HB210INTRODUCED
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NNHRJT-1
By Representatives Marques, Sorrells, Lee, Paramore, Hammett,
Oliver, Starnes, Clouse, Reynolds, Smith, Lipscomb, Stringer,
Brown
RFD: Military and Veterans Affairs
First Read: 23-Mar-23
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7 NNHRJT-1 03/08/2023 MAP (L)ma 2023-825
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SYNOPSIS:
Under existing law, certain motor vehicles and
operators are exempt from the requirement that every
motor vehicle registered in this state shall be covered
by a liability insurance policy, a commercial
automobile liability insurance policy, motor vehicle
liability bond, or deposit of cash of minimum coverage
limits.
This bill would provide an additional exception
to allow an individual on active military duty, whose
motor vehicle is registered in Alabama but who, as a
result of his or her military assignment, is required
to reside in another state, to satisfy the requirement
for mandatory motor vehicle liability insurance by
purchasing liability coverage in the state where
residing on active military duty or assignment in an
amount equal to or greater than the minimum amount
required in Alabama.
A BILL
TO BE ENTITLED
AN ACT
Relating to mandatory motor vehicle liability
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insurance; to amend Section 32-7A-5, Code of Alabama 1975, to
provide an exception to allow an individual on active military
duty, whose motor vehicle is registered in Alabama but who, as
a result of his or her military assignment, is required to
reside in another state, to satisfy the requirement for
mandatory motor vehicle liability insurance by purchasing
liability coverage in the state where residing on active
military duty or assignment in an amount equal to or greater
than the minimum amount required in Alabama.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 32-7A-5, Code of Alabama 1975, is
amended to read as follows:
"ยง32-7A-5
(a) This chapter shall not apply to any of the
following vehicles or operators:
(1) Trailers as defined in Section 40-12-240,
including, but not limited to, semitrailers, travel trailers,
boat trailers, pole trailers, and utility trailers.
(2) Motor vehicles owned and operated by the United
States or any agency thereof, the State of Alabama, or any
political or governmental subdivision thereof.
(3) Any motor vehicle which is subject to the
supervision and regulation of the Federal Motor Carrier Safety
Administration or the Alabama Public Service Commission and
for which the owner and/or operator has filed evidence of
financial responsibility, the liability under which is not
less than that required of the operator of a motor vehicle
under the terms of this chapter.
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(4) Motor vehicles covered by a certificate of
self-insurance issued by the director under the provisions of
Section 32-7-34.
(5) Other motor vehicles complying with laws which
require the vehicles to be insured in amounts meeting or
exceeding the minimum amounts required under Section
32-7-6(c).
(6) Implements of husbandry as defined in Section
32-8-2.
(7) Any vehicle moved solely by animal power.
(8) Special mobile equipment, as defined in Section
32-8-2.
(9) Inoperable or stored motor vehicles for which the
registrant has surrendered the registration and associated
license plate in accordance with the rules adopted by the
department prior to the motor vehicle no longer being covered
by a liability insurance policy required by this chapter.
(10) Motor vehicles owned by a licensed motor vehicle
dealer, wholesaler, or rebuilder and held in inventory that
are covered by a blanket liability insurance policy or
commercial automobile liability insurance policy.
(11) Vehicles properly registered in another
jurisdiction and not legally required to be registered
pursuant to Chapter 12 of Title 40.
(12) Vehicles owned by a bank, a subsidiary or
affiliate of a bank, or finance company, acquired as an
incident to their regular business, that are covered by a
blanket liability insurance policy or commercial automobile
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liability insurance policy.
(13) Vehicles as prescribed by the commissioner that
are covered by a blanket liability insurance policy or
commercial automobile liability insurance policy.
(b) An individual on active duty with the United States
Armed Forces whose motor vehicle is registered in this state
but who, as a result of his or her military duty or assignment
is required to reside in another state during the registration
period as defined under Section 32-6-61, may satisfy the
requirements of this chapter by purchasing liability coverage
in the state where residing on active military duty or
assignment equal to or greater than the minimum amount
required by Section 32-7A-4 and providing proof of coverage.
An individual's purchase of liability coverage under this
subsection shall not invalidate his or her license or
registration in this state pursuant to Chapter 6 of Title 32. "
Section 2. This act shall become effective January 1,
2024, following its passage and approval by the Governor, or
its otherwise becoming law.
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