ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2559: peer-to-peer car sharing |
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PRIME SPONSOR: Representative Grantham, LD 12 BILL STATUS: Commerce |
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Establishes law governing peer-to-peer car
sharing.
History
Persons engaged in the business of renting vehicles without drivers are prohibited from registering or renting the vehicle until they have procured public liability insurance and provided satisfactory proof of the ability to respond to damages with the Department of Transportation (A.R.S. § 28-2166).
Additionally, the person is required to collect a 5% surcharge on each rental contract that is for a period of 180 days or less. The surcharge is computed on the total amount stated in the rental contract, minus certain applicable taxes and fees that are imposed on the rental vehicle (A.R.S. § 28-5810). In addition, the Tourism and Sports Authority and stadium taxing districts may levy a surcharge on car rentals (A.R.S. §§ 5-839 & 48-4234).
Provisions
Peer-to-Peer Car Sharing (Sec. 2)
1. Requires the peer-to-peer car sharing program to collect and verify records relating to the use of a shared vehicle.
a. The records must be provided to specified parties upon request.
b. The records must be maintained for at least two years.
2. Exempts a peer-to-peer car sharing program and a shared vehicle owner from federal, state, or local government laws relating to vicarious liability.
3. Specifies the peer-to-peer car sharing program is solely responsible for any equipment that is put in or on a shared vehicle to monitor or facilitate the car sharing transaction.
4. Requires the peer-to-peer car sharing program to agree to indemnify and hold harmless the shared vehicle owner for any damage to or theft of the equipment that is not caused by the owner.
Safety Recalls
5. Directs the peer-to-peer car sharing program to verify that the shared vehicle does not have any safety recalls on the vehicle for which repairs are not made prior to the vehicle becoming available for peer-to-peer car sharing.
6. Stipulates if the vehicle owner has received a safety recall notice, the owner may not make the vehicle available as a shared vehicle until the safety recall repair is made.
7. Stipulates if the vehicle owner receives a safety recall notice while the vehicle is available, the owner must remove the vehicle from availability as soon as practicable.
a. The owner may not make the vehicle available until the safety recall repair is made.
8. Stipulates if a shared vehicle owner receives a safety recall notice while the vehicle is in possession of a shared vehicle driver, the owner must notify the peer-to-peer car sharing program as soon as practicable, so the owner may make a safety recall repair.
Insurance
9. Requires a peer-to-peer car sharing program to ensure that both the owner and the driver of the shared vehicle are insured under a motor vehicle liability insurance policy that meets specified criteria.
a. Allows the insurance policy to be maintained by any, or a combination of, the following:
i. A shared vehicle owner.
ii. A shared vehicle driver.
iii. A peer-to-peer car sharing program.
10. Specifies the insurance coverage is primary during each car sharing period.
11. Asserts laws governing peer-to-peer car sharing do not limit the peer-to-peer car sharing program liabilities or indemnification.
12. Allows an insurer to exclude any coverage and the duty to defend or indemnify any claim afforded under a shared vehicle owner's personal motor vehicle liability insurance policy.
13. Prescribes the circumstances which allow and prohibit an insurer from denying, canceling, voiding, terminating, rescinding, or refusing to renew a personal private passenger motor vehicle liability insurance policy covering a shared vehicle.
14. Allows an insurer to seek indemnification from the motor vehicle insurer of the peer-to-peer car sharing program against a claim of a shared vehicle that is excluded from the insurer's policy provided the claim meets specified criteria.
15. Asserts a peer-to-peer car sharing program has an insurable interest in a shared vehicle during the car sharing period.
a. Adds this does not impose liability on a peer-to-peer car sharing program to maintain the mandated coverages.
Liens
16. Stipulates the peer-to-peer car sharing program must notify the shared vehicle owner that using a shared vehicle that has a lien through a peer-to-peer car sharing program may violate the terms of the contract with the lienholder.
a. The peer-to-peer car sharing program must notify the owner prior to the shared vehicle becoming available on the peer-to-peer car sharing program.
Car Sharing Program Agreements
17. Delineates information that a program agreement must disclose to the shared vehicle owner and driver.
18. Outlines the requirements for a driver to enter into a program agreement.
Miscellaneous
19. Preempts peer-to-peer car sharing companies and shared vehicles from further regulation by a local government. (Sec. 1)
20. Exempts a peer-to-peer car sharing company, shared vehicle owner and driver from certain transaction privilege tax classifications and municipal taxes on income derived from peer-to-peer car sharing service transactions. (Sec. 2, 3, 4, 5, 6)
21. Defines pertinent terms. (Sec. 2)
22. Contains a conditional enactment clause. (Sec. 7)
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26. Fifty-fourth Legislature HB 2559
27. First Regular Session Version 1: Commerce
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