Bill Text: NJ A4685 | 2024-2025 | Regular Session | Introduced
Bill Title: "Peer-to-Peer Car Sharing Act."
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-09-12 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A4685 Detail]
Download: New_Jersey-2024-A4685-Introduced.html
Sponsored by:
Assemblywoman ALIXON COLLAZOS-GILL
District 27 (Essex and Passaic)
SYNOPSIS
"Peer-to-Peer Car Sharing Act."
CURRENT VERSION OF TEXT
As introduced.
An Act concerning peer-to-peer car sharing and supplementing Title 39 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Peer-to-Peer Car Sharing Act."
2. As used in this act:
"Car sharing program agreement" means the terms and conditions applicable to a shared vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-to-peer car sharing program.
"Car sharing delivery period" means the period of time during which a shared vehicle 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 car sharing delivery period, that commences with the car sharing start time and in either case ends at the car sharing termination time.
"Car sharing start time" means the time when the shared vehicle becomes subject to the control of the shared vehicle driver at or after the time the reservation of a shared vehicle is scheduled to begin as documented in the records of a peer-to-peer car sharing program.
"Car sharing termination time" means the earliest of the following events:
(1) the expiration of the agreed upon period of time established for the use of a shared vehicle according to the terms of the car sharing program agreement if the shared vehicle is delivered to the location agreed upon in the car sharing program agreement;
(2) when the shared vehicle is returned to a location as alternatively agreed upon by the shared vehicle owner and shared vehicle driver as communicated through a peer-to-peer car sharing program, which alternatively agreed upon location shall be incorporated into the car sharing program agreement; or
(3) when the shared vehicle owner or the shared vehicle owner's authorized designee, takes possession and control of the shared vehicle.
"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" shall not mean rental vehicle or rental company as defined pursuant to section 2 of P.L.1963, c.44 (C.54:39A-2).
"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" shall not include a rental company as defined pursuant to section 2 of P.L.1963, c.44 (C.54:39A-2).
"Shared vehicle" means a motor vehicle and an all-terrain vehicle, dirt bike, or snowmobile, co-defined pursuant to section 1 of P.L.1951, C.25 (C.39:1-1) and as defined pursuant to section 1 of P.L.1973, c.307 (C.39:3C-1) respectively, that is available for sharing through a peer-to-peer car sharing program.
(1) A shared vehicle shall not be considered an autocab or taxi as defined in R.S.48:16-1, a limousine as defined in R.S.48:16-13 or section 2 of P.L.1997, c.356 (C.48:16-13.1), an autobus or jitney as defined in R.S.48:16-23, a motor bus as defined in section 1 of P.L.1991, c.154 (C.17:28-1.5), or any other for-hire vehicle.
(2) A shared vehicle shall not be considered an automobile as defined in subsection a. of section 2 of P.L.1972, c.70 (C.39:6A-2) during a car sharing period.
"Shared vehicle driver" means an individual who has been authorized to drive the shared vehicle by the shared vehicle owner under a car sharing program agreement.
"Shared vehicle owner" means the registered owner, or a person or entity designated by the registered owner, of a vehicle made available for sharing to shared vehicle drivers through a peer-to-peer car sharing program.
3. a. A peer-to-peer car sharing program shall assume liability, except as provided in subsection b. of this section, of a shared vehicle owner for bodily injury or property damage to third parties or uninsured and underinsured motorist or personal injury protection losses during the car sharing period in an amount stated in the car sharing program agreement which amount shall not be less than those set forth in section 20 of P.L. 1973, c.307 (C.39:3C-20), section 2 of P.L.1968, c.385 (C.17:28-1.1), and section 4 of P.L.1972, c.70 (C. 39:6A-4).
b. Notwithstanding the definition of "car sharing termination time" pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the assumption of liability under subsection a. of this section shall not apply to any shared vehicle owner when the shared vehicle owner:
(1) makes an intentional or fraudulent material misrepresentation or omission to the peer-to-peer car sharing program before the car sharing period in which the loss occurred; or
(2) acts in concert with a shared vehicle driver who fails to return the shared vehicle pursuant to the terms of car sharing program agreement.
c. Notwithstanding the definition of "car sharing termination time" pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), the assumption of liability under subsection a. of this section shall apply to bodily injury, property damage, uninsured and underinsured motorist and personal injury protection losses by damaged third parties required by section 20 of P.L. 1973, c.307 (C.39:3C-20), section 2 of P.L.1968, c.385 (C.17:28-1.1), and section 4 of P.L.1972, c.70 (C. 39:6A-4).
d. A peer-to-peer car sharing program shall ensure that, during each car sharing period, the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that provides insurance coverage in amounts no less than the minimum amounts set forth in section 1 of P.L.1972, c.197 (C.39:6B-1) and:
(1) recognizes that the shared vehicle insured under the policy is made available and used through a peer-to-peer car sharing program; or
(2) does not exclude use of a shared vehicle by a shared vehicle driver.
e. To satisfy the requirements of subsection d. of this section, motor vehicle liability insurance shall be maintained by:
(1) a shared vehicle owner;
(2) a shared vehicle driver;
(3) a peer-to-peer car sharing program; or
(4) a shared vehicle owner, a shared vehicle driver, and a peer-to-peer car sharing program.
f. The insurance described in subsection e. of this section shall be primary during each car sharing period. In the event that a claim occurs in another state with minimum financial responsibility limits higher than in section 1 of P.L.1972, c.197 (C.39:6B-1), during the car sharing period, the coverage maintained under subsection e. of this section shall satisfy the difference in minimum coverage amounts, up to the applicable policy limits.
g. The insurer, insurers, or peer-to-peer car sharing program providing coverage under subsection e. of this section shall assume primary liability for a claim when:
(1) a dispute exists as to who was in control of the shared motor vehicle at the time of the loss and the peer-to-peer car sharing program does not have available, did not retain, or fails to provide the information required by section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill); or
(2) a dispute exists as to whether the shared vehicle was returned to the alternatively agreed upon location as allowed under section 2 of P.L., c. (C. ) (pending before the Legislature as this bill).
h. If insurance maintained by a shared vehicle owner or shared vehicle driver in accordance with subsection e. of this section has lapsed or does not provide the required coverage, insurance maintained by a peer-to-peer car sharing program shall provide the coverage required by subsection d. of this section, beginning with the first dollar of a claim, and shall have the duty to defend such claim except under circumstances set forth pursuant to subsection b. of this section.
i. Coverage under an automobile insurance policy maintained by a peer-to-peer car sharing program shall not be dependent on another automobile insurer first denying a claim.
j. Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall:
(1) limit the liability of the peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program itself that results in injury to any person as a result of the use of a shared vehicle through a peer-to-peer car sharing program; or
(2) limit the ability of the peer-to-peer car sharing program to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement.
4. At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a shared vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing program shall notify the shared vehicle owner that, if the shared vehicle has a lien against it, the use of the shared vehicle through a peer-to-peer car sharing program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.
5. a. An authorized insurer that writes motor vehicle liability insurance in the State may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a shared vehicle owner's motor vehicle liability insurance policy, including but not limited to:
(1) liability coverage for bodily injury and property damage;
(2) personal injury protection coverage as defined in section 4 of P.L.1972, c.70 (C. 39:6A-4);
(3) uninsured and underinsured motorist coverage;
(4) medical payments coverage;
(5) comprehensive physical damage coverage; and
(6) collision physical damage coverage.
b. Nothing in this section invalidates or limits an exclusion contained in a motor vehicle liability 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 or for any business use.
c. Nothing in this section invalidates, limits or restricts an insurer's ability under existing law to underwrite any insurance policy. Nothing in this section invalidates, limits or restricts an insurer's ability under existing law to cancel and non-renew policies.
6. A peer-to-peer car sharing program shall collect and verify records pertaining to the use of a shared vehicle, including, but not limited to, times used, car sharing period pick up and drop off locations, fees paid by the shared vehicle driver, and revenues received by the shared vehicle owner and provide that information upon request to the shared vehicle owner, the shared vehicle owner's insurer, or the shared vehicle driver's insurer to facilitate a claim coverage investigation, settlement, negotiation, or litigation. The peer-to-peer car sharing program shall retain the records for a time period not less than the applicable personal injury statute of limitations.
7. A peer-to-peer car sharing program and a shared vehicle owner shall be exempt from vicarious liability in accordance with 49 U.S.C. s.30106 and under any State law that imposes liability solely based on vehicle ownership.
8. A motor vehicle insurer that defends or indemnifies a claim against a shared vehicle that is excluded under the terms of its policy shall have the right to seek recovery against the motor vehicle insurer of the peer-to-peer car sharing program if the claim is:
a. made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period; and
b. excluded under the terms of its policy.
9. a. Notwithstanding any other law, rule or regulation to the contrary, a peer-to-peer car sharing program shall have an insurable interest in a shared vehicle during the car sharing period.
b. Nothing in this section creates liability on a peer-to-peer car sharing program to maintain the coverage mandated pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. A peer-to-peer car sharing program may own and maintain as the named insured one or more policies of motor vehicle liability 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 vehicle owner; or
(3) damage or loss to the shared motor vehicle or any liability of the shared vehicle driver.
10. Each peer-to-peer car sharing program agreement made in the State shall disclose to the shared vehicle owner and the shared vehicle driver:
a. any right of the peer-to-peer car sharing program to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the peer-to-peer car sharing program agreement;
b. that a motor vehicle liability insurance policy issued to the shared vehicle owner for the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification for any claim asserted by the peer-to-peer car sharing program;
c. that the peer-to-peer car sharing program's insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each car sharing period and that, for any use of the shared vehicle by the shared vehicle driver after the car sharing termination time, the shared vehicle driver and the shared vehicle owner shall not have insurance coverage;
d. the daily rate, fees, and if applicable, any insurance or protection package costs that are charged to the shared vehicle owner or the shared vehicle driver;
e. that the shared vehicle owner's motor vehicle liability insurance may not provide coverage for a shared vehicle;
f. an emergency telephone number to personnel capable of fielding roadside assistance and other customer service inquiries; and
g. the conditions, if any, under which a shared vehicle driver shall maintain a personal automobile insurance policy with certain applicable coverage limits on a primary basis in order to book a shared motor vehicle.
11. a. A peer-to-peer car sharing program shall not enter into a peer-to-peer car sharing program agreement with a shared driver unless the individual who will operate the shared vehicle:
(1) holds a driver's license issued under the New Jersey Motor Vehicle Commission that authorizes the driver to operate vehicles of the class of the shared vehicle;
(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 driver in that state or country to drive vehicles of the class of the shared vehicle; and
(b) is at least the same age as that required of a resident of the State to drive; or
(3) otherwise is specifically authorized by the New Jersey Motor Vehicle Commission to drive vehicles of the class of the shared vehicle.
b. A peer-to-peer car sharing program shall keep a record of:
(1) the name and address of the shared vehicle driver;
(2) the number of the driver's license of the shared vehicle driver and each other person, if any, who will operate the shared vehicle; and
(3) the place of issuance of the driver's license.
12. A peer-to-peer car sharing program shall have sole responsibility for any equipment, such as a GPS system or other special equipment that is put in or on the vehicle to monitor or facilitate the car sharing transaction and shall agree to indemnify and hold harmless the vehicle owner for any damage to or theft of such equipment during the car sharing period not caused by the shared vehicle owner. The peer-to-peer vehicle sharing program has the right to seek indemnity from the shared vehicle driver for any loss or damage to such equipment that occurs during the car sharing period.
13. a. At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a shared vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing program shall:
(1) verify that the shared vehicle does not have any safety recalls on the vehicle for which the repairs have not been made; and
(2) notify the shared vehicle owner of the requirements under subsection b. of this section.
b. (1) If the shared vehicle owner has received an actual notice of a safety recall on the vehicle, a shared vehicle owner shall not make a vehicle available as a shared vehicle on a peer-to-peer car sharing program until the safety recall repair has been made.
(2) If a shared vehicle owner receives an actual notice of a safety recall on a shared vehicle while the shared vehicle is made available on the peer-to-peer car sharing program, the shared vehicle owner shall remove the shared vehicle as available on the peer-to-peer car sharing program, as soon as practicably possible after receiving the notice of the safety recall and until the safety recall repair has been made.
(3) If a shared vehicle owner receives an actual notice of a safety recall while the shared vehicle is being used in the possession of a shared vehicle driver, as soon as practicably possible after receiving the notice of the safety recall, the shared vehicle owner shall notify the peer-to-peer car sharing program about the safety recall so that the shared vehicle owner may address the safety recall repair.
14. The Commissioner of Banking and Insurance may adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of this act.
15. This act shall take effect on the first day of the tenth month next following enactment. The commissioner may take anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.
STATEMENT
This bill establishes the "Peer-to-Peer Car Sharing Act."
Under the bill, a peer-to-peer car sharing program will assume the liability for bodily injury or property damage to third parties or uninsured and underinsured motorist or personal injury protection losses during the private vehicle sharing period in an amount that is no less than the minimum coverage amount for private passenger vehicles. The bill will also require a peer-to-peer car sharing program to assume primary liability if there is a dispute as to who was in control of the shared vehicle at the time of the loss.
The bill additionally provides for exclusions in motor vehicle liability insurance policies that will exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a shared vehicle owner's motor vehicle insurance policy.
The bill further provides recordkeeping requirements for peer-to-peer car sharing programs pertaining to the use of a vehicle and contains consumer protection disclosure requirements for peer-to-peer car sharing programs such as daily rates, fees, and if applicable, any insurance or protection package costs that are charged to the shared vehicle owner or the shared vehicle driver. The bill also provides that a peer-to peer car sharing program notify the shared vehicle owner if the shared vehicle has a lien against it, among other provisions.
