SB305 Alabama 2014 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Dick Brewbaker
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: SB305 would unify Alabama's motor vehicle dealer licensing, tighten off-site sales rules, raise bonds, and update penalties and license plate provisions.
What This Bill Does
It creates a single uniform motor vehicle dealer license and fee for all new and used dealers, wholesalers, and rebuilders by consolidating existing licenses (excluding those selling only utility or non-titled trailers). It shortens the off-site sale license lead time to one day before the sale, requires a county off-site location license, and increases the surety bond to $50,000 for all licensees while eliminating the separate designated agent bond. It also sets prerequisites for obtaining dealer and motorcycle dealer license plates, tightens penalties for violations, and adds related license plate, insurance, and record-keeping requirements; it includes specific effective dates and references a local-funds amendment with an exception that allows the bill to become law without a 2/3 local-vote requirement under certain conditions.

Who It Affects
Motor vehicle dealers (new, used, wholesalers, and rebuilders) would be affected by a single uniform license, a higher $50,000 bond, new plate rules, and expanded off-site sale rules.
County and local government offices (county license plate issuing officials, judges of probate, and licensing entities) would handle off-site sale licensing and associated county license taxes for off-site locations.

Key Provisions
Establish a uniform motor vehicle dealer license and uniform fee for all dealers except those selling only utility trailers or non-titled trailers.
Consolidate existing licenses so dealers, wholesalers, and rebuilders operate under one license and permit structure.
Reduce the off-site sales event licensing from 14 days to 1 day before the sale and require an off-site license for each participating dealer; limit to three off-site sales per license year with each sale up to 10 days.
Require off-site sales to occur only in approved areas and display a temporary sign identifying the licensee; all advertising must be in the licensee’s name.
Increase the bond to $50,000 for all licensees and eliminate the need for a separate designated agent bond; bonds apply to compliance with license conditions and can support penalties.
Set prerequisites for obtaining dealer and motorcycle dealer plates, establish plate limits, and allow additional plates for high activity (e.g., extensive title transfers).
Tighten penalties for violations, including potential Class A misdemeanor for willful misstatements and civil penalties; license renewal can be denied for unpaid liabilities.
Require blanket motor vehicle liability insurance for vehicles operated by the dealer, including those in inventory; failure to maintain insurance can trigger penalties.

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