The bill SB109 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 coverage amounts meeting state financial responsibility requirements. The bill also requires that both the shared vehicle owner and driver maintain motor vehicle liability insurance that recognizes the vehicle's use in the car sharing program. Key insertions include a requirement for programs to notify vehicle owners of potential lien violations and provisions for insurers to exclude coverage for vehicles used in peer-to-peer arrangements.

Additionally, the bill amends Section 40-12-222 of the Code of Alabama to impose a privilege or license tax on leasing or renting tangible personal property, specifically setting a lower tax rate of one and one-half percent for automotive vehicles involved in peer-to-peer car sharing. It requires shared vehicle owners to certify payment of applicable sales and use taxes and mandates that local rental taxes be collected by peer-to-peer car sharing programs starting October 1, 2026. The bill also addresses safety recalls, requiring vehicle owners to change the status of shared vehicles to unavailable upon receiving a recall notice and to inform the car sharing program if the vehicle is in use during a recall. Overall, SB109 aims to create a comprehensive legal framework for peer-to-peer car sharing, ensuring clarity in responsibilities, liabilities, and insurance coverage.

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