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 like "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 a motor vehicle liability insurance policy that recognizes the vehicle's use in the car sharing program. 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 safety recalls, stating that vehicles with outstanding recalls cannot be shared until repairs are completed. It specifies that vehicle owners must be notified of safety recalls and take necessary actions for compliance. The bill also limits the ability of peer-to-peer car sharing programs to seek indemnification from vehicle owners or drivers for economic losses due to breaches of the sharing agreement and requires vehicle owners to certify compliance with sales and use tax obligations. The effective date for the implementation of this act is set for October 1, 2025, aiming to modernize the regulatory framework for peer-to-peer car sharing while ensuring consumer protection and compliance with tax obligations.

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