Substitute House Bill 2773 - Peer-to-Peer Vehicle Sharing Program Act (State of Washington, 66th Legislature)

Summary

Substitute House Bill 2773 of the State of Washington, 66th Legislature, by House Consumer Protection & Business (originally sponsored by Representatives Kirby and Vick), read first time 02/07/20. It is an act relating to transportation that adds a new chapter to Title 46 RCW and provides an effective date. The bill states that it may be known and cited as the peer-to-peer vehicle sharing program act, and that the chapter is intended to govern the intersection of peer-to-peer car services and the state-regulated business of insurance. It sets out definitions, including car sharing program agreement, and states that the act takes effect January 1, 2021.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

     H-4782.1

                           SUBSTITUTE HOUSE BILL 2773


     State of Washington         66th Legislature        2020 Regular Session

     By House Consumer Protection &     Business    (originally   sponsored   by
     Representatives Kirby and Vick)

     READ FIRST TIME 02/07/20.




 1       AN ACT Relating to transportation; adding a new chapter to Title
 2   46 RCW; and providing an effective date.


 3   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


4        NEW SECTION.   Sec. 1.   This act may be known and cited as the
5    peer-to-peer vehicle sharing program act.


 6       NEW SECTION.   Sec. 2.   This chapter is intended to govern the
 7   intersection of peer-to-peer car services and the state-regulated
 8   business of insurance. Nothing in this chapter is construed to extend
 9   beyond insurance or have any implications for other provisions of the
10   code of this state including, but not limited to, those related to
11   motor vehicle regulation, airport regulation, or taxation.


12       NEW SECTION.    Sec. 3.   The definitions in this section apply
13   throughout   this  chapter  unless   the  context   clearly  requires
14   otherwise.
15       (1) "Car sharing delivery period" means the period of time during
16   which a shared vehicle is being delivered to the location of the car
17   sharing start time, if applicable, as documented by the governing car
18   sharing program agreement.


                                       p. 1                           SHB 2773
 1       (2) "Car sharing period" means the period of time that commences
 2   with the car sharing delivery period or, if there is no car sharing
 3   delivery period, that commences with the car sharing start time and
 4   in either case ends at the car sharing termination time.
 5       (3) "Car sharing program agreement" means the terms and
 6   conditions applicable to a shared vehicle owner and a shared vehicle
 7   driver that govern the use of a shared vehicle through a peer-to-peer
 8   car sharing program. "Car sharing program agreement" does not mean
 9   rental car agreement, or similar agreement, as defined in RCW
10   48.115.005.
11       (4) "Car sharing start time" means the time when the shared
12   vehicle becomes subject to the control of the shared vehicle driver
13   at or after the time the reservation of a shared vehicle is scheduled
14   to begin as documented in the records of a peer–to–peer car sharing
15   program.
16       (5) "Car sharing termination time" means the earliest of the
17   following events:
18       (a) The expiration of the agreed upon period of time established
19   for the use of a shared vehicle according to the terms of the car
20   sharing program agreement if the shared vehicle is delivered to the
21   location agreed upon in the car sharing program agreement;
22       (b) When the shared vehicle is returned to a location as
23   alternatively agreed upon by the shared vehicle owner and shared
24   vehicle driver as communicated through a peer-to-peer car sharing
25   program; or
26       (c) When the shared vehicle owner or the shared vehicle owner's
27   authorized designee, takes possession and control of the shared
28   vehicle.
29       (6) "Peer-to-peer car sharing" means the authorized use of a
30   vehicle by an individual other than the vehicle's owner through a
31   peer-to-peer car sharing program. "Peer-to-peer car sharing" does not
32   mean rental car as defined in RCW 46.04.465.
33       (7) "Peer-to-peer car sharing program" means a business platform
34   that connects vehicle owners with drivers to enable the sharing of
35   vehicles for financial consideration. "Peer-to-peer car sharing
36   program" does not mean rental car company as defined in RCW
37   48.115.005.
38       (8) "Shared vehicle" means a vehicle that is available for
39   sharing through a peer-to-peer car sharing program. "Shared vehicle"
40   does not mean rental car as defined in RCW 46.04.465.
                                     p. 2                         SHB 2773
1        (9) "Shared vehicle driver" means an individual who has been
2    authorized to drive the shared vehicle by the shared vehicle owner
3    under a car sharing program agreement.
4        (10) "Shared vehicle owner" means the registered owner, or a
5    person or entity designated by the registered owner, of a vehicle
6    made available for sharing to shared vehicle drivers through a peer-
7    to-peer car sharing program.

 8       NEW SECTION. Sec. 4. (1)(a) A peer-to-peer car sharing program
 9   shall assume liability, except as provided in (b) of this subsection,
10   of a shared vehicle owner for bodily injury or property damage to
11   third parties or uninsured and underinsured motorist or personal
12   injury protection losses during the car sharing period in an amount
13   stated in the peer-to-peer car sharing program agreement, which
14   amount may not be less than those set forth in chapter 46.29 RCW.
15       (b) Notwithstanding the definition of car sharing termination
16   time as provided in section 3 of this act, the assumption of
17   liability under (a) of this subsection does not apply to any shared
18   vehicle owner when:
19       (i) A shared vehicle owner makes an intentional or fraudulent
20   material misrepresentation or omission to the peer-to-peer car
21   sharing program before the car sharing period in which the loss
22   occurred; or
23       (ii) Acting in concert with a shared vehicle driver who fails to
24   return the shared vehicle pursuant to the terms of the car sharing
25   program agreement.
26       (c) Notwithstanding the definition of car sharing termination
27   time as provided in section 3 of this act, the assumption of
28   liability under (a) of this subsection would apply to bodily injury,
29   property damage, uninsured and underinsured motorist, or personal
30   injury protection losses by damaged third parties required by chapter
31   46.29 RCW.
32       (d) A peer-to-peer car sharing program shall ensure that, during
33   each car sharing period, the shared vehicle owner and the shared
34   vehicle driver are insured under a motor vehicle liability insurance
35   policy that provides insurance coverage in amounts no less than the
36   minimum amounts provided in chapter 46.29 RCW, and:
37       (i) Recognizes that the shared vehicle insured under the policy
38   is made available and used through a peer-to-peer car sharing
39   program; or
                                     p. 3                         SHB 2773
 1       (ii) Does not exclude use of a shared vehicle by a shared vehicle
 2   driver.
 3       (e) The insurance described under (d) of this subsection may be
 4   satisfied by motor vehicle liability insurance maintained by:
 5       (i) A shared vehicle owner;
 6       (ii) A shared vehicle driver;
 7       (iii) A peer-to-peer car sharing program; or
 8       (iv) Both a shared vehicle owner, a shared vehicle driver, and a
 9   peer-to-peer car sharing program.
10       (f) The insurance described in (e) of this subsection that is
11   satisfying the insurance requirement of (d) of this subsection shall
12   be primary during each car sharing period.
13       (g) The peer-to-peer car sharing program shall assume primary
14   liability for a claim when it is in whole or in part providing the
15   insurance required under (d) and (e) of this subsection and:
16       (i) A dispute exists as to who was in control of the shared motor
17   vehicle at the time of the loss; and
18       (ii) The peer-to-peer car sharing program does not have
19   available, did not retain, or fails to provide the information
20   required by section 5 of this act.
21       The shared motor vehicle's insurer shall indemnify the car
22   sharing program to the extent of its obligation under, if any, the
23   applicable insurance policy, if it is determined that the shared
24   motor vehicle's owner was in control of the shared motor vehicle at
25   the time of the loss.
26       (h) If insurance maintained by a shared vehicle owner or shared
27   vehicle driver in accordance with (e) of this subsection has lapsed
28   or does not provide the required coverage, insurance maintained by a
29   peer-to-peer car sharing program shall provide the coverage required
30   by (d) of this subsection beginning with the first dollar of a claim
31   and have the duty to defend such claim except under circumstances as
32   provided in (b) of this subsection.
33       (i) Coverage under an automobile insurance policy maintained by
34   the peer-to-peer car sharing program is not dependent on another
35   automobile insurer first denying a claim nor shall another automobile
36   insurance policy be required to first deny a claim.
37       (j) Nothing in this chapter:
38       (i) Limits the liability of the peer-to-peer car sharing program
39   for any act or omission of the peer-to-peer car sharing program


                                     p. 4                         SHB 2773
 1   itself that results in injury to any person as a result of the use of
 2   a shared vehicle through a peer-to-peer car sharing program; or
 3       (ii) Limits the ability of the peer-to-peer car sharing program
 4   to, by contract, seek indemnification from the shared vehicle owner
 5   or the shared vehicle driver for economic loss sustained by the peer-
 6   to-peer car sharing program resulting from a breach of the terms and
 7   conditions of the car sharing program agreement.
 8       (2) At the time when a vehicle owner registers as a shared
 9   vehicle owner on a peer-to-peer car sharing program and prior to the
10   time when the shared vehicle owner makes a shared vehicle available
11   for car sharing on the peer-to-peer car sharing program, the peer-to-
12   peer car sharing program shall notify the shared vehicle owner that,
13   if the shared vehicle has a lien against it, the use of the shared
14   vehicle through a peer-to-peer car sharing program, including use
15   without physical damage coverage, may violate the terms of the
16   contract with the lienholder.
17       (3)(a) An authorized insurer that writes motor vehicle liability
18   insurance in the state may exclude any and all coverage and the duty
19   to defend or indemnify for any claim afforded under a shared vehicle
20   owner's motor vehicle liability insurance policy including, but not
21   limited to:
22       (i) Liability coverage for bodily injury and property damage;
23       (ii) Personal injury protection coverage;
24       (iii) Uninsured and underinsured motorist coverage;
25       (iv) Medical payments coverage;
26       (v) Comprehensive physical damage coverage; and
27       (vi) Collision physical damage coverage.
28       (b) Nothing in this chapter invalidates or limits an exclusion
29   contained in a motor vehicle liability insurance policy, including
30   any insurance policy in use or approved for use that excludes
31   coverage for motor vehicles made available for rent, sharing, or
32   hire, or for any business use.
33       (4) A peer-to-peer car sharing program shall collect and verify
34   records pertaining to the use of a vehicle including, but not limited
35   to, times used, fees paid by the shared vehicle driver, and revenues
36   received by the shared vehicle owner and provide that information
37   upon request to the shared vehicle owner, the shared vehicle owner's
38   insurer, or the shared vehicle driver's insurer to facilitate a claim
39   coverage investigation. The peer-to-peer car sharing program shall


                                     p. 5                         SHB 2773
 1   retain the records for a time period not less than the applicable
 2   personal injury statute of limitations.
 3       (5) A peer-to-peer car sharing program and a shared vehicle owner
 4   shall be exempt from vicarious liability in accordance with 49 U.S.C.
 5   Sec. 30106 and under any state or local law that imposes liability
 6   solely based on vehicle ownership.
 7       (6) A motor vehicle insurer that defends or indemnifies a claim
 8   against a shared vehicle that is excluded under the terms of its
 9   policy shall have the right to seek contribution against the motor
10   vehicle insurer of the peer-to-peer car sharing program if the claim
11   is:
12       (a) Made against the shared vehicle owner or the shared vehicle
13   driver for loss or injury that occurs during the car sharing period;
14   and
15       (b) Excluded under the terms of its policy.
16       (7)(a)   Notwithstanding  any   other  law,   statute,  rule,  or
17   regulation to the contrary, a peer-to-peer car sharing program shall
18   have an insurable interest in a shared vehicle during the car sharing
19   period.
20       (b) Nothing in this section creates liability on a peer-to-peer
21   car sharing program to maintain the coverage mandated by subsection
22   (1) of this section.
23       (c) A peer–to–peer car sharing program may own and maintain as
24   the named insured one or more policies of motor vehicle liability
25   insurance that provides coverage for:
26       (i) Liabilities assumed by the peer–to–peer car sharing program
27   under a peer–to–peer car sharing program agreement;
28       (ii) Any liability of the shared vehicle owner; or
29       (iii) Damage or loss to the shared motor vehicle, or any
30   liability of the shared vehicle driver.


31       NEW SECTION.   Sec. 5.    (1) Each car sharing program agreement
32   made in the state shall disclose to the shared vehicle owner and the
33   shared vehicle driver:
34       (a) Any right of the peer-to-peer car sharing program to seek
35   indemnification from the shared vehicle owner or the shared vehicle
36   driver for economic loss sustained by the peer-to-peer car sharing
37   program resulting from a breach of the terms and conditions of the
38   car sharing program agreement;


                                     p. 6                         SHB 2773
 1       (b) That a motor vehicle liability insurance policy issued to the
 2   shared vehicle owner for the shared vehicle or to the shared vehicle
 3   driver does not provide a defense or indemnification for any claim
 4   asserted by the peer-to-peer car sharing program;
 5       (c) That the peer-to-peer car sharing program's insurance
 6   coverage on the shared vehicle owner and the shared vehicle driver is
 7   in effect only during each car sharing period and that, for any use
 8   of the shared vehicle by the shared vehicle driver after the car
 9   sharing termination time, the shared vehicle driver and the shared
10   vehicle owner may not have insurance coverage;
11       (d) The daily rate, fees, and if applicable, any insurance or
12   protection package costs that are charged to the shared vehicle owner
13   or the shared vehicle driver;
14       (e) That the shared vehicle owner's motor vehicle liability
15   insurance may not provide coverage for a shared vehicle;
16       (f) An emergency telephone number to personnel capable of
17   fielding roadside assistance and other customer service inquiries;
18   and
19       (g) If there are conditions under which a shared vehicle driver
20   must maintain a personal automobile insurance policy with certain
21   applicable coverage limits on a primary basis in order to book a
22   shared motor vehicle.
23       (2)(a) A peer-to-peer car sharing program may not enter into a
24   peer-to-peer car sharing program agreement with a driver unless the
25   driver who will operate the shared vehicle:
26       (i) Holds a driver's license issued in this state authorizing the
27   driver to operate vehicles of the class of the shared vehicle;
28       (ii) Is a nonresident who:
29       (A) Has a driver's license issued by the state or country of the
30   driver's residence that authorizes the driver in that state or
31   country to drive vehicles of the class of the shared vehicle; and
32       (B) Is at least the same age as that required of a resident to
33   drive; or
34       (iii) Otherwise is specifically authorized to drive vehicles of
35   the class of the shared vehicle.
36       (b) A peer-to-peer car sharing program shall keep a record of:
37       (i) The name and address of the shared vehicle driver;
38       (ii) The number of the driver's license of the shared vehicle
39   driver and each other person, if any, who will operate the shared
40   vehicle; and
                                     p. 7                         SHB 2773
 1       (iii) The place of issuance of the driver's license.
 2       (3) A peer-to-peer car sharing program shall have sole
 3   responsibility for any equipment, such as a global positioning system
 4   or other special equipment that is put in or on the vehicle to
 5   monitor or facilitate the car sharing transaction, and shall agree to
 6   indemnify and hold harmless the vehicle owner for any damage to or
 7   theft of such equipment during the sharing period not caused by the
 8   vehicle owner. The peer-to-peer car sharing program has the right to
 9   seek indemnity from the shared vehicle driver for any loss or damage
10   to such equipment that occurs during the sharing period.
11       (4)(a) At the time when a vehicle owner registers as a shared
12   vehicle owner on a peer-to-peer car sharing program and prior to the
13   time when the shared vehicle owner makes a shared vehicle available
14   for car sharing on the peer-to-peer car sharing program, the peer-to-
15   peer car sharing program shall:
16       (i) Verify that the shared vehicle does not have any safety
17   recalls on the vehicle for which the repairs have not been made; and
18       (ii) Notify the shared vehicle owner of the requirements under
19   (b) of this subsection.
20       (b) If the shared vehicle owner has received an actual notice of
21   a safety recall on the vehicle, a shared vehicle owner may not make a
22   vehicle available as a shared vehicle on a peer-to-peer car sharing
23   program until the safety recall repair has been made.
24       (i) If a shared vehicle owner receives an actual notice of a
25   safety recall on a shared vehicle while the shared vehicle is made
26   available on the peer-to-peer car sharing program, the shared vehicle
27   owner shall remove the shared vehicle as available on the peer-to-
28   peer car sharing program, as soon as practicably possible after
29   receiving the notice of the safety recall and until the safety recall
30   repair has been made.
31       (ii) If a shared vehicle owner receives an actual notice of a
32   safety recall while the shared vehicle is being used in the
33   possession of a shared vehicle driver, as soon as practicably
34   possible after receiving the notice of the safety recall, the shared
35   vehicle owner shall notify the peer-to-peer car sharing program about
36   the safety recall so that the shared vehicle owner may address the
37   safety recall repair.


38       NEW SECTION.     Sec. 6.    Sections 1   through   5   of   this   act
39   constitute a new chapter in Title 46 RCW.
                                     p. 8                            SHB 2773
1   NEW SECTION.   Sec. 7.   This act takes effect January 1, 2021.

                               --- END ---




                                  p. 9                         SHB 2773


File and source

File

2020-02-25_a26739_bill_2773-s.pdf

Size

88,810 bytes

SHA-256

6a8fc080788f576498e0816c092c3484e81f6dde8773f03e943690f920a82489

Our copy

2020-02-25_a26739_bill_2773-s.pdf

Original

No public link identified.