Bill Text: TX HB113 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to peer-to-peer car sharing programs.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2021-06-09 - Effective on 9/1/21 [HB113 Detail]
Download: Texas-2021-HB113-Comm_Sub.html
Bill Title: Relating to peer-to-peer car sharing programs.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2021-06-09 - Effective on 9/1/21 [HB113 Detail]
Download: Texas-2021-HB113-Comm_Sub.html
87R15982 JES-F | |||
By: Oliverson | H.B. No. 113 | ||
Substitute the following for H.B. No. 113: | |||
By: Oliverson | C.S.H.B. No. 113 |
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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 | ||
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; or | ||
(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. | ||
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 recognize that the shared vehicle insured | ||
under the policy is made available and used through a peer-to-peer | ||
car sharing program; | ||
(3) must provide primary coverage during the car | ||
sharing period; and | ||
(4) may 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. |