SB286 Alabama 2019 Session

Summary

Primary Sponsor

Steve LivingstonSenator

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

SB 286 would replace multiple motor vehicle licenses with a master regulatory dealer license, create a wholesale motor vehicle auction license, and tighten licensing and off-site sale rules in Alabama.

What This Bill Does

It creates a master regulatory dealer license to replace separate licenses for selling, wholesaling, or rebuilding motor vehicles and adjusts the license fee. It adds a wholesale motor vehicle auction license and makes operating a wholesale auction without the license illegal, with a criminal penalty for violations. It imposes bond requirements, recordkeeping, and a licensing system (annual or bi-annual) for dealers and auctions, including rules for off-site sales. It tightens off-site sale rules by requiring master off-site sale licenses, county licenses, and limits on the number and duration of off-site sales, while noting an exemption related to local funds due to the bill creating a crime.

Who It Affects

• New motor vehicle dealers, used motor vehicle dealers, motor vehicle rebuilders, and motor vehicle wholesalers would switch to a single master regulatory dealer license and face new or adjusted fees and bond requirements.
• Wholesale motor vehicle auction operators and their facilitators would need a wholesale auction license, keep detailed records, and could face criminal penalties for violations.
• County officials and dealer facilitators involved in off-site sales would handle new off-site sale licenses and county licensing requirements, with limits on off-site events and specific display and disclosure duties.

Key Provisions

• Create a master regulatory dealer license to replace separate licenses for sale, wholesale, and rebuilding; set a new license fee structure with an initial fee and potential automatic adjustments; a bi-annual license option may be added starting in 2022.
• Increase civil penalties for willfully acquiring or misusing motor vehicle dealer license plates.
• Establish a wholesale motor vehicle auction license; prohibit operating a wholesale auction without the license; impose a criminal penalty for violations; require books and records and allow electronic reporting.
• Add Article 10 (Section 40-12-445 onward) to regulate wholesale auctions, including definitions, bond requirements for licensees, and specific licensing and recordkeeping rules; require a multi-year bonding requirement and penalties up to civil penalties of $5,000, with penalties potentially charged against the bond.
• Set master dealer license bond requirements of $25,000 to $50,000 (or as prescribed) payable to the commissioner; bond ensures compliance with laws and contracts and can cover penalties.
• Implement off-site sale provisions: limit to three off-site sales per license year, each up to 10 days; require master off-site sale licenses and county licenses; specify signage, disclosure, and participation requirements; provide penalties for facilitators and dealers who fail to disclose participating dealers.
• Fees and licensing administration: initial master license application fee of $25 (subject to later adjustments); fees may be pegged to the average of neighboring states' fees and adjusted every five years; possible bi-annual licensing starting 2022; grace periods and renewal rules.

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