Texas 2021 - 87th Regular

Texas House Bill HB113 Compare Versions

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1		-	H.B. No. 113
	1	+	By: Oliverson (Senate Sponsor - Schwertner) H.B. No. 113
	2	+	(In the Senate - Received from the House April 21, 2021;
	3	+	May 6, 2021, read first time and referred to Committee on Business &
	4	+	Commerce; May 20, 2021, reported favorably by the following vote:
	5	+	Yeas 9, Nays 0; May 20, 2021, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to peer-to-peer car sharing programs.
6	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	13		SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
8	14		amended by adding Chapter 113 to read as follows:
9	15		CHAPTER 113. PEER-TO-PEER CAR SHARING PROGRAMS
10	16		SUBCHAPTER A. GENERAL PROVISIONS
11	17		Sec. 113.0001. DEFINITIONS. In this chapter:
12	18		(1) "Agreement" means the terms and conditions
13	19		applicable to an owner and driver that govern the use of a shared
14	20		vehicle through a peer-to-peer car sharing program. The term does
15	21		not include a rental agreement as defined by Section 91.001.
16	22		(2) "Car sharing period" means the period of time
17	23		beginning with the delivery period or, if there is no delivery
18	24		period, the start time and ending at the termination time.
19	25		(3) "Delivery period" means the period of time during
20	26		which a shared vehicle is being delivered to the location of the
21	27		start time, if applicable, under the agreement.
22	28		(4) "Driver" means an individual who has been
23	29		authorized to drive the shared vehicle by the vehicle's owner under
24	30		an agreement.
25	31		(5) "Owner" means the registered owner, or a person or
26	32		entity designated by the registered owner, of a vehicle made
27	33		available for sharing to drivers through a peer-to-peer car sharing
28	34		program.
29	35		(6) "Peer-to-peer car sharing" means the authorized
30	36		use of a vehicle by an individual other than the vehicle's owner
31	37		through a peer-to-peer car sharing program. The term does not
32	38		include the use of a private passenger vehicle from a rental company
33	39		under the terms of a rental agreement as those terms are defined by
34	40		Section 91.001.
35	41		(7) "Peer-to-peer car sharing program" means a
36	42		business platform that connects owners with drivers to enable
37	43		vehicle sharing for financial consideration. The term does not
38	44		include:
39	45		(A) a service provider who is solely providing
40	46		hardware or software as a service to a person or entity that is not
41	47		effectuating payment of financial consideration for use of a shared
42	48		vehicle; and
43	49		(B) a rental company as defined by Section
44	50		91.001.
45	51		(8) "Shared vehicle" means a vehicle that is available
46	52		for sharing through a peer-to-peer car sharing program. The term
47	53		does not include the use of a private passenger vehicle from a
48	54		rental company under the terms of a rental agreement as those terms
49	55		are defined by Section 91.001.
50	56		(9) "Start time" means the time when the shared
51	57		vehicle becomes subject to the control of the driver at or after the
52	58		time the reservation of a shared vehicle is scheduled to begin under
53	59		the agreement.
54	60		(10) "Termination time" means the earliest of:
55	61		(A) the expiration of the period of time
56	62		established for the use of a shared vehicle according to the
57	63		agreement if the shared vehicle is returned to the location
58	64		specified in the agreement;
59	65		(B) the time when the shared vehicle is returned
60	66		to a location as alternatively agreed on by the owner and driver as
61	67		communicated through a peer-to-peer car sharing program and which
62	68		alternatively agreed on location is thereby incorporated into the
63	69		agreement; or
64	70		(C) the time when the owner or owner's authorized
65	71		designee takes possession and control of the shared vehicle.
66	72		Sec. 113.0002. APPLICABILITY OF CHAPTER. This chapter
67	73		applies to automobile insurance policies in this state, including
68	74		policies issued by a Lloyd's plan, a reciprocal or interinsurance
69	75		exchange, or a county mutual insurance company.
70	76		Sec. 113.0003. CONSTRUCTION OF CHAPTER. Nothing in this
71	77		chapter may be construed to:
72	78		(1) limit the liability of a peer-to-peer car sharing
73	79		program for any act or omission of the program itself that results
74	80		in injury to a person as a result of the use of a shared vehicle
75	81		through the program;
76	82		(2) limit the ability of a peer-to-peer car sharing
77	83		program to, by contract, seek indemnification from the owner or
78	84		driver for economic loss sustained by the program resulting from a
79	85		breach of the agreement;
80	86		(3) have implications affecting construction of
81	87		statutes outside this chapter, including statutes related to motor
82	88		vehicle regulation, airport regulation, or taxation;
83	89		(4) invalidate or limit an exclusion contained in an
84	90		automobile insurance policy, including an insurance policy in use
85	91		or approved for use that excludes coverage for automobiles made
86	92		available for rent, sharing, hire, or any business use; or
87	93		(5) invalidate, limit, or restrict an insurer's
88	94		ability under law to:
89	95		(A) underwrite any insurance policy; or
90	96		(B) cancel or decline to renew an insurance
91	97		policy.
92	98		Sec. 113.0004. RULES. The commissioner of insurance may
93	99		adopt rules necessary to implement this chapter.
94	100		SUBCHAPTER B. ASSUMPTION OF LIABILITY AND INSURANCE REQUIREMENTS
95	101		Sec. 113.0051. ASSUMPTION OF LIABILITY BY PEER-TO-PEER CAR
96	102		SHARING PROGRAM. (a) Except as provided by Subsection (b), a
97	103		peer-to-peer car sharing program shall assume liability of an owner
98	104		for bodily injury or property damage to third parties or uninsured
99	105		or underinsured motorist or personal injury protection losses by
100	106		damaged third parties during the car sharing period in an amount
101	107		stated in the agreement, which may not be less than, as applicable,
102	108		the amounts:
103	109		(1) provided by Subchapter D, Chapter 601,
104	110		Transportation Code;
105	111		(2) required for uninsured or underinsured motorist
106	112		coverage under Section 1952.101, Insurance Code; or
107	113		(3) provided as the maximum amount of required
108	114		personal injury protection coverage under Section 1952.153,
109	115		Insurance Code.
110	116		(b) A peer-to-peer car sharing program is not required to
111	117		assume liability of an owner if the owner:
112	118		(1) makes an intentional or fraudulent material
113	119		misrepresentation or omission to the program before the car sharing
114	120		period in which the loss occurred; or
115	121		(2) acts in concert with a driver who fails to return
116	122		the shared vehicle in accordance with the agreement.
117	123		(c) Notwithstanding the definition of "termination time"
118	124		under Section 113.0001 or this subchapter, the assumption of
119	125		liability under Subsection (a) applies to bodily injury, property
120	126		damage, uninsured and underinsured motorist, or personal injury
121	127		protection losses by damaged third parties as required by
122	128		Subchapter D, Chapter 601, Transportation Code, Section 1952.101,
123	129		Insurance Code, and Section 1952.153, Insurance Code.
124	130		Sec. 113.0052. INSURANCE REQUIRED. (a) A peer-to-peer car
125	131		sharing program shall ensure that, during each car sharing period,
126	132		the owner and the driver are insured under an automobile liability
127	133		insurance policy that meets the requirements of this subchapter.
128	134		(b) Insurance maintained for purposes of this subchapter:
129	135		(1) must provide coverage in amounts not less than the
130	136		amounts described by Section 601.072, Transportation Code;
131	137		(2) must be primary during each car sharing period;
132	138		and
133	139		(3) must:
134	140		(A) recognize that the shared vehicle insured
135	141		under the policy is made available and used through a peer-to-peer
136	142		car sharing program and specifically provide coverage for that use;
137	143		or
138	144		(B) not exclude the use of a shared vehicle by a
139	145		driver.
140	146		(c) The coverage requirements of this subchapter may be
141	147		satisfied by:
142	148		(1) automobile insurance maintained by the owner;
143	149		(2) automobile insurance maintained by the driver;
144	150		(3) automobile insurance maintained by the
145	151		peer-to-peer car sharing program; or
146	152		(4) a combination of Subdivisions (1), (2), and (3).
147	153		(d) If a claim occurs in another state with minimum
148	154		financial responsibility limits higher than the amounts described
149	155		by Section 601.072, Transportation Code, during the car sharing
150	156		period, the coverage maintained under Subsection (a) must satisfy
151	157		the difference in minimum coverage amounts to the applicable policy
152	158		limits.
153	159		Sec. 113.0053. AUTOMOBILE INSURANCE POLICY EXCLUSIONS. An
154	160		automobile insurer may exclude any coverage and the duty to defend
155	161		or indemnify for any claim afforded under an owner's automobile
156	162		insurance policy during a car sharing period, including an
157	163		exclusion of:
158	164		(1) liability coverage for bodily injury and property
159	165		damage;
160	166		(2) personal injury protection coverage;
161	167		(3) uninsured and underinsured motorist coverage;
162	168		(4) medical payments coverage;
163	169		(5) comprehensive physical damage coverage; and
164	170		(6) collision physical damage coverage.
165	171		Sec. 113.0054. CLAIMS RELATED TO PEER-TO-PEER CAR SHARING.
166	172		(a) An insurer or peer-to-peer car sharing program providing
167	173		coverage under Section 113.0052(a) shall assume primary liability
168	174		for a claim when:
169	175		(1) a dispute exists as to who was in control of the
170	176		shared vehicle at the time of the loss and the program does not have
171	177		available, did not retain, or fails to provide the information
172	178		required by Section 113.0103; or
173	179		(2) a dispute exists as to whether the shared vehicle
174	180		was returned to the alternatively agreed upon location described by
175	181		Section 113.0001(10)(B).
176	182		(b) If, at the time of a claim, the automobile insurance
177	183		maintained by an owner or driver has lapsed or does not provide the
178	184		coverage required under this subchapter, insurance maintained by a
179	185		peer-to-peer car sharing program shall provide the coverage
180	186		beginning with the first dollar of a claim and the program shall
181	187		defend the claim.
182	188		(c) Coverage under an automobile insurance policy
183	189		maintained by the peer-to-peer car sharing program may not be
184	190		dependent on another automobile insurer first denying a claim.
185	191		Another automobile insurance policy is not required to first deny a
186	192		claim.
187	193		Sec. 113.0055. VICARIOUS LIABILITY. Notwithstanding any
188	194		other law, a peer-to-peer car sharing program and an owner are not
189	195		liable under a theory of vicarious liability in accordance with 49
190	196		U.S.C. Section 30106 or under any state or local law that imposes
191	197		liability solely based on vehicle ownership.
192	198		Sec. 113.0056. CONTRIBUTION. An automobile insurer that
193	199		defends or indemnifies a claim against a shared vehicle that is
194	200		excluded under the terms of the insurer's policy may seek recovery
195	201		against the peer-to-peer car sharing program's automobile insurer
196	202		if the claim is:
197	203		(1) made against the shared vehicle's owner or the
198	204		shared vehicle's driver for loss or injury that occurs during the
199	205		car sharing period; and
200	206		(2) excluded under the terms of the insurer's policy.
201	207		Sec. 113.0057. INSURABLE INTEREST. (a) Notwithstanding
202	208		any other law, a peer-to-peer car sharing program has an insurable
203	209		interest in a shared vehicle during the car sharing period.
204	210		(b) Nothing in this section creates a duty on a peer-to-peer
205	211		car sharing program to maintain the coverage required under this
206	212		subchapter.
207	213		(c) A peer-to-peer car sharing program may own and maintain
208	214		as the named insured one or more policies of automobile insurance
209	215		that separately or in combination provide coverage for:
210	216		(1) liability assumed by the program under an
211	217		agreement;
212	218		(2) liability of the owner;
213	219		(3) damage to or loss of the shared vehicle; or
214	220		(4) liability of the driver.
215	221		Sec. 113.0058. INSURANCE REQUIREMENTS. (a) An insurance
216	222		policy providing coverage described by Section 113.0057(c)(2) or
217	223		(4) must expressly provide liability coverage, without prior notice
218	224		to the insurer, for all shared vehicles during the car sharing
219	225		period, subject to any conditions or exclusions permitted by this
220	226		chapter.
221	227		(b) An insurer authorized to engage in the business of
222	228		insurance in this state or an eligible surplus lines insurer may
223	229		issue an insurance policy described by Section 113.0057(c).
224	230		(c) A peer-to-peer car sharing program is not required to
225	231		itemize or charge the owner or driver the amount payable as premium
226	232		under a policy described by Section 113.0057(c) that is allocable
227	233		to coverage provided to the owner or driver if:
228	234		(1) for the owner, the coverage is included without an
229	235		additional or itemized charge in the fee charged by the program for
230	236		the applicable car share reservation; or
231	237		(2) for the driver, the coverage is included without
232	238		an additional or itemized charge in the cost of the reservation of
233	239		the shared vehicle.
234	240		SUBCHAPTER C. PEER-TO-PEER CAR SHARING PROGRAM RESPONSIBILITIES
235	241		Sec. 113.0101. REQUIRED DISCLOSURES AND NOTICE. (a) Each
236	242		agreement entered into in this state must disclose to the owner and
237	243		the driver:
238	244		(1) any right of the peer-to-peer car sharing program
239	245		to seek indemnification from the owner or driver for economic loss
240	246		sustained by the program resulting from a breach of the agreement;
241	247		(2) that an automobile insurance policy issued to the
242	248		owner for the shared vehicle or to the driver does not provide a
243	249		defense or indemnification for any claim asserted by the
244	250		peer-to-peer car sharing program;
245	251		(3) that the peer-to-peer car sharing program's
246	252		insurance coverage on the owner and the driver is in effect only
247	253		during each car sharing period;
248	254		(4) that, for any use of the shared vehicle by the
249	255		driver after the termination time, the owner and driver may not have
250	256		insurance coverage;
251	257		(5) the daily rate, fees, and, if applicable, any
252	258		insurance costs that are charged to the owner or driver;
253	259		(6) that the owner's automobile insurance may not
254	260		provide coverage for a shared vehicle;
255	261		(7) an emergency telephone number through which
256	262		personnel capable of fielding roadside assistance and other
257	263		customer service inquiries may be reached; and
258	264		(8) if applicable, any condition under which a driver
259	265		must maintain a personal automobile insurance policy with certain
260	266		applicable coverage limits on a primary basis to book a shared
261	267		vehicle.
262	268		(b) When a person registers as an owner on a peer-to-peer
263	269		car sharing program and before the owner makes a shared vehicle
264	270		available for car sharing on the program, the program shall provide
265	271		written notice to the owner that, if the shared vehicle has a lien
266	272		against it, the shared vehicle's use through the program, including
267	273		use without physical damage coverage, may violate the terms of the
268	274		contract with the lienholder.
269	275		Sec. 113.0102. AUTHORIZATION TO DRIVE REQUIRED. A
270	276		peer-to-peer car sharing program may not enter into an agreement
271	277		with a driver unless the driver who will operate the shared vehicle:
272	278		(1) is a resident of this state and holds a driver's
273	279		license issued by this state that authorizes the driver to operate
274	280		vehicles of the class of the shared vehicle;
275	281		(2) is a nonresident of this state and:
276	282		(A) holds a driver's license issued by the state
277	283		or country of the driver's residence that authorizes the driver to
278	284		operate vehicles of the class of the shared vehicle; and
279	285		(B) is at least the same age as that required of a
280	286		resident of this state to drive; or
281	287		(3) is otherwise specifically authorized by this state
282	288		to drive vehicles of the class of the shared vehicle.
283	289		Sec. 113.0103. RECORD RETENTION. (a) A peer-to-peer car
284	290		sharing program shall keep and maintain a record of:
285	291		(1) the name and address of each driver who has entered
286	292		into an agreement with the program; and
287	293		(2) the driver's license number and place of issuance
288	294		of each driver and individual who will operate a shared vehicle
289	295		under the program.
290	296		(b) A peer-to-peer car sharing program shall collect and
291	297		verify records related to use of a shared vehicle under the program,
292	298		including:
293	299		(1) the times the vehicle is used;
294	300		(2) car sharing period pick-up and drop-off locations;
295	301		(3) money received by the owner; and
296	302		(4) fees paid by the driver.
297	303		(c) A peer-to-peer car sharing program shall provide
298	304		information collected under Subsection (b) on request to the owner,
299	305		the owner's insurer, or the driver's insurer to facilitate a claim
300	306		coverage investigation, settlement, negotiation, or litigation.
301	307		(d) A peer-to-peer car sharing program shall retain
302	308		information collected under Subsection (b) for a period of not less
303	309		than the limitations period provided under Section 16.003, Civil
304	310		Practice and Remedies Code, for a personal injury suit.
305	311		Sec. 113.0104. RESPONSIBILITY FOR CAR SHARING EQUIPMENT.
306	312		(a) A peer-to-peer car sharing program is solely responsible for
307	313		any equipment, including a global positioning system device or
308	314		other special equipment, placed in or on a shared vehicle used under
309	315		the program to monitor or facilitate the car sharing transaction.
310	316		The program shall agree to indemnify and hold harmless the
311	317		vehicle's owner for any damage to or theft of such equipment during
312	318		the car sharing period not caused by the owner.
313	319		(b) A peer-to-peer car sharing program may seek indemnity
314	320		from a driver for any loss of or damage to equipment described by
315	321		Subsection (a) that occurs during the car sharing period.
316	322		Sec. 113.0105. AUTOMOBILE SAFETY RECALL. (a) When a person
317	323		registers as an owner on a peer-to-peer car sharing program and
318	324		before the owner makes a shared vehicle available for car sharing on
319	325		the program, the program shall:
320	326		(1) verify that the vehicle does not have a safety
321	327		recall for which repairs have not been made; and
322	328		(2) notify the owner of the requirements under
323	329		Subsection (b).
324	330		(b) If an owner receives notice of a safety recall on a
325	331		shared vehicle:
326	332		(1) before the vehicle has been made available as a
327	333		shared vehicle on a peer-to-peer car sharing program, the owner may
328	334		not make the vehicle available as a shared vehicle on the program
329	335		until the safety recall repair has been made;
330	336		(2) while the vehicle is available as a shared vehicle
331	337		on a peer-to-peer car sharing program, the owner shall remove the
332	338		vehicle from the program as soon as practicably possible after
333	339		receiving the safety recall notice and until the safety recall
334	340		repair has been made; or
335	341		(3) while the vehicle is being used in the possession
336	342		of a driver, the owner shall notify the peer-to-peer car sharing
337	343		program as soon as practicably possible after receiving the safety
338	344		recall notice to allow the owner to address the safety recall
339	345		repair.
340	346		SECTION 2. (a) Chapter 113, Business & Commerce Code, as
341	347		added by this Act, applies only to an automobile insurance policy
342	348		delivered, issued for delivery, or renewed on or after January 1,
343	349		2022. An automobile insurance policy delivered, issued for
344	350		delivery, or renewed before January 1, 2022, is governed by the law
345	351		as it existed immediately before the effective date of this Act, and
346	352		that law is continued in effect for that purpose.
347	353		(b) Chapter 113, Business & Commerce Code, as added by this
348	354		Act, applies only to a peer-to-peer car sharing agreement entered
349	355		into on or after January 1, 2022.
350	356		SECTION 3. This Act takes effect September 1, 2021.
351		-	______________________________ ______________________________
352		-	President of the Senate Speaker of the House
353		-	I certify that H.B. No. 113 was passed by the House on April
354		-	21, 2021, by the following vote: Yeas 148, Nays 0, 1 present, not
355		-	voting.
356		-	______________________________
357		-	Chief Clerk of the House
358		-	I certify that H.B. No. 113 was passed by the Senate on May
359		-	22, 2021, by the following vote: Yeas 30, Nays 0.
360		-	______________________________
361		-	Secretary of the Senate
362		-	APPROVED: _____________________
363		-	Date
364		-	_____________________
365		-	Governor
	357	+	* * * * *