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: House Engrossed |
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Overview
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. 1)
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 and be retained 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 shared vehicle 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.
5. Permits the peer-to-peer car sharing program to seek indemnity from the shared vehicle driver for any loss or damage to the equipment that occurs during the car sharing period.
6. Prohibits a peer-to-peer car sharing program from:
a. Offering or selling insurance, with exception;
b. Advertising, representing, or portraying itself as a licensed insurer, unless the program is a licensed insurer; and
c. Paying a person any compensation, fee or commission that is dependent on the placement of insurance under a peer-to-peer car sharing program's license.
i. Adds the prohibition does not prohibit production payments or incentive payments to an employee if the payments are not dependent on the sale of insurance.
7. Directs the peer-to-peer car sharing program to verify that the shared vehicle does not have any safety recalls for which repairs are not made prior to the vehicle becoming available for peer-to-peer car sharing.
8. Stipulates if the shared vehicle owner has received a safety recall notice, the owner may not make the vehicle available until the safety recall repair is made.
9. Stipulates if the shared 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.
10. 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
11. Requires a peer-to-peer car sharing program to assume certain liabilities of a shared vehicle owner in an amount not less than the amount as required by an insurance policy (15/30/10), with exception.
12. 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.
13. Specifies the insurance coverage is primary during each car sharing period.
14. Provides direction for a peer-to-peer car sharing program in the event the required insurance lapses or does not provide the required coverage.
15. Specifies the insurance coverage that is maintained by a peer-to-peer car sharing program is not dependent on a personal motor vehicle liability insurer first denying a claim.
16. Asserts laws governing peer-to-peer car sharing do not limit the peer-to-peer car sharing program liabilities or indemnification.
17. Specifies an insurer may deny any coverage and is not required to defend or indemnify any claim afforded under a shared vehicle owner's personal motor vehicle liability insurance policy.
a. Adds laws governing peer-to-peer car sharing do not invalidate or limit an exclusion contained in a motor vehicle liability insurance policy.
18. Prohibits an insurer from canceling, voiding, or rescinding a personal private passenger motor vehicle liability insurance policy solely on the basis that the vehicle covered has been made available for sharing through a peer-to-peer car sharing program.
19. Permits an insurer to cancel, void, rescind or refuse to renew a policy of personal private passenger liability insurance covering the shared vehicle if the policyholder fails to provide complete and accurate information about the use of the shared vehicle through the peer-to-peer car sharing program.
20. Allows the insurer to limit the number of vehicles that the insurer will insure on a single policy provided the vehicles are made available for sharing through a peer-to-peer car sharing program.
21. Allows an insurer that defends or indemnifies a claim against a shared vehicle that is excluded under the terms of the policy to seek contribution or indemnification from the insurer of the peer-to-peer car sharing program provided the claim meets certain requirements.
22. Asserts a peer-to-peer car sharing program has an insurable interest in a shared vehicle during the car sharing period.
a. Adds having an insurable interest does not require a peer-to-peer car sharing program to maintain the insurance coverage as mandated by laws governing peer-to-peer car sharing.
Liens
23. 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.
Car Sharing Program Agreements
24. Delineates information that a program agreement must disclose to the shared vehicle owner and driver.
25. Outlines the requirements for a shared vehicle driver for entry into a program agreement.
26. Instructs a peer-to-peer car sharing program to keep specified records.
Miscellaneous
27. Permits a public airport to regulate peer-to-peer car sharing transactions that are conducted at the airport. (Sec. 1)
28. Exempts a peer-to-peer car sharing program, a shared vehicle owner and driver from car rental surcharges relating to Arizona Tourism and Sports Authority, vehicle license tax, and stadium districts. (Sec. 1)
29. Requires a peer-to-peer car sharing program to obtain a TPT license. (Sec. 2)
31. Specifies a peer-to-peer car sharing program:
a. Must electronically remit applicable taxes;
b. Must electronically report taxes monthly and remit the aggregate total amounts of reach taxing jurisdictions;
c. Is not required to identify any shared vehicle owner on any return; and
d. Must retain tax information and provide the information to ADOR upon request. (Sec. 4)
32. Establishes a formula for the distribution of revenues collected from peer-to-peer car sharing transactions. (Sec. 6)
33. Outlines criteria for determining how shared vehicle transactions are sourced. (Sec. 7)
35. Defines pertinent terms. (Sec. 1)
36. Makes a conforming change. (Sec. 5)
37.
38.
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40. Fifty-fourth Legislature HB 2559
41. First Regular Session Version 3: House Engrossed
42.
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