The bill amends the Mandatory Liability Insurance Act in Alabama, specifically Sections 32-7A-5 and 32-7A-16 of the Code of Alabama 1975. It introduces new provisions regarding inoperable or stored motor vehicles, clarifying that while these vehicles are exempt from certain insurance requirements, they still must maintain insurance coverage if stipulated by a security agreement. The bill also removes previous language that required the registrant to surrender registration and license plates when a vehicle is no longer covered by liability insurance. Additionally, it outlines the consequences for operating a vehicle without proper registration and insurance, including the potential for impoundment based on the number of violations within a two-year period.

Furthermore, the bill establishes a tiered response for law enforcement when a driver fails to provide evidence of registration and insurance. For a first violation, the vehicle will be moved to a safe location; for a second violation, it will be towed at the operator's expense; and for a third or subsequent violation, the vehicle will be impounded until all legal requirements and fees are satisfied. The act is set to take effect on January 1, 2024, following approval by the Governor.

Statutes affected:
Introduced: 32-7A-5, 32-7A-16
Engrossed: 32-7A-5, 32-7A-16
Enrolled: 32-7A-5, 32-7A-16