Washington Senate Bill Report SHB 1389 (Feb. 21, 2022)
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2022-02-22
- Case
- 2022 02 22 A29904 D243816 Bill Report 1389 S Sba Bfst 22
Summary
A Senate Bill Report on SHB 1389, an act relating to transportation, as of February 21, 2022, prepared by staff of the Senate Committee on Business, Financial Services & Trade. The bill passed the House on 2/12/22 by a vote of 96-2 and was sponsored by the House Committee on Consumer Protection & Business. The report states that the bill replaces Washington's personal vehicle sharing program requirements with a peer-to-peer car sharing programs chapter based on the NCOIL model act, which 19 states had adopted as of February 2022. It describes the bill's insurance, liability and indemnification rules, required disclosures, record-keeping for three years, safety recall and driver license conditions. The report lists no appropriation, no fiscal note requested, and an effective date of January 1, 2023.
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
SENATE BILL REPORT
SHB 1389
As of February 21, 2022
Title: An act relating to transportation.
Brief Description: Concerning transportation.
Sponsors: House Committee on Consumer Protection & Business (originally sponsored by
Representatives Corry and Eslick).
Brief History: Passed House: 2/12/22, 96-2.
Committee Activity: Transportation: 2/17/22 [w/oRec-BFST].
Business, Financial Services & Trade: 2/22/22.
Brief Summary of Bill
• Replaces vehicle sharing program requirements with a new peer-to-peer
car sharing programs chapter based on model language used in other
states.
• Outlines record keeping and disclosure requirements for the peer-to-peer
car sharing program and vehicle owner.
• Reduces the the required limits for liability coverage from three times
the minimum statutorily required limits to the minimum statutorily
required limit.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Staff: Clinton McCarthy (786-7319)
Background: Insurance. Every person in this state who operates a private passenger motor
vehicle must be insured under an insurance liability policy, a liability bond, a certificate of
deposit, or be self-insured. The minimum amounts of liability coverage required by the
financial responsibility statutes are:
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- SHB 1389
• $10,000 in coverage for damage to another's property;
• $25,000 in coverage for injuries to any one other person; and
• $50,000 in aggregate coverage for injuries to all other persons involved.
Automobile insurers must offer personal injury protection coverage and underinsured
automobile coverage. Insurers also may offer any type of coverage in any amount that is
filed with and approved by the Insurance Commissioner (Commissioner). Automobile
insurance rates and forms are filed with the Commissioner and must be approved by the
Commissioner prior to use by an insurer. If the Commissioner determines that filed rates
are not excessive, inadequate, or unfairly discriminatory, then the Commissioner must
approve them.
Personal Vehicle Sharing. Since 2012 Washington has regulated car sharing businesses. A
personal vehicle sharing program is a business that facilitates sharing private passenger
motor vehicles for noncommercial use by individuals within this state. Personal vehicle
sharing program regulations include insurance requirements, legal requirements, liability,
disclosures, and record-keeping.
When a vehicle is in a personal vehicle sharing program, liability may be transferred from
an automobile insurer to the personal vehicle sharing program. For each vehicle used in
personal vehicle sharing, a personal vehicle sharing program must provide insurance
coverage for the vehicle and all persons who, with the consent of the program, use the
motor vehicle. A personal vehicle sharing program may not provide collision or
comprehensive coverage that is less than the actual cash value of the vehicle. The owner
must be given the option to buy underinsured motorist coverage and personal injury
protection coverage.
National Council of Insurance Legislators. The National Council of Insurance Legislators
(NCOIL) is a legislative organization comprised principally of legislators serving on state
insurance and financial institutions committees around the country. NCOIL writes model
laws in insurance. In February 2020, NCOIL adopted its peer-to-peer car sharing program
model act. As of February 2022, 19 states have adopted the model legislation.
Summary of Bill: Peer-to-Peer Car Sharing Program. Requirements for peer-to-peer car
sharing programs are established, including insurance, disclosures, and record-keeping,
replacing requirements for personal vehicle sharing programs, which are repealed.
Definitions. A peer-to-peer car sharing program (program) is a business platform that
connects vehicle owners with drivers to enable the sharing of vehicles for financial
consideration.
A car sharing period (sharing period) is the period of time during which a shared vehicle is
being delivered to a driver or that commences with a vehicle start time and, in either case,
ends at a car sharing termination time.
Senate Bill Report -2- SHB 1389
A car sharing program agreement (program agreement) is the terms and conditions
applicable to a shared vehicle owner and a shared vehicle driver during the sharing period.
A shared vehicle (vehicle) is a vehicle available through a program.
Insurance. A program must ensure that, during each sharing period, the shared vehicle
owner and the shared vehicle driver are insured under a motor vehicle liability insurance
policy that provides insurance coverage in amounts not less than the required state
minimum amounts. The insurance may be satisfied by motor vehicle liability insurance
maintained by one, or any combination, of a shared vehicle owner, a shared vehicle driver,
or a peer-to-peer vehicle sharing program, and such satisfying insurance must be primary
during each car sharing period.
The program is not liable when an owner makes a material, intentional, or fraudulent
misrepresentation, or material, intentional, or fraudulent omission, to the program before the
sharing period in which the loss occurred or when an owner acts in concert with the driver
who fails to return the vehicle pursuant to the terms of the program agreement.
The program must assume primary liability for a claim when it is in whole or in part
providing the insurance required, if a dispute exists regarding who was in control of the
vehicle at the time of the loss and the program does not have required records maintained.
If insurance maintained by the owner or driver has lapsed or does not provide the required
coverage, the program's insurance must provide the coverage required beginning with the
first dollar of a claim and shall have the duty to defend such claim.
The program will be indemnified by the owner's personal policy of motor vehicle liability
insurance if it is determined that the owner was in control of the vehicle at the time of the
loss. The program is not limited in seeking indemnification from an owner or driver for
economic loss sustained by the program resulting from a breach of the terms and conditions
of a program agreement.
An insurer that writes motor vehicle liability insurance in this state may exclude coverage
and the duty to defend or indemnify for any claim afforded under an owner's motor vehicle
liability insurance policy.
The program may own and maintain as the named insured one or more insurance policies
that provide coverage for liabilities of the program, vehicle owner, or driver and any
damages or losses to a vehicle.
Disclosure Requirements. The program's agreement must include disclosures related to:
• insurance, including liability and indemnification;
• financial responsibility;
• rates and fees;
Senate Bill Report -3- SHB 1389
• emergency contact information for roadside assistance and inquiries; and
• notice that insurance may end when the sharing period has ended.
Notices and Record-Keeping. Prior to making a vehicle available through the program, the
program must notify the owner that participation may violate the terms of the owner's
contract with a lienholder, if any.
The program is required to keep records related to a vehicle, owner, and driver for three
years. The program must provide records to the owner or owner's insurer to facilitate any
claims processing.
Additional Conditions. The program is responsible for any equipment, such as a global
positioning system or other special equipment, that is put in or on a vehicle to monitor or
facilitate sharing and must agree to indemnify and hold harmless an owner for any damage
to or theft of such system or equipment during the sharing period not caused by an owner.
The program has the right to seek indemnity from a driver for any loss or damage to such
system or equipment that occurs during the sharing period.
If the shared vehicle owner has received an actual notice of a safety recall on the vehicle, a
shared vehicle owner may not make a vehicle available in a program until the safety recall
repair has been made.
The program may not enter into an agreement with a driver unless the driver holds a driver
license authorizing the driver to operate vehicles of the class of the vehicle the driver will be
using through the program.
Appropriation: None.
Fiscal Note: Not requested.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: The bill takes effect on January 1, 2023.
Senate Bill Report -4- SHB 1389
File and source
- File
- 2022-02-22_a29904_d243816_bill-report-1389-s-sba-bfst-22.pdf
- Size
- 11,674 bytes
- SHA-256
- 57c271ea4c71a59853b5cee20acf5e53160ae30541000ae8ea15c69d76d7986b
- Original
- app.leg.wa.gov