HB400 Alabama 2014 Session

Under existing law, all types of motor vehicle dealers are not required to have a state license to operate or to acquire dealer license plates

This bill would establish a uniform motor vehicle dealer license and license fee for all new and used vehicle dealers, wholesalers, and rebuilders by consolidating existing licenses

The bill would also decrease the time period to obtain an off-site sale event license from 14 days prior to the sale to one day prior to the sale, increase the surety bond to $50,000 for all licensees and eliminate the need for a separate designated agent surety bond, establish the prerequisites for obtaining dealer and motorcycle dealer license plates, and increase the penalty for certain violations

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment

To amend Sections 40-12-264, 40-12-390, 40-12-391, 40-12-392, 40-12-395, 40-12-396, 40-12-398, and 40-12-400, Code of Alabama 1975, relating to motor vehicle dealer license plates and regulatory license requirements; to require a uniform motor vehicle dealer license for all motor vehicle dealers except dealers selling only utility trailers or non-titled trailers; to establish a uniform license fee and eliminate the requirement that new and used motor vehicle dealers obtain multiple license categories to conduct business; to reduce the time period required to obtain an off-site sales event license; to increase the surety bond requirement for all licensees and eliminate the need for a separate designated agent surety bond; to establish prerequisites for obtaining dealer and motorcycle dealer license plates; to further provide for the penalty for violations; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.