HB255 Alabama 2016 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2016
Title: Unfair or deceptive trade practices, by certain new vehicle manufacturers and distributors, to exempt certain manufacturers and distributors of certain engines for certain weight, Sec. 8-20-4 am'd.
Summary: HB255 adds a narrow exemption to Alabama's unfair or deceptive trade practices law for certain engine manufacturers and distributors that supply engines for heavy vehicles (>16,000 GVWR), under strict ownership and access conditions.
What This Bill Does
The bill amends Section 8-20-4 to exempt engine manufacturers or distributors that meet defined criteria from unfair or deceptive trade practices related to new motor vehicle dealerships and warranty facilities. To qualify, the entity must not manufacture other motor vehicles, must have owned/operated a Alabama dealership or warranty repair facility before 2016, may own no more than three such facilities, and must provide dealers with equal access to parts, training, and repair information. This creates a regulated path for engine makers to operate in Alabama without triggering certain penalties, while protecting dealer access to necessary support.

Who It Affects
Engine manufacturers or distributors that manufacture or distribute engines for vehicles with a gross vehicle weight rating over 16,000 pounds and meet all listed eligibility criteria; they would be exempt from certain unfair-trade provisions if they comply.
Alabama motor vehicle dealers and warranty/repair facilities that service engines for heavy vehicles; they would gain protections against coercive practices by exempt manufacturers and would need to receive equal access to parts, training, and information.

Key Provisions
Amends Section 8-20-4 to add a specific exemption for manufacturers/distributors of engines for vehicles with GVWR over 16,000 pounds.
Eligibility criteria include: (i) no other motor vehicle manufacturing; (ii) prior ownership/operation of a Alabama new motor vehicle dealership or warranty repair facility before Jan 1, 2016; (iii) ownership of no more than three such dealerships/facilities in Alabama; (iv) limited service of noncommercial heavy vehicles unless repairs are not reasonably available at a dealer; (v) requirement to provide dealers with equal access to parts, training, and repair information on terms materially equal to those provided to the manufacturer's own facilities.
Purpose is to prevent acts that lessen competition and to ensure dealers have access to required support for repairs; includes conditions to maintain fair competition.
Effective date: becomes law on the first day of the third month after 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: Unfair Trade Practices