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8 LONG TITLE
9 General Description:
10 This bill creates regulations and provisions related to services provided over software
11 applications.
12 Highlighted Provisions:
13 This bill:
14 ▸ defines terms;
15 ▸ requires a rental network company to register with the Division of Consumer
16 Protection;
17 ▸ exempts a rental network company from certain requirements;
18 ▸ provides operational requirements for a rental network company;
19 ▸ provides insurance requirements for a rental network company;
20 ▸ establishes fees for noncompliance of a rental network company;
21 ▸ establishes a presumption that a building contractor is an independent contractor;
22 and
23 ▸ makes technical and conforming changes.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 This bill provides a coordination clause.
28 Utah Code Sections Affected:
29 AMENDS:
30 13-48-102, as enacted by Laws of Utah 2011, Chapter 357
31 31A-21-303, as last amended by Laws of Utah 2015, Chapter 385
32 31A-21-311, as last amended by Laws of Utah 2003, Chapter 252
33 31A-22-311, as last amended by Laws of Utah 1994, Chapter 316
34 41-1a-214, as last amended by Laws of Utah 2016, Chapter 356
35 41-12a-303.2, as last amended by Laws of Utah 2017, Chapter 416
36 ENACTS:
37 13-52-101, Utah Code Annotated 1953
38 13-52-102, Utah Code Annotated 1953
39 13-52-103, Utah Code Annotated 1953
40 13-52-201, Utah Code Annotated 1953
41 13-52-202, Utah Code Annotated 1953
42 13-52-301, Utah Code Annotated 1953
43 13-52-302, Utah Code Annotated 1953
44 13-52-303, Utah Code Annotated 1953
45 13-52-304, Utah Code Annotated 1953
46 13-52-305, Utah Code Annotated 1953
47 13-52-306, Utah Code Annotated 1953
48 13-52-307, Utah Code Annotated 1953
49 13-52-401, Utah Code Annotated 1953
50 13-52-402, Utah Code Annotated 1953
51 13-52-501, Utah Code Annotated 1953
52 13-52-502, Utah Code Annotated 1953
53 31A-22-323, Utah Code Annotated 1953
54 31A-22-324, Utah Code Annotated 1953
55 31A-22-325, Utah Code Annotated 1953
56 34-53-101, Utah Code Annotated 1953
57 34-53-102, Utah Code Annotated 1953
58 34-53-201, Utah Code Annotated 1953
59 Utah Code Sections Affected by Coordination Clause:
60 34-53-101, Utah Code Annotated 1953
61 34-53-102, Utah Code Annotated 1953
62 34-53-201, Utah Code Annotated 1953
63
64 Be it enacted by the Legislature of the state of Utah:
65 Section 1. Section 13-48-102 is amended to read:
66 13-48-102. Definitions.
67 As used in this chapter:
68 (1) "Motor vehicle license cost recovery fee" means a fee or charge that may be
69 separately stated and charged on the short-term motor vehicle lease or rental contract in a
70 motor vehicle lease or rental transaction originating in this state to recover the costs incurred by
71 a motor vehicle rental company to license, title, register, obtain license plates for, and inspect
72 rental motor vehicles.
73 (2) (a) "Motor vehicle rental company" means any person or organization in the
74 business of renting motor vehicles to the public.
75 (b) "Motor vehicle rental company" does not include a rental network company, as
76 defined in Section 13-52-102.
77 Section 2. Section 13-52-101 is enacted to read:
78
79
80 13-52-101. Title.
81 This chapter is known as "Rental Network Company Registration Act."
82 Section 3. Section 13-52-102 is enacted to read:
83 13-52-102. Definitions.
84 As used in this chapter:
85 (1) (a) "Authorized driver" means the renter of a private motor vehicle.
86 (b) "Authorized driver" includes:
87 (i) the renter's spouse, if the spouse is a licensed driver satisfying the rental network
88 company's minimum age requirement;
89 (ii) the renter's employer or coworker, if engaged in business activity with the renter
90 and if licensed drivers satisfying the rental network company's minimum age requirement;
91 (iii) a person who operates the vehicle during an emergency situation;
92 (iv) a person who operates the vehicle while parking the vehicle at a commercial
93 establishment; or
94 (v) a person expressly listed by the rental network company on the rental agreement as
95 an authorized driver.
96 (2) "Blanket insurance policy" means the same as that term is defined in Section
97 31A-1-301.
98 (3) "Division" means the Division of Consumer Protection within the Department of
99 Commerce.
100 (4) (a) "Motor vehicle" means a self-propelled vehicle that:
101 (i) is designed for use upon a highway;
102 (ii) has a gross weight rating of 10,000 pounds or less;
103 (iii) is not used for the commercial delivery of goods or materials; and
104 (iv) is not used for the commercial transportation of goods or materials.
105 (b) "Motor vehicle" does not include:
106 (i) an off-highway vehicle as defined in Section 41-22-2;
107 (ii) a traction engine;
108 (iii) a road roller;
109 (iv) a farm tractor;
110 (v) a tractor crane;
111 (vi) a power shovel;
112 (vii) a well driller; or
113 (viii) a vehicle:
114 (A) propelled by electric power obtained from overhead wires; and
115 (B) not operated upon rails.
116 (5) (a) "Private motor vehicle" means a motor vehicle that:
117 (i) is currently registered;
118 (ii) an individual owns; and
119 (iii) if the motor vehicle is required to be insured under Title 41, Chapter 12a, Financial
120 Responsibility of Motor Vehicle Owners and Operators Act, an individual insures under a
121 personal motor vehicle liability insurance policy insuring:
122 (A) the individual; or
123 (B) the individual and individuals residing in the same household as the individual.
124 (b) "Private motor vehicle" does not include a motor vehicle with fewer than four
125 wheels.
126 (6) "Private vehicle rental" means the use of a private motor vehicle:
127 (a) by a person other than the private motor vehicle's owner; and
128 (b) through a software application.
129 (7) "Rental agreement" means any written agreement stating the terms and conditions
130 governing the use of a private motor vehicle provided by a rental network company through a
131 software application.
132 (8) "Rental network company" means an entity that:
133 (a) uses a software application to connect a renter to a private motor vehicle; and
134 (b) does not own or lease a private motor vehicle used in a private vehicle rental.
135 (9) "Rental period" means the period of time:
136 (a) beginning when an authorized driver takes possession and control of a private
137 motor vehicle that the renter rents through a software application; and
138 (b) ending when:
139 (i) (A) the rental vehicle owner or rental vehicle owner's designee retrieves the private
140 motor vehicle;
141 (B) the renter returns the private motor vehicle to a location upon which the rental
142 vehicle owner and the renter agree; or
143 (C) the renter returns the private motor vehicle to a location the rental network
144 company designates; and
145 (ii) (A) the time period established in the rental agreement expires;
146 (B) the renter verifiably communicates to the rental network company or rental vehicle
147 owner that the renter considers the rental period terminated; or
148 (C) the rental vehicle owner or the rental network company takes possession and
149 control of the private motor vehicle.
150 (10) "Rental vehicle owner" means an individual who:
151 (a) owns and registers a private motor vehicle that the individual makes available for
152 rent through a rental network company's software application; and
153 (b) receives compensation in exchange for renting the individual's private motor
154 vehicle.
155 (11) "Renter" means a person who rents a rental vehicle owner's private motor vehicle:
156 (a) through a software application; and
157 (b) for the purpose of allowing an authorized driver to possess and control the private
158 motor vehicle during the rental period.
159 (12) "Software application" means an Internet-connected software platform, including
160 a mobile application, that a rental network company uses to:
161 (a) connect a rental vehicle owner to a renter; and
162 (b) process a renter's request to rent a rental vehicle owner's private motor vehicle.
163 Section 4. Section 13-52-103 is enacted to read:
164 13-52-103. Scope.
165 A rental network company or a rental vehicle owner is not subject to:
166 (1) Title 13, Chapter 48, Motor Vehicle Rental Company Disclosure Act; or
167 (2) the provisions of Section 31A-22-312 or 31A-22-314.
168 Section 5. Section 13-52-201 is enacted to read:
169
170 13-52-201. Registration of a rental network company.
171 (1) A person may not operate as a rental network company in this state, unless the
172 person registers with the division in accordance with Subsection (2).
173 (2) The division shall register a person to operate as a rental network company if the
174 person:
175 (a) demonstrates to the division that the person meets the definition of a rental network
176 company under Section 13-52-102; and
177 (b) pays a registration fee in an amount determined by the division in accordance with
178 Section 63J-1-504.
179 (3) A rental network company registration described in Subsection (2) is:
180 (a) valid for one year after the day on which the rental network company registers with
181 the division; and
182 (b) renewable if the division determines that the person complies with the requirements
183 for a rental network company described in this chapter.
184 Section 6. Section 13-52-202 is enacted to read:
185 13-52-202. Division audits of rental network companies.
186 The division may audit the records of a rental network company to ensure compliance
187 with the provisions of this chapter:
188 (1) no more than twice per year;
189 (2) at a location agreed to by the division and the rental network company; and
190 (3) notwithstanding Subsection (1), at any time to investigate a complaint.
191 Section 7. Section 13-52-301 is enacted to read:
192
193 13-52-301. Agent for service of process requirement.
194 A rental network company shall maintain an agent for service of process in the state and
195 notify the division of the name and address of the agent.
196 Section 8. Section 13-52-302 is enacted to read:
197 13-52-302. Facilitating a motor vehicle rental.
198 For each motor vehicle of which a rental network company facilitates a rental, the rental
199 network company shall:
200 (1) require that the vehicle is a private motor vehicle;
201 (2) provide the rental vehicle owner with suitable proof of compliance with the
202 insurance requirements of this chapter; and
203 (3) require that the motor vehicle comply with the minimum financial responsibility
204 requirements of the state in which the vehicle is registered.
205 Section 9. Section 13-52-303 is enacted to read:
206 13-52-303. Rental network company equipment -- Indemnification.
207 A rental network company shall:
208 (1) to the extent necessary for the motor vehicle to be used in a private vehicle rental,
209 facilitate the installation, operation, and maintenance of the rental network company's own
210 signage and computer hardware and software in the motor vehicle; and
211 (2) indemnify and hold harmless the rental vehicle owner for:
212 (a) the cost of damage to, or theft of, equipment the rental network company installs,
213 operates, and maintains under Subsection (1); and
214 (b) any damage the installation, operation, or maintenance of equipment described in
215 Subsection (1) causes to the motor vehicle.
216 Section 10. Section 13-52-304 is enacted to read:
217 13-52-304. Records.
218 A rental network company shall:
219 (1) collect, maintain, and make available, at the cost of the rental network company, to
220 any government agency as required by law:
221 (a) information regarding the rental vehicle owner's primary motor vehicle liability
222 insurer;
223 (b) information regarding the renter's primary motor vehicle, excess, or umbrella
224 insurer; and
225 (c) the following information pertaining to an incident that occurs during a rental
226 period:
227 (i) verifiable records of the rental period for the motor vehicle involved in the incident;
228 (ii) to the extent electronic equipment for monitoring the following information is
229 installed in the motor vehicle, verifiable electronic records of the time in relation to initial and
230 final locations of the motor vehicle; and
231 (iii) if an insurance claim is with a blanket insurer, information relevant to the claim,
232 including a rental network company payment related to an accident, any damage, or an injury;
233 and
234 (2) maintain a record of:
235 (i) each rental, for a minimum of five years after the day on which a rental period ends;
236 and
237 (ii) all information in the rental network company's possession regarding a rental
238 vehicle owner for a minimum of five years after the day on which the rental vehicle owner last
239 made a private motor vehicle available for private vehicle rental through the rental network
240 company.
241 Section 11. Section 13-52-305 is enacted to read:
242 13-52-305. Disclosure requirements.
243 (1) Before a private motor vehicle is made available for use through a software
244 application, the rental network company shall disclose to the owner of the private motor
245 vehicle:
246 (a) a description of the insurance coverage the rental network company provides under
247 Part 4, Insurance;
248 (b) that during a private vehicle rental, a rental vehicle owner's personal motor vehicle
249 liability insurer may exclude any and all coverage afforded to the personal motor vehicle
250 liability insurer's policy;
251 (c) that a rental vehicle owner's personal motor vehicle liability insurer has the right to
252 notify an insured that the personal motor vehicle liability insurer does not have a duty to defend
253 or indemnify a person for liability for loss that occurs during a private vehicle rental;
254 (d) that the rental network company's blanket policy may not provide coverage outside
255 of the private vehicle rental;
256 (e) that, if the private motor vehicle the rental vehicle owner makes available for
257 private vehicle rental has a lien against the private motor vehicle, the rental vehicle owner is
258 required to notify the lienholder that the rental network company is using the private motor
259 vehicle to provide private vehicle rentals; and
260 (f) that using a private motor vehicle against which there is a lien in a private vehicle
261 rental may violate the rental vehicle owner's contract with the lienholder.
262 (2) Before a renter's first operation of a private motor vehicle through a software
263 application, the rental network company using the software application shall disclose to the
264 renter the information described in Subsections (1)(b) through (d).
265 Section 12. Section 13-52-306 is enacted to read:
266 13-52-306. Transactional information provided to a renter.
267 (1) For each private vehicle rental transaction made through a software application, the
268 rental network company shall provide the rental agreement to the renter at the time of the
269 rental.
270 (2) Within 24 hours after the end of a rental period, the rental company that facilitated
271 the rental shall transmit an electronic receipt to the renter that lists:
272 (a) the dates and times indicating the beginning and end of the rental period;
273 (b) the total number of miles driven during the rental period; and
274 (c) an itemization of the total rental rate the renter paid, if any.
275 Section 13. Section 13-52-307 is enacted to read:
276 13-52-307. Collection of funds.
277 A rental network company may collect, on behalf of a rental vehicle owner, a rental rate
278 for a private vehicle rental if the rental network company:
279 (1) posts the method for calculating the rental rate on the rental network company's
280 software application;
281 (2) permits a rental vehicle owner to set the rental rate for the rental vehicle owner's
282 private motor vehicle; and
283 (3) allows a renter the option to obtain an estimated rental rate for a private vehicle
284 rental before the renter reserves a private vehicle rental.
285 Section 14. Section 13-52-401 is enacted to read:
286
287 13-52-401. Insurance requirements.
288 (1) A rental network company shall maintain a blanket insurance policy that, during a
289 rental period:
290 (a) covers, on a primary basis:
291 (i) an authorized driver; and
292 (ii) an occupant of the private motor vehicle; and
293 (b) includes:
294 (i) liability coverage for a minimum amount of $1,000,000 per occurrence;
295 (ii) personal injury protection to the extent required under Sections 31A-22-306
296 through 31A-22-309;
297 (iii) uninsured motorist coverage in accordance with Section 31A-22-305; and
298 (iv) underinsured motorist coverage in accordance with Section 31A-22-305.3.
299 (2) A rental network company shall maintain a blanket insurance policy that:
300 (a) covers, on a primary basis, the use of a private motor vehicle while in the custody
301 of the rental network company, including use by an agent, employee, director, officer, or assign
302 of the rental network company; and
303 (b) includes:
304 (i) liability coverage in a minimum amount, per occurrence, of:
305 (A) $50,000 to any one individual;
306 (B) $100,000 to all individuals; and
307 (C) $30,000 for property damage;
308 (ii) personal injury protection to the extent required under Sections 31A-22-306
309 through 31A-22-309;
310 (iii) uninsured motorist coverage in accordance with Section 31A-22-305; and
311 (iv) underinsured motorist coverage in accordance with Section 31A-22-305.3.
312 Section 15. Section 13-52-402 is enacted to read:
313 13-52-402. Coordination of insurance coverage -- Notification.
314 (1) A blanket insurance policy described in Subsection 13-52-401(1) is:
315 (a) primary with respect to any other insurance available to the rental vehicle owner;
316 and
317 (b) secondary with respect to any other insurance available to the renter, authorized
318 driver, or occupant of the private motor vehicle.
319 (2) A blanket insurance policy under Subsection 13-52-401(2) is primary with respect
320 to any other insurance available to the rental vehicle owner.
321 (3) A rental network company shall notify the rental vehicle owner's personal motor
322 vehicle liability insurer of a dispute described in Subsection 31A-22-325(3) within 10 business
323 days after the day on which the rental network company became aware of the dispute.
324 Section 16. Section 13-52-501 is enacted to read:
325
326 13-52-501. Violations.
327 The division may fine a rental network company up to $500 for each violation of this
328 chapter.
329 Section 17. Section 13-52-502 is enacted to read:
330 13-52-502. Non-preemption clause.
331 This chapter does not supersede a municipal, county, or local government regulation
332 regarding a rental network company, including a rental network company facilitating a private
333 vehicle rental at an airport.
334 Section 18. Section 31A-21-303 is amended to read:
335 31A-21-303. Cancellation, issuance, renewal.
336 (1) (a) Except as otherwise provided in this section, other statutes, or by rule under
337 Subsection (1)(c), this section applies to all policies of insurance:
338 (i) except for:
339 (A) life insurance;
340 (B) accident and health insurance; and
341 (C) annuities; and
342 (ii) if the policies of insurance are issued on forms that are subject to filing under
343 Subsection 31A-21-201(1).
344 (b) A policy may provide terms more favorable to insureds than this section requires.
345 (c) The commissioner may by rule totally or partially exempt from this section classes
346 of insurance policies in which the insureds do not need protection against arbitrary or
347 unannounced termination.
348 (d) The rights provided by this section are in addition to and do not prejudice any other
349 rights the insureds may have at common law or under other statutes.
350 (2) (a) As used in this Subsection (2), "grounds" means:
351 (i) material misrepresentation;
352 (ii) substantial change in the risk assumed, unless the insurer should reasonably have
353 foreseen the change or contemplated the risk when entering into the contract;
354 (iii) substantial breaches of contractual duties, conditions, or warranties;
355 (iv) attainment of the age specified as the terminal age for coverage, in which case the
356 insurer may cancel by notice under Subsection (2)(c), accompanied by a tender of proportional
357 return of premium; or
358 (v) in the case of motor vehicle insurance, revocation or suspension of the driver's
359 license of:
360 (A) the named insured; or
361 (B) any other person who customarily drives the motor vehicle.
362 (b) (i) Except as provided in Subsection (2)(e) or unless the conditions of Subsection
363 (2)(b)(ii) are met, an insurance policy may not be canceled by the insurer before the earlier of:
364 (A) the expiration of the agreed term; or
365 (B) one year from the effective date of the policy or renewal.
366 (ii) Notwithstanding Subsection (2)(b)(i), an insurance policy may be canceled by the
367 insurer for:
368 (A) nonpayment of a premium when due; or
369 (B) subject to Subsection (2)(f), on grounds defined in Subsection (2)(a).
370 (c) (i) The cancellation provided by Subsection (2)(b), except cancellation for
371 nonpayment of premium, is effective no sooner than 30 days after the delivery or first-class
372 mailing of a written notice to the policyholder.
373 (ii) Cancellation for nonpayment of premium is effective no sooner than 10 days after
374 delivery or first class mailing of a written notice to the policyholder.
375 (d) (i) Notice of cancellation for nonpayment of premium shall include a statement of
376 the reason for cancellation.
377 (ii) Subsection (7) applies to the notice required for grounds of cancellation other than
378 nonpayment of premium.
379 (e) (i) Subsections (2)(a) through (d) do not apply to any insurance contract that has not
380 been previously renewed if the contract has been in effect less than 60 days when the written
381 notice of cancellation is mailed or delivered.
382 (ii) A cancellation under this Subsection (2)(e) may not be effective until at least 10
383 days after the delivery to the insured of a written notice of cancellation.
384 (iii) If the notice required by this Subsection (2)(e) is sent by first-class mail, postage
385 prepaid, to the insured at the insured's last-known address, delivery is considered accomplished
386 after the passing, since the mailing date, of the mailing time specified in the Utah Rules of
387 Civil Procedure.
388 (iv) A policy cancellation subject to this Subsection (2)(e) is not subject to the
389 procedures described in Subsection (7).
390 (f) In the case of motor vehicle insurance, an insurance policy may not be canceled
391 solely based on the participation of a motor vehicle that is covered by the motor vehicle
392 insurance policy in a private vehicle rental, as defined in Section 13-52-102, unless:
393 (i) the motor vehicle owner, in combination with all individuals residing in the same
394 household as the motor vehicle owner, uses a software application, as defined in Section
395 13-52-102, or combination of software applications, to rent or make available for rent, more
396 than four motor vehicles at one time; or
397 (ii) (A) the motor vehicle is enrolled in a usage-based insurance program as defined in
398 Subsection (2)(g); and
399 (B) immediately after cancellation of the policy the insurer offers the insured a new
400 policy with the same coverages and pre-existing rates, but without enrollment in the
401 usage-based insurance program as defined in Subsection (2)(g).
402 (g) As used in Subsections (2)(f) and (5)(a)(iv), "usage-based insurance program"
403 means motor vehicle insurance under the terms of which the insurer is permitted to:
404 (i) electronically monitor acceleration, braking, miles driven, and other indicia of
405 driving behavior; and
406 (ii) determine costs based on the behavior observed under Subsection (2)(g)(i).
407 (3) A policy may be issued for a term longer than one year or for an indefinite term if
408 the policy includes a clause providing for cancellation by the insurer by giving notice as
409 provided in Subsection (4)(b)(i) 30 days prior to any anniversary date.
410 (4) (a) Subject to Subsections (2), (3), and (4)(b), a policyholder has a right to have the
411 policy renewed:
412 (i) on the terms then being applied by the insurer to similar risks; and
413 (ii) (A) for an additional period of time equivalent to the expiring term if the agreed
414 term is one year or less; or
415 (B) for one year if the agreed term is longer than one year.
416 (b) Except as provided in Subsections (4)(c) and (5), the right to renewal under
417 Subsection (4)(a) is extinguished if:
418 (i) at least 30 days before the policy expiration or anniversary date a notice of intention
419 not to renew the policy beyond the agreed expiration or anniversary date is delivered or sent by
420 first-class mail by the insurer to the policyholder at the policyholder's last-known address;
421 (ii) not more than 45 nor less than 14 days before the due date of the renewal premium,
422 the insurer delivers or sends by first-class mail a notice to the policyholder at the policyholder's
423 last-known address, clearly stating:
424 (A) the renewal premium;
425 (B) how the renewal premium may be paid, including the due date for payment of the
426 renewal premium;
427 (C) that failure to pay the renewal premium extinguishes the policyholder's right to
428 renewal; and
429 (D) subject to Subsection (4)(e), that the extinguishment of the right to renew for
430 nonpayment of premium is effective no sooner than at least 10 days after delivery or first class
431 mailing of a written notice to the policyholder that the policyholder has failed to pay the
432 premium when due;
433 (iii) the policyholder has:
434 (A) accepted replacement coverage; or
435 (B) requested or agreed to nonrenewal; or
436 (iv) the policy is expressly designated as nonrenewable.
437 (c) Unless the conditions of Subsection (4)(b)(iii) or (iv) apply, an insurer may not fail
438 to renew an insurance policy as a result of a telephone call or other inquiry that:
439 (i) references a policy coverage; and
440 (ii) does not result in the insured requesting payment of a claim.
441 (d) Failure to renew under this Subsection (4) is subject to Subsection (5).
442 (e) (i) During the period that begins when the notice described in Subsection
443 (4)(b)(ii)(D) is delivered or mailed and ends when the premium is paid, coverage exists and
444 premiums are due.
445 (ii) If after receiving the notice required by Subsection (4)(b)(ii)(D) a policyholder fails
446 to pay the renewal premium, the coverage is extinguished as of the date the renewal premium is
447 originally due.
448 (iii) Delivery of the notice required by Subsection (4)(b)(ii)(D) includes electronic
449 delivery in accordance with Section 31A-21-316.
450 (iv) An insurer is not subject to Subsection (4)(b)(ii)(D) if it provides notice of the
451 extinguishment of the right to renew for failure to pay premium at least 15 days, but no longer
452 than 45 days, before the day the renewal payment is due.
453 (v) Subsection (4)(b)(ii)(D) does not apply to a policy that provides coverage for 30
454 days or less.
455 (5) Notwithstanding Subsection (4), an insurer may not fail to renew the following
456 personal lines insurance policies solely on the basis of:
457 (a) in the case of a motor vehicle insurance policy:
458 (i) a claim from the insured that:
459 (A) results from an accident in which:
460 (I) the insured is not at fault; and
461 (II) the driver of the motor vehicle that is covered by the motor vehicle insurance
462 policy is 21 years of age or older; and
463 (B) is the only claim meeting the condition of Subsection (5)(a)(i)(A) within a
464 36-month period;
465 (ii) a single traffic violation by an insured that:
466 (A) is a violation of a speed limit under Title 41, Chapter 6a, Traffic Code;
467 (B) is not in excess of 10 miles per hour over the speed limit;
468 (C) is not a traffic violation under:
469 (I) Section 41-6a-601;
470 (II) Section 41-6a-604; or
471 (III) Section 41-6a-605;
472 (D) is not a violation by an insured driver who is younger than 21 years of age; and
473 (E) is the only violation meeting the conditions of Subsections (5)(a)(ii)(A) through
474 (D) within a 36-month period; [
475 (iii) a claim for damage that:
476 (A) results solely from:
477 (I) wind;
478 (II) hail;
479 (III) lightning; or
480 (IV) an earthquake;
481 (B) is not preventable by the exercise of reasonable care; and
482 (C) is the only claim meeting the conditions of Subsections (5)(a)(iii)(A) and (B)
483 within a 36-month period; [
484 (iv) the owner of the motor vehicle covered by a motor vehicle insurance policy using
485 the motor vehicle in a private vehicle rental, as defined in Section 13-52-102, unless:
486 (A) the vehicle is enrolled in a usage-based insurance program, as defined in
487 Subsection (2)(g); and
488 (B) immediately after cancellation of the policy the insurer offers the insured a new
489 policy with the same coverages and pre-existing rates, but without enrollment in the
490 usage-based insurance program; and
491 (b) in the case of a homeowner's insurance policy, a claim by the insured that is for
492 damage that:
493 (i) results solely from:
494 (A) wind;
495 (B) hail; or
496 (C) lightning;
497 (ii) is not preventable by the exercise of reasonable care; and
498 (iii) is the only claim meeting the conditions of Subsections (5)(b)(i) and (ii) within a
499 36-month period.
500 (6) (a) (i) Subject to Subsection (6)(b), if the insurer offers or purports to renew the
501 policy, but on less favorable terms or at higher rates, the new terms or rates take effect on the
502 renewal date if the insurer delivered or sent by first-class mail to the policyholder notice of the
503 new terms or rates at least 30 days prior to the expiration date of the prior policy.
504 (ii) If the insurer did not give the prior notification described in Subsection (6)(a)(i) to
505 the policyholder, the new terms or rates do not take effect until 30 days after the notice is
506 delivered or sent by first-class mail, in which case the policyholder may elect to cancel the
507 renewal policy at any time during the 30-day period.
508 (iii) Return premiums or additional premium charges shall be calculated
509 proportionately on the basis that the old rates apply.
510 (b) Subsection (6)(a) does not apply if the only change in terms that is adverse to the
511 policyholder is:
512 (i) a rate increase generally applicable to the class of business to which the policy
513 belongs;
514 (ii) a rate increase resulting from a classification change based on the altered nature or
515 extent of the risk insured against; or
516 (iii) a policy form change made to make the form consistent with Utah law.
517 (7) (a) If a notice of cancellation or nonrenewal under Subsection (2)(c) does not state
518 with reasonable precision the facts on which the insurer's decision is based, the insurer shall
519 send by first-class mail or deliver that information within 10 working days after receipt of a
520 written request by the policyholder.
521 (b) A notice under Subsection (2)(c) is not effective unless it contains information
522 about the policyholder's right to make the request.
523 (8) (a) An insurer that gives a notice of nonrenewal or cancellation of insurance on a
524 motor vehicle insurance policy issued in accordance with the requirements of Chapter 22, Part
525 3, Motor Vehicle Insurance, for nonpayment of a premium shall provide notice of nonrenewal
526 or cancellation to a lienholder if the insurer has been provided the name and mailing address of
527 the lienholder.
528 (b) The notice described in Subsection (8)(a) shall be provided to the lienholder by first
529 class mail or, if agreed by the parties, any electronic means of communication.
530 (c) A lienholder shall provide a current physical address of notification or an electronic
531 address of notification to an insurer that is required to make a notification under Subsection
532 (8)(a).
533 (9) If a risk-sharing plan under Section 31A-2-214 exists for the kind of coverage
534 provided by the insurance being cancelled or nonrenewed, a notice of cancellation or
535 nonrenewal required under Subsection (2)(c) or (4)(b)(i) may not be effective unless it contains
536 instructions to the policyholder for applying for insurance through the available risk-sharing
537 plan.
538 (10) There is no liability on the part of, and no cause of action against, any insurer, its
539 authorized representatives, agents, employees, or any other person furnishing to the insurer
540 information relating to the reasons for cancellation or nonrenewal or for any statement made or
541 information given by them in complying or enabling the insurer to comply with this section
542 unless actual malice is proved by clear and convincing evidence.
543 (11) This section does not alter any common law right of contract rescission for
544 material misrepresentation.
545 (12) If a person is required to pay a premium in accordance with this section:
546 (a) the person may make the payment using:
547 (i) the United States Postal Service;
548 (ii) a delivery service the commissioner describes or designates by rule made in
549 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; or
550 (iii) electronic means; and
551 (b) the payment is considered to be made:
552 (i) for a payment that is mailed using the method described in Subsection (12)(a)(i), on
553 the date the payment is postmarked;
554 (ii) for a payment that is delivered using the method described in Subsection (12)(a)(ii),
555 on the date the delivery service records or marks the payment as having been received by the
556 delivery service; or
557 (iii) for a payment that is made using the method described in Subsection (12)(a)(iii),
558 on the date the payment is made electronically.
559 Section 19. Section 31A-21-311 is amended to read:
560 31A-21-311. Group and blanket insurance.
561 (1) (a) (i) Except under Subsection (1)(d), an insurer issuing a group insurance policy
562 other than a blanket insurance policy shall, as soon as practicable after the coverage is
563 effective, provide a certificate for each member of the insured group, except that only one
564 certificate need be provided for the members of a family unit.
565 (ii) The certificate required by this Subsection (1) shall:
566 (A) provide the exact name of the insurer;
567 (B) state the state of domicile of the insurer; and
568 (C) contain a summary of the essential features of the insurance coverage, including:
569 (I) any rights of conversion to an individual policy;
570 (II) in the case of group life insurance, any continuation of coverage during total
571 disability; and
572 (III) in the case of group life insurance, the incontestability provision.
573 (iii) Upon receiving a written request, the insurer shall inform any insured how the
574 insured may inspect, during normal business hours at a place reasonably convenient to the
575 insured:
576 (A) a copy of the policy; or
577 (B) a summary of the policy containing all the details that are relevant to the certificate
578 holder.
579 (b) The commissioner may by rule impose a requirement similar to Subsection (1)(a)
580 on any class of blanket insurance policies for which the commissioner finds that the group of
581 persons covered is constant enough for that type of action to be practicable and not
582 unreasonably expensive.
583 (c) (i) A certificate shall be provided in a manner reasonably calculated to bring the
584 certificate to the attention of the certificate holder.
585 (ii) The insurer may deliver or mail a certificate:
586 (A) directly to the certificate holders; or
587 (B) in bulk to the policyholder to transmit to certificate holders.
588 (iii) An affidavit by the insurer that the insurer mailed the certificates in the usual
589 course of business creates a rebuttable presumption that the insurer has mailed the certificate
590 to:
591 (A) a certificate holder; or
592 (B) a policyholder as provided in Subsection (1)(c)(ii)(B).
593 (d) The commissioner may by rule or order prescribe substitutes for delivery or mailing
594 of certificates that are reasonably calculated to inform a certificate holder of the certificate
595 holder's rights, including:
596 (i) booklets describing the coverage;
597 (ii) the posting of notices in the place of business; or
598 (iii) publication in a house organ.
599 (2) Unless a certificate or an authorized substitute has been made available to the
600 certificate holder when required by this section, an act or omission forbidden to or required of
601 the certificate holder by the certificate after the coverage has become effective as to the
602 certificate holder, other than intentionally causing the loss insured against or failing to make
603 required contributory premium payments, may not affect the insurer's obligations under the
604 insurance contract.
605 (3) (a) As used in this Subsection (3):
606 (i) "Authorized driver" means the same as that term is defined in Section 13-52-102.
607 (ii) "Private motor vehicle" means the same as that term is defined in Section
608 13-52-102.
609 (iii) "Rental network company" means the same as that term is defined in Section
610 13-52-102.
611 (iv) "Rental period" means the same as that term is defined in Section 13-52-102.
612 (b) (i) A blanket insurance policy that a rental network company maintains in
613 accordance with Subsection 13-52-401(1) shall:
614 (A) identify the rental network company as the named insured;
615 (B) include a provision that provides coverage, without prior notice to the insurer, for
616 all private motor vehicles during the rental period;
617 (C) include a provision that claims will be adjusted in accordance with Section
618 31A-26-303; and
619 (D) include a provision that the vehicles' authorized drivers and occupants are included
620 as insureds under the policy to the same extent that the authorized drivers and occupants would
621 be insureds under a private passenger motor vehicle policy.
622 (ii) A blanket insurance policy that a rental network company maintains in accordance
623 with Subsection 13-52-401(2) shall:
624 (A) identify the rental network company as the named insured;
625 (B) include a provision that provides primary coverage, without prior notice to the
626 insurer, for all private motor vehicles in the custody of the rental network company; and
627 (C) include a provision that claims will be adjusted pursuant to Section 31A-26-303.
628 Section 20. Section 31A-22-311 is amended to read:
629 31A-22-311. Definitions.
630 As used in Sections 31A-22-312 and 31A-22-314:
631 (1) "Authorized driver" means the person to whom the vehicle is rented and includes:
632 (a) his spouse if a licensed driver satisfying the rental company's minimum age
633 requirement;
634 (b) his employer or coworker if engaged in business activity with the renter and if they
635 are licensed drivers satisfying the rental company's minimum age requirement;
636 (c) any person who operates the vehicle during an emergency situation;
637 (d) any person who operates the vehicle while parking the vehicle at a commercial
638 establishment; or
639 (e) any person expressly listed by the rental company on the rental agreement as an
640 authorized driver.
641 (2) "Damage" means any damage or loss to the rented vehicle resulting from a
642 collision, including loss of use and any costs and expenses incident to the damage or loss.
643 (3) "Rental agreement" means any written agreement stating the terms and conditions
644 governing the use of a private passenger motor vehicle provided by a rental company.
645 (4) (a) "Rental company" means any person or organization in the business of
646 providing private passenger motor vehicles to the public.
647 (b) "Rental company" does not include a rental network company, as defined in Section
648 13-52-102.
649 (5) "Renter" means any person or organization obtaining the use of a private passenger
650 motor vehicle from a rental company under the terms of a rental agreement.
651 Section 21. Section 31A-22-323 is enacted to read:
652 31A-22-323. Definitions.
653 As used in Sections 31A-22-234 and 31A-22-235:
654 (1) "Commercial vehicle" means the same as that term is defined in Section 41-1a-102.
655 (2) "Private motor vehicle" means the same as that term is defined in Section
656 13-52-102.
657 (3) "Private vehicle rental" means the same as that term is defined in Section
658 13-52-102.
659 (4) "Rental network company" means the same as that term is defined in Section
660 13-52-102.
661 (5) "Rental period" means the same as that term is defined in Section 13-52-102.
662 (6) "Rental vehicle owner" means the same as that term is defined in Section
663 13-52-102.
664 (7) "Renter" means the same as that term is defined in Section 13-52-102.
665 (8) "Software application" means the same as that term is defined in Section
666 13-52-102.
667 Section 22. Section 31A-22-324 is enacted to read:
668 31A-22-324. Participation in a private vehicle rental.
669 (1) An insurer that issues a motor vehicle related insurance policy may:
670 (a) refuse coverage to a rental vehicle owner, if the rental vehicle owner, in
671 combination with all individuals residing in the same household as the rental vehicle owner,
672 uses a software application, or combination of software applications, to rent, or make available
673 for rent, more than four motor vehicles at one time; or
674 (b) during a private vehicle rental, exclude any and all coverage that may otherwise be
675 afforded to the rental vehicle owner under the personal motor vehicle liability insurer's policy.
676 (2) A motor vehicle required to be insured under Section 41-12a-301 is not a
677 commercial vehicle solely because the motor vehicle's owner makes the motor vehicle
678 available for rent through a software application, unless:
679 (a) the private vehicle rental fails to comply with the requirements of a private vehicle
680 rental as described in Title 13, Chapter 52, Rental Network Company Registration Act;
681 (b) the rental vehicle owner or the rental network company knowingly allows a renter
682 to use the private motor vehicle as a commercial vehicle during the private vehicle rental; or
683 (c) the rental vehicle owner, in combination with all individuals residing in the same
684 household as the rental vehicle owner, uses a software application, or combination of software
685 applications, to rent, or make available for rent, more than four motor vehicles at one time.
686 Section 23. Section 31A-22-325 is enacted to read:
687 31A-22-325. Private vehicle rental liability.
688 (1) Notwithstanding any other provision of law or any provision in a rental vehicle
689 owner's personal motor vehicle liability insurance policy, in the event of a loss or injury that
690 occurs during the rental period or while the private motor vehicle is under the control of a
691 rental network company, the rental network company is the owner of the vehicle under any
692 statute that may impose liability upon an owner of a private passenger motor vehicle solely
693 based on ownership.
694 (2) A rental network company shall retain liability described in Subsection (1)
695 regardless of any inadvertent lapse in the blanket policy under which the rental network
696 company is insured.
697 (3) An insurer providing blanket liability insurance to a rental network company in
698 accordance with Section 13-52-401 is liable for a claim in which a dispute exists regarding the
699 person that was in control of the vehicle when the loss occurred giving rise to the claim.
700 (4) If it is determined that a rental vehicle's owner was in control of the private motor
701 vehicle at the time of a loss giving rise to a claim, the rental vehicle owner's personal motor
702 vehicle liability insurer shall indemnify the rental network company's blanket insurer, to the
703 extent of the personal motor vehicle liability insurer's obligation under the applicable insurance
704 policy.
705 (5) Subject to the provisions of Subsections (3) and (4), if a rental vehicle owner or the
706 rental vehicle owner's personal motor vehicle insurer is named as the defendant in a civil action
707 for a loss or injury that occurs:
708 (a) during the rental period, the rental network company's blanket liability insurance
709 insurer under Subsection 13-52-401(1) has the duty to defend and indemnify the rental vehicle
710 owner and rental vehicle owner's personal motor vehicle liability insurer; or
711 (b) while the private motor vehicle is under the control of a rental network company,
712 the rental network company's blanket liability insurance insurer under Subsection 13-52-401(2)
713 has the duty to defend and indemnify the rental vehicle owner and rental vehicle owner's
714 personal motor vehicle liability insurer.
715 Section 24. Section 34-53-101 is enacted to read:
716
717
718 34-53-101. Title.
719 This chapter is known as "Building Service Network Company Act."
720 Section 25. Section 34-53-102 is enacted to read:
721 34-53-102. Definitions.
722 As used in this chapter:
723 (1) (a) "Building service" means a maintenance, repair, or installation service, in or
724 around a building or residence, that costs $3,000 or less.
725 (b) "Building service" includes:
726 (i) cleaning or janitorial services;
727 (ii) furniture assembly, installation, moving, or delivery services;
728 (iii) landscaping;
729 (iv) home repair services; and
730 (v) services similar to the services described in Subsections (1)(b)(i) through (iv).
731 (2) "Building service contractor" means a person who enters into an agreement with a
732 building service network company to use the building service network company's software
733 platform to connect with and receive requests from persons seeking a building service.
734 (3) "Building service network company" means an entity that:
735 (a) uses an Internet-connected software platform, including a mobile application, to
736 connect a building service contractor to a person seeking a building service; and
737 (b) charges a building service contractor or person seeking building services a fee to
738 use the software platform described in Subsection (3)(a).
739 Section 26. Section 34-53-201 is enacted to read:
740
741 34-53-201. Independent contractor presumption.
742 (1) A building service contractor may affiliate with a building service network
743 company as an independent contractor or as an employee.
744 (2) (a) There is a presumption that a building service contractor who affiliates with a
745 building service network company is an independent contractor, unless there is clear and
746 convincing evidence that the parties intended the building service contractor to be an employee.
747 (b) The presumption described in Subsection (2)(a) extends to each act the building
748 service contractor performs in connection with a request for a building service placed through
749 the building service network company's software platform.
750 Section 27. Section 41-1a-214 is amended to read:
751 41-1a-214. Registration card to be signed, carried, and exhibited.
752 (1) A registration card shall be signed by the owner in ink in the space provided.
753 (2) A registration card shall be carried at all times in the vehicle to which it was issued.
754 (3) The person driving or in control of a vehicle shall display the registration card upon
755 demand of a peace officer or any officer or employee of the division.
756 (4) For a vehicle owned by a rental company, as defined in Section 31A-22-311, a
757 person driving or in control of the vehicle may display the vehicle's rental agreement, as
758 defined in Section 31A-22-311, in place of a registration card for compliance with Subsection
759 (3).
760 (5) For a vehicle being used in connection with a private vehicle rental, as defined in
761 Section 13-52-102, a person driving or in control of the vehicle may display the vehicle's rental
762 agreement, as defined in Section 13-52-102, in place of a registration card for compliance with
763 Subsection (3).
764 [
765 Section 28. Section 41-12a-303.2 is amended to read:
766 41-12a-303.2. Evidence of owner's or operator's security to be carried when
767 operating motor vehicle -- Defense -- Penalties.
768 (1) As used in this section:
769 (a) "Division" means the Motor Vehicle Division of the State Tax Commission.
770 (b) "Registration materials" means the evidences of motor vehicle registration,
771 including all registration cards, license plates, temporary permits, and nonresident temporary
772 permits.
773 (2) (a) (i) A person operating a motor vehicle shall:
774 (A) have in the person's immediate possession evidence of owner's or operator's
775 security for the motor vehicle the person is operating; and
776 (B) display it upon demand of a peace officer.
777 (ii) A person is exempt from the requirements of Subsection (2)(a)(i) if the person is
778 operating:
779 (A) a government-owned or leased motor vehicle; or
780 (B) an employer-owned or leased motor vehicle and is driving it with the employer's
781 permission.
782 (iii) A person operating a vehicle that is owned by a rental company, as defined in
783 Section 31A-22-311, may comply with Subsection (2)(a)(i) by having in the person's
784 immediate possession, or displaying, the rental vehicle's rental agreement, as defined in Section
785 31A-22-311.
786 (iv) A person operating a vehicle in connection with a private vehicle rental, as defined
787 in Section 13-52-102, may comply with Subsection (2)(a)(i) by having in the person's
788 immediate possession, or displaying, the rental vehicle's rental agreement, as defined in Section
789 13-52-102.
790 (b) Evidence of owner's or operator's security includes any one of the following:
791 (i) a copy of the operator's valid:
792 (A) insurance policy;
793 (B) insurance policy declaration page;
794 (C) binder notice;
795 (D) renewal notice; or
796 (E) card issued by an insurance company as evidence of insurance;
797 (ii) a certificate of insurance issued under Section 41-12a-402;
798 (iii) a certified copy of a surety bond issued under Section 41-12a-405;
799 (iv) a certificate of the state treasurer issued under Section 41-12a-406;
800 (v) a certificate of self-funded coverage issued under Section 41-12a-407; or
801 (vi) information that the vehicle or driver is insured from the Uninsured Motorist
802 Identification Database Program created under Title 41, Chapter 12a, Part 8, Uninsured
803 Motorist Identification Database Program.
804 (c) A card issued by an insurance company as evidence of owner's or operator's
805 security under Subsection (2)(b)(i)(E) on or after July 1, 2014, may not display the owner's or
806 operator's address on the card.
807 (d) (i) A person may provide to a peace officer evidence of owner's or operator's
808 security described in this Subsection (2) in:
809 (A) a hard copy format; or
810 (B) an electronic format using a mobile electronic device.
811 (ii) If a person provides evidence of owner's or operator's security in an electronic
812 format using a mobile electronic device under this Subsection (2)(d), the peace officer viewing
813 the owner's or operator's security on the mobile electronic device may not view any other
814 content on the mobile electronic device.
815 (iii) Notwithstanding any other provision under this section, a peace officer is not
816 subject to civil liability or criminal penalties under this section if the peace officer inadvertently
817 views content other than the evidence of owner's or operator's security on the mobile electronic
818 device.
819 (e) (i) Evidence of owner's or operator's security from the Uninsured Motorist
820 Identification Database Program described under Subsection (2)(b)(vi) supercedes any
821 evidence of owner's or operator's security described under Subsection (2)(b)(i)(D) or (E).
822 (ii) A peace officer may not cite or arrest a person for a violation of Subsection (2)(a) if
823 the Uninsured Motorist Identification Database Program created under Title 41, Chapter 12a,
824 Part 8, Uninsured Motorist Identification Database Program, information indicates that the
825 vehicle or driver is insured.
826 (3) It is an affirmative defense to a charge or in an administrative action under this
827 section that the person had owner's or operator's security in effect for the vehicle the person
828 was operating at the time of the person's citation or arrest.
829 (4) (a) The following are considered proof of owner's or operator's security for
830 purposes of Subsection (3) and Section 41-12a-804:
831 (i) evidence defined in Subsection (2)(b);
832 (ii) a written statement from an insurance producer or company verifying that the
833 person had the required motor vehicle insurance coverage on the date specified; or
834 (iii) a written statement from an insurance producer or company, or provision in an
835 insurance policy, indicating that the policy provides coverage for a newly purchased car and the
836 coverage extended to the date specified.
837 (b) The court considering a citation issued under this section shall allow the evidence
838 or a written statement under Subsection (4)(a) and a copy of the citation to be faxed or mailed
839 to the clerk of the court to satisfy Subsection (3).
840 (c) The notice under Section 41-12a-804 shall specify that the written statement under
841 Subsection (4)(a) and a copy of the notice shall be faxed or mailed to the designated agent to
842 satisfy the proof of owner's or operator's security required under Section 41-12a-804.
843 (5) A violation of this section is an infraction, and the fine shall be not less than:
844 (a) $400 for a first offense; and
845 (b) $1,000 for a second and subsequent offense within three years of a previous
846 conviction or bail forfeiture.
847 (6) Upon receiving notification from a court of a conviction for a violation of this
848 section, the department:
849 (a) shall suspend the person's driver license; and
850 (b) may not renew the person's driver license or issue a driver license to the person
851 until the person gives the department proof of owner's or operator's security.
852 (i) This proof of owner's or operator's security shall be given by any of the ways
853 required under Section 41-12a-401.
854 (ii) This proof of owner's or operator's security shall be maintained with the department
855 for a three-year period.
856 (iii) An insurer that provides a certificate of insurance as provided under Section
857 41-12a-402 or 41-12a-403 may not terminate the insurance policy unless notice of termination
858 is filed with the department no later than 10 days after termination as required under Section
859 41-12a-404.
860 (iv) If a person who has canceled the certificate of insurance applies for a license
861 within three years from the date proof of owner's or operator's security was originally required,
862 the department shall refuse the application unless the person reestablishes proof of owner's or
863 operator's security and maintains the proof for the remainder of the three-year period.
864 Section 29. Coordinating H.B. 429 with H.B. 364 -- Substantive and technical
865 amendments.
866 If this H.B. 429 and H.B. 364, Employment Law Amendments, both pass and become
867 law, it is the intent of the Legislature that Sections 34-53-101, 34-53-102, and 34-53-201 in this
868 bill supersede Sections 34-53-101, 34-53-102, and 34-53-201 in H.B. 364 when the Office of
869 Legislative Research and General Counsel prepares the Utah Code database for publication.
Legislative Review Note
Office of Legislative Research and General Counsel