Texas 2019 - 86th Regular

Texas House Bill HB4362 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R25607 GRM-F
2		-	By: Nevárez, Rodriguez, Moody H.B. No. 4362
3		-	Substitute the following for H.B. No. 4362:
4		-	By: Ortega C.S.H.B. No. 4362
	1	+	By: Nevárez H.B. No. 4362
5	2
6	3
7	4		A BILL TO BE ENTITLED
8	5		AN ACT
9		-	relating to peer-to-peer vehicle sharing platforms and the
10		-	applicability of certain taxes to those platforms.
	6	+	relating to peer-to-peer vehicle sharing platforms, the
	7	+	collection, remittance, and administration of certain taxes on
	8	+	those platforms, and fees collected by those platforms.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
13	11		amended by adding Chapter 113 to read as follows:
14	12		CHAPTER 113. PEER-TO-PEER VEHICLE SHARING PLATFORMS
15	13		SUBCHAPTER A. GENERAL PROVISIONS
16		-	Sec. 113.001. DEFINITIONS. In this chapter:
17		-	(1) "Peer-to-peer vehicle sharing" means the
18		-	authorized use of a personal motor vehicle by an individual other
19		-	than the vehicle's owner through a peer-to-peer vehicle sharing
20		-	platform.
21		-	(2) "Peer-to-peer vehicle sharing platform" means a
22		-	platform that is in the business of connecting personal motor
23		-	vehicle owners with drivers to enable the sharing of motor vehicles
24		-	for financial consideration.
25		-	Sec. 113.002. CONFLICT OF LAW. To the extent of a conflict
26		-	between this chapter, including a rule adopted under this chapter,
27		-	and another law, this chapter controls.
28		-	Sec. 113.003. CONTROLLING AUTHORITY. Notwithstanding any
29		-	other provision of law, the regulation of peer-to-peer vehicle
30		-	sharing and peer-to-peer vehicle sharing platforms:
31		-	(1) is an exclusive power and function of this state;
32		-	and
33		-	(2) may not be regulated by a municipality, county, or
34		-	other local entity, including by:
35		-	(A) imposing a tax, levy, fee, or charge of any
36		-	kind;
37		-	(B) requiring an additional license or permit;
38		-	(C) setting rates;
39		-	(D) imposing operational or entry requirements;
40		-	or
41		-	(E) imposing other requirements.
	14	+	Sec. 113.001. DEFINITION. In this chapter, "peer-to-peer
	15	+	vehicle sharing platform" means a platform that is in the business
	16	+	of connecting vehicle owners with drivers to enable the sharing of
	17	+	motor vehicles for financial consideration.
42	18		SUBCHAPTER B. PLATFORM AGREEMENTS
43	19		Sec. 113.051. REQUIRED DISCLOSURES. A peer-to-peer vehicle
44	20		sharing platform agreement must state:
45	21		(1) the daily rate, fees, and any protection package
46	22		or insurance costs that are charged to the shared vehicle owner or
47	23		the shared vehicle driver; and
48	24		(2) the sharing period.
	25	+	Sec. 113.052. CERTAIN FEES. A peer-to-peer vehicle sharing
	26	+	platform may charge a shared vehicle driver a separately stated fee
	27	+	to recover costs incurred by the peer-to-peer vehicle sharing
	28	+	platform from any concession fees paid to a government-owned or
	29	+	government-operated airport or other entity.
49	30		SUBCHAPTER C. DUTIES OF PLATFORM AND VEHICLE OWNERS
50	31		Sec. 113.101. DUTIES OF PLATFORM. A peer-to-peer vehicle
51	32		sharing platform shall verify that a motor vehicle does not have any
52		-	safety recalls for which repairs have not been made before the ~~motor~~
53		-	vehicle is made available for sharing on the platform.
	33	+	safety recalls for which repairs have not been made before the
	34	+	motor vehicle is made available for sharing on the platform.
54	35		Sec. 113.102. DUTIES OF VEHICLE OWNER. If a shared vehicle
55	36		owner receives actual notice of a safety recall on the owner's
56	37		vehicle after the motor vehicle is made available for sharing on a
57		-	peer-to-peer vehicle sharing platform, the owner shall remove the
58		-	vehicle from the platform until the safety recall repair has been
59		-	made.
60		-	SECTION 2. Subchapter A, Chapter 151, Tax Code, is amended
61		-	by adding Section 151.0044 to read as follows:
62		-	Sec. 151.0044. "PEER-TO-PEER VEHICLE SHARING".
63		-	"Peer-to-peer vehicle sharing" has the meaning assigned by Section
64		-	113.001, Business & Commerce Code.
65		-	SECTION 3. Section 151.008, Tax Code, is amended by adding
66		-	Subsection (c) to read as follows:
67		-	(c) For the purpose of peer-to-peer vehicle sharing, the
68		-	seller or retailer is the peer-to-peer vehicle sharing platform as
69		-	defined by Section 113.001, Business & Commerce Code. The owner of
70		-	a personal motor vehicle used for peer-to-peer vehicle sharing is
71		-	not the seller or retailer unless the owner of the vehicle is the
72		-	peer-to-peer vehicle sharing platform.
73		-	SECTION 4. Section 151.0101(a), Tax Code, is amended to
74		-	read as follows:
75		-	(a) "Taxable services" means:
76		-	(1) amusement services;
77		-	(2) cable television services;
78		-	(3) personal services;
79		-	(4) motor vehicle parking and storage services;
80		-	(5) the repair, remodeling, maintenance, and
81		-	restoration of tangible personal property, except:
82		-	(A) aircraft;
83		-	(B) a ship, boat, or other vessel, other than:
84		-	(i) a taxable boat or motor as defined by
85		-	Section 160.001;
86		-	(ii) a sports fishing boat; or
87		-	(iii) any other vessel used for pleasure;
88		-	(C) the repair, maintenance, and restoration of a
89		-	motor vehicle; and
90		-	(D) the repair, maintenance, creation, and
91		-	restoration of a computer program, including its development and
92		-	modification, not sold by the person performing the repair,
93		-	maintenance, creation, or restoration service;
94		-	(6) telecommunications services;
95		-	(7) credit reporting services;
96		-	(8) debt collection services;
97		-	(9) insurance services;
98		-	(10) information services;
99		-	(11) real property services;
100		-	(12) data processing services;
101		-	(13) real property repair and remodeling;
102		-	(14) security services;
103		-	(15) telephone answering services;
104		-	(16) Internet access service; [and]
105		-	(17) a sale by a transmission and distribution
106		-	utility, as defined in Section 31.002, Utilities Code, of
107		-	transmission or delivery of service directly to an electricity
108		-	end-use customer whose consumption of electricity is subject to
109		-	taxation under this chapter; and
110		-	(18) peer-to-peer vehicle sharing.
111		-	SECTION 5. Section 151.308(a), Tax Code, is amended to read
112		-	as follows:
113		-	(a) The following are exempted from the taxes imposed by
114		-	this chapter:
115		-	(1) oil as taxed by Chapter 202;
116		-	(2) motor fuels and special fuels as defined, taxed,
117		-	or exempted by Chapter 162;
118		-	(3) cement as taxed by Chapter 181;
119		-	(4) motor vehicles, trailers, and semitrailers as
120		-	defined, taxed, or exempted by Chapter 152, other than:
121		-	(A) a mobile office or an oilfield portable unit,
122		-	as those terms are defined by Section 152.001; or
123		-	(B) peer-to-peer vehicle sharing;
124		-	(5) mixed beverages, ice, or nonalcoholic beverages
125		-	and the preparation or service of these items if the receipts are
126		-	taxable by Subchapter B, Chapter 183, or the items are taxable by
127		-	Subchapter B-1, Chapter 183;
128		-	(6) alcoholic beverages when sold to the holder of a
129		-	private club registration permit or to the agent or employee of the
130		-	holder of a private club registration permit if the holder or agent
131		-	or employee is acting as the agent of the members of the club and if
132		-	the beverages are to be served on the premises of the club;
133		-	(7) oil well service as taxed by Subchapter E, Chapter
134		-	191; and
135		-	(8) insurance premiums subject to gross premiums
136		-	taxes.
137		-	SECTION 6. Subchapter H, Chapter 151, Tax Code, is amended
138		-	by adding Section 151.360 to read as follows:
139		-	Sec. 151.360. LOCAL TAXES ON PEER-TO-PEER VEHICLE SHARING.
140		-	Peer-to-peer vehicle sharing is exempted from local taxes imposed
141		-	or governed by Subtitle C, Title 3.
142		-	SECTION 7. Section 152.001, Tax Code, is amended by adding
143		-	Subdivision (5-a) to read as follows:
144		-	(5-a) "Rental" does not include peer-to-peer vehicle
145		-	sharing as defined by Section 113.001, Business & Commerce Code.
146		-	SECTION 8. The changes in law made by this Act do not affect
147		-	tax liability accruing before the effective date of this Act. That
148		-	liability continues in effect as if this Act had not been enacted,
149		-	and the former law is continued in effect for the collection of
150		-	taxes due and for civil and criminal enforcement of the liability
151		-	for those taxes.
152		-	SECTION 9. This Act takes effect September 1, 2019.
	38	+	peer-to-peer vehicle sharing platform, the owner shall
	39	+	remove the vehicle from the platform until the safety recall repair
	40	+	has been made.
	41	+	SUBCHAPTER D. INSURANCE COVERAGE
	42	+	Sec. 113.151. INSURANCE COVERAGE DURING VEHICLE SHARING
	43	+	PERIOD. (a) A peer-to-peer vehicle sharing platform shall ensure
	44	+	that during each sharing period the shared motor vehicle is covered
	45	+	by a motor vehicle liability insurance policy that recognizes that
	46	+	the motor vehicle is a shared vehicle.
	47	+	(b) Coverage required by this section may be provided
	48	+	through:
	49	+	(1) a commercial liability policy issued to the
	50	+	peer-to-peer vehicle sharing platform in an amount that is not less
	51	+	than the minimum amount of financial responsibility required under
	52	+	Chapter 601, Transportation Code; or
	53	+	(2) a personal liability policy issued to the shared
	54	+	vehicle driver that is not less than the minimum amount of financial
	55	+	responsibility required under Chapter 601, Transportation Code.
	56	+	Sec. 113.152. OWNER'S MOTOR VEHICLE INSURANCE. An insurer
	57	+	may not deny, cancel, or nonrenew a motor vehicle liability
	58	+	insurance policy of a shared vehicle owner solely on the basis that
	59	+	a motor vehicle covered under the policy has been made available for
	60	+	sharing through a peer-to-peer vehicle sharing platform.
	61	+	Sec. 113.153. DRIVER'S MOTOR VEHICLE INSURANCE. Collision
	62	+	insurance coverage provided under a motor vehicle insurance policy
	63	+	delivered or issued for delivery in this state, including a policy
	64	+	issued by a county mutual insurance company, must cover a passenger
	65	+	vehicle operated by the insured under a peer-to-peer vehicle
	66	+	sharing platform.
	67	+	SUBCHAPTER D. LIABILITY
	68	+	Sec. 113.201. LIABILITY. (a) A peer-to-peer vehicle
	69	+	sharing platform shall assume the liability of a shared vehicle
	70	+	owner for any bodily injury or property damage to third parties
	71	+	during the vehicle sharing period up to the minimum amount of
	72	+	financial responsibility required under Chapter 601,
	73	+	Transportation Code.
	74	+	(b) The amount of liability assumed by the peer-to-peer
	75	+	vehicle sharing platform under Subsection (a) must be stated in the
	76	+	peer-to-peer vehicle sharing platform agreement.
	77	+	SECTION 2. Section 152.001, Tax Code, is amended by
	78	+	amending Subdivision (9) and adding Subdivision (21) to read as
	79	+	follows:
	80	+	(9) "Owner of a motor vehicle" means:
	81	+	(A) a person named in the certificate of title as
	82	+	the owner of the vehicle; [or]
	83	+	(B) a person who has the exclusive use of a motor
	84	+	vehicle by reason of a rental and holds the vehicle for re-rental;
	85	+	or
	86	+	(C) if the motor vehicle is shared through a
	87	+	peer-to-peer vehicle sharing platform, the peer-to-peer vehicle
	88	+	sharing platform.
	89	+	(21) "Peer-to-peer vehicle sharing platform" has the
	90	+	meaning assigned by Section 113.001, Business & Commerce Code.
	91	+	SECTION 3. Section 152.045, Tax Code, is amended by
	92	+	amending Subsection (a) and adding Subsection (a-1) to read as
	93	+	follows:
	94	+	(a) Except as otherwise provided by Subsection (a-1) or
	95	+	another provision of [inconsistent with this chapter and rules
	96	+	adopted under] this chapter, an owner of a motor vehicle subject to
	97	+	the tax on gross rental receipts shall collect, report, and pay the
	98	+	tax to the comptroller in the same manner as the tax under Chapter
	99	+	151 [Limited Sales, Excise and Use Tax] is collected, reported, and
	100	+	paid by a retailer [retailers] under that chapter [Chapter 151 of
	101	+	this code].
	102	+	(a-1) If the motor vehicle is shared through a peer-to-peer
	103	+	vehicle sharing platform, the peer-to-peer vehicle sharing
	104	+	platform shall collect, report, and pay the tax on gross rental to
	105	+	receipts the comptroller in the manner prescribed by Subsection
	106	+	(a).
	107	+	SECTION 4. This Act takes effect September 1, 2019.