H.F. _____ Section 1. NEW SECTION . 516C.1 Short title. 1 This chapter shall be known and may be cited as the 2 “ Peer-to-Peer Car Sharing Program Act” . 3 Sec. 2. NEW SECTION . 516C.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Car sharing” means the authorized use of a vehicle 7 by an individual other than the vehicle’s owner through a 8 peer-to-peer car sharing program. 9 2. “Car sharing delivery period” means the time period in 10 which a shared vehicle is being delivered to the location of a 11 car sharing start time pursuant to a program agreement. 12 3. “Car sharing period” means the period of time commencing 13 with either the car sharing delivery period, or, if there is no 14 car sharing delivery period, the car sharing start time, and 15 ending at the car sharing termination time as established in a 16 program agreement. 17 4. “Car sharing start time” means the time at which a 18 shared vehicle becomes subject to the control of the shared 19 vehicle driver at or after a reservation of a shared vehicle is 20 scheduled to begin pursuant to a program agreement. 21 5. “Car sharing termination time” means the earliest of any 22 of the following events: 23 a. The expiration of the period of time established by the 24 program agreement for the use of a shared vehicle by a shared 25 vehicle driver, if the shared vehicle driver delivers the 26 shared vehicle at the time and to the location agreed upon in 27 the program agreement. 28 b. The time when the shared vehicle owner retakes possession 29 or control of the shared vehicle from a shared vehicle driver. 30 c. The time when the shared vehicle is returned to an 31 alternate location as agreed upon by the shared vehicle owner 32 and shared vehicle driver and incorporated into the program 33 agreement. 34 6. “Peer-to-peer car sharing program” or “program” means 35 -1- LSB 5595YC (4) 91 nls/ko 1/ 13

H.F. _____ a business platform that connects shared vehicle owners with 1 shared vehicle drivers for financial consideration pursuant 2 to a program agreement. “Peer-to-peer car sharing program” or 3 “program” does not include a rental car company as defined by 4 section 516D.3. 5 7. “Program agreement” means a contract executed by a shared 6 vehicle owner and a shared vehicle driver that contains the 7 terms and conditions for the use of a shared vehicle through a 8 peer-to-peer car sharing program. “Program agreement” does not 9 include a rental agreement as defined by section 516D.3. 10 8. “Shared vehicle” means a vehicle that is available for 11 sharing through a peer-to-peer car sharing program. “Shared 12 vehicle” does not include a rental vehicle as that term is 13 defined in section 516D.3. 14 9. “Shared vehicle driver” means an individual authorized to 15 drive a shared vehicle pursuant to a program agreement. 16 10. “Shared vehicle owner” means a registered owner, or the 17 registered owner’s designee, of a vehicle made available for 18 car sharing. 19 11. “Vehicle” means any self-propelled motor vehicle subject 20 to registration under chapter 321, or under the laws of another 21 state, that is designed primarily for carrying no more than 22 nine passengers at any one time. “Vehicle” does not include a 23 motorcycle or motorized bicycle. 24 Sec. 3. NEW SECTION . 516C.3 Program —— assumption of 25 liability. 26 1. Except as provided in subsection 2, a program shall 27 assume liability for a shared vehicle owner for all bodily 28 injuries or property damage to a third party during a car 29 sharing period involving the shared vehicle owner’s vehicle 30 in the liability amount stated in the applicable program 31 agreement, but not less than the liability amounts under 32 section 321A.21. Notwithstanding the definition of “car sharing 33 termination time” in section 516C.2, the assumption of liability 34 shall apply to bodily injury and property damage losses by a 35 -2- LSB 5595YC (4) 91 nls/ko 2/ 13

H.F. _____ damaged third party as required under section 321A.21. 1 2. The assumption of liability by a program pursuant to 2 subsection 1 shall not apply to a shared vehicle owner if, 3 prior to or during a car sharing period described in subsection 4 1, the shared vehicle owner does any of the following: 5 a. Makes an intentional or fraudulent material 6 misrepresentation or omission to the program. 7 b. Acts in concert with the shared vehicle driver to have 8 the shared vehicle driver fail to return the shared vehicle 9 according to the terms of the program agreement. 10 3. Notwithstanding any other provision of law to the 11 contrary, a program and a shared vehicle owner shall not be 12 liable under any state or local law that imposes liability 13 based on vehicle ownership consistent with the provisions of 14 49 U.S.C. §30106. 15 Sec. 4. NEW SECTION . 516C.4 Motor vehicle liability 16 insurance requirements —— claims. 17 1. a. A program shall ensure that, during a car sharing 18 period, a shared vehicle owner and a shared vehicle driver are 19 insured under a motor vehicle liability insurance policy that 20 provides insurance coverage in an amount not less than the 21 minimum amounts set forth in section 321A.21. 22 b. The liability policy under paragraph “a” must meet either 23 of the following requirements: 24 (1) The liability policy recognizes that the vehicle 25 covered by the liability policy is made available and used 26 through a peer-to-peer car sharing program. 27 (2) The liability policy does not expressly prohibit the 28 use of the vehicle covered by the liability policy as a shared 29 vehicle. 30 2. The liability insurance coverage requirements under 31 this section may be satisfied by any of the following, or a 32 combination of any of the following: 33 a. A liability policy maintained by the shared vehicle 34 owner. 35 -3- LSB 5595YC (4) 91 nls/ko 3/ 13

H.F. _____ b. A liability policy maintained by the shared vehicle 1 driver. 2 c. A liability policy maintained by the program. 3 3. The motor vehicle liability insurance policy under 4 subsection 1, paragraph “a” , shall be primary during each 5 car sharing period and if during the car sharing period a 6 claim occurs in another state that requires minimum financial 7 responsibility limits higher than the minimum limits required 8 by subsection 1, paragraph “a” , the coverage maintained under 9 this section shall satisfy the difference in the required 10 minimum coverage amounts, up to the applicable policy limit. 11 4. An insurer or program providing coverage under 12 subsection 2 shall assume primary liability for a claim under 13 the liability policy in all of the following circumstances: 14 a. There is a dispute as to the individual in control of 15 the shared vehicle at the time of an event giving rise to a 16 claim and the program is unable to comply with section 516C.12, 17 subsection 2. 18 b. There is a dispute as to whether the shared vehicle was 19 returned to the agreed location at the car sharing termination 20 time pursuant to section 516C.2, subsection 5, paragraph “c” . 21 5. If, at the time of a claim, the liability policy 22 maintained by a shared vehicle owner or a shared vehicle driver 23 has lapsed or does not provide the required coverage, the 24 liability policy maintained by the program shall provide the 25 required coverage beginning with the first dollar of the claim 26 and the program shall defend such claim under the program’s 27 liability policy, not including a claim under section 516C.3, 28 subsection 2. 29 6. Notwithstanding any other provision of law to the 30 contrary, a program shall have an insurable interest in a 31 shared vehicle during the car sharing period. 32 7. A program may own and maintain, as the named insured, one 33 or more motor vehicle liability policies that provide coverage 34 for any of the following: 35 -4- LSB 5595YC (4) 91 nls/ko 4/ 13

H.F. _____ a. Liabilities assumed by the program under a car sharing 1 agreement. 2 b. Liability of a shared vehicle owner or a shared vehicle 3 driver. 4 c. Any damage to, or loss of, a shared vehicle. 5 8. Coverage under a liability insurance policy maintained 6 by a program shall not be dependent on another insurer or 7 another liability insurance policy first denying a claim. 8 9. This section shall not be construed to create liability 9 on a program to maintain a liability insurance policy. 10 10. This section shall not be construed to limit the 11 liability of a program for an act or omission of the program 12 that results in injury to a person as a result of the use of a 13 shared vehicle through a program. 14 11. This section shall not be construed to limit the ability 15 of a program to contractually seek indemnification from a 16 shared vehicle owner or a shared vehicle driver for economic 17 loss sustained by the program resulting from a breach of the 18 terms and conditions of the program agreement. 19 Sec. 5. NEW SECTION . 516C.5 Liability policy —— exclusions. 20 1. A motor vehicle liability policy may exclude coverage 21 for, and the duty to defend or indemnify, a shared vehicle 22 owner for any claims arising out of the shared vehicle owner’s 23 participation in a program, including but not limited to the 24 following: 25 a. Liability coverage for bodily injury and property damage. 26 b. Personal accident coverage. 27 c. Uninsured and underinsured motorist coverage. 28 d. Medical payments coverage. 29 e. Comprehensive physical damage coverage. 30 f. Collision physical damage coverage. 31 2. This chapter shall not be construed to invalidate, limit, 32 or restrict an exclusion in a liability policy, including an 33 exclusion of coverage for vehicles made available for rent, 34 sharing, hire, or any business use. 35 -5- LSB 5595YC (4) 91 nls/ko 5/ 13

H.F. _____ 3. This chapter shall not be construed to invalidate, limit, 1 or restrict an insurance carrier’s ability to underwrite an 2 insurance policy, or to cancel or to not renew an insurance 3 policy. 4 Sec. 6. NEW SECTION . 516C.6 Contribution against 5 indemnification. 6 If an insurance carrier that issued a liability policy 7 defends or indemnifies a claim against a shared vehicle owner 8 or a shared vehicle driver for a loss or injury that occurs 9 during a car sharing period, and the claim is excluded under 10 the terms of the liability policy, the insurance carrier may 11 seek recovery against the program’s liability policy. 12 Sec. 7. NEW SECTION . 516C.7 Responsibility for physical 13 equipment. 14 A program shall be exclusively responsible for any 15 equipment, including a global positioning system or other 16 special equipment, used to monitor or facilitate a car sharing 17 transaction. A program shall agree to indemnify, and shall not 18 hold responsible, a shared vehicle owner for any damage to, 19 or theft of, any equipment placed in or on a shared vehicle 20 during the car sharing period unless the damage to, or theft 21 of, the equipment is the fault of the shared vehicle owner. 22 The program may seek indemnity from the shared vehicle driver 23 for loss or damage to such equipment that occurs during the car 24 sharing period. 25 Sec. 8. NEW SECTION . 516C.8 Program agreements. 26 1. A program agreement shall disclose to a shared vehicle 27 owner and shared vehicle driver all of the following: 28 a. That a shared vehicle owner’s or the shared vehicle 29 driver’s motor vehicle liability insurance policy does not 30 provide a defense or indemnification for a claim asserted by 31 the program. 32 b. Any right the program has to seek indemnification from 33 the shared vehicle owner or the shared vehicle driver for any 34 economic losses incurred by the program as a result of a breach 35 -6- LSB 5595YC (4) 91 nls/ko 6/ 13

H.F. _____ of the terms and conditions of the program agreement by the 1 shared vehicle owner or the shared vehicle driver. 2 c. That the program’s liability policy coverage for the 3 shared vehicle owner and the shared vehicle driver is only 4 in effect for the car sharing period and that the program’s 5 liability policy coverage does not cover the shared vehicle 6 driver and the shared vehicle owner for any use of the shared 7 vehicle by the shared vehicle driver outside of the car sharing 8 period. 9 d. That the shared vehicle owner’s motor vehicle liability 10 insurance policy may not provide coverage for a shared vehicle. 11 e. An emergency telephone number for personnel capable 12 of fielding roadside assistance, and a telephone number for 13 customer service inquiries. 14 f. The daily rate, fees, and, if applicable, any costs for 15 insurance or a protection package that is charged to the shared 16 vehicle owner or the shared vehicle driver. 17 Sec. 9. NEW SECTION . 516C.9 Program agreement —— approved 18 parties. 19 A program shall only enter into a program agreement with the 20 following persons: 21 1. A resident of this state who holds a driver’s license 22 issued in this state that authorizes the person to operate a 23 vehicle of the class of the shared vehicle that is the subject 24 of the program agreement. 25 2. A nonresident of this state who holds a driver’s license 26 issued by the state or country of the person’s residence that 27 authorizes the person to operate a vehicle of the class of the 28 shared vehicle that is the subject of the program agreement, 29 and is at least the minimum age required by this state to 30 operate a vehicle of that class. 31 3. A person who is specifically authorized by this state to 32 operate a vehicle of the class of the shared vehicle that is 33 the subject of the program agreement. 34 4. A program shall keep permanent records of all of the 35 -7- LSB 5595YC (4) 91 nls/ko 7/ 13

H.F. _____ following: 1 a. The names and address of each shared vehicle driver. 2 b. The driver’s license number and place of issuance of each 3 shared vehicle driver, and any other person who may operate a 4 shared vehicle under a program agreement. 5 Sec. 10. NEW SECTION . 516C.10 Shared vehicles —— safety 6 recalls. 7 1. On the date a person registers as a shared vehicle owner, 8 and prior to the time a shared vehicle owner makes a shared 9 vehicle available for car sharing, the program shall do all of 10 the following: 11 a. Verify that a safety recall has not been issued for the 12 shared vehicle for which repairs have not been made. 13 b. Notify the shared vehicle owner of the requirements under 14 subsection 2. 15 2. a. If a shared vehicle owner receives actual notice of a 16 safety recall before the vehicle is made available as a shared 17 vehicle, the person shall not make the vehicle available for 18 car sharing until the safety repair has been made. 19 b. If a shared vehicle owner receives actual notice of a 20 safety recall while the shared vehicle is available for car 21 sharing, the shared vehicle owner shall remove the shared 22 vehicle from the program as soon as practicably possible, and 23 shall not make the vehicle available for car sharing until 24 after the safety recall repair has been made. 25 c. If a shared vehicle owner receives actual notice of a 26 safety recall on a shared vehicle while the shared vehicle is 27 being used by, or is in the possession of, a shared vehicle 28 driver, the shared vehicle owner shall, as soon as practicable, 29 notify the program about the safety recall and the shared 30 vehicle owner shall address the safety recall repair. 31 Sec. 11. NEW SECTION . 516C.11 Shared vehicles —— liens. 32 If there is a lien on a shared vehicle, the program shall 33 notify the shared vehicle owner when the vehicle owner 34 registers as a shared vehicle owner, and again immediately 35 -8- LSB 5595YC (4) 91 nls/ko 8/ 13

H.F. _____ prior to the time the vehicle is made available for car 1 sharing, that the vehicle’s use as a shared vehicle may violate 2 the terms of the contract with the lienholder. 3 Sec. 12. NEW SECTION . 516C.12 Recordkeeping. 4 1. A program shall collect and verify records relating to 5 the use of each shared vehicle, including all of the following: 6 a. All dates and times that the shared vehicle is the 7 subject of a program agreement. 8 b. The location of each car sharing start time and each car 9 sharing termination time. 10 c. All fees paid by each shared vehicle driver. 11 d. All revenue received by the shared vehicle owner. 12 2. Upon request, a program shall provide the information 13 collected pursuant to subsection 1 to the shared vehicle owner, 14 the insurance carrier for the shared vehicle owner’s liability 15 policy, or the insurance carrier for the shared vehicle 16 driver’s liability policy, for purposes of a claim coverage 17 investigation, settlement, negotiation, or litigation related 18 to a claim incurred during a car sharing period. 19 3. A program shall retain the records under subsection 1 for 20 the period required under section 614.1, subsection 2. 21 Sec. 13. RULES. The commissioner of insurance may adopt 22 rules pursuant to chapter 17A as necessary to administer this 23 Act. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to peer-to-peer car sharing programs. 28 “Peer-to-peer car sharing program” (program) is defined in the 29 bill. 30 Under the bill, a program assumes liability to a shared 31 vehicle owner (owner) for all bodily injuries or property 32 damage to a third party during the car sharing period in the 33 amount stated in the program agreement (agreement), but not 34 less than the amounts provided in Code section 321A.21. The 35 -9- LSB 5595YC (4) 91 nls/ko 9/ 13

H.F. _____ assumption of liability shall apply to bodily injury and 1 property damage losses by a damaged third party as required 2 under Code section 321A.21. “Shared vehicle owner”, “car 3 sharing period”, and “program agreement” are defined in the 4 bill. The assumption of liability by a program shall not 5 apply if the owner makes an intentional or fraudulent material 6 misrepresentation or omission to the program prior to the car 7 sharing period, or acts in concert with a shared vehicle driver 8 (driver) to have the driver fail to return the shared vehicle 9 according to the terms of the agreement. “Shared vehicle 10 driver” is defined in the bill. Under the bill, a program and 11 an owner shall be exempt from liability under any state or 12 local law that imposes liability based on vehicle ownership 13 consistent with 49 U.S.C. §30106. 14 The bill requires a program to ensure that a motor vehicle 15 liability policy (liability policy) is in effect during each 16 car sharing period, and the policy may be maintained by the 17 owner, the driver, the program, or any combination of the 18 three. “Motor vehicle liability policy” is defined in the 19 bill. The liability policy must either recognize that the 20 shared vehicle will be made available and used through a 21 program, or not expressly exclude the use of the vehicle as 22 a shared vehicle. The liability policy shall be primary 23 during each car sharing period and if during the car sharing 24 period a claim occurs in another state that requires minimum 25 financial responsibility limits higher than required by 26 the bill, the coverage shall satisfy the difference in the 27 required minimum coverage amounts, up to the policy limit. 28 The insurer or program providing coverage under a liability 29 policy assumes primary liability for a claim under the policy 30 in the circumstances described in the bill. If, at the time of 31 a claim, the liability policy maintained by the owner or the 32 driver has lapsed or does not provide coverage, the liability 33 policy maintained by the program shall provide the necessary 34 coverage for the claim, and the program shall defend a claim 35 -10- LSB 5595YC (4) 91 nls/ko 10/ 13

H.F. _____ under the program’s liability policy. The bill creates an 1 insurable interest for a program in a shared vehicle during 2 the car sharing period. A program may maintain as the named 3 insured one or more liability policies that provide coverage 4 for liabilities assumed by the program under a car sharing 5 agreement, liability of the owner or the driver, or any damage 6 to, or loss of, a shared vehicle. Coverage under a policy 7 maintained by a program shall not be dependent on another 8 insurer or policy first denying a claim. Code section 516C.4 9 shall not be construed to create liability on a program to 10 maintain a liability insurance policy, to limit the liability 11 of a program for an act or omission that results in injury to a 12 person, or to limit the ability of a program to contractually 13 seek indemnification from an owner or a driver. 14 A liability policy may exclude coverage, and the duty to 15 defend or indemnify an owner, for any claims arising out of a 16 program, including liability coverage for bodily injury and 17 property damage, personal accident coverage, uninsured and 18 underinsured motorist coverage, medical payments coverage, 19 comprehensive physical damage coverage, and collision 20 physical damage coverage. The bill shall not be construed to 21 invalidate, limit, or restrict an exclusion in a liability 22 policy, including an exclusion of coverage for vehicles made 23 available for rent, sharing, hire, or any business use. The 24 bill shall not be construed to invalidate, limit, or restrict 25 an insurance carrier’s ability to underwrite an insurance 26 policy or to cancel or not to renew an insurance policy. 27 A liability policy that defends or indemnifies a claim made 28 against an owner or a driver for loss or injury that occurred 29 during a car sharing period, where the claim is excluded under 30 the terms of the liability policy, may seek recovery against 31 the program’s liability policy. A program shall be exclusively 32 responsible for any equipment placed in or on a shared vehicle 33 to monitor or facilitate the car sharing transaction, unless 34 damage to or theft of such equipment is the fault of the shared 35 -11- LSB 5595YC (4) 91 nls/ko 11/ 13

H.F. _____ vehicle owner. The program may seek indemnity from the shared 1 vehicle driver for loss or damage to such equipment that occurs 2 during the car sharing period. 3 The bill requires an agreement to disclose to the owner 4 and the driver (1) that the applicable liability policy 5 does not provide a defense or indemnification for a claim 6 asserted by the program; (2) any right of the program to seek 7 indemnification from the owner or driver for economic loss 8 resulting from a breach of the terms and conditions of the 9 program; (3) that the program’s liability policy coverage 10 of the owner and driver terminates upon the car sharing 11 termination time; (4) that the owner’s liability policy may 12 not cover a shared vehicle; (5) emergency telephone numbers 13 for personnel capable of fielding roadside assistance and for 14 customer service; and (6) the daily rate, fees, and any costs 15 of insurance or protection packages that are charged to the 16 owner or driver. An agreement shall also include an emergency 17 telephone number for roadside assistance and a telephone number 18 for other customer service inquiries. A program shall only 19 enter into an agreement with any person who holds a driver’s 20 license issued in this state to operate a vehicle of the class 21 of the shared vehicle, hold a driver’s license issued by 22 another state or country that authorizes the person to operate 23 a vehicle of the class of the shared vehicle and who is at 24 least the minimum age required for a resident of this state 25 to operate a vehicle of the class of the shared vehicle, or a 26 person who is otherwise specifically authorized by this state 27 to drive vehicles of the class of the shared vehicle. 28 The bill requires a program, prior to the time an owner makes 29 a shared vehicle available for car sharing, to verify that 30 the shared vehicle does not have any safety recalls for which 31 repairs have not been made, and to notify the owner of the 32 requirements to make safety repairs as detailed in the bill. 33 The bill details additional requirements related to safety 34 recalls. 35 -12- LSB 5595YC (4) 91 nls/ko 12/ 13

H.F. _____ The bill requires a program to notify an owner at the time of 1 registration, and prior to the owner making a vehicle available 2 for car sharing, that if there are any liens against the shared 3 vehicle the vehicle’s use through the program may violate the 4 terms of the owner’s contract with the lienholder. 5 The bill requires a program to collect and verify records 6 relating to the use of a shared vehicle, including all dates 7 and times that a shared vehicle is used, locations of a car 8 sharing start time and car sharing termination time, fees 9 paid by the driver, and revenues received by the owner, 10 and to retain such records as required by the bill. Upon 11 request, a program shall provide such information to the 12 owner, the insurance carrier for the owner’s liability policy, 13 or the insurance carrier for the driver’s liability policy 14 for purposes of a claim coverage investigation, settlement, 15 negotiation, or litigation. A program shall keep permanent 16 records of the names and addresses of each driver and the 17 driver’s license number and place of issuance of each driver 18 and any other person who may operate the shared vehicle under 19 the program agreement. 20 The bill does not limit the liability of a program for any 21 act or omission of the program that results in injury to a 22 person from the use of a shared vehicle. 23 The commissioner of insurance may adopt rules as necessary 24 to administer the bill. 25 -13- LSB 5595YC (4) 91 nls/ko 13/ 13