thereof.
650653 5. Roof assembly.
651654 b. Minor components:
652655 1. Each door allowing entrance to or egress from the
653656 passenger compartment.
654657 2. Hood.
655658 3. Each front fender or each rear fender when used with
656659 a rear section and roof.
657660 4. Deck lid, tailgate, or hatchback ,(whichever is
658661 present).
659662 5. Each quarter panel.
660663 6. Each bumper.
661664 7. T-tops, moon roof, or whichever is present.
662665 8. Transmission or trans-axle.
663666 (2) TRUCK, TRUCK TYPE, OR BUS TYPE VEHICLE.
664667 a. Major components:
665668 1. Motor or engine.
666669 2. Transmission or trans-axle.
667670 3. Frame or any portion thereof ,(except frame horn ),
668671 or, in the case of a unitized body, the supporting structure
669672 which serves as the frame.
670673 4. Cab.
671674 5. Cowl or firewall or any portion thereof.
672675 6. Roof assembly.
673-7. Cargo compartment floor panel or passenger
674-compartment floor pan.
675-b. Minor components:
676-1. Each door.
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705+6. Roof assembly.
706+7. Cargo compartment floor panel or passenger
707+compartment floor pan.
708+b. Minor components:
706709 1. Each door.
707710 2. Hood.
708711 3. Grill, except on one ton or smaller trucks.
709712 4. Each bumper.
710713 5. Each front fender.
711714 6. Roof panel and rear cab panel.
712715 7. Each rear fender or side panel.
713716 8. Pickup box.
714717 9. Body or bed.
715718 (3) MOTORCYCLE: COMPONENT PARTS.
716719 a. Engine or motor.
717720 b. Transmission or trans-axle.
718721 c. Frame.
719722 d. Front fork.
720723 e. Crankcase.
721724 (n) A salvage vehicle which that has been restored in
722725 this state to its operating condition which existed prior to
723726 the event which caused the salvage certificate of title to
724727 issue shall be issued a certificate of title which shall
725728 contain the word "rebuilt."
726729 (o)(1) Each salvage vehicle restored or rebuilt in this
727730 state which is required to be inspected by the department
728731 pursuant to subsection (l) and for which a certificate of
729732 title may be issued pursuant to subsection (n) shall be issued
730733 a decal, plate, or other emblem as prescribed by the
731-department to reflect that the vehicle is rebuilt. The decal,
732-plate, or other emblem shall be attached to the vehicle in a
733-place and in a manner prescribed by the department.
734-(2) A person An individual who willfully removes,
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763+a decal, plate, or other emblem as prescribed by the
764+department to reflect that the vehicle is rebuilt. The decal,
765+plate, or other emblem shall be attached to the vehicle in a
766+place and in a manner prescribed by the department.
764767 (2) A person An individual who willfully removes,
765768 mutilates, tampers with, obliterates, or destroys a decal,
766769 plate, or other emblem issued and attached to a salvage
767770 vehicle pursuant to this subsection is guilty of a Class A
768771 misdemeanor punishable as provided by law .
769772 (p) Each person individual who sells, exchanges,
770773 delivers, or otherwise transfers any interest in any vehicle
771774 for which a title bearing the designation salvage or rebuilt
772775 has been issued shall disclose in writing the existence of
773776 this title to the prospective purchaser, recipient in
774777 exchange, recipient by donation, or recipient by other act of
775778 transfer. The disclosure, which shall be made at the time of
776779 or prior to the completion of the sale, exchange, donation, or
777780 other act of transfer, shall contain the following information
778781 in no smaller than 10 point type: "This vehicle's title
779782 contains the designation salvage or rebuilt."
780783 (q)(1) Any motor vehicle for which an insurance company
781784 has paid a total loss due, in part, to being damaged by water
782785 shall be deemed a flood vehicle. The motor vehicle's
783786 certificate of title and every subsequent certificate of title
784787 shall contain the designation "flood vehicle."
785788 (2) Each person individual who sells, exchanges,
786789 donates, delivers, or otherwise transfers any interest for
787790 which a certificate of title bearing the designation flood
788791 vehicle has been issued shall disclose in writing the
789-existence of this designation to the prospective purchaser,
790-recipient in exchange, recipient by donation, or recipient by
791-other act of transfer. The disclosure shall be made at the
792-time of or prior to the completion of the sale, exchange,
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821+vehicle has been issued shall disclose in writing the
822+existence of this designation to the prospective purchaser,
823+recipient in exchange, recipient by donation, or recipient by
824+other act of transfer. The disclosure shall be made at the
822825 time of or prior to the completion of the sale, exchange,
823826 donation, delivery, or other act of transfer and shall contain
824827 the following information in no smaller than 10 point type:
825828 "The certificate of title of this motor vehicle contains the
826829 designation flood vehicle. "
827830 (r) If an owner acquires a salvage vehicle for which a
828831 previous insurer or owner did not properly obtain a salvage
829832 title from this or any other state or the vehicle was rebuilt
830833 by a rebuilder who is no longer licensed as a rebuilder, the
831834 current owner may proceed as provided in subsection (k) and
832835 apply for an inspection of the vehicle. In any case where the
833836 department has determined that an insurer or prior owner did
834837 not properly obtain a salvage certificate of title, a prior
835838 registration or other documentation that shows that the owner
836839 owned the vehicle prior to the notification by the department
837840 may be submitted in lieu of a rebuilder's license.
838841 (s)(1)a. A licensed automotive dismantler and parts
839842 recycler as defined in Section 40-12-410, secondary metals
840843 recycler as defined in Section 13A-8-30, who acquires a motor
841844 vehicle for the purpose of dismantling it or recycling it into
842845 metallic scrap for melting purposes , or any person individual
843846 who crushes a motor vehicle acquired from anyone other than a
844847 licensed automotive dismantler and parts recycler or a
845848 secondary metal recycler, except as provided in subdivision
846849 (2), shall surrender any certificate of title received to the
847-department for cancellation in a manner as prescribed by the
848-department. A notice of cancellation shall be submitted and a
849-receipt of the notice shall be obtained from the department
850-prior to crushing the vehicle or dismantling the vehicle or
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879+(2), shall surrender any certificate of title received to the
880+department for cancellation in a manner as prescribed by the
881+department. A notice of cancellation shall be submitted and a
882+receipt of the notice shall be obtained from the department
880883 prior to crushing the vehicle or dismantling the vehicle or
881884 recycling it into metallic scrap for remelting purposes. A
882885 licensed automotive dismantler and parts recycler or secondary
883886 metals recycler shall file the notice electronically and the
884887 department, at the time of filing, shall provide the filer
885888 with an electronic notice of receipt. The licensed automotive
886889 dismantler and parts recycler or secondary metals recycler
887890 shall maintain the properly assigned original certificate of
888891 title when the notice is filed electronically. The department
889892 shall verify through its records that the title is the current
890893 title of the motor vehicle and that the vehicle is not
891894 reported as stolen prior to issuing the receipt.
892895 b. Each licensed automotive dismantler and parts
893896 recycler, secondary metals recycler, and any other person
894897 individual who crushes a motor vehicle shall maintain records
895898 of every motor vehicle crushed or acquired for the purpose of
896899 dismantling it or recycling it into metallic scrap for
897900 remelting purposes. The records shall be maintained by these
898901 parties for a period of not less than five years and shall
899902 include the vehicle identification number, name and address of
900903 the seller, copy of the seller's state issued driver's driver
901904 license or identification card, the date of sale, and a copy
902905 of the certificate of title surrendered to the department. In
903906 the event that a person an individual crushes a vehicle or
904907 vehicles on behalf of the owner but does not acquire the
905-vehicle or vehicles, that person individual shall maintain a
906-record of the vehicle identification number, and the name and
907-address of the entity for whom the vehicles were crushed, as
908-well as a copy of the person's individual's state issued
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937+vehicles on behalf of the owner but does not acquire the
938+vehicle or vehicles, that person individual shall maintain a
939+record of the vehicle identification number, and the name and
940+address of the entity for whom the vehicles were crushed, as
938941 well as a copy of the person's individual's state issued
939942 driver's driver license or identification card, or state
940943 issued tax ID number if the entity is not a natural person.
941944 For purposes of this chapter, a crushed motor vehicle as
942945 defined in Section 40-12-116 shall not be deemed a motor
943946 vehicle or vehicle ,; provided, however, that any person
944947 individual who is responsible for transforming a motor vehicle
945948 into a crushed motor vehicle is responsible for complying with
946949 this section.
947950 (2) Notwithstanding any other provision of this title
948951 to the contrary, if the owner or authorized agent of the owner
949952 of a motor vehicle has not obtained a title in his or her name
950953 for the motor vehicle to be transferred, he or she may sign a
951954 sworn statement that, in addition to the foregoing conditions,
952955 the vehicle is worth one thousand dollars ($1,000) or less and
953956 is at least 12 model years old. The statement described in
954957 this subsection may be used only to transfer such a motor
955958 vehicle to a licensed automotive dismantler and parts recycler
956959 as defined at in Section 40-12-410 or secondary metals
957960 recycler as defined at in Section 13A-8-30 and shall be used
958961 in lieu of a certificate of title when the motor vehicle is
959962 being dismantled or recycled into metallic scrap. The
960963 department, in consultation with the above industries, shall
961964 promulgate adopt a form for the statement which shall include,
962965 but not be limited to, all of the following information:
963-a. A statement that the motor vehicle shall never be
964-titled again and that it must be dismantled or scrapped.
965-b. A description of the motor vehicle including the
966-year, make, model, and vehicle identification number.
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995+but not be limited to, all of the following information:
996+a. A statement that the motor vehicle shall never be
997+titled again and that it must be dismantled or scrapped.
998+b. A description of the motor vehicle including the
996999 year, make, model, and vehicle identification number.
9971000 c. The license plate number and state of issue of any
9981001 vehicle transporting the motor vehicle being sold.
9991002 d. The name, address, and driver's driver license
10001003 number of the seller.
10011004 e. A certification by the seller that the seller is
10021005 lawfully in possession of the vehicle and the seller is the
10031006 current owner of the vehicle and the seller never obtained a
10041007 title to the motor vehicle in his or her name.
10051008 f. A certification that the motor vehicle meets all of
10061009 the following requirements:
10071010 1. Is worth one thousand dollars ($1,000) or less.
10081011 2. Is at least 12 model years old.
10091012 3. Is not subject to any recorded security interest or
10101013 lien.
10111014 g. An acknowledgment, made under penalties of perjury,
10121015 that the seller realizes this information will be filed with
10131016 the department and that it is a Class C felony to knowingly
10141017 falsify any information on this statement.
10151018 h. The seller's signature and the date of the
10161019 transaction.
10171020 i. The name and address of the business acquiring the
10181021 vehicle.
10191022 j. The unique registration number provided by the
10201023 Administrator of the National Motor Vehicle Title Information
1021-System known as the NMVTIS ID Number.
1022-k. A certification by the business, made under
1023-penalties of perjury, that one thousand dollars ($1,000) or
1024-less was paid to acquire the vehicle.
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1053+Administrator of the National Motor Vehicle Title Information
1054+System known as the NMVTIS ID Number.
1055+k. A certification by the business, made under
1056+penalties of perjury, that one thousand dollars ($1,000) or
10541057 less was paid to acquire the vehicle.
10551058 l. The business agent's signature and date along with a
10561059 printed name and title if the agent is signing on behalf of a
10571060 corporation.
10581061 m. The unique tracking number provided by a Department
10591062 of Revenue system that indicates that the automotive
10601063 dismantler and parts recycler or secondary metals recycler has
10611064 utilized that system to verify that the vehicle is not
10621065 currently reported as stolen and that there is no recorded
10631066 lien or notice of a lien on file or that the department has no
10641067 record of the vehicle. A licensed automotive dismantler and
10651068 parts recycler or secondary metals recycler shall file the
10661069 notice electronically, and the department shall provide the
10671070 filer with an electronic notice of receipt. This statement
10681071 shall be invalid without this tracking number and without the
10691072 purchaser's NMVTIS ID Number.
10701073 n. An acknowledgement acknowledgment by the automotive
10711074 dismantler and parts recycler or secondary metals recycler
10721075 that the motor vehicle will not be crushed or shredded for a
10731076 period of 48 hours not including Saturday and Sunday after the
10741077 initial filing with the department of the notice required in
10751078 this subsection and receipt of such the notice.
10761079 (3) The automotive dismantler and parts recycler or
10771080 secondary metals recycler shall electronically deliver the
10781081 statement required under this subsection to the department
1079-within 72 hours of the completion of the transaction,
1080-requesting that the department cancel the certificate of title
1081-and registration. A transmission of the identical information,
1082-in the identical format as prescribed by the Alabama
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1111+statement required under this subsection to the department
1112+within 72 hours of the completion of the transaction,
1113+requesting that the department cancel the certificate of title
1114+and registration. A transmission of the identical information,
11121115 in the identical format as prescribed by the Alabama
11131116 Department of Revenue department, shall be sent by the
11141117 automotive dismantler and parts recycler or secondary metals
11151118 recycler to the sheriff of the county, or the chief of police
11161119 if located in a municipality, if requested by the sheriff or
11171120 chief of police. The transmittal shall be completed and a
11181121 receipt of the notice, generated at the time of the
11191122 transmittal, shall be obtained from the department before
11201123 dismantling the vehicle or recycling it into metallic scrap
11211124 for remelting purposes. In addition, the automotive dismantler
11221125 and parts recycler or secondary metals recycler shall maintain
11231126 the original signed documents required by this subsection for
11241127 a period of not less than five years. An automotive dismantler
11251128 and parts recycler or secondary metals recycler who has
11261129 complied with the requirements of this section shall be immune
11271130 from, and held harmless from, any claims related to liens
11281131 which were not recorded or a notice of lien was not recorded,
11291132 or stolen vehicles not reported, at the time that the vehicle
11301133 was purchased and the inquiry made and documented with the
11311134 unique tracking number issued by the department.
11321135 (4) Any person individual who knowingly and willfully
11331136 violates this subsection, or any person individual who
11341137 falsifies the statement required under this subsection, or any
11351138 person individual who knowingly and willfully sells a vehicle
11361139 upon which there is an unsatisfied lien, shall be guilty of a
1137-Class C felony. In addition to any punishment rendered, each
1138-person individual convicted shall be subject to the laws
1139-regarding restitution.
1140-(5) Any motor vehicle used to transport another motor
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1169+upon which there is an unsatisfied lien, shall be guilty of a
1170+Class C felony. In addition to any punishment rendered, each
1171+person individual convicted shall be subject to the laws
1172+regarding restitution.
11701173 (5) Any motor vehicle used to transport another motor
11711174 vehicle or crushed motor vehicle illegally sold under this
11721175 section may be seized by law enforcement and is subject to
11731176 forfeiture ordered by the court; provided, however, that no
11741177 motor vehicle used by any person individual in the transaction
11751178 of a sale of such motor vehicle shall be subject to forfeiture
11761179 unless the owner or other person individual in charge of the
11771180 motor vehicle is a consenting or knowing party to the
11781181 commission of a crime, and a forfeiture of the motor vehicle
11791182 is subject to the rights of any lienholder who holds a
11801183 perfected security interest in the motor vehicle so long as
11811184 the lienholder had no knowledge of or consented to the act.
11821185 Whenever property is forfeited under this subsection by order
11831186 of the court, it shall be sold and the proceeds distributed,
11841187 pro rata after payment of all property expenses relating to
11851188 the forfeiture and sale, including any court ordered
11861189 restitution to the owner of the vehicle, satisfaction of any
11871190 liens associated with the vehicle sold in violation of this
11881191 section, and any losses incurred by the automotive dismantler
11891192 and parts recycler or secondary metals recycler to the general
11901193 fund of the state or any county or municipality whose
11911194 department, office, or agency contributed to the investigation
11921195 of the acts resulting in forfeiture, based upon the
11931196 contribution, including expenses, of the department, office,
11941197 or agency, as determined by the court.
1195-(t) The Department of Revenue department shall provide
1196-a system for a real-time online verification of motor vehicle
1197-titles, liens, and stolen vehicle status that can be accessed
1198-by an automotive dismantler and parts recycler or a secondary
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1227+or agency, as determined by the court.
1228+(t) The Department of Revenue department shall provide
1229+a system for a real-time online verification of motor vehicle
1230+titles, liens, and stolen vehicle status that can be accessed
12281231 by an automotive dismantler and parts recycler or a secondary
12291232 metals recycler. The system shall be capable of transmitting
12301233 the information from the statement required pursuant to
12311234 subsection (s) either online or by bulk electronic
12321235 transmission and shall provide a unique tracking number on a
12331236 receipt at the time of the submission that indicates that the
12341237 automotive dismantler and parts recycler or a secondary metals
12351238 recycler has used the system and that at the time of the
12361239 inquiry, the vehicle was not reported as stolen and that there
12371240 were no recorded liens or notices of liens on file associated
12381241 with the vehicle, or that the department has no record of the
12391242 vehicle. The charge assessed for the transmittal of the
12401243 statement required by subsection (s) to the automotive
12411244 dismantler and parts recycler or secondary metals recycler
12421245 shall be five dollars ($5) per submittal. In lieu of a per
12431246 submittal charge, an automotive dismantler and parts recycler
12441247 or a secondary metals recycler may pay an annual fee of five
12451248 hundred dollars ($500) for all submittals and inquiries made
12461249 during that fiscal year. The fee shall be paid on a fiscal
12471250 year basis, beginning October 1 of each fiscal year. Every
12481251 automotive dismantler and parts recycler, secondary metals
12491252 recycler, or person individual or company licensed pursuant to
12501253 Section 40-12-116, shall pay the annual fee for each location
12511254 or license. Any fees collected under this section shall be
12521255 retained by the department for use solely by the Motor Vehicle
1253-Division of the department for training and technological and
1254-processing improvements."
1255-Section 2. This act shall become effective on October
1256-1, 2025.
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1285+retained by the department for use solely by the Motor Vehicle
1286+Division of the department for training and technological and
1287+processing improvements."
1288+Section 2. This act shall become effective on October
12861289 1, 2025.
1287-________________________________________________
1288-President and Presiding Officer of the Senate
1289-________________________________________________
1290-Speaker of the House of Representatives
1291-SB96
1292-Senate 04-Mar-25
1293-I hereby certify that the within Act originated in and passed
1294-the Senate, as amended.
1295-Patrick Harris,
1296-Secretary.
1297-House of Representatives
1298-Passed: 01-Apr-25
1299-By: Senator Carnley
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1295+1, 2025.
1296+Senate
1297+Read for the first time and referred
1298+to the Senate committee on Banking
1299+and Insurance
1300+................05-Feb-25
1301+Read for the second time and placed
1302+on the calendar:
1303+ 1 amendment
1304+................20-Feb-25
1305+Read for the third time and passed
1306+as amended
1307+Yeas 31
1308+Nays 0
1309+Abstains 0
1310+................04-Mar-25
1311+Patrick Harris,
1312+Secretary.
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