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Bill would require online rental platforms to register damage guarantees with state insurance regulator
Summary
HB 296 would require large online short‑term rental platforms to register service or warranty agreements with the Alabama Department of Insurance so property owners have a contractual remedy for damage; sponsors said brick‑and‑mortar managers are exempt and platform counsel is working on statutory compliance with the Tourism Protection Act.
Representative Brown told the Senate committee HB 296 would require online rental platforms such as Airbnb and VRBO to register any service or warranty agreement with the Alabama Department of Insurance so property owners have a contractual remedy if a renter damages a home. "It just says that they have to have an agreement signed with the Department of Insurance that they'll make you whole if something happens," Representative Brown said.
The bill exempts brick‑and‑mortar rental companies, supporters said, and is intended to give owners clarity and a regulated route to recovery. Senator Elliot cautioned that the measure overlaps with the 2024 Tourism Protection Act, which designates a local professional property management company as the merchant of record for taxed accommodation transactions. "The company that your bill relates to is violating this statute currently," Senator Elliot said, urging the sponsors to resolve a merchant‑of‑record conflict before floor consideration.
Senator Coleman said she supported the bill’s consumer protections but asked for clarity about which platforms or contracts might be out of compliance with the Tourism Protection Act. Brad Neil introduced himself to the committee and offered to follow up with technical language and amendments. Committee members agreed to circulate any proposed amendments and platform counsel materials before the bill reaches the floor.
Senator Elliot moved HB 296 and the committee gave the bill a favorable report on a unanimous voice vote. The committee did not adopt a recorded roll‑call tally beyond the favorable report announcement; the clerk recorded the outcome as "favor report." The next step is floor scheduling and any amendments offered by platform counsel to address merchant‑of‑record concerns.
Ending: The committee advanced HB 296 to the full Senate after the exchange; sponsors said they will work with platform attorneys and local property managers to ensure the bill’s provisions and the Tourism Protection Act are not in conflict.
