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. 2 |
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STATE OF HAWAII |
S.D. 1 |
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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 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 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 peer-to-peer 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.
§ -3 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
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 car-sharing program agreement in its possession and
control to the shared car owner, shared car owner's insurer, shared car driver,
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.
§ -4 Exemption; vicarious liability. Consistent with title 49 United States Code
section 30106, a peer-to-peer car‑sharing
program and shared car owner shall be exempt from vicarious liability under any
state or local law that imposes liability solely based upon motor vehicle
ownership.
§ -5 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 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 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 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 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 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 shared car driver; provided that the
peer-to-peer car-sharing program shall require the shared car owner and 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.
§ -6 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.
§ -7 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.
§ -8 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 peer-to-peer 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;
(2) Notify the shared car owner of the requirements under subsection (b); and
(3) Not make the shared car available for use through a peer-to-peer car-sharing program if the shared car owner or peer-to-peer car-sharing program has received notice or is aware of a safety recall on the shared car, until the safety repair has been made.
(b) A shared car owner shall:
(1) 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
(2) 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.
§ -9 General excise tax; rental motor vehicle surcharge tax; collection. 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.
§ -10 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. Section 251-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) There is levied and shall be assessed and collected each month a rental motor vehicle surcharge tax of $5 a day, or any portion of a day that a rental motor vehicle is rented or leased. Beginning January 1, 2022, and each subsequent year on January 1 until December 31, 2027, the rental motor vehicle surcharge tax shall increase by $0.50. The rental motor vehicle surcharge tax shall be levied upon the lessor; provided that the tax shall not be levied on the lessor if:
(1) The lessor is renting the vehicle to replace a vehicle of the lessee that:
(A) Is being repaired; or
(B) Has been stolen and is unrecovered or will not be repaired due to a total loss of the vehicle; and
(2) A record of the repair order, the stolen vehicle record, or total loss vehicle claim for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B-16.
In addition to the requirements imposed
by section 251-4, a lessor shall disclose, to the department, the portion of
the remittance attributed to the county in which the motor vehicle was operated
under rental or lease. A peer-to-peer
car-sharing program, as defined in chapter , shall be subject
to the tax imposed by this subsection and be subject to the other requirements of
this chapter."
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2050.
Report Title:
Department of Taxation; Peer-to-Peer Car-Sharing; GET; Rental Motor Vehicle Surcharge Tax; State Highway Fund
Description:
Authorizes and regulates peer-to-peer car-sharing programs. Imposes the general excise tax and rental motor vehicle surcharge tax on peer-to-peer car-sharing programs. 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. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
