LB1073 LB1073
2024 2024
LEGISLATIVE BILL 1073
Approved by the Governor April 15, 2024
Introduced by Slama, 1.
A BILL FOR AN ACT relating to law; to amend sections 44-7,115, 44-1308,
44-19,116, 44-5807, 48-2706, 68-956, 76-2,122, 76-856, 81-885.10, and
81-885.55, Reissue Revised Statutes of Nebraska, and sections 44-4603,
44-4604, 76-2,121, 81-885.01, 81-885.17, 81-885.24, and 87-302, Revised Statutes Cumulative Supplement, 2022; to adopt the Peer-to-Peer Vehicle Sharing Program Act; to prohibit certain actions relating to insurance for lung cancer screening; to change requirements relating to step-therapy override exceptions, documents and information provided to an independent review organization, title insurance, index-linked variable annuity contracts, the Pharmacy Benefit Manager Licensure and Regulation Act,
pharmacy benefit managers, onsite audits of the operations of third-party administrators, health benefit plans offered by professional employer organizations, the Medicaid Prescription Drug Act, requirements for real estate closing agents, the Nebraska Condominium Act, the Nebraska Real Estate License Act, and deceptive trade practices; to prohibit and require certain actions relating to right-to-list home sale agreements; to define and redefine terms; to harmonize provisions; to provide a duty for the Revisor of Statutes; to provide operative dates; to repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Sections 1 to 15 of this act shall be known and may be cited as the Peer-to-Peer Vehicle Sharing Program Act.
Sec. 2. For purposes of the Peer-to-Peer Vehicle Sharing Program Act,
unless the context otherwise requires:
(1) Agreement means the terms and conditions applicable to an owner and a driver that govern the use of a vehicle shared through a peer-to-peer vehicle sharing program. Agreement does not mean a rental agreement as defined in
section 44-4067;
(2) Delivery period means the period of time during which a vehicle is
being delivered to the location at which the start time begins, if applicable,
as documented by the agreement;
(3) Driver means an individual who has been authorized to drive a vehicle by an owner under an agreement;
(4) Owner means the registered owner, or a person or entity designated by
the registered owner, of a vehicle made available for sharing through a peer-
to-peer vehicle sharing program;
(5) Peer-to-peer vehicle sharing program or program means a business platform that connects owners with drivers to enable the sharing of vehicles for financial consideration. A program is not a transportation network company as defined in section 75-323 or a rental car company as defined in section
44-4067;
(6) Sharing means the authorized use of a vehicle by an individual other than an owner through a peer-to-peer vehicle sharing program;
(7) Sharing period means the period of time that commences with the delivery period or, if there is no delivery period, that commences with the start time and, in either case, ends at the termination time;
(8) Start time means the time when a vehicle becomes subject to the control of a driver at or after the time the reservation is scheduled to begin as documented in the records of a program;
(9) Termination time means the earliest of the following events:
(a) The expiration of the agreed upon period of time established for the use of a vehicle according to the terms of the agreement if the vehicle is
delivered to the location specified in the agreement;
(b) When a vehicle is returned to an alternative location as agreed upon by the owner and driver as communicated through the peer-to-peer vehicle sharing program. Such alternative location shall be incorporated into the agreement; and
(c) When an owner, or the owner's authorized designee, takes possession and control of the vehicle; and
(10) Vehicle means a motor vehicle as defined in section 60-471 that is
available for use through a peer-to-peer vehicle sharing program. Vehicle does not include any motor vehicle used as or offered for use as a rental vehicle under section 44-4067, any commercial motor vehicle as defined in section
60-465, or any vehicle subject to section 75-363.
Sec. 3. (1) Except as provided in subsection (2) of this section, a peer-
to-peer vehicle sharing program shall assume financial liability on behalf of
an owner for any claim for bodily injury or property damage to third parties or
uninsured and underinsured motorist losses during the sharing period in an amount stated in the agreement. Such amount shall not be less than the amount required in section 60-310.
(2) The assumption of financial liability by a program under subsection
(1) of this section does not apply if the owner:
-1-
LB1073 LB1073
2024 2024
(a) Makes a material, intentional, or fraudulent misrepresentation, or a material, intentional, or fraudulent omission, to a program relating to the vehicle or the agreement prior to the sharing period in which the assumption of
such liability would otherwise be required; or
(b) Acts in concert with a driver to trigger the assumption of such liability that would otherwise be required.
(3) The assumption of financial liability under subsection (1) of this section applies to bodily injury, property damage, and uninsured and underinsured motorist losses by injured third parties.
Sec. 4. (1) A program shall require during each sharing period that the owner and driver are insured under a motor vehicle liability insurance policy that:
(a) Provides financial responsibility in amounts no less than the minimum amounts required by section 60-310; and
(b)(i) Recognizes that the vehicle is made available and used through the program; or
(ii) Does not exclude use of the vehicle by a driver through the program.
(2) The financial responsibility required under subsection (1) of this section may be satisfied by motor vehicle liability insurance or other acceptable means of demonstrating financial responsibility in Nebraska,
voluntarily maintained by:
(a) The owner;
(b) The driver;
(c) The program; or
(d) Any combination of owner, driver, and program.
(3) The financial responsibility described in subsection (1) of this section and satisfied pursuant to subsection (2) of this section shall be the primary coverage during the sharing period in the event that a claim occurs in
another state with minimum financial responsibility limits higher than those required under section 60-310, and during the sharing period the coverage maintained under subsection (2) of this section shall satisfy any difference in
minimum coverage amounts, up to the applicable policy limits.
(4) The insurer, insurers, or program providing coverage under section 3
or 4 of this act shall assume primary financial liability for a claim when:
(a) A dispute exists as to who was in control of the vehicle at the time of the loss and the program does not have available, did not retain, or fails to provide the information required by section 7 of this act; or
(b) A dispute exists as to whether the vehicle was returned to the alternative location pursuant to subdivision (9)(b) of section 2 of this act.
(5) If financial responsibility maintained by the owner or the driver in
accordance with subsection (2) of this section has lapsed or does not provide the required financial responsibility, the program or its insurer shall provide the coverage required by subsection (1) of this section beginning with the first dollar of a claim and have the duty to defend such claim except under circumstances as set forth in subsection (2) of section 3 of this act.
(6) Financial responsibility maintained by the program shall not be
dependent on another insurer first denying a claim, nor shall another motor vehicle liability insurance policy be required to first deny a claim.
(7) Nothing in the Peer-to-Peer Vehicle Sharing Program Act:
(a) Limits the liability of a program for any act or omission of the program itself that results in injury or economic loss to any person as a result of the use of a vehicle through the program; or
(b) Limits the ability of a program, by contract, to seek indemnification from an owner or a driver for economic loss sustained by the program resulting from a breach of the terms and conditions of an agreement by such owner or
driver.
Sec. 5. At the time an owner makes a vehicle available for use through a program and immediately prior to each time such owner offers such vehicle for use through such program, the program shall notify the owner that if the vehicle has a lien against it, the use of the vehicle through the program,
including such use without physical damage insurance coverage, may violate the terms of the contract with the lienholder.
Sec. 6. (1) An authorized insurer that writes motor vehicle liability insurance in Nebraska may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under the owner's motor vehicle liability insurance policy, including:
(a) Liability coverage for bodily injury and property damage;
(b) Personal injury protection coverage;
(c) Uninsured and underinsured motorist coverage;
(d) Medical payments coverage;
(e) Comprehensive physical damage coverage; and
(f) Collision physical damage coverage.
(2) Nothing in the this section invalidates, limits, or restricts an
insurer's ability under existing law to underwrite any insurance policy.
Nothing in the Peer-to-Peer Vehicle Sharing Program Act invalidates, limits, or restricts an insurer's ability to cancel and nonrenew insurance policies.
Sec. 7. (1) A program shall collect and verify records pertaining to the use of a vehicle, including sharing periods, sharing period pick-up and drop-
off locations, fees paid by each driver, and revenue received by each owner.
(2) A program shall provide the information collected pursuant to
subsection (1) of this section upon request to the owner, the owner's insurer,
and the driver's insurer to facilitate a claim coverage investigation,
settlement, negotiation, or litigation.
-2-
LB1073 LB1073
2024 2024
(3) A program shall retain the records required in this section for a period of not less than four years.
Sec. 8. An insurer that defends or indemnifies a claim arising from the operation of a vehicle that is excluded under the terms of its policy shall have the right to seek recovery against the motor vehicle insurer of the program if the claim is made against the owner or driver for loss or injury that occurs during the sharing period.
Sec. 9. (1) A program shall have an insurable interest in a vehicle during the sharing period.
(2) Nothing in this section shall impose liability on a program to
maintain the coverage required by section 3 or 4 of this act.
(3) A program may own and maintain as the named insured one or more policies of motor vehicle liability insurance that provides coverage for:
(a) Liabilities assumed by the program under an agreement;
(b) Liability of an owner or driver; or
(c) Damage or loss to a vehicle.
Sec. 10. A program and an owner shall be exempt from vicarious liability in accordance with 49 U.S.C. 30106(a), as such section existed on January 1,
2023, and under any state or local law that imposes liability solely based on
vehicle ownership.
Sec. 11. (1) Each agreement made in Nebraska shall disclose to each owner and driver:
(a) Any right of the program to seek indemnification from an owner or a driver for economic loss sustained by the program resulting from a breach of
the terms and conditions of the agreement by such owner or driver;
(b) That a motor vehicle liability insurance policy issued to an owner or
a driver may not provide a defense or indemnity for any claim asserted by the program;
(c) That a program's financial responsibility afforded to each owner and driver is available only during the sharing period;
(d) That for any use of a vehicle by a driver after the termination time,
a driver or owner may not have coverage;
(e) The daily rate, fees, costs, and, if applicable, any insurance or
protection package costs that are charged to an owner or a driver; and
(f) That an owner's motor vehicle liability insurance may not provide coverage for the vehicle.
(2) Each agreement made in Nebraska shall disclose to each driver:
(a) An emergency telephone number to contact personnel capable of fielding roadside assistance and other customer service inquiries; and
(b) Any conditions under which a driver shall maintain a personal motor vehicle liability insurance policy and any required coverage limits on a primary basis in order to use a vehicle through the program.
Sec. 12. A program shall have sole responsibility for any equipment, such as a global positioning system or other special equipment, that is put in or on
a vehicle to monitor or facilitate sharing and shall agree to indemnify and hold harmless the owner for any damage to or theft of such equipment during the sharing period not caused by the owner. A program has the right to seek indemnity from a driver for any loss or damage to such equipment that occurs during the sharing period.
Sec. 13. (1) At the time an owner makes a vehicle available for use by a program and immediately prior to each time the owner offers such vehicle for use by such program, the program shall:
(a) Verify that the vehicle does not have any safety recalls for which the repairs have not been made; and
(b) Notify the owner of the requirements under subsection (2) of this section.
(2) An owner shall:
(a) Not make a vehicle available for use through a program if the owner has received actual notice of a safety recall on such vehicle until the safety recall repair has been made;
(b) Upon receipt of actual notice of a safety recall on a vehicle when such vehicle is offered for use through a program, remove the vehicle from availability as soon as practicably possible and until the safety recall repair has been made; and
(c) Upon receipt of actual notice of a safety recall on a vehicle, and when the vehicle is in the possession of a driver, notify the program of the safety recall so that the program may notify the driver and the vehicle can be
removed from use until the owner makes the necessary safety recall repair.
Sec. 14. (1) A program shall not enter into an agreement with any driver unless such driver:
(a) Holds an operator's license issued in Nebraska authorizing the driver to operate vehicles of the class of vehicle used by the program; or
(b) Is a nonresident who:
(i) Holds a driver's license or an operator'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 vehicle used by the program; and
(ii) Is at least the same age as that required of a resident to drive in
Nebraska.
(2) A program shall keep a record of:
(a) The name and address of each driver; and
(b) The driver's license number and place of issuance of such license for each driver who operates a vehicle under an agreement.
Sec. 15. Nothing in the Peer-to-Peer Vehicle Sharing Program Act shall be
-3-
LB1073 LB1073
2024 2024
construed to limit the powers of an airport authority under Nebraska law.
Sec. 16. Notwithstanding section 44-3,131, beginning January 1, 2025, no policy, certificate, or contract, delivered, issued for delivery, or renewed in
this state, or any self-funded employee benefit plan, to the extent not preempted by federal law, shall impose a deductible, coinsurance, or any other cost-sharing requirements for lung cancer screening, including screening performed with low-dose computed tomography, for an individual at least fifty years of age and not older than eighty years of age who has a twenty-pack-per-
year smoking history and currently smokes or who has quit smoking within the past fifteen years. This section shall not apply if an individual (1) has not smoked for fifteen years, (2) develops a health problem that substantially limits life expectancy, or (3) is preparing to have curative lung surgery.
Sec. 17. Section 44-7,115, Reissue Revised Statutes of Nebraska, is amended to read:
44-7,115 (1) A step-therapy override exception shall be approved by a health carrier or utilization review organization if any of the following circumstances apply:
(a) The prescription drug required under the step-therapy protocol is
contraindicated pursuant to the drug manufacturer's prescribing information for the drug or, due to a documented adverse event with a previous use or a documented medical condition, including a comorbid condition, is likely to do any of the following:
(i) Cause an adverse reaction to the covered individual;
(ii) Decrease the ability of the covered individual to achieve or maintain reasonable functional ability in performing daily activities; or
(iii) Cause physical or mental harm to the covered individual;
(b) The prescription drug required under the step-therapy protocol is
expected to be ineffective based on the known clinical characteristics of the covered person, such as the covered person's adherence to or compliance with the covered person's individual plan of care, and any of the following:
(i) The known characteristics of the prescription drug regimen as
described in peer-reviewed literature or in the manufacturer's prescribing information for the drug;
(ii) The health care provider's medical judgment based on clinical practice guidelines or peer-reviewed journals; or
(iii) The covered person's documented experience with the prescription drug regimen;
(c) The covered person has had a trial of a therapeutically equivalent dose of the prescription drug under the step-therapy protocol while under the covered person's current or previous health benefit plan for a period of time to allow for a positive treatment outcome