Motor Vehicle Wholesale Auctions.

Ala. Code tit. 40, ch. 12, art. 10

in effect

Ala. Code § 40-12-445 Definitions.

40-12-445. Definitions. As used in this article, the following words shall have the following meanings: (1) AUTOMOTIVE DISMANTLER AND PARTS RECYCLER. As defined in Section 40-12-410. (2) COMMISSIONER. The Commissioner of Revenue. (3) DEPARTMENT. The Department of Revenue. (4) MOTOR VEHICLE. As defined in Section 40-12-390. (5) MOTOR VEHICLE REBUILDER. As defined in Section 40-12-390. (6) NEW MOTOR VEHICLE DEALER. As defined in Section 40-12-390. (7) PERSON. As defined in Section 40-12-240. (8) PLACE OF BUSINESS. The place owned or leased and regularly occupied by a person for the principal purpose of engaging in the business of a wholesale motor vehicle auction from which the wholesale of motor vehicles is conducted and where the books and records required for the conduct of business are maintained and kept. (9) USED MOTOR VEHICLE DEALER. As defined in Section 40-12-390. (10) MOTOR VEHICLE WHOLESALE AUCTION. Any person engaged in the business of buying, selling, exchanging, or facilitating the sale of motor vehicles at wholesale to new or used motor vehicle dealers, automotive dismantler and parts recyclers, and secondary metals recyclers, as defined in Section 13A-8-30, and not to the public. (Act 2019-244, §3.)

Ala. Code § 40-12-446 License Required; Application; Recordkeeping.

40-12-446. License Required; Application; Recordkeeping. (a) A person may not engage in the business of a motor vehicle wholesale auction unless the person is licensed under this article by the department. (b) A person desiring to engage in the business of a motor vehicle wholesale auction shall apply to the department on a form prescribed by the department. The form shall contain all of the following: (1) The legal name of the applicant. (2) The street address of the applicant’s principal place of business. (3) The street address of the applicant’s headquarters, if different from the applicant’s principal place of business. (4) Any additional information as may be required by the department. (c) A motor vehicle wholesale auction shall be required to maintain books, records, and files that shall be accessible and available for inspection by the department during normal business hours on usual business days. The department, by rule, shall establish electronic reporting requirements regarding the sale of motor vehicles at the motor vehicle wholesale auction. (d) Every licensee under this article shall keep books and records in a form prescribed by the department. The books and records shall include purchases, sales or exchanges, and receipts of every motor vehicle purchased or sold or held for sale at the location of the licensee. In addition, the books and records shall include a description of each motor vehicle, which shall include the vehicle identification number of each motor vehicle, together with the name and address of any seller or purchaser of the motor vehicle. (e) A motor vehicle wholesale auction may not sell a motor vehicle or component parts to anyone other than a licensed new or used motor vehicle dealer, automotive dismantler and parts recycler, secondary metals recycler as defined in Section 13A-8-30, or a person with an equivalent license from another jurisdiction. (Act 2019-244, §3.)

Ala. Code § 40-12-447 License Fee; Expiration and Renewal.

40-12-447. License Fee; Expiration and Renewal. (a) An application for a license as a motor vehicle wholesale auction shall be accompanied by a state privilege license fee equal to the fee levied under Section 40-12-392 and any additional fee for issuing licenses as may be otherwise prescribed by law. (b) A privilege license issued to a motor vehicle wholesale auction under this article shall be valid for one year from the first day of October and shall be renewed on October 1 of each year. Thirty days of grace for obtaining the license shall be allowed without penalty. Thereafter, penalties prescribed under this article for delinquent licenses shall be imposed. (Act 2019-244, §3.)

Ala. Code § 40-12-448 Surety Bond.

40-12-448. Surety Bond. (a) Except as provided in subsection (b), before being licensed under this article, a person shall demonstrate proof of responsibility by depositing with the commissioner a continuing surety bond in the amount prescribed under Section 40-12-398 from a company authorized to do business in the state. The bond must be approved by the commissioner, payable to the state, and conditioned upon the faithful observance of all the provisions of this article. The bond must also indemnify any person who suffers a loss by reason of failure to observe the provisions of this article. (b) The department, by rule, may permit a surety bond obtained under Section 40-12-398 to serve in lieu of the surety bond prescribed in subsection (a). (Act 2019-244, §3.)

Ala. Code § 40-12-449 Suspension, Revocation, or Denial of License.

40-12-449. Suspension, Revocation, or Denial of License. (a) Subject to the appeal provisions allowed under Chapter 2A, the commissioner may suspend or revoke a license issued for the willful and intentional failure of the licensee to comply with this article. (b) A license may be revoked or a license application may be denied by the department for any of the following reasons: (1) Fraud practiced or any material misstatement in the license application. (2) Change of condition after a license is granted or the failure to maintain qualification for the license. (3) Skipping title assignment; accepting an open assignment of title whereby the seller has signed the title to transfer ownership without listing the purchaser in the title assignment. (4) Having no established place of business. (5) Failing to properly keep and maintain records. (6) Knowingly dealing in stolen motor vehicles, parts, or accessories. (7) Willful failure to comply with this article or any rule adopted under this article. (8) Disconnecting, turning back, or resetting the odometer of a motor vehicle in violation of state or federal law. (9) Filing a materially erroneous or fraudulent tax return with the department. (10) Revocation as a designated agent, as provided in Section 32-8-34, for failing to faithfully perform his or her duties as a designated agent. (c) Subject to the notice and appeal provisions under Chapter 2A, the commissioner may do any of the following: (1) Refuse to license a person who does not meet the requirements of this article. (2) Cancel the license of a licensee for willful failure to continue to meet the requirements of this article. (3) Refuse, cancel, or revoke a license for a state or federal felony conviction involving theft or for a violation of Chapter 8 of Title 32, relating to the Uniform Certificate of Title and Antitheft Act, or a similar law of another state by an applicant; a licensee; a partner of an applicant; or, in the case of a corporate applicant or licensee, a director or manager of the licensee. (Act 2019-244, §3.)

Ala. Code § 40-12-450 Violations.

40-12-450. Violations. A person who violates this article is guilty of a Class A misdemeanor. In addition, the department may assess against the person a civil penalty of up to five thousand dollars ($5,000). The penalty may be assessed against the bond as provided for in Section 40-12-398. (Act 2019-244, §3.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026