SB205 Alabama 2011 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2011

Title

Revenue Department, motor vehicles, mandatory liability insurance, reinstatement fees, deposit of portion in State General Fund after administrative expenses, Sec. 32-7A-9 am'd.

Summary

SB205 would change how net reinstatement fee proceeds for motor vehicles are split between funding the mandatory liability insurance program and the State General Fund.

What This Bill Does

It amends Section 32-7A-9 to require that a portion of the net reinstatement fee proceeds be used to operate and administer the mandatory liability insurance program, with the remaining funds deposited into the State General Fund. It outlines how funds are handled when reinstatement fees are collected by different offices (Administrative Office of Courts, circuit clerks, or county license plate issuing officials), including the creation or funding of specific auxiliary funds and the allocation of certain percentages. It also specifies that 15% of net proceeds may be deposited into the Alabama Peace Officers' Annuity and Benefit Fund, and it sets an effective date for the act.

Who It Affects

• Motor vehicle owners and insurance policyholders: the way reinstatement fee proceeds are allocated will change how much funds are available to run the program versus going to the General Fund, though the actual reinstatement fees owed are not changed by the bill.
• County license plate issuing officials, Administrative Office of Courts, circuit clerks, and related county/court entities: these offices would retain portions of reinstatement fees (various percentages) and deposit funds into designated special funds or state funds, affecting how the money they collect is distributed and used.

Key Provisions

• Amends 32-7A-9 to require the Department of Revenue to use a portion of net reinstatement fee proceeds to pay for the operation and administration of the mandatory liability insurance program; the remainder goes to the State General Fund.
• If reinstatement fees are collected by the county license plate issuing official, 10% may be retained by the official, with the remainder remitted to the department and a specific distribution of the retained portion to the county general fund and the Special Licensing Officials' Fund (cap of $10,000 per fiscal year for the fund; funds beyond cap go to county general fund).
• If reinstatement fees are collected by the Administrative Office of Courts, 15% is retained by AOOC; the rest is remitted to the department; 15% retained by AOOC goes to the Advanced Technology and Data Exchange Fund.
• If reinstatement fees are collected by the circuit clerk, 15% is retained by the circuit clerk (distributed evenly between the circuit clerk’s office and AOOC); funds due to AOOC go to the Advanced Technology and Data Exchange Fund; funds due to the circuit clerk go to the Clerk’s Fund.
• Notwithstanding the general provisions, 15% of the net proceeds received by the department shall be deposited into the Alabama Peace Officers’ Annuity and Benefit Fund.
• The act becomes effective on the first day of the third month after its passage and Governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Revenue Department