HOUSE OF REPRESENTATIVES

H.B. NO.

1834

THIRTIETH LEGISLATURE, 2020

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to peer-to-peer motor vehicle sharing.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The Hawaii Revised Statutes is amended by adding a new chapter to title 15 to be appropriately designated and to read as follows:

"Chapter

PEER-TO-PEER MOTOR VEHICLE INDUSTRY

     §   -1  Short title.  This chapter may be cited as the "peer-to-peer industry act".

     §   -2  Scope.  This chapter shall apply to all persons in the business of peer-to-peer motor vehicle sharing in this State.

     §   -3  Definitions.  As used in this chapter:

     "Peer-to-peer agreement" means the terms and conditions applicable to a peer-to-peer owner and a peer-to-peer driver that govern the use of a vehicle through a peer-to-peer program.

     "Peer-to-peer sharing" means the authorized use of a shared vehicle by persons other than the peer-to-peer owner, facilitated by a peer-to-peer program, and does not include a transportation network company as defined in section 431:10C‑701.

     "Peer-to-peer motor vehicle" or "vehicle" means a motor vehicle as defined in section 286-2 that is:

     (1)  Available for rent through a peer-to-peer program;

     (2)  Used non-exclusively for peer-to-peer sharing; and

     (3)  Used by the peer-to-peer owner for personal use outside of peer-to-peer sharing.

     "Delivery period" means the period of time during which a vehicle is being delivered to the location of the start time, if applicable, as documented by the peer-to-peer agreement.

     "Peer-to-peer driver" means an individual who has been authorized to drive a vehicle by the peer-to-peer owner under a peer-to-peer agreement.

     "Peer-to-peer owner" means the registered owner of a vehicle made available to peer-to-peer drivers through a peer-to-peer program.

     "Peer-to-peer program" means any person in the business of operating a business platform that connects peer-to-peer owners with peer-to-peer drivers to enable the peer-to-peer sharing of vehicles for financial consideration.

     "Peer-to-peer period" means the period of time that commences with the delivery period or, if there is no delivery period, that commences with the start time, and ends at the termination time.

     "Start time" means the time when the vehicle becomes subject to the control of the peer-to-peer driver at or after the time the reservation of a peer-to-peer agreement is scheduled to begin as documented in the records of a peer-to- peer program.

     "Termination time" means the earliest of the following events:

     (1)  The expiration of the agreed upon period of time established for the use of a vehicle according to the terms of the peer-to-peer agreement, if the vehicle is delivered to the location agreed upon in the peer-to-peer agreement;

     (2)  When the vehicle is returned to a location as alternatively agreed upon by the peer-to-peer owner and peer-to-peer driver as communicated through a peer-to-peer program; or

     (3)  When the peer-to-peer owner, or authorized designee, takes possession and control of the vehicle.

     §   -4  Disclosures.  (a)  Each peer-to-peer agreement made in this State shall disclose to the peer-to-peer owner and peer-to-peer driver:

     (1)  Any right of the peer-to-peer program to seek indemnification from the peer-to-peer owner or peer-to-peer driver for economic loss sustained by peer-to-peer program resulting from a breach of the terms and conditions of the peer-to-peer agreement;

     (2)  That a motor vehicle insurance policy issued to a peer-to-peer owner for a vehicle, or to a peer-to-peer driver does not provide a defense or indemnification for any claim asserted by a peer-to-peer program;

     (3)  That a peer-to-peer program's financial responsibility afforded to the peer-to-peer owner and peer-to-peer driver is available only during the peer-to-peer period;

     (4)  That, for any use of vehicle by the peer-to-peer driver after the termination time, the peer-to-peer driver and peer-to-peer owner may not have coverage;

     (5)  The daily rate, fees, costs, and, if applicable, any insurance or protection package costs that are charged to peer-to-peer owners or peer-to-peer drivers; and 

     (6)  That the peer-to-peer owner's motor vehicle insurance policy may not provide coverage for the vehicle.

     (b)  Each peer-to-peer agreement made in this State shall disclose to a peer-to-peer driver:

     (1)  An emergency telephone number to personnel capable of fielding roadside assistance and other customer service inquiries; and

     (2)  Any conditions under which a peer-to-peer driver shall maintain a motor vehicle insurance policy, and any required coverage limits, on a primary basis in order to rent a vehicle.

     §   -5  Driver license verification and retention.  (a)  A peer-to-peer program may not enter into a peer-to-peer agreement with a peer-to-peer driver unless the peer-to-peer driver, and any additional authorized operator, of the vehicle:

     (1)  Holds a valid driver license authorizing the peer-to-peer driver to operate the same class of vehicle; or

     (2)  Is a nonresident who:

          (A)  Has a driver license issued by the state or country of the peer-to-peer driver's residence that authorizes the peer-to-peer driver in that state or country to operate the same or comparable class of vehicle; and

          (B)  Is at least the same age as that required of a resident to drive in this State.

     (b)  The peer-to-peer program shall keep a record of:

     (1)  The name and address of the peer-to-peer driver; and

     (2)  The driver license number and place of issuance of the peer-to-peer driver and every other person, if any, who will operate vehicle.

     §   -6  Responsibility for equipment.  A peer-to-peer program shall have sole responsibility for any equipment, including a global positioning system or other special equipment, that is put in or on a vehicle to monitor or facilitate peer-to-peer sharing.  A peer-to-peer program shall agree to indemnify and hold harmless the peer-to-peer owner for any damage to or theft of the equipment during the peer-to-peer period not caused by the peer-to-peer owner.  A peer-to-peer program has the right to seek indemnity from the peer-to-peer driver for any loss or damage to the equipment that occurs during the peer-to-peer period.

     §   -7  Automobile safety recalls.  (a)  At the time a peer-to-peer owner registers their vehicle for use by a peer-to-peer program, and prior to the time the peer-to-peer owner makes the vehicle available for use in the peer-to-peer program, the peer-to-peer program shall:

     (1)  Verify that the vehicle does not have any safety recalls for which repairs have not been made;

     (2)  Notify the peer-to-peer owner of the requirements under subsection (b); and

     (3)  Verify every seventy-two hours that any vehicle available for use through a peer-to-peer program is not subject to an open safety recall for which repairs have not been made.

     (b)  A peer-to-peer owner shall:

     (1)  Not make a vehicle available for use through a peer-to-peer program if the peer-to-peer owner has received notice of a safety recall on the vehicle, until the safety recall repair has been made;

     (2)  Remove any vehicle available through a peer-to-peer program upon receipt of notice of a safety recall as soon as practicably possible but no longer than forty-eight hours after receipt of notice of a safety recall; and

     (3)  Notify the peer-to-peer program of a safety recall within forty-eight hours of receipt of a safety recall when the vehicle is in the possession of a peer-to-peer driver so that the peer-to-peer program may notify the peer-to-peer driver and the vehicle can be removed from use until the peer-to-peer owner effects the necessary safety recall repair.

     §   -8  Operating at an airport.  A peer-to-peer program shall enter into a contract or other agreement with the department of transportation airports division in accordance with section 261-7(a) prior to operating at an airport in this State.

     §   -9  Additional mandatory charges prohibited.  The daily and periodic cost to the peer-to-peer driver shall include the amount of each charge that is required as a condition to the peer-to-peer agreement.  The peer-to-peer program shall disclose as part of any quotations of price, including all quotations contained in advertising or through online quotations and all payments that a peer-to-peer driver is required to make as part of the peer-to-peer agreement.

     §   -10  Unfair trade practices.  Each peer-to-peer program, and each officer, employee, agent, and other representative thereof, shall be prohibited from engaging in any practice constituting a violation of chapter 480.  The following shall be per se violations of section 480-2:

     (1)  The making of any material statement that has the tendency or capacity to mislead or deceive, either orally or in writing, in connection with peer-to-peer sharing, offer for peer-to-peer sharing, or advertisement for peer-to-peer sharing;

     (2)  The omission of any material statement that has the tendency to mislead or deceive, in connection with peer-to-peer sharing, offer for peer-to-peer sharing, or advertisement for peer-to-peer sharing;

     (3)  The making of any statement by the peer-to-peer owner to the effect that the peer-to-peer driver is or will be confined to remain within boundaries specified by the peer-to-peer owner unless payment or an agreement relating to the payment of damages has been made by the peer-to-peer driver;

     (4)  The charging of a peer-to-peer driver more than a reasonable estimate of the actual income lost for loss of use of a vehicle; and

     (5)  A violation of section    -9.

     SECTION 2.  Chapter 431, Hawaii Revised Statutes, is amended by adding a new part to article 10C to be appropriately designated and to read as follows:

"Part  .  peer-to-peer motor vehicle industry

     §431:10C-A  Definitions.  As used in this part:

     "Peer-to-peer agreement" means the terms and conditions applicable to a peer-to-peer owner and a peer-to-peer driver that govern the use of a vehicle through a peer-to-peer program.

     "Peer-to-peer sharing" means the authorized use of a shared vehicle by persons other than the peer-to-peer owner, facilitated by a peer-to-peer program, and does not include a transportation network company as defined in section 431:10C‑701.

     "Peer-to-peer motor vehicle" or "vehicle" means a motor vehicle as defined in section 286-2 that is:

     (1)  Available for rent through a peer-to-peer program;

     (2)  Used non-exclusively for peer-to-peer sharing; and

     (3)  Used by the peer-to-peer owner for personal use outside of peer-to-peer sharing.

     "Delivery period" means the period of time during which a vehicle is being delivered to the location of the start time, if applicable, as documented by the peer-to-peer agreement.  "Peer-to-peer driver" means an individual who has been authorized to drive a vehicle by the peer-to-peer owner under a peer-to-peer agreement.

     "Peer-to-peer owner" means the registered owner of a vehicle made available to peer-to-peer drivers through a peer-to-peer program.

     "Peer-to-peer program" means any person in the business of operating a business platform that connects peer-to-peer owners with peer-to-peer drivers to enable the peer-to-peer sharing of vehicles for financial consideration.

     "Peer-to-peer period" means the period of time that commences with the delivery period or, if there is no delivery period, that commences with the start time, and ends at the termination time.

     "Start time" means the time when the vehicle becomes subject to the control of the peer-to-peer driver at or after the time the reservation of a peer-to-peer agreement is scheduled to begin as documented in the records of a peer-to-peer program.

     "Termination time" means the earliest of the following events:

     (1)  The expiration of the agreed upon period of time established for the use of a vehicle according to the terms of the peer-to-peer agreement, if the vehicle is delivered to the location agreed upon in the peer-to-peer agreement;

     (2)  When the vehicle is returned to a location as alternatively agreed upon by the peer-to-peer owner and peer-to-peer driver as communicated through a peer-to-peer program; or

     (3)  When the peer-to-peer owner, or authorized designee, takes possession and control of the vehicle.

     §431:10C-B  Liability during peer-to-peer period.  (a)  Notwithstanding any other law to the contrary, or any provision in a motor vehicle insurance policy, in the event of a loss or injury that occurs during peer-to-peer period, a peer-to-peer program shall:

     (1)  Be liable for any bodily injury or property damage to third parties, uninsured and underinsured motorist benefits, and personal injury protection losses during the peer-to-peer period in an amount stated in a peer-to-peer agreement, and which amount may not be less than those set forth in section 431:10C-301; and

     (2)  Retain the liability irrespective of a lapse in, or otherwise absence of, any coverage under which a peer-to-peer program is insured.

     (b)  Notwithstanding the definition of "termination time" as set forth in section 431:10C-A, a peer-to-peer program shall not be liable when a peer-to-peer owner:

     (1)  Makes a material, intentional, or fraudulent misrepresentation or omission to a peer-to-peer program before the peer-to-peer period in which the loss occurred; or

     (2)  Acts in concert with a peer-to-peer driver who fails to return the vehicle pursuant to the terms of a peer-to-peer agreement.

     §431:10C-C  Insurance coverage during peer-to-peer period.  (a)  A peer-to-peer program shall ensure that, during each peer-to-peer period, financial responsibility for the vehicle is provided in amounts no less than the minimum amounts set forth in section 431:10C-301, that:

     (1)  Recognizes that the vehicle is made available and used through a peer-to-peer program; or

     (2)  Does not exclude use of the vehicle by a peer-to-peer driver through a peer-to-peer program.

     (b)  The financial responsibility required under subsection (a) may be satisfied by motor vehicle insurance policy, or other acceptable means of demonstrating financial responsibility in this State, voluntarily maintained by:

     (1)  Peer-to-peer owner;

     (2)  Peer-to-peer driver;

     (3)  Peer-to-peer program; or

     (4)  Any combination of peer-to-peer owner, peer-to-peer driver, and a peer-to-peer program.

     (c)  The financial responsibility required in subsection (a), satisfied pursuant to subsection (b), shall be primary for losses during peer-to-peer period.

     (d)  A peer-to-peer program shall:

     (1)  Assume primary liability for a claim when it is in whole or in part providing the financial responsibility required under section 431:10C-B if:

          (A)  A dispute exists as to who was in control of the vehicle at the time of the loss; and

          (B)  The peer-to-peer program does not have available, did not retain, or fails to provide the information required by section 431:10C-F; and

     (2)  Be indemnified by the peer-to-peer owner's motor vehicle insurance policy to the extent of the policy's obligation, if any, if it is determined that the peer-to-peer owner was in control of a vehicle at the time of the loss.

     (e)  If insurance maintained by the peer-to-peer owner or peer-to-peer driver in accordance with subsection (b) has lapsed or does not provide the required financial responsibility, the peer-to-peer program, or its insurer, shall provide the coverage required by subsection (a) beginning with the first dollar of a claim and have the duty to defend the claim except under circumstances as set forth in section 431:10C-B(b).

     (f)  Financial responsibility maintained by the peer-to-peer  program shall not be dependent upon another insurer first denying a claim nor shall another motor vehicle insurance policy be required to first deny a claim.

     (g)  Nothing in this chapter:

     (1)  Limits the liability of the peer-to-peer program for any act or omission of the peer-to-peer program itself that results in injury to any person as a result of the use of a vehicle through a peer-to-peer program; or

     (2)  Limits the ability of the peer-to-peer program to, by  contract, seek indemnification from a peer-to-peer owner or a peer-to-peer driver for economic loss sustained by the peer-to-peer program resulting from a breach of the terms and conditions of the peer-to-peer agreement.

     §431:10C-D  Notification of implications of lien.  At the time a peer-to-peer owner registers a vehicle for use through a peer-to-peer program and prior to the time a peer-to-peer owner makes a vehicle available for use through a peer-to-peer program, the peer-to-peer program shall notify the peer-to-peer owner that, if the vehicle has a lien against it, the use of the vehicle through the peer-to-peer program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.

     §431:10C-E  Exclusions in motor vehicle insurance policies.  (a)  An insurer may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under the peer-to-peer owner's motor vehicle insurance policy, including:

     (1)  Liability coverage for bodily injury and property damage as defined in section 431:10C-301(b);

     (2)  Personal injury protection coverage as defined in  section 431:10C-103.5;

     (3)  Uninsured and underinsured motorist coverage;

     (4)  Medical payments coverage;

     (5)  Comprehensive physical damage coverage; and

     (6)  Collision physical damage coverage.

     (b)  Nothing in this part shall invalidate or limit an exclusion contained in a motor vehicle insurance policy,  including any insurance policy in use or approved for use that excludes coverage for vehicles made available for rent, hire, or any business use, including peer-to-peer vehicles.

     §431:10C-F  Recordkeeping.  (a)  A peer-to-peer program shall collect and verify records pertaining to the use of a vehicle, including times used, fees paid by peer-to-peer drivers, and revenues received by peer-to-peer owners.

     (b)  Pursuant to all applicable federal and state privacy obligations, and after receiving the informed consent of a peer-to-peer owner and a peer-to-peer driver, a peer-to-peer program shall provide the information collected pursuant to subsection (a), upon request, to the peer-to-peer owner, peer-to-peer owner's insurer, and peer-to-peer driver's insurer to facilitate a claim coverage investigation.

     (c)  The peer-to-peer program shall retain the records required for a time period not less than six years.

     §431:10C-G  Contribution against indemnification.  An insurer that defends or indemnifies a claim arising from the operation of a vehicle that is excluded under the terms of its policy shall have the right to seek contribution against a peer-to-peer program if the claim is made against a peer-to-peer owner or peer-to-peer driver for loss or injury that occurs  during a peer-to-peer period.

     §431:10C-H  Insurable interest.  (a)  Notwithstanding any other statute or rule to the contrary, a peer-to-peer program shall have an insurable interest in a vehicle during the peer-to-peer period.

     (b)  Nothing in this section shall impose liability upon a peer-to-peer program to maintain the coverage mandated by section 431:10C-B.

     (c)  A peer-to-peer program may own and maintain as the named insured one or more motor vehicle insurance policies that provides coverage for:

     (1)  Liabilities assumed by the peer-to-peer program under the peer-to-peer agreement;

     (2)  Liability of the peer-to-peer owner;

     (3)  Damage or loss to the vehicle; or

     (4)  Liability of the peer-to-peer driver."

     SECTION 3.  Chapter 251, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§251-     Peer-to-peer motor vehicle sharing surcharge tax.  (a)  There is levied, assessed, and collected each month a peer-to-peer motor vehicle sharing surcharge tax of $      a day, or any portion of a day that a peer-to-peer vehicle is shared.

     (b)  The peer-to-peer program shall be responsible for collection and remittance of the surcharge tax to the department."

     SECTION 4.  Chapter 251, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 251

RENTAL MOTOR VEHICLE, TOUR MOTOR VEHICLE, [AND] CAR-SHARING VEHICLE, AND PEER-TO-PEER MOTOR VEHICLE SURCHARGE TAX"

     SECTION 5.  Section 251-1, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:

     ""Peer-to-peer sharing" means the authorized use of a shared vehicle by persons other than the peer-to-peer owner, facilitated by a peer-to-peer program, and does not include a transportation network company as defined in section 431:10C‑701.

     "Peer-to-peer motor vehicle" or "vehicle" means a motor vehicle as defined in section 286-2 that is:

     (1)  Available for rent through a peer-to-peer program;

     (2)  Used non-exclusively for peer-to-peer sharing; and

     (3)  Used by the peer-to-peer owner for personal use outside of peer-to-peer sharing.

     "Peer-to-peer program" means any person in the business of operating a business platform that connects peer-to-peer owners with peer-to-peer drivers to enable the peer-to-peer sharing of vehicles for financial consideration."

     SECTION 6.  Section 251-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Each person, as a condition precedent to engaging or continuing in [the]:

     (1)  The business of providing rental motor vehicles to the public[, engaging or continuing in the];

     (2)  The tour vehicle operator business[, or engaging or continuing in a];

     (3)  A car-sharing organization business; or

     (4)  A peer-to-peer program,

shall register with the director.  A person required to so register shall make a one-time payment of $20, upon receipt of which the director shall issue a certificate of registration in [such] a form as the director determines, attesting that the registration has been made.  The registration shall not be transferable and shall be valid only for the person in whose name it is issued and for the transaction of business at the place designated therein.  The registration, or in lieu thereof a notice stating where the registration may be inspected and examined, shall at all times be conspicuously displayed at the place for which it is issued."

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on January 1, 2021.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Motor Vehicles; Sharing; Peer-to-Peer

 

Description:

Authorizes peer-to-peer motor vehicle sharing programs to connect owners and drivers for financial consideration.

 

 

 

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