Bill Text: FL S0566 | 2021 | Regular Session | Enrolled


Bill Title: Motor Vehicle Rentals

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Passed) 2021-07-06 - Chapter No. 2021-175 [S0566 Detail]

Download: Florida-2021-S0566-Enrolled.html
       ENROLLED
       2021 Legislature                            CS for CS for SB 566
       
       
       
       
       
       
                                                              2021566er
    1  
    2         An act relating to motor vehicle rentals; amending s.
    3         212.05, F.S.; specifying the applicable sales tax rate
    4         on motor vehicle leases and rentals by motor vehicle
    5         rental companies and peer-to-peer car-sharing
    6         programs; requiring peer-to-peer car-sharing programs
    7         to collect and remit the applicable sales tax;
    8         amending s. 212.0606, F.S.; defining terms; specifying
    9         the applicable surcharge on motor vehicle leases and
   10         rentals by motor vehicle rental companies; specifying
   11         applicability of the surcharge; requiring motor
   12         vehicle rental companies to collect specified
   13         surcharges; specifying the applicable rental car
   14         surcharge on peer-to-peer car-sharing program
   15         agreements involving shared vehicles; specifying
   16         applicability of the surcharge; requiring peer-to-peer
   17         car-sharing programs to collect specified surcharges;
   18         requiring car-sharing services to collect specified
   19         surcharges; defining the term “proceeds of this
   20         surcharge”, rather than “proceeds of the surcharge”;
   21         providing that the surcharge for peer-to-peer car
   22         sharing is attributable to the county corresponding to
   23         the location of the motor vehicle at the car-sharing
   24         start time; requiring a dealer to report collected
   25         surcharge revenue accordingly; providing an exception;
   26         providing for application of a surcharge to a shared
   27         vehicle; creating s. 627.7483, F.S.; defining terms;
   28         specifying motor vehicle insurance requirements for
   29         peer-to-peer car-sharing programs; providing that
   30         peer-to-peer car-sharing programs have an insurable
   31         interest in shared vehicles during specified periods;
   32         providing construction; authorizing peer-to-peer car
   33         sharing programs to own and maintain certain motor
   34         vehicle insurance policies; requiring peer-to-peer
   35         car-sharing programs to assume certain liability;
   36         providing exceptions; providing for the assumption of
   37         primary liability for claims when certain disputes
   38         exist; requiring shared vehicle owners’ insurers to
   39         indemnify peer-to-peer car-sharing programs under
   40         certain circumstances; providing exemptions from
   41         vicarious liabilities for peer-to-peer car-sharing
   42         programs and shared vehicle owners; authorizing motor
   43         vehicle insurers to exclude specified coverages under
   44         certain circumstances; providing construction related
   45         to exclusions; authorizing specified insurers to seek
   46         recovery against motor vehicle insurers of peer-to
   47         peer car-sharing programs under certain circumstances;
   48         requiring peer-to-peer car-sharing programs to provide
   49         certain information to shared vehicle owners regarding
   50         liens; specifying recordkeeping, record retention, and
   51         record-sharing requirements for peer-to-peer car
   52         sharing programs; specifying disclosure requirements
   53         for peer-to-peer car-sharing program agreements;
   54         specifying driver license verification and data
   55         retention requirements for peer-to-peer car-sharing
   56         programs; providing that peer-to-peer car-sharing
   57         programs have sole responsibility for certain
   58         equipment in or on a shared vehicle; providing for
   59         indemnification regarding such equipment; specifying
   60         requirements for peer-to-peer car-sharing programs
   61         relating to safety recalls on a shared vehicle;
   62         providing construction; providing an effective date.
   63          
   64  Be It Enacted by the Legislature of the State of Florida:
   65  
   66         Section 1. Paragraph (c) of subsection (1) of section
   67  212.05, Florida Statutes, is amended to read:
   68         212.05 Sales, storage, use tax.—It is hereby declared to be
   69  the legislative intent that every person is exercising a taxable
   70  privilege who engages in the business of selling tangible
   71  personal property at retail in this state, including the
   72  business of making mail order sales, or who rents or furnishes
   73  any of the things or services taxable under this chapter, or who
   74  stores for use or consumption in this state any item or article
   75  of tangible personal property as defined herein and who leases
   76  or rents such property within the state.
   77         (1) For the exercise of such privilege, a tax is levied on
   78  each taxable transaction or incident, which tax is due and
   79  payable as follows:
   80         (c) At the rate of 6 percent of the gross proceeds derived
   81  from the lease or rental of tangible personal property, as
   82  defined herein; however, the following special provisions apply
   83  to the lease or rental of motor vehicles and to peer-to-peer
   84  car-sharing programs:
   85         1. When a motor vehicle is leased or rented by a motor
   86  vehicle rental company or through a peer-to-peer car-sharing
   87  program as those terms are defined in s. 212.0606(1) for a
   88  period of less than 12 months:
   89         a. If the motor vehicle is rented in Florida, the entire
   90  amount of such rental is taxable, even if the vehicle is dropped
   91  off in another state.
   92         b. If the motor vehicle is rented in another state and
   93  dropped off in Florida, the rental is exempt from Florida tax.
   94         c.If the motor vehicle is rented through a peer-to-peer
   95  car-sharing program, the peer-to-peer car-sharing program shall
   96  collect and remit the applicable tax due in connection with the
   97  rental.
   98         2. Except as provided in subparagraph 3., for the lease or
   99  rental of a motor vehicle for a period of not less than 12
  100  months, sales tax is due on the lease or rental payments if the
  101  vehicle is registered in this state; provided, however, that no
  102  tax shall be due if the taxpayer documents use of the motor
  103  vehicle outside this state and tax is being paid on the lease or
  104  rental payments in another state.
  105         3. The tax imposed by this chapter does not apply to the
  106  lease or rental of a commercial motor vehicle as defined in s.
  107  316.003(13)(a) to one lessee or rentee for a period of not less
  108  than 12 months when tax was paid on the purchase price of such
  109  vehicle by the lessor. To the extent tax was paid with respect
  110  to the purchase of such vehicle in another state, territory of
  111  the United States, or the District of Columbia, the Florida tax
  112  payable shall be reduced in accordance with the provisions of s.
  113  212.06(7). This subparagraph shall only be available when the
  114  lease or rental of such property is an established business or
  115  part of an established business or the same is incidental or
  116  germane to such business.
  117         Section 2. Section 212.0606, Florida Statutes, is amended
  118  to read:
  119         212.0606 Rental car surcharge.—
  120         (1) As used in this section, the term:
  121         (a)“Car-sharing service” means a membership-based
  122  organization or business, or division thereof, which requires
  123  the payment of an application fee or a membership fee and
  124  provides member access to motor vehicles:
  125         1.Only at locations that are not staffed by car-sharing
  126  service personnel employed solely for the purpose of interacting
  127  with car-sharing service members;
  128         2.Twenty-four hours per day, 7 days per week;
  129         3.Only through automated means, including, but not limited
  130  to, a smartphone application or an electronic membership card;
  131         4.On an hourly basis or for a shorter increment of time;
  132         5.Without a separate fee for refueling the motor vehicle;
  133         6.Without a separate fee for minimum financial
  134  responsibility liability insurance; and
  135         7.Owned or controlled by the car-sharing service or its
  136  affiliates.
  137         (b)“Motor vehicle rental company” means an entity that is
  138  in the business of providing, for financial consideration, motor
  139  vehicles to the public under a rental agreement.
  140         (c)“Peer-to-peer car-sharing program” has the same meaning
  141  as in s. 627.7483(1).
  142         (2) Except as provided in subsections (3) and (4)
  143  subsection (2), a surcharge of $2 per day or any part of a day
  144  is imposed upon the lease or rental by a motor vehicle rental
  145  company of a motor vehicle that is licensed for hire and
  146  designed to carry fewer than nine passengers, regardless of
  147  whether the motor vehicle is licensed in this state, for
  148  financial consideration and without transfer of the title of the
  149  motor vehicle. The surcharge is imposed regardless of whether
  150  the lease or rental occurs in person or through digital means.
  151  The surcharge applies to only the first 30 days of the term of a
  152  lease or rental and must be collected by the motor vehicle
  153  rental company. The surcharge is subject to all applicable taxes
  154  imposed by this chapter.
  155         (3)A surcharge of $1 per day or any part of a day is
  156  imposed upon each peer-to-peer car-sharing program agreement
  157  involving a shared vehicle that is registered in this state and
  158  designed to carry fewer than nine passengers for financial
  159  consideration and without transfer of the title of the shared
  160  vehicle. If the duration of the car-sharing period for a peer
  161  to-peer car-sharing program agreement subject to the surcharge
  162  established pursuant to this section is less than 24 hours, the
  163  applicable surcharge will be $1 per usage. The surcharge applies
  164  to the first 30 days only of a car-sharing period for any peer
  165  to-peer car-sharing program agreement to which the surcharge
  166  applies and must be collected by the peer-to-peer car-sharing
  167  program. The surcharge is subject to all applicable taxes
  168  imposed by this chapter.
  169         (4)(2) A member of a car-sharing service who uses a motor
  170  vehicle as described in subsection (2) (1) for less than 24
  171  hours pursuant to an agreement with the car-sharing service
  172  shall pay a surcharge of $1 per usage. A member of a car-sharing
  173  service who uses the same motor vehicle for 24 hours or more
  174  shall pay a surcharge of $2 per day or any part of a day as
  175  provided in subsection (2) (1). The car-sharing service shall
  176  collect the surcharge For purposes of this subsection, the term
  177  “car-sharing service” means a membership-based organization or
  178  business, or division thereof, which requires the payment of an
  179  application or membership fee and provides member access to
  180  motor vehicles:
  181         (a)Only at locations that are not staffed by car-sharing
  182  service personnel employed solely for the purpose of interacting
  183  with car-sharing service members;
  184         (b)Twenty-four hours per day, 7 days per week;
  185         (c)Only through automated means, including, but not
  186  limited to, smartphone applications or electronic membership
  187  cards;
  188         (d)On an hourly basis or for a shorter increment of time;
  189         (e)Without a separate fee for refueling the motor vehicle;
  190         (f)Without a separate fee for minimum financial
  191  responsibility liability insurance; and
  192         (g)Owned or controlled by the car-sharing service or its
  193  affiliates. The surcharge imposed under this subsection does not
  194  apply to the lease, rental, or use of a motor vehicle from a
  195  location owned, operated, or leased by or for the benefit of an
  196  airport or airport authority.
  197         (5)(a)(3)(a) Notwithstanding s. 212.20, and less the costs
  198  of administration, 80 percent of the proceeds of this surcharge
  199  shall be deposited in the State Transportation Trust Fund, 15.75
  200  percent of the proceeds of this surcharge shall be deposited in
  201  the Tourism Promotional Trust Fund created in s. 288.122, and
  202  4.25 percent of the proceeds of this surcharge shall be
  203  deposited in the Florida International Trade and Promotion Trust
  204  Fund. For the purposes of this subsection, the term “proceeds of
  205  this surchargeof the surcharge means all funds collected and
  206  received by the department under this section, including
  207  interest and penalties on delinquent surcharges. The department
  208  shall provide the Department of Transportation rental car
  209  surcharge revenue information for the previous state fiscal year
  210  by September 1 of each year.
  211         (b) Notwithstanding any other provision of law, the
  212  proceeds deposited in the State Transportation Trust Fund shall
  213  be allocated on an annual basis in the Department of
  214  Transportation’s work program to each department district,
  215  except the Turnpike District. The amount allocated to each
  216  district shall be based on the amount of proceeds attributed to
  217  the counties within each respective district.
  218         (6)(a)(4) Except as provided in this section, the
  219  department shall administer, collect, and enforce the surcharges
  220  surcharge as provided in this chapter.
  221         (b)(a) The department shall require a dealer dealers to
  222  report surcharge collections according to the county to which
  223  the surcharge was attributed. For purposes of this section, the
  224  surcharge shall be attributed to the county in which where the
  225  rental agreement was entered into, except that, for peer-to-peer
  226  car-sharing, the surcharge shall be attributable to the county
  227  corresponding to the location of the motor vehicle at the car
  228  sharing start time.
  229         (c)(b)A dealer that collects a Dealers who collect the
  230  rental car surcharge pursuant to this section shall report to
  231  the department all surcharge revenues attributed to the county
  232  where the rental agreement was entered into on a timely filed
  233  return for each required reporting period; except that, in the
  234  case of peer-to-peer car-sharing, the peer-to-peer car-sharing
  235  program shall report the applicable surcharge revenue attributed
  236  to the county corresponding to the location of the motor vehicle
  237  at the car-sharing start time. The provisions of this chapter
  238  which apply to interest and penalties on delinquent taxes apply
  239  to the surcharge. The surcharge shall not be included in the
  240  calculation of estimated taxes pursuant to s. 212.11. The
  241  dealer’s credit provided in s. 212.12 does not apply to any
  242  amount collected under this section.
  243         (7)(5) The surcharge imposed by this section does not apply
  244  to a motor vehicle or a shared vehicle provided at no charge to
  245  a person whose motor vehicle is being repaired, adjusted, or
  246  serviced by the entity providing the replacement motor vehicle.
  247         Section 3. Section 627.7483, Florida Statutes, is created
  248  to read:
  249         627.7483Peer-to-peer car sharing; insurance requirements.—
  250         (1)DEFINITIONS.—As used in this section, the term:
  251         (a)“Car-sharing delivery period” means the period of time
  252  during which a shared vehicle is being delivered to the location
  253  of the car-sharing start time, if applicable, as documented by
  254  the governing peer-to-peer car-sharing program agreement.
  255         (b)“Car-sharing period” means the period of time that
  256  commences either at the car-sharing delivery period or, if there
  257  is no car-sharing delivery period, at the car-sharing start time
  258  and that ends at the car-sharing termination time.
  259         (c)“Car-sharing start time” means the time when the shared
  260  vehicle is under the control of the shared vehicle driver, which
  261  time occurs at or after the time the reservation of the shared
  262  vehicle is scheduled to begin, as documented in the records of a
  263  peer-to-peer car-sharing program.
  264         (d)“Car-sharing termination time” means the earliest of
  265  the following events:
  266         1.The expiration of the agreed-upon period of time
  267  established for the use of a shared vehicle according to the
  268  terms of the peer-to-peer car-sharing program agreement if the
  269  shared vehicle is delivered to the location agreed upon in the
  270  peer-to-peer car-sharing program agreement;
  271         2.The time the shared vehicle is returned to a location as
  272  alternatively agreed upon by the shared vehicle owner and shared
  273  vehicle driver, as communicated through a peer-to-peer car
  274  sharing program, which alternatively agreed-upon location must
  275  be incorporated into the peer-to-peer car-sharing program
  276  agreement; or
  277         3.The time the shared vehicle owner takes possession and
  278  control of the shared vehicle.
  279         (e)“Peer-to-peer car sharing” or “car sharing” means the
  280  authorized use of a motor vehicle by an individual other than
  281  the vehicle’s owner through a peer-to-peer car-sharing program.
  282  For the purposes of this section, the term does not include the
  283  renting of a motor vehicle through a rental car company, the use
  284  of a for-hire vehicle as defined in s. 320.01(15), ridesharing
  285  as defined in s. 341.031(9), a carpool as defined in s.
  286  450.28(3), or the use of a motor vehicle under an agreement for
  287  a car-sharing service as defined in s. 212.0606(1).
  288         (f)“Peer-to-peer car-sharing program” means a business
  289  platform that enables peer-to-peer car sharing by connecting
  290  motor vehicle owners with drivers for financial consideration.
  291  For the purposes of this section, the term does not include a
  292  rental car company, a car-sharing service as defined in s.
  293  212.0606(1), a taxicab association, the owner of a for-hire
  294  vehicle as defined in s. 320.01(15), or a service provider that
  295  is solely providing hardware or software as a service to a
  296  person or an entity that is not effectuating payment of
  297  financial consideration for use of a shared vehicle.
  298         (g)“Peer-to-peer car-sharing program agreement” means the
  299  terms and conditions established by the peer-to-peer car-sharing
  300  program which are applicable to a shared vehicle owner and a
  301  shared vehicle driver and which govern the use of a shared
  302  vehicle through a peer-to-peer car-sharing program. For the
  303  purposes of this section, the term does not include a rental
  304  agreement or an agreement for a for-hire vehicle as defined in
  305  s. 320.01(15) or for a car-sharing service as defined in s.
  306  212.0606(1).
  307         (h)“Shared vehicle” means a motor vehicle that is
  308  available for sharing through a peer-to-peer car-sharing
  309  program. For the purposes of this section, the term does not
  310  include a rental car, a for-hire vehicle as defined in s.
  311  320.01(15), or a motor vehicle used for ridesharing as defined
  312  in s. 341.031(9), for a carpool as defined in s. 450.28(3), or
  313  for a car-sharing service as defined in s. 212.0606(1).
  314         (i)“Shared vehicle driver” means an individual who has
  315  been authorized by the shared vehicle owner to drive the shared
  316  vehicle under the peer-to-peer car-sharing program agreement.
  317         (j)“Shared vehicle owner” means the registered owner, or a
  318  natural person or an entity designated by the registered owner,
  319  of a motor vehicle made available for sharing to shared vehicle
  320  drivers through a peer-to-peer car-sharing program. For the
  321  purposes of this section, the term does not include an owner of
  322  a for-hire vehicle as defined in s. 320.01(15).
  323         (2)INSURANCE COVERAGE REQUIREMENTS.—
  324         (a)1.A peer-to-peer car-sharing program shall ensure that,
  325  during each car-sharing period, the shared vehicle owner and the
  326  shared vehicle driver are insured under a motor vehicle
  327  insurance policy that provides all of the following:
  328         a.Property damage liability coverage that meets the
  329  minimum coverage amounts required under s. 324.022.
  330         b.Bodily injury liability coverage limits as described in
  331  s. 324.021(7)(a) and (b).
  332         c.Personal injury protection benefits that meet the
  333  minimum coverage amounts required under s. 627.736.
  334         d.Uninsured and underinsured vehicle coverage as required
  335  under s. 627.727.
  336         2.The peer-to-peer car-sharing program shall also ensure
  337  that the motor vehicle insurance policy under subparagraph 1.:
  338         a.Recognizes that the shared vehicle insured under the
  339  policy is made available and used through a peer-to-peer car
  340  sharing program; or
  341         b.Does not exclude the use of a shared vehicle by a shared
  342  vehicle driver.
  343         (b)1.The insurance described under paragraph (a) may be
  344  satisfied by a motor vehicle insurance policy maintained by:
  345         a.A shared vehicle owner;
  346         b.A shared vehicle driver;
  347         c.A peer-to-peer car-sharing program; or
  348         d.A combination of a shared vehicle owner, a shared
  349  vehicle driver, and a peer-to-peer car-sharing program.
  350         2.The insurance policy maintained in subparagraph 1. which
  351  satisfies the insurance requirements under paragraph (a) is
  352  primary during each car-sharing period. If a claim occurs during
  353  the car-sharing period in another state with minimum financial
  354  responsibility limits higher than those limits required under
  355  chapter 324, the coverage maintained under paragraph (a)
  356  satisfies the difference in minimum coverage amounts up to the
  357  applicable policy limits.
  358         3.a.If the insurance maintained by a shared vehicle owner
  359  or shared vehicle driver in accordance with subparagraph 1. has
  360  lapsed or does not provide the coverage required under paragraph
  361  (a), the insurance maintained by the peer-to-peer car-sharing
  362  program must provide the coverage required under paragraph (a),
  363  beginning with the first dollar of a claim, and must defend such
  364  claim, except under circumstances as set forth in subparagraph
  365  (3)(a)2.
  366         b.Coverage under a motor vehicle insurance policy
  367  maintained by the peer-to-peer car-sharing program must not be
  368  dependent on another motor vehicle insurer first denying a
  369  claim, and another motor vehicle insurance policy is not
  370  required to first deny a claim.
  371         c.Notwithstanding any other law, statute, rule, or
  372  regulation to the contrary, a peer-to-peer car-sharing program
  373  has an insurable interest in a shared vehicle during the car
  374  sharing period. This sub-subparagraph does not create liability
  375  for a peer-to-peer car-sharing program for maintaining the
  376  coverage required under paragraph (a) and under this paragraph,
  377  if applicable.
  378         d.A peer-to-peer car-sharing program may own and maintain
  379  as the named insured one or more policies of motor vehicle
  380  insurance which provide coverage for:
  381         (I)Liabilities assumed by the peer-to-peer car-sharing
  382  program under a peer–to–peer car-sharing program agreement;
  383         (II) Liability of the shared vehicle owner;
  384         (III) Liability of the shared vehicle driver;
  385         (IV) Damage or loss to the shared motor vehicle; or
  386         (V) Damage, loss, or injury to persons or property to
  387  satisfy the personal injury protection and uninsured and
  388  underinsured motorist coverage requirements of this section.
  389         e.Insurance required under paragraph (a), when maintained
  390  by a peer-to-peer car-sharing program, may be provided by an
  391  insurer authorized to do business in this state which is a
  392  member of the Florida Insurance Guaranty Association or an
  393  eligible surplus lines insurer that has a superior, excellent,
  394  exceptional, or equivalent financial strength rating by a rating
  395  agency acceptable to the office. A peer-to-peer car-sharing
  396  program is not transacting in insurance when it maintains the
  397  insurance required under this section.
  398         (3) LIABILITIES AND INSURANCE EXCLUSIONS.—
  399         (a) Liability.
  400         1. A peer-to-peer car-sharing program shall assume
  401  liability, except as provided in subparagraph 2., of a shared
  402  vehicle owner for bodily injury or property damage to third
  403  parties or uninsured and underinsured motorist or personal
  404  injury protection losses during the car-sharing period in an
  405  amount stated in the peer-to-peer car-sharing program agreement,
  406  which amount may not be less than those set forth in ss.
  407  324.021(7)(a) and (b), 324.022, 627.727, and 627.736,
  408  respectively.
  409         2. The assumption of liability under subparagraph 1. does
  410  not apply if a shared vehicle owner:
  411         a. Makes an intentional or fraudulent material
  412  misrepresentation or omission to the peer-to-peer car-sharing
  413  program before the car-sharing period in which the loss occurs;
  414  or
  415         b. Acts in concert with a shared vehicle driver who fails
  416  to return the shared vehicle pursuant to the terms of the peer
  417  to-peer car-sharing program agreement.
  418         3. The insurer, insurers, or peer-to-peer car-sharing
  419  program providing coverage under paragraph (2)(a) shall assume
  420  primary liability for a claim when:
  421         a.A dispute exists over who was in control of the shared
  422  motor vehicle at the time of the loss, and the peer-to-peer car
  423  sharing program does not have available, did not retain, or
  424  fails to provide the information required under subsection (5);
  425  or
  426         b.A dispute exists over whether the shared vehicle was
  427  returned to the alternatively agreed-upon location as required
  428  under subparagraph (1)(d)2.
  429         (b) Vicarious liability.—A peer-to-peer car-sharing program
  430  and a shared vehicle owner are exempt from vicarious liability
  431  consistent with 49 U.S.C. s. 30106 (2005) under any state or
  432  local law that imposes liability solely based on vehicle
  433  ownership.
  434         (c) Exclusions in motor vehicle insurance policies.—An
  435  authorized insurer that writes motor vehicle liability insurance
  436  in this state may exclude any coverage and the duty to defend or
  437  indemnify for any claim under a shared vehicle owner’s motor
  438  vehicle insurance policy, including, but not limited to:
  439         1. Liability coverage for bodily injury and property
  440  damage;
  441         2. Personal injury protection coverage;
  442         3. Uninsured and underinsured motorist coverage;
  443         4. Medical payments coverage;
  444         5. Comprehensive physical damage coverage; and
  445         6. Collision physical damage coverage.
  446  
  447  This paragraph does not invalidate or limit any exclusion
  448  contained in a motor vehicle insurance policy, including any
  449  insurance policy in use or approved for use which excludes
  450  coverage for motor vehicles made available for rent, sharing, or
  451  hire or for any business use. This paragraph does not
  452  invalidate, limit, or restrict an insurer’s ability under
  453  existing law to underwrite, cancel, or nonrenew any insurance
  454  policy.
  455         (d) Contribution against indemnification.—A shared vehicle
  456  owner’s motor vehicle insurer that defends or indemnifies a
  457  claim against a shared vehicle which is excluded under the terms
  458  of its policy has the right to seek recovery against the motor
  459  vehicle insurer of the peer-to-peer car-sharing program if the
  460  claim is:
  461         1. Made against the shared vehicle owner or the shared
  462  vehicle driver for loss or injury that occurs during the car
  463  sharing period; and
  464         2. Excluded under the terms of its policy.
  465         (4) NOTIFICATION OF IMPLICATIONS OF LIEN.—At the time a
  466  motor vehicle owner registers as a shared vehicle owner on a
  467  peer-to-peer car-sharing program and before the shared vehicle
  468  owner may make a shared vehicle available for car sharing on the
  469  peer-to-peer car-sharing program, the peer-to-peer car-sharing
  470  program must notify the shared vehicle owner that, if the shared
  471  vehicle has a lien against it, the use of the shared vehicle
  472  through a peer-to-peer car-sharing program, including the use
  473  without physical damage coverage, may violate the terms of the
  474  contract with the lienholder.
  475         (5) RECORDKEEPING.—A peer-to-peer car-sharing program
  476  shall:
  477         (a) Collect and verify records pertaining to the use of a
  478  shared vehicle, including, but not limited to, the times used,
  479  car-sharing period pick-up and drop-off locations, and revenues
  480  received by the shared vehicle owner;
  481         (b) Retain the records in paragraph (a) for a time period
  482  not less than the applicable personal injury statute of
  483  limitations; and
  484         (c) Provide the information contained in the records in
  485  paragraph (a) upon request to the shared vehicle owner, the
  486  shared vehicle owner’s insurer, or the shared vehicle driver’s
  487  insurer to facilitate a claim coverage investigation,
  488  settlement, negotiation, or litigation.
  489         (6) CONSUMER PROTECTIONS.—
  490         (a) Disclosures.—Each peer-to-peer car-sharing program
  491  agreement made in this state must disclose to the shared vehicle
  492  owner and the shared vehicle driver:
  493         1. Any right of the peer-to-peer car-sharing program to
  494  seek indemnification from the shared vehicle owner or the shared
  495  vehicle driver for economic loss resulting from a breach of the
  496  terms and conditions of the peer-to-peer car-sharing program
  497  agreement.
  498         2. That a motor vehicle insurance policy issued to the
  499  shared vehicle owner for the shared vehicle or to the shared
  500  vehicle driver does not provide a defense or indemnification for
  501  any claim asserted by the peer-to-peer car-sharing program.
  502         3. That the peer-to-peer car-sharing program’s insurance
  503  coverage on the shared vehicle owner and the shared vehicle
  504  driver is in effect only during each car-sharing period and
  505  that, for any use of the shared vehicle by the shared vehicle
  506  driver after the car-sharing termination time, the shared
  507  vehicle driver and the shared vehicle owner may not have
  508  insurance coverage.
  509         4. The daily rate and, if applicable, any insurance or
  510  protection package costs that are charged to the shared vehicle
  511  owner or the shared vehicle driver.
  512         5. That the shared vehicle owner’s motor vehicle liability
  513  insurance may exclude coverage for a shared vehicle.
  514         6. An emergency telephone number of the personnel capable
  515  of fielding calls for roadside assistance and other customer
  516  service inquiries.
  517         7. Any conditions under which a shared vehicle driver must
  518  maintain a personal motor vehicle insurance policy with certain
  519  applicable coverage limits on a primary basis in order to book a
  520  shared vehicle.
  521         (b) Driver license verification and data retention.—
  522         1. A peer-to-peer car-sharing program may not enter into a
  523  peer-to-peer car-sharing program agreement with a driver unless
  524  the driver:
  525         a. Holds a driver license issued under chapter 322 which
  526  authorizes the driver to drive vehicles of the class of the
  527  shared vehicle;
  528         b. Is a nonresident who:
  529         (I) Holds a driver license issued by the state or country
  530  of the driver’s residence which authorizes the driver in that
  531  state or country to drive vehicles of the class of the shared
  532  vehicle; and
  533         (II) Is at least the same age as that required of a
  534  resident to drive; or
  535         c. Is otherwise specifically authorized by the Department
  536  of Highway Safety and Motor Vehicles to drive vehicles of the
  537  class of the shared vehicle.
  538         2. A peer-to-peer car-sharing program shall keep a record
  539  of:
  540         a. The name and address of the shared vehicle driver;
  541         b. The driver license number of the shared vehicle driver
  542  and each other person, if any, who will operate the shared
  543  vehicle; and
  544         c. The place of issuance of the driver license.
  545         (c) Responsibility for equipment.—A peer-to-peer car
  546  sharing program has sole responsibility for any equipment that
  547  is put in or on the shared vehicle to monitor or facilitate the
  548  peer-to-peer car-sharing transaction, including a GPS system.
  549  The peer-to-peer car-sharing program shall indemnify and hold
  550  harmless the shared vehicle owner for any damage to or theft of
  551  such equipment during the car-sharing period which is not caused
  552  by the shared vehicle owner. The peer-to-peer car-sharing
  553  program may seek indemnity from the shared vehicle driver for
  554  any damage to or loss of such equipment which occurs during the
  555  car-sharing period.
  556         (d) Motor vehicle safety recalls.—At the time a motor
  557  vehicle owner registers as a shared vehicle owner on a peer-to
  558  peer car-sharing program and before the shared vehicle owner may
  559  make a shared vehicle available for car sharing on the peer-to
  560  peer car-sharing program, the peer-to-peer car-sharing program
  561  must:
  562         1. Verify that the shared vehicle does not have any safety
  563  recalls on the vehicle for which the repairs have not been made;
  564  and
  565         2. Notify the shared vehicle owner that if the shared
  566  vehicle owner:
  567         a. Has received an actual notice of a safety recall on the
  568  vehicle, he or she may not make a vehicle available as a shared
  569  vehicle on the peer-to-peer car-sharing program until the safety
  570  recall repair has been made.
  571         b. Receives an actual notice of a safety recall on a shared
  572  vehicle while the shared vehicle is made available on the peer
  573  to-peer car-sharing program, he or she shall remove the shared
  574  vehicle as available on the peer-to-peer car-sharing program as
  575  soon as practicably possible after receiving the notice of the
  576  safety recall and until the safety recall repair has been made.
  577         c. Receives an actual notice of a safety recall while the
  578  shared vehicle is in the possession of a shared vehicle driver,
  579  he or she shall notify the peer-to-peer car-sharing program
  580  about the safety recall as soon as practicably possible after
  581  receiving the notice of the safety recall, so that he or she may
  582  address the safety recall repair.
  583         (7) CONSTRUCTION.—This section does not limit:
  584         (a) The liability of a peer-to-peer car-sharing program for
  585  any act or omission of the peer-to-peer car-sharing program
  586  which results in the bodily injury of a person as a result of
  587  the use of a shared vehicle through peer-to-peer car sharing; or
  588         (b) The ability of a peer-to-peer car-sharing program to
  589  seek, by contract, indemnification from the shared vehicle owner
  590  or the shared vehicle driver for economic loss resulting from a
  591  breach of the terms and conditions of the peer-to-peer car
  592  sharing program agreement.
  593         Section 4. This act shall take effect January 1, 2022.

feedback