Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S2236 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	SENATE DOCKET, NO. 2112 FILED ON: 1/20/2023
3	3	SENATE . . . . . . . . . . . . . . No. 2236
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Barry R. Finegold
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to peer-to-peer car sharing.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Barry R. FinegoldSecond Essex and Middlesex 1 of 13
16	16	SENATE DOCKET, NO. 2112 FILED ON: 1/20/2023
17	17	SENATE . . . . . . . . . . . . . . No. 2236
18	18	By Mr. Finegold, a petition (accompanied by bill, Senate, No. 2236) of Barry R. Finegold for
19	19	legislation relative to peer-to-peer car sharing. Transportation.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Third General Court
23	23	(2023-2024)
24	24	_______________
25	25	An Act relative to peer-to-peer car sharing.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1. The General Laws, as appearing in the 2022 Official Edition, are hereby
29	29	2amended by inserting after chapter 90J the following chapter:-
30	30	3 CHAPTER 90K. Personal Vehicle Sharing Companies
31	31	4 Section 1. Definitions
32	32	5 As used in this chapter, the following words shall have the following meanings unless the
33	33	6context clearly requires otherwise:-
34	34	7 “Car sharing delivery period”, the period of time during which a shared vehicle is being
35	35	8delivered to the location of the car sharing start time, if applicable, as documented by the
36	36	9governing car sharing program agreement. 2 of 13
37	37	10 “Car sharing period”, the period of time that commences with the car sharing delivery
38	38	11period or, if there is no car sharing delivery period, that commences with the car sharing start
39	39	12time and in either case ends at the car sharing termination time.
40	40	13 “Car sharing program agreement”, the terms and conditions applicable to a shared vehicle
41	41	14owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-to-peer
42	42	15car sharing program; provided, however, that a car sharing program agreement shall not include
43	43	16a rental car agreement, as defined in section 32E½ of chapter 90.
44	44	17 “Car sharing start time”, the time when the shared vehicle becomes subject to the control
45	45	18of the shared vehicle driver at or after the time the reservation of a shared vehicle is scheduled to
46	46	19begin as documented in the records of a peer-to-peer car sharing program.
47	47	20 “Car sharing termination time”, the earliest of the following events:
48	48	21 (1) the expiration of the agreed upon period of time established for the use of a shared
49	49	22vehicle according to the terms of the car sharing program agreement if the shared vehicle is
50	50	23delivered to a location agreed upon in a car sharing program agreement;
51	51	24 (2) when the shared vehicle is returned to a location as alternatively agreed upon by the
52	52	25shared vehicle owner and shared vehicle driver as communicated through a peer-to-peer car
53	53	26sharing program; provided, however, that the alternatively agreed upon location shall be
54	54	27incorporated into the car sharing program agreement; or
55	55	28 (3) when the shared vehicle owner or the shared vehicle owner’s designee takes
56	56	29possession and control of the shared vehicle. 3 of 13
57	57	30 “Peer-to-peer car sharing”, the authorized use of a vehicle by an individual other than the
58	58	31vehicle’s owner through a peer-to-peer car sharing program; provided, however, that peer-to-
59	59	32peer car sharing does not include a rental car or rental activity as defined in section 32E½ of
60	60	33chapter 90.
61	61	34 “Peer-to-peer car sharing program”, a business platform that connect vehicle owners with
62	62	35licensed drivers to enable the sharing of vehicles for financial consideration; provided, however,
63	63	36that a peer-to-peer car sharing program does not include a rental car company as defined in
64	64	37section 32E½ of chapter 90.
65	65	38 “Shared vehicle”, a vehicle that is available for sharing through a peer-to-peer car sharing
66	66	39program; provided, however, that a shared vehicle does not include a rental car or rental vehicle
67	67	40as defined in section 32E½ of chapter 90.
68	68	41 “Shared vehicle driver”, an individual who has been authorized to drive the shared
69	69	42vehicle by the shared vehicle owner under a car sharing program agreement.
70	70	43 “Shared vehicle owner”, the registered owner, or a person or entity designated by the
71	71	44registered owner, of a vehicle made available for sharing to shared vehicle drivers through a
72	72	45peer-to-peer car sharing program.
73	73	46 Section 2. Assumption of Liability
74	74	47 (a) A peer-to-peer car sharing program shall assume liability, except as provided in
75	75	48subsection (b) of this section, from a shared vehicle owner for bodily injury, property damage to
76	76	49third parties, uninsured and underinsured motorists or personal injury protection losses during 4 of 13
77	77	50the car sharing period in an amount stated in the car sharing program agreement, which amount
78	78	51may not be less than those set forth in sections 34A to 34R, inclusive, of chapter 90.
79	79	52 (b) Notwithstanding the definition of “car sharing termination time” as set forth in section
80	80	531 of this chapter, the assumption of liability under subsection (a) of this section shall not apply to
81	81	54any shared vehicle owner if a shared vehicle owner:
82	82	55 (1) makes an intentional or fraudulent material misrepresentation or omission to the peer-
83	83	56to-peer car sharing program before the car sharing period in which the loss occurred; or
84	84	57 (2) acts in concert with a shared vehicle driver who fails to return the shared vehicle
85	85	58pursuant to the terms of the car sharing program agreement.
86	86	59 (c) Notwithstanding the definition of “car sharing termination time” as set forth in section
87	87	601 of this chapter, the assumption of liability under subsection (a) of this section shall apply to
88	88	61bodily injury, property damage, uninsured and underinsured motorists or personal injury
89	89	62protection losses caused to damaged third parties required by section 34A to 34N, inclusive of
90	90	63Chapter 90.
91	91	64 (d) A peer-to-peer car sharing program shall ensure that, during each car sharing period,
92	92	65the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability
93	93	66insurance policy that provides insurance coverage in amounts no less than the minimum amounts
94	94	67set forth in section 34M of Chapter 90 and:
95	95	68 (1) recognizes that the shared vehicle insured under the policy is made available and used
96	96	69through a peer to-peer car sharing program; or
97	97	70 (2) does not exclude use of a shared vehicle by a shared vehicle driver. 5 of 13
98	98	71 (e) The insurance described under subsection (d) may be satisfied by motor vehicle
99	99	72liability insurance maintained by any of the following, alone or in combination:
100	100	73 (1) A shared vehicle owner;
101	101	74 (2) A shared vehicle driver; or
102	102	75 (3) A peer-to-peer car sharing program.
103	103	76 (f) The insurance required pursuant to subsection (d) shall be primary during each car
104	104	77sharing period and, in the event that a claim occurs in another state with minimum financial
105	105	78responsibility limits higher than those set forth in sections 34A to 34R, inclusive, of chapter 90
106	106	79during the car sharing period, the coverage maintained pursuant to subsection (d) shall satisfy the
107	107	80difference in minimum coverage amounts, up to the applicable policy limits.
108	108	81 (g) The insurer, insurers or peer-to-peer car sharing program providing coverage under
109	109	82subsection (d) shall assume primary liability for a claim when:
110	110	83 (1) a dispute exists as to who was in control of the shared motor vehicle at the time of the
111	111	84loss and the peer-to-peer car sharing program does not have available, did not retain or fails to
112	112	85provide any applicable information as required by section 5 of this chapter; or
113	113	86 (2) a dispute exists as to whether the shared vehicle was returned to the alternatively
114	114	87agreed upon location incorporated into the car sharing program agreement, provided that any
115	115	88information retained pursuant to section 5 of this chapter is insufficient to resolve said dispute.
116	116	89 (h) If insurance maintained by a shared vehicle owner or shared vehicle driver in
117	117	90accordance with subsection (e) has lapsed or does not provide the required coverage, insurance
118	118	91maintained by a peer-to peer car sharing program shall provide the coverage required by 6 of 13
119	119	92subsection (d) beginning with the first dollar of a claim and have the duty to defend such claim
120	120	93except under circumstances as set forth in subsection (b).
121	121	94 (i) Coverage under an automobile insurance policy maintained by the peer-to-peer car
122	122	95sharing program shall not be dependent on another automobile insurer first denying a claim, nor
123	123	96shall another automobile insurance policy be required to first deny a claim.
124	124	97 (j) Nothing in this section shall be construed to:
125	125	98 (1) limit the liability of the peer-to-peer car sharing program for any act or omission of
126	126	99the peer-to-peer car sharing program itself that results in injury to any person as a result of the
127	127	100use of a shared vehicle through a peer-to-peer car sharing program; or
128	128	101 (2) limit the ability of the peer-to-peer car sharing program to, by contract, seek
129	129	102indemnification from the shared vehicle owner or the shared vehicle driver for economic loss
130	130	103sustained by the peer-to-peer car sharing program resulting from a breach of the terms and
131	131	104conditions of the car sharing program agreement.
132	132	105 Section 3. Notice to Shared Vehicle Owners Regarding Liens
133	133	106 At the time when a vehicle owner registers as a shared vehicle owner on a peer-to-peer
134	134	107car sharing program and prior to the time when the shared vehicle owner makes a shared vehicle
135	135	108available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing
136	136	109program shall provide clear and conspicuous notice to the shared vehicle owner that, if the
137	137	110shared vehicle has a lien against it, the use of the shared vehicle through a peer-to-peer car
138	138	111sharing program, including use without physical damage coverage, may violate the terms of the
139	139	112contract with the lienholder. 7 of 13
140	140	113 Section 4. Rights of Authorized Insurers
141	141	114 (a) An authorized insurer that writes motor vehicle liability insurance in this
142	142	115commonwealth may exclude any and all coverage and the duty to defend or indemnify for any
143	143	116claim afforded under a shared vehicle owner’s motor vehicle liability insurance policy, including
144	144	117but not limited to:
145	145	118 (1) liability coverage for bodily injury and property damage;
146	146	119 (2) personal injury protection coverage as defined in section 34M of chapter 90;
147	147	120 (3) uninsured and underinsured motorist coverage;
148	148	121 (4) medical payments coverage;
149	149	122 (5) comprehensive physical damage coverage; and
150	150	123 (6) collision physical damage coverage.
151	151	124 (b) Nothing in this chapter shall be construed to:
152	152	125 (1) invalidate or limit an exclusion contained in a motor vehicle liability insurance policy,
153	153	126including any insurance policy in use or approved for use that excludes coverage for motor
154	154	127vehicles made available for rent, sharing or hire or for any business use, except as provided for
155	155	128under existing law;
156	156	129 (2) invalidate, limit or restrict an insurer’s ability under existing law to underwrite any
157	157	130insurance policy; or 8 of 13
158	158	131 (3) invalidate, limit or restrict an insurer’s ability under existing law to cancel or non-
159	159	132renew policies.
160	160	133 Section 5. Retention of Records
161	161	134 (a) A peer-to-peer car sharing program shall collect and verify records pertaining to the
162	162	135use of a vehicle, including, but not limited to: (1) times used; (2) car sharing period pick up and
163	163	136drop off locations; (3) fees paid by the shared vehicle driver; and (4) revenues received by the
164	164	137shared vehicle owner.
165	165	138 (b) A peer-to-peer car sharing program shall provide that information upon request to: (1)
166	166	139the shared vehicle owner; (2) the shared vehicle owner’s insurer; (3) or the shared vehicle
167	167	140driver’s insurer to facilitate a claim coverage investigation, settlement, negotiation, or litigation.
168	168	141 (c) The peer-to-peer car sharing program shall retain the records for a time period not less
169	169	142than the applicable personal injury statute of limitations.
170	170	143 Section 6. Vicarious Liability
171	171	144 A peer-to-peer car sharing program and a shared vehicle owner shall be exempt from
172	172	145vicarious liability in accordance with 49 U.S.C. § 30106 and under any state or local law that
173	173	146imposes liability solely based on vehicle ownership.
174	174	147 Section 7. Recovery of Excluded Damages
175	175	148 A motor vehicle insurer that defends or indemnifies a claim against a shared vehicle that
176	176	149is excluded under the terms of its policy shall have the right to seek recovery against the motor
177	177	150vehicle insurer of the peer-to peer car sharing program if the claim is made against the shared 9 of 13
178	178	151vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing
179	179	152period.
180	180	153 Section 8. Peer-to-Peer Car Sharing Program Insurable Interest
181	181	154 (a) Notwithstanding any other law, statute, rule or regulation to the contrary, a peer-to-
182	182	155peer car sharing program shall have an insurable interest in a shared vehicle during the car
183	183	156sharing period.
184	184	157 (b) Nothing in this section shall be construed to impose liability on a peer-to-peer car
185	185	158sharing program to maintain the coverage mandated by section 2 of this chapter, provided that
186	186	159the applicable coverage is maintained individually or in conjunction pursuant to subsections (d)
187	187	160and (e) of said section 2.
188	188	161 (c) A peer-to-peer car sharing program may own and maintain as the named insured one
189	189	162or more policies of motor vehicle liability insurance that provide coverage for:
190	190	163 (1) liabilities assumed by the peer-to-peer car sharing program under a car sharing
191	191	164program agreement;
192	192	165 (2) any liability of the shared vehicle owner;
193	193	166 (3) damage or loss to the shared motor vehicle; or
194	194	167 (4) any liability of the shared vehicle driver.
195	195	168 Section 9. Notice to Shared Vehicle Owners and Drivers 10 of 13
196	196	169 At the time of each car sharing program agreement made in this commonwealth, the peer-
197	197	170to-peer car sharing program shall disclose to both the shared vehicle owner and the shared
198	198	171vehicle driver in a clear and conspicuous notice:
199	199	172 (1) any right of the peer-to-peer car sharing program to seek indemnification from the
200	200	173shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer
201	201	174car sharing program resulting from a breach of the terms and conditions of the car sharing
202	202	175program agreement;
203	203	176 (2) that a motor vehicle liability insurance policy issued to the shared vehicle owner for
204	204	177the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification
205	205	178for any claim asserted by the peer-to-peer car sharing program;
206	206	179 (3) that the peer-to-peer car sharing program’s insurance coverage on the shared vehicle
207	207	180owner and the shared vehicle driver is in effect only during each car sharing period and that, for
208	208	181any use of the shared vehicle by the shared vehicle driver after the car sharing termination time,
209	209	182the shared vehicle driver and the shared vehicle owner may not have insurance coverage;
210	210	183 (4) the daily rate, fees and, if applicable, any insurance or protection package costs that
211	211	184are charged to the shared vehicle owner or the shared vehicle driver;
212	212	185 (5) that the shared vehicle owner’s motor vehicle liability insurance may not provide
213	213	186coverage for a shared vehicle;
214	214	187 (6) an emergency telephone number to personnel capable of fielding roadside assistance
215	215	188and other customer service inquiries; and 11 of 13
216	216	189 (7) if there are conditions under which a shared vehicle driver must maintain a personal
217	217	190automobile insurance policy with certain applicable coverage limits on a primary basis in order
218	218	191to book a shared motor vehicle.
219	219	192 Section 10. Licensing of Shared Vehicle Drivers
220	220	193 (a) A peer-to-peer car sharing program shall not enter into a car sharing program
221	221	194agreement with a driver unless the driver who will operate the shared vehicle:
222	222	195 (1) holds a valid driver’s license issued under section 8 of chapter 90 which authorizes
223	223	196the driver to operate vehicles of the class of the shared vehicle; or
224	224	197 (2) is a nonresident of this commonwealth who:
225	225	198 (i) is at least the same age as that required of a resident of this commonwealth to driver
226	226	199and has a driver’s license issued by the state or country of the driver’s residence that authorizes
227	227	200the driver in that state or country to drive vehicles of the class of the shared vehicle; or
228	228	201 (ii) otherwise is specifically authorized by this commonwealth to drive vehicles of the
229	229	202class of the shared vehicle.
230	230	203 (b) A peer-to-peer car sharing program shall keep a record of:
231	231	204 (1) the name and address of the shared vehicle driver;
232	232	205 (2) the number of the driver’s license of the shared vehicle driver and each other person,
233	233	206if any, who will operate the shared vehicle; and
234	234	207 (3) the place of issuance of the driver’s license. 12 of 13
235	235	208 (c) A peer-to-peer car sharing program maintaining records pursuant to subsection (b)
236	236	209shall take reasonable precautions to ensure the security and privacy of personally identifiable
237	237	210information related to a shared vehicle owner or a shared vehicle driver.
238	238	211 Section 11. Peer-to-Peer Car Sharing Program Equipment
239	239	212 A peer-to-peer car sharing program shall have sole responsibility for any equipment, such
240	240	213as a GPS system or other special equipment that is put in or on the vehicle to monitor or facilitate
241	241	214the car sharing transaction pursuant to a car sharing program agreement, and shall agree to
242	242	215indemnify and hold harmless the shared vehicle owner for any damage to or theft of such
243	243	216equipment during the sharing period not caused by the shared vehicle owner. The peer-to-peer
244	244	217car sharing program has the right to seek indemnity from the shared vehicle driver for any loss or
245	245	218damage to such equipment that occurs during the sharing period.
246	246	219 Section 12. Shared Vehicle Safety Recalls
247	247	220 (a) At the time when a vehicle owner registers as a shared vehicle owner with a peer-to-
248	248	221peer car sharing program and prior to the time when the shared vehicle owner makes a shared
249	249	222vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer car
250	250	223sharing program shall:
251	251	224 (1) verify that the shared vehicle does not have any safety recalls on the vehicle for which
252	252	225the repairs have not been made; and
253	253	226 (2) notify the shared vehicle owner of the requirements under subsection (b) of this
254	254	227section. 13 of 13
255	255	228 (b) (1) If the shared vehicle owner has received an actual notice of a safety recall on the
256	256	229vehicle, a shared vehicle owner shall not make a vehicle available as a shared vehicle with a
257	257	230peer-to-peer car sharing program until the safety recall repair has been made.
258	258	231 (2) If a shared vehicle owner receives an actual notice of a safety recall on a shared
259	259	232vehicle while the shared vehicle is made available on the peer-to-peer car sharing program, the
260	260	233shared vehicle owner shall remove the shared vehicle as available on the peer-to-peer car sharing
261	261	234program as soon as practicably possible after receiving the notice of the safety recall and until
262	262	235the safety recall repair has been made.
263	263	236 (3) If a shared vehicle owner receives an actual notice of a safety recall while the shared
264	264	237vehicle is being used in the possession of a shared vehicle driver, the shared vehicle owner shall
265	265	238notify the peer-to-peer car sharing program about the safety recall as soon as practicably possible
266	266	239so that the shared vehicle owner may address the safety recall repair.
267	267	240 Section 13. Additional Regulations & Limitations
268	268	241 (a) The commissioner of insurance shall have the authority to promulgate rules that are
269	269	242not inconsistent with and necessary to administer and enforce the provisions of this chapter.
270	270	243 (b) This chapter is intended to govern the intersection of peer-to-peer car services and the
271	271	244business of insurance as regulated in this commonwealth. Nothing in this chapter shall be
272	272	245construed to extend beyond the regulation of insurance or have any implications for other
273	273	246provisions of the General Laws, including but not limited to, those related to motor vehicle
274	274	247regulation, airport regulation, or taxation.
275	275	248 SECTION 2. Section 1 shall take effect 18 months after the passage of this act.