Bill Text: TX HB113 | 2021-2022 | 87th Legislature | Enrolled

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Bill Title: Relating to peer-to-peer car sharing programs.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2021-06-09 - Effective on 9/1/21 [HB113 Detail]

Download: Texas-2021-HB113-Enrolled.html

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H.B. No. 113

AN ACT
relating to peer-to-peer car sharing programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 113 to read as follows:
CHAPTER 113. PEER-TO-PEER CAR SHARING PROGRAMS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 113.0001. DEFINITIONS. In this chapter:
(1) "Agreement" means the terms and conditions
applicable to an owner and driver that govern the use of a shared
vehicle through a peer-to-peer car sharing program. The term does
not include a rental agreement as defined by Section 91.001.
(2) "Car sharing period" means the period of time
beginning with the delivery period or, if there is no delivery
period, the start time and ending at the termination time.
(3) "Delivery period" means the period of time during
which a shared vehicle is being delivered to the location of the
start time, if applicable, under the agreement.
(4) "Driver" means an individual who has been
authorized to drive the shared vehicle by the vehicle's owner under
an agreement.
(5) "Owner" means the registered owner, or a person or
entity designated by the registered owner, of a vehicle made
available for sharing to drivers through a peer-to-peer car sharing
program.
(6) "Peer-to-peer car sharing" means the authorized
use of a vehicle by an individual other than the vehicle's owner
through a peer-to-peer car sharing program. The term does not
include the use of a private passenger vehicle from a rental company
under the terms of a rental agreement as those terms are defined by
Section 91.001.
(7) "Peer-to-peer car sharing program" means a
business platform that connects owners with drivers to enable
vehicle sharing for financial consideration. The term does not
include:
(A) a service provider who is solely providing
hardware or software as a service to a person or entity that is not
effectuating payment of financial consideration for use of a shared
vehicle; and
(B) a rental company as defined by Section
91.001.
(8) "Shared vehicle" means a vehicle that is available
for sharing through a peer-to-peer car sharing program. The term
does not include the use of a private passenger vehicle from a
rental company under the terms of a rental agreement as those terms
are defined by Section 91.001.
(9) "Start time" means the time when the shared
vehicle becomes subject to the control of the driver at or after the
time the reservation of a shared vehicle is scheduled to begin under
the agreement.
(10) "Termination time" means the earliest of:
(A) the expiration of the period of time
established for the use of a shared vehicle according to the
agreement if the shared vehicle is returned to the location
specified in the agreement;
(B) the time when the shared vehicle is returned
to a location as alternatively agreed on by the owner and driver as
communicated through a peer-to-peer car sharing program and which
alternatively agreed on location is thereby incorporated into the
agreement; or
(C) the time when the owner or owner's authorized
designee takes possession and control of the shared vehicle.
Sec. 113.0002. APPLICABILITY OF CHAPTER. This chapter
applies to automobile insurance policies in this state, including
policies issued by a Lloyd's plan, a reciprocal or interinsurance
exchange, or a county mutual insurance company.
Sec. 113.0003. CONSTRUCTION OF CHAPTER. Nothing in this
chapter may be construed to:
(1) limit the liability of a peer-to-peer car sharing
program for any act or omission of the program itself that results
in injury to a person as a result of the use of a shared vehicle
through the program;
(2) limit the ability of a peer-to-peer car sharing
program to, by contract, seek indemnification from the owner or
driver for economic loss sustained by the program resulting from a
breach of the agreement;
(3) have implications affecting construction of
statutes outside this chapter, including statutes related to motor
vehicle regulation, airport regulation, or taxation;
(4) invalidate or limit an exclusion contained in an
automobile insurance policy, including an insurance policy in use
or approved for use that excludes coverage for automobiles made
available for rent, sharing, hire, or any business use; or
(5) invalidate, limit, or restrict an insurer's
ability under law to:
(A) underwrite any insurance policy; or
(B) cancel or decline to renew an insurance
policy.
Sec. 113.0004. RULES. The commissioner of insurance may
adopt rules necessary to implement this chapter.
SUBCHAPTER B. ASSUMPTION OF LIABILITY AND INSURANCE REQUIREMENTS
Sec. 113.0051. ASSUMPTION OF LIABILITY BY PEER-TO-PEER CAR
SHARING PROGRAM. (a) Except as provided by Subsection (b), a
peer-to-peer car sharing program shall assume liability of an owner
for bodily injury or property damage to third parties or uninsured
or underinsured motorist or personal injury protection losses by
damaged third parties during the car sharing period in an amount
stated in the agreement, which may not be less than, as applicable,
the amounts:
(1) provided by Subchapter D, Chapter 601,
Transportation Code;
(2) required for uninsured or underinsured motorist
coverage under Section 1952.101, Insurance Code; or
(3) provided as the maximum amount of required
personal injury protection coverage under Section 1952.153,
Insurance Code.
(b) A peer-to-peer car sharing program is not required to
assume liability of an owner if the owner:
(1) makes an intentional or fraudulent material
misrepresentation or omission to the program before the car sharing
period in which the loss occurred; or
(2) acts in concert with a driver who fails to return
the shared vehicle in accordance with the agreement.
(c) Notwithstanding the definition of "termination time"
under Section 113.0001 or this subchapter, the assumption of
liability under Subsection (a) applies to bodily injury, property
damage, uninsured and underinsured motorist, or personal injury
protection losses by damaged third parties as required by
Subchapter D, Chapter 601, Transportation Code, Section 1952.101,
Insurance Code, and Section 1952.153, Insurance Code.
Sec. 113.0052. INSURANCE REQUIRED. (a) A peer-to-peer car
sharing program shall ensure that, during each car sharing period,
the owner and the driver are insured under an automobile liability
insurance policy that meets the requirements of this subchapter.
(b) Insurance maintained for purposes of this subchapter:
(1) must provide coverage in amounts not less than the
amounts described by Section 601.072, Transportation Code;
(2) must be primary during each car sharing period;
and
(3) must:
(A) recognize that the shared vehicle insured
under the policy is made available and used through a peer-to-peer
car sharing program and specifically provide coverage for that use;
or
(B) not exclude the use of a shared vehicle by a
driver.
(c) The coverage requirements of this subchapter may be
satisfied by:
(1) automobile insurance maintained by the owner;
(2) automobile insurance maintained by the driver;
(3) automobile insurance maintained by the
peer-to-peer car sharing program; or
(4) a combination of Subdivisions (1), (2), and (3).
(d) If a claim occurs in another state with minimum
financial responsibility limits higher than the amounts described
by Section 601.072, Transportation Code, during the car sharing
period, the coverage maintained under Subsection (a) must satisfy
the difference in minimum coverage amounts to the applicable policy
limits.
Sec. 113.0053. AUTOMOBILE INSURANCE POLICY EXCLUSIONS. An
automobile insurer may exclude any coverage and the duty to defend
or indemnify for any claim afforded under an owner's automobile
insurance policy during a car sharing period, including an
exclusion of:
(1) liability coverage for bodily injury and property
damage;
(2) personal injury protection coverage;
(3) uninsured and underinsured motorist coverage;
(4) medical payments coverage;
(5) comprehensive physical damage coverage; and
(6) collision physical damage coverage.
Sec. 113.0054. CLAIMS RELATED TO PEER-TO-PEER CAR SHARING.
(a) An insurer or peer-to-peer car sharing program providing
coverage under Section 113.0052(a) shall assume primary liability
for a claim when:
(1) a dispute exists as to who was in control of the
shared vehicle at the time of the loss and the program does not have
available, did not retain, or fails to provide the information
required by Section 113.0103; or
(2) a dispute exists as to whether the shared vehicle
was returned to the alternatively agreed upon location described by
Section 113.0001(10)(B).
(b) If, at the time of a claim, the automobile insurance
maintained by an owner or driver has lapsed or does not provide the
coverage required under this subchapter, insurance maintained by a
peer-to-peer car sharing program shall provide the coverage
beginning with the first dollar of a claim and the program shall
defend the claim.
(c) Coverage under an automobile insurance policy
maintained by the peer-to-peer car sharing program may not be
dependent on another automobile insurer first denying a claim.
Another automobile insurance policy is not required to first deny a
claim.
Sec. 113.0055. VICARIOUS LIABILITY. Notwithstanding any
other law, a peer-to-peer car sharing program and an owner are not
liable under a theory of vicarious liability in accordance with 49
U.S.C. Section 30106 or under any state or local law that imposes
liability solely based on vehicle ownership.
Sec. 113.0056. CONTRIBUTION. An automobile insurer that
defends or indemnifies a claim against a shared vehicle that is
excluded under the terms of the insurer's policy may seek recovery
against the peer-to-peer car sharing program's automobile insurer
if the claim is:
(1) made against the shared vehicle's owner or the
shared vehicle's driver for loss or injury that occurs during the
car sharing period; and
(2) excluded under the terms of the insurer's policy.
Sec. 113.0057. INSURABLE INTEREST. (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) Nothing in this section creates a duty on a peer-to-peer
car sharing program to maintain the coverage required under this
subchapter.
(c) A peer-to-peer car sharing program may own and maintain
as the named insured one or more policies of automobile insurance
that separately or in combination provide coverage for:
(1) liability assumed by the program under an
agreement;
(2) liability of the owner;
(3) damage to or loss of the shared vehicle; or
(4) liability of the driver.
Sec. 113.0058. INSURANCE REQUIREMENTS. (a) An insurance
policy providing coverage described by Section 113.0057(c)(2) or
(4) must expressly provide liability coverage, without prior notice
to the insurer, for all shared vehicles during the car sharing
period, subject to any conditions or exclusions permitted by this
chapter.
(b) An insurer authorized to engage in the business of
insurance in this state or an eligible surplus lines insurer may
issue an insurance policy described by Section 113.0057(c).
(c) A peer-to-peer car sharing program is not required to
itemize or charge the owner or driver the amount payable as premium
under a policy described by Section 113.0057(c) that is allocable
to coverage provided to the owner or driver if:
(1) for the owner, the coverage is included without an
additional or itemized charge in the fee charged by the program for
the applicable car share reservation; or
(2) for the driver, the coverage is included without
an additional or itemized charge in the cost of the reservation of
the shared vehicle.
SUBCHAPTER C. PEER-TO-PEER CAR SHARING PROGRAM RESPONSIBILITIES
Sec. 113.0101. REQUIRED DISCLOSURES AND NOTICE. (a) Each
agreement entered into in this state must disclose to the owner and
the driver:
(1) any right of the peer-to-peer car sharing program
to seek indemnification from the owner or driver for economic loss
sustained by the program resulting from a breach of the agreement;
(2) that an automobile insurance policy issued to the
owner for the shared vehicle or to the 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 owner and the driver is in effect only
during each car sharing period;
(4) that, for any use of the shared vehicle by the
driver after the termination time, the owner and driver may not have
insurance coverage;
(5) the daily rate, fees, and, if applicable, any
insurance costs that are charged to the owner or driver;
(6) that the owner's automobile insurance may not
provide coverage for a shared vehicle;
(7) an emergency telephone number through which
personnel capable of fielding roadside assistance and other
customer service inquiries may be reached; and
(8) if applicable, any condition under which a driver
must maintain a personal automobile insurance policy with certain
applicable coverage limits on a primary basis to book a shared
vehicle.
(b) When a person registers as an owner on a peer-to-peer
car sharing program and before the owner makes a shared vehicle
available for car sharing on the program, the program shall provide
written notice to the owner that, if the shared vehicle has a lien
against it, the shared vehicle's use through the program, including
use without physical damage coverage, may violate the terms of the
contract with the lienholder.
Sec. 113.0102. AUTHORIZATION TO DRIVE REQUIRED. A
peer-to-peer car sharing program may not enter into an agreement
with a driver unless the driver who will operate the shared vehicle:
(1) is a resident of this state and holds a driver's
license issued by this state that authorizes the driver to operate
vehicles of the class of the shared vehicle;
(2) is a nonresident of this state and:
(A) holds a driver's license issued by the state
or country of the driver's residence that authorizes the driver to
operate vehicles of the class of the shared vehicle; and
(B) is at least the same age as that required of a
resident of this state to drive; or
(3) is otherwise specifically authorized by this state
to drive vehicles of the class of the shared vehicle.
Sec. 113.0103. RECORD RETENTION. (a) A peer-to-peer car
sharing program shall keep and maintain a record of:
(1) the name and address of each driver who has entered
into an agreement with the program; and
(2) the driver's license number and place of issuance
of each driver and individual who will operate a shared vehicle
under the program.
(b) A peer-to-peer car sharing program shall collect and
verify records related to use of a shared vehicle under the program,
including:
(1) the times the vehicle is used;
(2) car sharing period pick-up and drop-off locations;
(3) money received by the owner; and
(4) fees paid by the driver.
(c) A peer-to-peer car sharing program shall provide
information collected under Subsection (b) on request to the owner,
the owner's insurer, or the driver's insurer to facilitate a claim
coverage investigation, settlement, negotiation, or litigation.
(d) A peer-to-peer car sharing program shall retain
information collected under Subsection (b) for a period of not less
than the limitations period provided under Section 16.003, Civil
Practice and Remedies Code, for a personal injury suit.
Sec. 113.0104. RESPONSIBILITY FOR CAR SHARING EQUIPMENT.
(a) A peer-to-peer car sharing program is solely responsible for
any equipment, including a global positioning system device or
other special equipment, placed in or on a shared vehicle used under
the program to monitor or facilitate the car sharing transaction.
The program shall agree to indemnify and hold harmless the
vehicle's owner for any damage to or theft of such equipment during
the car sharing period not caused by the owner.
(b) A peer-to-peer car sharing program may seek indemnity
from a driver for any loss of or damage to equipment described by
Subsection (a) that occurs during the car sharing period.
Sec. 113.0105. AUTOMOBILE SAFETY RECALL. (a) When a person
registers as an owner on a peer-to-peer car sharing program and
before the owner makes a shared vehicle available for car sharing on
the program, the program shall:
(1) verify that the vehicle does not have a safety
recall for which repairs have not been made; and
(2) notify the owner of the requirements under
Subsection (b).
(b) If an owner receives notice of a safety recall on a
shared vehicle:
(1) before the vehicle has been made available as a
shared vehicle on a peer-to-peer car sharing program, the owner may
not make the vehicle available as a shared vehicle on the program
until the safety recall repair has been made;
(2) while the vehicle is available as a shared vehicle
on a peer-to-peer car sharing program, the owner shall remove the
vehicle from the program as soon as practicably possible after
receiving the safety recall notice and until the safety recall
repair has been made; or
(3) while the vehicle is being used in the possession
of a driver, the owner shall notify the peer-to-peer car sharing
program as soon as practicably possible after receiving the safety
recall notice to allow the owner to address the safety recall
repair.
SECTION 2. (a) Chapter 113, Business & Commerce Code, as
added by this Act, applies only to an automobile insurance policy
delivered, issued for delivery, or renewed on or after January 1,
2022. An automobile insurance policy delivered, issued for
delivery, or renewed before January 1, 2022, is governed by the law
as it existed immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
(b) Chapter 113, Business & Commerce Code, as added by this
Act, applies only to a peer-to-peer car sharing agreement entered
into on or after January 1, 2022.
SECTION 3. This Act takes effect September 1, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 113 was passed by the House on April
21, 2021, by the following vote: Yeas 148, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 113 was passed by the Senate on May
22, 2021, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor