House Bill 114 Alabama 2026 Session

Summary

Primary Sponsor

Chris SellsRepresentative

Republican

Session

2026 Regular Session

Title

Surety bonds and motor fuel assessments; filing period for new or replacement surety bonds extended, payment period for assessments on illegally imported or transported motor fuels extended

Summary

HB114 extends bond filing and payment timelines, updates bond requirements for motor fuel licenses, and strengthens enforcement against illegally imported or transported motor fuels in Alabama.

What This Bill Does

It extends the filing period beyond 30 days for new or replacement bonds for CNG/LNG licensees and fleet producers. It also extends the payment period beyond 30 days for assessments on illegally imported or transported motor fuels. It updates bond amounts and review rules, adds conditions for requiring additional bonds, and clarifies notice and appeal procedures, including potential license cancellation. It also adds seizure, sealing, and potential sale of unlawfully imported/transported motor fuels (and related forfeiture provisions) and notes an exemption for personal CNG producers.

Who It Affects

• Licensees and their sureties (e.g., public sellers of CNG/LNG, fleet producers, suppliers, exporters, importers, distributors, blenders, and terminal operators) who must file or renew bonds, may face additional bond requirements, and could have licenses canceled for noncompliance.
• Owners and holders of motor fuel that is illegally imported or transported (and vehicles/storage facilities used for such fuel) who could have fuel seized, stored, or sold to satisfy tax assessments, with any net proceeds returned to the owner after costs.

Key Provisions

• Bonding changes for licenses (40-17-168.5 and 40-17-335): minimum/required bond amounts and a review every five years to ensure bonds cover twice the average monthly tax liability, with caps (e.g., no more than two months of average excise tax) and provisions for additional bonds when needed.
• Enforcement and penalties for illegal fuels (40-17-353): authority to seize and seal fuel storage, sell seized fuel to satisfy assessments if not paid within 30-60 days, and forfeiture of contraband-related fuel and property to the state; immediate effectiveness upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue