HB327 Alabama 2016 Session

Summary

Primary Sponsor

Randy WoodRepresentative

Republican

Session

Regular Session 2016

Title

Motor vehicles, mandatory liability insurance, enforcement by Law Enforcement Agency, civil procedure, civil penalties under certain conditions, appeals, suspension of driver's licenses

Summary

HB327 creates a civil enforcement system for the state's mandatory motor vehicle liability insurance law, including civil penalties, license suspensions, appeals, and how collected penalties are spent.

What This Bill Does

The Alabama State Law Enforcement Agency will review motor vehicle incidents to determine insurance status. If the agency cannot determine compliance, it may assess a $300 civil penalty and send a notice by mail, with a 45-day window to pay or appeal; failure to pay or appeal can lead to a 90-day driver’s license suspension. There is an informal hearing process and a circuit court appeal path; if the driver is found to be in violation after a hearing, the 90-day suspension becomes final. Reinstatement requires the civil penalty to be paid. Civil penalties are deposited into specified funds, and no criminal penalty applies for the same violation.

Who It Affects

• Drivers involved in motor vehicle incidents or traffic stops who may be uninsured and could face a civil penalty and possible license suspension.
• State agencies and insurers (Alabama State Law Enforcement Agency, Department of Revenue, and auto insurers) that determine insurance status, issue penalties, process appeals, and coordinate the collection and distribution of penalties to public safety funds.

Key Provisions

• Creates civil enforcement procedures for the Mandatory Motor Vehicle Liability Insurance Law by the Alabama State Law Enforcement Agency.
• If insurance status cannot be determined at the time of incident, the agency may assess a $300 civil penalty and notify the driver by mail.
• Driver has 45 days to pay or appeal; failure triggers a 90-day suspension of the driver’s license; extension up to 60 days may be granted with a written settlement.
• Assessment cannot be made more than one year after the incident.
• Hearing procedures are provided; appeals go to circuit court within 35 days after the final order.
• If found in violation after the hearing, the driver’s license is suspended for 90 days and the civil penalty becomes final.
• Reinstatement requires payment of the civil penalty.
• Penalties collected are distributed: 25% to the Motor Vehicle Replacement Fund and 75% to the Highway Traffic Safety Fund (with one-third used for first responder communications and two-thirds to hire state troopers).
• No criminal penalty may be imposed for the same violation after a civil penalty is assessed.
• Act is supplemental and does not repeal conflicting laws; becomes effective on the required date.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles