HOUSE OF REPRESENTATIVES H.B. NO. 639 THIRTY-SECOND LEGISLATURE, 2023 H.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO INSURANCE. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: HOUSE OF REPRESENTATIVES H.B. NO. 639 THIRTY-SECOND LEGISLATURE, 2023 H.D. 1 STATE OF HAWAII HOUSE OF REPRESENTATIVES H.B. NO. 639 THIRTY-SECOND LEGISLATURE, 2023 H.D. 1 STATE OF HAWAII A BILL FOR AN ACT RELATING TO INSURANCE. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: SECTION 1. Section 431:10C-801, Hawaii Revised Statutes, is amended as follows: 1. By amending the definitions of "car-sharing termination time" and "peer-to-peer car-sharing" to read: ""Car-sharing termination time" means the [latest] earliest of the following events: (1) The expiration of the agreed upon period of time established for the use of a shared car according to the terms of the car-sharing program agreement if the shared car is delivered to the location agreed upon in the car-sharing program agreement; (2) When the shared car is returned to a location as alternatively agreed upon by the shared car owner and shared car 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; or [(3) When a shared car is returned to the location agreed upon in the car-sharing program agreement or alternatively agreed upon by the shared car owner and the shared car driver, as communicated through a peer-to-peer car-sharing program, before the expiration of the period of time established for the use of a shared car according to the terms of the car-sharing program agreement, and the shared car driver notifies the peer-to-peer car-sharing program of the location of the shared car; (4) When a shared car, during the car-sharing period, cannot safely or legally be operated and the shared car driver notifies the peer-to-peer car-sharing program that the shared car is inoperable and identifies the location of the shared car; (5) When the shared car owner receives notice of a safety recall affecting the shared car and the shared car driver returns the shared car to the location agreed upon in the car-sharing program agreement, or alternatively agreed upon by the shared car owner and the shared car driver, and the shared car driver notifies the peer-to-peer car-sharing program of the location of the shared car; or (6)] (3) When the shared car owner or the shared car owner's authorized designee takes possession and control of the shared car. "Peer-to-peer car-sharing" means the authorized operation, use, or control of a motor vehicle by an individual other than the motor vehicle's owner through a peer-to-peer car-sharing program. "Peer-to-peer car-sharing", for the purposes of assessing a vehicle surcharge tax, does not mean the business of providing rental motor vehicles to the public as that phrase is used in section 251-3." 2. By amending the definitions of "peer-to-peer car-sharing program" and "shared car" to read: ""Peer-to-peer car-sharing program" means: (1) Any person who enables a shared car driver to identify, reserve, or use a shared car owned by a shared car owner; or (2) Any person who enables a shared car owner to describe, list, or make available a shared car for identification, reservation, or use by a shared car driver. "Peer-to-peer car-sharing program" does not include: (1) A transportation network company as defined in section 431:10C-701; (2) A car-sharing organization as defined in section 251-1; (3) Any person registered and acting as a travel agency pursuant to chapter 468L; [or] (4) Any person registered and acting as an activity desk pursuant to chapter 468M[.]; or (5) A lessor as defined in section 251-1 or 437D-3. "Shared car" means a motor vehicle that is registered pursuant to chapter 286 [and]; is not owned[;], controlled[;], operated[;], maintained[;], or managed by or registered, directly or indirectly through an affiliate, to the peer-to-peer car-sharing program; and is available for sharing through a peer-to-peer car-sharing program. "Shared car" does not include [a]: (1) A rental motor vehicle or vehicle as those terms are defined in section 437D-3[.]; or (2) A rental or U-drive motor vehicle as defined in section 286-2." 3. By amending the definition of "shared car owner" to read: ""Shared car owner" means the registered owner of a shared car. "Shared car owner" does not include a lessor as defined in section 251-1 or 437D-3." SECTION 2. Act 56, Session Laws of Hawaii 2022, is amended by amending section 5 to read as follows: "SECTION 5. This Act shall take effect on January 1, 2023[, and shall be repealed on June 30, 2025]." SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 4. This Act shall take effect upon its approval. SECTION 1. Section 431:10C-801, Hawaii Revised Statutes, is amended as follows: 1. By amending the definitions of "car-sharing termination time" and "peer-to-peer car-sharing" to read: ""Car-sharing termination time" means the [latest] earliest of the following events: (1) The expiration of the agreed upon period of time established for the use of a shared car according to the terms of the car-sharing program agreement if the shared car is delivered to the location agreed upon in the car-sharing program agreement; (2) When the shared car is returned to a location as alternatively agreed upon by the shared car owner and shared car 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; or [(3) When a shared car is returned to the location agreed upon in the car-sharing program agreement or alternatively agreed upon by the shared car owner and the shared car driver, as communicated through a peer-to-peer car-sharing program, before the expiration of the period of time established for the use of a shared car according to the terms of the car-sharing program agreement, and the shared car driver notifies the peer-to-peer car-sharing program of the location of the shared car; (4) When a shared car, during the car-sharing period, cannot safely or legally be operated and the shared car driver notifies the peer-to-peer car-sharing program that the shared car is inoperable and identifies the location of the shared car; (5) When the shared car owner receives notice of a safety recall affecting the shared car and the shared car driver returns the shared car to the location agreed upon in the car-sharing program agreement, or alternatively agreed upon by the shared car owner and the shared car driver, and the shared car driver notifies the peer-to-peer car-sharing program of the location of the shared car; or (6)] (3) When the shared car owner or the shared car owner's authorized designee takes possession and control of the shared car. "Peer-to-peer car-sharing" means the authorized operation, use, or control of a motor vehicle by an individual other than the motor vehicle's owner through a peer-to-peer car-sharing program. "Peer-to-peer car-sharing", for the purposes of assessing a vehicle surcharge tax, does not mean the business of providing rental motor vehicles to the public as that phrase is used in section 251-3." 2. By amending the definitions of "peer-to-peer car-sharing program" and "shared car" to read: ""Peer-to-peer car-sharing program" means: (1) Any person who enables a shared car driver to identify, reserve, or use a shared car owned by a shared car owner; or (2) Any person who enables a shared car owner to describe, list, or make available a shared car for identification, reservation, or use by a shared car driver. "Peer-to-peer car-sharing program" does not include: (1) A transportation network company as defined in section 431:10C-701; (2) A car-sharing organization as defined in section 251-1; (3) Any person registered and acting as a travel agency pursuant to chapter 468L; [or] (4) Any person registered and acting as an activity desk pursuant to chapter 468M[.]; or (5) A lessor as defined in section 251-1 or 437D-3. "Shared car" means a motor vehicle that is registered pursuant to chapter 286 [and]; is not owned[;], controlled[;], operated[;], maintained[;], or managed by or registered, directly or indirectly through an affiliate, to the peer-to-peer car-sharing program; and is available for sharing through a peer-to-peer car-sharing program. "Shared car" does not include [a]: (1) A rental motor vehicle or vehicle as those terms are defined in section 437D-3[.]; or (2) A rental or U-drive motor vehicle as defined in section 286-2." 3. By amending the definition of "shared car owner" to read: ""Shared car owner" means the registered owner of a shared car. "Shared car owner" does not include a lessor as defined in section 251-1 or 437D-3." SECTION 2. Act 56, Session Laws of Hawaii 2022, is amended by amending section 5 to read as follows: "SECTION 5. This Act shall take effect on January 1, 2023[, and shall be repealed on June 30, 2025]." SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 4. This Act shall take effect upon its approval. Report Title: Insurance; Motor Vehicle Insurance; Peer-to-Peer Car-Sharing; Programs; Shared Cars Description: Clarifies when the termination of peer-to-peer car-sharing occurs for purposes of motor vehicle insurance. Clarifies the application of the peer-to-peer car-sharing insurance laws as to other entities that make available rental vehicles under state law. Repeals the sunset of the peer-to-peer car-sharing insurance requirements. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. Report Title: Insurance; Motor Vehicle Insurance; Peer-to-Peer Car-Sharing; Programs; Shared Cars Description: Clarifies when the termination of peer-to-peer car-sharing occurs for purposes of motor vehicle insurance. Clarifies the application of the peer-to-peer car-sharing insurance laws as to other entities that make available rental vehicles under state law. Repeals the sunset of the peer-to-peer car-sharing insurance requirements. (HD1) The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.