A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 56-36-10 SO AS TO CREATE THE PEER-TO-PEER CAR SHARING ACT; BY ADDING SECTION 56-36-20 SO AS TO PROVIDE DEFINITIONS; BY ADDING SECTION 56-36-30 SO AS TO PROVIDE FOR LIABILITY, INSURANCE REQUIREMENTS, AND DEFINE EXCEPTIONS; BY ADDING SECTION 56-36-40 SO AS TO PROVIDE REQUIREMENTS FOR RECORDKEEPING, SAFETY RECALL REPAIRS, AND INSURANCE COVERAGE; BY ADDING SECTION 56-36-50 SO AS TO PROVIDE THE LIMITS OF THE TRANSACTION FOR PURPOSES OF SALES TAX; BY ADDING SECTION 56-36-60 SO AS TO PROVIDE FOR PROMULGATION OF REGULATIONS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.  Title 56 of the S.C. Code is amended by adding:

    CHAPTER 36

    Peer-to-Peer Car Sharing Act

    Section 56-36-10.  (A)Where any provision of this chapter conflicts with any other provision of law, the provisions of this chapter will supersede any such conflicting or contradictory provision.

    (B) The provisions of Section 38-43-500 and Title 56, Chapter 31, are not applicable to this chapter.

    Section 56-36-20.  As used in this chapter:

    (1) "Peer-to-peer car sharing" means the authorized use of a shared vehicle by an individual other than the vehicle's owner through a peer-to-peer car sharing program pursuant to the provisions of this chapter.

    (2) "Peer-to-peer car sharing program" or "program" means a business platform that connects vehicle owners with drivers to enable the sharing of vehicles for financial consideration.

    (3) "Car sharing program agreement" or "agreement" means the terms and conditions that govern the use, duration of time, and location for transfer of possession of a shared vehicle through a peer-to-peer car sharing program.

    (4) "Shared vehicle" means a vehicle that is available for sharing through a peer-to-peer car sharing program.

    (5) "Shared vehicle driver" means an individual who has been authorized to drive the shared vehicle pursuant to a valid car sharing program agreement.

    (6) "Shared vehicle owner" means the registered owner, or designee of the registered owner, of a shared vehicle.

    (7) "Car sharing delivery period" means the period of time during which a shared vehicle is being delivered to the location for transfer of possession of the shared vehicle pursuant to the agreement.

    (8) "Car sharing period" means the period of time from:

       (a) the car sharing delivery period until the car sharing termination time; or,

       (b) if there is no car sharing delivery period, the car sharing start time until the car sharing termination time.

    (9) "Car sharing start time" means 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.

    (10) "Car sharing 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 shared vehicle according to the terms of the car sharing program agreement, provided that the shared vehicle is delivered to the location agreed upon in the car sharing agreement;

       (b) when the shared vehicle is returned to a location as alternately 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; or

       (c) when the shared vehicle owner or owner's designee takes possession and control of the shared vehicle.

    (11) "Applicable taxes" means, with respect to shared vehicles purchased in South Carolina, sales taxes levied under Title 12, Chapter 36 and any tax imposed under authority of Title 4, Chapter 10. With respect to vehicles not purchased in South Carolina, applicable taxes means the sales, use, excise or other tax generally due upon the purchase of a motor vehicle in the jurisdiction in which the shared vehicle was purchased.

    (12) "Peer-to-peer car sharing transaction" means the payment of monetary consideration from a shared vehicle driver in exchange for the use of a shared vehicle for peer-to-peer car sharing.

    Section 56-36-30.  (A) Except as provided in subsection (B) a peer-to-peer car sharing program shall assume liability of a shared vehicle owner for any death, bodily injury, or property damage to third parties or uninsured motorist losses that are proximately caused by the operation of the shared vehicle during the car sharing period in an amount stated in the peer-to-peer car sharing program agreement. That amount shall not be less than that specified in Section 38-77-140.

    (B) Notwithstanding the definition of "car sharing termination time" in Section 56-36-20, the assumption of liability pursuant to subsection (A) does not apply if:

       (1) the shared vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the program before the car sharing period in which the loss occurred; or

       (2) the shared vehicle driver and shared vehicle owner conspire to have the driver fail to return the shared vehicle, in violation of the agreement.

    (C) Notwithstanding the definition of "car sharing termination time" in Section 56-36-20 the assumption of liability under subsection (A) applies to death, bodily injury, and property losses by damaged third parties required by Section 38-77-140 and uninsured motorist losses by damaged third parties required by Section 38-77-150.

    (D) 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 each insured under a motor vehicle insurance policy that provides insurance coverage in amounts not less than the minimum amounts set forth in Section 38-77-140; and

       (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.

    (E) The insurance coverage required under subsection (D) may be satisfied by motor vehicle liability insurance maintained by:

       (1) a shared vehicle owner;

       (2) a shared vehicle driver;

       (3) a peer-to-peer car sharing program; or

       (4) any combination of a shared vehicle owner, shared vehicle driver, or a peer-to-peer car sharing program.

    (F) The insurance described in subsection (E) that is satisfying the insurance requirement of subsection (D) shall be primary during each car sharing period.  If a claim occurs in another state with minimum financial responsibility limits higher than those set forth in Section 38-77-140, during the car sharing period, the coverage maintained under subsection (E) shall satisfy the difference in minimum coverage amounts, up to the applicable policy limits.

    (G) The insurer or peer-to-peer car sharing program providing the coverage under subsection (D) or (E) shall assume primary liability for a claim when:

       (1) a dispute exists regarding who was in control of the shared 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 subsection (M) or

       (2) a dispute exists regarding whether the shared vehicle was returned to the alternatively agreed upon location as required under Section 56-30-10(b).

    (H) If insurance maintained by a shared vehicle owner or shared vehicle driver in accordance with subsection (E) 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 (D) beginning with the first dollar of a claim and have the duty to defend such claim except under circumstances as set forth in subsection (B).

    (I) Coverage under an automobile 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 automobile insurance policy be required to first deny a claim.

    (J) Nothing in this chapter:

       (1) limits the liability of the peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program itself that results in injury to any 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, by contract, to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss resulting from a breach of the car sharing program agreement.

    (K) When a shared vehicle owner registers as a shared vehicle owner with a peer-to-peer car sharing program and before the shared vehicle owner makes the shared vehicle available for sharing, the peer-to-peer car sharing program shall notify the owner that, if the shared vehicle has a lien against it, the use of the shared vehicle through a peer-to-peer car sharing program, including use without physical damage coverage, may violate the terms of the contract with the lienholder.

    (L)(1) An authorized insurer that writes motor vehicle liability insurance in this State may exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a shar