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Massachusetts House Bill H3310

Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H3310 Compare Versions

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22 HOUSE DOCKET, NO. 2283 FILED ON: 1/20/2023
33 HOUSE . . . . . . . . . . . . . . . No. 3310
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Michael J. Finn
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act relative to peer-to-peer car sharing.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :DATE ADDED:Michael J. Finn6th Hampden1/20/2023F. Jay Barrows1st Bristol1/25/2023 1 of 12
1616 HOUSE DOCKET, NO. 2283 FILED ON: 1/20/2023
1717 HOUSE . . . . . . . . . . . . . . . No. 3310
1818 By Representative Finn of West Springfield, a petition (accompanied by bill, House, No. 3310)
1919 of Michael J. Finn and F. Jay Barrows relative to peer-to-peer car sharing. Transportation.
2020 The Commonwealth of Massachusetts
2121 _______________
2222 In the One Hundred and Ninety-Third General Court
2323 (2023-2024)
2424 _______________
2525 An Act relative to peer-to-peer car sharing.
2626 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2727 of the same, as follows:
2828 1 The General Laws, as appearing in the 2020 Official Edition, are hereby amended by
2929 2inserting after chapter 90J the following chapter:-
3030 3 CHAPTER 90K
3131 4 PERSONAL VEHICLE SHARING COMPANIES
3232 5
3333 6 Section 1. This Chapter is intended to govern the intersection of peer-to-peer car services
3434 7and the state-regulated business of insurance. Nothing in this Chapter shall be construed to
3535 8extend beyond insurance or have any implications for other provisions of the General Laws of
3636 9this Commonwealth, including but not limited to, those related to motor vehicle regulation,
3737 10airport regulation, or taxation. 2 of 12
3838 11 Section 2. As used in this chapter, the following words shall, unless the context clearly
3939 12requires otherwise, have the following meanings:-
4040 13 “Peer-to-Peer Car Sharing”, the authorized use of a vehicle by an individual other than
4141 14the vehicle’s owner through a peer-to-peer car sharing program. “Peer-to-Peer Car Sharing” does
4242 15not mean rental car or rental activity as defined in section 32E1/2 of chapter 90.
4343 16 “Peer-to-Peer Car Sharing Program”, a business platform that connects vehicle owners
4444 17with drivers to enable the sharing of vehicles for financial consideration. “Peer-to-Peer Car
4545 18Sharing Program” does not mean rental car company as defined in section 32E1/2 of chapter 90.
4646 19 “Car Sharing Program Agreement”, the terms and conditions applicable to a shared
4747 20vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-
4848 21to-peer car sharing program. “Car Sharing Program Agreement” does not mean rental car
4949 22agreement, as defined in section 32E1/2 of chapter 90.
5050 23 “Shared Vehicle”, a vehicle that is available for sharing through a peer-to-peer car
5151 24sharing program. “Shared vehicle” does not mean rental car or rental vehicle as defined in
5252 25section 32E1/2 of chapter 90.
5353 26 “Shared Vehicle Driver”, an individual who has been authorized to drive the shared
5454 27vehicle by the shared vehicle owner under a car sharing program agreement.
5555 28 “Shared Vehicle Owner”, the registered owner, or a person or entity designated by the
5656 29registered owner, of a vehicle made available for sharing to shared vehicle drivers through a
5757 30peer-to-peer car sharing program. 3 of 12
5858 31 “Car Sharing Delivery Period”, means the period of time during which a shared vehicle is
5959 32being delivered to the location of the car sharing start time, if applicable, as documented by the
6060 33governing car sharing program agreement.
6161 34 “Car Sharing Period”, the period of time that commences with the car sharing delivery
6262 35period or, if there is no car sharing delivery period, that commences with the car sharing start
6363 36time and in either case ends at the car sharing termination time.
6464 37 “Car Sharing Start Time”, the time when the shared vehicle becomes subject to the
6565 38control of the shared vehicle driver at or after the time the reservation of a shared vehicle is
6666 39scheduled to begin as documented in the records of a peer–to –peer car sharing program.
6767 40 “Car Sharing Termination Time”, the earliest of the following events:
6868 41 (1) The expiration of the agreed upon period of time established for the use of a shared
6969 42vehicle according to the terms of the car sharing program agreement if the shared vehicle is
7070 43delivered to the location agreed upon in the car sharing program agreement;
7171 44 (2) When the shared vehicle is returned to a location as alternatively agreed upon by the
7272 45shared vehicle owner and shared vehicle driver as communicated through a peer-to-peer car
7373 46sharing program, which alternatively agreed upon location shall be incorporated into the car
7474 47sharing program agreement; or
7575 48 (3) When the shared vehicle owner or the shared vehicle owner’s authorized designee,
7676 49takes possession and control of the shared vehicle.
7777 50 Section 3. (a) A peer-to-peer car sharing program shall assume liability, except as
7878 51provided in subsection (b) of this section, of a shared vehicle owner for bodily injury or property 4 of 12
7979 52damage to third parties or uninsured and underinsured motorist or personal injury protection
8080 53losses during the car sharing period in an amount stated in the peer-to-peer car sharing program
8181 54agreement which amount may not be less than those set forth in sections 34A to 34R, inclusive
8282 55of chapter 90.
8383 56 (b) Notwithstanding the definition of “car sharing termination time” as set forth in
8484 57Section 2 of this Chapter, the assumption of liability under subsection (a) of this subsection does
8585 58not apply to any shared vehicle owner when:
8686 59 (1) A shared vehicle owner makes an intentional or fraudulent material misrepresentation
8787 60or omission to the peer-to-peer car sharing program before the car sharing period in which the
8888 61loss occurred, or
8989 62 (2) Acting in concert with a shared vehicle driver who fails to return the shared vehicle
9090 63pursuant to the terms of car sharing program agreement.
9191 64 (c) Notwithstanding the definition of “car sharing termination time” as set forth in
9292 65Section 2 of this Chapter, the assumption of liability under subsection (a) of this section would
9393 66apply to bodily injury, property damage, uninsured and underinsured motorist or personal injury
9494 67protection losses by damaged third parties required by section 34A to 34N, inclusive of Chapter
9595 6890.
9696 69 (d) A peer-to-peer car sharing program shall ensure that, during each car sharing period,
9797 70the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability
9898 71insurance policy that provides insurance coverage in amounts no less than the minimum amounts
9999 72set forth in section 34M of Chapter 90 and: 5 of 12
100100 73 (1) Recognizes that the shared vehicle insured under the policy is made available and
101101 74used through a peer-to-peer car sharing program; or
102102 75 (2) Does not exclude use of a shared vehicle by a shared vehicle driver.
103103 76 (e) The insurance described under subsection may be satisfied by motor vehicle liability
104104 77insurance maintained by:
105105 78 (1) A shared vehicle owner;
106106 79 (2) A shared vehicle driver;
107107 80 (3) A peer-to-peer car sharing program; or
108108 81 (4) Both a shared vehicle owner, a shared vehicle driver, and a peer to-peer car sharing
109109 82program.
110110 83 (f) The insurance described in subsection (e) that is satisfying the insurance requirement
111111 84of subsection (d) shall be primary during each car sharing period and in the event that a claim
112112 85occurs in another state with minimum financial responsibility limits higher than those set forth in
113113 86sections 34A to 34R, inclusive of chapter 90 during the car sharing period, the coverage
114114 87maintained under subsection (e) shall satisfy the difference in minimum coverage amounts, up to
115115 88the applicable policy limits.
116116 89 (g) The insurer, insurers, or peer-to-peer car sharing program providing coverage under
117117 90(d) or (e) shall assume primary liability for a claim when: 6 of 12
118118 91 (1) a dispute exists as to who was in control of the shared motor vehicle at the time of the
119119 92loss and the peer-to-peer car sharing program does not have available, did not retain, or fails to
120120 93provide the information required by Section 6 of this Chapter; or
121121 94 (2) a dispute exists as to whether the shared vehicle was returned to the alternatively
122122 95agreed upon location as required under Section 2 of this Chapter.
123123 96 (h) If insurance maintained by a shared vehicle owner or shared vehicle driver in
124124 97accordance with subsection (e) has lapsed or does not provide the required coverage, insurance
125125 98maintained by a peer-to-peer car sharing program shall provide the coverage required by
126126 99subsection (d) beginning with the first dollar of a claim and have the duty to defend such claim
127127 100except under circumstances as set forth in subsection (b).
128128 101 (i) Coverage under an automobile insurance policy maintained by the peer-to-peer car
129129 102sharing program shall not be dependent on another automobile insurer first denying a claim nor
130130 103shall another automobile insurance policy be required to first deny a claim.
131131 104 (j) Nothing in this section:
132132 105 (1) Limits the liability of the peer-to-peer car sharing program for any act or omission of
133133 106the peer-to-peer car sharing program itself that results in injury to any person as a result of the
134134 107use of a shared vehicle through a peer-to-peer car sharing program; or
135135 108 (2) Limits the ability of the peer-to-peer car sharing program to, by contract, seek
136136 109indemnification from the shared vehicle owner or the shared vehicle driver for economic loss
137137 110sustained by the peer to-peer car sharing program resulting from a breach of the terms and
138138 111conditions of the car sharing program agreement. 7 of 12
139139 112 Section 4. At the time when a vehicle owner registers as a shared vehicle owner on a
140140 113peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a
141141 114shared vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer
142142 115car sharing program shall notify the shared vehicle owner that, if the shared vehicle has a lien
143143 116against it, the use of the shared vehicle through a peer-to-peer car sharing program, including use
144144 117without physical damage coverage, may violate the terms of the contract with the lienholder.
145145 118 Section 5. (a) An authorized insurer that writes motor vehicle liability insurance in the
146146 119State may exclude any and all coverage and the duty to defend or indemnify for any claim
147147 120afforded under a shared vehicle owner’s motor vehicle liability insurance policy, including but
148148 121not limited to:
149149 122 (1) liability coverage for bodily injury and property damage;
150150 123 (2) personal injury protection coverage as defined in section 34M of chapter 90;
151151 124 (3) uninsured and underinsured motorist coverage;
152152 125 (4) medical payments coverage;
153153 126 (5) comprehensive physical damage coverage; and
154154 127 (6) collision physical damage coverage
155155 128 (b) Nothing in this Article invalidates or limits an exclusion contained in a motor vehicle
156156 129liability insurance policy, including any insurance policy in use or approved for use that excludes
157157 130coverage for motor vehicles made available for rent, sharing, or hire or for any business use. 8 of 12
158158 131 (c) Nothing in this Article invalidates, limits or restricts an insurer’s ability under existing
159159 132law to underwrite any insurance policy. Nothing in this Article invalidates, limits or restricts an
160160 133insurer’s ability under existing law to cancel and non-renew policies.
161161 134 Section 6. A peer-to-peer car sharing program shall collect and verify records pertaining
162162 135to the use of a vehicle, including, but not limited to, times used, car sharing period pick up and
163163 136drop off locations, fees paid by the shared vehicle driver, and revenues received by the shared
164164 137vehicle owner and provide that information upon request to the shared vehicle owner, the shared
165165 138vehicle owner’s insurer, or the shared vehicle driver’s insurer to facilitate a claim coverage
166166 139investigation, settlement, negotiation, or litigation. The peer-to-peer car sharing program shall
167167 140retain the records for a time period not less than the applicable personal injury statute of
168168 141limitations.
169169 142 Section 7. A peer-to-peer car sharing program and a shared vehicle owner shall be
170170 143exempt from vicarious liability in accordance with 49 U.S.C. § 30106 and under any state or
171171 144local law that imposes liability solely based on vehicle ownership.
172172 145 Section 8. A motor vehicle insurer that defends or indemnifies a claim against a shared
173173 146vehicle that is excluded under the terms of its policy shall have the right to seek recovery against
174174 147the motor vehicle insurer of the peer-topeer car sharing program if the claim is: (1) made against
175175 148the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car
176176 149sharing period; and (2) excluded under the terms of its policy.
177177 150 Section 9. (a) Notwithstanding any other law, statute, rule or regulation to the contrary, a
178178 151peer-to-peer car sharing program shall have an insurable interest in a shared vehicle during the
179179 152car sharing period. 9 of 12
180180 153 (b) Nothing in this section creates liability on a Peer-to-Peer Car Sharing Program to
181181 154maintain the coverage mandated by Section 3 of this Chapter.
182182 155 (c) A peer–to–peer car sharing program may own and maintain as the named insured one
183183 156or more policies of motor vehicle liability insurance that provides coverage for:
184184 157 (1) liabilities assumed by the peer–to–peer car sharing program under a peer–to–peer car
185185 158sharing program agreement; or
186186 159 (2) any liability of the shared vehicle owner; or
187187 160 (3) damage or loss to the shared motor vehicle; or any liability of the shared vehicle
188188 161driver.
189189 162 Section 10. Each car sharing program agreement made in the State shall disclose to the
190190 163shared vehicle owner and the shared vehicle driver:
191191 164 (a) Any right of the peer-to-peer car sharing program to seek indemnification from the
192192 165shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer
193193 166car sharing program resulting from a breach of the terms and conditions of the car sharing
194194 167program agreement;
195195 168 (b) That a motor vehicle liability insurance policy issued to the shared vehicle owner for
196196 169the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification
197197 170for any claim asserted by the peer-to-peer car sharing program;
198198 171 (c) That the peer-to-peer car sharing program’s insurance coverage on the shared vehicle
199199 172owner and the shared vehicle driver is in effect only during each car sharing period and that, for 10 of 12
200200 173any use of the shared vehicle by the shared vehicle driver after the car sharing termination time,
201201 174the shared vehicle driver and the shared vehicle owner may not have insurance coverage;
202202 175 (d) The daily rate, fees, and if applicable, any insurance or protection package costs that
203203 176are charged to the shared vehicle owner or the shared vehicle driver.
204204 177 (e) That the shared vehicle owner’s motor vehicle liability insurance may not provide
205205 178coverage for a shared vehicle.
206206 179 (f) An emergency telephone number to personnel capable of fielding roadside assistance
207207 180and other customer service inquiries.
208208 181 (g) If there are conditions under which a shared vehicle driver must maintain a personal
209209 182automobile insurance policy with certain applicable coverage limits on a primary basis in order
210210 183to book a shared motor vehicle.
211211 184 Section 11. (a) A peer-to-peer car sharing program may not enter into a peer-to-peer car
212212 185sharing program agreement with a driver unless the driver who will operate the shared vehicle:
213213 186 (1) Holds a driver’s license issued under section 8 of chapter 90 that authorizes the driver
214214 187to operate vehicles of the class of the shared vehicle; or
215215 188 (2) Is a nonresident who:
216216 189 (i) Has a driver’s license issued by the state or country of the driver’s residence that
217217 190authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle;
218218 191and
219219 192 (ii) Is at least the same age as that required of a resident to drive; or 11 of 12
220220 193 (iii) Otherwise is specifically authorized by the Commonwealth of Massachusetts to drive
221221 194vehicles of the class of the shared vehicle.
222222 195 (b) A peer-to-peer car sharing program shall keep a record of:
223223 196 (1) The name and address of the shared vehicle driver;
224224 197 (2) The number of the driver’s license of the shared vehicle driver and each other person,
225225 198if any, who will operate the shared vehicle; and
226226 199 (3) The place of issuance of the driver’s license.
227227 200 Section 12. A peer-to-peer car sharing program shall have sole responsibility for any
228228 201equipment, such as a GPS system or other special equipment that is put in or on the vehicle to
229229 202monitor or facilitate the car sharing transaction, and shall agree to indemnify and hold harmless
230230 203the vehicle owner for any damage to or theft of such equipment during the sharing period not
231231 204caused by the vehicle owner. The peer-to-peer car sharing program has the right to seek
232232 205indemnity from the shared vehicle driver for any loss or damage to such equipment that occurs
233233 206during the sharing period.
234234 207 Section 13. (a) At the time when a vehicle owner registers as a shared vehicle owner on a
235235 208peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a
236236 209shared vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer
237237 210car sharing program shall:
238238 211 (1) Verify that the shared vehicle does not have any safety recalls on the vehicle for
239239 212which the repairs have not been made; and 12 of 12
240240 213 (2) Notify the shared vehicle owner of the requirements under subsection (b) of this
241241 214section.
242242 215 (b) (1) If the shared vehicle owner has received an actual notice of a safety recall on the
243243 216vehicle, a shared vehicle owner may not make a vehicle available as a shared vehicle on a peer-
244244 217to-peer car sharing program until the safety recall repair has been made.
245245 218 (2) If a shared vehicle owner receives an actual notice of a safety recall on a shared
246246 219vehicle while the shared vehicle is made available on the peer-to-peer car sharing program, the
247247 220shared vehicle owner shall remove the shared vehicle as available on the peer-to-peer car sharing
248248 221program, as soon as practicably possible after receiving the notice of the safety recall and until
249249 222the safety recall repair has been made.
250250 223 (3) If a shared vehicle owner receives an actual notice of a safety recall while the shared
251251 224vehicle is being used in the possession of a shared vehicle driver, as soon as practicably possible
252252 225after receiving the notice of the safety recall, the shared vehicle owner shall notify the peer-to-
253253 226peer car sharing program about the safety recall so that the shared vehicle owner may address the
254254 227safety recall repair.
255255 228 Section 14. The Insurance Commissioner shall have the authority to promulgate rules that
256256 229are not inconsistent with and necessary to administer and enforce the provisions of this Act.
257257 230 Section 15. This Act shall take effect on July 31, 2024.