SB157 Alabama 2019 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

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

SB 157 updates Alabama's mandatory liability insurance law by removing a four-month suspension for repeat violations, allowing voluntary surrender of plates under certain conditions, and reforming funding and definitions.

What This Bill Does

It eliminates the four-month registration suspension for second and subsequent mandatory liability insurance violations and removes suspensions that are older than the current registration period and two prior registration years. It allows a registrant to voluntarily surrender their vehicle registration and license plate before a lapse in liability coverage or within 30 days from notice if the vehicle is inoperable or stored, with at most one surrender per registration period. It updates definitions related to liability insurance and registration and adjusts how reinstatement fees are collected, remitted, and used, including new rules for the Special Licensing Officials’ Fund and its permitted uses. It requires a uniform process for disposing of unused or surrendered license plates by licensing officials.

Who It Affects

• Vehicle owners/registrants who may face fewer suspensions, can use the voluntary surrender option under certain conditions, and must meet updated insurance and fee requirements.
• Licensing officials, county offices, circuit clerks, the Administrative Office of Courts, and the Department of Revenue, who will administer reinstatement fees, plate surrender/disposal procedures, and fund rules.

Key Provisions

• Eliminate the four-month suspension of vehicle registration for second and subsequent mandatory liability insurance violations and remove suspensions that are older than the current registration period and two prior registration years.
• Allow voluntary surrender of vehicle registration and associated license plate prior to a lapse in liability coverage or within 30 days from the department notice date when the vehicle is inoperable or stored, with no more than one surrender per registration period.
• Update definitions related to liability insurance and registration (e.g., certificates of insurance, online insurance verification, owner/registrant terms) to align with the new framework.
• Reform the Special Licensing Officials’ Fund: adjust the cap, allowed uses, and remittance rules for reinstatement fees; specify how funds are distributed between officials and counties and used for taxpayer education and office improvements.
• Provide a uniform process for disposing of unused and surrendered license plates by licensing officials.

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