HB341 Alabama 2019 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2019

Title

Motor vehicle rentals, private motor vehicle rentals, subject to all insurance, taxation, and licensing laws and rules relating to rental of

Summary

HB 341 would bring private motor vehicle rentals under existing Alabama insurance, tax, and licensing laws and create a framework for private rental programs, including required group liability insurance and recall checks.

What This Bill Does

The bill extends existing rental rules to private motor vehicle rentals, requiring program providers to obtain a group liability policy that covers renters and authorized drivers. It requires providers to remit state taxes, register with the Department of Revenue, and treat vehicles used in the program as Class II property for ad valorem taxes, with documentation maintained for three years. It also imposes recall verification requirements, provides protections and disclosure about coverage during rentals, and sets liability rules in disputes and for incidents during the rental period.

Who It Affects

• Private motor vehicle rental program providers (and vehicle owners participating in the programs) – must secure group liability insurance, handle taxes and licensing, collect and report data, maintain recall compliance, and manage notices and potential penalties.
• Renters (and vehicle owners participating in the programs) – will be insured under a group policy during rentals, will receive insurance cards and real-time coverage verification, and must follow recall and usage rules that affect liability and access to coverage.

Key Provisions

• Private motor vehicle rentals must comply with all insurance, license, and tax requirements applicable to motor vehicle rentals, including state and local rules.
• Defines key terms: private motor vehicle, private motor vehicle rental program, program provider, and related concepts to govern the program.
• Program providers must procure a group liability insurance policy that provides primary coverage at least equal to minimum auto liability requirements, names the program provider and vehicle owners as insured, and covers renters and authorized operators during the rental period.
• Program providers must remit privilege or license taxes and register with the Department of Revenue; vehicles in the program are taxed as Class II property, with providers maintaining three years of documentation.
• Program providers must provide renters with an insurance ID card and a real-time verification contact; they must verify recalls and prohibit use of recalled vehicles until repairs are completed.
• In a loss, the program provider is treated as the owner for liability purposes; the group liability and group property/damage insurers handle defense and coverage disputes, with obligations to notify involved insurers of disputes.
• Non-compliance can lead to suspension or termination of the provider’s authority to operate, or fines; airports may charge concession fees and require agreements for program operation at airport property.
• Regulators (Department of Insurance and Department of Revenue) may adopt rules to implement the act; the act becomes effective after governor approval and specified timing.

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