The proposed bill establishes the Peer-to-Peer Car Sharing Program Act in Alabama, which sets forth operational requirements for peer-to-peer car sharing programs. Key definitions are provided, including terms such as "car sharing delivery period," "car sharing period," and "shared vehicle." The bill mandates that peer-to-peer car sharing programs assume liability for bodily injury or property damage to third parties during the car sharing period, with a minimum coverage amount that meets state financial responsibility requirements. It also requires that both the shared vehicle owner and driver maintain motor vehicle liability insurance during the car sharing period. Additionally, the bill amends Section 40-12-222 of the Code of Alabama 1975 to introduce a new tax structure for leasing or renting automotive vehicles, including peer-to-peer car sharing, with a tax rate of one and one-half percent on gross proceeds under specific conditions.

Furthermore, the bill outlines the responsibilities of peer-to-peer car sharing programs regarding insurance coverage, safety recalls, and record-keeping. It specifies that vehicles with outstanding safety recalls cannot be shared until repairs are completed and that programs must verify the absence of recalls before listing a vehicle. The legislation also limits the ability of car sharing programs to seek indemnification from vehicle owners for economic losses and requires vehicle owners to be informed about potential lien violations. Local rental taxes must be collected by the programs, and outdated legal references are removed. The effective date for the implementation of this act is set for October 1, 2025, aiming to modernize the regulatory and tax framework for peer-to-peer car sharing in Alabama.

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