Texas 2021 - 87th Regular

Texas Senate Bill SB2106 Compare Versions

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1	1	87R252 JES-F
2	2	By: Schwertner S.B. No. 2106
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to peer-to-peer car sharing programs.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is
10	10	amended by adding Chapter 113 to read as follows:
11	11	CHAPTER 113. PEER-TO-PEER CAR SHARING PROGRAMS
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 113.0001. DEFINITIONS. In this chapter:
14	14	(1) "Agreement" means the terms and conditions
15	15	applicable to an owner and driver that govern the use of a shared
16	16	vehicle through a peer-to-peer car sharing program. The term does
17	17	not include a rental agreement as defined by Section 91.001.
18	18	(2) "Car sharing period" means the period of time
19	19	beginning with the delivery period or, if there is no delivery
20	20	period, the start time and ending at the termination time.
21	21	(3) "Delivery period" means the period of time during
22	22	which a shared vehicle is being delivered to the location of the
23	23	start time, if applicable, under the agreement.
24	24	(4) "Driver" means an individual who has been
25	25	authorized to drive the shared vehicle by the vehicle's owner under
26	26	an agreement.
27	27	(5) "Owner" means the registered owner, or a person or
28	28	entity designated by the registered owner, of a vehicle made
29	29	available for sharing to drivers through a peer-to-peer car sharing
30	30	program.
31	31	(6) "Peer-to-peer car sharing" means the authorized
32	32	use of a vehicle by an individual other than the vehicle's owner
33	33	through a peer-to-peer car sharing program. The term does not
34	34	include the use of a private passenger vehicle from a rental company
35	35	under the terms of a rental agreement as those terms are defined by
36	36	Section 91.001.
37	37	(7) "Peer-to-peer car sharing program" means a
38	38	business platform that connects owners with drivers to enable
39	39	vehicle sharing for financial consideration. The term does not
40	40	include a rental company as defined by Section 91.001.
41	41	(8) "Shared vehicle" means a vehicle that is available
42	42	for sharing through a peer-to-peer car sharing program. The term
43	43	does not include the use of a private passenger vehicle from a
44	44	rental company under the terms of a rental agreement as those terms
45	45	are defined by Section 91.001.
46	46	(9) "Start time" means the time when the shared
47	47	vehicle becomes subject to the control of the driver at or after the
48	48	time the reservation of a shared vehicle is scheduled to begin under
49	49	the agreement.
50	50	(10) "Termination time" means the earliest of:
51	51	(A) the expiration of the period of time
52	52	established for the use of a shared vehicle according to the
53	53	agreement if the shared vehicle is returned to the location
54	54	specified in the agreement;
55	55	(B) the time when the shared vehicle is returned
56	56	to a location as alternatively agreed on by the owner and driver as
57	57	communicated through a peer-to-peer car sharing program; or
58	58	(C) the time when the owner or owner's authorized
59	59	designee takes possession and control of the shared vehicle.
60	60	Sec. 113.0002. APPLICABILITY OF CHAPTER. This chapter
61	61	applies to automobile insurance policies in this state, including
62	62	policies issued by a Lloyd's plan, a reciprocal or interinsurance
63	63	exchange, or a county mutual insurance company.
64	64	Sec. 113.0003. CONSTRUCTION OF CHAPTER. Nothing in this
65	65	chapter may be construed to:
66	66	(1) limit the liability of a peer-to-peer car sharing
67	67	program for any act or omission of the program itself that results
68	68	in injury to a person as a result of the use of a shared vehicle
69	69	through the program;
70	70	(2) limit the ability of a peer-to-peer car sharing
71	71	program to, by contract, seek indemnification from the owner or
72	72	driver for economic loss sustained by the program resulting from a
73	73	breach of the agreement;
74	74	(3) have implications affecting construction of
75	75	statutes outside this chapter, including statutes related to motor
76	76	vehicle regulation, airport regulation, or taxation; or
77	77	(4) invalidate or limit an exclusion contained in an
78	78	automobile insurance policy, including an insurance policy in use
79	79	or approved for use that excludes coverage for automobiles made
80	80	available for rent, sharing, hire, or any business use.
81	81	SUBCHAPTER B. ASSUMPTION OF LIABILITY AND INSURANCE REQUIREMENTS
82	82	Sec. 113.0051. ASSUMPTION OF LIABILITY BY PEER-TO-PEER CAR
83	83	SHARING PROGRAM. (a) Except as provided by Subsection (b), a
84	84	peer-to-peer car sharing program shall assume liability of an owner
85	85	for bodily injury or property damage to third parties or uninsured
86	86	or underinsured motorist or personal injury protection losses by
87	87	damaged third parties during the car sharing period in an amount
88	88	stated in the agreement, which may not be less than the amounts
89	89	provided by Subchapter D, Chapter 601, Transportation Code.
90	90	(b) A peer-to-peer car sharing program is not required to
91	91	assume liability of an owner if the owner:
92	92	(1) makes an intentional or fraudulent material
93	93	misrepresentation or omission to the program before the car sharing
94	94	period in which the loss occurred; or
95	95	(2) acts in concert with a driver who fails to return
96	96	the shared vehicle in accordance with the agreement.
97	97	Sec. 113.0052. INSURANCE REQUIRED. (a) A peer-to-peer car
98	98	sharing program shall ensure that, during each car sharing period,
99	99	the owner and the driver are insured under an automobile liability
100	100	insurance policy that meets the requirements of this subchapter.
101	101	(b) Insurance maintained for purposes of this subchapter:
102	102	(1) must provide coverage in amounts not less than the
103	103	amounts described by Section 601.072, Transportation Code;
104	104	(2) must recognize that the shared vehicle insured
105	105	under the policy is made available and used through a peer-to-peer
106	106	car sharing program;
107	107	(3) must provide primary coverage during the car
108	108	sharing period; and
109	109	(4) may not exclude the use of a shared vehicle by a
110	110	driver.
111	111	(c) The coverage requirements of this subchapter may be
112	112	satisfied by:
113	113	(1) automobile insurance maintained by the owner;
114	114	(2) automobile insurance maintained by the driver;
115	115	(3) automobile insurance maintained by the
116	116	peer-to-peer car sharing program; or
117	117	(4) a combination of Subdivisions (1), (2), and (3).
118	118	Sec. 113.0053. AUTOMOBILE INSURANCE POLICY EXCLUSIONS. An
119	119	automobile insurer may exclude any coverage and the duty to defend
120	120	or indemnify for any claim afforded under an owner's automobile
121	121	insurance policy, including an exclusion of:
122	122	(1) liability coverage for bodily injury and property
123	123	damage;
124	124	(2) personal injury protection coverage;
125	125	(3) uninsured and underinsured motorist coverage;
126	126	(4) medical payments coverage;
127	127	(5) comprehensive physical damage coverage; and
128	128	(6) collision physical damage coverage.
129	129	Sec. 113.0054. CLAIMS RELATED TO PEER-TO-PEER CAR SHARING.
130	130	(a) A peer-to-peer car sharing program shall assume primary
131	131	liability for a claim when the program is wholly or partly providing
132	132	the insurance required under this subchapter and:
133	133	(1) a dispute exists as to who was in control of the
134	134	shared vehicle at the time of the loss; and
135	135	(2) the program does not have available, did not
136	136	retain, or fails to provide the information required by
137	137	Section 113.0103.
138	138	(b) A shared vehicle's insurer shall indemnify the
139	139	peer-to-peer car sharing program to the extent of its obligation,
140	140	if any, under the applicable insurance policy if it is determined
141	141	that the vehicle's owner was in control of the vehicle at the time
142	142	of the loss.
143	143	(c) If, at the time of a claim, the automobile insurance
144	144	maintained by an owner or driver has lapsed or does not provide the
145	145	coverage required under this subchapter, insurance maintained by a
146	146	peer-to-peer car sharing program shall provide the coverage
147	147	beginning with the first dollar of a claim and the program shall
148	148	defend the claim.
149	149	(d) Coverage under an automobile insurance policy
150	150	maintained by the peer-to-peer car sharing program may not be
151	151	dependent on another automobile insurer first denying a claim.
152	152	Another automobile insurance policy is not required to first deny a
153	153	claim.
154	154	Sec. 113.0055. VICARIOUS LIABILITY. Notwithstanding any
155	155	other law, a peer-to-peer car sharing program and an owner are not
156	156	liable under a theory of vicarious liability in accordance with 49
157	157	U.S.C. Section 30106 or under any state or local law that imposes
158	158	liability solely based on vehicle ownership.
159	159	Sec. 113.0056. CONTRIBUTION. An automobile insurer that
160	160	defends or indemnifies a claim against a shared vehicle that is
161	161	excluded under the terms of the insurer's policy may seek
162	162	contribution against the peer-to-peer car sharing program's
163	163	automobile insurer if the claim is:
164	164	(1) made against the shared vehicle's owner or the
165	165	shared vehicle's driver for loss or injury that occurs during the
166	166	car sharing period; and
167	167	(2) excluded under the terms of the insurer's policy.
168	168	Sec. 113.0057. INSURABLE INTEREST. (a) Notwithstanding
169	169	any other law, a peer-to-peer car sharing program has an insurable
170	170	interest in a shared vehicle during the car sharing period.
171	171	(b) Nothing in this section creates a duty on a peer-to-peer
172	172	car sharing program to maintain the coverage required under this
173	173	subchapter.
174	174	(c) A peer-to-peer car sharing program may own and maintain
175	175	as the named insured one or more policies of automobile insurance
176	176	that provide coverage for:
177	177	(1) liability assumed by the program under an
178	178	agreement;
179	179	(2) liability of the owner;
180	180	(3) damage to or loss of the shared vehicle; or
181	181	(4) liability of the driver.
182	182	SUBCHAPTER C. PEER-TO-PEER CAR SHARING PROGRAM RESPONSIBILITIES
183	183	Sec. 113.0101. REQUIRED DISCLOSURES AND NOTICE. (a) Each
184	184	agreement entered into in this state must disclose to the owner and
185	185	the driver:
186	186	(1) any right of the peer-to-peer car sharing program
187	187	to seek indemnification from the owner or driver for economic loss
188	188	sustained by the program resulting from a breach of the agreement;
189	189	(2) that an automobile insurance policy issued to the
190	190	owner for the shared vehicle or to the driver does not provide a
191	191	defense or indemnification for any claim asserted by the
192	192	peer-to-peer car sharing program;
193	193	(3) that the peer-to-peer car sharing program's
194	194	insurance coverage on the owner and the driver is in effect only
195	195	during each car sharing period;
196	196	(4) that, for any use of the shared vehicle by the
197	197	driver after the termination time, the owner and driver may not have
198	198	insurance coverage;
199	199	(5) the daily rate, fees, and, if applicable, any
200	200	insurance or protection package costs that are charged to the owner
201	201	or driver;
202	202	(6) that the owner's automobile insurance may not
203	203	provide coverage for a shared vehicle;
204	204	(7) an emergency telephone number through which
205	205	personnel capable of fielding roadside assistance and other
206	206	customer service inquiries may be reached; and
207	207	(8) if applicable, any condition under which a driver
208	208	must maintain a personal automobile insurance policy with certain
209	209	applicable coverage limits on a primary basis to book a shared
210	210	vehicle.
211	211	(b) When a person registers as an owner on a peer-to-peer
212	212	car sharing program and before the owner makes a shared vehicle
213	213	available for car sharing on the program, the program shall provide
214	214	written notice to the owner that, if the shared vehicle has a lien
215	215	against it, the shared vehicle's use through the program, including
216	216	use without physical damage coverage, may violate the terms of the
217	217	contract with the lienholder.
218	218	Sec. 113.0102. AUTHORIZATION TO DRIVE REQUIRED. A
219	219	peer-to-peer car sharing program may not enter into an agreement
220	220	with a driver unless the driver who will operate the shared vehicle:
221	221	(1) is a resident of this state and holds a driver's
222	222	license issued by this state that authorizes the driver to operate
223	223	vehicles of the class of the shared vehicle;
224	224	(2) is a nonresident of this state and:
225	225	(A) holds a driver's license issued by the state
226	226	or country of the driver's residence that authorizes the driver to
227	227	operate vehicles of the class of the shared vehicle; and
228	228	(B) is at least the same age as that required of a
229	229	resident of this state to drive; or
230	230	(3) is otherwise specifically authorized by this state
231	231	to drive vehicles of the class of the shared vehicle.
232	232	Sec. 113.0103. RECORD RETENTION. (a) A peer-to-peer car
233	233	sharing program shall keep and maintain a record of:
234	234	(1) the name and address of each driver who has entered
235	235	into an agreement with the program; and
236	236	(2) the driver's license number and place of issuance
237	237	of each driver and individual who will operate a shared vehicle
238	238	under the program.
239	239	(b) A peer-to-peer car sharing program shall collect and
240	240	verify records related to use of a shared vehicle under the program,
241	241	including:
242	242	(1) the times the vehicle is used;
243	243	(2) money received by the owner; and
244	244	(3) fees paid by the driver.
245	245	(c) On request, a peer-to-peer car sharing program shall
246	246	provide information collected under Subsection (b) to the owner,
247	247	the owner's insurer, or the driver's insurer to facilitate a claim
248	248	coverage investigation.
249	249	(d) A peer-to-peer car sharing program shall retain
250	250	information collected under Subsection (b) for a period of not less
251	251	than the limitations period provided under Section 16.003, Civil
252	252	Practice and Remedies Code, for a personal injury suit.
253	253	Sec. 113.0104. RESPONSIBILITY FOR CAR SHARING EQUIPMENT.
254	254	(a) A peer-to-peer car sharing program is solely responsible for
255	255	any equipment, including a global positioning system device or
256	256	other special equipment, placed in or on a shared vehicle used under
257	257	the program to monitor or facilitate the car sharing transaction.
258	258	The program shall agree to indemnify and hold harmless the
259	259	vehicle's owner for any damage to or theft of such equipment during
260	260	the car sharing period not caused by the owner.
261	261	(b) A peer-to-peer car sharing program may seek indemnity
262	262	from a driver for any loss of or damage to equipment described by
263	263	Subsection (a) that occurs during the car sharing period.
264	264	Sec. 113.0105. AUTOMOBILE SAFETY RECALL. (a) When a person
265	265	registers as an owner on a peer-to-peer car sharing program and
266	266	before the owner makes a shared vehicle available for car sharing on
267	267	the program, the program shall:
268	268	(1) verify that the vehicle does not have a safety
269	269	recall for which repairs have not been made; and
270	270	(2) notify the owner of the requirements under
271	271	Subsection (b).
272	272	(b) If an owner receives notice of a safety recall on a
273	273	shared vehicle:
274	274	(1) before the vehicle has been made available as a
275	275	shared vehicle on a peer-to-peer car sharing program, the owner may
276	276	not make the vehicle available as a shared vehicle on the program
277	277	until the safety recall repair has been made;
278	278	(2) while the vehicle is available as a shared vehicle
279	279	on a peer-to-peer car sharing program, the owner shall remove the
280	280	vehicle from the program as soon as practicably possible after
281	281	receiving the safety recall notice and until the safety recall
282	282	repair has been made; or
283	283	(3) while the vehicle is being used in the possession
284	284	of a driver, the owner shall notify the peer-to-peer car sharing
285	285	program as soon as practicably possible after receiving the safety
286	286	recall notice to allow the owner to address the safety recall
287	287	repair.
288	288	SECTION 2. (a) Chapter 113, Business & Commerce Code, as
289	289	added by this Act, applies only to an automobile insurance policy
290	290	delivered, issued for delivery, or renewed on or after January 1,
291	291	2022. An automobile insurance policy delivered, issued for
292	292	delivery, or renewed before January 1, 2022, is governed by the law
293	293	as it existed immediately before the effective date of this Act, and
294	294	that law is continued in effect for that purpose.
295	295	(b) Chapter 113, Business & Commerce Code, as added by this
296	296	Act, applies only to a peer-to-peer car sharing agreement entered
297	297	into on or after January 1, 2022.
298	298	SECTION 3. This Act takes effect September 1, 2021.