AlabamaSB862026 Regular SessionSenate

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

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

More time to pay fuel assessments

Owners of fuel illegally imported, transported, delivered, stored, or sold in Alabama get more time to pay tax assessments. The law extends the payment window from 30 to 60 days before the commissioner may sell the fuel. Money left after paying the assessment and sale costs must go back to the owner. The extra time does not reduce the tax, interest, or penalties owed. The law takes effect immediately upon enactment.

Stronger bond rules for gas businesses

Alabama public sellers and fleet producers of compressed or liquefied natural gas must provide bonds that protect state tax payments. The minimum is $25,000 or twice their average monthly fuel tax bill, whichever is greater. Beginning January 2023, the department must review bond coverage every five years. When coverage is insufficient, the commissioner may require an extra bond for an unacceptable surety, surety cancellation, or inadequate business finances. The extra bond cannot exceed two months of average excise tax owed; personal, noncommercial compressed natural gas producers remain exempt.

Fuel businesses get longer bond deadlines

Covered Alabama motor fuel and natural gas licensees now have 60 days, rather than 30, to file required bonds. The clock starts when the Department of Revenue mails notice requiring a new, additional, or replacement bond. Licensees can file an appeal during that period where allowed. Missing the deadline can lead to immediate license cancellation. A surety seeking release remains responsible for obligations arising during the full 60-day period.

Sponsors & Cosponsors

Sponsor

Josh Carnley
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 273 • No: 0

House vote • 4/7/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 1243

Yes: 103 • No: 0

House vote • 4/7/2026

Third Reading in Second House

Yes: 102 • No: 0

Senate vote • 2/5/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 284

Yes: 34 • No: 0