SF 1516

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/10/2023 08:46am

A bill for an act
relating to insurance; establishing a peer-to-peer car sharing program; amending
Minnesota Statutes 2022, sections 72A.125, subdivision 1; 297A.64, subdivision
4; proposing coding for new law in Minnesota Statutes, chapter 65B; repealing
Minnesota Statutes 2022, section 65B.49, subdivision 5a.

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

Section 1.

new text begin [65B.90] SHORT TITLE.
new text end

new text begin Sections 65B.91 to 65B.95 may be cited as the "Peer-to-Peer Car Sharing Program Act."
new text end

Sec. 2.

new text begin [65B.91] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application of definitions. new text end

new text begin Except as otherwise provided, the definitions
in this section apply to sections 65B.91 to 65B.95.
new text end

new text begin Subd. 2. new text end

new text begin Car sharing delivery period. new text end

new text begin "Car sharing delivery period" means the period
of time during which a shared motor vehicle is being delivered to the location of the car
sharing start time, if applicable, as documented by the governing car sharing program
agreement.
new text end

new text begin Subd. 3. new text end

new text begin Car sharing period. new text end

new text begin "Car sharing period" means the period of time that: (1)
commences with the car sharing delivery period or, if there is no car sharing delivery period,
that commences with the car sharing start time; and (2) ends at the car sharing termination
time.
new text end

new text begin Subd. 4. new text end

new text begin Car sharing program agreement. new text end

new text begin "Car sharing program agreement" means
the terms and conditions applicable to a shared motor vehicle owner and a shared motor
vehicle driver that govern the use of a shared motor vehicle through a peer-to-peer car
sharing program. A car sharing program agreement is not a rental or lease contract, as
defined in section 169.7995. Car sharing program agreement does not mean an agreement
for lease or rental within the meaning of section 297A.64.
new text end

new text begin Subd. 5. new text end

new text begin Car sharing start time. new text end

new text begin "Car sharing start time" means the time when the
shared motor vehicle becomes subject to the control of the shared motor vehicle driver at
or after the time a shared motor vehicle reservation is scheduled to begin, as documented
in the peer-to-peer car sharing program records.
new text end

new text begin Subd. 6. new text end

new text begin Car sharing termination time. new text end

new text begin "Car sharing termination time" means the
earliest of the following events:
new text end

new text begin (1) the expiration of the agreed upon time established for the shared motor vehicle use,
according to the terms of the car sharing program agreement if the shared vehicle is delivered
to the location agreed upon in the car sharing program agreement;
new text end

new text begin (2) when the shared vehicle is returned to a location as alternatively agreed upon by the
shared motor vehicle owner and shared motor vehicle driver, as communicated through a
peer-to-peer car sharing program and incorporated into the car sharing program agreement;
or
new text end

new text begin (3) when the shared motor vehicle owner or the shared motor vehicle owner's authorized
designee takes possession and control of the shared motor vehicle.
new text end

new text begin Subd. 7. new text end

new text begin Peer-to-peer car sharing. new text end

new text begin "Peer-to-peer car sharing" means the authorized use
of a motor vehicle by an individual other than the motor vehicle's owner through a
peer-to-peer car sharing program. Peer-to-peer car sharing is not a lease or rental in Minnesota
for not more than 28 days of a passenger automobile as used in section 297A.64, subdivision
1. Peer-to-peer car sharing is not a lease or rental in Minnesota for not more than 28 days,
within the meaning of section 297A.64, subdivision 1, of a passenger automobile as defined
in section 168.002, subdivision 24; of a van as defined in section 168.002, subdivision 40;
or a pickup truck as defined in section 168.002, subdivision 26.
new text end

new text begin Subd. 8. new text end

new text begin Peer-to-peer car sharing program. new text end

new text begin "Peer-to-peer car sharing program" means
a business platform that connects motor vehicle owners with drivers to enable the motor
vehicle sharing for financial consideration. A peer-to-peer car sharing program is not an
auto rental company as defined in section 72A.125, subdivision 1. A peer-to-peer car sharing
program is not an entity engaged in lease or rental in Minnesota for not more than 28 days,
within the meaning of section 297A.64, subdivision 1, of a passenger automobile as defined
in section 168.002, subdivision 24; of a van as defined in section 168.002, subdivision 40;
or a pickup truck as defined in section 168.002, subdivision 26.
new text end

new text begin Subd. 9. new text end

new text begin Shared motor vehicle. new text end

new text begin "Shared motor vehicle" means a motor vehicle that is
available for sharing through a peer-to-peer car sharing program. A shared motor vehicle
is not a lease or rental in Minnesota for not more than 28 days, within the meaning of section
297A.64, subdivision 1, of a passenger automobile as defined in section 168.002, subdivision
24; of a van as defined in section 168.002, subdivision 40; or a pickup truck as defined in
section 168.002, subdivision 26.
new text end

new text begin Subd. 10. new text end

new text begin Shared motor vehicle driver. new text end

new text begin "Shared motor vehicle driver" means an
individual authorized to drive the shared motor vehicle by the shared motor vehicle owner
under a car sharing program agreement. Shared motor vehicle driver does not mean a person
who rents or leases a motor vehicle in Minnesota for a time period of less than 180 days,
as used in section 169.7995, subdivision 1.
new text end

new text begin Subd. 11. new text end

new text begin Shared motor vehicle owner. new text end

new text begin "Shared motor vehicle owner" means the
registered owner, or a person or entity designated by the registered owner, of a motor vehicle
made available for sharing with shared motor vehicle drivers through a peer-to-peer car
sharing program. A shared motor vehicle owner is not an auto rental company as defined
in section 72A.125, subdivision 1. A shared motor vehicle owner is not an automobile rental
agency as used in section 368.01, subdivision 12. A shared motor vehicle owner is not an
entity engaged in lease or rental in Minnesota for not more than 28 days, within the meaning
of section 297A.64, subdivision 1, of a passenger automobile as defined in section 168.002,
subdivision 24; of a van as defined in section 168.002, subdivision 40; or a pickup truck as
defined in section 168.002, subdivision 26.
new text end

Sec. 3.

new text begin [65B.92] INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Insurance coverage during car sharing period. new text end

new text begin (a) Except as provided
in paragraph (b), a peer-to-peer car sharing program assumes liability of a shared motor
vehicle owner for: (1) bodily injury or property damage to a third party, uninsured motorist,
or underinsured motorist; or (2) personal injury protection losses. The assumption of liability
under this subdivision occurs only during the car sharing period and provides coverage in
the amount stated in the peer-to-peer car sharing program agreement. The amount must not
be less than the amount set forth in section 65B.49, subdivision 3.
new text end

new text begin (b) Notwithstanding the definition of car sharing termination time under section 65B.91,
subdivision 6, the assumption of liability under paragraph (a) does not apply to a shared
motor vehicle owner when:
new text end

new text begin (1) a shared motor vehicle owner makes an intentional or fraudulent material
misrepresentation or omission to the peer-to-peer car sharing program before the car sharing
period during which the loss occurred; or
new text end

new text begin (2) the shared motor vehicle owner acts in concert with a shared motor vehicle driver
who fails to return the shared motor vehicle pursuant to the terms of the car sharing program
agreement.
new text end

new text begin (c) Notwithstanding the definition of car sharing termination time under section 65B.91,
subdivision 6, the assumption of liability under paragraph (a) applies to bodily injury,
property damage, uninsured and underinsured motorists, or personal injury protection losses
by damaged third parties, as required by section 65B.49, subdivision 3.
new text end

new text begin (d) A peer-to-peer car sharing program must ensure that during each car sharing period
the shared motor vehicle owner and the shared motor vehicle driver are insured under a
motor vehicle liability insurance policy that provides insurance coverage in amounts no less
than the minimum amounts set forth under section 65B.49, subdivision 3, and that:
new text end

new text begin (1) recognizes the shared motor vehicle insured under the policy is made available and
used through a peer-to-peer car sharing program; or
new text end

new text begin (2) does not exclude use of a shared motor vehicle by a shared motor vehicle driver.
new text end

new text begin (e) The insurance described under paragraph (d) may be satisfied by motor vehicle
liability insurance maintained by:
new text end

new text begin (1) a shared motor vehicle owner;
new text end

new text begin (2) a shared motor vehicle driver;
new text end

new text begin (3) a peer-to-peer car sharing program; or
new text end

new text begin (4) a shared motor vehicle owner, a shared motor vehicle driver, and a peer-to-peer car
sharing program.
new text end

new text begin (f) The insurance described in paragraph (e) that satisfies the insurance requirement
under paragraph (d) must be primary during each car sharing period. In the event that a
claim occurs during the car sharing period in another state that has minimum financial
responsibility limits higher than the amount set forth in section 65B.49, subdivision 3, the
coverage maintained under paragraph (e) must satisfy the difference in minimum coverage
amounts, up to the applicable policy limits.
new text end

new text begin (g) The insurer, insurers, or peer-to-peer car sharing program providing coverage under
paragraph (d) or (e) must assume primary liability for a claim when:
new text end

new text begin (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 car sharing program does not have available, did not retain, or
fails to provide the information required by subdivision 4; or
new text end

new text begin (2) a dispute exists as to whether the shared vehicle was returned to the alternatively
agreed upon location, as required under section 65B.91, subdivision 6, clause (2).
new text end

new text begin (h) If insurance maintained by a shared motor vehicle owner or shared motor vehicle
driver under paragraph (e) has lapsed or does not provide the required coverage, a
peer-to-peer car sharing program: (1) must maintain insurance that provides the coverage
required by paragraph (d), beginning with the first dollar of a claim; and (2) has the duty
to defend the claim, except under the circumstances set forth under paragraph (b).
new text end

new text begin (i) Coverage under an automobile insurance policy maintained by the peer-to-peer car
sharing program must not be dependent on another automobile insurer first denying a claim,
nor must another automobile insurance policy be required to first deny a claim.
new text end

new text begin (j) Nothing in this subdivision:
new text end

new text begin (1) limits the liability of the peer-to-peer car sharing program for any act or omission
of the peer-to-peer car sharing program itself that results in injury to any person as a result
of the use of a shared motor vehicle through a peer-to-peer car sharing program; or
new text end

new text begin (2) limits the ability of the peer-to-peer car sharing program to, by contract, seek
indemnification from the shared motor vehicle owner or the shared motor vehicle driver
for economic loss sustained by the peer-to-peer car sharing program resulting from a breach
of the car sharing program agreement's terms and conditions.
new text end

new text begin Subd. 2. new text end

new text begin Notification of implications of lien. new text end

new text begin At the time a vehicle owner registers as
a shared motor vehicle owner on a peer-to-peer car sharing program and before the shared
motor vehicle owner makes a shared motor vehicle available for car sharing on the
peer-to-peer car sharing program, the peer-to-peer car sharing program must notify the
shared vehicle owner that if the shared motor vehicle has a lien against it, the shared motor
vehicle's use through a peer-to-peer car sharing program, including use without physical
damage coverage, may violate the terms of the shared motor vehicle owner's contract with
the lienholder.
new text end

new text begin Subd. 3. new text end

new text begin Exclusions in motor vehicle liability insurance policies. new text end

new text begin (a) An authorized
insurer that writes motor vehicle liability insurance in Minnesota may exclude any and all
coverage, including the duty to defend or indemnify for any claim, afforded under a shared
motor vehicle owner's motor vehicle liability insurance policy. An exclusion under this
subdivision may include but is not limited to:
new text end

new text begin (1) liability coverage for bodily injury and property damage;
new text end

new text begin (2) personal injury protection coverage;
new text end

new text begin (3) uninsured and underinsured motorist coverage;
new text end

new text begin (4) medical payments coverage;
new text end

new text begin (5) comprehensive physical damage coverage; and
new text end

new text begin (6) collision physical damage coverage.
new text end

new text begin (b) Nothing in sections 65B.91 to 65B.95 invalidates or limits an exclusion contained
in a motor vehicle liability insurance policy, including any insurance policy in use or
approved for use that excludes coverage for motor vehicles made available for rent, sharing,
hire, or for any business use.
new text end

new text begin (c) Nothing in sections 65B.91 to 65B.95: (1) invalidates, limits, or restricts an insurer's
ability under existing law to underwrite any insurance policy; or (2) limits or restricts an
insurer's ability under existing law to cancel and nonrenew policies.
new text end

new text begin Subd. 4. new text end

new text begin Record keeping; use of vehicle in car sharing program. new text end

new text begin A peer-to-peer car
sharing program must collect and verify records pertaining to the use of a motor vehicle,
including but not limited to the times used, car sharing period pick-up and drop-off locations,
fees paid by the shared motor vehicle driver, and revenues received by the shared motor
vehicle owner. A peer-to-peer car sharing program must provide the information upon
request to the shared motor vehicle owner, the shared motor vehicle owner's insurer, or the
shared motor vehicle driver's insurer to facilitate a claim coverage investigation, settlement,
negotiation, or litigation. The peer-to-peer car sharing program must retain the records for
a time period not less than the applicable personal injury statute of limitations.
new text end

new text begin Subd. 5. new text end

new text begin Exemption; vicarious liability. new text end

new text begin A peer-to-peer car sharing program and a
shared motor vehicle owner are exempt from vicarious liability consistent with United States
Code, title 49, section 30106, and under any state or local law that imposes liability solely
based on vehicle ownership, including without limitation section 169.09, subdivision 5a.
new text end

new text begin Subd. 6. new text end

new text begin Contribution against indemnification. new text end

new text begin A motor vehicle insurer that defends
or indemnifies a claim against a shared motor vehicle that is excluded under the terms of
the shared motor vehicle's policy has the right to seek recovery against the peer-to-peer car
sharing program's motor vehicle insurer if the claim is: (1) made against the shared motor
vehicle owner or the shared motor vehicle driver for loss or injury that occurs during the
car sharing period; and (2) excluded under the terms of the shared motor vehicle's policy.
new text end

new text begin Subd. 7. new text end

new text begin Insurable interest. new text end

new text begin (a) Notwithstanding any other law, statute, rule, or regulation
to the contrary, a peer-to-peer car sharing program must have an insurable interest in a
shared motor vehicle during the car sharing period.
new text end

new text begin (b) Nothing in this subdivision creates liability on a peer-to-peer car sharing program
to maintain the coverage mandated by subdivision 1.
new text end

new text begin (c) A peer-to-peer car sharing program may own and maintain as the named insured one
or more motor vehicle liability insurance policies that separately or in combination provide
coverage for:
new text end

new text begin (1) liabilities assumed by the peer-to-peer car sharing program under a peer-to-peer car
sharing program agreement;
new text end

new text begin (2) any liability of the shared motor vehicle owner;
new text end

new text begin (3) damage or loss to the shared motor vehicle; or
new text end

new text begin (4) any liability of the shared motor vehicle driver.
new text end

new text begin (d) A policy that provides the insurance described in paragraph (c), clauses (2) and (4),
must expressly provide liability coverage, without prior notice to the insurer, for all shared
motor vehicles during the car sharing period, subject to any conditions or exclusions permitted
by this section.
new text end

new text begin (e) The insurance described in paragraph (c) may be issued by any authorized insurer
or any eligible surplus lines insurer.
new text end

new text begin (f) A peer-to-peer car sharing company is not required to itemize or charge the shared
vehicle owner or shared vehicle driver the amount payable as premium under any insurance
described in paragraph (c) that is allocable to coverage provided to the shared vehicle driver
or the shared vehicle owner, if:
new text end

new text begin (1) in the case of the shared vehicle owner, the provided insurance is included without
additional or itemized charge in the fee charged by the peer-to-peer car sharing company
for the applicable car share reservation, including any financial protection package authorized
under section 65B.94; and
new text end

new text begin (2) in the case of the shared vehicle driver, the provided insurance is included without
additional or itemized charge in the shared motor vehicle's cost of the reservation, including
any financial protection package authorized under section 65B.94.
new text end

new text begin (g) Notwithstanding any other law, statute, rule, or regulation to the contrary, a
peer-to-peer car sharing company must not be deemed to be engaged in the sale, negotiation,
solicitation, or offer of insurance by providing or offering to provide coverage, including
describing the coverage provided and allowing the shared vehicle driver to select among
coverage limits, to a shared vehicle owner or shared vehicle driver under an insurance policy
maintained by the peer-to-peer car sharing program pursuant to paragraph (c).
new text end

Sec. 4.

new text begin [65B.93] PHYSICAL DAMAGE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Contractual assumption of risk. new text end

new text begin (a) A peer-to-peer car sharing program
may enter into a contract with a shared vehicle owner pursuant to the peer-to-peer car sharing
program agreement to contractually assume, for a fee, some or all of the shared motor vehicle
owner's risk of loss due to physical damage to the shared motor vehicle during the time that
the shared motor vehicle is in custody of the shared vehicle driver or peer-to-peer car sharing
program.
new text end

new text begin (b) Contractual assumption of risk is not considered physical damage insurance or the
transaction of the business of insurance in Minnesota.
new text end

new text begin (c) Assumption of risk may include loss due to wear and tear, the cost of a substitute
vehicle, towing, or other losses directly related to the sharing of the vehicle through the
peer-to-peer car sharing program.
new text end

new text begin Subd. 2. new text end

new text begin Collision damage waiver. new text end

new text begin A peer-to-peer car sharing program may enter into
a contract with a shared vehicle driver pursuant to which the peer-to-peer car sharing program
agrees, for a charge, to contractually assume all or part of the shared vehicle driver's liability
for physical damage to the shared motor vehicle due to physical damage to the shared motor
vehicle during the time that the shared motor vehicle is in custody of the shared vehicle
driver. A contractual assumption of liability under this subdivision:
new text end

new text begin (1) is not considered physical damage insurance or the transaction of the business of
insurance in Minnesota;
new text end

new text begin (2) may be referred to as "collision damage waiver," "optional vehicle protection,"
"financial protection," "physical damage protection," or similar descriptive terms; and
new text end

new text begin (3) must be on a separate form that includes:
new text end

new text begin (i) the terms of the assumption of liability, including but not limited to any conditions
or exclusions;
new text end

new text begin (ii) notice that coverage to the shared motor vehicle may be covered under the shared
vehicle driver's own automobile insurance; and
new text end

new text begin (iii) notice that entering into the contract is not mandatory and may be waived.
new text end

new text begin Subd. 3. new text end

new text begin No requirement to use adjusters. new text end

new text begin A peer-to-peer car sharing program is not
required to use licensed property damage adjusters or third-party administrators to value or
determine losses (1) under a contract issued pursuant to subdivision 1, and (2) based on
estimates from independent repair shops or other independent sources.
new text end

Sec. 5.

new text begin [65B.94] FINANCIAL PROTECTION PACKAGES.
new text end

new text begin (a) A car sharing program may offer a financial protection package consisting of a
combination of (1) any insurance permitted under section 65B.92, and (2) any contractual
assumption of physical damage loss or liability permitted under section 65B.93.
new text end

new text begin (b) A financial protection package under this section may be identified as a "package,"
"financial protection plan," or words of similar description.
new text end

new text begin (c) The cost of a financial protection package under this section may be calculated on a
daily basis as a percentage of the daily reservation fee.
new text end

Sec. 6.

new text begin [65B.95] CONSUMER PROTECTIONS DISCLOSURES.
new text end

new text begin Subdivision 1. new text end

new text begin Required disclosures. new text end

new text begin A car sharing program agreement made in
Minnesota must disclose to the shared motor vehicle owner and the shared motor vehicle
driver:
new text end

new text begin (1) any right the peer-to-peer car sharing program has to seek indemnification from the
shared motor vehicle owner or the shared motor vehicle driver for economic loss sustained
by the peer-to-peer car sharing program resulting from a breach of the car sharing program
agreement's terms and conditions;
new text end

new text begin (2) that a motor vehicle liability insurance policy issued to the shared motor vehicle
owner for the shared motor vehicle or to the shared motor vehicle driver does not provide
a defense for or indemnification against any claim asserted by the peer-to-peer car sharing
program;
new text end

new text begin (3) that the peer-to-peer car sharing program's insurance coverage on the shared motor
vehicle owner and the shared motor vehicle driver is effective only during each car sharing
period, and that the shared motor vehicle driver and the shared motor vehicle owner may
not be covered by insurance for any use of the shared motor vehicle by the shared vehicle
driver after the car sharing termination time;
new text end

new text begin (4) the daily rate, fees, and, if applicable, any insurance or protection package costs
charged to the shared motor vehicle owner or the shared motor vehicle driver;
new text end

new text begin (5) that the shared motor vehicle owner's motor vehicle liability insurance might not
provide coverage for a shared motor vehicle;
new text end

new text begin (6) an emergency telephone number to personnel capable of fielding roadside assistance
and other customer service inquiries; and
new text end

new text begin (7) whether conditions exist under which a shared motor vehicle driver must maintain
a personal automobile insurance policy, with certain applicable coverage limits on a primary
basis, in order to book a shared motor vehicle.
new text end

new text begin Subd. 2. new text end

new text begin Driver's license verification and data retention. new text end

new text begin (a) A peer-to-peer car sharing
program is prohibited from entering into a peer-to-peer car sharing program agreement with
a driver unless the driver operating the shared motor vehicle:
new text end

new text begin (1) holds a driver's license issued under chapter 171 that authorizes the driver to operate
vehicles of the shared motor vehicle's class; or
new text end

new text begin (2) is a nonresident who:
new text end

new text begin (i) has a driver's license issued by the state or country of the driver's residence that
authorizes the driver to operate vehicles of the shared motor vehicle's class in the state or
country of issuance; and
new text end

new text begin (ii) is at least the same age as the age required for a resident to drive in Minnesota; or
new text end

new text begin (3) is otherwise specifically authorized by the commissioner of public safety to drive
vehicles of the shared motor vehicle's class.
new text end

new text begin (b) A peer-to-peer car sharing program must keep a record of:
new text end

new text begin (1) the name and address of the shared motor vehicle driver;
new text end

new text begin (2) the driver's license number for the shared motor vehicle driver and each other person,
if any, who operates the shared motor vehicle; and
new text end

new text begin (3) the place the driver's license was issued.
new text end

new text begin Subd. 3. new text end

new text begin Responsibility for equipment. new text end

new text begin A peer-to-peer car sharing program has the
sole responsibility for any equipment, including a GPS system or other special equipment,
that is installed in or on the vehicle to monitor or facilitate the car sharing transaction. A
peer-to-peer car sharing program must indemnify and hold harmless the motor vehicle owner
for any damage to or theft of equipment during the car sharing period that is not caused by
the shared motor vehicle owner. The peer-to-peer car sharing program may seek indemnity
from the shared motor vehicle driver for any loss or damage to equipment that occurs during
the car sharing period.
new text end

new text begin Subd. 4. new text end

new text begin Automobile safety recalls. new text end

new text begin (a) At the time a vehicle owner registers as a shared
motor vehicle owner in a peer-to-peer car sharing program and before the shared motor
vehicle owner makes a shared motor vehicle available for car sharing in the peer-to-peer
car sharing program, the peer-to-peer car sharing program must:
new text end

new text begin (1) verify that the shared vehicle does not have any safety recalls on the vehicle for
which the repairs have not been made; and
new text end

new text begin (2) notify the shared motor vehicle owner of the requirements under paragraph (b).
new text end

new text begin (b) If the shared motor vehicle owner has received an actual safety recall notice on the
vehicle, a shared motor vehicle owner is prohibited from making a vehicle available as a
shared motor vehicle in a peer-to-peer car sharing program until after the safety recall repair
has been made. If a shared motor vehicle owner receives an actual safety recall notice on a
shared motor vehicle while the shared motor vehicle is made available in the peer-to-peer
car sharing program, the shared motor vehicle owner must remove the shared motor vehicle
from the peer-to-peer car sharing program as soon as practicable after receiving the safety
recall notice and until after the safety recall repair has been made. If a shared vehicle owner
receives an actual safety recall notice while the shared motor vehicle is being used or in the
possession of a shared motor vehicle driver, the shared vehicle owner must notify the
peer-to-peer car sharing program about the safety recall as soon as practicable after receiving
the safety recall notice so the shared motor vehicle owner may address the safety recall
repair.
new text end

Sec. 7.

Minnesota Statutes 2022, section 72A.125, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) "Auto rental company" means a corporation, partnership,
individual, or other person that is engaged primarily in the renting of motor vehicles at per
diem rates. new text begin Auto rental company does not include a peer-to-peer car sharing program, as
defined in section 65B.91, subdivision 8; or shared motor vehicle owner, as defined in
section 65B.91, subdivision 11.
new text end

(b) "Rental vehicle personal accident insurance" means accident only insurance providing
accidental death benefits, dismemberment benefits and/or reimbursement for medical
expenses which is issued by an insurer authorized in this state to issue accident and health
insurance. These coverages are nonqualified plans under chapter 62E.

(c) "Liability insurance" means insurance that provides coverage, as applicable, to renters
and other authorized drivers of rental vehicles for liability arising from the operation of the
rental vehicle. At the option of the auto rental company, this coverage may include uninsured
or underinsured motorist coverage whether offered separately or in combination with other
liability insurance.

(d) "Personal effects insurance" means coverage, as applicable, to renters and other
rental vehicle occupants for the loss of, or damage to, personal effects which occurs during
the rental period.

Sec. 8.

Minnesota Statutes 2022, section 297A.64, subdivision 4, is amended to read:

Subd. 4.

Exemptions.

(a) The tax and the fee imposed by this section do not apply to a
lease or rental of (1) a vehicle to be used by the lessee to provide a licensed taxi service;
(2) a hearse or limousine used in connection with a burial or funeral service; or (3) a van
designed or adapted primarily for transporting property rather than passengers. The tax and
the fee imposed under this section do not apply when the lease or rental of a vehicle is
exempt from the tax imposed under section 297A.62, subdivision 1. new text begin The tax and fee imposed
under this section does not apply to a vehicle that is part of a peer-to-peer car sharing
program, as defined in section 65B.91, subdivision 8.
new text end

(b) The lessor may elect not to charge the fee imposed in subdivision 2 if in the previous
calendar year the lessor had no more than 20 vehicles available for lease that would have
been subject to tax under this section, or no more than $50,000 in gross receipts that would
have been subject to tax under this section.

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 65B.49, subdivision 5a, new text end new text begin is repealed.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 9 are effective January 1, 2024.
new text end

APPENDIX

Repealed Minnesota Statutes: 23-01296

65B.49 INSURERS.

Subd. 5a.

Rental vehicles.

(a) Every plan of reparation security, wherever issued, insuring a natural person as named insured, covering private passenger vehicles as defined under section 65B.001, subdivision 3, and pickup trucks and vans as defined under section 168.002 must: (1) provide that all of the obligation for damage and loss of use to a rented private passenger vehicle, including pickup trucks and vans as defined under section 168.002, and rented trucks with a registered gross vehicle weight of 26,000 pounds or less would be covered by the property damage liability portion of the plan; and (2) extend the plan's basic economic loss benefits, residual liability insurance, and uninsured and underinsured motorist coverages to the operation or use of the rented motor vehicle. This subdivision does not apply to plans of reparation security covering only motor vehicles registered under section 168.10, subdivision 1a, 1b, 1c, or 1d, or recreational vehicles as defined under section 168.002. The obligation of the plan must not be contingent on fault or negligence. In all cases where the plan's property damage liability coverage is less than $35,000, the coverage available under the subdivision must be $35,000. Other than as described in this paragraph; paragraph (i), clause (2); or paragraph (j), nothing in this section amends or alters the provisions of the plan of reparation security as to primacy of the coverages in this section.

(b) A vehicle is rented for purposes of this subdivision:

(1) if the rate for the use of the vehicle is determined on a monthly, weekly, or daily basis; or

(2) during the time that a vehicle is loaned as a replacement for a vehicle being serviced or repaired regardless of whether the customer is charged a fee for the use of the vehicle.

A vehicle is not rented for the purposes of this subdivision if the rate for the vehicle's use is determined on a period longer than one month or if the term of the rental agreement is longer than one month. A vehicle is not rented for purposes of this subdivision if the rental agreement has a purchase or buyout option or otherwise functions as a substitute for purchase of the vehicle.

(c) The policy or certificate issued by the plan must inform the insured of the application of the plan to private passenger rental vehicles, including pickup trucks and vans as defined under section 168.002, and that the insured may not need to purchase additional coverage from the rental company.

(d) Where an insured has two or more vehicles covered by a plan or plans of reparation security containing the rented motor vehicle coverage required under paragraph (a), the insured may select the plan the insured wishes to collect from and that plan is entitled to a pro rata contribution from the other plan or plans based upon the property damage limits of liability. If the person renting the motor vehicle is also covered by the person's employer's insurance policy or the employer's automobile self-insurance plan, the reparation obligor under the employer's policy or self-insurance plan has primary responsibility to pay claims arising from use of the rented vehicle.

(e) A notice advising the insured of rental vehicle coverage must be given by the reparation obligor to each current insured with the first renewal notice after January 1, 1989. The notice must be approved by the commissioner of commerce. The commissioner may specify the form of the notice.

(f) When a motor vehicle is rented in this state, there must be attached to the rental contract a separate form containing a written notice in at least 10-point bold type, if printed, or in capital letters, if typewritten, which states:

"Under Minnesota law, a personal automobile insurance policy must: (1) cover the rental of this motor vehicle against damage to the vehicle and against loss of use of the vehicle; and (2) extend the policy's basic economic loss benefits, residual liability insurance, and uninsured and underinsured motorist coverages to the operation or use of a rented motor vehicle. Therefore, purchase of any collision damage waiver or similar insurance affected in this rental contract is not necessary. In addition, purchase of any additional liability insurance is not necessary if your policy was issued in Minnesota unless you wish to have coverage for liability that exceeds the amount specified in your personal automobile insurance policy."

No collision damage waiver or other insurance offered as part of or in conjunction with a rental of a motor vehicle may be sold unless the person renting the vehicle provides a written acknowledgment that the above consumer protection notice has been read and understood.

(g) When damage to a rented vehicle is covered by a plan of reparation security as provided under paragraph (a), the rental contract must state that payment by the reparation obligor within the time limits of section 72A.201 is acceptable, and prior payment by the renter is not required.

(h) Compensation for the loss of use of a damaged rented motor vehicle is limited to a period no longer than 14 days.

(i)(1) For purposes of this subdivision, "rented motor vehicle" means a rented vehicle described in paragraph (a), using the definition of "rented" provided in paragraph (b).

(2) Notwithstanding section 169.09, subdivision 5a, an owner of a rented motor vehicle is not vicariously liable for legal damages resulting from the operation of the rented motor vehicle in an amount greater than $100,000 because of bodily injury to one person in any one accident and, subject to the limit for one person, $300,000 because of injury to two or more persons in any one accident, and $50,000 because of injury to or destruction of property of others in any one accident, if the owner of the rented motor vehicle has in effect, at the time of the accident, a policy of insurance or self-insurance, as provided in section 65B.48, subdivision 3, covering losses up to at least the amounts set forth in this paragraph. Nothing in this paragraph alters or affects the obligations of an owner of a rented motor vehicle to comply with the requirements of compulsory insurance through a policy of insurance as provided in section 65B.48, subdivision 2, or through self-insurance as provided in section 65B.48, subdivision 3, which policy of insurance or self-insurance must apply whenever the operator is not covered by a plan of reparation security as provided under paragraph (a); or with the obligations arising from section 72A.125 for products sold in conjunction with the rental of a motor vehicle. Nothing in this paragraph alters or affects liability, other than vicarious liability, of an owner of a rented motor vehicle.

(3) The dollar amounts stated in this paragraph shall be adjusted for inflation based upon the Consumer Price Index for all urban consumers, known as the CPI-U, published by the United States Bureau of Labor Statistics. The dollar amounts stated in this paragraph are based upon the value of that index for July 1995, which is the reference base index for purposes of this paragraph. The dollar amounts in this paragraph shall change effective January 1 of each odd-numbered year based upon the percentage difference between the index for July of the preceding year and the reference base index, calculated to the nearest whole percentage point. The commissioner shall announce and publish, on or before September 30 of the preceding year, the changes in the dollar amounts required by this paragraph to take effect on January 1 of each odd-numbered year. The commissioner shall use the most recent revision of the July index available as of September 1. Changes in the dollar amounts must be in increments of $5,000, and no change shall be made in a dollar amount until the change in the index requires at least a $5,000 change. If the United States Bureau of Labor Statistics changes the base year upon which the CPI-U is based, the commissioner shall make the calculations necessary to convert from the old base year to the new base year. If the CPI-U is discontinued, the commissioner shall use the available index that is most similar to the CPI-U.

(j) The plan of reparation security covering the owner of a rented motor vehicle is excess of any residual liability coverage insuring an operator of a rented motor vehicle.