HB205 Alabama 2022 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Chris BlackshearRepresentative
Republican
Session: Regular Session 2022
Title: Motor vehicles, motor vehicle dealers, off-site sale or delivery to customer, off-site license not required, Sec. 40-12-395 am'd.
Summary: HB205 changes rules for off-site vehicle sales by dealers, creating licensing requirements and limits to allow certain off-site sales under specific conditions.
What This Bill Does
It lets new and used motor vehicle dealers conduct off-site sales under set limits (up to three events per license year, each up to 10 days, with location rules). It requires facilitators and participating dealers to obtain master and individual off-site sale licenses, and county licenses, plus signage and disclosure. It also clarifies when off-site sales are not required (advertising-only displays, wholesale dealer-to-dealer sales, or sales at a licensed auction location).

Who It Affects
New and used motor vehicle dealers: may conduct off-site sales under defined conditions, must obtain off-site sale licenses and county licenses, and must follow location and signage rules.
Off-site sale facilitators and participating dealers: must obtain a master off-site sale license and individual off-site sale licenses, disclose participating dealers, display required signage, and may face penalties for non-disclosure; counties require license taxes for off-site locations.

Key Provisions
Off-site sales by dealers are allowed under these conditions: up to three off-site events per license year; each event limited to 10 consecutive days; new vehicle off-site sales limited to the dealer's area of responsibility; used vehicle off-site sales limited to the county/city of the permanent location.
Off-site sales may occur without a permanent building, but a temporary sign must identify the facilitator and participating dealers on the sale, with ads in the facilitator's name.
Facilitator must obtain a master off-site sale license ($25 per sale) 10+ days before each sale and list participating dealers and their off-site license numbers; if facilitator and dealer are the same entity, the off-site license may not be required.
Each participating dealer must obtain an off-site sale license ($25) for each off-site sale; if multiple dealers join the same sale, each must have a license.
Dealers must also obtain a county license for the off-site location and pay the county license tax; proof of payment must be provided to the commissioner.
Penalties apply if the facilitator fails to disclose participating dealers; bonded agents face notices of non-compliance and possible suspension/revocation, while non-bonded agents face penalties under existing law.
Advertising-only display at malls, auto shows, or similar locations without actual sales is not considered an off-site sale and does not require a license.
Off-site licenses do not apply to wholesale dealer-to-dealer sales or retail sales by dealers at the permanent location of an auction company licensed as a used dealer or wholesale auction.

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