HB244 Alabama 2020 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Randy WoodRepresentative
Republican
Session: Regular Session 2020
Title: Revenue and taxation, motor vehicle wholesale auction licensing, auction transit license plates, provided, Secs. 40-12-264, 40-12-447 am'd.
Summary: HB244 allows licensed motor vehicle wholesale auctions to obtain up to 25 auction transit license plates to move vehicles to and from auctions, adds supplemental licenses for extra locations, and requires blanket liability insurance for vehicles used in the program.
What This Bill Does
The bill expands the number of auction transit license plates available to a wholesale auction (up to 25) for transporting vehicles to and from auctions. It continues to limit use of these plates to transport to the auction and not for other service or commercial purposes. It also requires each additional place of business for a licensed auction to have a supplemental license and obligates the auction to carry blanket liability insurance on vehicles operated in the program, with proof filed when applying; penalties apply if coverage is not maintained. Fees for the plates (a $5 per seven-day plate plus a $2 issuance fee per plate) remain, and additional plates can be authorized under reporting requirements.

Who It Affects
Licensed motor vehicle wholesale auctions that transport vehicles to and from auctions (they gain the ability to use up to 25 auction transit plates and must obtain supplemental licenses for additional locations and maintain blanket liability insurance).
Wholesale auctions with multiple locations (they must obtain a supplemental license for each additional place of business).

Key Provisions
A motor vehicle wholesale auction may purchase up to 25 auction transit license plates to transport vehicles to and from auctions, replacing the prior limit of seven-day plates; each plate incurs a $5 fee and a $2 issuance fee.
An additional supplemental license is required for each extra location of a licensed auction, with associated application fees for each location.
Auction operators must maintain blanket motor vehicle liability insurance on vehicles used in the program and file evidence of this insurance with the license application; failure to maintain coverage can trigger penalties under existing law.
The act becomes effective October 1, 2020.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Revenue Department