Bill Text: HI HB1971 | 2022 | Regular Session | Amended
Bill Title: Relating To Peer-to-peer Car-sharing.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2022-06-17 - Act 077, on 06/17/2022 (Gov. Msg. No. 1177). [HB1971 Detail]
Download: Hawaii-2022-HB1971-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1971 |
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THIRTY-FIRST LEGISLATURE, 2022 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO PEER-TO-PEER CAR-SHARING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to title 15 to be appropriately designated and to read as follows:
"Chapter
PEER-TO-PEER CAR-SHARING
§ -1 Definitions. As used in this chapter:
"Car-sharing delivery period" means the period of time during which a shared car is being delivered to the location of the car-sharing start time, if applicable, as documented by the governing car-sharing program agreement.
"Car-sharing period" means the period of time that commences with the car-sharing delivery period or, if there is no delivery period, that commences with the car-sharing start time and, in either case, ends at the car-sharing termination time.
"Car-sharing program agreement" means the terms and conditions applicable to a shared car owner and a shared car driver that govern the use of a shared car through a peer‑to‑peer car‑sharing program. "Car-sharing program agreement" does not include a rental agreement as defined in section 437D-3.
"Car-sharing start time" means the time when the shared car becomes subject to the control of the shared car driver at or after the time the reservation of a shared car is scheduled to begin as documented in the records of a peer‑to‑peer car‑sharing program.
"Car‑sharing termination time" means the latest of the following events:
(1) The expiration of the agreed upon period of time established for the use of a shared car according to the terms of the car-sharing program agreement if the shared car is delivered to the location agreed upon in the car-sharing program agreement;
(2) When the shared car is returned to a location as alternatively agreed upon by the shared car owner and shared car driver as communicated through a peer‑to‑peer car-sharing program; or
(3) When the shared car owner or the shared car owner's authorized designee takes possession and control of the shared car.
"Peer-to-peer car-sharing" means the authorized use of a vehicle by an individual other than the vehicle's owner through a peer-to-peer car-sharing program. "Peer-to-peer car-sharing" does not include the business of providing rental motor vehicles to the public as that phrase is used in section 251-3 or the business of a lessor as defined in section 437D‑3.
"Peer-to-peer car-sharing program" means a business platform that connects vehicle owners with drivers to enable the sharing of vehicles for financial consideration. "Peer-to-peer car-sharing program" does not mean a lessor as defined in section 437D-3. "Peer-to-peer car-sharing program" does not include a car-sharing organization as defined in section 251-1.
"Shared car" means a vehicle that is available for sharing through a peer-to-peer car-sharing program. "Shared car" does not include a rental motor vehicle or vehicle as those terms are defined in section 437D-3.
"Shared car driver" means an individual who has been authorized to drive the shared car by the shared car owner under a car-sharing program agreement. "Shared car driver" does not include a lessee as defined in section 437D-3.
"Shared car owner" means the registered owner, or a person or entity designated by the registered owner, of a vehicle made available for sharing to shared car drivers through a peer‑to‑peer car-sharing program. "Shared car owner" does not include a lessor as defined in section 437D-3.
§ -2 Insurance coverage during car-sharing period. (a) A peer-to-peer car-sharing program shall ensure
that during each car-sharing period, the shared car shall be insured under a motor
vehicle insurance policy that provides primary insurance coverage for each shared
car available and used through a peer-to-peer car-sharing program in amounts no
less than the minimum amounts required under section 431:10C‑301 and does
not exclude use of a shared car by a shared car driver.
(b)
If insurance maintained by a shared car owner
or shared car driver in accordance with subsection (a) has lapsed, contains an exclusion
for peer-to-peer car-sharing, or does not provide the required coverage, insurance
maintained by a peer-to-peer car-sharing program shall provide the coverage required
by subsection (a) beginning with the first dollar of a claim and shall have the
duty to defend such claim.
(c)
Coverage under a motor vehicle insurance
policy maintained by the peer-to-peer car-sharing program shall not be dependent
on another motor vehicle insurer first denying a claim.
§ -3
Notification of implications of lien.
When a car owner registers as a shared car
owner on a peer-to-peer car‑sharing program and prior to when the shared car
owner makes a shared car available for car-sharing on the peer-to-peer car‑sharing
program, the peer-to-peer car-sharing program shall notify the shared car owner
that, if the shared car has a lien against it, the use of the shared car through
a peer-to-peer car-sharing program, including use without physical damage coverage,
may violate the terms of the contract with the lienholder.
§ -4
Exclusions in motor vehicle insurance policies.
(a) Notwithstanding section -2, an
authorized insurer that writes motor vehicle insurance in the State may exclude
any and all coverage and the duty to defend or indemnify any claim afforded under
a shared car owner's motor vehicle insurance policy during the car-sharing period,
including:
(1) Liability coverage for bodily injury and property
damage;
(2) Personal injury protection coverage as set forth
in section 431:10C-304;
(3) Uninsured and underinsured motorist coverage;
(4) Medical payments coverage;
(5) Comprehensive physical damage coverage; and
(6) Collision physical damage coverage.
(b) Except as required under section -2,
nothing in this chapter shall invalidate or limit an exclusion contained in a motor
vehicle insurance policy, including any insurance policy in use or approved for
use that excludes coverage for motor vehicles made available for rent, sharing,
or hire.
§ -5 Recordkeeping;
use of vehicle in car-sharing. A peer-to-peer
car-sharing program shall collect and verify records pertaining to the use of a
shared car for each car-sharing program agreement, including:
(1) Dates and times of the car-sharing start time and
the car-sharing termination time in the car-sharing program agreement;
(2) Dates and times of the car-sharing start time and
car-sharing termination time;
(3) Itemized descriptions and amounts of all fees and
costs charged to the shared car driver;
(4) Itemized descriptions and amounts of all fees and
costs paid by the shared car driver;
(5) Itemized descriptions and amounts of all fees and
costs paid to the shared car owner;
(6) The name and contact information of the shared
car owner and the shared car driver; and
(7) The insurance policy number, effective date, coverage,
and coverage amounts of each insurance policy that identifies the peer-to-peer car-sharing
program, shared car owner, or shared car driver as the insured.
The
peer-to-peer car-sharing program shall retain the records for a time period of no
less than six years. Upon request, the peer-to-peer
car-sharing program shall provide the information required by this section and any
information relating to the peer-to-peer car-sharing agreement in its possession
and control to the shared car owner, the shared car owner's insurer, the shared
car driver, the shared car driver's insurer, persons who have sustained injury or
property damage involving a shared car, and police and other governmental entities
to facilitate accident or claim coverage investigation.
§ -6
Right of recovery from peer-to-peer car-sharing
program or its motor vehicle insurer. (a) A motor
vehicle insurer that defends or indemnifies a liability claim against a shared car
owner or a shared car driver that is excluded under the terms of the shared car
owner's or shared car driver's policy shall have a right to seek to recover from
the peer-to-peer car-sharing program or its motor vehicle insurer if the liability
claim is made against the shared car owner or the shared car driver for injury or
damage that occurs during the car-sharing period.
(b)
A motor vehicle insurer that pays personal
injury protection benefits for injury sustained by an occupant of, or by a pedestrian
when struck by, a shared car when the obligation to pay personal injury protection
benefits is excluded under the shared car owner's or shared car driver's policy
shall have the right to seek to recover from the peer-to-peer car-sharing program
or its motor vehicle insurer if the injury occurs during the car-sharing period.
(c)
A motor vehicle insurer that pays uninsured
motorist benefits or underinsured motorist benefits for injury sustained by an occupant
of a shared car when the obligation to pay uninsured motorist benefits or underinsured
motorist benefits is excluded under the shared car owner's or shared car driver's
policy shall have the right to seek to recover from the peer-to-peer car-sharing
program or its motor vehicle insurer if the injury occurs during the car-sharing
period.
(d)
A motor vehicle insurer that pays a shared-car
owner for loss or damage to a shared car that is excluded under the comprehensive
physical damage coverage or collision physical damage coverage of the shared car
owner's or shared car driver's policy shall have the right to seek to recover from
the peer-to-peer car-sharing program or its motor vehicle insurer if the loss or
damage to the shared car occurs during the car-sharing period.
§ -7
Insurable interest. (a) Notwithstanding any other law or rule to the contrary,
a peer-to-peer car-sharing program shall have an insurable interest in a shared
car during the car-sharing period.
(b)
In addition to the insurance coverage mandated
by section -2, a peer-to-peer car-sharing program may own and
maintain as the named insured one or more policies of motor vehicle insurance that
provides coverage for:
(1) Liabilities assumed by the peer-to-peer car-sharing
program under a peer-to-peer car-sharing program agreement;
(2) Any liability of the shared car owner; or
(3) Damage or loss to the shared car or any liability
of the shared car driver.
§ -8 Required
disclosures and notices. For each
shared car participating in a car-sharing program agreement, a peer-to-peer car-sharing
program shall:
(1) Provide, prior to the execution of a car-sharing
program agreement, the shared car owner and shared car driver with the terms and
conditions of the car-sharing program agreement;
(2) Disclose to the shared car driver, prior to the
execution of a car-sharing program agreement, all costs or fees that are charged
to the shared car driver under the car-sharing program agreement, including all
costs or fees for mandatory insurance coverage charged by the peer-to-peer car-sharing
program;
(3) Disclose to the shared car owner, prior to the
execution of a car-sharing program agreement, all costs or fees that are charged
to the shared car owner under the car-sharing program agreement, including fees
or costs for mandatory insurance coverage charged by the peer-to-peer car-sharing
program;
(4) Provide a twenty-four hour emergency telephone
number for a person capable of facilitating roadside assistance for the shared car
driver;
(5) Disclose any right of the peer-to-peer car-sharing
program to seek indemnification from the shared car owner or the shared car driver
for economic loss sustained by the peer-to-peer car-sharing program caused by a
breach of the car-sharing program agreement; provided that the peer-to-peer car-sharing
program shall require the shared car owner and the shared car driver to specifically
and separately acknowledge notice of the disclosure prior to execution of a car-sharing
program agreement;
(6) Disclose that a motor vehicle insurance policy
issued to the shared car owner for the shared car or to the shared car driver may
not provide a defense or indemnification for any claim asserted by the peer-to-peer
car-sharing program; provided that the peer-to-peer car-sharing program shall require
the shared car owner and the shared car driver to specifically and separately acknowledge
notice of the disclosure prior to execution of a car-sharing program agreement;
(7) Disclose that the peer-to-peer car-sharing program's
insurance coverage on the shared car owner and the shared car driver is in effect
only during each car-sharing period and that the shared car may not have insurance
coverage for use of the shared car by the shared car driver after the car-sharing
termination time; provided that the peer-to-peer car-sharing program shall require
the shared car owner and the shared car driver to specifically and separately acknowledge
notice of the disclosure prior to the execution of a car-sharing program agreement;
(8) Disclose any insurance or protection package costs
that are charged to the shared car owner or the shared car driver; provided that
the peer-to-peer car-sharing program shall require the shared car owner and the
shared car driver to specifically and separately acknowledge notice of the disclosure
prior to the execution of a car-sharing program agreement;
(9) Disclose to the shared car driver any conditions
in which the shared car driver is required to maintain a motor vehicle insurance
policy as the primary coverage for the shared car; and
(10) Disclose that a shared car owner shall be permitted
to obtain insurance that provides coverage for loss of use of a shared car.
§ -9 Driver's license verification and data retention. (a) A peer-to-peer car-sharing program shall not enter into a car-sharing program agreement with a shared car driver unless the shared car driver:
(1) Holds a driver's license issued under section 286-102 that authorizes the shared car driver to operate vehicles of the class of the shared car;
(2) Is a nonresident who:
(A) Has a driver's license issued by the state or country of the driver's residence that authorizes the shared car driver in that state or country to drive vehicles of the class of the shared car; and
(B) Is at least the same age as that required of a resident to drive; or
(3) Otherwise is specifically authorized to drive vehicles of the class of the shared car.
(b) A peer-to-peer car-sharing program shall record:
(1) The name and address of the shared car driver; and
(2) The place of issuance and number of the driver's license of the shared car driver and each other person, if any, who will operate the shared car.
§ -10 Responsibility for equipment. A peer-to-peer car‑sharing program shall have sole responsibility for any equipment, such as a global positioning system or other special equipment, that is put in or on the shared car to monitor or facilitate the car-sharing transaction, and shall agree to indemnify and hold harmless the shared car owner for any damage to or theft of the equipment during the car-sharing period not caused by the shared car owner. The peer-to-peer car-sharing program shall have the right to seek indemnification from the shared car driver for any loss or damage to the equipment that occurs during the car-sharing period.
§ -11 Motor vehicle safety recalls. (a) At the time when a vehicle owner registers as a shared car owner on a peer‑to‑peer car-sharing program, prior to the time when the shared car owner makes a shared car available for car-sharing on the peer-to-peer car-sharing program, and at the car-sharing start time, the peer-to-peer car‑sharing program shall:
(1) Verify that no safety recalls exist for the make and model of the shared car for which repairs have not been made; and
(2) Notify the shared car owner of the requirements under subsection (b).
(b) A shared car owner shall:
(1) Not make the shared car available for use through a peer-to-peer car-sharing program if the shared car owner has received notice of a safety recall on the shared car, until the safety repair has been made;
(2) Remove any shared car listed for use through a peer‑to-peer car-sharing program upon receipt of a notice of a safety recall as soon as practicably possible but no longer than seventy-two hours after receipt of notice of a safety recall; and
(3) Notify the peer-to-peer car-sharing program of a safety recall when the shared car is in the possession of a shared car driver so that the peer-to-peer car‑sharing program may notify the shared car driver and the shared car may be removed from use until the shared car owner effects the necessary safety recall repair.
§ -12 General excise tax; rental motor vehicle surcharge tax; collection. (a) The activity of peer-to-peer car sharing shall be subject to general excise tax under chapter 237 and the rental motor vehicle surcharge tax pursuant to section 251-2(a); provided that the peer-to-peer car sharing program shall be responsible for collecting and remitting any taxes and surcharges to the department of taxation.
§ -13 Relation to other laws. Chapter 437D shall not apply to peer-to-peer car-sharing."
SECTION 2. Section 251-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Each person as a condition precedent to
engaging or continuing in the business of providing rental motor vehicles to
the public, engaging or continuing in the tour vehicle operator business, [or]
engaging or continuing in a car-sharing organization business, or engaging or
continuing in a peer‑to‑peer car-sharing program as defined in section
-1 shall register with the director. A person required to so register shall make a
one-time payment of $20, upon receipt of which the director shall issue a
certificate of registration in such form as the director determines, attesting
that the registration has been made. The
registration shall not be transferable and shall be valid only for the person
in whose name it is issued and for the transaction of business at the place
designated therein. The registration, or
in lieu thereof a notice stating where the registration may be inspected and
examined, shall at all times be conspicuously displayed at the place for which
it is issued."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2050.
Report Title:
DoTAX; Peer-to-Peer Car-sharing; GET; Rental Motor Vehicle Surcharge Tax; State Highway Fund
Description:
Authorizes peer-to-peer car-sharing and establishes regulations thereof, including insurance requirements. Imposes the general excise tax and rental motor vehicle surcharge tax on peer-to-peer car-sharing programs, including car-sharing program requirements. Requires those persons engaging or continuing in a peer-to-peer car-sharing program to register with the Department of Taxation. Effective 7/1/2050. (HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
