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