HB16 Summary: Uniform Certificate of Title for Vessels Act

• Adopts the Uniform Certificate of Title for Vessels Act, requiring vessel owners to obtain a certificate of title from the Alabama State Law Enforcement Agency for vessels where Alabama is the state of principal use.

• Establishes application procedures for certificate of title, with vessel owners required to submit applications within 20 days of ownership transfer or when Alabama becomes the state of principal use.

• Creates a $50 fee per transaction (application, replacement, transfer, or search), plus $15 to the judge of probate; no fee for termination statements or assignee notifications.

• Specifies procedures for perfecting security interests in vessels through delivery of applications to the office, with security interests perfected upon later of application delivery or attachment.

• Includes provisions for title branding (such as "Hull Damaged"), transfer of ownership by voluntary transfer or operation of law, and termination of security interests within specified timeframes.

• Takes effect January 1, 2017, with transitional rules protecting previously perfected security interests for three years or until perfection would have ceased under prior law.