Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3659 Compare Versions

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

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3389 FILED ON: 1/17/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 3659
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Michael J. Finn
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 :DATE ADDED:Michael J. Finn6th Hampden1/17/2025 1 of 12
16	16	HOUSE DOCKET, NO. 3389 FILED ON: 1/17/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 3659
18	18	By Representative Finn of West Springfield, a petition (accompanied by bill, House, No. 3659)
19	19	of Michael J. Finn relative to peer-to-peer car sharing. Transportation.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Fourth General Court
23	23	(2025-2026)
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 The General Laws, as appearing in the 2020 Official Edition, are hereby amended by
29	29	2inserting after chapter 90J the following chapter:-
30	30	3 CHAPTER 90K
31	31	4 PEER-TO-PEER CAR SHARING
32	32	5 Section 1. As used in this chapter, the following words shall, unless the context clearly
33	33	6requires otherwise, have the following meanings:-
34	34	7 “Peer-to-Peer Car Sharing”, the authorized use of a vehicle by an individual other than
35	35	8the vehicle’s owner through a peer-to-peer car sharing program. “Peer-to-Peer Car Sharing” does
36	36	9not mean the use of a rental vehicle provided by a rental company under a rental agreement, as
37	37	10those terms are defined in section 32E1/2 of chapter 90. 2 of 12
38	38	11 “Peer-to-Peer Car Sharing Program”, a business platform that connects vehicle owners
39	39	12with drivers to enable the sharing of vehicles for financial consideration. “Peer-to-Peer Car
40	40	13Sharing Program” does not mean rental company, as defined in section 32E1/2 of chapter 90.
41	41	14 “Car Sharing Program Agreement”, the terms and conditions applicable to a shared
42	42	15vehicle owner and a shared vehicle driver that govern the use of a shared vehicle through a peer-
43	43	16to-peer car sharing program. “Car Sharing Program Agreement” does not mean rental agreement,
44	44	17as defined in section 32E1/2 of chapter 90.
45	45	18 “Shared Vehicle”, a vehicle that is available for sharing through a peer-to-peer car
46	46	19sharing program. “Shared Vehicle” does not mean a rental vehicle provided by a rental company
47	47	20under a rental agreement, as those terms are defined in section 32E1/2 of chapter 90.
48	48	21 “Shared Vehicle Driver”, an individual who has been authorized to drive the shared
49	49	22vehicle by the shared vehicle owner under a car sharing program agreement. “Shared Vehicle
50	50	23Driver” does not mean authorized driver, as defined in section 32E1/2 of chapter 90.
51	51	24 “Shared Vehicle Owner”, the registered owner, or a person or entity designated by the
52	52	25registered owner, of a vehicle made available for sharing to shared vehicle drivers through a
53	53	26peer-to-peer car sharing program. “Shared Vehicle Owner” does not mean rental company, as
54	54	27defined in section 32E1/2 of chapter 90.
55	55	28 “Car Sharing Delivery Period”, means the period of time during which a shared vehicle is
56	56	29being delivered to the location of the car sharing start time, if applicable, as documented by the
57	57	30governing car sharing program agreement. 3 of 12
58	58	31 “Car Sharing Period”, the period of time that commences with the car sharing delivery
59	59	32period or, if there is no car sharing delivery period, that commences with the car sharing start
60	60	33time and in either case ends at the car sharing termination time.
61	61	34 “Car Sharing Start Time”, the time when the shared vehicle becomes subject to the
62	62	35control of the shared vehicle driver at or after the time the reservation of a shared vehicle is
63	63	36scheduled to begin as documented in the records of a peer-to-peer car sharing program.
64	64	37 “Car Sharing Termination Time”, the earliest of the following events:
65	65	38 (1) The expiration of the agreed upon period of time established for the use of a shared
66	66	39vehicle according to the terms of the car sharing program agreement if the shared vehicle is
67	67	40delivered to the location agreed upon in the car sharing program agreement;
68	68	41 (2) When the shared vehicle is returned to a location as alternatively agreed upon by the
69	69	42shared vehicle owner and shared vehicle driver as communicated through a peer-to-peer car
70	70	43sharing program, which alternatively agreed upon location shall be incorporated into the car
71	71	44sharing program agreement; or
72	72	45 (3) When the shared vehicle owner, or the shared vehicle owner’s authorized designee,
73	73	46takes possession and control of the shared vehicle.
74	74	47 Section 2. (a) A peer-to-peer car sharing program shall assume liability, except as
75	75	48provided in subsection (b), of a shared vehicle owner for bodily injury and property damage to
76	76	49third parties and uninsured motorist and personal injury protection losses during the car sharing
77	77	50period in the amounts stated in the car sharing program agreement, which amounts may not be
78	78	51less than those set forth in sections 34A to 34R, inclusive of chapter 90. 4 of 12
79	79	52 (b) Notwithstanding the definition of “car sharing termination time” as set forth in
80	80	53Section 1 of this chapter, the assumption of liability under subsection (a) does not apply to any
81	81	54shared vehicle owner when:
82	82	55 (1) the shared vehicle owner makes an intentional or fraudulent material
83	83	56misrepresentation or omission to the peer-to-peer car sharing program before the car sharing
84	84	57period in which the loss occurred; or
85	85	58 (2) the shared vehicle owner acts in concert with a shared vehicle driver who fails to
86	86	59return the shared vehicle pursuant to the terms of the car sharing program agreement.
87	87	60 (c) Notwithstanding the definition of “car sharing termination time” as set forth in
88	88	61Section 1 of this chapter, the assumption of liability under subsection (a) would apply to bodily
89	89	62injury, property damage, uninsured motorist and personal injury protection losses by damaged
90	90	63third parties required by sections 34A to 34N, inclusive of chapter 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 sections 34A to 34N, inclusive of chapter 90, and:
95	95	68 (1) Recognizes that the shared vehicle insured under the policy is made available and
96	96	69used through 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.
98	98	71 (e) The insurance described under subsection (d) may be satisfied by motor vehicle
99	99	72liability insurance maintained by: 5 of 12
100	100	73 (1) A shared vehicle owner;
101	101	74 (2) A shared vehicle driver;
102	102	75 (3) A peer-to-peer car sharing program; or
103	103	76 (4) Some combination of the shared vehicle owner, the shared vehicle driver, and the peer
104	104	77to-peer car sharing program.
105	105	78 (f) The insurance described in subsection (e) that is satisfying the insurance requirement
106	106	79of subsection (d) shall be primary during each car sharing period and in the event that a claim
107	107	80occurs in another state with minimum financial responsibility limits higher than those set forth in
108	108	81sections 34A to 34R, inclusive of chapter 90, during the car sharing period, the coverage
109	109	82maintained under subsection (e) shall satisfy the difference in minimum coverage amounts, up to
110	110	83the applicable policy limits.
111	111	84 (g) The insurer, insurers, or peer-to-peer car sharing program providing coverage under
112	112	85subsection (d) or (e) shall assume primary liability for a claim when:
113	113	86 (1) a dispute exists as to who was in control of the shared motor vehicle at the time of the
114	114	87loss and the peer-to-peer car sharing program does not have available, did not retain, or fails to
115	115	88provide the information required by Section 5 of this chapter; or
116	116	89 (2) a dispute exists as to whether the shared vehicle was returned to the alternatively
117	117	90agreed upon location as required under Section 1 of this chapter.
118	118	91 (h) If insurance maintained by a shared vehicle owner or shared vehicle driver in
119	119	92accordance with subsection (e) has lapsed or does not provide the required coverage, insurance
120	120	93maintained by a peer-to-peer car sharing program shall provide the coverage required by 6 of 12
121	121	94subsection (d) beginning with the first dollar of a claim and have the duty to defend such claim
122	122	95except under circumstances as set forth in subsection (b).
123	123	96 (i) Coverage under an automobile insurance policy maintained by the peer-to-peer car
124	124	97sharing program shall not be dependent on another automobile insurer first denying a claim nor
125	125	98shall another automobile insurance policy be required to first deny a claim.
126	126	99 (j) Nothing in this chapter:
127	127	100 (1) Limits the liability of the peer-to-peer car sharing program for any act or omission of
128	128	101the peer-to-peer car sharing program itself that results in injury to any person as a result of the
129	129	102use of a shared vehicle through a peer-to-peer car sharing program; or
130	130	103 (2) Limits the ability of the peer-to-peer car sharing program to, by contract, seek
131	131	104indemnification from the shared vehicle owner or the shared vehicle driver for economic loss
132	132	105sustained by the peer to-peer car sharing program resulting from a breach of the terms and
133	133	106conditions of the car sharing program agreement.
134	134	107 Section 3. At the time when a vehicle owner registers as a shared vehicle owner on a
135	135	108peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a
136	136	109shared vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer
137	137	110car sharing program shall notify the shared vehicle owner that, if the shared vehicle has a lien
138	138	111against it, the use of the shared vehicle through a peer-to-peer car sharing program, including use
139	139	112without physical damage coverage, may violate the terms of the contract with the lienholder.
140	140	113 Section 4. (a) An authorized insurer that writes motor vehicle liability insurance in the
141	141	114state may exclude any and all coverage and the duty to defend or indemnify for any claim 7 of 12
142	142	115afforded under a shared vehicle owner’s motor vehicle liability insurance policy for any loss or
143	143	116injury that occurs during a car sharing period, including but not limited to:
144	144	117 (1) liability coverage for bodily injury and property damage;
145	145	118 (2) personal injury protection coverage as defined in section 34M of chapter 90;
146	146	119 (3) uninsured and underinsured motorist coverage;
147	147	120 (4) medical payments coverage;
148	148	121 (5) comprehensive physical damage coverage; and
149	149	122 (6) collision physical damage coverage.
150	150	123 (b) Nothing in this chapter invalidates or limits an exclusion contained in a motor vehicle
151	151	124liability insurance policy, including any insurance policy in use or approved for use that excludes
152	152	125coverage for motor vehicles made available for rent, sharing, or hire or for any business use.
153	153	126 (c) Nothing in this chapter invalidates, limits, or restricts an insurer’s ability under
154	154	127existing law to underwrite any insurance policy. Nothing in this chapter invalidates, limits, or
155	155	128restricts an insurer’s ability under existing law to cancel and non-renew policies.
156	156	129 Section 5. A peer-to-peer car sharing program shall collect and verify records pertaining
157	157	130to the use of a vehicle, including but not limited to, times used, car sharing period pick up and
158	158	131drop off locations, fees paid by the shared vehicle driver, and revenues received by the shared
159	159	132vehicle owner and provide that information upon request to the shared vehicle owner, the shared
160	160	133vehicle owner’s insurer, or the shared vehicle driver’s insurer to facilitate a claim coverage
161	161	134investigation, settlement, negotiation, or litigation. The peer-to-peer car sharing program shall 8 of 12
162	162	135retain the records for a time period not less than the applicable personal injury statute of
163	163	136limitations.
164	164	137 Section 6. A peer-to-peer car sharing program and a shared vehicle owner shall be
165	165	138exempt from vicarious liability, consistent with 49 U.S.C. § 30106, under any state or local law
166	166	139that imposes liability solely based on vehicle ownership.
167	167	140 Section 7. A motor vehicle insurer that defends or indemnifies a claim against a shared
168	168	141vehicle that is excluded under the terms of its policy shall have the right to seek recovery against
169	169	142the motor vehicle insurer of the peer-to-peer car sharing program if the claim is: (1) made against
170	170	143the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car
171	171	144sharing period; and (2) excluded under the terms of its policy.
172	172	145 Section 8. (a) Notwithstanding any other law, statute, rule, or regulation to the contrary, a
173	173	146peer-to-peer car sharing program shall have an insurable interest in a shared vehicle during the
174	174	147car sharing period.
175	175	148 (b) Nothing in this section creates liability on a peer-to-peer car sharing program to
176	176	149maintain the coverage mandated by Section 2 of this chapter.
177	177	150 (c) A peer-to-peer car sharing program may own and maintain as the named insured one
178	178	151or more policies of motor vehicle liability insurance that provides coverage for:
179	179	152 (1) liabilities assumed by the peer-to-peer car sharing program under a car sharing
180	180	153program agreement;
181	181	154 (2) any liability of the shared vehicle owner;
182	182	155 (3) damage or loss to the shared motor vehicle; or 9 of 12
183	183	156 (4) any liability of the shared vehicle driver.
184	184	157 Section 9. Each car sharing program agreement made in the state shall disclose to the
185	185	158shared vehicle owner and the shared vehicle driver:
186	186	159 (a) Any right of the peer-to-peer car sharing program to seek indemnification from the
187	187	160shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer
188	188	161car sharing program resulting from a breach of the terms and conditions of the car sharing
189	189	162program agreement.
190	190	163 (b) That a motor vehicle liability insurance policy issued to the shared vehicle owner for
191	191	164the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification
192	192	165for any claim asserted by the peer-to-peer car sharing program.
193	193	166 (c) That the peer-to-peer car sharing program’s insurance coverage on the shared vehicle
194	194	167owner and the shared vehicle driver is in effect only during each car sharing period and that, for
195	195	168any use of the shared vehicle by the shared vehicle driver after the car sharing termination time,
196	196	169the shared vehicle driver and the shared vehicle owner may not have insurance coverage.
197	197	170 (d) The daily rate, fees, and, if applicable, any insurance or protection package costs that
198	198	171are charged to the shared vehicle owner or the shared vehicle driver.
199	199	172 (e) That the shared vehicle owner’s motor vehicle liability insurance may not provide
200	200	173coverage for a shared vehicle.
201	201	174 (f) An emergency telephone number to personnel capable of fielding roadside assistance
202	202	175and other customer service inquiries. 10 of 12
203	203	176 (g) If there are conditions under which a shared vehicle driver must maintain a personal
204	204	177automobile insurance policy with certain applicable coverage limits on a primary basis in order
205	205	178to book a shared motor vehicle.
206	206	179 Section 10. (a) A peer-to-peer car sharing program may not enter into a car sharing
207	207	180program agreement with a driver unless the driver who will operate the shared vehicle:
208	208	181 (1) Holds a driver’s license issued under section 8 of chapter 90 that authorizes the driver
209	209	182to operate vehicles of the class of the shared vehicle;
210	210	183 (2) Is a nonresident who:
211	211	184 (i) Has a driver’s license issued by the state or country of the driver’s residence that
212	212	185authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle;
213	213	186and
214	214	187 (ii) Is at least the same age as that required of a resident to drive; or
215	215	188 (3) Otherwise is specifically authorized by the Commonwealth of Massachusetts to drive
216	216	189vehicles of the class of the shared vehicle.
217	217	190 (b) A peer-to-peer car sharing program shall keep a record of:
218	218	191 (1) The name and address of the shared vehicle driver;
219	219	192 (2) The number of the driver’s license of the shared vehicle driver and each other person,
220	220	193if any, who will operate the shared vehicle; and
221	221	194 (3) The place of issuance of the driver’s license. 11 of 12
222	222	195 Section 11. A peer-to-peer car sharing program shall have sole responsibility for any
223	223	196equipment, such as a GPS system or other special equipment, that is put in or on the vehicle to
224	224	197monitor or facilitate the car sharing transaction, and shall agree to indemnify and hold harmless
225	225	198the vehicle owner for any damage to or theft of such equipment during the car sharing period not
226	226	199caused by the vehicle owner. The peer-to-peer car sharing program has the right to seek
227	227	200indemnity from the shared vehicle driver for any loss or damage to such equipment that occurs
228	228	201during the car sharing period.
229	229	202 Section 12. (a) At the time when a vehicle owner registers as a shared vehicle owner on a
230	230	203peer-to-peer car sharing program and prior to the time when the shared vehicle owner makes a
231	231	204shared
232	232	205 vehicle available for car sharing on the peer-to-peer car sharing program, the peer-to-peer
233	233	206car sharing program shall:
234	234	207 (1) Verify that the shared vehicle does not have any safety recalls on the vehicle for
235	235	208which the repairs have not been made; and
236	236	209 (2) Notify the shared vehicle owner of the requirements under subsection (b).
237	237	210 (b) (1) If the shared vehicle owner has received an actual notice of a safety recall on the
238	238	211vehicle, a shared vehicle owner may not make a vehicle available as a shared vehicle on a peer-
239	239	212to-peer car sharing program until the safety recall repair has been made.
240	240	213 (2) If a shared vehicle owner receives an actual notice of a safety recall on a shared
241	241	214vehicle while the shared vehicle is made available on the peer-to-peer car sharing program, the
242	242	215shared vehicle owner shall remove the shared vehicle as available on the peer-to-peer car sharing 12 of 12
243	243	216program, as soon as practicably possible after receiving the notice of the safety recall and until
244	244	217the safety recall repair has been made.
245	245	218 (3) If a shared vehicle owner receives an actual notice of a safety recall while the shared
246	246	219vehicle is being used in the possession of a shared vehicle driver, as soon as practicably possible
247	247	220after receiving the notice of the safety recall, the shared vehicle owner shall notify the peer-to-
248	248	221peer car sharing program about the safety recall so that the shared vehicle owner may address the
249	249	222safety recall repair.
250	250	223 Section 13. The Insurance Commissioner shall have the authority to promulgate rules that
251	251	224are not inconsistent with and necessary to administer and enforce the provisions of this Act.
252	252	225 Section 14. This Act shall take effect on July 31, 2026.