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 the insurance requirements, this does not eliminate the obligation to maintain insurance coverage if required by a security agreement. The bill also removes previous language that allowed for the surrender of registration and license plates when a vehicle is no longer covered by liability insurance.

Additionally, the bill establishes stricter penalties for operating a motor vehicle without proper registration and insurance. It specifies that if a vehicle is stopped or involved in an accident and the operator cannot provide evidence of registration and insurance, the vehicle may be moved to safety, towed, or impounded depending on the number of violations within a two-year period. The law enforcement officer has the discretion to direct the vehicle's movement or impoundment, with specific procedures outlined for first, second, and subsequent violations. 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