The proposed bill establishes the Peer-to-Peer Car Sharing Program Act in Iowa, which provides a comprehensive framework for peer-to-peer car sharing initiatives. 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 car sharing program assumes liability for bodily injuries or property damage to third parties during the car sharing period, unless the vehicle owner has engaged in fraudulent behavior or colluded with the driver to violate the agreement. Additionally, the program is exempt from liability under certain state or local laws related to vehicle ownership.

The legislation requires that a motor vehicle liability insurance policy be in effect during the car sharing period, which can be held by the owner, driver, or the program itself, and must acknowledge or not prohibit the vehicle's use in a peer-to-peer program. The bill also emphasizes the program's responsibility to ensure shared vehicles are free from safety recalls and mandates the maintenance of transaction records. It includes provisions for indemnification and liability exclusions, while allowing programs to maintain liability policies that cover various liabilities without being contingent on other insurers denying claims. Importantly, the bill does not impose a requirement for programs to maintain liability insurance nor limit their liability for injuries resulting from their actions, while also granting the insurance commissioner authority to adopt necessary administrative rules.