PRINTER'S NO. 2437
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2098
Session of
2021
INTRODUCED BY E. NELSON, BURGOS, ORTITAY, RADER, MERCURI,
GUZMAN, RYAN, KAIL, FEE, SANKEY AND FARRY, NOVEMBER 23, 2021
REFERRED TO COMMITTEE ON INSURANCE, NOVEMBER 23, 2021
AN ACT
Amending Titles 40 (Insurance) and 74 (Transportation) of the
Pennsylvania Consolidated Statutes, in special provisions
relating to particular classes of insurers, providing for
peer-to-peer car sharing; and, in airport operation and
zoning, providing for peer-to-peer car sharing.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Part III of Title 40 of the Pennsylvania
Consolidated Statutes is amended by adding an article to read:
ARTICLE C
TRANSPORTATION
Chapter
69. Peer-to-Peer Car Sharing
CHAPTER 69
PEER-TO-PEER CAR SHARING
Subchapter
A. Preliminary Provisions
B. Insurance
C. Consumer Protections
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SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
6901. Scope of chapter.
6902. Definitions.
§ 6901. Scope of chapter.
This chapter relates to peer-to-peer car sharing.
§ 6902. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Car sharing delivery period." The period of time during
which a shared vehicle is being delivered to the location of the
car sharing start time, if applicable, as documented by the
governing car sharing program agreement.
"Car sharing period." The period of time that 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 in either case ends at the car sharing termination time.
"Car sharing program agreement." As follows:
(1) The terms and conditions applicable to a shared
vehicle owner and a shared vehicle driver that govern the use
of a shared vehicle through a peer-to-peer car sharing
program.
(2) The term does not include:
(i) A rental contract within the meaning of Article
XVI-A of the act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971.
(ii) Any other agreement relating to a rental
vehicle or vehicle rental activity under any State,
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county, municipal or other local statute, law, rule,
regulation or ordinance.
"Car sharing start time." The time when the shared vehicle
becomes subject to the control of the shared vehicle driver at
or after the time the reservation of a shared vehicle is
scheduled to begin as documented in the records of a peer-to-
peer car sharing program.
"Car sharing termination time." The earliest of the
following events:
(1) The expiration of the agreed-upon period of time
established for the use of a shared vehicle 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.
(2) When the shared vehicle is returned to a location as
alternatively agreed upon by the shared vehicle owner and
shared vehicle driver as communicated through a peer-to-peer
car sharing program, which alternatively agreed-upon location
shall be incorporated into the car sharing program agreement.
(3) When the shared vehicle owner or the shared vehicle
owner's authorized designee takes possession and control of
the shared vehicle.
"Financial responsibility." As follows:
(1) The ability to respond in damages for liability on
account of accidents arising out of the maintenance or use of
a motor vehicle in the amount of:
(i) $25,000 because of injury to one person in any
one accident.
(ii) $50,000 because of injury to two or more
persons in any one accident.
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(iii) $20,000 because of damage to property of
others in any one accident.
(2) The financial responsibility shall be in a form
acceptable to the Department of Transportation of the
Commonwealth.
"Peer-to-peer car sharing." As follows:
(1) The authorized use of a vehicle by an individual
other than the vehicle's owner through a peer-to-peer car
sharing program.
(2) The term does not include:
(i) An activity undertaken pursuant to a rental
contract within the meaning of Article XVI-A of the Tax
Reform Code of 1971.
(2) Any other agreement relating to a rental vehicle
or vehicle rental activity under any State, county,
municipal or other local statute, law, rule, regulation
or ordinance.
"Peer-to-peer car sharing program." As follows:
(1) A business platform that connects vehicle owners
with drivers to enable the sharing of vehicles for financial
consideration.
(2) The term does not include a rental vehicle or
vehicle rental company, as those terms are defined in section
1601-A of the Tax Reform Code of 1971.
"Shared vehicle." As follows:
(1) A vehicle that is available for sharing through a
peer-to-peer car sharing program.
(2) The term does not include a rental vehicle as
defined in section 1601-A of the Tax Reform Code of 1971.
"Shared vehicle driver." An individual who has been
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authorized to drive the shared vehicle by the shared vehicle
owner under a car sharing program agreement.
"Shared vehicle owner." As follows:
(1) The registered owner, or a person designated by the
registered owner, of a vehicle made available for sharing to
shared vehicle drivers through a peer-to-peer car sharing
program.
(2) The term does not include a vehicle rental company
as defined in section 1601-A of the Tax Reform Code of 1971.
SUBCHAPTER B
INSURANCE
Sec.
6911. Insurance coverage during car sharing period.
6912. Lienholder and lessor requirements.
6913. Exclusions in motor vehicle liability insurance policies.
6914. Recordkeeping and use of vehicle in car sharing.
6915. Election of tort options.
§ 6911. Insurance coverage during car sharing period.
(a) Liability of peer-to-peer car sharing program
generally.-- Except as provided in subsection (b), a peer-to-peer
car sharing program shall assume liability of a shared vehicle
owner for bodily injury or property damage to a third party or
uninsured or underinsured motorist or for personal injury
protection losses during the car sharing period in an amount
stated in the peer-to-peer car sharing program agreement, which
amount may not be less than that specified in the definition of
"financial responsibility" under section 6902 (relating to
definitions).
(b) Liability not applicable.--Notwithstanding the
definition of "car sharing termination time" under section 6901
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(relating to definitions), the assumption of liability under
subsection (a) does not apply to a shared vehicle owner if the
shared vehicle owner:
(1) makes an intentional or fraudulent material
misrepresentation or omission to the peer-to-peer car sharing
program before the car sharing period in which the loss
occurred; or
(2) acts in concert with a shared vehicle driver who
fails to return the shared vehicle pursuant to the terms of
the car sharing program agreement.
(c) Required insurance.--A peer-to-peer car sharing program
shall ensure that, during each car sharing period, the shared
vehicle owner and the shared vehicle driver are insured under a
motor vehicle liability insurance policy that provides coverage
in amounts not less than the minimum amounts specified in the
definition of "financial responsibility" under section 6902 and
that either:
(1) recognizes that the shared vehicle insured under the
policy is made available and used through a peer-to-peer car
sharing program; or
(2) does not exclude the use of a shared vehicle by a
shared vehicle driver.
(d) Maintenance of insurance.-- The insurance described under
subsection (c) may be satisfied by motor vehicle liability
insurance maintained by any of the following:
(1) A shared vehicle owner.
(2) A shared vehicle driver.
(3) A peer-to-peer car sharing program.
(e) Condition regarding insurance.--T he insurance described
under subsection (d) that is satisfying the insurance
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requirement of subsection (c) shall be primary during each car
sharing period. If a claim occurs in another state with minimum
financial responsibility limits higher than those specified in
the definition of "financial responsibility" under section 6902,
during the car sharing period, the coverage maintained under
subsection (d) shall satisfy the difference in minimum coverage
amounts, up to the applicable policy limits.
(f) Assumption of primary liability.--The insurer or peer-
to-peer car sharing program providing coverage under subsection
(c) or (d) shall assume primary liability for a claim when:
(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
section 6922 (relating to driver's license verification and
data retention); or
(2) a dispute exists as to whether the shared vehicle
was returned to the alternatively agreed-upon location as
required under this chapter.
(g) Duties.--If insurance maintained by a shared vehicle
owner or shared vehicle driver in accordance with subsection (d)
has lapsed or does not provide the required coverage, insurance
maintained by a peer-to-peer car sharing program shall provide
the coverage required by subsection (c) beginning with the first
dollar of a claim and shall have the duty to defend the claim,
except under circumstances specified under subsection (b).
(h) Other policies.--
(1) 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 any of
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the following:
(i) Liabilities assumed by the peer-to-peer car
sharing program under a peer-to-peer car sharing program
agreement.
(ii) Liability of the shared vehicle owner.
(iii) Damage or loss to the shared vehicle.
(iv) Liability of the shared vehicle driver.
(2) Coverage under a vehicle liability insurance policy
maintained by the peer-to-peer car sharing program shall not
be dependent on another automobile insurer first denying a
claim nor shall another vehicle liability insurance policy be
required to first deny a claim.
(i) Effect of subchapter.--Nothing in this subchapter:
(1) limits the liability of the peer-to-peer car sharing
program for an act or omission of the peer-to-peer car
sharing program itself that results in injury to a person as
a result of the use of a shared vehicle through a peer-to-
peer car sharing program; or
(2) limits the ability of the peer-to-peer car sharing
program to, by contract, seek indemnification from the shared
vehicle owner or the shared vehicle driver for economic loss
sustained by the peer-to-peer car sharing program resulting
from a breach of the terms and conditions of the car sharing
program agreement.
§ 6912. Lienholder and lessor requirements.
(a) Acknowledgment of lien and lease obligations.--
(1) A peer-to-peer car sharing program shall disclose
the following prominently and with a separate acknowledgment
of acceptance to all prospective shared vehicle owners in the
written terms of service for shared vehicle owners:
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(Name of peer-to-peer car sharing program) will provide
you with a notice explaining whether it provides
insurance to repair your personal vehicle if you have an
accident when using your vehicle in a peer-to-peer car
sharing program. If (name of peer-to-peer car sharing
program) does not provide coverage for damage to your
vehicle, your personal automobile insurance policy might
not provide the coverage and you may be required to pay
all costs to repair the vehicle yourself in the event of
an accident unless you purchase extra insurance. If you
financed the purchase of the vehicle or lease the
vehicle, you must notify your lender or lessor that you
will use your vehicle in a peer-to-peer car sharing
program. Your lender or lessor may require you to
purchase extra insurance coverage or, if you do not do
so, may purchase insurance on your behalf and bill you
for the costs of the policy. The failure to notify a
lender or lessor or to have insurance to cover the cost
of damage to the vehicle may cause your vehicle to be
repossessed or your lease to be revoked. If you have
questions about this notice, you should contact your
insurance agent, your lender or lessor or the
Pennsylvania Insurance Department.
(2) The disclosure under paragraph (1) shall be provided
before a shared vehicle owner is allowed to share a vehicle
on a peer-to-peer car sharing program:
(3) A peer-to-peer car sharing program must provide the
notice required under paragraph (1) upon any subsequent
material reduction in insurance coverage by the peer-to-peer
car sharing program. For purposes of this paragraph,
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"material reduction in insurance coverage" does not include
the replacement of insurance coverage with substantially
similar insurance coverage from a different insurer by a
peer-to-peer car sharing program.
(4) A peer-to-peer car sharing program must notify
shared vehicle owners in writing whether it is providing
comprehensive and collision coverage during service.
(b) Payment of damage claims.--If a peer-to-peer car sharing
program's insurer makes a payment for a claim covered under
comprehensive or collision coverage, the peer-to-peer car
sharing program shall cause its insurer to issue the payment
directly to the business repairing the vehicle or jointly to the
owner of the vehicle and the primary lienholder or lessor.
(c) Direct placement of insurance.--If a shared vehicle
owner of a shared vehicle used in a peer-to-peer car sharing
program that is subject to a lien or lease fails to maintain
comprehensive or collision damage coverage required by the
lienholder or lessor, or to show evidence to the lienholder or
lessor of the coverage upon reasonable request, the lienholder
or lessor may obtain the coverage at the expense of the driver
without prior notice to the driver.
§ 6913. Exclusions in motor vehicle liability insurance
policies.
(a) Exclusions.--An authorized insurer that writes motor
vehicle liability insurance in this Commonwealth may exclude any
coverage and the duty to defend or indemnify for a claim
afforded under a shared vehicle owner's motor vehicle liability
insurance policy, including any of the following:
(1) L iability coverage for bodily injury and property
damage.
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(2) Personal injury protection coverage.
(3) Uninsured and underinsured motorist coverage.
(4) Medical payments coverage.
(5) Comprehensive physical damage coverage.
(6) Collision physical damage coverage.
(b) Effect of subchapter.--Nothing in this subchapter:
(1) Invalidates or limits an exclusion contained in a
motor vehicle liability insurance policy, including an
insurance policy in use or approved for use that excludes
coverage for motor vehicles made available for rent, sharing
or hire or for a business use.
(2) Invalidates, limits or restricts an insurer's
ability under existing law to:
(i) underwrite an insurance policy; or
(ii) cancel or not renew an insurance policy.
§ 6914. Recordkeeping and use of vehicle in car sharing.
(a) Duties.--A peer-to-peer car sharing program shall:
(1) Collect and verify records pertaining to the use of
a vehicle, including:
(i) Times used.
(ii) Car sharing period pick-up and drop-off fees
paid by the shared vehicle driver.
(iii) Revenues received by the shared vehicle owner.
(iv) Insurance coverage as required under section
6911(c) (relating to insurance coverage during car
sharing period).
(v) Whether a shared vehicle is subject to a lien or
is being leased to the shared vehicle owner.
(2) Provide the information under paragraph (1) upon
request to the shared vehicle owner, the shared vehicle
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owner's insurer , the shared vehicle driver's insurer , the
holder of a lien on the shared vehicle or the shared
vehicle's lessor to facilitate:
(i) a claim coverage investigation, settlement,
negotiation or litigation; or
(ii) the direct placement of insurance under section
6912(c) (relating to lienholder and lessor requirements)
on the shared vehicle.
(b) Retention of records.--The peer-to-peer car sharing
program shall retain the records for a time period not less than
the applicable personal injury statute of limitations period as
specified in 42 Pa.C.S. Ch. 55 (relating to limitation of time).
§ 6915. Election of tort options.
Each insurer and peer-to-peer car sharing program shall
notify in writing each named insured of the availability of two
alternatives of full tort insurance and limited tort insurance
described in 75 Pa.C.S. § 1705(c) and (d) (relating to election
of tort options).
SUBCHAPTER C
CONSUMER PROTECTIONS
Sec.
6921. Disclosures.
6922. Driver's license verification and data retention.
6923. Responsibility for equipment.
6924. Automobile safety recalls.
§ 6921. Disclosures.
Each car sharing program agreement made in this Commonwealth
shall disclose the following to the shared vehicle owner and the
shared vehicle driver:
(1) Any right of the peer-to-peer car sharing program to
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seek indemnification from the shared vehicle owner or the
shared vehicle driver for economic loss sustained by the
peer-to-peer car sharing program resulting from a breach of
the terms and conditions of the car sharing program
agreement.
(2) That a motor vehicle liability insurance policy
issued to the shared vehicle owner for the shared vehicle or
to the shared vehicle driver does not provide a defense or
indemnification for a claim asserted by the peer-to-peer car
sharing program.
(3) That the peer-to-peer car sharing program's
insurance coverage on the shared vehicle owner and the shared
vehicle driver is in effect only during each car sharing
period and that, for a use of the shared vehicle by the
shared vehicle driver after the car sharing termination time,
the shared vehicle driver and the shared vehicle owner may
not have insurance coverage.
(4) The daily rate, fees and, if applicable, any
insurance or protection package costs that are charged to the
shared vehicle owner or the shared vehicle driver.
(5) That the shared vehicle owner's motor vehicle
liability insurance may not provide coverage for a shared
vehicle.
(6) An emergency telephone number to personnel capable
of fielding roadside assistance and other customer service
inquiries.
(7) Whether there are conditions under which a shared
vehicle driver must maintain a personal automobile insurance
policy with certain applicable coverage limits on a primary
basis in order to book a shared vehicle.
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§ 6922. Driver's license verification and data retention.
(a) Conditions.--A peer-to-peer car sharing program may not
enter into a peer-to-peer car sharing program agreement with a
driver unless the driver who will operate the shared vehicle:
(1) h olds a valid driver's license that authorizes the
driver to operate vehicles of the class of the shared
vehicle; or
(2) is a nonresident of this Commonwealth who:
(i) has a valid driver's license issued by the state
or country of the driver's residence that authorizes the
driver in that state or country to drive vehicles of the
class of the shared vehicle; and
(ii) is at least the same age as that required of a
resident of this Commonwealth to drive.
(b) Records.--A peer-to-peer car sharing program shall keep
a record of the following:
(1) T he name and address of the shared vehicle driver.
(2) The number of the driver's license of the shared
vehicle driver and each other person, if any, who will
operate the shared vehicle.
(3) The place of issuance of the driver's license.
§ 6923. Responsibility for equipment.
A peer-to-peer car sharing program shall have sole
responsibility for any equipment, such as a GPS system or other
special equipment that is put in or on the vehicle to monitor or
facilitate the car sharing transaction and shall agree to
indemnify and hold harmless the vehicle owner for any damage to
or theft of the equipment during the sharing period not caused
by the vehicle owner. The peer-to-peer car sharing program has
the right to seek indemnity from the shared vehicle driver for
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any loss or damage to the equipment that occurs during the
sharing period.
§ 6924. Automobile safety recalls.
(a) Requirements.--At the time when a vehicle owner
registers as a shared vehicle owner on a peer-to-peer car
sharing program and prior to the time when the shared vehicle
owner makes a shared vehicle available for car sharing on the
peer-to-peer car sharing program, the peer-to-peer car sharing
program shall:
(1) V erify that the shared vehicle does not have any
safety recalls on the vehicle for which the repairs have not
been made.
(2) Notify the shared vehicle owner of the requirements
under subsection (b).
(b) Requirements if actual notice of safety recall.--
(1) If a shared vehicle owner receives an actual notice
of a safety recall on the shared vehicle, the shared vehicle
owner may not make a vehicle available as a shared vehicle on
a peer-to-peer car sharing program until the safety recall
repair has been made.
(2) If a shared vehicle owner receives an actual notice
of a safety recall on the shared vehicle while the shared
vehicle is made available on the peer-to-peer car sharing
program, the shared vehicle owner shall remove the shared
vehicle as available on the peer-to-peer car sharing program
as soon as practicable after receiving the notice of the
safety recall and until the safety recall repair has been
made.
(3) If a shared vehicle owner receives an actual notice
of a safety recall on the shared vehicle while the shared
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vehicle is being used and in the possession of a shared
vehicle driver, as soon as practicable after receiving the
notice of the safety recall, the shared vehicle owner shall
notify the peer-to-peer car sharing program about the safety
recall so that the shared vehicle owner may address the
safety recall repair.
Section 2. Chapter 59 of Title 74 is amended by adding a
subchapter to read:
SUBCHAPTER D
PEER-TO-PEER CAR SHARING
Sec.
5951. Scope of subchapter.
5952. Definitions.
5953. Peer-to-peer car sharing operations.
§ 5951. Scope of subchapter.
This subchapter relates to peer-to-peer car sharing at
airports in this Commonwealth.
§ 5952. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Airport owner." Any of the following:
(1) A municipality that owns and operates an airport.
(2) An authority created by a municipality to own and
operate an airport or any portion or activities of the
airport.
"Municipality." Any of the following:
(1) A county, city, borough, incorporated town or
township.
(2) A home rule, optional plan or optional charter
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municipality.
(3) Any other general purpose unit of government
established by the General Assembly.
" Operating agreement." A regulation, contract, permit,
license or other agreement entered into between an airport owner
and a provider of a peer-to-peer car sharing program that
includes the terms and conditions under which the provider may
conduct any aspect of the peer-to-peer car sharing program at
the airport or through the use of airport property.
"Peer-to-peer car sharing." As defined in 40 Pa.C.S. § 6902
(relating to definitions).
"Peer-to-peer car sharing program." As defined in 40 Pa.C.S.
§ 6902.
"Shared vehicle owner." As defined in 40 Pa.C.S. § 6902.
§ 5953. Peer-to-peer car sharing operations.
(a) Operating agreement.--Notwithstanding any other
provision of law, a provider of a peer-to-peer car sharing
program shall enter into an operating agreement with an airport
owner before peer-to-peer car sharing may occur at the airport,
unless the airport explicitly and in writing waives the right to
require an operating agreement.
(b) Limitation.--During operating agreement discussions with
an airport, the provider of a peer-to-peer car sharing program
shall limit operations at the airport to an airport-sponsored
paid lot for vehicle dropoffs or pickups.
(c) Applicability.--For the purposes of subsection (a),
peer-to-peer car sharing at an airport involves the use of a
peer-to-peer car sharing program, by a provider of a peer-to-
peer car sharing program or a shared vehicle owner, to:
(1) list vehicles parked on airport property or at
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airport facilities;
(2) contract for transportation to or from airport
facilities;
(3) facilitate the use of peer-to-peer car sharing to
transport airport passengers to or from airport property; or
(4) promote or market peer-to-peer car sharing to
transport airport passengers to or from airport property.
Section 3. This act shall take effect in nine months.
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