ARIZONA
HOUSE OF REPRESENTATIVES
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SB 1015: vehicle accidents; financial responsibility verification S/E: taxation; peer to peer car sharing |
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PRIME SPONSOR: Senator Livingston, LD 22 BILL STATUS: Transportation |
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Summary of the Strike-Everything Amendment to SB 1015
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. Subjects a vehicle rental transaction that is facilitated by a peer-to-peer car sharing program to all laws imposing taxes or fees on private passenger motor vehicle rental transactions.
a. Includes car rental surcharges relating to Arizona Tourism and Sports Authority and stadium districts.
b. Requires such taxes to be collected and remitted by the program.
2. Outlines licensing requirements for a peer-to-peer car sharing program that offers or sells insurance policies.
3. Permits a public airport to regulate peer-to-peer car sharing transactions that are conducted at the airport.
4. 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.
5. Exempts a peer-to-peer car sharing program and a shared vehicle owner from federal, state, or local government laws relating to vicarious liability.
6. Exempts a peer-to-peer car sharing program, a shared vehicle owner and driver from car rental surcharges relating the vehicle license tax.
7. 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.
8. 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.
Insurance
10. 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).
11. 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.
12. Specifies the insurance coverage is primary during each car sharing period.
13. Provides direction for a peer-to-peer car sharing program in the event the required insurance lapses or does not provide the required coverage.
14. 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.
15. Asserts laws governing peer-to-peer car sharing do not limit certain liabilities of the peer-to-peer car sharing program or the ability to seek indemnification.
16. Specifies an insurer may 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.
17. Permits 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.
18. Allows an insurer that defends or indemnifies a claim against a shared vehicle that is excluded under the terms of the policy to seek indemnification from the insurer of the peer-to-peer car sharing program provided the claim meets certain requirements.
19. 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 impose liability on a peer-to-peer car sharing program to maintain the insurance coverage as mandated by laws governing peer-to-peer car sharing.
Liens
20. 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
21. Delineates information that a program agreement must disclose to the shared vehicle owner and driver.
22. Outlines the requirements for a shared vehicle driver for entry into a program agreement.
23. Instructs a peer-to-peer car sharing program to keep specified records.
Safety Recalls
24. Directs the peer-to-peer car sharing program to:
a. 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; and
b. Notify the shared vehicle owner of the safety recall requirements.
25. Stipulates if the vehicle owner has received a safety recall notice, the owner may not make the vehicle available until the safety recall repair is made.
26. 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 but not later than 24 hours.
a. The owner may not make the vehicle available until the safety recall repair is made.
27. 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 but not later than 24 hours, so the owner may make a safety recall repair.
Miscellaneous
28. Prohibits the Department of Revenue (DOR) from disclosing information provided by a peer-to-peer car sharing program without written consent. (Sec. 2)
29. Requires a peer-to-peer car sharing program to register for a TPT license with DOR.
a. Adds there is no fee for a TPT license related to peer-to-peer vehicle sharing transactions. (Sec. 4)
30. Entitles a shared vehicle owner to an exclusion from any applicable taxes for any vehicle sharing transaction that is facilitated by a peer-to-peer car sharing program provided the owner has obtained:
a. Written notice that the program has a TPT license for the collection of applicable taxes; and
b. Transaction history documenting tax collected by the program. (Sec. 5)
31. Specifies a peer-to-peer car sharing program:
a. Must electronically remit applicable surcharges and 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 surcharge and tax information and provide the information to DOR upon request. (Sec. 6)
32. Outlines criteria for determining how peer-to-peer car sharing transactions are sourced. (Sec. 7)
33. Exempts, from the tax base of the personal property rental classification, the gross proceeds or gross income received by a shared vehicle owner from any vehicle sharing transaction for which a licensed peer-to-peer car sharing program has remitted such applicable taxes. (Sec. 8)
34. Specifies a broker as defined under the Model City Tax Code (MCTC) engaged in the renting or leasing of tangible personal property and who is a peer-to-peer car sharing program is subject to all of the following:
a. TPT licensure through DOR;
b. Statutory requirements relating to tax returns; and
c. Current tax rates imposed by a municipality or other jurisdiction under the MCTC. (Sec. 9)
35. Asserts any tax remitted relating to rentals of tangible personal property must be administered, collected and enforced by DOR and distributed in a uniform manner. (Sec. 9)
36. Stipulates a municipality or other jurisdiction may not collect taxes from a lessor of tangible personal property if the peer-to-peer car sharing program has provided written notice that the program has remitted the applicable tax. (Sec. 9)
a. Defines lessor. (Sec. 3)
37. Defines pertinent terms. (Sec. 1)
38. Contains an effective date of January 1, 2020. (Sec. 10)
39. Makes clarifying changes. (Sec. 3, 5, 6)
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Fifty-fourth Legislature SB 1015
First Regular Session Version 1: Transportation
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