SB232 Alabama 2023 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

Regular Session 2023

Title

Relating to motor vehicles; establishing the Peer-to-Peer Car Sharing Program Act; to provide for the operation of peer-to-peer car sharing programs in the state; and to amend Section 40-12-222, Code of Alabama 1975, to exclude lessors of peer-to-peer car sharing vehicles from liability for certain taxes on the proceeds of vehicle rental and leasing.

Summary

SB232 would authorize and regulate peer-to-peer car sharing in Alabama, setting rules for operation, insurance, recalls, records, disclosures, and related taxes.

What This Bill Does

It authorizes peer-to-peer car sharing programs to operate in the state and requires them to meet insurance, notification, record-keeping, liability, consumer protection, and safety recall rules. It establishes that, during the sharing period, the program and/or insurers provide primary liability coverage that meets minimum requirements, with specifics on when coverage applies and how disputes are handled. It requires safety recall checks and restricts listing vehicles with recalls until repairs are done, and it mandates lien notices and driver eligibility requirements. It also amends the tax law to treat peer-to-peer car sharing as part of the leasing tax with a 1.5% rate on gross proceeds, subject to certain exemptions, and it requires disclosure of program terms to participants.

Who It Affects

• Shared vehicle owners and drivers: they must register, comply with recalls, maintain required insurance during each car sharing period, and follow program terms, with liability rules and disclosure requirements affecting their financial responsibilities and protections.
• Peer-to-peer car sharing programs, insurers, and vehicle lessors: they must implement program operations (insurance arrangements, record-keeping, disclosures, recall handling), manage liability and indemnification provisions, maintain records, and handle tax obligations related to peer-to-peer vehicle sharing.

Key Provisions

• Authorization and definitions: Creates the Peer-to-Peer Car Sharing Program Act and defines key terms (car sharing, program, owner, driver, shared vehicle).
• Liability and insurance framework: During each car sharing period, the program and/or insurers must provide primary liability coverage meeting minimum limits, with rules for when coverage applies and how disputes are resolved; ownership and driver liabilities are defined with exceptions.
• Recall and safety requirements: Programs must verify safety recalls before listing vehicles and promptly update status if recalls occur, preventing listing until repairs are completed.
• Record-keeping and disclosure: Programs must collect and retain records on vehicle usage, fees, and revenues, and disclose indemnification rights, insurance coverage details, and period-specific coverage to owners and drivers.
• Driver eligibility and records: Programs may list driver eligibility criteria (licensing, age, and other qualifications) and must keep records of drivers and licensing information.
• Tax treatment: Amends Section 40-12-222 to treat peer-to-peer car sharing as part of the leasing tax, establishing a 1.5% privilege or license tax on gross proceeds, with specified exemptions for certain lessors and purchases.
• Effective date: The act becomes effective on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.