HB302 Alabama 2019 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Connie C. Rowe
Republican
Session: Regular Session 2019
Title: Mandatory Liability Insurance Law, definitions updated, eliminate four-month suspension of registration for second and subsequent violations, allow voluntary surrender of vehicle registration and license plate under certain conditions, Secs. 32-7A-2, 32-7A-5, 32-7A-8, 32-7A-11, 32-7A-12 am'd.
Summary: HB 302 updates Alabama's Mandatory Liability Insurance Law to update definitions, remove the four-month registration suspension for second/subsequent violations, allow voluntary surrender of registration and license plates when a vehicle is stored or inoperable, and reform how the Special Licensing Officials’ Fund is funded and used.
What This Bill Does
Updates definitions used in the Mandatory Liability Insurance Law, including terms like certificate of insurance, online insurance verification, and various insurance policy types. Eliminates the four-month suspension of vehicle registration for second and subsequent violations and changes the process for reinstatement and insurance requirements after violations. Allows a vehicle owner to voluntarily surrender the registration and license plate before a lapse in liability coverage or within 30 days after notice if the vehicle is inoperable or being stored, under specified conditions. Reforms the Special Licensing Officials’ Fund by adjusting its due date, cap, and allowed uses, and clarifies how funds are collected, distributed, and used by licensing officials and related offices.

Who It Affects
Vehicle owners and registrants in Alabama: face changes to suspension rules after violations, may surrender registration and plates if the vehicle is stored or inoperable, and must comply with reinstatement fees and insurance requirements.
Licensing officials, counties, and related state offices (e.g., county license plate issuing officials, Administrative Office of Courts, circuit clerks): handle reinstatement fees, manage the Special Licensing Officials’ Fund, oversee plate disposal, and implement the new fund rules and auditing.

Key Provisions
Amends sections 32-7A-2, 32-7A-5, 32-7A-8, 32-7A-11, and 32-7A-12 to reflect updated definitions and procedures for the Mandatory Liability Insurance Law.
Eliminates the four-month suspension of registration for second and subsequent violations and replaces it with revised reinstatement requirements and insurance obligations.
Allows voluntary surrender of vehicle registration and license plates prior to lapse or within 30 days of department notice when the vehicle is inoperable or stored, subject to specified conditions.
Updates the Special Licensing Officials’ Fund, including new due date, cap, and authorized uses (e.g., taxpayer education, equipment/operations improvements), and details on fund administration and distribution.
Specifies how reinstatement fees are collected and distributed (with different handling depending on the collecting entity) and sets penalties for violations, including potential misdemeanor consequences for certain offenses.
Effective date: January 1, 2020.

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