Motor vehicles, unclaimed, towing, towing company may notify the Revenue Department on the Unclaimed/Abandoned Vehicle Portal immediately after towing
HB167 revises Alabama’s rules for unclaimed motor vehicles, with a particular focus on towing situations. Under current law, a vehicle generally becomes “unclaimed” after being left unattended or stored without the owner’s consent for more than 48 hours, and the person in possession must report it to the Department of Revenue within five calendar days. This bill adds a new option allowing a person who has towed a vehicle to report it immediately after towing, rather than waiting until the vehicle has been unclaimed for five days. It also requires the Department of Revenue to place a 60-day hold on the title record once notice is received, during which no title may be issued unless the transaction predates the unclaimed status or the vehicle is returned to the owner or lienholder.
The bill expands and clarifies the notice and records-search process. A person in possession of an unclaimed vehicle must use the National Motor Vehicle Title Information System to identify the title state of record or most recent registration state, request ownership records, and then send certified-mail notice to the owner and lienholder with detailed information about the vehicle, storage location, fees, and redemption rights. The notice must warn that if the vehicle is not redeemed within 30 days, it may be treated as abandoned and sold under the Alabama Abandoned Motor Vehicle Act. The bill also preserves and clarifies penalties for noncompliance, including forfeiture of certain storage-related claims and liens if reporting or notice requirements are not met, while protecting towing and repair claims from that forfeiture.
HB167 also directs the Department of Revenue to maintain public records of unclaimed vehicles, share vehicle identification number lists without fee, notify law enforcement, and suspend registration or block title issuance for vehicles reported stolen or converted until recovery or correction of the report. It further addresses insurance-company title issuance when a stolen vehicle has been settled and later recovered. The act is set to take effect on October 1, 2025.
The overall sentiment around the bill appears strongly favorable and noncontroversial. In the House, it passed overwhelmingly with 100 yeas and 0 nays, and related motions also passed unanimously or near-unanimously. The lack of recorded opposition and the smooth progression through the chamber suggest broad support for the administrative and procedural changes.
The main point of contention, to the extent one exists, is the balance between streamlining towing-company reporting and preserving owner and lienholder protections. The bill gives towing operators an earlier reporting option, but it also imposes detailed notice, record-search, and hold requirements to prevent premature title issuance and to protect property rights. Any debate would likely center on whether the new immediate-reporting authority is efficient enough to help towing businesses without weakening safeguards for vehicle owners, lienholders, and insurers.
HB167 amends Section 32-8-84 of the Code of Alabama 1975, changing the reporting and title-hold procedures for unclaimed motor vehicles. It creates an immediate reporting option for towed vehicles, requires a 60-day title hold after notice to the Department of Revenue, and reinforces the use of NMVTIS, certified-mail notice, and public recordkeeping. The bill affects towing companies, storage facilities, vehicle owners, lienholders, insurers, law enforcement, and the Department of Revenue by tightening the administrative process for abandoned and stolen vehicles and clarifying when claims and liens may be forfeited.
The bill appears to have broad bipartisan or at least unanimous practical support in the House, with no recorded opposition in the available votes. The vote totals indicate a consensus that the measure is a procedural improvement to vehicle-title and towing administration rather than a controversial policy change.
The principal tension in HB167 is between efficiency for towing operators and due-process protections for owners and lienholders. Supporters would likely favor the ability to report a towed vehicle immediately and the clearer title-hold process, while any concerns would focus on whether the notice timeline, storage-fee disclosures, and 30-day redemption warning adequately protect vehicle owners and lienholders from losing rights too quickly. The bill also touches on stolen-vehicle title handling and insurance settlements, but no specific opposition is reflected in the available record.