Bill Text: AZ HB2559 | 2019 | Fifty-fourth Legislature 1st Regular | Engrossed
Bill Title: Peer-to-peer car sharing
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2019-05-22 - Senate minority caucus: Do pass [HB2559 Detail]
Download: Arizona-2019-HB2559-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
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HOUSE BILL 2559 |
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AN ACT
amending section 28‑142, Arizona Revised Statutes; amending title 28, Arizona Revised Statutes, by adding chapter 31; amending sections 42‑5062 and 42‑5071, Arizona Revised Statutes; relating to transportation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 28-142, Arizona Revised Statutes, is amended to read:
28-142. Livery vehicle, taxi, transportation network company vehicle, transportation network company, peer‑to‑peer car sharing company, shared vehicle and limousine regulation; state preemption; definition
A. The regulation of transportation network companies and peer‑to‑peer car sharing companies and the regulation and use of livery vehicles, taxis, transportation network company vehicles, transportation network companies shared vehicles and limousines are of statewide concern. Livery vehicles, taxis, transportation network company vehicles, shared vehicles and limousines and their use and transportation network companies and peer-to-peer car sharing companies that are regulated pursuant to this title are not subject to further regulation by a county, city, town or other political subdivision of this state, except that:
1. A public airport operator that operates a public airport pursuant to section 28‑8421, 28‑8423 or 28‑8424 or a public body operating a public airport may establish the number of livery vehicles, taxis, transportation network company vehicles, transportation network companies, peer‑to‑peer car sharing companies, shared vehicles or limousines that may conduct business at a public airport or may set additional or more restrictive requirements for the conduct of that business at a public airport.
2. A city or town may impose a tax on peer‑to‑peer car sharing companies and shared vehicles.
B. For the purposes of this section, "Shared vehicle" has the same meaning prescribed in section 28‑9601.
Sec. 2. Title 28, Arizona Revised Statutes, is amended by adding chapter 31, to read:
CHAPTER 31
PEER-TO-PEER CAR SHARING
ARTICLE 1. GENERAL PROVISIONS
28-9601. Definitions
In this chapter, unless the context otherwise requires:
1. "Car sharing delivery period" means the period of time during which a shared vehicle is being delivered to the location of the car sharing start time as documented by the governing car sharing program agreement.
2. "Car Sharing Period" means the period of time that begins with the car sharing delivery period or the car sharing start time if there is no car sharing delivery period and ends at the car sharing termination time.
3. "Car Sharing Program Agreement":
(a) means the terms and conditions that apply to a shared vehicle owner and a shared vehicle driver and that govern the use of a shared vehicle through a peer-to-peer car sharing program.
(b) Does not include a rental agreement as defined in section 20‑331.
4. "Car Sharing Start Time" means the time when a shared vehicle becomes subject to the control of the shared vehicle driver at or after the time that the reservation of the shared vehicle is scheduled to begin as documented in the records of a peer–to–peer car sharing program.
5. "Car Sharing Termination Time" means The time when a shared vehicle is returned to the location designated by a shared vehicle owner through a peer-to-peer car sharing program and The earliest of the following:
(a) The agreed period of time established for the use of a shared vehicle in the governing car sharing program agreement expires.
(b) The intent to terminate the use of the shared vehicle is verifiably communicated by the shared vehicle driver to the shared vehicle owner.
(c) The shared vehicle owner or the shared vehicle owner's authorized designee takes possession and control of the shared vehicle.
6. "Peer-to-Peer Car Sharing":
(a) means the authorized use of a shared vehicle by an individual other than the shared vehicle owner through a peer-to-peer car sharing program.
(b) does not include a rental vehicle or vehicle as defined in section 20‑331.
7. "Peer-to-Peer Car Sharing Program":
(a) means a business platform that connects vehicle owners with drivers to enable the sharing of vehicles for financial consideration.
(b) Does not mean a rental company as defined in section 20‑331.
8. "Shared vehicle":
(a) means a vehicle that is all of the following:
(i) Available for sharing through a peer‑to‑peer car sharing program.
(ii) Used nonexclusively for peer‑to‑peer car sharing activity pursuant to a peer‑to‑peer car sharing program agreement.
(iii) Used by the vehicle's owner for personal use outside of peer‑to‑peer car sharing.
(b) Does not include a rental vehicle or vehicle as defined in section 20‑331.
9. "Shared Vehicle Driver" means an individual who is authorized to drive a shared vehicle under a car sharing program agreement.
10. "Shared Vehicle Owner" means the registered owner of a shared vehicle that is made available for sharing through a peer-to-peer car sharing program.
28-9602. Insurance requirements; liability; indemnification
A. Except as otherwise provided in this subsection, a peer‑to‑peer car sharing program shall assume liability of a shared vehicle owner for bodily injury or property damage to a third party or uninsured and underinsured motorist or personal injury protection losses during the car sharing period in an amount that is stated in the car sharing program agreement and that is not less than the minimum amount of coverage required by section 28‑4009. This subsection does not apply if the shared vehicle owner makes an intentional or fraudulent material misrepresentation to the peer‑to‑peer car sharing program before the car sharing period in which the loss occurs.
B. A peer-to-peer car sharing program shall ensure that during each car sharing period the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy that:
1. Recognizes that the vehicle insured under the policy is made available and used through a peer-to-peer car sharing program.
2. Provides insurance coverage in an amount not less than the minimum amount of coverage required by section 28‑4009.
C. The insurance required by this section may be satisfied by motor vehicle liability insurance that is maintained by any of the following or a combination of all of the following:
1. A shared vehicle owner.
2. A shared vehicle driver.
3. A peer-to-peer car sharing program.
D. The insurance required by this section is primary during each car sharing period.
E. If insurance is maintained by a shared vehicle owner or shared vehicle driver pursuant to subsection C of this section and has lapsed or does not provide the required coverage:
1. Insurance that is maintained by a peer‑to‑peer car sharing program shall provide the coverage required by subsection B of this section beginning with the first dollar of a claim.
2. The peer‑to‑peer car sharing program shall defend a claim.
F. Coverage under a motor vehicle liability insurance policy 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.
G. This chapter does not limit either of the following:
1. The liability of the peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program that results in injury to any person as a result of the use of a shared vehicle.
2. The ability of the peer-to-peer car sharing program to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement.
28-9603. Notice to owner of vehicle with lien
A. When a person becomes a shared vehicle owner on a peer-to-peer car sharing program, the peer-to-peer car sharing program shall notify the shared vehicle owner that if the shared vehicle has a lien, using the shared vehicle through a peer-to-peer car sharing program, including using the shared vehicle without physical damage coverage, may violate the terms of the contract with the lienholder.
B. The peer‑to‑peer car sharing program shall provide the notice prescribed in subsection A of this section before the shared vehicle owner makes a shared vehicle available for peer‑to‑peer car sharing on the peer‑to‑peer car sharing program.
28-9604. Authorized insurer exclusions
An authorized insurer that writes motor vehicle liability insurance in this State may deny coverage and is not required to defend or indemnify any claim afforded under a shared vehicle owner's personal motor vehicle liability insurance policy. this chapter does not invalidate or limit an exclusion contained in a motor vehicle liability insurance policy, including an insurance policy in use or approved for use that excludes coverage for motor vehicles made available for rent, sharing or hire or for any business use.
28-9605. Denial or cancellation of insurance for shared vehicles prohibited; exception
A. Except as provided in subsection b of this section, a motor vehicle insurer may not cancel, void or rescind a policy of personal private passenger motor vehicle liability insurance of a shared vehicle owner solely on the basis that the vehicle covered under the policy has been made available for sharing through a peer-to-peer car sharing program.
b. A motor vehicle insurer may cancel, void, rescind or refuse to renew a policy of personal private passenger motor vehicle liability insurance covering a shared vehicle if the applicant or policyholder of the policy of personal private passenger motor vehicle liability insurance fails to provide complete and accurate information about the use of the shared vehicle through the peer-to-peer car sharing program as requested by the motor vehicle insurer during the application or renewal process of the personal private passenger motor vehicle liability insurance policy.
C. A motor vehicle insurer may limit the number of vehicles that the motor vehicle insurer will insure on a single policy if the vehicles are made available for sharing through a peer‑to‑peer car sharing program.
28-9606. Shared vehicle records; retention
A peer-to-peer car sharing program shall collect and verify records relating to the use of a shared vehicle, including times used, fees paid by the shared vehicle driver and monies received by the shared vehicle owner, and provide that information on request to the shared vehicle owner, the shared vehicle owner's insurer or the shared vehicle driver's insurer to facilitate a claim coverage investigation. The peer-to-peer car sharing program shall retain the records that are required by this section for at least two years.
28-9607. Vicarious liability exemption
A peer-to-peer car sharing program and a shared vehicle owner are exempt from vicarious liability pursuant to 49 United States Code section 30106 and under any state or local law that imposes liability solely based on vehicle ownership.
28-9608. Insurance claims; shared vehicles; indemnification
A motor vehicle insurer that defends or indemnifies a claim against a shared vehicle that is excluded under the terms of the policy may seek contribution or indemnification from the motor vehicle insurer of the peer-to-peer car sharing program if the claim is both:
1. made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period.
2. excluded under the terms of the policy.
28-9609. Insurable interests
A. Notwithstanding any other law, a peer-to-peer car sharing program has an insurable interest in a shared vehicle during the car sharing period.
b. This section does not require a Peer-to-Peer Car Sharing Program to maintain the insurance coverage mandated by section 28‑9602.
28-9610. Car sharing program agreement disclosures
Each car sharing program agreement made in this State shall disclose to the shared vehicle owner and the shared vehicle driver:
1. Any right of the peer-to-peer car sharing program to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement.
2. That a motor vehicle liability insurance policy issued to the shared vehicle owner for the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification for any claim asserted by the peer-to-peer car sharing program.
3. That the peer-to-peer car sharing program's insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each car sharing period and that, for any use of the shared vehicle by the shared vehicle driver after the car sharing termination time, the shared vehicle driver and the shared vehicle owner might not have insurance coverage.
4. The daily rate, fees and insurance, if applicable, or protection package costs that are charged to the shared vehicle owner or the shared vehicle driver.
5. That the shared vehicle owner's motor vehicle liability insurance may not provide coverage for a shared vehicle.
6. An emergency telephone number for roadside assistance and other customer service inquiries.
28-9611. Car sharing program agreement; licensed driver; data retention
A. A peer‑to‑peer car sharing program may not enter into a car sharing program agreement with a driver unless the driver who will operate the shared vehicle:
1. Holds a driver license issued by the department that authorizes the driver to operate the class of the shared vehicle.
2. Is a nonresident who both:
(a) Has a driver license issued by the state or country of the driver's residence that authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle.
(b) Is at least the same age as that required of a resident to drive.
3. Otherwise is specifically authorized by the department to drive vehicles of the class of the shared vehicle.
B. A peer-to-peer car sharing program shall keep a record of:
1. The name and address of each shared vehicle driver.
2. The driver license number of the shared vehicle driver.
3. The date and place of issuance of the shared vehicle driver's driver license.
28-9612. Responsibility for equipment
A peer-to-peer car sharing program has sole responsibility for any equipment, including a global positioning system or other special equipment, that is put in or on a shared vehicle to monitor or facilitate the car sharing transaction and shall agree to indemnify and hold harmless the shared vehicle owner for any damage to or theft of the equipment during the car sharing period if the shared vehicle owner does not cause the damage or theft. The peer-to-peer car sharing program may seek indemnity from the shared vehicle driver for any loss or damage to the equipment that occurs during the sharing period.
28-9613. Safety recalls
A. When a vehicle owner becomes a shared vehicle owner on a peer‑to‑peer car sharing program and before the shared vehicle owner makes a shared vehicle available for peer‑to‑peer car sharing on the peer‑to‑peer car sharing program, the peer-to-peer car sharing program shall verify that the shared vehicle does not have any safety recalls on the shared vehicle for which the repairs are not made.
B. If a shared vehicle owner has received an actual notice of a safety recall on the shared vehicle, the shared vehicle owner may not make the shared vehicle available as a shared vehicle until the safety recall repair is made.
C. If a shared vehicle owner receives a notice of a safety recall on the shared vehicle while the shared vehicle is made available on the peer‑to‑peer car sharing program, the shared vehicle owner shall remove the shared vehicle from availability on the peer-to-peer car sharing program as soon as practicable after receiving the notice of the safety recall. The shared vehicle owner may not make the shared vehicle available on the peer‑to‑peer car sharing program until the safety recall repair is made.
D. If a shared vehicle owner receives a notice of a safety recall while the shared vehicle is in the possession of a shared vehicle driver, as soon as practicable after receiving the notice of the safety recall, the shared vehicle owner shall notify the peer-to-peer car sharing program about the safety recall so that the shared vehicle owner may make the safety recall repair.
28-9614. Transaction privilege tax prohibited
A peer‑to‑peer car sharing company, a shared vehicle owner and a shared vehicle driver are exempt from transaction privilege tax pursuant to sections 42‑5062 and 42‑5071 on income derived from transactions in which a peer‑to‑peer car sharing company or a shared vehicle driver are providing peer‑to‑peer car sharing services.
Sec. 3. Section 42-5062, Arizona Revised Statutes, is amended to read:
42-5062. Transporting classification
A. The transporting classification is comprised of the business of transporting for hire persons, freight or property by motor vehicle, railroads or aircraft from one point to another point in this state. The transporting classification does not include:
1. Transporting for hire persons, freight or property by:
(a) Motor carriers subject to a fee prescribed in title 28, chapter 16, article 4.
(b) Light motor vehicles subject to a fee under title 28, chapter 15, article 4.
(c) Transportation network companies subject to a fee prescribed pursuant to section 28‑9552.
(d) Transportation network company drivers on transactions involving transportation network services as defined in section 28‑9551.
(e) Vehicle for hire companies that are issued permits pursuant to section 28‑9503.
(f) Vehicle for hire drivers operating under a company permit issued pursuant to section 28‑9503 on transactions involving vehicle for hire services.
(g) Peer‑to‑peer car sharing companies or shared vehicle drivers, as defined in section 28‑9601, on transactions involving peer‑to‑peer car sharing as defined in section 28‑9601.
2. The business of transporting for hire persons traveling in air commerce by aircraft if taxation of the business is preempted by federal law.
3. Ambulances or ambulance services provided under title 48 or certified pursuant to title 36, chapter 21.1 or provided by a city or town in a county with a population of less than one hundred fifty thousand persons as determined in the most recent United States decennial census.
4. Public transportation program services for the dial-a-ride programs and special needs transportation services.
5. Transporting freight or property for hire by a railroad operating exclusively in this state if the transportation comprises a portion of a single shipment of freight or property, involving more than one railroad, either from a point in this state to a point outside this state or from a point outside this state to a point in this state. For the purposes of this paragraph, "a single shipment" means the transportation that begins at the point at which one of the railroads first takes possession of the freight or property and continues until the point at which one of the railroads relinquishes possession of the freight or property to a party other than one of the railroads.
6. Arranging transportation as a convenience or service to a person's customers if that person is not otherwise engaged in the business of transporting persons, freight or property for hire. This exception does not apply to businesses that dispatch vehicles pursuant to customer orders and send the billings and receive the payments associated with that activity, including when the transportation is performed by third‑party independent contractors. For the purposes of this paragraph, "arranging" includes billing for or collecting transportation charges from a person's customers on behalf of the persons providing the transportation.
B. The tax base for the transporting classification is the gross proceeds of sales or gross income derived from the business, except that the following shall be deducted from the tax base:
1. The gross proceeds of sales or gross income derived from transporting for hire persons, freight or property by a railroad pursuant to a contract with another railroad that is also considered to be engaged in the businesses of transporting persons, freight or property for hire if the other railroad is liable for the tax on gross proceeds of sales or gross income attributable to the transportation.
2. The gross proceeds of sales or gross income derived from business activity that is properly included in any other business classification under this article and that is taxable to the person engaged in that classification, but the gross proceeds of sales or gross income to be deducted shall not exceed the consideration paid to the person conducting the activity.
3. The gross proceeds of sales or gross income derived from a business activity that is arranged by the person who is subject to tax under this section and that is not taxable to the person conducting the activity due to an exclusion, exemption or deduction under this section or section 42‑5073, but the gross proceeds of sales or gross income to be deducted shall not exceed the consideration paid to the person conducting the activity.
4. The gross proceeds of sales or gross income derived from business activity that is arranged by a person who is subject to tax under this section and that is taxable to another person under this section who conducts the activity, but the gross proceeds of sales or gross income to be deducted shall not exceed the consideration paid to the person conducting the activity.
5. The gross proceeds of sales or gross income derived from transporting fertilizer by a railroad from a point in this state to another point in this state.
Sec. 4. Section 42-5071, Arizona Revised Statutes, is amended to read:
42-5071. Personal property rental classification; definitions
A. The personal property rental classification is comprised of the business of leasing or renting tangible personal property for a consideration. The tax does not apply to:
1. Leasing or renting films, tapes or slides used by theaters or movies, which are engaged in business under the amusement classification, or used by television stations or radio stations.
2. Activities engaged in by the Arizona exposition and state fair board or county fair commissions in connection with events sponsored by such entities.
3. Leasing or renting tangible personal property by a parent corporation to a subsidiary corporation or by a subsidiary corporation to another subsidiary of the same parent corporation if taxes were paid under this chapter on the gross proceeds or gross income accruing from the initial sale of the tangible personal property. For the purposes of this paragraph, "subsidiary" means a corporation of which at least eighty percent of the voting shares are owned by the parent corporation.
4. Operating coin‑operated washing, drying and dry cleaning machines or coin‑operated car washing machines at establishments for the use of such machines.
5. Leasing or renting tangible personal property for incorporation into or comprising any part of a qualified environmental technology facility as described in section 41‑1514.02. This paragraph shall apply for ten full consecutive calendar or fiscal years following the initial lease or rental by each qualified environmental technology manufacturer, producer or processor.
6. Leasing or renting aircraft, flight simulators or similar training equipment to students or staff by nonprofit, accredited educational institutions that offer associate or baccalaureate degrees in aviation or aerospace related fields.
7. Leasing or renting photographs, transparencies or other creative works used by this state on internet websites, in magazines or in other publications that encourage tourism.
8. Leasing or renting certified ignition interlock devices installed pursuant to the requirements prescribed by section 28‑1461. For the purposes of this paragraph, "certified ignition interlock device" has the same meaning prescribed in section 28‑1301.
9. The leasing or renting of space to make attachments to utility poles, as follows:
(a) By a person that is engaged in business under section 42‑5063 or 42‑5064 or that is a cable operator.
(b) To a person that is engaged in business under section 42‑5063 or 42‑5064 or that is a cable operator.
10. Leasing or renting billboards that are designed, intended or used to advertise or inform and that are visible from any street, road or other highway.
11. Peer‑to‑peer car sharing activities pursuant to title 28, chapter 31.
B. The tax base for the personal property rental classification is the gross proceeds of sales or gross income derived from the business, but the gross proceeds of sales or gross income derived from the following shall be deducted from the tax base:
1. Reimbursements by the lessee to the lessor of a motor vehicle for payments by the lessor of the applicable fees and taxes imposed by sections 28‑2003, 28‑2352, 28‑2402, 28‑2481 and 28‑5801, title 28, chapter 15, article 2 and article IX, section 11, Constitution of Arizona, to the extent such amounts are separately identified as such fees and taxes and are billed to the lessee.
2. Leases or rentals of tangible personal property that, if it had been purchased instead of leased or rented by the lessee, would have been exempt under:
(a) Section 42‑5061, subsection A, paragraph 8, 9, 12, 13, 25, 29, 49 or 53.
(b) Section 42‑5061, subsection B, except that a lease or rental of new machinery or equipment is not exempt pursuant to section 42‑5061, subsection B, paragraph 13 if the lease is for less than two years.
(c) Section 42‑5061, subsection I, paragraph 1.
(d) Section 42‑5061, subsection M.
3. Motor vehicle fuel and use fuel that are subject to a tax imposed under title 28, chapter 16, article 1, sales of use fuel to a holder of a valid single trip use fuel tax permit issued under section 28‑5739 and sales of aviation fuel that are subject to the tax imposed under section 28‑8344.
4. Leasing or renting a motor vehicle subject to and on which the fee has been paid under title 28, chapter 16, article 4.
5. Amounts received by a motor vehicle dealer for the first month of a lease payment if the lease and the lease payment for the first month of the lease are transferred to a third‑party leasing company.
C. Sales of tangible personal property to be leased or rented to a person engaged in a business classified under the personal property rental classification are deemed to be resale sales.
D. In computing the tax base, the gross proceeds of sales or gross income from the lease or rental of a motor vehicle does not include any amount attributable to the car rental surcharge under section 5‑839, 28‑5810 or 48‑4234.
E. Until December 31, 1988, leasing or renting animals for recreational purposes is exempt from the tax imposed by this section. Beginning January 1, 1989, the gross proceeds or gross income from leasing or renting animals for recreational purposes is subject to taxation under this section. Tax liabilities, penalties and interest paid for taxable periods before January 1, 1989 shall not be refunded unless the taxpayer requesting the refund provides proof satisfactory to the department that the monies paid as taxes will be returned to the customer.
F. For the purposes of this section:
1. "Cable operator" has the same meaning prescribed by section 9‑505.
2. "Utility pole" means any wooden, metal or other pole used for utility purposes and the pole's appurtenances that are attached or authorized for attachment by the person controlling the pole.
