Alabama 2023 Regular Session

Alabama House Bill HB459 Latest Draft

Bill / Introduced Version Filed 05/11/2023

                            HB459INTRODUCED
Page 0
OKTVWW-1
By Representatives Rafferty, Gray
RFD: Economic Development and Tourism
First Read: 11-May-23
2023 Regular Session
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6 OKTVWW-1 05/022023 SLU (L) bm 2023-1871
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SYNOPSIS: 
This bill would authorize peer-to-peer car
sharing programs, which are business platforms that
connect vehicle owners with drivers to enable the
sharing of vehicles for financial consideration, in
this state.
This bill would provide requirements for the
operation of a peer-to-peer car sharing program,
including insurance requirements, notification
requirements, recordkeeping and reporting requirements,
liability requirements, consumer protection disclosure
requirements, and safety recall requirements.
This bill would also provide that lessors of
vehicles used in peer-to-peer car sharing in the state
who have paid taxes due upon purchase of the vehicle in
the jurisdiction where it was purchased, shall not be
subject to privilege or license taxes on gross proceeds
of vehicle rental or leasing. 
A BILL
TO BE ENTITLED
AN ACT
Relating to motor vehicles; establishing the
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Peer-to-Peer Car Sharing Program Act; to provide for the
operation of peer-to-peer car sharing programs in the state;
and to amend Section 40-12-222, Code of Alabama 1975, to
exclude lessors of peer-to-peer car sharing vehicles from
liability for certain taxes on the proceeds of vehicle rental
and leasing.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This section shall be known and may be cited
as the Peer-to-Peer Car Sharing Program Act.
Section 2. (a) As used in this section, the following
words have the following meanings:
(1) CAR SHARING DELIVERY PERIOD or DELIVERY PERIOD. The
period of time during which a shared vehicle is being
delivered to the location of the car sharing start time, if
applicable, as documented by the governing car sharing program
agreement.
(2) CAR SHARING PERIOD or SHARING PERIOD. The period of
time that commences with the car sharing delivery period or,
if there is no car sharing delivery period, that commences
with the car sharing start time and, in either case, ends at
the car sharing termination time. 
(3) CAR SHARING START TIME or START TIME. The time when
the shared vehicle becomes subject to the control of the
shared vehicle driver, at or after the time the reservation of
a shared vehicle is scheduled to begin, as documented in the
records of a peer-to-peer car sharing program.
(4) CAR SHARING TERMINATION TIME or TERMINATION TIME.
The earliest of the following events: 
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a. The expiration of the agreed-upon period of time
established for the use of a shared vehicle according to the
terms of the car sharing program agreement, if the shared
vehicle is delivered to the location agreed upon in the car
sharing program agreement. 
b. When the shared vehicle is returned to a location as
alternatively agreed upon by the shared vehicle owner and the
shared vehicle driver as communicated through a peer-to-peer
car sharing program, which alternatively agreed upon location
shall be incorporated into the car sharing program agreement.
c. When the shared vehicle owner, or the shared vehicle
owner's authorized designee, takes possession and control of
the shared vehicle. 
(5) PEER-TO-PEER CAR SHARING or SHARING. 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 a rental or leasing transaction of tangible
personal property which is subject to Article 4 of Chapter 12
of Title 40, Code of Alabama 1975, except as provided by
Section 40-12-222(a)(2), Code of Alabama 1975.
(6) PEER-TO-PEER CAR SHARING PROGRAM. A business
platform that connects vehicle owners with drivers to enable
the sharing of vehicles for financial consideration. The term
does not include any of the following:
a. A person engaging or continuing within this state in
the business of leasing or renting any automotive vehicle or
truck trailer, semitrailer, or house trailer which is subject
to Article 4 of Chapter 12 of Title 40, Code of Alabama 1975.
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b. A person facilitating a rental transaction of
tangible personal property which is subject to Article 4 of
Chapter 12 of Title 40, Code of Alabama 1975.
c. A motor vehicle rental company licensed pursuant to
Section 27-7-5.1, Code of Alabama 1975.
d. A person facilitating rental transactions as used in
Section 40-2-11(7)(c), Code of Alabama 1975.
(7) PEER-TO-PEER CAR SHARING PROGRAM AGREEMENT or
AGREEMENT. The terms and conditions applicable to a shared
vehicle owner and a shared vehicle driver that govern the use
of a shared vehicle through a peer-to-peer car sharing
program. The term does not include any of the following;
a. A car rental service provider solely providing
hardware or software as a service to a person or entity that
is not effectuating payment of financial consideration for the
use of a shared vehicle. 
b. A motor vehicle rental agreement governed by Section
32-15-6, Code of Alabama 1975.
c. Hiring, leasing, or renting a motor vehicle under a
rental agreement governed by Section 32-15-6, Code of Alabama.
d. A rental agreement with a motor vehicle rental
company licensed pursuant to Section 27-7-5.1, Code of Alabama
1975.  
(8) SHARED VEHICLE or VEHICLE. A vehicle that is
available for sharing through a peer-to-peer car sharing
program. The term does not include an automotive vehicle or a
truck trailer, semitrailer, or house trailer that is subject
to Article 4 of Chapter 12 of Title 40, Code of Alabama 1975,
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except as provided by Section 40-12-222(a)(2), Code of Alabama
1975.
(9) SHARED VEHICLE DRIVER or DRIVER. An individual who
has been authorized to drive the shared vehicle by the shared
vehicle owner under a car sharing program agreement. The term
does not include a person hiring, leasing, or renting a motor
vehicle under an agreement with a motor vehicle rental company
licensed pursuant to Section 27-7-5.1, Code of Alabama 1975.
(10) SHARED VEHICLE OWNER or OWNER. The registered
owner, or a person or entity designated by the registered
owner, of a vehicle made available for sharing to shared
vehicle drivers through a peer-to-peer car sharing program.
The term does not include any of the following:
a. A lessor that is subject to Article 4 of Chapter 12
of Title 40, Code of Alabama 1975, except as provided by
Section 40-12-222(a)(2), Code of Alabama 1975.
b. A motor vehicle rental company licensed pursuant to
Section 27-7-5.1, Code of Alabama 1975. 
Section 3.(a) Except as provided in subsection (b), a
peer-to-peer car sharing program shall assume liability of a
shared vehicle owner for bodily injury or property damage to
third parties or uninsured and underinsured motorists or
personal injury protection losses during the car sharing
period, in an amount stated in the peer-to-peer car sharing
program agreement. The amount shall not be less than the proof
of financial responsibility required under Chapter 7, Title
32, Code of Alabama 1975.
 (b) Notwithstanding the definition of "car sharing
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termination time," the assumption of liability under
subsection (a) does not apply to any shared vehicle owner
under any of the following circumstances:
 (1) When a shared vehicle owner makes an intentional
or fraudulent material misrepresentation or omission to the
peer-to-peer car sharing program before the car sharing period
in which the loss occurred. 
(2) When a shared vehicle owner acts in concert with a
shared vehicle driver who fails to return the shared vehicle
pursuant to the terms of the car sharing program agreement. 
(3) In the event of bodily injury, property damage,
uninsured and underinsured motorist or personal injury
protection losses by damaged third parties required under
Chapter 7 of Title 32, Code of Alabama 1975. 
(c) 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 does all of the
following:  
(1) Provides insurance coverage in amounts no less than
the minimum amounts required for proof of financial
responsibility under Section 32-7-2, Code of Alabama 1975.
(2) Does either of the following:
a. Recognizes that the shared vehicle insured under the
policy is made available and used through a peer-to-peer car
sharing program.
b. Does not exclude the use of a shared vehicle by a
shared vehicle driver. 
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(d) The insurance required under subsection (c) may be 
purchased by any of the following: 
(1) A shared vehicle owner.
(2) A shared vehicle driver.
(3) A peer-to-peer car sharing program.
(4) Any combination of a shared vehicle owner, a shared
vehicle driver, and a peer-to-peer car sharing program.
(e) The insurance required in subsection (d), that is
satisfying the requirement of subsection (c), shall be primary
during each car sharing period, and in the event that a claim
occurs in another state with minimum financial responsibility
limits higher than those set forth in Section 32-7-2, Code of
Alabama 1975, during the car sharing period, the coverage
maintained under subsection (d) shall satisfy the difference
in minimum coverage amounts, up to the applicable policy
limits. 
 (f) The insurer, insurers, or peer-to-peer car sharing
program providing coverage under subsection (c) or (d) shall
assume primary liability for a claim when either of the
following occurs: 
(1) A dispute exists as to who was in control of the
shared motor vehicle at the time of the loss, and the
peer-to-peer car sharing program does not have available, did
not retain, or fails to provide the information required by
Section 6.
(2) A dispute exists as to whether the shared vehicle
was returned to the alternatively agreed upon location, as
required under Section 2(4)(b). 
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(g) If insurance maintained by a shared vehicle owner
or shared vehicle driver in accordance with subsection (d) has
lapsed or does not provide the required coverage, insurance
maintained by a peer-to-peer car sharing program shall provide
the coverage required by subsection (c) beginning with the
first dollar of a claim and shall have the duty to defend such
claim except under circumstances as set forth in subsection
(b). 
(h) 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,
and may not require another automobile insurance policy to
first deny a claim. 
(i) Nothing in this section does any of the following: 
(1) Limits the ability of a peer-to-peer car sharing
program for any act or omission of the peer-to-peer car
sharing program itself that results in injury to any person as
a result of the use of a shared vehicle through a peer-to-peer
car sharing program. 
(2) Limits the ability of the peer-to-peer car sharing
program to seek indemnification, by contract, 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. 
Section 4. When a vehicle owner registers as a shared
vehicle owner on a peer-to-peer car sharing program, and
before the shared vehicle owner makes a shared vehicle
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available for car sharing on the 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
against it, the use of the shared vehicle through a
peer-to-peer car sharing program, including use without
physical damage coverage, may violate the terms of the
contract with the lien holder. 
Section 5. (a) An authorized insurer that writes motor
vehicle liability insurance in this state may exclude any and
all coverage and the duty to defend or indemnify for any claim
afforded under a shared vehicle owner's motor vehicle
liability insurance policy, including, but not limited to, all
of the following: 
(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.
(6) Collision physical damage coverage. 
(b) Nothing in this act invalidates or limits an
exclusion contained in a motor vehicle liability insurance
policy, including any insurance policy in use or approved for
use that excludes coverage for motor vehicles made available
for rent, sharing, hire, or for any business use. 
(c) Nothing in this act invalidates, limits, or
restricts an insurer's ability under existing law to
underwrite any insurance policy. Nothing in this act
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invalidates, limits, or restricts an insurer's ability under
existing law to cancel and nonrenew policies. 
Section 6. (a) A peer-to-peer car sharing program
shall collect and verify records pertaining to the use of all
vehicles used in a peer-to-peer car sharing program,
including, but not limited to, all of the following:
(1) The number of times the vehicle is used.
(2) Car sharing period pick up and drop off locations.
(3) Fees paid by the shared vehicle driver.
(4) Revenues received by the shared vehicle owner.
(b) To facilitate a claim coverage investigation,
settlement, negotiation, and litigation, the peer-to-peer car
sharing program, upon request, shall provide the records
collected under subsection (a) to the shared vehicle owner,
the shared vehicle owner's insurer, or the shared vehicle
driver's insurer. 
(c) The peer-to-peer car sharing program shall retain
the records for a time period not less than the applicable
personal injury statute of limitations. 
Section 7. A peer-to-peer car sharing program and a
shared vehicle owner shall not be liable, vicariously or
otherwise, by reason of making a shared vehicle available for
use through the peer-to-peer car sharing program or by being
the owner of a shared vehicle, for harm to persons or property
that occurs during the car sharing period. 
Section 8. A motor vehicle insurer that defends or
indemnifies a claim against a shared vehicle that is excluded
under the terms of its policy shall have the right to seek
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contribution against the motor vehicle insurer of the
peer-to-peer car sharing program if the claim is both of the
following: 
(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 its policy. 
Section 9. (a) Notwithstanding any law to the
contrary, a peer-to-peer car sharing program shall have an
insurable interest in a shared vehicle during the car sharing
period. 
(b) Nothing in this section shall create liability on a
peer-to-peer car sharing program to maintain the coverage
mandated by Section 3. 
(c) A peer-to-peer car sharing program may own and
maintain as the named insured one or more policies of motor
vehicle liability insurance that provide coverage for any of
the following: 
(1) Liabilities assumed by the peer-to-peer car sharing
program under a peer-to-peer car sharing program agreement. 
(2) Any liability of the shared vehicle owner. 
(3) Damage or loss to the shared motor vehicle. 
(4) Any liability of the shared vehicle driver. 
Section 10. Each car sharing program agreement made in
this state shall disclose to the shared vehicle owner and the
shared vehicle driver all of the following: 
(1) Any right of the peer-to-peer car sharing program
to seek indemnification from the shared vehicle owner or the
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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 may not
have insurance coverage. 
(4) The daily rate, fees, and if applicable, any
insurance 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 to personnel capable
of fielding roadside assistance and other customer service
inquiries. 
(7) Whether there are conditions under which a shared
vehicle driver must maintain a personal automobile insurance
policy with certain applicable coverage limits on a primary
basis in order to book a shared motor vehicle. 
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Section 11. (a) A peer-to-peer car sharing program may
not enter into a peer-to-peer car sharing program agreement
with an individual who will operate the shared vehicle unless
he or she meets any of the following requirements: 
(1) Holds a driver license issued under Section 32-6-1,
Code of Alabama 1975, that authorizes him or her to operate
vehicles of the class of the shared vehicle. 
(2) Is a nonresident who meets both of the following
requirements:  
a. Has a driver license issued by the state or country
of his or her residence which authorizes him or her to drive
vehicles of the class of the shared vehicle.
b. Is 16 or more years of age. 
(3) Is specifically authorized by Section 32-6-2, Code
of Alabama 1975, to drive vehicles of the class of the shared
vehicle. 
(b) A peer-to-peer car sharing program shall keep a
record of all of the following: 
(1) The name and address of the shared vehicle driver. 
(2) The driver license of the shared vehicle driver and
each other person, if any, who will operate the shared
vehicle. 
(3) The place of issuance of the driver license. 
Section 12. (a) A peer-to-peer car sharing program
shall have sole responsibility for any equipment, including a
Global Positioning System or other special equipment, that is
placed in or on the vehicle to monitor or facilitate the car
sharing transaction.
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(b) A peer-to-peer car sharing program shall indemnify
and hold harmless the shared vehicle owner for any damage to
or theft of such equipment during the sharing period not
caused by the vehicle owner.  
(c) A peer-to-peer car sharing program may seek
indemnity from the shared vehicle driver for any loss or
damage to such equipment that occurs during the sharing
period. 
Section 13. (a) When a vehicle owner registers as a
shared vehicle owner on a peer-to-peer car sharing program,
and before a shared vehicle owner makes a shared vehicle
available for car sharing on the peer-to-peer car sharing
program, the peer-to-peer car sharing program shall do both of
the following: 
(1) Verify that the shared vehicle does not have any
safety recalls on the vehicle for which the repairs have not
been made. 
(2) Notify the shared vehicle owner of the requirements
under subsection (b).  
(b)(1) If a shared vehicle owner has received an actual
notice of a safety recall on the vehicle, the shared vehicle
owner may not make a vehicle available as a shared vehicle on
a peer-to-peer car sharing program until the safety recall
repair has been made. 
(2) If a shared vehicle owner receives an actual notice
of a safety recall on a shared vehicle while the shared
vehicle is made available on the peer-to-peer car sharing
program, the shared vehicle owner shall change the status of
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the vehicle to unavailable as soon as practicably possible.
The shared vehicle may not be listed as available until the
safety recall repair has been made. 
(3) If a shared vehicle owner receives an actual notice
of a safety recall on a shared vehicle while the shared
vehicle is in the possession of a shared vehicle driver and
engaged in peer-to-peer car sharing during a sharing period,
the shared vehicle owner shall notify the peer-to-peer car
sharing program about the safety recall as soon as practicably
possible after receiving the notice of the safety recall. The
shared vehicle may not be listed as available until the safety
recall repair has been made. 
Section 14. Nothing in this act shall expand or
restrict in any manner the respective rights, obligations, and
limitations of motor vehicle manufacturers and licensed new
motor vehicle dealers as set forth in Title 8, Chapter 20,
Code of Alabama 1875, commencing at Section 8-20-1.
Section 15. Section 40-12-222, Code of Alabama 1975, is
amended to read as follows:
 "ยง40-12-222
(a)(1) In addition to all other taxes now imposed by
law, there is hereby levied and shall be collected a privilege
or license tax on each person engaging or continuing within
this state in the business of leasing or renting tangible
personal property at the rate of four percent of the gross
proceeds derived by the lessor from the lease or rental of
tangible personal property.
(2) Thea. Except as provided in paragraph b., the
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privilege or license tax on each person engaging or continuing
within this state in the business of leasing or renting any
automotive vehicle or truck trailer, semitrailer, or house
trailer shall be at the rate of one and one-half percent of
the gross proceeds derived by the lessor from the lease or
rental of such automotive vehicle or truck trailer,
semitrailer, or house trailer.
b. For purposes of paragraph a. only, the business of
leasing or renting an automotive vehicle includes peer-to-peer
car sharing as defined in the Peer-to-Peer Car Sharing Program
Act. The gross proceeds collected by the Peer-to-Peer Car
Sharing Program as the leasing facilitator shall be subject to
the tax set forth in that paragraph if, and only if, the
applicable sales and use taxes were not paid either upon
purchase of the shared vehicle in the jurisdiction in which
the shared vehicle owner purchased the vehicle or at the time
of initial titling and registration in Alabama.
(3) The tax levied in this article shall not apply to
any leasing or rental, as lessor, by the state, or any
municipality or county in the state, or any public corporation
organized under the laws of the state, including, without
limiting the generality of the foregoing, any corporation
organized under the provisions of Sections 11-54-80 through
11-54-101.
(4) The privilege or license tax on each person or firm
engaging or continuing within this state in the business of
the leasing and rental of linens and garments shall be at the
rate of two percent of the gross proceeds derived by the
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lessor from the lease or rental of the linens and garments.
(b) Notwithstanding subsection (a), nothing shall
prohibit a lessor subject to a state or local privilege or
license tax from passing the amounts on to a lessee by adding
the taxes to the leasing price or otherwise; provided,
however, that all amounts passed on to the lessee shall be
includable in the gross proceeds derived from the lease of
tangible personal property which shall be subject to the
privilege or license tax owed by the lessor.
(c) The state and applicable local privilege or license
taxes applicable to a lease or rental transaction to which a
lessor is subject shall be determined as follows:
(1) Except for automotive vehicles as provided in
subdivision (2), the following shall apply:
a. When tangible personal property is delivered to the
lessee by the lessor or his or her agent, the privilege or
license tax levy shall be determined based on where the
property is delivered.
b. When tangible personal property is picked up at the
lessor's rental location by the lessee or his or her agent,
the privilege or license tax levy shall be determined based on
the rental location.
(2) For automotive vehicles required to be registered
pursuant to Section 32-6-61, each lease payment is considered
a separate lease transaction and occurs in the location as
provided below and the following rules shall apply:
a. The privilege or license tax levy on any
nonrecurring gross proceeds due at the inception of the lease
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to a new motor vehicle dealer or a used motor vehicle dealer
licensed pursuant to Section 40-12-391, including any
capitalized cost reduction or other fee that is retained by
the dealer in connection with its initiation of the lease,
shall be determined based on the location of the dealer where
the lease was initiated.
b. The privilege or license tax levy on gross proceeds
other than those described in paragraph a., including the
initial lease or rental payment and all subsequent lease or
rental payments, shall be determined based on the garage
address of the lessee as provided to the county licensing
official. The lessor is considered to be engaging or
continuing within this state in the business of leasing or
renting tangible personal property when its lessee has a
garage address within this state."
Section 16. This act shall become effective on the
first day of the third month following its passage and
approval by the Governor, or its otherwise becoming law.
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