HB302 Summary

• Amends Alabama's Mandatory Liability Insurance Law to update definitions including commercial automobile liability insurance policies and non-admitted companies.

• Eliminates the four-month suspension period for second and subsequent violations, allowing registration to be reinstated immediately upon payment of $400 reinstatement fee and proof of insurance.

• Allows vehicle owners to voluntarily surrender registration and license plates prior to insurance lapse or within 30 days of department notice when vehicle is inoperable or stored, subject to specific conditions including no accidents or citations during the lapse period.

• Changes the Director definition from "Director of Public Safety" to "Secretary of the Alabama Law Enforcement Agency."

• Updates the Special Licensing Officials' Fund cap from $10,000 to $25,000 and increases the retained fee percentage from 10 percent to 15 percent for licensing officials, with funds used for taxpayer education and equipment improvements related to motor vehicle registration.