Bill Summary – FastDemocracy

Enrolled Copy                                                                             S.B. 121
                               CAR-SHARING AMENDMENTS
                                      2023 GENERAL SESSION
                                           STATE OF UTAH
                              Chief Sponsor: Michael K. McKell
                             House Sponsor: Robert M. Spendlove
 6
 LONG TITLE
 General Description:
        This bill modifies provisions relating to motor vehicles shared though a car-sharing
 business platform.
 Highlighted Provisions:
        This bill:
        < enacts provisions relating to business platforms that connect motor vehicle owners
 with drivers to enable the sharing of motor vehicles for consideration;
        < enacts consumer protection provisions relating to a car-sharing program, including:
            C   required disclosures on a car-sharing agreement;
            C   driver requirements; and
            C   records of a car-sharing program;
        < enacts provisions relating to liability and insurance for claims arising during the
 period a shared vehicle is used under a car-sharing program;
        < prohibits certain local taxes, fees, and charges on peer-to-peer car sharing;
        < amends provisions related to taxes on peer-to-peer car sharing;
        < clarifies the taxes a marketplace facilitator is required to collect and remit;
        < defines terms; and
        < makes technical and conforming changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        This bill provides a special effective date.
       S.B. 121                                                                   Enrolled Copy
        This bill provides retrospective operation.
 Utah Code Sections Affected:
 AMENDS:
        59-12-102, as last amended by Laws of Utah 2021, Chapters 64, 367 and 414 and last
 amended by Coordination Clause, Laws of Utah 2021, Chapter 367
        59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
        59-12-107.6, as enacted by Laws of Utah 2019, Chapter 486
        59-12-602, as last amended by Laws of Utah 2020, Chapter 407
        59-12-603, as last amended by Laws of Utah 2020, Chapter 407
        59-12-1201, as last amended by Laws of Utah 2016, Chapters 184, 291
 ENACTS:
        11-26-401, Utah Code Annotated 1953
        13-48a-101, Utah Code Annotated 1953
        13-48a-102, Utah Code Annotated 1953
        13-48a-201, Utah Code Annotated 1953
        13-48a-202, Utah Code Annotated 1953
        13-48a-203, Utah Code Annotated 1953
        13-48a-204, Utah Code Annotated 1953
        13-48a-205, Utah Code Annotated 1953
        13-48a-301, Utah Code Annotated 1953
        13-48a-302, Utah Code Annotated 1953
        13-48a-303, Utah Code Annotated 1953
        13-48a-304, Utah Code Annotated 1953
        13-48a-305, Utah Code Annotated 1953
        13-48a-306, Utah Code Annotated 1953
        13-48a-307, Utah Code Annotated 1953
56
 Be it enacted by the Legislature of the state of Utah:
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      Enrolled Copy                                                                           S.B. 121
        Section 1. Section 11-26-401 is enacted to read:
                  CHAPTER 26. LIMITATIONS ON LOCAL TAXES AND FEES
                             Part 4. Car Sharing Taxes, Fees, and Charges
        11-26-401. Definitions -- Prohibition on car sharing program taxes, fees, and
 other charges.
        (1) As used in this part:
        (a) "Car sharing" means the same as that term is defined in Section 13-48a-101.
        (b) "County" means the same as that term is defined in Section 17-50-101.
        (c) "Municipality" means a city or a town.
        (d) "Political subdivision" means the same as that term is defined in Section
 11-14-102.
        (e) "Rental" means the same as the terms "lease" or "rental" are defined in Section
 59-12-102.
        (2) A county, municipality, or other political subdivision may not impose a tax, fee, or
 charge on the gross proceeds or gross income of a car sharing transaction that the jurisdiction
 does not impose on other transactions involving the rental of a motor vehicle without a driver.
        Section 2. Section 13-48a-101 is enacted to read:
                           CHAPTER 48a. CAR-SHARING PROGRAMS
                                       Part 1. General Provisions
        13-48a-101. Definitions.
        As used in this chapter:
        (1) (a) "Car sharing" means the authorized use of a motor vehicle:
        (i) by an individual other than the owner of the motor vehicle; and
        (ii) through a peer-to-peer car-sharing program.
        (b) "Car sharing" does not mean the business of providing private passenger motor
 vehicles to the public as used in Section 31A-22-311.
        (2) (a) "Car-sharing agreement" means an agreement:
        (i) applicable to a shared vehicle owner and a shared vehicle driver; and
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        S.B. 121                                                                          Enrolled Copy
        (ii) that governs a shared vehicle driver's use of a shared vehicle through a car-sharing
 program.
        (b) "Car-sharing agreement" does not mean:
        (i) a rental agreement, as defined in Section 31A-22-311; or
        (ii) a short-term rental as that term is defined in Section 59-12-602.
        (3) "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 agreement.
        (4) "Car-sharing period" means the period of time that:
        (a) (i) begins at the car-sharing delivery period; or
        (ii) if there is no car-sharing delivery period, begins at the car-sharing start time; and
        (b) ends at the car-sharing termination time.
        (5) (a) "Car-sharing program" or "peer-to-peer car-sharing program" means a business
 platform that connects motor vehicle owners with drivers to enable the sharing of motor
 vehicles for consideration.
        (b) "Car-sharing program" does not mean:
        (i) a motor vehicle rental company, as defined in Section 13-48-102; or
        (ii) a rental company, as defined in Section 31A-22-311.
        (6) "Car-sharing start time" means the time when a shared vehicle becomes subject to
 the control of the shared vehicle driver at or after the time the reservation of the shared vehicle
 is scheduled to begin, as documented in the records of the car-sharing program.
        (7) "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 agreement, if 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 alternatively agreed upon by the
 shared vehicle owner and shared vehicle driver as communicated through a car-sharing
 program, which alternatively agreed upon location shall be incorporated into the car-sharing
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        Enrolled Copy                                                                            S.B. 121
 agreement; and
        (c) when the shared vehicle owner or shared vehicle owner's authorized designee takes
 possession and control of the shared vehicle.
        (8) "Individual-owned shared vehicle" means:
        (a) for a motor vehicle purchased in the state, a shared vehicle for which applicable
 sales tax and use tax was paid on the purchase; or
        (b) for a motor vehicle not purchased in the state, a shared vehicle for which:
        (i) an applicable use tax was paid to this state on the purchase; or
        (ii) sales tax or use tax was paid on the purchase in the jurisdiction in which the motor
 vehicle was purchased.
        (9) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
        (10) "Shared vehicle" means a motor vehicle that is available for use by an individual
 other than the shared vehicle owner through a car-sharing program.
        (11) (a) "Shared vehicle driver" means an individual who has been authorized to drive
 a shared vehicle by the shared vehicle owner under a car-sharing program.
        (b) "Shared vehicle driver" does not mean a renter, as defined in Section 31A-22-311.
        (12) (a) "Shared vehicle owner" means:
        (i) the registered owner of a motor vehicle made available for car sharing; or
        (ii) a person designated by the registered owner of a motor vehicle made available for
 car sharing.
        (b) "Shared vehicle owner" does not mean a rental company, as defined in Section
 31A-22-311.
        Section 3. Section 13-48a-102 is enacted to read:
        13-48a-102. Limits on reach of chapter.
        Nothing in this chapter:
        (1) limits the liability of a car-sharing program for an act or omission of the car-sharing
 program that results in injury to a person as a result of the use of a shared vehicle through a
 car-sharing program; or
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        S.B. 121                                                                      Enrolled Copy
        (2) limits the ability of the car-sharing program, by contract, to seek indemnification
 from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the
 car-sharing program resulting from a breach of the terms and conditions of the car-sharing
 agreement.
        Section 4. Section 13-48a-201 is enacted to read:
                               Part 2. Consumer Protection Provisions
        13-48a-201. Notification about possible violation of lienholder agreement.
        (1) As used in this section, "lienholder agreement" means an agreement between the
 owner of a motor vehicle and another person under which the other person has a lien against
 the motor vehicle.
        (2) At the time that the owner of a motor vehicle registers to make the owner's motor
 vehicle available for sharing through a car-sharing program, the car-sharing program shall
 notify the owner that the use of the owner's motor vehicle through the car-sharing program,
 including without physical damage coverage, may violate the terms of a lienholder agreement
 that the motor vehicle may be subject to.
        Section 5. Section 13-48a-202 is enacted to read:
        13-48a-202. Safety recalls.
        (1) At the time that the owner of a motor vehicle registers to make the owner's motor
 vehicle available for sharing through a car-sharing program, the car-sharing program shall:
        (a) verify that the shared vehicle does not have any safety recalls for which the repairs
 have not been made; and
        (b) notify the motor vehicle owner of the requirements under Subsections (2), (3), and
 (4).
        (2) An owner of a motor vehicle may not register to make the owner's motor vehicle
 available for sharing through a car-sharing program if:
        (a) the owner has received an actual notice of a safety recall applicable to the motor
 vehicle; and
        (b) the safety recall repair has not been made.
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        Enrolled Copy                                                                             S.B. 121
        (3) A shared vehicle owner who receives an actual notice of a safety recall applicable
 to the shared vehicle during the time that the shared vehicle is made available for sharing
 through a car-sharing program shall, as soon as practicably possible after receiving the notice,
 remove the shared vehicle from availability for sharing through the car-sharing program until
 the safety recall repair is made.
        (4) A shared vehicle owner who receives an actual notice of a safety recall applicable
 to the shared vehicle during the time that the shared vehicle is in the possession of a shared
 vehicle driver under a car-sharing agreement shall, as soon as practicably possible after
 receiving the notice, notify the car-sharing program about the safety recall so that the shared
 vehicle owner may address the safety recall repair.
        Section 6. Section 13-48a-203 is enacted to read:
        13-48a-203. Required disclosures for a car-sharing agreement.
        A car-sharing agreement shall disclose to the shared vehicle owner and the shared
 vehicle driver:
        (1) a right of the car-sharing company to seek indemnification from the shared vehicle
 owner or shared vehicle driver for economic loss resulting from a breach of the car-sharing
 agreement;
        (2) that a motor vehicle liability insurance policy issued to the shared vehicle owner or
 shared vehicle driver does not provide a defense or indemnification for any claim asserted by
 the car-sharing company;
        (3) that the car-sharing program's insurance policy covering the shared vehicle owner
 and the shared vehicle driver is in effect only during the 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) of the daily rate, fees, and, if applicable, insurance or protection package costs that
 are charged to the shared vehicle owner or shared vehicle driver;
        (5) that the shared vehicle owner's motor vehicle liability insurance policy may not
 provide coverage for the shared vehicle;
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        S.B. 121                                                                         Enrolled Copy
          (6) of an emergency telephone number to contact personnel capable of fielding
 roadside assistance or other customer service inquiries; and
          (7) whether 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 vehicle.
          Section 7. Section 13-48a-204 is enacted to read:
          13-48a-204. Records relating to the use of shared vehicles.
          (1) A car-sharing program shall collect and verify records pertaining to the use of a
 shared vehicle, including 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.
          (2) The car-sharing program shall retain the records for a time period not less than two
 years.
          Section 8. Section 13-48a-205 is enacted to read:
          13-48a-205. GPS or other special equipment.
          (1) A car-sharing program:
          (a) has sole responsibility for any GPS or other special equipment that the car-sharing
 company places on or in a shared vehicle to monitor the shared vehicle or facilitate the
 car-sharing agreement; and
          (b) shall agree to indemnify and hold harmless the shared vehicle owner for any
 damage to the shared vehicle that:
          (i) is a result of damage to or theft of equipment described in Subsection (1)(a);
          (ii) occurs during the car-sharing period; and
          (iii) is not caused by the shared vehicle owner.
          (2) A car-sharing program may seek indemnity from a shared vehicle driver for any
 loss of or damage to equipment described in Subsection (1)(a) that occurs during the
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       Enrolled Copy                                                                            S.B. 121
 car-sharing period.
        Section 9. Section 13-48a-301 is enacted to read:
        Part 3. Liability and Insurance for Covered Loss from Operation of Shared Vehicle
        13-48a-301. Car-sharing company assumption of liability for a covered loss --
 Exception.
        (1) Except as provided in Subsection (2), a car-sharing program shall assume liability
 of a shared vehicle owner for bodily injury or property damage to third parties or personal
 injury protection losses during the car-sharing period in an amount stated in the car-sharing
 agreement, which amount may not be less than those set forth in Section 31A-22-304.
        (2) Notwithstanding the definition of car-sharing termination time, the assumption of
 liability under Subsection (1) does not apply to a shared vehicle owner when:
        (a) a shared vehicle owner makes an intentional or fraudulent material
 misrepresentation or omission to the car-sharing program before the car-sharing period in
 which the loss occurred; or
        (b) acting in concert with a shared vehicle driver who fails to return the shared vehicle
 pursuant to the terms of the car-sharing agreement.
        (3) Notwithstanding the definition of car-sharing termination