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, stating that while these vehicles are exempt from the act, they still must maintain insurance coverage if required by a security agreement. The bill also clarifies that the act does not apply to various categories of vehicles, including those owned by government entities, certain trailers, and vehicles covered by self-insurance or blanket liability policies. Additionally, it removes previous language that allowed for the surrender of registration and license plates when a vehicle is no longer covered by liability insurance.

Furthermore, the bill establishes stricter penalties for operating a motor vehicle without proper registration and insurance. It introduces a tiered response for law enforcement officers based on the number of violations within a two-year registration period. For a first violation, the vehicle must be moved to safety; for a second, it can 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 met. The bill 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