HB 6568 — AN ACT CONCERNING PEER-TO-PEER CAR SHARING.

(f)The automobileliabilityinsurancerequiredpursuanttosubsection (d) of this section and maintained pursuant to subsection (e) of this section shall assume primary liability for a claim:

(2) When a dispute exists as to who was in control of the shared vehicle at the time of the loss and the peer-to-peer car sharing programcompany doesnothaveavailable,didnotretainorfailstoprovidetheinformation required by section 5 of this act that relates to the claim;

or (3) When a dispute exists as to whether the shared vehicle was returned to the alternatively agreed upon location as communicated through the car sharing platform and incorporated into the car sharing program agreement.

(g)(f)Ifaclaimoccursduringthecarsharingperiodinanotherstatewith In the event that a claim occurs in another state that requires minimum amountsfinancial toresponsibility berequirements included in automobile liability insurance policies that are higher than the minimum amounts setrequired forthby insubsection regulations(a) adoptedof pursuant to section 38a-33414-112 of the general statutesstatutes, during the carautomobile sharingliability period,insurance thepolicy coverage maintained pursuant to subsection (e)(d) of this section shall satisfyprovide thecoverage differenceto insatisfy the minimum amounts required by the other state, up to the applicable policy limits.

(h)(g) If an automobile liability insurance policy maintained by a shared vehicle owner or shared vehicle driver has lapsed or does not provide thethecoveragerequiredpursuanttosubsection(c)ofthissection,thepeer- coverageto-peer required pursuant to subsection (d) of this section, the peer-to-peer car sharing program'scompany's automobile liability insurance policy sHB6568 / File No.

474756 4 sHB6568 File No.

474756 shall provide such coverage, beginning with the first dollar of a claim, and the insurance company issuing such policy shall have the duty to defend a claim except under circumstances as set forth in subsection (b) of this section.

(i)Coverage(h) Coverage under anautomobileinsurancean automobile insurance policy maintained by the peer-to-peer car sharing programcompany shall not be contingent on another automobile insurance company first denying a claim, nor shall such other insurance company be required to first deny a claim.

(j)(i) Nothing in this section shall:

(1) Limit the liability of the peer-to-peer car sharing programcompany for any act oromissionoftheprogramthatresultsinbodilyor omission of the company that results in bodily injury to any person as a result of the use of a shared vehicle through a program;car sharing platform;

or (2) Limit the ability of the peer-to-peer car sharing programcompany to contract for indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the programcompany resulting from a breach of the terms and conditions of the car sharing program agreement.

(NEW) (Effective January 1, 2022) When a vehicle owner registers as a shared vehicle owner with a peer-to-peer car sharing programbutcompany beforethesharedvehicleismadeavailableforbut peer-to-peerbefore the shared vehicle is made available on the car sharing,sharing platform, the peer-to-peer car sharing programcompany 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,platform, including use withoutwithoutphysicaldamagecoverage,mayviolatethetermsofthecontract physical damage coverage, may violate the terms of the contract with the lienholder.

SuchsHB6568 exclusions/ mayFile include,No. but are not limited to:

(1)756 Liability sHB6568 / File No.

474756 5Such sHB6568exclusions Filemay No.include, but are not limited to:

474(1) Liability coverage for bodily injury and property damage;

(NEW) (Effective January 1, 2022) A peer-to-peer car sharing programshallcollectcompany andverifyrecordsshall collect and verify records pertaining to theusethe ofashareduse of a shared vehicle, including, but not limited to, the times used, location of the car sharing start time and car sharing termination time, car sharing period fees paid by the shared vehicle driver and revenues received by the sharedvehicleowner.Theprogramshallprovidesuchrecords:(1)Upon request to the shared vehicle owner,owner. the shared vehicle owner's insurance company or the shared vehicle driver's insurance company to facilitate a claim coverage investigation, settlement, negotiation or litigation, or (2) as required by an agreement entered into pursuant to section 13 of this act.

The programcompany shall retainprovide thesuch recordsrecords: for a time period not less than the applicable personal injury statute of limitations.

(1) Upon request to the shared vehicle owner, the shared vehicle owner's insurance company or the shared vehicle driver's insurance company to facilitate a claim coverage investigation, settlement, negotiation or litigation, or (2) as required by an agreement entered into pursuant to section 13 of this act.

The company shall retain the records for a time period not less than the applicable personal injury statute of limitations.

(NEW) (Effective January 1, 2022) A peer-to-peer car sharing programcompany and a shared vehicle owner shall be exempt from vicarious liability in accordance with 49 USC 30106, as amended from time to time, and under any state law or municipal ordinance that imposes liability solely based on vehicle ownership.

(NEW) (Effective January 1, 2022) An insurance company that defends or indemnifies a claim against a shared vehicle that is excluded under the terms of its automobile liability insurance policy shall have a rightsHB6568 to/ seekrecoveryFile againstNo. theinsurance company ofthepeer-to-peer car sharing program if the claim is:

(1)756 Made against the shared vehicle sHB6568 / File No.

474756 6right sHB6568to Fileseekrecovery No.against theinsurance company ofthepeer-to-peer car sharing company if the claim is:

474(1) Made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period;

(NEW) (Effective January 1, 2022) (a) A peer-to-peer car sharing programcompany shall have an insurable interest in a shared vehicle during the car sharing period.

Nothing in this subsection shall create liability for a peer-to-peer car sharing programcompany for failure to maintain the insurance coverage required pursuant to section 2 of this act.

(b)A(b) A peer-to-peer car sharing programmaycompany ownandmaintain,asthemay own and maintain, as the named insured, one or more policies of automobile liability insurance that provides coverage for:

(1) Liability assumed by the peer-to-peerpeer- to-peer car sharing programcompany under a car sharing program agreement;

(NEW) (Effective January 1, 2022) Each car sharing programagreement agreementshall,ataminimum,disclosetothesharedvehicleownerandshall,at thea sharedminimum, disclose to thesharedvehicleowner andtheshared vehicle driver:

(1) Any right of the peer-to-peer car sharing programcompany to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the programcompany resulting from a breach of the terms and conditions of the car sharing program agreement;

(2) That an automobile 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;company;

(3) That the peer-to-peer car sharing program'scompany'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 may not havesHB6568 insurance/ coverage;File No.

sHB6568756 /sHB6568 File No.

474756 7have sHB6568insurance Filecoverage; No.

474 (4) The daily rate, fees and, if applicable, any insurance or protection package costs that are charged to the sharedvehicle owner or the shared vehicle driver;

Sec.10.(NEW)(EffectiveJanuary1,2022)(a)A peer-to-peercarsharing programcompany may not enter into a car sharing program agreement with a shared vehicle driver unless the shared vehicle driver holds an operator's license, as defined in section 14-1 of the general statutes, that authorizes the driver to operate a motor vehicle of the same class as the shared vehicle.

(b) A peer-to-peer car sharing programcompany shall keep a recordrecordof: of:

(NEW) (Effective January 1, 2022) A peer-to-peer car sharing programcompany is responsible for any equipment, such as a global positioning system, that is put in or on the shared vehicle to monitor or facilitate the carsharingtransaction.Theprogramshallindemnifyandholdharmlesscar the shared vehicle owner for any damage to or theft of such equipment during the sharing period,transaction. unless caused by the vehicle owner.

The peer-to-peercompany carshall sharingindemnify programand hashold harmless the rightshared vehicle owner for any damage to seekor indemnificationtheft fromthesharedvehicledriverforanylossordamagetosuchequipmentof thatsuch occursequipment during the car sharing period.period, unless caused by the vehicle owner.

The company has the right to seek indemnification from the shared vehicle driver for any loss or damage to such equipment that sHB6568 / File No.

756 sHB6568 File No.

756 occurs during the car sharing period.

(NEW) (Effective January 1, 2022) (a) When a shared vehicle sHB6568owner /registers Filea No.shared vehicle with a peer-to-peer car sharing company but before the shared vehicle is available on the car sharing platform, the company shall:

474 8 sHB6568 File No.

474 owner registers a shared vehicle with a peer-to-peer car sharing program but before the shared vehicle is available for peer-to-peer car sharing, the program shall:

(b) (1) If a shared vehicle owner received an actual notice of a safety recall for the shared vehicle, the shared vehicle owner shall not make the shared vehicle available withon athe peer-to-peer car sharing programplatform until the safety recall repair has been made.

(2)If a sharedvehicle owner receivesanactual notice ofasafety recall for a shared vehicle while the shared vehicle is made available on the peer-to-peer car sharing program,platform, the shared vehicle owner shall remove the shared vehicle's availability withon the programplatform as soon as practicable after receiving such notice and until the safety recall repair has been made.

(3)If a sharedvehicle owner receivesanactual notice ofasafety recall for a shared vehicle during the car sharing period, the shared vehicle owner shall notify both the shared vehicle driver and the peer-to-peer car sharing programcompany of the safety recall as soon as practicable.

(NEW) (Effective January 1, 2022) A peer-to-peer car sharing programcompany shall not permit the operation of peer-to-peer car sharing at Bradley International Airport unless such programcompany enters into an agreement with the Connecticut Airport Authority, established pursuant to section 15-120bb of the general statutes.

The Connecticut Airport Authority may charge and collect a reasonable fee from any such programcompany for the privilege of operating peer-to-peer car sharing at such airport.

Sec.

14.

(NEW) (Effective January 1, 2022) (a) As used in this section:

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756 sHB6568 File No.

756 (1) "Peer-to-peer car sharing facilitator" means any peer-to-peer car sharing company that (A) facilitates retail sales of at least two hundred fifty thousand dollars during the prior twelve-month period by shared vehicle owners by providing a car sharing platform;

(B) directly or indirectly through agreements or arrangements with third parties, collects payment for peer-to-peer car sharing and remits payments to the shared vehicle owners;

and (C) receives compensation or other consideration for such services;

and (2) "Peer-to-peer car sharing company", "shared vehicle owner", "car sharing platform" and "peer-to-peer car sharing" have the same meanings as provided in section 1 of this act.

(b) A peer-to-peer car sharing facilitator shall be required to obtain a permit to collect the tax set forth in subparagraph (G) of subdivision (1) of section 12-408 of the general statutes, as amended by this act, and shall be considered the retailer for each retail sale of peer-to-peer car sharing for a period of thirty consecutive calendar days or less that such facilitator facilitates on its car sharing platform for a shared vehicle owner.

Each peer-to-peer car sharing facilitator shall (1) be required to collect and remit for each such sale any tax imposed under section 12- 408 of the general statutes, as amended by this act, (2) be responsible for all obligations imposed under chapter 219 of the general statutes as if such facilitator was the owner of the shared vehicle and retailer for such sale, and (3) keep such records and information as may be required by the Commissioner of Revenue Services to ensure proper collection and remittance of such tax.

(c) A shared vehicle owner shall not be liable for the collection of the tax set forth in subparagraph (G) of subdivision (1) of section 12-408 of the general statutes, as amended by this act, to the extent the peer-to- peer car sharing facilitator collected the tax due on such sale.

Sec.

15.

Subparagraph (G) of subdivision (1) of section 12-408 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2022, and applicable to sales occurring on or after sHB6568 / File No.

756 sHB6568 File No.

756 January 1, 2022):

(G) With respect to the rental or leasing of a passenger motor vehicle orpeer-to-peercarsharing,asdefinedinsection1ofthisact, foraperiod of thirty consecutive calendar days or less, at a rate of nine and thirty- five-hundredths per cent;

Sec.

16.

Subparagraph (G) of subdivision (1) of section 12-411 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2022, and applicable to sales occurring on or after January 1, 2022):

(G) With respect to the rental or leasing of a passenger motor vehicle orpeer-to-peercarsharing,asdefinedinsection1ofthisact, foraperiod of thirty consecutive calendar days or less, at a rate of nine and thirty- five-hundredths per cent;

Sec.

17.

Section 12-665 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2022, and applicable to car sharing agreements executed on or after January 1, 2022):

A surcharge is hereby imposed on (1) the rental or leasing, for a period of thirty consecutive calendar days or less, of a passenger motor vehicle by any person licensed pursuant to section 14-15, [.

Said] and (2) peer-to-peer car sharing for a period of thirty consecutive calendar days or less.

Such surcharge shall be in addition to any tax otherwise applicable to any such transaction.

No surcharge shall be imposed under this section for the rental or leasing of a motor vehicle or for peer- to-peer car sharing pursuant to a written agreement or a car sharing agreement having a term of more than thirty days.

For the purposes of thissection,"peer-to-peer car sharing"and"car sharing agreement" have the same meanings as provided in section 1 of this act.

Sec.

18.

Section 12-666 of the general statutes is repealed and the following is substituted in lieu thereof (Effective January 1, 2022, and applicable to car sharing agreements executed on or after January 1, 2022):

sHB6568 / File No.

756 sHB6568 File No.

756 (a) For the purposes of this section, "peer-to-peer car sharing facilitator" has the same meaning as provided in section 14 of this act, and "car sharing period", "shared vehicle driver" and "peer-to-peer car sharing" have the same meanings as provided in section 1 of this act.

[(a)] (b) The surcharge imposed by section 12-665, as amended by this act, shall be at a rate of one dollar for each day, or portion thereof, up to thirty days, (1) for which the lessor charges the lessee for the rental or lease of such a motor vehicle, and (2) that is included in the car sharing period.

[(b)] (c) Reimbursement for the surcharge imposed by section 12-665, as amended by this act, shall be collected by the lessor from the lessee or by the peer-to-peer car sharing facilitator from the shared vehicle driver, as applicable, and such surcharge reimbursement, termed "surcharge" in this subsection, shall be paid by the consumer to the retailer and each retailer shall collect from the consumer the full amount ofthesurchargeimposedbysection12-665,asamendedbythisact.Such surcharge shall be a debt from the lessee to the lessor, when so added to the original lease or rental price or from the shared vehicle driver to the peer-to-peer car sharing facilitator, when so added to the original price for peer-to-peer car sharing, and shall be recoverable at law in the same manner as other debts.

(d) Whenever such surcharge, payable by the consumer with respect to a charge account or credit sale is remitted by the retailer to the commissioner and such sale as an account receivable is determined to be worthless and is actually written off as uncollectible for federal income tax purposes, the amount of such surcharge remitted may be credited against the surcharge due on the surcharge return filed by the retailer for the monthly or quarterly period, whichever is applicable, next following the period in which such amount is actually so written off, but in no event shall such credit be allowed later than three years following the date such surcharge is remitted.

The commissioner shall, by regulations adopted in accordance with chapter 54, provide standards for proving any such claim for credit.

If any account with sHB6568 / File No.

756 sHB6568 File No.

756 respect to which such credit is allowed is thereafter collected by the retailer in whole or in part, the amount so collected shall be included in the surcharge return covering the period in which such collection occurs.

Section 1 January 1, 2022 New section sHB6568Sec. / File No.

474 9 sHB6568 File No.

474 Sec.

11 January 1, 2022 New section January 1, 2022 Sec.

12 January 1, 2022 New section Sec.

13 January 1, 2022 New section TRASec. Joint Favorable Subst.

sHB656814 /January File1, No.2022 New section Sec.

47415 10January sHB65681, File2022, No.and 12-408(1)(G) applicable to sales occurring on or after January 1, 2022 Sec.

47416 TheJanuary following1, Fiscal2022, Impact Statement and Bill12-411(1)(G) Analysisapplicable areto preparedsales foroccurring theon benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or eitherafter chamberJanuary thereof1, for2022 anySec. purpose.

17 January 1, 2022, and 12-665 applicable to car sharing agreements executed on or after January 1, 2022 Sec.

18 January 1, 2022, and 12-666 applicable to car sharing agreements executed on or after January 1, 2022 sHB6568 / File No.

756 sHB6568 File No.

756 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

Agency Affected Fund-Effect FY 22 $ FY 23 $ CT Airport Authority Bradley See Below See Below International Airport Fund - Potential Revenue Gain MunicipalDepartment Impact:of Revenue Services Various - Up to $2.1 Up to $4.8 Revenue Gain million million (net) Note:

NoneVarious=Various ExplanationMunicipal TheImpact: bill allows the Connecticut Airport Authority to collect fees from peer-to-peer car sharing programs operating at Bradley International Airport and results in a potential revenue gain to the authority.

None Explanation The bill includes the following provisions which results in the fiscal impact noted below.

Sections 1 - 12 concern insurance requirements for private businesses, are technical in nature, or otherwise do not have a fiscal impact to the state.

Section 13 allows the Connecticut Airport Authority to collect fees from peer-to-peer (P2P) car sharing programs operating at Bradley International Airport and results in a potential revenue gain to the authority.

OtherSections sections14 of– the18 billresult concernin insurancea requirementsnet forrevenue privategain businesses,to arethe technicalstate inof nature,up orto otherwise$2.1 dosHB6568 not/ haveFile aNo. fiscal impact to the state.

756 sHB6568 File No.

756 million in FY 22 and up to $4.8 million annually thereafter by applying (1)the9.35% rentalcarsalestax and(2)the$1per daytourismsurcharge on rental cars to P2P car sharing services.

The 9.35% rental car sales tax is estimated to generate between $1.2 million and $3.9 million in additional revenue annually to the state.

The tourism surcharge is estimated to generate $900,000 annually.

Sales Tax Impact by Fund Tax collections generated from the 6.35% general sales tax are deposited into the General Fund (GF), Special Transportation Fund and the Municipal Revenue Sharing Account (beginning in FY 22).

The 9.35% car rental tax is deposited into the GF and the Regional Performance Incentive Account.

The table below provides the impact of the sales tax changes by fund under thebill.For illustrative purposes,theestimatesassume all P2P car sharing companies currently collect the 6.35% sales tax on services.

In1 this scenario the net total impact to the state would be a revenue gain of $1.2 million across all funds.

Illustrative Sales Tax Impact by Fund 6.35% 9.35% Rate Rate Impact of Fund Share Share Amendment General Fund 5.35% 8.35% 1,200,000 Special Transportation Fund 0.50% - (200,000) Municipal Revenue Sharing Account 0.50% - (200,000) Regional Performance Incentive Account - 1.00% 400,000 Total State Impact (net) 6.35% 9.35% 1,200,000 House "A" subjects P2P car sharing services to (1) the 9.35% rental car Certain P2P car sharing companies currently charge the 6.35% general sales tax even though it is unclear in statute whether that sales tax, or any other sales tax, is currently applicable.

sHB6568 / File No.

756 15 sHB6568 File No.

756 sales tax and (2) the $1 per day tourism surcharge on rental cars and results in the net revenue gain to the state described above.

474756 1116 sHB6568 File No.

474756 OLR Bill Analysis sHB 6568 (as amended by House "A")* AN ACT CONCERNING PEER-TO-PEER CAR SHARING PROGRAMS.

SUMMARY This bill imposes regulatory requirements on peer-to-peer (P2P) car sharing programscompanies (e.g., Turo and Getaround),Getaround) whichand provideon internet platforms through which individuals who share their vehicles withthrough otherthe peoplecompanies’ incar returnsharing forplatforms payment.(i.e., P2P car sharing).

The bill establishes insurance requirements for P2P car sharing, including requiring P2P car sharing programscompanies to:

ensure that vehicle owners and drivers participating in P2P car sharing are covered under a primary insurance policy that meets minimum requirements and recognizes that the vehicle is sharedavailable throughon a P2Pcar programsharing platform and 2.

UnderThe thebill,abill P2Pcarsubjects P2P car sharing programisprohibitedfor fromallowing30 P2Pdays caror sharingless atto Bradleythe International9.35% Airportsales unlessand ituse enterstax intoand an$1 agreementper withday thetourism Connecticutsurcharge, Airportboth Authorityof (CAA).which apply under current law to motor vehicle rentals.

CAAIt mayrequires charge“P2P and collect reasonable fees from a P2P program for the privilege of operating P2P car sharing atsHB6568 the/ airportFile (§13).No.

756 17 sHB6568 File No.

756 facilitators” to collect and remit the tax and surcharge under the same conditions that apply to short-term rental facilitators (e.g., Airbnb) for collecting and remitting room occupancy tax.

Under the bill, a P2P car sharing company is prohibited from allowing P2P car sharing at Bradley International Airport unless it enters into an agreement with the Connecticut Airport Authority (CAA).

CAA may charge and collect reasonable fees from a P2P company for the privilege of operating P2P car sharing at the airport (§ 13).

*House Amendment “A” (1) subjects P2P car sharing to sales and use tax and the tourism surcharge;

(2) defines “car sharing platform” and makes other minor changes to definitions;

and (3) makes other minor, technical, and conforming changes.

EFFECTIVE DATE:

January 1, 2022, except that (1) the sales tax provisions are applicable to sales occurring on or after that date and (2) the tourism surcharge is applicable to car sharing agreements executed on or after that date.

§ 1 — P2P CAR SHARING DEFINITIONS P2P Car Sharing The bill defines P2P car sharing as the authorized use of a “shared vehicle” for consideration by a person other than the “shared vehicle owner” through a car sharing platform.

A “car sharing platform” is a physical or electronic place that allows a shared vehicle owner to make a shared vehicle available for P2P car sharing and connect a shared vehicle owner with a shared vehicle driver.

It includes a store, booth, catalog, website, or dedicated software application.

A “P2P car sharing company” is any person, corporation, limited partnership, or other legal entity that operates a car sharing platform to enable P2P car sharing in Connecticut.

P2P car sharing companies exclude motor vehicle rental or leasing companies.

474756 1218 sHB6568 File No.

474756 EFFECTIVEShared DATE:Vehicles Under the bill, a “shared vehicle” is a vehicle that is available for sharing on a car sharing platform.

JanuaryIt 1,excludes 2022passenger §motor 1vehicles —used P2P CAR SHARING DEFINITIONS P2P Car Sharing The bill defines P2P car sharing as the authorized use of a “shared vehicle” by alicensed personrental othercompanies thanfor therental “sharedpurposes. vehicle owner” through a P2P car sharing program.

A “P2P“shared carvehicle sharingowner” program” is athe business entity that operates an online platform to connect a shared vehiclevehicle’s registered owner withor a sharedperson vehicleor driverentity tothe enableregistered peer-to-peerowner cardesignates. sharing in Connecticut.

P2PA car“shared sharingvehicle programsdriver” dois not include rental companies (i.e., business entities that rent passenger motor vehicles, rental trucks without a driver,person orauthorized machineryby andthe thatshared use,vehicle forowner rentalto purposes,drive athe motorshared vehicle fleetunder ofa fivecar orsharing moreagreement. vehicles (CGS § 12-692)).

SharedCar VehiclesSharing UnderAgreements The bill defines “car sharing agreement” as the bill,terms aand “sharedconditions vehicle”applicable isto a shared vehicle thatowner isand availablea forshared sharingvehicle throughdriver governing a P2Pshared carvehicle’s sharinguse. program.

It does not include a rental motor vehicle.

A “shared vehicle owner” is the shared vehicle’s registered owner, or a person or entity the registered owner designates.

A “shared vehicle driver” is a person authorized by the shared vehicle owner to drive the shared vehicle under a car sharing program agreement.

Car Sharing Program Agreements The bill defines “car sharing program agreement” as the terms and conditions applicable to a shared vehicle owner and a shared vehicle driver governing a shared vehicle’s use.

"car“car sharing period,"period,” which is the time period that begins withat the “car sharing delivery period” or, if there is no such period, withat the “car sharing start time,”time” and ends at the “car sharing termination time”;

sHB65682. / File No.

474“car 13sharing sHB6568delivery Fileperiod,” No.which is the time period during which a shared vehicle is being delivered to the location of the “car sharing start time,” if applicable, as documented by the car sharing agreement;

474 2.

“car sharing delivery period," which is the time period during which a shared vehicle is being delivered to the location of the “car sharing start time,” if applicable, as documented by the car sharing program agreement;

"car“car sharing start time"time” which is the time when a shared vehicle driver takes possession and control of the shared vehicle at or after thetime thesharedvehiclereservationisscheduledto begin under a car sharing program agreement.

the time period established under a car sharing programagreement for using a shared vehicle expires, if the shared vehicle is delivered to the location agreed upon in the agreement;

2.sHB6568 / File No.

the756 shared19 vehiclesHB6568 isFile returnedNo. to a location the shared vehicle owner and shared vehicle driver alternatively agree on as communicated through a peer-to-peer car sharing program and incorporated into the car sharing program agreement;

756 2.

the shared vehicle is returned to a location the shared vehicle owner and shared vehicle driver alternatively agree on as communicated through a car sharing platform and incorporated into the car sharing agreement;

§§ 2, 4, 5, 7 & 8 — INSURANCE PROVISIONS Assumption of Liability (§ 2(a)-(c))2(a) ThebillrequiresP2Pcarsharingprogramstoassumeasharedvehicle& (b)) The bill requires P2P car sharing companies to assume a shared vehicle owner’s liability for bodily injury or property damage to third parties, or uninsured or underinsured motorist or personal injury protection losses, during the car sharing period in the amount stated in the car sharing agreement.

It must be for at least as much as the minimumstate’s amounts set forth in regulations on the minimum provisionsauto thatinsurance mustcoverage beamounts included(see inBACKGROUND). auto insurance policies.

TheseHowever, regulationsthe currentlybill incorporateexempts P2P car sharing companies from assuming this liability when a shared vehicle owner (1) makes an intentional or fraudulent material misrepresentation or omission to the minimumcompany amountsor on the car sharing platform before the car sharing period in CGSwhich §14-112(a)(seethe BACKGROUND).liability arose or (2) acts in concert with a shared vehicle driver who fails to return the shared vehicle pursuant to the car sharing agreement.

sHB6568Required /Coverage File(§ No.2 (c), (d), (f) & (h)) The bill requires P2P car sharing companies to ensure that, during eachcarsharingperiod,thesharedvehicleownerandthesharedvehicle driver are insured under an auto insurance policy that:

474 14 sHB6568 File No.

474 However, the bill exempts P2P car sharing programs from assuming this liability when a shared vehicle owner (1) makes an intentional or fraudulent material misrepresentation or omission to the 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 car sharing program agreement.

This assumption of liability applies to bodily injury, property damage, uninsured and underinsured motorist or personal injury protection losses by damaged third parties as required by the state’s auto insurance coverage requirements.

Under the bill, the state’s requirements supersede provisions in the bill establishing when the car sharing period (and thus, the obligation for the program to assume liability) ends.

Required Coverage (§ 2 (d), (e), (g) & (i)) The bill requires P2P car sharing programs to ensure that, during eachcarsharingperiod,thesharedvehicleownerandthesharedvehicle driver are insured under an auto insurance policy that:

provides insurance coverage in amountsat setleast forth in regulations on the minimum provisionsamounts thatrequired mustby belaw includedfor in auto insurance policies,policies and 2.

either (a) recognizes that the shared vehicle insured under the policy is made available and used through a P2P car sharing programplatform or (b) does not exclude the use of a shared vehicle by a shared vehicle driver.

The required insurance coverage may be maintained by a shared vehicle owner, a shared vehicle driver, a P2P car sharing program, or all three.

If a claim occurs in another state that requires higher minimum auto insurance coverage than Connecticut does, the insurance policy must satisfy the difference in minimum amounts up to the applicable policy limits.

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474756 The billrequired prohibitsinsurance coverage undermay thebe P2Pmaintained carby sharinga program’sshared autovehicle insuranceowner, policya fromshared beingvehicle contingentdriver, on,a orP2P requiringcar that,sharing anothercompany, autoor insuranceall companythree. first denying a claim.

PrimaryIf Liabilitya (§claim 2(f))occurs Thein another state that requires higher minimum auto insurance requiredcoverage underthan Connecticut does, then the billinsurance policy must assumeprovide primarycoverage liabilityto forsatisfy athe claim:minimum amounts required by the other state up to the applicable policy limits.

The billprohibits coverage under theP2Pcar sharing company’sauto insurance policy from being contingent on another auto insurance company first denying a claim or requiring an initial claim denial.

Primary Liability (§ 2(e)) The insurance required under the bill must assume primary liability for a claim:

when there is a dispute over who controlled the shared vehicle at the time of loss and the P2P car sharing programcompany did not retain or fails to provide records on the vehicle’s use (see below);

when there is a dispute over whether the shared vehicle was returned to the alternatively agreed upon locationlocation, thatas wascommunicated through the car sharing platform and incorporated into the car sharing agreement.

Lapsed Policies (§ 2(h))2(g)) If a shared vehicle owner’s or shared vehicle driver’s auto insurance policy has lapsed or does not provide the required coverage, the bill requiresrequiresthat thattheP2Pcar the P2P car sharing program’scompany’spolicy policyprovidethecoverage provide the coverage from the first dollar of the claim.

The insurance company issuing the P2P car sharing program’scompany’s policy has the duty to defend a claim, except under certain circumstances (see “assumption of liability,” above).

Other Provisions (§ 2 (j))(i)) ThesHB6568 bill/ providesFile thatNo. nothing in its insurance provisions limits the P2P car sharing program’s:

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756 The bill provides that nothing in its insurance provisions limits the P2P car sharing company’s:

liability for any act or omissionthat results in bodily injury to any person as a result of using a shared vehicle through a programcar sharing platform or 2.

ability to contract for indemnification from the shared vehicle owner or thesharedvehicledriverthe shared vehicle driver for economiclosseconomic theprogramloss the company sustains due to a breach of the car sharing program agreement’s terms and conditions.

sHB6568Insurable /Interest File(§ No.8) Under the bill, a P2P car sharing company has an insurable interest in the shared vehicle during the car sharing period.

474However, 16the sHB6568bill Filespecifies No.that this provision does not make the P2P car sharing company liable for failure to maintain the bill’s required coverage.

474A InsurableP2P Interestcar (§sharing 8)company Undermay own and maintain, as the bill,named ainsured, one or more automobile liability insurance policies that covers (1) liability assumed by the P2P car sharing programcompany hasunder ana insurablecar interestsharing inagreement, (2) any liability of the shared vehicle duringowner, (3) damage or loss to the carshared sharingvehicle, period.or (4) any liability of the shared vehicle driver.

However, the bill specifies that this provision does not make the P2P car sharing program liable for failure to maintain the bill’s required coverage.

A P2P car sharing program may own and maintain, as the named insured, one or more automobile liability insurance policies that covers (1)liability assumed by theP2P car sharing programunder acar sharing program agreement, (2) any liability of the shared vehicle owner, (3) damage or loss to the shared vehicle, or (4) any liability of the shared vehicle driver.

The bill specifies that nothing in the provision allowing these exclusions (1) invalidates or limits an exclusion in an auto liability insurancesHB6568 policy,/ includingFile anyNo. policy that excludes coverage for motor vehicles made available for rent, sharing, hire or business use, or (2) invalidates, limits, or restricts an insurance company that offers automobile liability insurance coverage to underwrite, cancel, or not renew an insurance policy.

Right756 to22 Seek Recovery (§ 7) Under the bill, an insurance company that defends or indemnifies a claim against a shared vehicle owner that is excluded under the terms ofitsauto insurance policy hastheright to seek recovery against theP2P car sharing program’s insurance company if the claim is (1) made sHB6568 / File No.

474756 17insurance sHB6568policy, Fileincluding No.any policy that excludes coverage for motor vehicles made available for rent, sharing, hire or business use or (2) invalidates, limits, or restricts an insurance company that offers automobile liability insurance coverage to underwrite, cancel, or not renew an insurance policy.

474Right to Seek Recovery (§ 7) Under the bill, an insurance company that defends or indemnifies a claim against a shared vehicle owner that is excluded under the terms ofitsauto insurance policy hastheright to seek recovery against theP2P car sharing company’s insurance company if the claim is (1) made against the shared vehicle owner or shared vehicle driver for loss or injury that occurs during the car sharing period and (2) excluded under the policy’s terms.

Records (§ 5) The bill requires P2P car sharing programscompanies to collect and verify recordspertainingtoasharedvehicle’suse,including(1)thetimesused, (2) location of the car sharing start time and car sharing termination time, (3) car sharing period fees paid by the shared vehicle driver, and (4) revenue received by the shared vehicle owner.

The programcompany must retain the records for a time period not less than the applicable personal injurystatuteoflimitations(i.e.,twoyearsfromthedatewhentheinjury is first sustained or discovered or in the exercise of reasonable care should have been discovered (CGS § 52-584)).

P2P car sharing programscompanies must provide these records:records at the following times:

§ 3 — NOTICE REGARDING LIENS ThesHB6568 bill/ requiresFile P2PNo. car sharing programs to notify shared vehicle owners that, if the shared vehicle has a lien against it, the use of a shared vehicle through a P2P car sharing program (including without physical damage coverage) may violate the terms of a contract with the lien holder.

The756 program23 mustsHB6568 provideFile thisNo. notice when the vehicle owner registers with the P2P car sharing program as a shared vehicle owner but before the shared vehicle is made available for P2P car sharing.

§756 6 — VICARIOUS LIABILITY The bill exemptsrequires P2P car sharing programscompanies andto notify shared vehicle owners fromthat, vicariousif liability,the inshared accordancevehicle withhas a lien against it, the federaluse Gravesof Amendmenta (seeshared BACKGROUND),vehicle underthrough anya statecar lawsharing orplatform municipal(including sHB6568without /physical Filedamage No.coverage) may violate the terms of a contract with the lien holder.

474The 18company sHB6568must Fileprovide No.this notice when the vehicle owner registers with the P2P car sharing company as a shared vehicle owner but before the shared vehicle is made available on the car sharing platform.

474§ 6 — VICARIOUS LIABILITY The bill exempts P2P car sharing companies and shared vehicle owners from vicarious liability, in accordance with the federal Graves Amendment (see BACKGROUND), under any state law or municipal ordinance that imposes liability solely based on vehicle ownership.

§ 9 — REQUIRED DISCLOSURES The billrequiresthatbill carsharingrequires programagreements,ataminimum,that car sharing agreements, at a minimum, disclose the following to a shared vehicle owner and shared vehicle driver:

thetheP2Pcar P2P car sharing program’scompany’srightto rightseekindemnificationfrom to seek indemnification from the shared vehicle owner or the shared vehicle driver for any economic loss it sustains from a breach of the car sharing program agreement’s terms and conditions;

that the shared vehicle owner’s auto insurance policy for the shared vehicle or the shared vehicle driver’s auto policy does not provide a defense or indemnification for any claim asserted by the P2P car sharing program;company;

that the P2P car sharing program'scompany’s insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during the car sharing period and that, if the shared vehicle driver uses the shared vehicle after the car sharing termination time, thesharedvehicle driver andtheshared vehicleowner may not have insurance coverage;

the daily rate, fees and, if applicable, any insurance or protection packagesHB6568 costs/ thatFile areNo. charged to the shared vehicle owner or the shared vehicle driver;

756 24 sHB6568 File No.

756 package costs that are charged to the shared vehicle owner or the shared vehicle driver;

that the shared vehicle owner'sowner’s auto insurance may not provide coverage for a shared vehicle;

sHB6568§ /10 File— No.DRIVER’S LICENSE VERIFICATION The bill prohibits P2P car sharing companies from entering into a car sharing agreement with a shared vehicle driver unless the driver holds a driver’s license authorizing him or her to operate a vehicle of the same class as the shared vehicle.

474 19 sHB6568 File No.

474 § 10 — DRIVER’S LICENSE VERIFICATION The bill prohibits P2P car sharing programs from entering into a car sharing program agreement with a shared vehicle driver unless the driver holds a driver’s license authorizing him or her to operate a vehicle of the same class as the shared vehicle.

§ 11 — RESPONSIBILITY FOR EQUIPMENT Under the bill, a P2P car sharing company is responsible for any equipment (e.g., GPS systems) that is put in or on the shared vehicle to monitor or facilitate the car sharing transaction.

The programcompany must indemnify and holdharmlesssharedvehicleownersforanyequipmentdamageorthefthold harmless shared vehicle owners for any equipment damage or theft during the car sharing period,period unless the owner caused it.

The P2P programcompany has the right to seek indemnification from the shared vehicle driver for any equipment loss or damage that occurs during the car sharing period.

§ 12 — RECALLS The bill requires shared vehicle owners, when they receive notice of a safety recall for their shared vehicle, to get the required repairs made before making the vehicle available withon a P2P car sharing program.platform.

If the shared vehicle is madealready available on aP2Pa car sharing programwhenplatform awhen shared vehicle owner receives a recallsHB6568 notice,/ heFile orNo. she must remove the vehicle from the platform as soon as possible and keep it off until repairs are made.

It756 the25 sharedsHB6568 vehicleFile ownerNo. receives a recall notice during the sharing period, the owner must notify both the P2P car sharing program and the shared vehicle driver.

The756 bill requires P2P car sharing programs to (1) verify that a shared vehicle isowner notreceives subject to a safety recall fornotice, whichhe repairsor haveshe notmust beenremove madethe andvehicle (2)as notifysoon sharedas vehiclepossible ownersand ofkeep theirit obligationsoff relateduntil torepairs recalls.are made.

TheIt program must do this when the shared vehicle owner registersreceives a sharedrecall vehiclenotice withduring the programcar butsharing beforeperiod, the sharedowner vehiclemust isnotify availableboth forthe P2P car sharing.sharing company and the shared vehicle driver.

sHB6568The /bill Filerequires No.P2P car sharing companies to (1) verify that a shared vehicle is not subject to a safety recall for which repairs have not been made and (2) notify shared vehicle owners of their obligations related to recalls.

474The 20company sHB6568must Filedo No.this when the shared vehicle owner registers a shared vehicle with the company but before the shared vehicle is available on the car sharing platform.

474§§ BACKGROUND14-16 Minimum— AutoSALES InsuranceAND RequirementsUSE ConnecticutTAX lawAND requiresP2P aCAR driverSHARING toFACILITATORS maintainThe abill minimumexplicitly amountsubjects ofP2P autocar insurance,sharing includingto liabilitysales and uninsureduse andtax underinsuredat motoristthe (UI/UM)9.35% coverage.rate that currently applies to the rental or leasing of passenger motor vehicles.

As with motor vehicle rentals, the tax applies only to P2P car sharing for periods of 30 days or less.

It requires “P2P car sharing facilitators” to be considered retailers for each taxable retail sale of P2P car sharing.

A P2P car sharing facilitator is any P2P car sharing company that (1) facilitates at least $250,000 in retail sales during the prior 12-month period for shared vehicle owners by providing a car sharing platform;

(2) directly, or indirectly through third parties, collects payments for P2P car sharing and remits them to shared vehicle owners;

and (3) receives compensation or other consideration for these services.

Under the bill, P2P car sharing facilitators must do the following:

1.

obtain a sales tax permit to collect the 9.35% sales tax, 2.

collect and remit sales tax on each taxable sale they facilitate, 3.

be responsible for all of the obligations that state sales and use taxlawimposesasifit werethesharedvehicleownerandretailer sHB6568 / File No.

756 26 sHB6568 File No.

756 for the sale, and 4.

keep therecordsandinformationtheDRScommissioner requires to ensure proper sales tax collection and remittance.

The bill additionally provides that shared vehicle owners are not liable for collecting sales tax to the extent that the P2P car sharing facilitator collected the tax due.

Existing law applies similar requirements to marketplace facilitators and to short-term rental facilitators (e.g., Airbnb) for the sales they facilitate for sellers on their forums (CGS §§ 12-408e & -408h).

§§ 17 & 18 — TOURISM SURCHARGE The bill subjects P2P car sharing to the $1 per day tourism surcharge that currently applies to motor vehicle rentals by licensed rental car companies.

As with motor vehicle rentals, the surcharge applies only to P2P car sharing for periods of 30 days or less and is in addition to any other applicable tax.

The bill applies the surcharge to each full or partial day that is included in the car sharing period.

P2P car sharing facilitators must collect the surcharge from shared vehicle drivers and remit it.

When added to the original price of P2P car sharing, the surcharge becomes a debt from the shared vehicle driver to the P2P car sharing facilitator.

BACKGROUND Minimum Auto Insurance Requirements Connecticut law requires a driver to maintain a minimum amount of auto insurance, including liability and uninsured and underinsured motorist (UI/UM) coverage.

The law requiressHB6568 at/ leastFile $25,000No. per person and $50,000 per accident (CGS § 38a- 336).

756 27 sHB6568 File No.

756 requires at least $25,000 per person and $50,000 per accident (CGS § 38a- 336).

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