Surety Bond Cancellation Period Extended 30 to 60 Days
Summary
Governor Kay Ivey signed Act 2026-528 on April 15, 2026, amending Sections 40-17-168.5 and 40-17-335, Code of Ala. 1975, to extend the surety bond cancellation notice period from 30 days to 60 days effective immediately. The change applies to all Compressed Natural Gas/Liquefied Natural Gas Surety Bonds and Motor Fuels Surety Bonds on file with the Business and License Tax Division. Affected parties must submit updated bond riders or new bond forms reflecting the 60-day cancellation period by June 1, 2026, or risk license revocation.
“Updated bond documents should be mailed to the address listed below by June 1, 2026.”
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What changed
Act 2026-528 increases the required surety bond cancellation notice period from 30 to 60 days for CNG/LNG and Motor Fuels surety bonds under Alabama Code §§ 40-17-168.5 and 40-17-335. The amendment takes effect immediately upon the Governor's signature on April 15, 2026. All existing bonds on file must be updated to reflect the longer cancellation period by June 1, 2026.
Affected surety bond holders—operators of compressed natural gas, liquefied natural gas, and motor fuels businesses licensed in Alabama—face license revocation if they fail to submit corrected bond documents by the June 1 deadline. Bond principals should contact their surety companies immediately to obtain the required bond rider or updated bond form (B&L: BOND or B&L:CLGBOND) and ensure timely submission to the Motor Fuels Section.
What to do next
- Submit a bond rider reflecting the 60-day cancellation period by June 1, 2026
- Alternatively, provide a new bond form indicating the 60-day cancellation period by June 1, 2026
Penalties
License revocation for failure to provide corrected bond documents
Archived snapshot
Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Category Notices Related Division Business and License
Posted: April 22, 2026 On April 15, 2026, Governor Kay Ivey signed Act 2026-528 which amends Sections 40-17-168.5 and 40-17-335, Code of Ala. 1975, to change the surety bond cancellation period from 30 days to 60 days effective immediately. Therefore, a bond rider must be submitted by the surety company which reflects the change in the cancellation period from 30 days to 60 days. Alternatively, a new bond form indicating the 60 days cancellation period may be provided. This requirement applies to all Compressed Natural Gas/Liquefied Natural Gas Surety Bonds and Motor Fuels Surety Bonds that are currently on file in our office.
New or replacement bonds must be submitted using the updated bond forms (B&L: BOND & B&L:CLGBOND) found at https://revenue.alabama.gov/forms/. Updated bond documents should be mailed to the address listed below by June 1, 2026. Failure to provide the corrected bond documents may result in your license being revoked.
If you have any questions about this notice, contact the Motor Fuels Section.
Contact
Business and License Tax Division
Motor Fuels Section
PO BOX 327540
MONTGOMERY AL 36132-7540
334-242-9608, option 6, option 1
mft@revenue.alabama.gov
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