HB677 Alabama 2013 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Co-Sponsor

Wes Long

Session

Regular Session 2013

Title

Business licenses, Alabama Business License Reform Act, Revenue Department required to implement and administer an online site for applying for, purchasing, and renewing state, and municipal business licenses, Online Filing System Advisory Committee, state business license fee, exceptions provided, Secs. 11-3-11.1, 34-1-11, 34-3-3, 34-9-3, 34-24-50, 34-24-334, 34-33A-12, 40-2A-15, 40-12-2, 40-12-10, 40-12-30, 40-12-391, 40-12-392, 40-12-395, 40-12-398, 40-12-413, 40-16-6 am'd.; Secs. 11-3-11.2, 11-3-11.3, 11-3-11.4, 11-3-11.5, 11-3-11.6, 11-80-10.1, 11-80-11.1 added; Secs. 40-12-3, 40-12-4, 40-12-40 to 40-12-180, inclusive, 40-12-310 to 40-12-319, inclusive, 40-12-393 repealed; Secs. 40-12-4.1 through 40-12-8 renumbered

Summary

The bill creates a statewide online system for applying, purchasing, and renewing state and local business licenses in Alabama, with new fees and phased participation for counties and municipalities.

What This Bill Does

It requires the Department of Revenue (or a contracted vendor) to build and maintain an online license system for state and county licenses, with counties required to join by October 1, 2015 and municipalities by January 1, 2017. It imposes new license fees: a $150 base state license fee for most licensable entities, $50 per additional location, and a $20 fee for sole proprietorships, plus a $15 online access fee; counties may also impose a $50 per-location county license fee. The system becomes the exclusive online method for filing licenses, while old local license laws are repealed or renumbered, and advisory committees/task forces are created to oversee implementation. The bill also sets up enforcement, fee distribution between state and counties, and prorate rules, plus studies to streamline municipal licensing in the future.

Who It Affects

• Licensable entities (corporations, LLCs, sole proprietorships, partnerships, and other entities) operating in Alabama: they would be required to use the online system to apply for, purchase, or renew state and county licenses, pay the new base fees ($150 for most, $20 for sole proprietorships, and $50 per added location), and pay a $15 per-use online access fee; fees are delinquent if not paid by set deadlines, and there are prorations and compliance requirements.
• Counties and municipalities: counties must participate in the online system (with potential to collect a $50 per-location county license fee), and municipalities will eventually participate; local license fees under many local acts are repealed or restructured; counties and municipalities will share in fee proceeds and oversee enforcement through license inspectors and probate judges, with advisory committees guiding implementation.

Key Provisions

• Creation and maintenance of an online filing system by the Department of Revenue (or a vendor) for applying, purchasing, and renewing state and county licenses, to be integrated with existing online systems and with mandatory county participation by October 1, 2015 and municipal participation by January 1, 2017.
• Imposition of new license fees: $150 base state license fee for licensable entities with one or more locations (except sole proprietorships, which pay $20); $50 per additional location for entities with multiple locations; $15 online access fee; counties may impose an additional $50 per location; and prorating rules apply for partial-year operations.
• Exclusive online filing: the online system becomes the sole online mechanism for state and county licenses; counties and municipalities may not operate separate online license systems, though filings can still occur through county probate offices for certain cases.
• Abolition or renumbering of numerous existing license-related sections to align with the online system, with repeal of many county license fee provisions (except specific taxes) and renumbering of statutes (e.g., 40-12 series and related sections).
• Establishment of advisory and task forces: an Online Filing System Advisory Committee to guide system design and operation, and a Municipal Business License Interim Task Force to study and streamline municipal licensing, including composition of members and meeting rules.
• Fee distribution and administration: 70% of the online access fee proceeds go to the Department of Revenue to cover system costs, with the remainder distributed to counties; specific distribution formulas and reporting requirements are set for state and county portions.
• Enforcement and compliance: counties appoint license inspectors; penalties and delinquency rules apply for license fees, with procedures for collecting and remitting fees to appropriate authorities; off-site sales provisions and bonding requirements for certain licensees (e.g., motor vehicle dealers) are included.
• Effective date: the act becomes effective immediately following passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Business Licenses