SB157 Alabama 2019 Session

Summary

Primary Sponsor

Clyde Chambliss Senator

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.

Description

Under existing law, a county license plate issuing official, the circuit clerk of a county, or the Administrative Office of Courts collect a reinstatement fee when a person is applying to have his or her suspension of vehicle registration reinstated for failure to have the mandatory liability insurance required by state law. Second or subsequent violations of the mandatory liability insurance law require a four-month suspension of vehicle registration in addition to the payment of a reinstatement fee. A portion of the reinstatement fees collected by officials are deposited into the Special Licensing Officials’ Fund.

This bill eliminates the four-month suspension of registration for second and subsequent mandatory liability insurance violations and removes suspensions that are older than the current registration period and two prior registration years. This bill allows a registrant to voluntarily surrender their vehicle registration and associated license plate prior to a lapse in liability insurance coverage or within 30 days from the department notice date when the vehicle is inoperable or being stored with no more than one surrender per registration period. This bill also aligns the due date for licensing officials to remit reinstatement fees and updates the cap and authorized uses of the Special Licensing Officials’ Fund.

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Subjects

Insurance