Florida 2020 Regular Session Status: In Committee

SB 478 — Motor Vehicle Rentals

Last action — Died in Banking and Insurance

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Motor Vehicle Rentals; Revising the applicability of the rental car surcharge; imposing the surcharge on certain motor vehicle leases or rentals by a peer-to-peer car-sharing program; specifying motor vehicle insurance requirements for shared vehicles on a peer-to-peer car-sharing program; requiring a peer-to-peer car-sharing program to assume specified liability of a shared vehicle owner; requiring a shared vehicle owner’s insurer to indemnify the peer-to-peer car-sharing program under certain circumstances, etc.

Bill Text

What changed in the latest version

467 added · 511 removed

467 line(s) added, 511 removed.

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Florida Senate - 2020 SB 478 By Senator Perry 8-00531B-20 2020478__ A bill to be entitled An act relating to motor vehicle rentals;
Florida Senate - 2020 CS for SB 478 By the Committee on Innovation, Industry, and Technology;
and Senator Perry 580-02633-20 2020478c1 A bill to be entitled An act relating to motor vehicle rentals;
defining and revising terms;
defining the terms “motor vehicle rental company” and “peer-to-peer car-sharing program”;
requiring specified surcharges to be imposed upon the lease or rental of a certain motor vehicle if the lease or rental is facilitated by a car-sharing service, a motor vehicle rental company, or a peer-to-peer vehicle-sharing program under certain circumstances;
revising the applicability of the rental car surcharge;
imposing the surcharge on certain motor vehicle leases or rentals by a peer-to-peer car sharing program;
specifying who must collect the surcharge;
making technical changes;
627.747, F.S.;
627.7483, F.S.;
providing financial responsibility requirements for peer-to-peer vehicle-sharing programs;
specifying motor vehicle insurance requirements for shared vehicles on a peer-to-peer car-sharing program;
providing applicability;
providing construction relating to such insurance;
requiring specified entities to maintain certain motor vehicle liability insurance;
requiring a peer-to-peer car-sharing program to assume specified liability of a shared vehicle owner;
providing certain indemnification requirements;
providing exceptions;
requiring a shared vehicle owner’s insurer to indemnify the peer-to-peer car-sharing program under certain circumstances;
authorizing a shared vehicle owner’s motor vehicle insurer to exclude certain coverages and the duty to defend or indemnify certain claims;
authorizing such insurer to seek contribution against the peer-to-peer car-sharing program’s insurer under certain circumstances;
requiring a peer-to-peer car-sharing program to notify the shared vehicle owner of certain lien information;
specifying recordkeeping and record disclosure requirements for peer-to-peer car-sharing programs;
specifying disclosure requirements for peer-to-peer car-sharing program agreements;
specifying shared vehicle driver license requirements;
specifying liability for damage to certain equipment in or on a shared vehicle;
specifying requirements for peer-to peer car-sharing programs relating to safety recalls on shared vehicles;
requiring a peer-to-peer vehicle-sharing program to give certain notice to a peer-to-peer vehicle owner relating to the implications of a lien under certain circumstances;
authorizing a certain insurer to exclude coverage and the duty to defend or indemnify a vehicle owner for any claim under his or her motor vehicle liability insurance policy;
providing construction;
requiring a peer-to-peer vehicle-sharing program to collect, verify, and retain certain records, subject to certain requirements;
requiring the program to provide the records to certain entities under certain circumstances;
authorizing a motor vehicle insurer that defends or indemnifies a claim arising from the operation of a peer-to-peer vehicle that is excluded under the terms of its policy to seek contribution against specified entities under certain circumstances;
providing that a peer-to-peer vehicle sharing program has an insurable interest in a vehicle during the sharing period;
providing construction;
authorizing a peer-to-peer vehicle-sharing program to own and maintain as the named insured policies of motor vehicle liability insurance which provide specified coverage;
requiring each peer-to-peer vehicle-sharing program agreement made in this state to disclose specified information to the peer-to-peer vehicle owner and the peer-to-peer vehicle driver;
requiring a peer-to-peer vehicle-sharing program to have sole responsibility for certain equipment;
requiring the program to agree to indemnify and hold harmless the owner for any damage to or theft of such equipment under certain circumstances;
authorizing the program to seek indemnity from the driver for any loss or damage to such equipment which occurs during the sharing period;
requiring a peer-to-peer vehicle sharing program to verify certain information and notify the peer-to-peer vehicle owner of certain requirements related to safety recalls, subject to certain requirements;
providing restrictions and requirements for the owner if he or she has received notice of a certain safety recall on the vehicle;
prohibiting a peer-to-peer vehicle-sharing program from entering into a certain agreement with a driver unless the driver meets specified requirements related to a driver license or authorization to drive peer-to peer vehicles;
prohibiting the program from renting a motor vehicle to another until the driver license of the peer-to-peer vehicle driver has been inspected and verified as being unexpired;
requiring the program to keep specified records;
requiring such records to be open to inspection by specified entities;
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providing that, under certain circumstances, the peer-to-peer vehicle-sharing program is deemed to have met specified requirements when the program requires the driver to verify at a certain time that he or she is duly licensed and that the license is unexpired;
72 Be It Enacted by the Legislature of the State of Florida:
37 Be It Enacted by the Legislature of the State of Florida:
74 Section 1. Section 212.0606, Florida Statutes, is amended to read:
39 Section 1. Section 212.0606, Florida Statutes, is amended to read:
(b) “Dealer” means a car-sharing service, motor vehicle rental company, or peer-to-peer vehicle-sharing program.
(b) “Motor vehicle rental company” means an entity that is in the business of providing motor vehicles to the public under a rental agreement for financial consideration.
(c) “Motor vehicle rental company” means an entity that is in the business of providing motor vehicles to the public under a rental agreement for 30 days or less for financial consideration.
(c) “Peer-to-peer car-sharing program” has the same meaning as in s.
(d) “Peer-to-peer vehicle-sharing program” has the same meaning as in s.
627.7483(1).
627.747.
(2) Except as provided in subsection (3) (2), a surcharge of $2 per day or any part of a day is imposed upon the lease or rental by a motor vehicle rental company or a peer-to-peer car sharing program of a motor vehicle that is licensed for hire and designed to carry fewer than nine passengers, regardless of whether the motor vehicle is licensed in this state, for financial consideration without transfer of the title of the motor vehicle.
(2)(1) Except as provided in subsection (3) (2), a surcharge of $2 per day or any part of a day is imposed upon the lease or rental of a motor vehicle that is licensed for hire and designed to carry fewer than nine passengers, regardless of whether the motor vehicle is licensed in this state, if the lease or rental is facilitated, in person or through digital means, by a car-sharing service, a motor vehicle rental company, or a peer-to-peer vehicle-sharing program for financial consideration without transfer of the title of the motor vehicle.
The surcharge is imposed regardless of whether the lease or rental occurs in person or through digital means.
The surcharge applies to only the first 30 days of the term of a lease or rental.
The surcharge applies to only the first 30 days of the term of a lease or rental and must be collected by the motor vehicle rental company or the peer-to-peer car-sharing program.
The surcharge imposed under this subsection does not apply to the lease, rental, or use of a motor vehicle from a location owned, operated, or leased by or for the benefit of an airport or airport authority For purposes of this subsection, the term “car-sharing service” means a membership-based organization or business, or division thereof, which requires the payment of an application or membership fee and provides member access to motor vehicles:
The car-sharing service shall collect the surcharge For purposes of this subsection, the term “car-sharing service” means a membership-based organization or business, or division thereof, which requires the payment of an application or membership fee and provides member access to motor vehicles:
142 The surcharge imposed under this subsection does not apply to the lease, rental, or use of a motor vehicle from a location owned, operated, or leased by or for the benefit of an airport or airport authority.
The surcharge imposed under this subsection does not apply to the lease, rental, or use of a motor vehicle from a location owned, operated, or leased by or for the benefit of an airport or airport authority.
Section 2. Section 627.747, Florida Statutes, is created to read:
Section 2. Section 627.7483, Florida Statutes, is created to read:
627.747 Peer-to-peer vehicle-sharing program.— (1) DEFINITIONS.—As used in this section, the term:
627.7483 Peer-to-peer car sharing.— (1) DEFINITIONS.—As used in this section, the term:
(a) “Peer-to-peer vehicle” or “vehicle” means a vehicle made available for sharing through a peer-to-peer vehicle sharing program, used nonexclusively for peer-to-peer vehicle sharing, and used by the peer-to-peer vehicle owner for personal use outside of peer-to-peer vehicle sharing.
(a) “Peer-to-peer car sharing” means the authorized use of a motor vehicle by an individual other than the vehicle’s owner through a peer-to-peer car-sharing program.
(b) “Peer-to-peer vehicle delivery period” or “delivery period” means the period of time during which a peer-to-peer vehicle is being delivered to the location where the peer-to peer vehicle-sharing start time commences, if applicable, as documented by the governing peer-to-peer vehicle-sharing program agreement.
The term does not include ridesharing as defined in s.
(c) “Peer-to-peer vehicle driver” or “driver” means an individual who has been authorized to drive the peer-to-peer vehicle by the peer-to-peer vehicle owner under a peer-to-peer vehicle-sharing program agreement.
341.031(9), a carpool as defined in s.
(d) “Peer-to-peer vehicle owner” or “owner” means the registered owner of a peer-to-peer vehicle made available for sharing to peer-to-peer vehicle drivers through a peer-to-peer vehicle-sharing program.
450.28(3), or the use of a motor vehicle under an agreement for a car-sharing service as defined in s.
(e) “Peer-to-peer vehicle sharing” or “sharing” means the authorized use of a peer-to-peer vehicle by an individual other than the peer-to-peer vehicle owner through a peer-to-peer vehicle-sharing program.
212.0606(1).
(f) “Peer-to-peer vehicle-sharing agreement” or “agreement” means the terms and conditions applicable to a peer-to-peer vehicle owner and a peer-to-peer vehicle driver which govern the use of a peer-to-peer vehicle through a peer-to-peer vehicle sharing program.
(b) “Peer-to-peer car-sharing delivery period” means the period during which a shared vehicle is delivered to the location of the peer-to-peer car-sharing start time, if applicable, as documented by the governing peer-to-peer car sharing program agreement.
(g) “Peer-to-peer vehicle-sharing period” or “sharing period” means the period of time that commences with the peer to-peer vehicle delivery period or, if there is no peer-to-peer vehicle delivery period, that commences with the peer-to-peer vehicle-sharing start time and in either case ends at the peer to-peer vehicle-sharing termination time.
(c) “Peer-to-peer car-sharing period” means the period beginning either at the peer-to-peer car-sharing delivery period, or, if there is no peer-to-peer car-sharing delivery period, at the peer-to-peer car-sharing start time, and ending at the peer-to-peer car-sharing termination time.
(h) “Peer-to-peer vehicle-sharing program” or “program” means a business platform that connects peer-to-peer vehicle owners with peer-to-peer vehicle drivers to enable the sharing of peer-to-peer vehicles for financial consideration.
(d) “Peer-to-peer car-sharing program” means a business platform that enables peer-to-peer car sharing by connecting motor vehicle owners with drivers for financial consideration.
(i) “Peer-to-peer vehicle-sharing start time” or “start time” means the time when the peer-to-peer vehicle becomes subject to the control of the peer-to-peer vehicle driver at or after the time the reservation of a peer-to-peer vehicle is scheduled to begin, as documented in the records of a peer-to peer vehicle-sharing program.
The term does not include a taxicab association or a transportation network company as defined in s.
(j) “Peer-to-peer vehicle-sharing termination time” or “termination time” means the earliest of the following events:
627.748(1).
1. The expiration of the agreed-upon period of time established for the use of a peer-to-peer vehicle according to the terms of the vehicle-sharing program agreement, if the peer to-peer vehicle is delivered to the location agreed upon in the peer-to-peer vehicle-sharing program agreement;
(e) “Peer-to-peer car-sharing program agreement” means the terms and conditions established by the peer-to-peer car-sharing program which are applicable to a shared vehicle owner and a shared vehicle driver and which govern the use of a shared vehicle through a peer-to-peer car-sharing program.
2. The expiration of the time period established for use of the peer-to-peer vehicle when the peer-to-peer vehicle is returned to an alternate location agreed upon by the peer-to peer vehicle owner and the peer-to-peer vehicle driver as communicated through a peer-to-peer vehicle-sharing program;
(f) “Peer-to-peer car-sharing start time” means the time when the shared vehicle is under the control of the shared vehicle driver, which occurs at or after the time the reservation of the shared vehicle is scheduled to begin, as documented in the peer-to-peer car-sharing program agreement.
or 3. The peer-to-peer vehicle owner or the owner’s authorized designee takes possession and control of the peer-to-peer vehicle.
(g) “Peer-to-peer car-sharing termination time” means the earliest of the following:
(2) FINANCIAL RESPONSIBILITY.— (a) A peer-to-peer vehicle-sharing program shall assume the liability of a peer-to-peer vehicle owner, except as provided in paragraph (b), for bodily injury or property damage to third parties or uninsured and underinsured motorist or personal injury protection losses during the peer-to-peer vehicle-sharing period in an amount stated in the peer-to-peer vehicle-sharing program.
1. The expiration of the agreed-upon period established for the use of a shared vehicle according to the terms of the peer to-peer car-sharing program agreement, if the shared vehicle is delivered to the location agreed upon in the peer-to-peer car sharing program agreement;
(b) The assumption of liability under paragraph (a) does not apply to any peer-to-peer vehicle owner when:
2. The time 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;
1. A peer-to-peer vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the peer to-peer vehicle-sharing program before the peer-to-peer vehicle sharing period in which the loss occurred;
or 3. The time the shared vehicle owner takes possession and control of the shared vehicle.
or 2. A peer-to-peer vehicle owner acts in concert with a peer-to-peer vehicle driver who fails to return the vehicle pursuant to the terms of the peer-to-peer vehicle-sharing program agreement.
(h) “Shared vehicle” means a motor vehicle that is available for sharing through a peer-to-peer car-sharing program.
(c) The assumption of liability under paragraph (a) applies to bodily injury and property damage losses by damaged third parties as required under s.
The term does not include a motor vehicle used for ridesharing as defined in s.
324.021(7).
341.031(9) or a motor vehicle used for a carpool as defined in s.
(d) A peer-to-peer vehicle-sharing program shall ensure that, during each peer-to-peer vehicle-sharing period, the peer to-peer vehicle owner and the peer-to-peer vehicle driver are insured under a motor vehicle liability insurance policy that provides insurance coverage in amounts no less than the minimum amounts provided in s.
450.28(3).
324.021(7), and:
(i) “Shared vehicle driver” means an individual who is authorized by the shared vehicle owner to drive the shared vehicle under the peer-to-peer car-sharing program agreement.
1. Recognizes that the peer-to-peer vehicle insured under the policy is made available and used through a peer-to-peer vehicle-sharing program;
(j) “Shared vehicle owner” means the registered owner, or a person or entity designated by the registered owner, of a motor vehicle made available for sharing to shared vehicle drivers through a peer-to-peer car-sharing program.
or 2. Does not exclude use of a peer-to-peer vehicle by a peer-to-peer vehicle driver.
(2) INSURANCE COVERAGE REQUIREMENTS.— (a)1. A peer-to-peer car-sharing program shall ensure during each peer-to-peer car-sharing period that the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle insurance policy that provides all of the following:
(e) The insurance requirement under paragraph (d) may be satisfied by motor vehicle liability insurance maintained by a peer-to-peer vehicle owner;
a. Property damage liability coverage that meets the minimum coverage amounts required under s.
a peer-to-peer vehicle driver;
324.022.
a peer-to-peer vehicle-sharing program;
b. Bodily injury liability coverage limits as specified in s.
or by a peer-to-peer vehicle owner, a peer-to-peer vehicle driver, and a peer-to-peer vehicle-sharing program.
324.021(7)(a) and (b).
(f) The insurance maintained under paragraph (e) which satisfies the insurance requirement under paragraph (d) must be primary during each peer-to-peer vehicle-sharing period.
c. Personal injury protection benefits that meet the minimum coverage amounts required under s.
(g) The peer-to-peer vehicle-sharing program must assume primary liability for a claim when it is providing, in whole or in part, the insurance required under paragraphs (d) and (e) and:
627.736.
1. A dispute exists as to who was in control of the peer to-peer vehicle at the time of the loss;
d. Uninsured and underinsured vehicle coverage as required under s.
and 2. The peer-to-peer vehicle-sharing program does not have available, did not retain, or fails to provide the information required in paragraph (11)(c).
627.727.
(h) The peer-to-peer vehicle owner’s insurer shall indemnify the peer-to-peer vehicle-sharing program to the extent of the insurer’s obligation, if any, under the applicable insurance policy, if it is determined that the peer-to-peer vehicle owner was in control of the peer-to-peer vehicle at the time of the loss.
2. The peer-to-peer car-sharing program shall also ensure that the motor vehicle insurance policy under subparagraph 1.:
(i) If insurance maintained by a peer-to-peer vehicle owner or peer-to-peer vehicle driver in accordance with paragraph (e) lapses or does not provide the required coverage, insurance maintained by a peer-to-peer vehicle-sharing program shall provide the coverage required by paragraph (d) beginning with the first dollar of a claim and the insurer has the duty to defend such claim except under circumstances specified in paragraph (b).
a. Recognizes that the shared vehicle insured under the policy is made available and used through a peer-to-peer car sharing program;
(j) Coverage under a motor vehicle insurance policy maintained by the peer-to-peer vehicle-sharing program may not be dependent on another motor vehicle insurer first denying a claim.
and b. Does not exclude the use of a shared vehicle by a shared vehicle driver.
(k) This subsection does not:
(b)1. The insurance requirements under paragraph (a) may be satisfied by a motor vehicle insurance policy maintained by:
1. Limit the liability of the peer-to-peer vehicle-sharing program for any act or omission of the program itself which results in injury to any person as a result of the use of a peer-to-peer vehicle through the peer-to-peer vehicle-sharing program;
a. A shared vehicle owner;
or 2. Limit the ability of the peer-to-peer vehicle-sharing program to seek indemnification, by contract, from the peer-to peer vehicle owner or the peer-to-peer vehicle driver for economic losses the peer-to-peer vehicle-sharing program sustains which result from a breach of the terms and conditions of the peer-to-peer vehicle-sharing program agreement.
b. A shared vehicle driver;
(3) NOTIFICATION OF IMPLICATIONS OF A LIEN.—At the time a peer-to-peer vehicle owner registers a vehicle for use through a peer-to-peer vehicle-sharing program and before the owner makes the vehicle available for use through the program, the program must notify the owner that, if the vehicle has a lien against it, the use of the vehicle through the program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.
c. A peer-to-peer car-sharing program;
(4) EXCLUSIONS IN MOTOR VEHICLE LIABILITY INSURANCE POLICIES.— (a) An authorized insurer that writes motor vehicle liability insurance in this state may exclude any coverage and the duty to defend or indemnify for any claim under the peer-to peer vehicle owner’s motor vehicle liability insurance policy, including, but not limited to:
or d. A combination of a shared vehicle owner, a shared vehicle driver, and a peer-to-peer car-sharing program.
2. The insurance policy maintained in subparagraph 1.
which satisfies the insurance requirements under paragraph (a) is primary during each peer-to-peer car-sharing period.
3.a. If the insurance maintained by a shared vehicle owner or shared vehicle driver in accordance with subparagraph 1.
lapses or does not provide the coverage required under paragraph (a), the insurance maintained by the peer-to-peer car-sharing program must provide the coverage required under paragraph (a) beginning with the first dollar of a claim and must defend such claim, except under circumstances as set forth in subparagraph (3)(a)2.
b. Coverage under a motor vehicle insurance policy maintained by the peer-to-peer car-sharing program may not be dependent on another motor vehicle insurer first denying a claim, and another motor vehicle insurance policy is not required to first deny a claim.
c. Notwithstanding any other law to the contrary, a peer to-peer car-sharing program has an insurable interest in a shared vehicle during the peer-to-peer car-sharing period.
This sub-subparagraph does not create liability for a network for maintaining the coverage required under paragraph (a) and under this paragraph, if applicable.
d. A peer-to-peer car-sharing program may own and maintain as the named insured one or more policies of motor vehicle insurance which provide coverage for:
(I) Liabilities assumed by the peer-to-peer car-sharing program under a peer–to–peer car-sharing program agreement;
(II) Liability of the shared vehicle owner;
(III) Liability of the shared vehicle driver;
(IV) Damage or loss to the shared motor vehicle;
or (V) Damage, loss, or injury to persons or property to satisfy the personal injury protection and uninsured and underinsured motorist coverage requirements of this section.
e. Insurance required under paragraph (a), when maintained by a peer-to-peer car-sharing program, may be provided by an insurer authorized to do business in this state which is a member of the Florida Insurance Guaranty Association or by an eligible surplus lines insurer that has a superior, excellent, exceptional, or equivalent financial strength rating by a rating agency acceptable to the office.
A peer-to-peer car-sharing program is not transacting in insurance when it maintains the insurance required under this section.
(3) LIABILITIES AND INSURANCE EXCLUSIONS.— (a) Liability.— 1. A peer-to-peer car-sharing program shall assume liability, except as provided in subparagraph 2., 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 peer-to-peer car-sharing period in amounts stated in the peer-to-peer car-sharing program agreement.
Such amounts may not be less than those set forth in ss.
324.021(7)(a) and (b), 324.022, 627.727, and 627.736, respectively.
2. The assumption of liability under subparagraph 1.
does not apply if a shared vehicle owner:
a. Makes an intentional or fraudulent material misrepresentation or omission to the peer-to-peer car-sharing program before the peer-to-peer car-sharing period in which the loss occurs;
or b. Acts in concert with a shared vehicle driver who fails to return the shared vehicle pursuant to the terms of the peer to-peer car-sharing program agreement.
3. A peer-to-peer car-sharing program shall assume primary liability for a claim when it is providing, in whole or in part, the insurance required under paragraph (2)(a) and:
a. A dispute exists as to who was in control of the shared motor vehicle at the time of the loss;
and b. The peer-to-peer car-sharing program does not have available, did not retain, or fails to provide the information required under subsection (5).
309 The shared vehicle owner’s insurer shall indemnify the peer-to peer car-sharing program to the extent of the insurer’s obligation, if any, under the applicable insurance policy if it is determined that the shared vehicle owner was in control of the shared motor vehicle at the time of the loss.
(b) Exclusions in motor vehicle insurance policies.—An authorized insurer that writes motor vehicle liability insurance in this state may exclude any coverage and the duty to defend or indemnify for any claim afforded under a shared vehicle owner’s motor vehicle insurance policy, including, but not limited to:
(b) This subsection does not invalidate or limit an exclusion contained in a motor vehicle liability insurance policy, including any insurance policy in use or approved for use which excludes coverage for motor vehicles made available for rent, hire, or for any business use, including peer-to-peer vehicle sharing.
327 This paragraph does not invalidate or limit any exclusion contained in a motor vehicle insurance policy, including any insurance policy in use or approved for use which excludes coverage for motor vehicles made available for rent, sharing, or hire or for any business use.
(5) RECORDKEEPING.— (a) A peer-to-peer vehicle-sharing program must collect and verify records pertaining to the use of peer-to-peer vehicles, including, but not limited to, times used, fees paid by the peer-to-peer vehicle driver, and revenues received by the peer to-peer vehicle owner.
(c) Contribution against indemnification.—A shared vehicle owner’s motor vehicle insurer that defends or indemnifies a claim against a shared vehicle which is excluded under the terms of its policy has the right to seek contribution against the motor vehicle insurer of the peer-to-peer car-sharing program if the claim is made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the peer to-peer car-sharing period.
(b) Pursuant to all applicable federal and state privacy obligations, and after receiving the informed consent of the peer-to-peer vehicle owner and the peer-to-peer vehicle driver, a peer-to-peer vehicle-sharing program must provide the information collected pursuant to paragraph (a), upon request, to the owner, the owner’s insurer, and the driver’s insurer to facilitate a claim investigation.
(4) NOTIFICATION OF IMPLICATIONS OF LIEN.—At the time a motor vehicle owner registers as a shared vehicle owner on a peer-to-peer car-sharing program and before the shared vehicle owner may make a shared vehicle available for peer-to-peer car sharing on the peer-to-peer car-sharing program, the peer-to peer car-sharing program must 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 the use without physical damage coverage, may violate the terms of the contract with the lienholder.
(c) The program must retain the records required in this subsection for not less than 3 years.
(5) RECORDKEEPING.—A peer-to-peer car-sharing program shall:
(6) CONTRIBUTION AGAINST INDEMNIFICATION.—A motor vehicle insurer that defends or indemnifies a claim arising from the operation of a peer-to-peer vehicle that is excluded under the terms of its policy may seek contribution against the peer-to peer vehicle-sharing program if the claim is made against the peer-to-peer vehicle owner or the peer-to-peer vehicle driver for loss or injury that occurs during the peer-to-peer vehicle sharing period.
(a) Collect and verify records pertaining to the use of a shared vehicle, including, but not limited to, the times used, fees paid by the shared vehicle driver, and revenues received by the shared vehicle owner.
(7) INSURABLE INTEREST.— (a) A peer-to-peer vehicle-sharing program has an insurable interest in a vehicle during the sharing period.
(b) Retain the records in paragraph (a) for a period of not less than the applicable personal injury statute of limitations.
(b) This subsection does not impose liability on a peer-to peer vehicle-sharing program to maintain the coverage mandated by subsection (2).
(c) Provide the information contained in the records under paragraph (a) 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.
(c) A peer-to-peer vehicle-sharing program may own and maintain as the named insured one or more policies of motor vehicle liability insurance which provide coverage for:
(6) CONSUMER PROTECTIONS.— (a) Disclosures.—Each peer-to-peer car-sharing program agreement made in this state must disclose to the shared vehicle owner and the shared vehicle driver:
1. Liabilities assumed by the peer-to-peer vehicle-sharing program under agreement;
1. 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 resulting from a breach of the terms and conditions of the peer-to-peer car-sharing program agreement.
2. Liability of the peer-to-peer vehicle owner;
2. That a motor vehicle 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.
3. Damage or loss to the vehicle;
3. 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 peer-to-peer car-sharing period and that, for any use of the shared vehicle by the shared vehicle driver after the peer-to-peer car-sharing termination time, the shared vehicle driver and the shared vehicle owner may not have insurance coverage.
or 4. Liability of the peer-to-peer vehicle driver.
4. 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.
(8) CONSUMER PROTECTIONS.— (a) Each peer-to-peer vehicle-sharing program agreement made in this state must disclose to the peer-to-peer vehicle owner and the peer-to-peer vehicle driver:
5. That the shared vehicle owner’s motor vehicle liability insurance may exclude coverage for a shared vehicle.
1. Any right of a program to seek indemnification from the owner or the driver for economic losses the program sustains which result from a breach of the terms and conditions of the agreement;
6. An emergency telephone number of the personnel capable of fielding calls for roadside assistance and other customer service inquiries.
2. That a motor vehicle liability insurance policy issued to the owner for the peer-to-peer vehicle or to the driver does not provide defense indemnity for any claim asserted by the program;
7. Any conditions under which a shared vehicle driver must maintain a personal motor vehicle insurance policy with certain applicable coverage limits on a primary basis in order to book a shared vehicle.
3. That the program’s financial responsibility afforded to the owner and driver is available only during the peer-to-peer vehicle-sharing period;
(b) Driver license verification and data retention.— 1. A peer-to-peer car-sharing program may not enter into a peer-to-peer car-sharing program agreement with a driver unless the driver:
4. That, for any use of the peer-to-peer vehicle by the driver after the peer-to-peer vehicle-sharing termination time, the driver and owner may not have coverage;
a. Holds a driver license issued under chapter 322 which authorizes the driver to drive vehicles of the class of the shared vehicle;
5. The daily rate, fees, costs, and, if applicable, any insurance or protection package costs that are charged to the owner or driver;
b. Is a nonresident who:
and 6. That the peer-to-peer vehicle owner’s motor vehicle liability insurance may not provide coverage for the vehicle.
(I) Holds a driver license issued by the state or country of the driver’s residence which authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle;
(b) Each peer-to-peer vehicle-sharing program agreement made in this state must disclose to the peer-to-peer vehicle driver:
and (II) Is at least the same age as that required of a resident to drive;
1. An emergency telephone number to contact personnel capable of fielding roadside assistance requests and other customer service inquiries;
or c. Is otherwise specifically authorized by the Department of Highway Safety and Motor Vehicles to drive vehicles of the class of the shared vehicle.
and 2. Any conditions under which a driver must maintain a personal motor vehicle insurance policy, and any required coverage limits, on a primary basis in order to rent the peer to-peer vehicle.
2. A peer-to-peer car-sharing program shall keep a record of:
(9) RESPONSIBILITY FOR EQUIPMENT.—The peer-to-peer vehicle sharing program has sole responsibility for any equipment that is put in or on the vehicle, such as a GPS system or other device, used to monitor or facilitate the sharing, and must agree to indemnify and hold harmless the owner for any damage to or theft of such equipment during the sharing period which is not caused by the owner.
a. The name and address of the shared vehicle driver;
The program may seek indemnity from the driver for any loss or damage to such equipment which occurs during the sharing period.
b. The driver license number of the shared vehicle driver and of any other person who will operate the shared vehicle;
(10) AUTOMOBILE SAFETY RECALLS.— (a) At the time an owner registers a vehicle for use in the program, and before the owner makes the vehicle available for use, the peer-to-peer vehicle-sharing program must:
and c. The place of issuance of the driver license.
1. Verify that the vehicle does not have any safety recalls for which repairs have not been made;
(c) Responsibility for equipment.—A peer-to-peer car sharing program has sole responsibility for any equipment that is put in or on the shared vehicle to monitor or facilitate the peer-to-peer car-sharing transaction, including a GPS system.
and 2. Notify the owner of the requirements under paragraph (c).
The peer-to-peer car-sharing program shall indemnify and hold harmless the shared vehicle owner for any damage to or theft of such equipment during the peer-to-peer car-sharing period which is not caused by the shared vehicle owner.
(b) The program must periodically, at least once in each 72-hour period, verify that any vehicle available for use through the program is not subject to an open safety recall for which repairs have not been made.
The peer-to-peer car sharing program may seek indemnity from the shared vehicle driver for any damage to or loss of such equipment which occurs outside of the peer-to-peer car-sharing period.
(c) If the peer-to-peer vehicle owner has received notice of a safety recall on the vehicle, he or she may not make the vehicle available for use through a peer-to-peer vehicle-sharing program until the safety recall repair has been made.
(d) Motor vehicle safety recalls.—At the time a motor vehicle owner registers as a shared vehicle owner on a peer-to peer car-sharing program and before the shared vehicle owner may make a shared vehicle available for peer-to-peer car sharing on the peer-to-peer car-sharing program, the peer-to-peer car sharing program must:
Upon receiving notice of a safety recall on the vehicle when it is available for use through the program, the owner shall remove the vehicle from availability as soon as practicable, but in no case more than 48 hours after receiving the notice of the safety recall, and until the safety recall repair has been made.
1. Verify that the shared vehicle does not have any safety recalls on the vehicle for which the repairs have not been made;
Upon receiving notice of a safety recall on the vehicle, and in no case more than 48 hours after such receipt, when such vehicle is in the possession of the driver, the owner must notify the program of the safety recall so that the program may notify the driver and the vehicle can be removed from use until the owner effects the necessary safety recall repair.
and 2. Notify the shared vehicle owner that if the shared vehicle owner:
(11) DRIVER LICENSE VERIFICATION AND RETENTION.— (a) A peer-to-peer vehicle-sharing program may not enter into a peer-to-peer vehicle-sharing program agreement with a driver unless the driver who will operate the peer-to-peer vehicle:
a. Has received an actual notice of a safety recall on the vehicle, he or she may not make a vehicle available as a shared vehicle on the peer-to-peer car-sharing program until the safety recall repair has been made.
1. Holds an unexpired driver license in this state which authorizes the driver to operate vehicles of the class of the peer-to-peer vehicle;
b. 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, he or she must remove the shared vehicle’s availability on the peer-to-peer car-sharing program as soon as practicable after receiving the notice of the safety recall and until the safety recall repair has been made.
or 2. Is a nonresident who:
c. Receives an actual notice of a safety recall while the shared vehicle is in the possession of a shared vehicle driver, he or she must notify the peer-to-peer car-sharing program about the safety recall as soon as practicably possible after receiving the notice of the safety recall so that he or she may address the safety recall repair.
a. Has an unexpired driver license issued by the state or country of the driver’s residence which authorizes the driver in that state or country to drive vehicles of the class of the peer-to-peer vehicle;
(7) CONSTRUCTION.—This section does not limit:
and b. Is at least the same age as that required of a resident to drive.
(a) The liability of a peer-to-peer car-sharing program for any act or omission of the peer-to-peer car-sharing program which results in the bodily injury to a person as a result of the use of a shared vehicle through peer-to-peer car sharing;
(b) A peer-to-peer vehicle-sharing program may not rent a motor vehicle to another until the driver license of the peer to-peer vehicle driver has been inspected and the program has verified that the driver license is unexpired.
or (b) The ability of a peer-to-peer car-sharing program to seek by contract indemnification from the shared vehicle owner or the shared vehicle driver for economic loss resulting from a breach of the terms and conditions of the peer-to-peer car sharing program agreement.
(c) A peer-to-peer vehicle-sharing program must keep a record of:
Section 3. This act shall take effect October 1, 2020.
1. The registration number of the peer-to-peer vehicle;
2. The name and address of the peer-to-peer vehicle driver;
3. The driver license number of the peer-to-peer vehicle driver and the place where the license was issued;
and 4. Each other person, if any, who will operate the peer-to peer vehicle.
(d) Such record must be open to inspection by any police officer, or officer or employee of the Department of Law Enforcement.
(e) If a peer-to-peer vehicle-sharing program rents a peer to-peer vehicle to a driver through digital, electronic, or other means that allow the driver to obtain possession of the vehicle without direct contact with an agent, an employee of the peer-to-peer vehicle-sharing program, or the vehicle owner, or if the driver does not execute a peer-to-peer vehicle-sharing program agreement at the time he or she takes possession of the vehicle, the peer-to-peer vehicle-sharing program is deemed to have met all requirements of paragraphs (a) and (b) when the program, at the time the driver enrolls in a membership program, master agreement, or other means of establishing use of the program’s services, or any time thereafter, requires the driver to verify that he or she is duly licensed and that the license is unexpired.
Section 3. This act shall take effect July 1, 2020.
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Action History

  1. Died in Banking and Insurance

  2. Indefinitely postponed and withdrawn from consideration

  3. On Committee agenda-- Banking and Insurance, 02/19/20, 1:30 pm, 412 Knott Building --Temporarily Postponed

  4. On Committee agenda-- Banking and Insurance, 02/11/20, 2:00 pm, 412 Knott Building --Temporarily Postponed

  5. On Committee agenda-- Banking and Insurance, 02/04/20, 12:30 pm, 412 Knott Building --Temporarily Postponed

  6. Now in Banking and Insurance

  7. CS by Innovation, Industry, and Technology read 1st time

  8. Pending reference review under Rule 4.7(2) - (Committee Substitute)

  9. CS by Innovation, Industry, and Technology; YEAS 9 NAYS 0

  10. On Committee agenda-- Innovation, Industry, and Technology, 01/27/20, 1:30 pm, 110 Senate Building

  11. Introduced

  12. Referred to Innovation, Industry, and Technology; Banking and Insurance; Appropriations

  13. Filed

Sponsors

  • Perry · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 163 not signed on

Sponsors (1)

  • Perry

Co-sponsors (0)

None.

Not signed on (163)

163 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

What does SB 478 do?
Motor Vehicle Rentals; Revising the applicability of the rental car surcharge; imposing the surcharge on certain motor vehicle leases or rentals by a peer-to-peer car-sharing program; specifying motor vehicle insurance requirements for shared vehicles on a peer-to-peer car-sharing program; requiring a peer-to-peer car-sharing program to assume specified liability of a shared vehicle owner; requiring a shared vehicle owner’s insurer to indemnify the peer-to-peer car-sharing program under certain circumstances, etc.
Who sponsors SB 478?
SB 478 is sponsored by Perry.
What is the current status of SB 478?
This bill died with 2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 478?
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