SB224 Alabama 2019 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

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

SB 224 would regulate private motor vehicle rentals in Alabama by extending existing insurance, licensing, and tax requirements to private rental vehicles and mandating group liability insurance for rental programs.

What This Bill Does

It requires private motor vehicle rental programs to follow all applicable insurance, licensing, and tax laws. It requires the program to obtain a group auto liability insurance policy that names the provider and vehicle owner as insured and covers renters and authorized operators during the rental period, with proof of coverage provided to owners and renters. It also requires recalls to be verified and repaired before rental, sets tax and reporting duties for providers (including ad valorem classification of rental vehicles as Class II) and allows airports to require concession agreements.

Who It Affects

• Private motor vehicle rental program providers and vehicle owners, who must obtain group liability insurance, register with the Department of Revenue, pay appropriate taxes, maintain records, and verify recalls.
• Renters and vehicles owners whose vehicles are in rental programs, who receive insured coverage through the group policy, get insurance ID cards, and are subject to recall and liability rules during the rental period.

Key Provisions

• Program providers must procure a group auto liability policy during the rental period, naming the provider and vehicle owner as insured and covering renters and authorized operators, with rates filed and insurers licensed with specified ratings.
• Private motor vehicle rentals are subject to all applicable insurance, licensing, and tax laws, including ad valorem tax treatment of rental vehicles as Class II property, with provider reporting and verification requirements and potential penalties for noncompliance.

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