Date of enactment:
2023 Assembly Bill 395 Date of publication*:
2023 WISCONSIN ACT
AN ACT to amend 77.99, 77.995 (2), 344.57 (5), 344.57 (6) and 344.57 (7); and to create 344.51 (4), 344.581 and
632.362 of the statutes; relating to: requirements for and insurance related to peer−to−peer motor vehicle sharing
programs.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 1. 77.99 of the statutes is amended to read:
77.99 Imposition. A local exposition district under
subch. II of ch. 229 may impose a tax at the rate of 3 per-
cent of the sales price on the rental, but not for rerental
and not for rental as a service or repair replacement vehi-
cle, within the district’s jurisdiction under s. 229.43, of
Type 1 automobiles, as defined in s. 340.01 (4) (a), by
establishments primarily engaged in short−term rental
of passenger cars without drivers, for a period of 30 days
or less, unless the sale is exempt from the sales tax under
s. 77.54 (1), (4), (7) (a), (7m), (9) or (9a). If the state
makes a payment under s. 229.50 (7) to a district’s spe-
cial debt service reserve fund, a majority of the district’s
authorized board of directors may vote to increase the
tax rate under this subchapter to 4 percent. A resolution
to adopt the taxes imposed under this section, or an
increase in the tax rate, shall be effective on the first Jan-
uary 1, April 1, July 1, or October 1 following the adop-
tion of the resolution or tax increase. For purposes of
this section, a peer−to−peer motor vehicle sharing pro-
gram, as defined in s. 632.362 (1) (g), or a shared vehicle
owner, as defined in s. 632.362 (1) (i), is not an estab-
lishment primarily engaged in short−term rental of pas-
senger cars without drivers, if the applicable taxes under
s. 77.52 or 77.53 have been paid for the purchase of the
shared motor vehicle.
SECTION 2. 77.995 (2) of the statutes is amended to
read:
77.995 (2) There is imposed a fee at the rate of 5 per-
cent of the sales price on the rental, but not for rerental
and not for rental as a service or repair replacement vehi-
cle of Type 1 automobiles, as defined in s. 340.01 (4) (a);
of recreational vehicles, as defined in s. 340.01 (48r); of
motor homes, as defined in s. 340.01 (33m); and of camp-
ing trailers, as defined in s. 340.01 (6m) by establish-
ments primarily engaged in short−term rental of vehicles
without drivers, for a period of 30 days or less, unless the
sale is exempt from the sales tax under s. 77.54 (1), (4),
(7) (a), (7m) or (9a). There is also imposed a fee at the
rate of 5 percent of the sales price on the rental of limou-
sines. For purposes of this subsection, a peer−to−peer
motor vehicle sharing program, as defined in s. 632.362
(1) (g), or a shared vehicle owner, as defined in s. 632.362
(1) (i), is not an establishment primarily engaged in
short−term rental of vehicles without drivers, if the appli-
cable taxes under s. 77.52 or 77.53 have been paid for the
purchase of the shared motor vehicle.
SECTION 3. 344.51 (4) of the statutes is created to
read:
* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 2023 Assembly Bill 395
344.51 (4) This section does not apply to a motor
vehicle sharing agreement, as defined in s. 632.362 (1)
(b); a peer−to−peer motor vehicle sharing program, as
defined in s. 632.362 (1) (g); or a shared vehicle owner,
as defined in s. 632.362 (1) (i).
SECTION 4. 344.57 (5) of the statutes is amended to
read:
344.57 (5) “Rental agreement” means a written
agreement setting forth the terms and conditions govern-
ing the use of a private passenger vehicle provided for
rent by a rental company. “Rental agreement” does not
include a motor vehicle sharing agreement, as defined in
s. 632.362 (1) (b).
SECTION 5. 344.57 (6) of the statutes is amended to
read:
344.57 (6) “Rental company” means a person in the
business of providing private passenger vehicles for rent
to the public. “Rental company” does not include a per-
son operating a peer−to−peer motor vehicle sharing pro-
gram, as defined in s. 632.362 (1) (g), or a shared vehicle
owner, as defined in s. 632.362 (1) (i).
SECTION 6. 344.57 (7) of the statutes is amended to
read:
344.57 (7) “Renter” means the person who rents a
private passenger vehicle from a rental company under a
rental agreement. “Renter” does not include a shared
vehicle driver, as defined in s. 632.362 (1) (h).
SECTION 7. 344.581 of the statutes is created to read:
344.581 Peer−to−peer motor vehicle sharing. (1)
DEFINITIONS. In this section:
(a) “Motor vehicle sharing agreement” has the mean-
ing given in s. 632.362 (1) (b).
(b) “Motor vehicle sharing duration” has the mean-
ing given in s. 632.362 (1) (d).
(c) “Peer−to−peer motor vehicle sharing program”
has the meaning given in s. 632.362 (1) (g).
(d) “Shared vehicle driver” has the meaning given in
s. 632.362 (1) (h).
(e) Notwithstanding s. 344.01 (2) (cm), “shared vehi-
cle owner” has the meaning given in s. 632.362 (1) (i).
(2) OPERATOR’S LICENSE REQUIRED. A peer−to−peer
motor vehicle sharing program may not enter into a motor
vehicle sharing agreement with an individual who will
operate a shared motor vehicle unless the individual has
attained the age of 18 and satisfies any of the following:
(a) The individual holds an operator’s license under
ch. 343 that authorizes the individual to operate a motor
vehicle of the class of the shared motor vehicle.
(b) The individual is a nonresident of this state who
holds a license issued by the state or country of the indi-
vidual’s residence that authorizes the individual to oper-
ate a motor vehicle of the class of the shared motor vehi-
cle in that state or country.
(3) RESPONSIBILITY FOR CERTAIN EQUIPMENT. A peer−
to−peer motor vehicle sharing program has sole responsi-
bility for any equipment, including a global positioning
system or other special equipment, that is put in or on a
motor vehicle to monitor or facilitate the motor vehicle
sharing transaction. The peer−to−peer motor vehicle
sharing program shall agree to indemnify and hold harm-
less the shared vehicle owner for any damage to or theft
of equipment described under this subsection during the
motor vehicle sharing duration that is not caused by the
shared vehicle owner. The peer−to−peer motor vehicle
sharing program has the right to seek indemnity from the
shared vehicle driver for any loss or damage to equip-
ment described under this subsection during the motor
vehicle sharing duration.
(4) SAFETY RECALLS. (a) At the time a motor vehicle
owner registers as a shared vehicle owner through a peer−
to−peer motor vehicle sharing program and before the
shared vehicle owner makes a motor vehicle available for
sharing, the peer−to−peer motor vehicle sharing program
shall do all of the following:
1. Verify that the shared motor vehicle is not the sub-
ject of a safety recall for which the repairs have not been
made.
2. Notify the shared vehicle owner of the shared vehi-
cle owner’s responsibilities under par. (b).
(b) A shared vehicle owner that receives notice of a
safety recall on the shared motor vehicle shall do all of the
following, as applicable:
1. Refrain from making the motor vehicle available
for sharing until the safety recall repair has been made.
2. If the motor vehicle has been made available for
sharing before receipt of the notice of recall, remove the
motor vehicle from the peer−to−peer motor vehicle shar-
ing program as soon as practicable after receipt of the
notice and until the safety recall repair has been made.
3. If the motor vehicle is in possession of the shared
vehicle driver at the time of receipt of the notice of recall,
notify the peer−to−peer motor vehicle sharing program
of the recall as soon as practicable after receipt of the
notice.
(5) RECORD RETENTION. For each individual who will
operate a shared motor vehicle under a motor vehicle
sharing agreement, a peer−to−peer motor vehicle sharing
program shall keep a record of the individual’s name and
address, the individual’s operator’s license number, and
the state or foreign country that issued the individual’s
operator’s license.
SECTION 8. 632.362 of the statutes is created to read:
632.362 Peer−to−peer motor vehicle sharing. (1)
DEFINITIONS. In this section:
(a) “Motor vehicle” has the meaning given in s.
344.01 (2) (b).
(b) “Motor vehicle sharing agreement” means an
agreement providing the terms and conditions, applica-
ble to a shared vehicle driver and shared vehicle owner,
that govern the use of a shared motor vehicle through a
peer−to−peer motor vehicle sharing program. − 3 − 2023 Wisconsin Act 2023 Assembly Bill 395
(c) “Motor vehicle sharing delivery period” means
the period during which a shared motor vehicle is being
delivered to the location of the motor vehicle sharing ini-
tiation time, if applicable, as documented by the govern-
ing motor vehicle sharing agreement.
(d) “Motor vehicle sharing duration” means the
period that commences with the motor vehicle sharing
delivery period or, if there is no motor vehicle sharing
delivery period, that commences with the motor vehicle
sharing initiation time and, in either case, ends at the
motor vehicle sharing termination time.
(e) “Motor vehicle sharing initiation time” means the
time when the motor vehicle to be shared becomes sub-
ject to the control of the shared vehicle driver at or after
the time the reservation of a shared motor vehicle is
scheduled to begin as documented in the records of a
peer−to−peer motor vehicle sharing program.
(f) “Motor vehicle sharing termination time” means
the earliest of the following:
1. The expiration of the time agreed upon for the use
of the shared motor vehicle according to the terms of the
motor vehicle sharing agreement, if the shared motor
vehicle is delivered to the location that is specified in the
motor vehicle sharing agreement.
2. The time the shared motor vehicle is returned by
the shared vehicle driver to a location as alternatively
agreed upon by the shared vehicle owner and shared
vehicle driver, as communicated through a peer−to−peer
motor vehicle sharing program, which alternatively
agreed upon location shall be incorporated into the motor
vehicle sharing agreement.
3. The time the shared vehicle owner regains posses-
sion and control of the shared motor vehicle.
(g) “Peer−to−peer motor vehicle sharing program”
means a business platform that connects motor vehicle
owners with individuals to enable the authorized use of
a motor vehicle by an individual other than the owner for
financial consideration.
(h) “Shared vehicle driver” means an individual who
is authorized to drive a shared motor vehicle under a
motor vehicle sharing agreement through a peer−to−peer
motor vehicle sharing program and who is not the shared
vehicle owner.
(i) “Shared vehicle owner” means the registered
owner, or a person or entity designated by the registered
owner, of a motor vehicle that is available for sharing
through a peer−to−peer motor vehicle sharing program.
(2) INSURANCE COVERAGE DURING SHARING. (a) A
peer−to−peer motor vehicle sharing program shall,
except as provided in par. (b), assume liability of a shared
vehicle owner for bodily injury and property damage to
3rd parties and for uninsured motorist and personal injury
protection losses in amounts stated in the motor vehicle
sharing agreement that are no less than the amounts spec-
ified in ss. 344.33 (2) and 632.32 (4) (a) during the motor
vehicle sharing duration. An insurer writing a policy
with respect to a peer−to−peer motor vehicle sharing pro-
gram shall comply with s. 632.32 (4m).
(b) Notwithstanding the definition of motor vehicle
sharing termination time, the assumption of liability
under par. (a) does not apply to a shared vehicle owner
when any of the following occurs:
1. The shared vehicle owner makes an intentional or
fraudulent material misrepresentation or omission to the
peer−to−peer motor vehicle sharing program before the
motor vehicle sharing duration in which the loss
occurred.
2. The shared vehicle owner acts in concert with a
shared vehicle driver who fails to return the shared motor
vehicle pursuant to the terms of a motor vehicle sharing
agreement.
(c) Notwithstanding the definition of motor vehicle
sharing termination time, the assumption of liability
under par. (a) applies to bodily injury, property damage,
and uninsured motorist and personal injury protection
losses by damaged 3rd parties as required by ss. 344.33
(2) and 632.32 (4) (a).
(d) A peer−to−peer motor vehicle sharing program
shall ensure that, during each motor vehicle sharing dura-
tion, the shared vehicle owner and the shared vehicle
driver are aware of the availability of underinsured
motorist coverage and are insured under a motor vehicle
liability insurance policy that provides insurance cover-
age in amounts no less than the minimum amounts set
forth in ss. 344.33 (2) and 632.32 (4) (a) and that satisfies
any of the following:
1. The policy recognizes that the shared motor vehi-
cle insured under the policy is made available and used
through a peer−to−peer motor vehicle sharing program.
2. The policy does not exclude use of a shared motor
vehicle by a shared vehicle driver.
(e) The insurance requirement described under par.
(d) may be satisfied by motor vehicle liability insurance
maintained by any of the following:
1. A shared vehicle owner.
2. A shared vehicle driver.
3. A peer−to−peer motor vehicle sharing program.
4. Any combination of the persons described in
subds. 1. to 3.
(f) The coverage maintained under par. (e) that is sat-
isfying the insurance requirement under par. (d) shall be
primary during each motor vehicle sharing duration and,
in the event that a claim occurs in another state with mini-
mum financial responsibility limits higher than the
amounts specified in ss. 344.33 (2) and 632.32 (4) (a)
during the motor vehicle sharing duration, the coverage
maintained under par. (e) shall satisfy the difference in
minimum coverage amounts, up to the applicable policy
limits.
(g) The insurer, insurers, or peer−to−peer motor vehi-
cle sharing program providing coverage under pars. (d) − 4 −2023 Wisconsin Act 2023 Assembly Bill 395
and (e) shall assume primary coverage if any of the fol-
lowing applies:
1. A dispute exists as to who was in control of the
shared motor vehicle at the time of the loss, and the peer−
to−peer motor vehicle sharing program does not have
available, does not retain, or fails to provide the informa-
tion specified under sub. (9).
2. A dispute exists as to whether the shared motor
vehicle was returned to an alternatively agreed upon
location specified in the motor vehicle sharing agree-
ment.
(h) If insurance maintained by a shared vehicle
owner or shared vehicle driver in accordance with par. (e)
has lapsed or does not provide the coverage required,
then insurance maintained by the peer−to−peer motor
vehicle sharing program shall provide the coverage
required under par. (d) beginning with the first dollar of
the claim and shall have the duty to defend the claim
except under circumstances described in par. (b).
(i) Coverage under a motor vehicle insurance policy
maintained by the peer−to−peer motor vehicle sharing
program may not be dependent on another motor vehicle
insurer first denying a claim nor shall another motor vehi-
cle insurance policy be required to first deny a claim.
(j) Nothing in this section does any of the following:
1. Limits the liability of a peer−to−peer motor vehicle
sharing program for any act or omission of the peer−to−
peer motor vehicle sharing program itself that results in
injury to any person as a result of the use of a shared
motor vehicle through the peer−to−peer motor vehicle
sharing program.
2. Limits the ability of a peer−to−peer motor vehicle
sharing program to seek indemnification, under the terms
of a motor vehicle sharing agreement, from the shared
vehicle owner or shared vehicle driver for economic loss
sustained by the peer−to−peer motor vehicle sharing pro-
gram resulting from a breach of the terms of the motor
vehicle sharing agreement.
(3) INSURABLE INTEREST. A peer−to−peer motor vehi-
cle sharing program shall have an insurable interest in a
shared motor vehicle during the motor vehicle sharing
duration. Nothing in this subsection creates liability on
the peer−to−peer motor vehicle sharing program to main-
tain the coverage required under sub. (2) (d). The peer−
to−peer motor vehicle sharing program may own and
maintain as the named insured one or more policies of
motor vehicle liability insurance that provides coverage
for any of the following:
(a) Liabilities to be assumed by the peer−to−peer
motor vehicle sharing program under a motor vehicle
sharing agreement.
(b) Any liability of the shared vehicle owner.
(c) Damage or loss to the shared motor vehicle.
(d) Any liability of the shared vehicle driver.
(4) EXCLUSIONS IN MOTOR VEHICLE LIABILITY POLI-
CIES. (a) An insurer that writes motor vehicle liability
insurance in this state may exclude any coverage and may
refuse to defend or indemnify any claim under a shared
vehicle owner’s liability policy, including any of the fol-
lowing coverages:
1. Liability coverage for bodily injury and property
damage.
2. Personal injury protection.
3. Uninsured and underinsured motorists coverage.
4. Medical payments.
5. Comprehensive physical damage.
6. Collision physical damage.
(b) Nothing in this section invalidates or limits any
exclusion contained in a motor vehicle liability insurance
policy, including any policy in use or approved for use
that excludes coverage for motor vehicles that are made
available for rent, sharing, or hire or for any business use.
(c) Nothing in this section invalidates, limits, or
restricts an insurer’s ability, as otherwise allowed under
law, to underwrite an insurance policy or to cancel or not
renew an insurance policy.
(5) REQUIRED DISCLOSURES. Each peer−to−peer
motor vehicle sharing program shall include in any
agreement made in this state with a shared vehicle owner
or shared vehicle driver all of the following disclosures:
(a) Any right of the peer−to−peer motor vehicle shar-
ing program to seek indemnification from the shared
vehicle owner or shared vehicle driver for economic loss
sustained by the peer−to−peer motor vehicle sharing pro-
gram resulting from a breach of the terms and conditions
of the motor vehicle sharing agreement.
(b) That a motor vehicle liability insurance policy
issued to a shared vehicle owner for the shared motor
vehicle or to the shared vehicle driver does not provide
a defense or indemnification for any claim asserted
against him or her by the peer−to−peer motor vehicle
sharing program.
(c) That the peer−to−peer motor vehicle sharing pro-
gram’s insurance coverage on the shared vehicle owner
and the shared vehicle driver is in effect only during the
motor vehicle sharing duration and that, for any use of the
shared motor vehicle by the shared vehicle driver other
than during the motor vehicle sharing duration, the
shared vehicle driver and the shared vehicle owner might
not have insurance coverage.
(d) The daily rate, fees, and, if applicable, any insur-
ance or protection package costs that are charged to the
shared vehicle owner or the shared vehicle driver.
(e) That the motor vehicle liability insurance policy
of the shared vehicle owner might not provide coverage
for a shared motor vehicle.
(f) An emergency telephone number of personnel
who are capable of fielding roadside assistance and other
customer service inquiries.
(g) Any conditions under which a shared vehicle
driver, in order to make a reservation for a shared motor
vehicle, must maintain a personal motor vehicle insur- − 5 − 2023 Wisconsin Act 2023 Assembly Bill 395
ance policy that is primary coverage with certain applica-
ble coverage limits.
(6) NOTIFICATION OF IMPLICATIONS OF LIEN. At the
time a motor vehicle owner registers as a shared vehicle
owner through a peer−to−peer motor vehicle sharing pro-
gram and before the shared vehicle owner makes a motor
vehicle available for sharing, the peer−to−peer motor
vehicle sharing program shall notify the shared vehicle
owner that, if the shared motor vehicle has a lien against
it, the use of the shared motor vehicle through the peer−
to−peer motor vehicle sharing program, including any
use without coverage for physical damage, may violate
the terms of any agreement with the lienholder.
(7) LIABILITY EXEMPTION. Any peer−to−peer motor
vehicle sharing program and any shared vehicle owner
are exempt from liability consistent with 49 USC 30106
and under any state or local law that imposes liability
solely based on vehicle ownership.
(8) CONTRIBUTION AGAINST INDEMNIFICATION. A
motor vehicle insurer that defends or indemnifies a claim
against a shared motor vehicle that is excluded under the
terms of the policy shall have the right to seek recovery
against the motor vehicle insurer of the peer−to−peer
motor vehicle sharing program if the claim is made
against the shared vehicle owner or the shared vehicle
driver for loss or injury that occurs during the motor vehi-
cle sharing duration and is excluded under the terms of
the policy.
(9) RECORD RETENTION. A peer−to−peer motor vehi-
cle sharing program shall collect and verify records per-
taining to the use of a shared motor vehicle, including
times used, motor vehicle pick up and drop off locations,
fees paid by a shared vehicle driver, and revenues
received by the shared vehicle owner. To facilitate a
claims coverage investigation, settlement, negotiation,
or litigation, the peer−to−peer motor vehicle sharing pro-
gram shall provide, upon request, the records collected
under this subsection to the shared vehicle owner, the
insurer of the shared vehicle owner, or the insurer of the
shared vehicle driver. The peer−to−peer motor vehicle
sharing program shall retain the records collected under
this subsection for a period not less than the applicable
time limit for bringing an action specified under ch. 893.
SECTION 9.0Effective date.
(1) This act takes effect on the first day of the 10th
month beginning after publication.