Senate Bill 109 Alabama 2026 Session

Summary

Primary Sponsor

Chris ElliottSenator

Republican

Session

2026 Regular Session

Title

Peer-to-Peer Car Sharing Program act; requirements for the operation of peer-to-peer car sharing programs, provided

Summary

SB109 creates the Peer-to-Peer Car Sharing Program Act in Alabama, setting rules for operation, insurance, recalls, records, and taxes for peer-to-peer car sharing.

What This Bill Does

It defines key terms and sets the framework for peer-to-peer car sharing programs in Alabama. It requires the program to provide primary motor vehicle liability insurance during each car sharing period, with coverage meeting state minimums and recognizing the program's role in the arrangement. It requires safety recalls to be verified before listing a vehicle and to block listings until recalls are repaired, and it mandates collection and sharing of usage records with vehicle owners and insurers. It also introduces a four percent privilege tax on leasing/renting tangible property (including peer-to-peer car sharing) with local rental taxes starting October 1, 2026, and establishes various related collection and disclosure requirements.

Who It Affects

• Shared vehicle owners: must register and comply with insurance and recall verification requirements; may have liability and indemnification interactions with the program.
• Shared vehicle drivers: must meet eligibility (age 18+ and proper license) and will be insured during the car sharing period; subject to program rules and disclosures.
• Peer-to-peer car sharing programs (platforms): must implement definitions, verify recalls, collect usage data, disclose indemnification terms, provide primary insurance, and collect taxes and fees.
• Motor vehicle insurers: may provide required coverage, may exclude certain coverages, may seek contributions from other insurers, and must handle defense/indemnity responsibilities under the act.
• Local governments and airports: may regulate and impose fees or taxes on peer-to-peer programs, with new local rental tax collection starting Oct 1, 2026.

Key Provisions

• Defines terms such as car sharing period, car sharing start time, and car sharing termination time to govern when a vehicle is in the program.
• Requires the peer-to-peer car sharing program to provide motor vehicle liability insurance during each car sharing period, with minimum coverage at least the state financial-responsibility minimum and primary coverage in certain situations.
• Creates liability rules where the program assumes liability for third-party injuries or property damage during the car sharing period, with specific exceptions for fraud or non-return by the driver.
• Allows insurers to exclude certain coverages (e.g., liability, PIP, UIM, medical payments, comprehensive, collision) but preserves other rights and under existing law cannot be entirely eliminated by the act.
• Requires safety recalls to be verified before listing a vehicle; recalls must be addressed before the vehicle can be listed or re-listed, and owners must notify the program if recalls occur during a car sharing period.
• mandates record collection and verification of all shared-vehicle usage data (usage counts, pickup/drop-off locations, fees paid, owner revenues) and requires sharing records with the owner and insurers upon request; records must be retained for the applicable statute of limitations.
• Exempts the program and owner from certain vicarious-liability theories; clarifies primary liability and contribution mechanisms among the program, owner, and driver when disputes or excluded coverage arise.
• Requires program disclosures in each agreement to inform owners and drivers about indemnification rights, insurance coverage during car sharing, rates/fees, and other operational details, including emergency contact information and recall-related conditions.
• Imposes a tax framework that treats peer-to-peer car sharing as part of the leasing/renting of tangible property, with a 4% privilege tax on gross proceeds and local rental taxes to be collected starting October 1, 2026, along with specified collection rules and exemptions.
• Adds a requirement to verify safety recalls and to suspend or remove a vehicle from listing until recalls are repaired, with procedures for recall notices during active car sharing.

AI-generated summary using openai/gpt-5-nano on Feb 17, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles & Traffic