HB341 Summary

• Extends insurance, taxation, and licensing requirements applicable to commercial motor vehicle rentals to private motor vehicle rental programs, treating private passenger automobiles and pickup trucks the same as traditional rental vehicles.

• Requires program providers to procure group liability insurance with minimum coverage equal to personal passenger motor vehicle financial responsibility requirements under Alabama law and maintain coverage for renters and authorized occupants during the rental period.

• Designates every private motor vehicle used in a rental program as Class II property for ad valorem tax purposes and requires program providers to register with the Department of Revenue and remit privilege or license taxes on gross rental proceeds.

• Establishes that program providers are deemed vehicle owners for all purposes, including liability, during the rental period and grants their liability insurers duty to defend and indemnify vehicle owners if named as defendants in civil actions arising from rental-period losses.

• Requires program providers to verify that vehicles have no outstanding safety recalls before rental use and remove vehicles from service within 72 hours of notice of any safety recall, with repairs required before vehicles can be rented again.