HB393 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Randy WoodRepresentative
Republican
Session: Regular Session 2019
Title: Motor vehicle dealer licensing, master regulatory dealer license, provided, wholesale motor vehicle auction license provided, Secs. 40-12-445 to 40-12-450, inclusive, added; Secs. 40-12-264, 40-12-390 to 40-12-393, incl., 40-12-395, 40-12-398 am'd.
Summary: HB 393 creates a master regulatory license for motor vehicle dealers, adds a wholesale auction license, tightens penalties, and changes license fees and bond requirements.
What This Bill Does
It requires motor vehicle dealers, rebuilders, and wholesalers to obtain a master dealer license (valid for one year with Oct 1 renewals) and to maintain a qualifying bond. It also creates a new wholesale motor vehicle auction license with record-keeping requirements and restrictions on who can buy at auctions. The bill allows off-site sales under new licensing rules for facilitators and participating dealers, sets limits on off-site events, and adjusts license fees (based on neighboring states) with a potential bi-annual license option beginning in 2022, plus higher civil penalties for violations.

Who It Affects
Motor vehicle dealers, rebuilders, and wholesalers in Alabama: must obtain and renew a master dealer license, post a bond, meet insurance and record-keeping requirements, and follow new rules for handling plates and licenses.
Owners and operators of wholesale motor vehicle auctions and dealer facilitators involved in off-site sales: must obtain wholesale auction and off-site sale licenses, maintain proper books and records, and comply with new penalties and bond requirements.

Key Provisions
Establish Master Dealer License for dealers, rebuilders, and wholesalers; valid for one year from Oct 1; annual renewal with grace period; application and bond requirements.
Bond requirement: master dealer license applicants must post a bond (typically $25,000 to $50,000 or as prescribed) to cover compliance and potential losses; penalties may be charged to the bond.
Off-site sales rules: up to three off-site sales per license year, each lasting up to 10 consecutive days; facilitators and participating dealers must obtain respective off-site licenses (fees apply) and county licenses; signage and disclosure requirements apply.
Wholesale motor vehicle auction license: new article requiring auctions to be licensed, maintain books/records, and sell only to licensed dealers or eligible buyers; annual renewal and associated fees.
License fee changes: starting Oct 1, 2020, master license application fee tied to the average of neighboring states (rounded to the nearest $25); adjustable every five years; potential bi-annual license option available from Oct 1, 2022 with fees not exceeding doubled limits.
Penalties and enforcement: violations can be Class A misdemeanors with civil penalties up to $5,000; penalties may be assessed against the bond; various grounds for suspension, revocation, or denial of licenses.

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