The proposed bill establishes the Peer-to-Peer Car Sharing Program Act in Iowa, creating a regulatory framework for peer-to-peer car sharing programs. It defines essential terms such as "car sharing," "shared vehicle," and "program agreement," while outlining the responsibilities of both the car sharing program and vehicle owners. The bill mandates that the program assumes liability for bodily injuries or property damage to third parties during the car sharing period, with minimum liability amounts specified in existing law. However, this liability does not apply if the vehicle owner engages in fraudulent behavior or collaborates with the driver to violate the agreement's terms. Additionally, it requires a motor vehicle liability insurance policy to be in effect during the car sharing period, which can be maintained by the owner, driver, or the program itself.

The legislation also includes provisions for recordkeeping, indemnification, and the handling of safety recalls and liens on shared vehicles. It allows car sharing programs to maintain liability policies that cover various liabilities, including those of the owner or driver, and any damage to shared vehicles, without being contingent on other insurers denying claims. The bill clarifies that it does not impose a requirement on programs to maintain liability insurance, nor does it limit their liability for injuries resulting from their actions. Furthermore, it mandates that car sharing agreements disclose critical information to vehicle owners and drivers, ensures that shared vehicles are free of unresolved safety recalls, and requires detailed records of vehicle usage to be maintained for insurance claims. Overall, the legislation aims to enhance safety and accountability in car sharing practices while clearly outlining the responsibilities of all parties involved.