SB312OAVAMJ-1 ENROLLED: F61TDD-3 By Senator Chambliss RFD:

County5/17/2023 and: Municipal Government First Read:

11-May-23CMH 2023AMENDMENT RegularTO SessionSB312 Page1ST 0CHAMBLISS AMENDMENT TO SB312 EnrolledOFFERED Enrolled,BY AnSENATOR Act,CHAMBLISS 32 Relating4 toReplace theline Mandatory60 Liabilityon Insurancepage Act;3 with the following:

to amend Sections 32-7A-5 and 32-7A-16, Code of Alabama 1975, to further provide for the exceptions to the act for inoperable or stored motor vehicles;

to prohibit the continued operation of a motor vehicle in violation of the registration and insurance requirements.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1.

Sections 32-7A-5 and 32-7A-16, Code of Alabama 1975, are amended to read as follows:

"§32-7A-5 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 whichthat 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.

Page 1 SB312 Enrolled (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 whichthat 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.

provided, however, that this does not relieve or nullify any affirmative duty to maintain insurance coverage pursuant to a security agreement for which the registrantPage has1 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 Page 2 SB312 Enrolled 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 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." "§32-7A-16 (a) A person is guilty of a Class C misdemeanor who:

(1) Operates a motor vehicle without a liability insurance policy, a commercial automobile liability insurance policy, a motor vehicle liability insurance bond, or deposit of cash in accordance with this chapter.

(2) With notice of cancellation, recision, abrogation, or termination of insurance, registers, or attempts to register a motor vehicle.

(b) A person shall be guilty of a traffic violation who:

(1) Operates a motor vehicle and upon demand of a law enforcement officer, fails or refuses to present satisfactory evidence of insurance unless a law enforcement officer verifies motor vehicle liability insurance coverage through the online insurance verification system.

(2) Operates a vehicle the registration of which is suspended or revoked pursuant to this chapter.

(3) Operates a motor vehicle and presents evidence of insurance when there is no valid insurance in effect on the motor vehicle as required by this chapter.

Page 3 SB312 Enrolled (c) A motor vehicle may be impounded at the discretion of a law enforcement officer if the operator fails to provide evidence of registration and insurance as required by this title or Title 40.

Evidence of registration and insurance may be verified through the online insurance verification system and other electronic means as necessary.

(d) For the purposes of this chapter, the reference herein to "operating a motor vehicle" shall be satisfied whenever it is apparent that the vehicle has traveled any distance upon a public road or highway and a law enforcement 95 officer may have only observed the results of finding the vehicle stopped either on or off the public road or highway, as for example when the vehicle has come to a stop after an accident.

Witnessing the operation of the vehicle is not required for a citation to be issued under this chapter.

(e)(1) In no case shall a motor vehicle for which a traffic stop has been conducted or which has been involved in an accident continue to be operated on a public road or highway if the operator of the motor vehicle fails to provide evidence of registration and insurance as required by Section 32-7A-4, this title, or Title 40, and in such event the following shall apply:

a.

For a first violation within a two-year registration period, the law enforcement officer shall direct the motor vehicle to be moved to a place of safety away from the roadway.

b.

For a second violation within a two-year registration period, the law enforcement officer shall direct Page 4 SB312 Enrolled an approved towing service to tow the vehicle to a location of the operator's choice and to release the motor vehicle to the owner, operator, or agent thereof upon payment of any fees associated with the towing, impoundment, and storage of the vehicle.

c.

For a third or subsequent violation within a two-year registration period, the law enforcement officer shall cause the vehicle to be impounded.

The motor vehicle may not be released to the operator, owner, or agent thereof until the requirements of Section 32-7A-4 are satisfied and all reasonable and customary towing, impoundment, and storage fees are paid.