SB198 Alabama 2020 Session

Summary

Primary Sponsor

Steve LivingstonSenator

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

SB198 would let licensed motor vehicle wholesale auctions purchase up to 25 auction transit plates to move vehicles to and from auctions, require a supplemental license for each extra location, and mandate blanket liability insurance for vehicles.

What This Bill Does

If enacted, a licensed motor vehicle wholesale auction could purchase up to 25 auction transit license plates to transport vehicles to and from auctions instead of relying on seven-day plates. It would require the auction to obtain a supplemental license for each additional location and to carry blanket motor vehicle liability insurance coverage on vehicles operated on public roads. The bill retains certain fee and usage restrictions, including plate fees and that these plates are only for transport to/from auctions and not for other commercial uses. It also outlines penalties for misuse and requires surrender of plates if licenses are forfeited or business ends.

Who It Affects

• Licensed motor vehicle wholesale auctions in Alabama, who would gain the ability to use up to 25 auction transit plates, must obtain supplemental licenses for additional locations, and must maintain blanket liability insurance.
• The state department (department) responsible for licensing and plate administration, which would collect and manage fees, issue supplemental licenses, and oversee compliance and enforcement.

Key Provisions

• Authorized up to 25 auction transit license plates for licensed motor vehicle wholesale auctions to transport vehicles to and from auctions (in lieu of seven-day plates).
• Requires a supplemental license for each additional place of business/location, with a $5 application fee per location.
• Mandates blanket motor vehicle liability insurance coverage for vehicles operated on public streets by licensees, with evidence filed with the license application.
• Maintains plate-related fees: a $5 fee for seven-day dealer/auction transit plates and a $2 issuance fee, plus a mechanism for additional auction transit plates under reporting rules.
• Plates may only be used to transport vehicles to and from auctions and may not be used for service, rental/lease, or other commercial purposes; misuse carries penalties.
• License plates must be surrendered within 10 days of license forfeiture, revocation, or discontinuing business.
• Effective date: October 1, 2020, after passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Revenue Department