Bill Summary – FastDemocracy

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                                                                Chairman Phil Mendelson

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                                                A BILL

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                     IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

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 To govern the intersection of peer-to-peer car sharing and insurance in the District of Columbia.

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        BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

 act may be cited as the “Peer-to-Peer Car Sharing Act of 2023”.

        Sec. 2. Definitions.

        For the purposes of this act, the term:

                (1) “Car sharing delivery period” means 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.

                (2) “Car sharing period” means 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.

                (3) “Car sharing program agreement” means 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. Car sharing program agreement does not mean rental

 transaction, as defined in the Rental Vehicle Tax Reform Act of 1978, effective March 6, 1979

 (D.C. Law 2-157; D.C. Official Code § 50-1505.01(7)).

                (4) “Car sharing start time” means the time when the shared vehicle becomes

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 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.

                (5) “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 if the shared

 vehicle is delivered to the location agreed upon in the car sharing programs agreement;

                        (B) 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; or

                        (C) When the shared vehicle owner of the shared vehicle owner’s

 authorized designee, takes possession and control of the shared vehicle.

                (6) “Peer-to-peer car sharing” means the authorized use of a vehicle by an

 individual other than the vehicle’s owner through a peer-to-peer car sharing program. “Peer-to-

 peer car sharing” does not mean rental vehicle as defined in Rental Vehicle Tax Reform Act of

 1978, effective March 6, 1979 (D.C. Law 2-157; D.C. Official Code § 50-1505.01(8)).

                (7) “Peer-to-peer car sharing program” means a business platform that connects

 vehicle owners with drivers to enable the sharing of vehicles for financial consideration. “Peer-

 to-peer car sharing program” does not mean rental transaction, as defined in the Rental Vehicle

 Tax Reform Act of 1978, effective March 6, 1979 (D.C. Law 2-157; D.C. Official Code § 50-

 1505.01(7)).

                (8) “Shared vehicle” means a vehicle that is available for sharing through a peer-

 to-peer car sharing program. “Shared vehicle” does not mean a rental vehicle as defined in

 Rental Vehicle Tax Reform Act of 1978, effective March 6, 1979 (D.C. Law 2-157; D.C.

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 Official Code § 50-1505.01(8)).

                (9) “Shared vehicle driver” means an individual who has been authorized to drive

 the shared vehicle by the shared vehicle owner under a car sharing program agreement.

                (10) “Shared vehicle owner” means the registered owner, or a person or entity

 designated by the registered owner, of a vehicle made available for sharing to shared vehicle

 drivers through a peer-to-peer car sharing program.

        Sec. 3. Insurance coverage during car sharing period

        (a) A peer-to-peer car sharing program shall assume liability, except as provided in

 subsection (b) of this section, of a shared vehicle owner for bodily injury or property damage to

 third parties or uninsured and underinsured motorist or 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 those set forth in the Compulsory/No Fault Motor Vehicle

 Insurance Act of 1982, effective September 18, 1982 (D.C. Law 4-155 7; D.C. Official Code §

 31-2406).

        (b) Notwithstanding the definition of “car sharing termination time” as set forth in this

 act, the assumption of liability under subsection (a) of this section does not apply to any shared

 vehicle owner when:

                (1) A shared vehicle owner 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) Acting in concert with a shared vehicle driver who fails to return the shared

 vehicle pursuant to the terms of car sharing program agreement.

        (c) Notwithstanding the definition of “car sharing termination time” as set forth in this

 act, the assumption of liability under subsection (a) of this section would apply to bodily injury,

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 property damage, uninsured and underinsured motorist or personal injury protection losses by

 damaged third parties required by An Act to promote safe driving, to eliminate the reckless and

 financially irresponsible driver from the highways, and to provide for the giving of security and

 proof of financial responsibility by persons driving or owning vehicles of a type subject to

 registration under the laws of the District of Columbia, effective May 25, 1954 (68 Stat. 129, ch.

 222 § 34; D.C. Official Code § 50-1301.34).

        (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 insured under a motor vehicle liability

 insurance policy that provides insurance coverage in amounts no less than the minimum amounts

 set forth in the Compulsory/No Fault Motor Vehicle Insurance Act of 1982, effective September

 18, 1982 (D.C. Law 4-155 § 7; D.C. Official Code § 31-2406), 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 use of a shared vehicle by a shared vehicle driver.

        (e) The insurance described under subsection (d) of this section 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) Both a shared vehicle owner, a shared vehicle driver, and a peer-to-peer car

 sharing program.

        (f) The insurance described in subsection (e) of this section used to satisfy the insurance

 requirement of subsection (d) of this section shall be primary during each car sharing period and

 in the event that a claim occurs in another state with minimum financial responsibility limits

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 higher than those in the Compulsory/No Fault Motor Vehicle Insurance Act of 1982, effective

 September 18, 1982 (D.C. Law 4-155 § 7; D.C. Official Code § 31-2406) during the car sharing

 period, the coverage maintained under subsection (d) of this section shall satisfy the difference in

 minimum coverage amounts, up to the applicable policy limits.

        (g) The insurer, insurers, or peer-to-peer car sharing program providing coverage under

 subsection (e) of this section 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 under section 6; or

                (2) A dispute exists as to whether the shared vehicle was returned to the

 alternatively agreed upon location as required under section 2(5)(B).

        (h) If a policy maintained by a shared vehicle owner or shared vehicle driver in

 accordance with subsection (e) of this section 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) 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 section 3(a).

        (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 act shall:

                (1) Limit 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) Limit the ability of the peer-to-peer car sharing program to, by

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 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.

        Sec. 4. Notification of implications of lien.

        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 notify the shared vehicle 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.

        Sec. 5. Exclusions in Motor Vehicle Liability Insurance Policies

        (a) An authorized insurer that writes motor vehicle liability insurance in the District may

 exclude any and all coverage and the duty to defend or indemnify for any claim afforded under a

 shared vehicle owner’s motor vehicle liability insurance policy, including but not limited

 to:

                (1) Liability coverage for bodily injury and property damage;

                (2) Personal injury protection coverage as defined in section 5 of the

 Compulsory/No Fault Motor Vehicle Insurance Act of 1982, effective September 18, 1982 (D.C.

 Law 4-155 § 5; D.C. Official Code § 31-2404);

                (3) Uninsured and underinsured motorist coverage;

                (4) Medical payments coverage;

                (5) Comprehensive physical damage coverage; and

                (6) Collision physical damage coverage.

        (b) Nothing in this act invalidates or limits an exclusion contained in a motor vehicle

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 liability insurance policy, including any insurance policy in use or approved for use that excludes

 coverage for motor vehicles made available for rent, sharing, or hire or for any business use.

        (c) Nothing in this act invalidates, limits or restricts an insurer’s ability under existing

 law to underwrite any insurance policy. Nothing in this act invalidates, limits or restricts an

 insurer’s ability under existing law to cancel and non-renew policies.

        Sec. 6. Recordkeeping for use of vehicle in car sharing.

        A peer-to-peer car sharing program shall collect and verify records pertaining to the use

 of a vehicle, including, but not limited to, times used, car sharing period pick up and drop off

 locations, fees paid by the shared vehicle driver, and revenues received by the shared vehicle

 owner and provide that information upon request to the shared vehicle owner, the shared vehicle

 owner’s insurer, or the shared vehicle driver’s insurer to facilitate a claim coverage investigation,

 settlement, negotiation, or litigation. 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.

        Sec. 7. Exemption for vicarious liability.

        A peer-to-peer car sharing program and a shared vehicle owner shall be exempt from

 vicarious liability in accordance with 49 U.S.C. § 30106 and under any District law that imposes

 liability solely based on vehicle ownership.

        Sec. 8. Contribution against indemnification.

        A motor vehicle insurer that defends or indemnifies a claim against a shared vehicle that

 is excluded under the terms of its policy shall have the right to seek recovery against the motor

 vehicle insurer of the peer-to-peer car sharing program if the claim is:

                (1) Made against the shared vehicle owner or the shared vehicle driver for loss or

 injury that occurs during the car sharing period; and

                (2) Excluded under the terms of its policy.

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        Sec. 9. Insurable interest.

        (a) Notwithstanding any other law, statute, rule, or regulation to the contrary, a peer-to-

 peer car sharing program shall have an insurable interest in a shared vehicle during the car

 sharing period.

        (b) Nothing in this section creates liability on a Peer-to-Peer Car Sharing Program to

 maintain the coverage mandated by section 3(a).

        (c) 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:

                   (1) Liabilities assumed by the peer–to–peer car sharing program

 under a peer–to–peer car sharing program agreement;

                   (2) Any liability of the shared vehicle owner; or

                   (3) Damage or loss to the shared motor vehicle; or any liability of

 the shared vehicle driver.

        Sec. 10. Consumer protections disclosures.

        Each car sharing program agreement made in the District shall disclose to the

 shared vehicle owner and the shared vehicle driver:

                   (1) Any right of the peer-to-peer car sharing program to 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 any 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

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 vehicle owner and the shared vehicle driver is in effect only during each car sharing period and

 that, for any 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; and

                (7) If 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 motor vehicle.

        Sec. 11. Driver’s license verification and data retention.

        (a) 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) Holds a driver’s license issued pursuant to Title 18 of the D.C. Municipal

 Regulations that authorizes the driver to operate vehicles of the class of the shared vehicle; or

                (2) Is a nonresident who:

                        (i) Has a 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 to drive; or

                (3) Otherwise is specifically authorized to drive vehicles of the class of the shared

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 vehicle.

         (b) A peer-to-peer car sharing program shall keep a record of:

                 (1) The 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; and

                 (3) The place of issuance of the driver’s license.

         Sec. 12. 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 such 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 any loss or damage to such equipment that occurs during the sharing period.

         Sec. 13. Automobile safety recalls.

         (a) At the time when