Senate File 2290 S-5058 Amend Senate File 2290 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. NEW SECTION . 537C.1 Short title. 4 This chapter shall be known and may be cited as the 5 “ Peer-to-Peer Car Sharing Program Act” . 6 Sec. 2. NEW SECTION . 537C.2 Definitions. 7 As used in this chapter, unless the context otherwise 8 requires: 9 1. “Car sharing” means the authorized use of a vehicle 10 by an individual other than the vehicle’s owner through a 11 peer-to-peer car sharing program. 12 2. “Car sharing delivery period” means the time period in 13 which a shared vehicle is being delivered to the location of a 14 car sharing start time pursuant to a program agreement. 15 3. “Car sharing period” means the period of time commencing 16 with either the car sharing delivery period, or, if there is no 17 car sharing delivery period, the car sharing start time, and 18 ending at the car sharing termination time as established in a 19 program agreement. 20 4. “Car sharing start time” means the time at which a 21 shared vehicle becomes subject to the control of the shared 22 vehicle driver at or after a reservation of a shared vehicle is 23 scheduled to begin pursuant to a program agreement. 24 5. “Car sharing termination time” means the earliest of any 25 of the following events: 26 a. The expiration of the period of time established by the 27 program agreement for the use of a shared vehicle by a shared 28 vehicle driver, if the shared vehicle driver delivers the 29 shared vehicle at the time and to the location agreed upon in 30 the program agreement. 31 b. The time when the shared vehicle owner retakes possession 32 or control of the shared vehicle from a shared vehicle driver. 33 c. The time when the shared vehicle is returned to an 34 alternate location as agreed upon by the shared vehicle owner 35 -1- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 1/ 9 #1.

and shared vehicle driver and incorporated into the program 1 agreement. 2 6. “Peer-to-peer car sharing program” or “program” means 3 a business platform that connects shared vehicle owners with 4 shared vehicle drivers for financial consideration pursuant 5 to a program agreement. “Peer-to-peer car sharing program” or 6 “program” does not include a rental car company as defined by 7 section 516D.3. 8 7. “Program agreement” means a contract executed by a shared 9 vehicle owner and a shared vehicle driver that contains the 10 terms and conditions for the use of a shared vehicle through a 11 peer-to-peer car sharing program. “Program agreement” does not 12 include a rental agreement as defined by section 516D.3. 13 8. “Shared vehicle” means a vehicle that is available for 14 sharing through a peer-to-peer car sharing program. “Shared 15 vehicle” does not include a rental vehicle as that term is 16 defined in section 516D.3. 17 9. “Shared vehicle driver” means an individual authorized to 18 drive a shared vehicle pursuant to a program agreement. 19 10. “Shared vehicle owner” means a registered owner, or the 20 registered owner’s designee, of a vehicle made available for 21 car sharing. 22 11. “Vehicle” means any self-propelled motor vehicle subject 23 to registration under chapter 321, or under the laws of another 24 state, that is designed primarily for carrying no more than 25 nine passengers at any one time. “Vehicle” does not include a 26 motorcycle or motorized bicycle. 27 Sec. 3. NEW SECTION . 537C.3 Program —— assumption of 28 liability. 29 1. Except as provided in subsection 2, a program shall 30 assume liability for a shared vehicle owner for all bodily 31 injuries or property damage to a third party during a car 32 sharing period involving the shared vehicle owner’s vehicle 33 in the liability amount stated in the applicable program 34 agreement, but not less than the liability amounts under 35 -2- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 2/ 9

section 321A.21. Notwithstanding the definition of “car sharing 1 termination time” in section 537C.2, the assumption of liability 2 shall apply to bodily injury and property damage losses by a 3 damaged third party as required under section 321A.21. 4 2. The assumption of liability by a program pursuant to 5 subsection 1 shall not apply to a shared vehicle owner if, 6 prior to or during a car sharing period described in subsection 7 1, the shared vehicle owner does any of the following: 8 a. Makes an intentional or fraudulent material 9 misrepresentation or omission to the program. 10 b. Acts in concert with the shared vehicle driver to have 11 the shared vehicle driver fail to return the shared vehicle 12 according to the terms of the program agreement. 13 3. Notwithstanding any other provision of law to the 14 contrary, a program and a shared vehicle owner shall not be 15 liable under any state or local law that imposes liability 16 based on vehicle ownership consistent with the provisions of 17 49 U.S.C. §30106. 18 Sec. 4. NEW SECTION . 537C.4 Motor vehicle liability 19 insurance requirements —— claims. 20 1. a. A program shall ensure that, during a car sharing 21 period, a shared vehicle owner and a shared vehicle driver are 22 insured under a motor vehicle liability insurance policy that 23 provides insurance coverage in an amount not less than the 24 minimum amounts set forth in section 321A.21. 25 b. The liability policy under paragraph “a” must meet either 26 of the following requirements: 27 (1) The liability policy recognizes that the vehicle 28 covered by the liability policy is made available and used 29 through a peer-to-peer car sharing program. 30 (2) The liability policy does not expressly prohibit the 31 use of the vehicle covered by the liability policy as a shared 32 vehicle. 33 2. The liability insurance coverage requirements under 34 this section may be satisfied by any of the following, or a 35 -3- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 3/ 9

combination of any of the following: 1 a. A liability policy maintained by the shared vehicle 2 owner. 3 b. A liability policy maintained by the shared vehicle 4 driver. 5 c. A liability policy maintained by the program. 6 3. The motor vehicle liability insurance policy under 7 subsection 1, paragraph “a” , shall be primary during each 8 car sharing period and if during the car sharing period a 9 claim occurs in another state that requires minimum financial 10 responsibility limits higher than the minimum limits required 11 by subsection 1, paragraph “a” , the coverage maintained under 12 this section shall satisfy the difference in the required 13 minimum coverage amounts, up to the applicable policy limit. 14 4. An insurer or program providing coverage under 15 subsection 2 shall assume primary liability for a claim under 16 the liability policy in all of the following circumstances: 17 a. There is a dispute as to the individual in control of 18 the shared vehicle at the time of an event giving rise to a 19 claim and the program is unable to comply with section 537C.12, 20 subsection 2. 21 b. There is a dispute as to whether the shared vehicle was 22 returned to the agreed location at the car sharing termination 23 time pursuant to section 537C.2, subsection 5, paragraph “c” . 24 5. If, at the time of a claim, the liability policy 25 maintained by a shared vehicle owner or a shared vehicle driver 26 has lapsed or does not provide the required coverage, the 27 liability policy maintained by the program shall provide the 28 required coverage beginning with the first dollar of the claim 29 and the program shall defend such claim under the program’s 30 liability policy, not including a claim under section 537C.3, 31 subsection 2. 32 6. Notwithstanding any other provision of law to the 33 contrary, a program shall have an insurable interest in a 34 shared vehicle during the car sharing period. 35 -4- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 4/ 9

7. A program may own and maintain, as the named insured, one 1 or more motor vehicle liability policies that provide coverage 2 for any of the following: 3 a. Liabilities assumed by the program under a car sharing 4 agreement. 5 b. Liability of a shared vehicle owner or a shared vehicle 6 driver. 7 c. Any damage to, or loss of, a shared vehicle. 8 8. Coverage under a liability insurance policy maintained 9 by a program shall not be dependent on another insurer or 10 another liability insurance policy first denying a claim. 11 9. This section shall not be construed to create liability 12 on a program to maintain a liability insurance policy. 13 10. This section shall not be construed to limit the 14 liability of a program for an act or omission of the program 15 that results in injury to a person as a result of the use of a 16 shared vehicle through a program. 17 11. This section shall not be construed to limit the ability 18 of a program to contractually seek indemnification from a 19 shared vehicle owner or a shared vehicle driver for economic 20 loss sustained by the program resulting from a breach of the 21 terms and conditions of the program agreement. 22 Sec. 5. NEW SECTION . 537C.5 Liability policy —— exclusions. 23 1. A motor vehicle liability policy may exclude coverage 24 for, and the duty to defend or indemnify, a shared vehicle 25 owner for any claims arising out of the shared vehicle owner’s 26 participation in a program, including but not limited to the 27 following: 28 a. Liability coverage for bodily injury and property damage. 29 b. Personal accident coverage. 30 c. Uninsured and underinsured motorist coverage. 31 d. Medical payments coverage. 32 e. Comprehensive physical damage coverage. 33 f. Collision physical damage coverage. 34 2. This chapter shall not be construed to invalidate, limit, 35 -5- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 5/ 9

or restrict an exclusion in a liability policy, including an 1 exclusion of coverage for vehicles made available for rent, 2 sharing, hire, or any business use. 3 3. This chapter shall not be construed to invalidate, limit, 4 or restrict an insurance carrier’s ability to underwrite an 5 insurance policy, or to cancel or to not renew an insurance 6 policy. 7 Sec. 6. NEW SECTION . 537C.6 Contribution against 8 indemnification. 9 If an insurance carrier that issued a liability policy 10 defends or indemnifies a claim against a shared vehicle owner 11 or a shared vehicle driver for a loss or injury that occurs 12 during a car sharing period, and the claim is excluded under 13 the terms of the liability policy, the insurance carrier may 14 seek recovery against the program’s liability policy. 15 Sec. 7. NEW SECTION . 537C.7 Responsibility for physical 16 equipment. 17 A program shall be exclusively responsible for any 18 equipment, including a global positioning system or other 19 special equipment, used to monitor or facilitate a car sharing 20 transaction. A program shall agree to indemnify, and shall not 21 hold responsible, a shared vehicle owner for any damage to, 22 or theft of, any equipment placed in or on a shared vehicle 23 during the car sharing period unless the damage to, or theft 24 of, the equipment is the fault of the shared vehicle owner. 25 The program may seek indemnity from the shared vehicle driver 26 for loss or damage to such equipment that occurs during the car 27 sharing period. 28 Sec. 8. NEW SECTION . 537C.8 Program agreements. 29 1. A program agreement shall disclose to a shared vehicle 30 owner and shared vehicle driver all of the following: 31 a. That a shared vehicle owner’s or the shared vehicle 32 driver’s motor vehicle liability insurance policy does not 33 provide a defense or indemnification for a claim asserted by 34 the program. 35 -6- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 6/ 9

b. Any right the program has to seek indemnification from 1 the shared vehicle owner or the shared vehicle driver for any 2 economic losses incurred by the program as a result of a breach 3 of the terms and conditions of the program agreement by the 4 shared vehicle owner or the shared vehicle driver. 5 c. That the program’s liability policy coverage for the 6 shared vehicle owner and the shared vehicle driver is only 7 in effect for the car sharing period and that the program’s 8 liability policy coverage does not cover the shared vehicle 9 driver and the shared vehicle owner for any use of the shared 10 vehicle by the shared vehicle driver outside of the car sharing 11 period. 12 d. That the shared vehicle owner’s motor vehicle liability 13 insurance policy may not provide coverage for a shared vehicle. 14 e. An emergency telephone number for personnel capable 15 of fielding roadside assistance, and a telephone number for 16 customer service inquiries. 17 f. The daily rate, fees, and, if applicable, any costs for 18 insurance or a protection package that is charged to the shared 19 vehicle owner or the shared vehicle driver. 20 Sec. 9. NEW SECTION . 537C.9 Program agreement —— approved 21 parties. 22 A program shall only enter into a program agreement with the 23 following persons: 24 1. A resident of this state who holds a driver’s license 25 issued in this state that authorizes the person to operate a 26 vehicle of the class of the shared vehicle that is the subject 27 of the program agreement. 28 2. A nonresident of this state who holds a driver’s license 29 issued by the state or country of the person’s residence that 30 authorizes the person to operate a vehicle of the class of the 31 shared vehicle that is the subject of the program agreement, 32 and is at least the minimum age required by this state to 33 operate a vehicle of that class. 34 3. A person who is specifically authorized by this state to 35 -7- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 7/ 9

operate a vehicle of the class of the shared vehicle that is 1 the subject of the program agreement. 2 4. A program shall keep permanent records of all of the 3 following: 4 a. The names and address of each shared vehicle driver. 5 b. The driver’s license number and place of issuance of each 6 shared vehicle driver, and any other person who may operate a 7 shared vehicle under a program agreement. 8 Sec. 10. NEW SECTION . 537C.10 Shared vehicles —— safety 9 recalls. 10 1. On the date a person registers as a shared vehicle owner, 11 and prior to the time a shared vehicle owner makes a shared 12 vehicle available for car sharing, the program shall do all of 13 the following: 14 a. Verify that a safety recall has not been issued for the 15 shared vehicle for which repairs have not been made. 16 b. Notify the shared vehicle owner of the requirements under 17 subsection 2. 18 2. a. If a shared vehicle owner receives actual notice of a 19 safety recall before the vehicle is made available as a shared 20 vehicle, the person shall not make the vehicle available for 21 car sharing until the safety repair has been made. 22 b. If a shared vehicle owner receives actual notice of a 23 safety recall while the shared vehicle is available for car 24 sharing, the shared vehicle owner shall remove the shared 25 vehicle from the program as soon as practicably possible, and 26 shall not make the vehicle available for car sharing until 27 after the safety recall repair has been made. 28 c. If a shared vehicle owner receives actual notice of a 29 safety recall on a shared vehicle while the shared vehicle is 30 being used by, or is in the possession of, a shared vehicle 31 driver, the shared vehicle owner shall, as soon as practicable, 32 notify the program about the safety recall and the shared 33 vehicle owner shall address the safety recall repair. 34 Sec. 11. NEW SECTION . 537C.11 Shared vehicles —— liens. 35 -8- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 8/ 9

If there is a lien on a shared vehicle, the program shall 1 notify the shared vehicle owner when the vehicle owner 2 registers as a shared vehicle owner, and again immediately 3 prior to the time the vehicle is made available for car 4 sharing, that the vehicle’s use as a shared vehicle may violate 5 the terms of the contract with the lienholder. 6 Sec. 12. NEW SECTION . 537C.12 Recordkeeping. 7 1. A program shall collect and verify records relating to 8 the use of each shared vehicle, including all of the following: 9 a. All dates and times that the shared vehicle is the 10 subject of a program agreement. 11 b. The location of each car sharing start time and each car 12 sharing termination time. 13 c. All fees paid by each shared vehicle driver. 14 d. All revenue received by the shared vehicle owner. 15 2. Upon request, a program shall provide the information 16 collected pursuant to subsection 1 to the shared vehicle owner, 17 the insurance carrier for the shared vehicle owner’s liability 18 policy, or the insurance carrier for the shared vehicle 19 driver’s liability policy, for purposes of a claim coverage 20 investigation, settlement, negotiation, or litigation related 21 to a claim incurred during a car sharing period. 22 3. A program shall retain the records under subsection 1 for 23 the period required under section 614.1, subsection 2. > 24 ______________________________ ADRIAN DICKEY -9- SF 2290.3164 (1) 91 (amending this SF 2290 to CONFORM to HF 2497) nls/ko 9/ 9