Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2650 Compare Versions

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

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to insurance; establishing a peer-to-peer car sharing program; amending
3	3	1.3 Minnesota Statutes 2024, sections 72A.125, subdivision 1; 297A.64, subdivision
4	4	1.4 4; proposing coding for new law in Minnesota Statutes, chapter 65B; repealing
5	5	1.5 Minnesota Statutes 2024, section 65B.49, subdivision 5a.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. [65B.90] SHORT TITLE.
8	8	1.8 Sections 65B.91 to 65B.95 may be cited as the "Peer-to-Peer Car Sharing Program Act."
9	9	1.9 Sec. 2. [65B.91] DEFINITIONS.
10	10	1.10 Subdivision 1.Application of definitions.Except as otherwise provided, the definitions
11	11	1.11in this section apply to sections 65B.91 to 65B.95.
12	12	1.12 Subd. 2.Car sharing delivery period."Car sharing delivery period" means the period
13	13	1.13of time during which a shared motor vehicle is being delivered to the location of the car
14	14	1.14sharing start time, if applicable, as documented by the governing car sharing program
15	15	1.15agreement.
16	16	1.16 Subd. 3.Car sharing period."Car sharing period" means the period of time that: (1)
17	17	1.17commences with the car sharing delivery period or, if there is no car sharing delivery period,
18	18	1.18that commences with the car sharing start time; and (2) ends at the car sharing termination
19	19	1.19time.
20	20	1.20 Subd. 4.Car sharing program agreement."Car sharing program agreement" means
21	21	1.21the terms and conditions applicable to a shared motor vehicle owner and a shared motor
22	22	1.22vehicle driver that govern the use of a shared motor vehicle through a peer-to-peer car
23	23	1Sec. 2.
24	24	25-00561 as introduced01/14/25 REVISOR RSI/NB
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 2650NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: SEEBERGER, Rasmusson, Klein and Duckworth)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading03/17/2025
31	31	Referred to Commerce and Consumer Protection 2.1sharing program. A car sharing program agreement is not a rental or lease contract, as
32	32	2.2defined in section 169.7995. A car sharing program agreement is not an agreement for lease
33	33	2.3or rental within the meaning of section 297A.64.
34	34	2.4 Subd. 5.Car sharing start time."Car sharing start time" means the time when the
35	35	2.5shared motor vehicle becomes subject to the control of the shared motor vehicle driver at
36	36	2.6or after the time a shared motor vehicle reservation is scheduled to begin, as documented
37	37	2.7in the peer-to-peer car sharing program records.
38	38	2.8 Subd. 6.Car sharing termination time."Car sharing termination time" means the
39	39	2.9earliest of the following events:
40	40	2.10 (1) the expiration of the agreed upon time established for the shared motor vehicle use
41	41	2.11under the terms of the car sharing program agreement, if the shared vehicle is delivered to
42	42	2.12the location agreed upon in the car sharing program agreement;
43	43	2.13 (2) when the shared vehicle is returned to a location alternatively agreed upon by the
44	44	2.14shared motor vehicle owner and shared motor vehicle driver, communicated through a
45	45	2.15peer-to-peer car sharing program and incorporated into the car sharing program agreement;
46	46	2.16or
47	47	2.17 (3) when the shared motor vehicle owner or the shared motor vehicle owner's authorized
48	48	2.18designee takes possession and control of the shared motor vehicle.
49	49	2.19 Subd. 7.Peer-to-peer car sharing."Peer-to-peer car sharing" means the authorized use
50	50	2.20of a motor vehicle by an individual other than the motor vehicle's owner through a
51	51	2.21peer-to-peer car sharing program. Peer-to-peer car sharing is not a lease or rental in Minnesota
52	52	2.22for not more than 28 days of a passenger automobile as used in section 297A.64, subdivision
53	53	2.231. Peer-to-peer car sharing is not a lease or rental in Minnesota for not more than 28 days,
54	54	2.24within the meaning of section 297A.64, subdivision 1, of a passenger automobile as defined
55	55	2.25in section 168.002, subdivision 24; a van as defined in section 168.002, subdivision 40; or
56	56	2.26a pickup truck as defined in section 168.002, subdivision 26.
57	57	2.27 Subd. 8.Peer-to-peer car sharing program."Peer-to-peer car sharing program" means
58	58	2.28a business platform that connects motor vehicle owners with drivers to enable the motor
59	59	2.29vehicle sharing for financial consideration. A peer-to-peer car sharing program is not an
60	60	2.30auto rental company as defined in section 72A.125, subdivision 1. A peer-to-peer car sharing
61	61	2.31program is not an entity engaged in lease or rental in Minnesota for not more than 28 days,
62	62	2.32within the meaning of section 297A.64, subdivision 1, of a passenger automobile as defined
63	63	2.33in section 168.002, subdivision 24; a van as defined in section 168.002, subdivision 40; or
64	64	2.34a pickup truck as defined in section 168.002, subdivision 26.
65	65	2Sec. 2.
66	66	25-00561 as introduced01/14/25 REVISOR RSI/NB 3.1 Subd. 9.Shared motor vehicle."Shared motor vehicle" means a motor vehicle that is
67	67	3.2available for sharing through a peer-to-peer car sharing program. A shared motor vehicle
68	68	3.3is not a lease or rental in Minnesota for not more than 28 days, within the meaning of section
69	69	3.4297A.64, subdivision 1, of a passenger automobile as defined in section 168.002, subdivision
70	70	3.524; a van as defined in section 168.002, subdivision 40; or a pickup truck as defined in
71	71	3.6section 168.002, subdivision 26.
72	72	3.7 Subd. 10.Shared motor vehicle driver."Shared motor vehicle driver" means an
73	73	3.8individual authorized to drive the shared motor vehicle by the shared motor vehicle owner
74	74	3.9under a car sharing program agreement. Shared motor vehicle driver does not mean a person
75	75	3.10who rents or leases a motor vehicle in Minnesota for a time period of less than 180 days,
76	76	3.11as used in section 169.7995, subdivision 1.
77	77	3.12 Subd. 11.Shared motor vehicle owner."Shared motor vehicle owner" means the
78	78	3.13registered owner, or a person or entity designated by the registered owner, of a motor vehicle
79	79	3.14made available for sharing with shared motor vehicle drivers through a peer-to-peer car
80	80	3.15sharing program. A shared motor vehicle owner is not an auto rental company as defined
81	81	3.16in section 72A.125, subdivision 1. A shared motor vehicle owner is not an automobile rental
82	82	3.17agency as used in section 368.01, subdivision 12. A shared motor vehicle owner is not an
83	83	3.18entity engaged in lease or rental in Minnesota for not more than 28 days, within the meaning
84	84	3.19of section 297A.64, subdivision 1, of a passenger automobile as defined in section 168.002,
85	85	3.20subdivision 24; a van as defined in section 168.002, subdivision 40; or a pickup truck as
86	86	3.21defined in section 168.002, subdivision 26.
87	87	3.22 Sec. 3. [65B.92] INSURANCE.
88	88	3.23 Subdivision 1.Insurance coverage during car sharing period.(a) Except as provided
89	89	3.24in paragraph (b), a peer-to-peer car sharing program assumes liability of a shared motor
90	90	3.25vehicle owner for: (1) bodily injury or property damage to a third party, uninsured motorist,
91	91	3.26or underinsured motorist; or (2) personal injury protection losses. The assumption of liability
92	92	3.27under this subdivision occurs only during the car sharing period and provides coverage in
93	93	3.28the amount stated in the peer-to-peer car sharing program agreement. The amount must not
94	94	3.29be less than the amount required under section 65B.49, subdivision 3.
95	95	3.30 (b) Notwithstanding the definition of car sharing termination time under section 65B.91,
96	96	3.31subdivision 6, the assumption of liability under paragraph (a) does not apply to a shared
97	97	3.32motor vehicle owner when:
98	98	3Sec. 3.
99	99	25-00561 as introduced01/14/25 REVISOR RSI/NB 4.1 (1) a shared motor vehicle owner makes an intentional or fraudulent material
100	100	4.2misrepresentation or omission to the peer-to-peer car sharing program before the car sharing
101	101	4.3period during which the loss occurred; or
102	102	4.4 (2) the shared motor vehicle owner acts in concert with a shared motor vehicle driver
103	103	4.5who fails to return the shared motor vehicle pursuant to the terms of the car sharing program
104	104	4.6agreement.
105	105	4.7 (c) Notwithstanding the definition of car sharing termination time under section 65B.91,
106	106	4.8subdivision 6, the assumption of liability under paragraph (a) applies to bodily injury,
107	107	4.9property damage, uninsured and underinsured motorists, or personal injury protection losses
108	108	4.10by damaged third parties, as required under section 65B.49, subdivision 3.
109	109	4.11 (d) A peer-to-peer car sharing program must ensure that during each car sharing period
110	110	4.12the shared motor vehicle owner and the shared motor vehicle driver are insured under a
111	111	4.13motor vehicle liability insurance policy that provides insurance coverage in amounts no less
112	112	4.14than the minimum amounts required under section 65B.49, subdivision 3, and that:
113	113	4.15 (1) recognizes the shared motor vehicle insured under the policy is made available and
114	114	4.16used through a peer-to-peer car sharing program; or
115	115	4.17 (2) does not exclude use of a shared motor vehicle by a shared motor vehicle driver.
116	116	4.18 (e) The insurance described under paragraph (d) may be satisfied by motor vehicle
117	117	4.19liability insurance maintained by:
118	118	4.20 (1) a shared motor vehicle owner;
119	119	4.21 (2) a shared motor vehicle driver;
120	120	4.22 (3) a peer-to-peer car sharing program; or
121	121	4.23 (4) a shared motor vehicle owner, a shared motor vehicle driver, and a peer-to-peer car
122	122	4.24sharing program.
123	123	4.25 (f) The insurance described in paragraph (e) that satisfies the insurance requirement
124	124	4.26under paragraph (d) must be primary during each car sharing period. If a claim occurs during
125	125	4.27the car sharing period in another state that has minimum financial responsibility limits higher
126	126	4.28than the amount set forth in section 65B.49, subdivision 3, the coverage maintained under
127	127	4.29paragraph (e) must satisfy the difference in minimum coverage amounts, up to the applicable
128	128	4.30policy limits.
129	129	4.31 (g) The insurer, insurers, or peer-to-peer car sharing program providing coverage under
130	130	4.32paragraph (d) or (e) must assume primary liability for a claim when:
131	131	4Sec. 3.
132	132	25-00561 as introduced01/14/25 REVISOR RSI/NB 5.1 (1) a dispute exists regarding who was in control of the shared motor vehicle at the time
133	133	5.2of the loss and the peer-to-peer car sharing program does not have available, did not retain,
134	134	5.3or fails to provide the information required by subdivision 4; or
135	135	5.4 (2) a dispute exists regarding whether the shared vehicle was returned to the alternatively
136	136	5.5agreed upon location, as required under section 65B.91, subdivision 6, clause (2).
137	137	5.6 (h) If insurance maintained by a shared motor vehicle owner or shared motor vehicle
138	138	5.7driver under paragraph (e) has lapsed or does not provide the required coverage, a
139	139	5.8peer-to-peer car sharing program: (1) must maintain insurance that provides the coverage
140	140	5.9required by paragraph (d), beginning with the first dollar of a claim; and (2) has the duty
141	141	5.10to defend the claim, except under the circumstances set forth under paragraph (b).
142	142	5.11 (i) Coverage under an automobile insurance policy maintained by the peer-to-peer car
143	143	5.12sharing program must not be dependent on another automobile insurer first denying a claim,
144	144	5.13nor must another automobile insurance policy be required to first deny a claim.
145	145	5.14 (j) Nothing in this subdivision:
146	146	5.15 (1) limits the liability of the peer-to-peer car sharing program for any act or omission
147	147	5.16of the peer-to-peer car sharing program that results in injury to any person as a result of the
148	148	5.17use of a shared motor vehicle through a peer-to-peer car sharing program; or
149	149	5.18 (2) limits the ability of the peer-to-peer car sharing program to, by contract, seek
150	150	5.19indemnification from the shared motor vehicle owner or the shared motor vehicle driver
151	151	5.20for economic loss sustained by the peer-to-peer car sharing program resulting from a breach
152	152	5.21of the car sharing program agreement's terms and conditions.
153	153	5.22 Subd. 2.Notification of implications of lien.At the time a vehicle owner registers as
154	154	5.23a shared motor vehicle owner on a peer-to-peer car sharing program and before the shared
155	155	5.24motor vehicle owner makes a shared motor vehicle available for car sharing on the
156	156	5.25peer-to-peer car sharing program, the peer-to-peer car sharing program must notify the
157	157	5.26shared vehicle owner that if the shared motor vehicle is subject to a lien, the shared motor
158	158	5.27vehicle's use through a peer-to-peer car sharing program, including use without physical
159	159	5.28damage coverage, may violate the terms of the shared motor vehicle owner's contract with
160	160	5.29the lienholder.
161	161	5.30 Subd. 3.Exclusions in motor vehicle liability insurance policies.(a) An authorized
162	162	5.31insurer that writes motor vehicle liability insurance in Minnesota may exclude any and all
163	163	5.32coverage, including the duty to defend or indemnify for any claim, afforded under a shared
164	164	5Sec. 3.
165	165	25-00561 as introduced01/14/25 REVISOR RSI/NB 6.1motor vehicle owner's motor vehicle liability insurance policy. An exclusion under this
166	166	6.2subdivision may include but is not limited to:
167	167	6.3 (1) liability coverage for bodily injury and property damage;
168	168	6.4 (2) personal injury protection coverage;
169	169	6.5 (3) uninsured and underinsured motorist coverage;
170	170	6.6 (4) medical payments coverage;
171	171	6.7 (5) comprehensive physical damage coverage; and
172	172	6.8 (6) collision physical damage coverage.
173	173	6.9 (b) Nothing in sections 65B.91 to 65B.95 invalidates or limits an exclusion contained
174	174	6.10in a motor vehicle liability insurance policy, including an insurance policy in use or approved
175	175	6.11for use that excludes coverage for motor vehicles made available for rent, sharing, hire, or
176	176	6.12for business use.
177	177	6.13 (c) Nothing in sections 65B.91 to 65B.95: (1) invalidates, limits, or restricts an insurer's
178	178	6.14ability under existing law to underwrite an insurance policy; or (2) limits or restricts an
179	179	6.15insurer's ability under existing law to cancel and nonrenew policies.
180	180	6.16 Subd. 4.Record keeping; use of vehicle in car sharing program.A peer-to-peer car
181	181	6.17sharing program must collect and verify records pertaining to a motor vehicle's use, including
182	182	6.18but not limited to the times used, car sharing period pick-up and drop-off locations, fees
183	183	6.19paid by the shared motor vehicle driver, and revenues received by the shared motor vehicle
184	184	6.20owner. A peer-to-peer car sharing program must provide the information upon request to
185	185	6.21the shared motor vehicle owner, the shared motor vehicle owner's insurer, or the shared
186	186	6.22motor vehicle driver's insurer to facilitate a claim coverage investigation, settlement,
187	187	6.23negotiation, or litigation. The peer-to-peer car sharing program must retain the records for
188	188	6.24a time period not less than the applicable personal injury statute of limitations.
189	189	6.25 Subd. 5.Exemption; vicarious liability.A peer-to-peer car sharing program and a
190	190	6.26shared motor vehicle owner are exempt from vicarious liability consistent with United States
191	191	6.27Code, title 49, section 30106, and under a state or local law that imposes liability based only
192	192	6.28on vehicle ownership, including without limitation section 169.09, subdivision 5a.
193	193	6.29 Subd. 6.Contribution against indemnification.A motor vehicle insurer that defends
194	194	6.30or indemnifies a claim against a shared motor vehicle that is excluded under the terms of
195	195	6.31the shared motor vehicle's policy has the right to seek recovery against the peer-to-peer car
196	196	6.32sharing program's motor vehicle insurer if the claim is: (1) made against the shared motor
197	197	6Sec. 3.
198	198	25-00561 as introduced01/14/25 REVISOR RSI/NB 7.1vehicle owner or the shared motor vehicle driver for loss or injury that occurs during the
199	199	7.2car sharing period; and (2) excluded under the terms of the shared motor vehicle's policy.
200	200	7.3 Subd. 7.Insurable interest.(a) Notwithstanding any other law, statute, rule, or regulation
201	201	7.4to the contrary, a peer-to-peer car sharing program must have an insurable interest in a
202	202	7.5shared motor vehicle during the car sharing period.
203	203	7.6 (b) Nothing in this subdivision creates liability on a peer-to-peer car sharing program
204	204	7.7to maintain the coverage mandated by subdivision 1.
205	205	7.8 (c) A peer-to-peer car sharing program may own and maintain as the named insured one
206	206	7.9or more motor vehicle liability insurance policies that separately or in combination provide
207	207	7.10coverage for:
208	208	7.11 (1) liabilities assumed by the peer-to-peer car sharing program under a peer-to-peer car
209	209	7.12sharing program agreement;
210	210	7.13 (2) liability of the shared motor vehicle owner;
211	211	7.14 (3) damage or loss to the shared motor vehicle; or
212	212	7.15 (4) liability of the shared motor vehicle driver.
213	213	7.16 (d) A policy that provides the insurance described in paragraph (c), clauses (2) and (4),
214	214	7.17must expressly provide liability coverage, without prior notice to the insurer, for all shared
215	215	7.18motor vehicles during the car sharing period, subject to conditions or exclusions permitted
216	216	7.19by this section.
217	217	7.20 (e) The insurance described in paragraph (c) may be issued by an authorized insurer or
218	218	7.21an eligible surplus lines insurer.
219	219	7.22 (f) A peer-to-peer car sharing company is not required to itemize or charge the shared
220	220	7.23vehicle owner or shared vehicle driver the amount payable as premium under insurance
221	221	7.24described in paragraph (c) that is allocable to coverage provided to the shared vehicle driver
222	222	7.25or the shared vehicle owner, if:
223	223	7.26 (1) in the case of the shared vehicle owner, the provided insurance is included without
224	224	7.27additional or itemized charge in the fee charged by the peer-to-peer car sharing company
225	225	7.28for the applicable car share reservation, including a financial protection package authorized
226	226	7.29under section 65B.94; and
227	227	7.30 (2) in the case of the shared vehicle driver, the provided insurance is included without
228	228	7.31additional or itemized charge in the shared motor vehicle's cost of the reservation, including
229	229	7.32a financial protection package authorized under section 65B.94.
230	230	7Sec. 3.
231	231	25-00561 as introduced01/14/25 REVISOR RSI/NB 8.1 (g) Notwithstanding any other law, statute, rule, or regulation to the contrary, a
232	232	8.2peer-to-peer car sharing company must not be deemed to be engaged in the sale, negotiation,
233	233	8.3solicitation, or offer of insurance by providing or offering to provide coverage, including
234	234	8.4describing the coverage provided and allowing the shared vehicle driver to select among
235	235	8.5coverage limits, to a shared vehicle owner or shared vehicle driver under an insurance policy
236	236	8.6maintained by the peer-to-peer car sharing program pursuant to paragraph (c).
237	237	8.7 Sec. 4. [65B.93] PHYSICAL DAMAGE PROGRAM.
238	238	8.8 Subdivision 1.Contractual assumption of risk.(a) A peer-to-peer car sharing program
239	239	8.9may enter into a contract with a shared vehicle owner pursuant to the peer-to-peer car sharing
240	240	8.10program agreement to contractually assume, for a fee, some or all of the shared motor vehicle
241	241	8.11owner's risk of loss due to physical damage to the shared motor vehicle during the time that
242	242	8.12the shared motor vehicle is in custody of the shared vehicle driver or peer-to-peer car sharing
243	243	8.13program.
244	244	8.14 (b) Contractual assumption of risk is not considered physical damage insurance or the
245	245	8.15transaction of the business of insurance in Minnesota.
246	246	8.16 (c) Assumption of risk may include loss due to wear and tear, the cost of a substitute
247	247	8.17vehicle, towing, or other losses directly related to the sharing of the vehicle through the
248	248	8.18peer-to-peer car sharing program.
249	249	8.19 Subd. 2.Collision damage waiver.A peer-to-peer car sharing program may enter into
250	250	8.20a contract with a shared vehicle driver pursuant to which the peer-to-peer car sharing program
251	251	8.21agrees, for a charge, to contractually assume all or part of the shared vehicle driver's liability
252	252	8.22for physical damage to the shared motor vehicle due to physical damage to the shared motor
253	253	8.23vehicle during the time that the shared motor vehicle is in custody of the shared vehicle
254	254	8.24driver. A contractual assumption of liability under this subdivision:
255	255	8.25 (1) is not considered physical damage insurance or the transaction of the business of
256	256	8.26insurance in Minnesota;
257	257	8.27 (2) may be referred to as "collision damage waiver," "optional vehicle protection,"
258	258	8.28"financial protection," "physical damage protection," or similar descriptive terms; and
259	259	8.29 (3) must be on a separate form that includes:
260	260	8.30 (i) the terms of the assumption of liability, including but not limited to any conditions
261	261	8.31or exclusions;
262	262	8Sec. 4.
263	263	25-00561 as introduced01/14/25 REVISOR RSI/NB 9.1 (ii) notice that coverage to the shared motor vehicle may be covered under the shared
264	264	9.2vehicle driver's own automobile insurance; and
265	265	9.3 (iii) notice that entering into the contract is not mandatory and may be waived.
266	266	9.4 Subd. 3.No requirement to use adjusters.A peer-to-peer car sharing program is not
267	267	9.5required to use licensed property damage adjusters or third-party administrators to value or
268	268	9.6determine losses (1) under a contract issued pursuant to subdivision 1, and (2) based on
269	269	9.7estimates from independent repair shops or other independent sources.
270	270	9.8 Sec. 5. [65B.94] FINANCIAL PROTECTION PACKAGES.
271	271	9.9 (a) A car sharing program may offer a financial protection package consisting of a
272	272	9.10combination of (1) insurance permitted under section 65B.92, and (2) contractual assumption
273	273	9.11of physical damage loss or liability permitted under section 65B.93.
274	274	9.12 (b) A financial protection package under this section may be identified as a "package,"
275	275	9.13"financial protection plan," or words of similar description.
276	276	9.14 (c) The cost of a financial protection package under this section may be calculated on a
277	277	9.15daily basis as a percentage of the daily reservation fee.
278	278	9.16 Sec. 6. [65B.95] CONSUMER PROTECTIONS DISCLOSURES.
279	279	9.17 Subdivision 1.Required disclosures.A car sharing program agreement made in
280	280	9.18Minnesota must disclose to the shared motor vehicle owner and the shared motor vehicle
281	281	9.19driver:
282	282	9.20 (1) any right the peer-to-peer car sharing program has to seek indemnification from the
283	283	9.21shared motor vehicle owner or the shared motor vehicle driver for economic loss sustained
284	284	9.22by the peer-to-peer car sharing program resulting from a breach of the car sharing program
285	285	9.23agreement's terms and conditions;
286	286	9.24 (2) that a motor vehicle liability insurance policy issued to the shared motor vehicle
287	287	9.25owner for the shared motor vehicle or to the shared motor vehicle driver does not provide
288	288	9.26a defense for or indemnification against a claim asserted by the peer-to-peer car sharing
289	289	9.27program;
290	290	9.28 (3) that the peer-to-peer car sharing program's insurance coverage on the shared motor
291	291	9.29vehicle owner and the shared motor vehicle driver is effective only during each car sharing
292	292	9.30period, and that the shared motor vehicle driver and the shared motor vehicle owner may
293	293	9Sec. 6.
294	294	25-00561 as introduced01/14/25 REVISOR RSI/NB 10.1not be covered by insurance for use of the shared motor vehicle by the shared vehicle driver
295	295	10.2after the car sharing termination time;
296	296	10.3 (4) the daily rate, fees, and, if applicable, insurance or protection package costs charged
297	297	10.4to the shared motor vehicle owner or the shared motor vehicle driver;
298	298	10.5 (5) that the shared motor vehicle owner's motor vehicle liability insurance might not
299	299	10.6provide coverage for a shared motor vehicle;
300	300	10.7 (6) an emergency telephone number to personnel capable of fielding roadside assistance
301	301	10.8and other customer service inquiries; and
302	302	10.9 (7) whether conditions exist under which a shared motor vehicle driver must maintain
303	303	10.10a personal automobile insurance policy, with certain applicable coverage limits on a primary
304	304	10.11basis, in order to book a shared motor vehicle.
305	305	10.12 Subd. 2.Driver's license verification and data retention.(a) A peer-to-peer car sharing
306	306	10.13program is prohibited from entering into a peer-to-peer car sharing program agreement with
307	307	10.14a driver unless the driver operating the shared motor vehicle:
308	308	10.15 (1) holds a driver's license issued under chapter 171 that authorizes the driver to operate
309	309	10.16vehicles of the shared motor vehicle's class; or
310	310	10.17 (2) is a nonresident who:
311	311	10.18 (i) has a driver's license issued by the state or country of the driver's residence that
312	312	10.19authorizes the driver to operate vehicles of the shared motor vehicle's class in the state or
313	313	10.20country of issuance; and
314	314	10.21 (ii) is at least the same age as the age required for a resident to drive in Minnesota; or
315	315	10.22 (3) is otherwise specifically authorized by the commissioner of public safety to drive
316	316	10.23vehicles of the shared motor vehicle's class.
317	317	10.24 (b) A peer-to-peer car sharing program must keep a record of:
318	318	10.25 (1) the name and address of the shared motor vehicle driver;
319	319	10.26 (2) the driver's license number for the shared motor vehicle driver and each other person,
320	320	10.27if any, who operates the shared motor vehicle; and
321	321	10.28 (3) the place the driver's license was issued.
322	322	10.29 Subd. 3.Responsibility for equipment.A peer-to-peer car sharing program has the
323	323	10.30sole responsibility for any equipment, including a GPS system or other special equipment,
324	324	10.31that is installed in or on the vehicle to monitor or facilitate the car sharing transaction. A
325	325	10Sec. 6.
326	326	25-00561 as introduced01/14/25 REVISOR RSI/NB 11.1peer-to-peer car sharing program must indemnify and hold harmless the motor vehicle owner
327	327	11.2for damage to or theft of equipment during the car sharing period that is not caused by the
328	328	11.3shared motor vehicle owner. The peer-to-peer car sharing program may seek indemnity
329	329	11.4from the shared motor vehicle driver for loss or damage to equipment that occurs during
330	330	11.5the car sharing period.
331	331	11.6 Subd. 4.Automobile safety recalls.(a) At the time a vehicle owner registers as a shared
332	332	11.7motor vehicle owner in a peer-to-peer car sharing program and before the shared motor
333	333	11.8vehicle owner makes a shared motor vehicle available for car sharing in the peer-to-peer
334	334	11.9car sharing program, the peer-to-peer car sharing program must:
335	335	11.10 (1) verify that the shared vehicle does not have a safety recall on the vehicle for which
336	336	11.11the repairs have not been made; and
337	337	11.12 (2) notify the shared motor vehicle owner of the requirements under paragraph (b).
338	338	11.13 (b) If the shared motor vehicle owner has received an actual safety recall notice on the
339	339	11.14vehicle, a shared motor vehicle owner is prohibited from making a vehicle available as a
340	340	11.15shared motor vehicle in a peer-to-peer car sharing program until after the safety recall repair
341	341	11.16has been made. If a shared motor vehicle owner receives an actual safety recall notice on a
342	342	11.17shared motor vehicle while the shared motor vehicle is made available in the peer-to-peer
343	343	11.18car sharing program, the shared motor vehicle owner must remove the shared motor vehicle
344	344	11.19from the peer-to-peer car sharing program as soon as practicable after receiving the safety
345	345	11.20recall notice and must not make the shared motor vehicle available until after the safety
346	346	11.21recall repair has been made. If a shared vehicle owner receives an actual safety recall notice
347	347	11.22while the shared motor vehicle is being used or in the possession of a shared motor vehicle
348	348	11.23driver, the shared vehicle owner must notify the peer-to-peer car sharing program about the
349	349	11.24safety recall as soon as practicable after receiving the safety recall notice so the shared motor
350	350	11.25vehicle owner may address the safety recall repair.
351	351	11.26Sec. 7. Minnesota Statutes 2024, section 72A.125, subdivision 1, is amended to read:
352	352	11.27 Subdivision 1.Definitions.(a) "Auto rental company" means a corporation, partnership,
353	353	11.28individual, or other person that is engaged primarily in the renting of motor vehicles at per
354	354	11.29diem rates. Auto rental company does not include a peer-to-peer car sharing program, as
355	355	11.30defined in section 65B.91, subdivision 8; or shared motor vehicle owner, as defined in
356	356	11.31section 65B.91, subdivision 11.
357	357	11.32 (b) "Rental vehicle personal accident insurance" means accident only insurance providing
358	358	11.33accidental death benefits, dismemberment benefits and/or reimbursement for medical
359	359	11Sec. 7.
360	360	25-00561 as introduced01/14/25 REVISOR RSI/NB 12.1expenses which is issued by an insurer authorized in this state to issue accident and health
361	361	12.2insurance. These coverages are nonqualified plans under chapter 62E.
362	362	12.3 (c) "Liability insurance" means insurance that provides coverage, as applicable, to renters
363	363	12.4and other authorized drivers of rental vehicles for liability arising from the operation of the
364	364	12.5rental vehicle. At the option of the auto rental company, this coverage may include uninsured
365	365	12.6or underinsured motorist coverage whether offered separately or in combination with other
366	366	12.7liability insurance.
367	367	12.8 (d) "Personal effects insurance" means coverage, as applicable, to renters and other
368	368	12.9rental vehicle occupants for the loss of, or damage to, personal effects which occurs during
369	369	12.10the rental period.
370	370	12.11Sec. 8. Minnesota Statutes 2024, section 297A.64, subdivision 4, is amended to read:
371	371	12.12 Subd. 4.Exemptions.(a) The tax and the fee imposed by this section do not apply to a
372	372	12.13lease or rental of (1) a vehicle to be used by the lessee to provide a licensed taxi service;
373	373	12.14(2) a hearse or limousine used in connection with a burial or funeral service; or (3) a van
374	374	12.15designed or adapted primarily for transporting property rather than passengers. The tax and
375	375	12.16the fee imposed under this section do not apply when the lease or rental of a vehicle is
376	376	12.17exempt from the tax imposed under section 297A.62, subdivision 1. The tax and fee imposed
377	377	12.18under this section does not apply to a vehicle that is part of a peer-to-peer car sharing
378	378	12.19program, as defined in section 65B.91, subdivision 8.
379	379	12.20 (b) The lessor may elect not to charge the fee imposed in subdivision 2 if in the previous
380	380	12.21calendar year the lessor had no more than 20 vehicles available for lease that would have
381	381	12.22been subject to tax under this section, or no more than $50,000 in gross receipts that would
382	382	12.23have been subject to tax under this section.
383	383	12.24Sec. 9. REPEALER.
384	384	12.25 Minnesota Statutes 2024, section 65B.49, subdivision 5a, is repealed.
385	385	12.26Sec. 10. EFFECTIVE DATE.
386	386	12.27 Sections 1 to 9 are effective January 1, 2026.
387	387	12Sec. 10.
388	388	25-00561 as introduced01/14/25 REVISOR RSI/NB 65B.49 INSURERS.
389	389	Subd. 5a.Rental vehicles.(a) Every plan of reparation security, wherever issued, insuring a
390	390	natural person as named insured, covering private passenger vehicles as defined under section
391	391	65B.001, subdivision 3, and pickup trucks and vans as defined under section 168.002 must: (1)
392	392	provide that all of the obligation for damage and loss of use to a rented private passenger vehicle,
393	393	including pickup trucks and vans as defined under section 168.002, and rented trucks with a registered
394	394	gross vehicle weight of 26,000 pounds or less would be covered by the property damage liability
395	395	portion of the plan; and (2) extend the plan's basic economic loss benefits, residual liability insurance,
396	396	and uninsured and underinsured motorist coverages to the operation or use of the rented motor
397	397	vehicle. This subdivision does not apply to plans of reparation security covering only motor vehicles
398	398	registered under section 168.10, subdivision 1a, 1b, 1c, or 1d, or recreational vehicles as defined
399	399	under section 168.002. The obligation of the plan must not be contingent on fault or negligence. In
400	400	all cases where the plan's property damage liability coverage is less than $35,000, the coverage
401	401	available under the subdivision must be $35,000. Other than as described in this paragraph; paragraph
402	402	(i), clause (2); or paragraph (j), nothing in this section amends or alters the provisions of the plan
403	403	of reparation security as to primacy of the coverages in this section.
404	404	(b) A vehicle is rented for purposes of this subdivision:
405	405	(1) if the rate for the use of the vehicle is determined on a monthly, weekly, or daily basis; or
406	406	(2) during the time that a vehicle is loaned as a replacement for a vehicle being serviced or
407	407	repaired regardless of whether the customer is charged a fee for the use of the vehicle.
408	408	A vehicle is not rented for the purposes of this subdivision if the rate for the vehicle's use is
409	409	determined on a period longer than one month or if the term of the rental agreement is longer than
410	410	one month. A vehicle is not rented for purposes of this subdivision if the rental agreement has a
411	411	purchase or buyout option or otherwise functions as a substitute for purchase of the vehicle.
412	412	(c) The policy or certificate issued by the plan must inform the insured of the application of the
413	413	plan to private passenger rental vehicles, including pickup trucks and vans as defined under section
414	414	168.002, and that the insured may not need to purchase additional coverage from the rental company.
415	415	(d) Where an insured has two or more vehicles covered by a plan or plans of reparation security
416	416	containing the rented motor vehicle coverage required under paragraph (a), the insured may select
417	417	the plan the insured wishes to collect from and that plan is entitled to a pro rata contribution from
418	418	the other plan or plans based upon the property damage limits of liability. If the person renting the
419	419	motor vehicle is also covered by the person's employer's insurance policy or the employer's
420	420	automobile self-insurance plan, the reparation obligor under the employer's policy or self-insurance
421	421	plan has primary responsibility to pay claims arising from use of the rented vehicle.
422	422	(e) A notice advising the insured of rental vehicle coverage must be given by the reparation
423	423	obligor to each current insured with the first renewal notice after January 1, 1989. The notice must
424	424	be approved by the commissioner of commerce. The commissioner may specify the form of the
425	425	notice.
426	426	(f) When a motor vehicle is rented in this state, there must be attached to the rental contract a
427	427	separate form containing a written notice in at least 10-point bold type, if printed, or in capital
428	428	letters, if typewritten, which states:
429	429	"Under Minnesota law, a personal automobile insurance policy must: (1) cover the rental of
430	430	this motor vehicle against damage to the vehicle and against loss of use of the vehicle; and (2)
431	431	extend the policy's basic economic loss benefits, residual liability insurance, and uninsured and
432	432	underinsured motorist coverages to the operation or use of a rented motor vehicle. Therefore,
433	433	purchase of any collision damage waiver or similar insurance affected in this rental contract is
434	434	not necessary. In addition, purchase of any additional liability insurance is not necessary if your
435	435	policy was issued in Minnesota unless you wish to have coverage for liability that exceeds the
436	436	amount specified in your personal automobile insurance policy."
437	437	No collision damage waiver or other insurance offered as part of or in conjunction with a rental of
438	438	a motor vehicle may be sold unless the person renting the vehicle provides a written acknowledgment
439	439	that the above consumer protection notice has been read and understood.
440	440	(g) When damage to a rented vehicle is covered by a plan of reparation security as provided
441	441	under paragraph (a), the rental contract must state that payment by the reparation obligor within
442	442	the time limits of section 72A.201 is acceptable, and prior payment by the renter is not required.
443	443	1R
444	444	APPENDIX
445	445	Repealed Minnesota Statutes: 25-00561 (h) Compensation for the loss of use of a damaged rented motor vehicle is limited to a period
446	446	no longer than 14 days.
447	447	(i)(1) For purposes of this subdivision, "rented motor vehicle" means a rented vehicle described
448	448	in paragraph (a), using the definition of "rented" provided in paragraph (b).
449	449	(2) Notwithstanding section 169.09, subdivision 5a, an owner of a rented motor vehicle is not
450	450	vicariously liable for legal damages resulting from the operation of the rented motor vehicle in an
451	451	amount greater than $100,000 because of bodily injury to one person in any one accident and,
452	452	subject to the limit for one person, $300,000 because of injury to two or more persons in any one
453	453	accident, and $50,000 because of injury to or destruction of property of others in any one accident,
454	454	if the owner of the rented motor vehicle has in effect, at the time of the accident, a policy of insurance
455	455	or self-insurance, as provided in section 65B.48, subdivision 3, covering losses up to at least the
456	456	amounts set forth in this paragraph. Nothing in this paragraph alters or affects the obligations of an
457	457	owner of a rented motor vehicle to comply with the requirements of compulsory insurance through
458	458	a policy of insurance as provided in section 65B.48, subdivision 2, or through self-insurance as
459	459	provided in section 65B.48, subdivision 3, which policy of insurance or self-insurance must apply
460	460	whenever the operator is not covered by a plan of reparation security as provided under paragraph
461	461	(a); or with the obligations arising from section 72A.125 for products sold in conjunction with the
462	462	rental of a motor vehicle. Nothing in this paragraph alters or affects liability, other than vicarious
463	463	liability, of an owner of a rented motor vehicle.
464	464	(3) The dollar amounts stated in this paragraph shall be adjusted for inflation based upon the
465	465	Consumer Price Index for all urban consumers, known as the CPI-U, published by the United States
466	466	Bureau of Labor Statistics. The dollar amounts stated in this paragraph are based upon the value
467	467	of that index for July 1995, which is the reference base index for purposes of this paragraph. The
468	468	dollar amounts in this paragraph shall change effective January 1 of each odd-numbered year based
469	469	upon the percentage difference between the index for July of the preceding year and the reference
470	470	base index, calculated to the nearest whole percentage point. The commissioner shall announce and
471	471	publish, on or before September 30 of the preceding year, the changes in the dollar amounts required
472	472	by this paragraph to take effect on January 1 of each odd-numbered year. The commissioner shall
473	473	use the most recent revision of the July index available as of September 1. Changes in the dollar
474	474	amounts must be in increments of $5,000, and no change shall be made in a dollar amount until the
475	475	change in the index requires at least a $5,000 change. If the United States Bureau of Labor Statistics
476	476	changes the base year upon which the CPI-U is based, the commissioner shall make the calculations
477	477	necessary to convert from the old base year to the new base year. If the CPI-U is discontinued, the
478	478	commissioner shall use the available index that is most similar to the CPI-U.
479	479	(j) The plan of reparation security covering the owner of a rented motor vehicle is excess of
480	480	any residual liability coverage insuring an operator of a rented motor vehicle.
481	481	2R
482	482	APPENDIX
483	483	Repealed Minnesota Statutes: 25-00561