The bill amends Sections 32-7A-5 and 32-7A-16 of the Code of Alabama 1975, relating to the Mandatory Liability Insurance Act. It clarifies the exceptions to the act for inoperable or stored motor vehicles and strengthens the enforcement of registration and insurance requirements. The bill specifies that the chapter does not apply to certain vehicles, including those owned by the government, those regulated by federal or state agencies with adequate financial responsibility filings, and vehicles covered by self-insurance or other insurance laws that meet or exceed minimum requirements. Notably, the bill modifies the exception for inoperable or stored motor vehicles, indicating that this does not exempt the owner from maintaining insurance coverage as per a security agreement, even if the registration and associated license plate have been surrendered.

The bill also outlines penalties for operating a vehicle without proper insurance or registration, including the possibility of impoundment by law enforcement officers. It clarifies that "operating a motor vehicle" includes situations where a vehicle has traveled any distance on a public road, not necessarily requiring an officer to witness the movement. New provisions are added to address situations where a vehicle is stopped by law enforcement or involved in an accident without evidence of registration and insurance. The bill stipulates a graduated response for repeated violations within a two-year registration period, ranging from moving the vehicle to a safe location away from the roadway to impoundment until requirements are met and fees are paid. Towing services are granted a lien on the vehicle for fees related to towing, impoundment, and storage. The act is set to become effective on January 1, 2024.

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