The proposed bill, SB265 Engrossed, establishes the Peer-to-Peer Car Sharing Program Act in Alabama, which sets forth operational requirements for peer-to-peer car sharing programs. It defines essential terms such as "car sharing delivery period," "car sharing period," and "shared vehicle," and mandates that these programs assume liability for bodily injury or property damage to third parties during the car sharing period, with minimum coverage aligned with state financial responsibility requirements. Additionally, both the vehicle owner and driver must be insured under a motor vehicle liability policy that recognizes the vehicle's use in the car sharing program. The bill also amends Section 40-12-222 of the Code of Alabama 1975 to include provisions for the taxation of peer-to-peer car sharing programs, clarifying that these arrangements do not fall under traditional rental agreements.

Furthermore, SB265 outlines the responsibilities of peer-to-peer car sharing programs regarding insurance coverage, safety recalls, and record-keeping. It limits the ability of these programs to seek indemnification from vehicle owners or drivers for economic losses and requires vehicle owners to be informed about potential violations of lien agreements. The bill introduces a privilege or license tax on leasing or renting automotive vehicles at a reduced rate of one and one-half percent, applicable only if the shared vehicle was not subject to sales and use taxes at the time of purchase. It also mandates that local rental taxes be collected and remitted by the programs and removes outdated legal references related to property leasing by public entities. The act is set to take effect on October 1, 2025, aiming to modernize the tax framework for vehicle rentals and promote the peer-to-peer car sharing business model.

Statutes affected:
Introduced: 40-12-222
Engrossed: 40-12-222