SF 828

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 10:10am

A bill for an act
relating to insurance; establishing a peer-to-peer car sharing program; proposing
coding for new law in Minnesota Statutes, chapter 65B.

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.94 may be cited as the "Peer-to-Peer Car Sharing Program Act."
new text end

Sec. 2.

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

new text begin Sections 65B.91 to 65B.94 govern the intersection of peer-to-peer car services and the
state-regulated business of insurance. Nothing in sections 65B.91 to 65B.94 extends beyond
insurance or has any implications for other provisions in Minnesota Statutes, including but
not limited to motor vehicle regulation, airport regulation, or taxation.
new text end

Sec. 3.

new text begin [65B.92] 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.94.
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. Car sharing program agreement does not include a rental contract or similar
agreement, as defined in section 65B.49, subdivision 5a.
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; 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 does not include use of a rental
motor vehicle or the term rented, as defined in section 65B.49, subdivision 5a.
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. Peer-to-peer car sharing program does not include
a company that engages in the business of renting motor vehicles, as provided under section
65B.49, subdivision 5a.
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. Shared motor vehicle does
not include a rental motor vehicle, as defined in section 65B.49, subdivision 5a.
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.
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.
new text end

Sec. 4.

new text begin [65B.93] 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) A peer-to-peer car
sharing program assumes liability, except as provided in paragraph (b), 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, during the car sharing
period in an 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.92,
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.92,
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 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:
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 of
paragraph (d) must be primary during each car sharing period.
new text end

new text begin (g) The peer-to-peer car sharing program assumes primary liability for a claim when it
in whole or in part provides the insurance required under paragraphs (d) and (e) and:
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
new text end

new text begin (2) the peer-to-peer car sharing program does not have available, did not retain, or fails
to provide the information required by subdivision 4.
new text end

new text begin If it is determined that the shared motor vehicle's owner was in control of the shared motor
vehicle at the time of the loss, the shared motor vehicle's insurer must indemnify the car
sharing program to the extent of its obligation under, if any, the applicable insurance policy.
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.94 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 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 times used, 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. 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 in accordance with United
States Code, title 49, section 30106, and under any state or local law that imposes liability
solely based on vehicle ownership.
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 contribution against the motor vehicle
insurer of the peer-to-peer car sharing program 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 policies of motor vehicle liability insurance that provides 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

Sec. 5.

new text begin [65B.94] 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) if 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) otherwise is 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 when 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:
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 on 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 on the peer-to-peer
car sharing program, the shared motor vehicle owner must remove the shared motor vehicle
from on the peer-to-peer car sharing program as soon as is practicably possible 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 is practicably
possible after receiving the safety recall notice so the shared motor vehicle owner may
address the safety recall repair.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective January 1, 2023.
new text end