HOUSE OF REPRESENTATIVES

H.B. NO.

130

TWENTY-SEVENTH LEGISLATURE, 2013

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PERSONAL 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 be appropriately designated and to read as follows:

"Chapter

pERSONAL VEHICLE SHARING

     §   -1  Definitions.  As used in this chapter, unless the context otherwise requires:

     "Personal vehicle sharing" means the operation or use of a private passenger motor vehicle, by persons other than the vehicle's registered owner, in connection with a personal vehicle sharing program.

     "Personal vehicle sharing program" or "program" means a legal entity qualified to do business in the State and engaged in the business of facilitating the sharing of private passenger motor vehicles for noncommercial use by individuals within the State.  A personal vehicle sharing program is not a U-drive rental business.

     "Private passenger motor vehicle" means a four-wheel passenger motor vehicle insured under a motor vehicle insurance policy required pursuant to section 431:10C-301.

     §   -2  Personal vehicle sharing programs.  A private passenger motor vehicle shall not be classified as a commercial, for hire, rental, or U-drive motor vehicle when:

     (1)  The private passenger motor vehicle is used or operated pursuant to a personal vehicle sharing program established under this chapter; and

     (2)  The annual revenue received by the owner of the private passenger motor vehicle that is generated by participation in a personal vehicle sharing program does not exceed the annual expenses of owning and operating the motor vehicle, including the depreciation, interest, lease payments, auto loan payments, insurance, maintenance, parking, fuel, cleaning, repairs, and costs associated with personal vehicle sharing, including the installation, operation, and maintenance of computer hardware and software, signage identifying the vehicle as part of a personal vehicle sharing program, and any fees charged by a personal vehicle sharing program.

     §   -3  Program duties.  For each private motor vehicle that a personal vehicle sharing program facilitates the use of, the program shall:

     (1)  During all times that the vehicle is engaged in personal vehicle sharing, provide motor vehicle insurance to pay on behalf of any operator of the insured vehicle using the vehicle with the express permission of the owner pursuant to the program, sums which the operator may be legally obligated to pay for damage or destruction of property of others (except property owned by, being transported by, or in the charge of the owner or operator) arising out of the operation or use of the motor vehicle unless the motor vehicle is reported stolen by the owner within three days of notification of the incident; provided that, if any shared motor vehicle is involved in an accident, the owner and program shall provide all information they have or obtain relevant to the accident to all other involved parties upon their request, including information about the operator;

     (2)  Prior to the first use of a vehicle in a program, and upon renewal, cancellation, or change in insurance by the program, provide the vehicle's registered owner with proof of compliance with the insurance requirements of this section.  A copy of the proof of compliance shall be maintained in the vehicle by the vehicle's registered owner at all times when the vehicle is operated by any person other than the vehicle's registered owner pursuant to the program;

     (3)  Collect, maintain, and make available to the vehicle's registered owner, the primary automobile liability insurer of the vehicle's registered owner, and any government agency as required by law, at the cost of the program, the following:

         (A)  Verifiable records that identify the date and duration that the vehicle is under the control of a person other than the vehicle's registered owner pursuant to the program.  For vehicles with an electronic tracking device, verifiable electronic records of the time, initial and final locations of the vehicle, and miles driven when the vehicle is under the control of a person other than the vehicle's registered owner pursuant to the program; and

         (B)  In instances where an insurance claim has been filed, any and all information, including payments to the registered owner by the program, concerning accidents, damages, or injuries arising out of personal vehicle sharing pursuant to the program;

     (4)  Not knowingly permit the vehicle to be operated as a rental or U-drive motor vehicle by a personal vehicle sharing user pursuant to a personal vehicle sharing program.  For the purposes of this subparagraph, "rental or U-drive motor vehicle" has the same meaning as defined under section 286-2;

     (5)  Ensure that the shared motor vehicle is a private passenger motor vehicle;

     (6)  Facilitate the installation, operation, and maintenance of vehicle signage and computer hardware and software, when requested by the vehicle owner, necessary for the vehicle to be used in the program;

     (7)  Indemnify and hold harmless the vehicle's registered owner for the cost of damage or theft of equipment installed by the program under paragraph (6) and any damage caused to the vehicle by the installation, operation, or maintenance of the equipment;

     (8)  Prior to the first use of a vehicle in a program, and upon renewal, cancellation, or change in motor vehicle insurance by the program, provide the vehicle's registered owner and any person operating the vehicle pursuant to the program with a disclosure that contains:

         (A)  Information explaining the requirements of this section;

         (B)  Full and clear disclosure of the coverages and coverage limits provided under the program motor vehicle insurance policy;

         (C)  Notice that the vehicle owner's insurer has no duty to defend or indemnify any person or organization for liability for any loss that occurs during use of the vehicle pursuant to a program; and

         (D)  Notice that the vehicle owner or any person operating the vehicle pursuant to the program may have liability for claims that exceed the limits of the program insurance policy.

          This information shall be made available to the vehicle owner's insurer upon the insurer's request.

     §   -3  Program liability.  (a)  Notwithstanding any provision in a vehicle owner's motor vehicle insurance policy or chapter 287, if any loss or injury occurs when the vehicle is under the operation or control of a person other than the vehicle's registered owner, pursuant to a program, or is otherwise under the control of a program, the program shall assume all liability of the vehicle owner and shall be considered the vehicle owner for all purposes.

     (b)  Nothing in subsection (a) shall:

     (1)  Limit the liability of a program for any acts or omissions by the program that result in injury to any persons as a result of the use or operation of the program; or

     (2)  Limit the ability of the program to, by contract, seek indemnification from the vehicle's registered owner for any claims paid by the program for any loss or injury resulting from fraud or material intentional misrepresentation by the vehicle's registered owner, provided that the vehicle sharing program disclose in the contract that:

         (A)  Limit the program's entitlement to seek indemnification in these circumstances; and

         (B)  Provide that the registered owner's motor vehicle insurance policy is not required to provide defense or indemnification for any loss or injury resulting from fraud or material intentional misrepresentation.

     (c)  A program continues to be liable under subsection (a) until the vehicle is returned to a location designated by the program, as set forth in the contract between the registered owner and the program; and

     (1)  The expiration of the time period established for the vehicle occurs;

     (2)  The intent to terminate the vehicle's personal vehicle sharing use is verifiably communicated to the program, as set forth in the contract between the registered owner and the program; or

     (3)  The vehicle's registered owner takes possession and control of the vehicle.

     (d)  A program shall assume liability, including the costs of defense and indemnification, for a claim in which a dispute exists as to who was in control of a private passenger motor vehicle when the loss giving rise to the claim occurred.

     (e)  The vehicle insurer shall indemnify the program to the extent of the insurer's obligation under the owner's insurance policy, if it is determined that the vehicle's registered owner was in control of the vehicle at the time of the loss.

     (f)  If a private passenger motor vehicle's registered owner is named as a defendant in a civil action for any loss or injury that occurs when the vehicle is under the operation or control of a person other than the vehicle's registered owner, pursuant to a program, or is otherwise under the control of a program, the program shall have the duty to defend and indemnify the vehicle's registered owner.

     §   -4  Owner's insurance liability.  Notwithstanding any provision in the owner's motor vehicle insurance policy, while the vehicle is under the operation or control of a person other than the vehicle's registered owner, pursuant to a program, or is otherwise under the control of a program:

     (1)  The insurer providing motor vehicle insurance coverage to the owner of a private passenger motor vehicle may exclude any coverage provided under the owner's insurance policy; and

     (2)  A primary or excess insurer of the vehicle owner may notify an insured that the insurer has no duty to defend or indemnify any person or organization for liability for any loss that occurs during use of the vehicle pursuant to a program.

     In order to exclude such coverage, the exclusion allowed in paragraph (1) and the notification allowed in paragraph (2) are not required for a policy that otherwise does not provide such coverages.

     §   -5  Owner's insurance; termination; limited.  An owner's motor vehicle insurance policy for a private passenger motor vehicle may not be canceled, voided, terminated, rescinded, or nonrenewed solely on the basis that the vehicle has been made available for personal vehicle sharing pursuant to a program that is in compliance with the provisions of this chapter."

     SECTION 2.  This Act shall take effect upon its approval and shall apply to motor vehicle liability insurance policies issued or renewed after January 1, 2014.

 

INTRODUCED BY:

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Report Title:

Personal Vehicle Sharing Program

 

Description:

Establishes a personal vehicle sharing program.  Establishes distinguishing criteria to be considered a shared personal vehicle.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.