HB400 Alabama 2014 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2014
Title: Motor vehicle dealers, licenses, uniform licenses, off-site sales, time to obtain license decreased, surety bond, dealer license tags further provided for, penalties, Secs. 40-12-264, 40-12-390, 40-12-391, 40-12-392, 40-12-395, 40-12-396, 40-12-398, 40-12-400 am'd.
Summary: HB400 creates a uniform licensing system for Alabama motor vehicle dealers, standardizes license plates and bonds, tightens off-site sales rules, and strengthens penalties for violations.
What This Bill Does
It requires a uniform motor vehicle dealer license for all dealers except those selling only utility trailers or non-titled trailers, and sets a single license fee by eliminating multiple license categories. It standardizes bond requirements for all licensees and eliminates the need for a separate designated agent bond. It tightens off-site sales rules, requiring an off-site sale license (with a fee per sale) and county licensing, with limits on the number and duration of off-site events and required signage. It reshapes license plates by setting prerequisites for dealer and motorcycle plates, limits on the number of plates a dealer can buy, and provides for enforcement penalties for misuse.

Who It Affects
Motor vehicle dealers (including new, used, motorcycle dealers, as well as reconditioners, rebuilders, and wholesalers) who must obtain a uniform license, purchase plates, and follow new off-site sale rules.
County and state licensing authorities (county license plate issuing officials, judge of probate, and the Alabama Department of Revenue) who administer licenses, collect fees, issue off-site sale licenses, and enforce penalties.

Key Provisions
Establishes a uniform motor vehicle dealer license for all dealers except those selling only utility trailers or non-titled trailers and removes the requirement for multiple license categories.
Standardizes bond requirements for licensees and eliminates the need for a separate designated agent bond (bond amounts specified by license type).
Regulates dealer license plates with defined limits, authorized uses, and demonstration allowances; prohibits certain vehicle uses from plates and requires demonstration permits for payload trips when applicable.
Creates an off-site sale licensing framework: dealers must obtain an off-site sale license from the commissioner (fee per sale) and pay county license taxes; limits include up to three off-site sales per license year and a maximum of 10 days per sale; requires on-site signage and proper identification.
Imposes penalties for violations, including Class A misdemeanors with fines and possible jail time, and penalties for false statements or failing to satisfy liabilities related to the license.
Effective dates: Section 1 takes effect October 1, 2014; Section 2 takes effect August 1, 2014.

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