Representative Robert M. Spendlove proposes the following substitute bill:




Chief Sponsor: Robert M. Spendlove

Senate Sponsor: Curtis S. Bramble


8     General Description:
9          This bill modifies provisions relating to motor vehicles shared through a car-sharing
10     business platform.
11     Highlighted Provisions:
12          This bill:
13          ▸     enacts provisions relating to business platforms that connect motor vehicle owners
14     with drivers to enable the sharing of motor vehicles for consideration;
15          ▸     enacts consumer protection provisions relating to a car-sharing program, including
16     required disclosures on a car-sharing agreement, driver requirements, and records of
17     a car-sharing program; and
18          ▸     enacts provisions relating to liability and insurance for claims arising during the
19     period a shared vehicle is used under a car-sharing program.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     ENACTS:

26          13-48a-101, Utah Code Annotated 1953
27          13-48a-102, Utah Code Annotated 1953
28          13-48a-201, Utah Code Annotated 1953
29          13-48a-202, Utah Code Annotated 1953
30          13-48a-203, Utah Code Annotated 1953
31          13-48a-204, Utah Code Annotated 1953
32          13-48a-205, Utah Code Annotated 1953
33          13-48a-301, Utah Code Annotated 1953
34          13-48a-302, Utah Code Annotated 1953
35          13-48a-303, Utah Code Annotated 1953
36          13-48a-304, Utah Code Annotated 1953
37          13-48a-305, Utah Code Annotated 1953
38          13-48a-306, Utah Code Annotated 1953
39          13-48a-307, Utah Code Annotated 1953

41     Be it enacted by the Legislature of the state of Utah:
42          Section 1. Section 13-48a-101 is enacted to read:

Part 1. General Provisions

45          13-48a-101. Definitions.
46          As used in this chapter:
47          (1) (a) "Car-sharing agreement" means an agreement:
48          (i) applicable to a shared vehicle owner and a shared vehicle driver; and
49          (ii) that governs a shared vehicle driver's use of a shared vehicle through a car-sharing
50     program.
51          (b) "Car-sharing agreement" does not mean:
52          (i) a short-term lease or rental of a vehicle as used in Section 59-12-1201; or
53          (ii) a rental agreement, as defined in Section 31A-22-311.
54          (2) "Car-sharing delivery period" means the period of time during which a shared
55     vehicle is being delivered to the location of the car-sharing start time, if applicable, as
56     documented by the governing car-sharing agreement.

57          (3) "Car-sharing period" means the period of time that:
58          (a) (i) begins at the car-sharing delivery period; or
59          (ii) if there is no car-sharing delivery period, begins at the car-sharing start time; and
60          (b) ends at the car-sharing termination time.
61          (4) (a) "Car-sharing program" means a business platform that connects motor vehicle
62     owners with drivers to enable the sharing of motor vehicles for consideration.
63          (b) "Car-sharing program" does not mean:
64          (i) a motor vehicle rental company, as defined in Section 13-48-102; or
65          (ii) a rental company, as defined in Section 31A-22-311.
66          (5) (a) "Car sharing" means the authorized use of a motor vehicle:
67          (i) by an individual other than the owner of the motor vehicle; and
68          (ii) through a car-sharing program.
69          (b) "Car sharing" does not mean the business of providing private passenger motor
70     vehicles to the public as used in Section 31A-22-311.
71          (6) "Car-sharing start time" means the time when a shared vehicle becomes subject to
72     the control of the shared vehicle driver at or after the time the reservation of the shared vehicle
73     is scheduled to begin, as documented in the records of the car-sharing program.
74          (7) "Car-sharing termination time" means the earliest of the following events:
75          (a) the expiration of the agreed upon period of time established for the use of a shared
76     vehicle according to the terms of the car-sharing agreement, if the shared vehicle is delivered to
77     the location agreed upon in the car-sharing agreement;
78          (b) when the shared vehicle is returned to a location as alternatively agreed upon by the
79     shared vehicle owner and shared vehicle driver as communicated through a car-sharing
80     program, which alternatively agreed upon location shall be incorporated into the car-sharing
81     agreement; and
82          (c) when the shared vehicle owner or shared vehicle owner's authorized designee takes
83     possession and control of the shared vehicle.
84          (8) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
85          (9) "Shared vehicle" means a motor vehicle that is available for use by an individual
86     other than the shared vehicle owner through a car-sharing program.
87          (10) (a) "Shared vehicle driver" means an individual who has been authorized to drive

88     a shared vehicle by the shared vehicle owner under a car-sharing program.
89          (b) "Shared vehicle driver" does not mean a renter, as defined in Section 31A-22-311.
90          (11) (a) "Shared vehicle owner" means:
91          (i) the registered owner of a motor vehicle made available for car sharing; or
92          (ii) a person designated by the registered owner of a motor vehicle made available for
93     car sharing.
94          (b) "Shared vehicle owner" does not mean a rental company, as defined in Section
95     31A-22-311.
96          Section 2. Section 13-48a-102 is enacted to read:
97          13-48a-102. Limits on reach of chapter.
98          Nothing in this chapter:
99          (1) limits the liability of a car-sharing program for an act or omission of the car-sharing
100     program that results in injury to a person as a result of the use of a shared vehicle through a
101     car-sharing program; or
102          (2) limits the ability of the car-sharing program, by contract, to seek indemnification
103     from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the
104     car-sharing program resulting from a breach of the terms and conditions of the car-sharing
105     agreement.
106          Section 3. Section 13-48a-201 is enacted to read:
Part 2. Consumer Protection Provisions

108          13-48a-201. Notification about possible violation of lienholder agreement.
109          (1) As used in this section, "lienholder agreement" means an agreement between the
110     owner of a motor vehicle and another person under which the other person has a lien against
111     the motor vehicle.
112          (2) At the time that the owner of a motor vehicle registers to make the owner's motor
113     vehicle available for sharing through a car-sharing program, the car-sharing program shall
114     notify the owner that the use of the owner's motor vehicle through the car-sharing program,
115     including without physical damage coverage, may violate the terms of a lienholder agreement
116     that the motor vehicle may be subject to.
117          Section 4. Section 13-48a-202 is enacted to read:
118          13-48a-202. Safety recalls.

119          (1) At the time that the owner of a motor vehicle registers to make the owner's motor
120     vehicle available for sharing through a car-sharing program, the car-sharing program shall:
121          (a) verify that the shared vehicle does not have any safety recalls for which the repairs
122     have not been made; and
123          (b) notify the motor vehicle owner of the requirements under Subsections (2), (3), and
124     (4).
125          (2) An owner of a motor vehicle may not register to make the owner's motor vehicle
126     available for sharing through a car-sharing program if:
127          (a) the owner has received an actual notice of a safety recall applicable to the motor
128     vehicle; and
129          (b) the safety recall repair has not been made.
130          (3) A shared vehicle owner who receives an actual notice of a safety recall applicable
131     to the shared vehicle during the time that the shared vehicle is made available for sharing
132     through a car-sharing program shall, as soon as practicably possible after receiving the notice,
133     remove the shared vehicle from availability for sharing through the car-sharing program until
134     the safety recall repair is made.
135          (4) A shared vehicle owner who receives an actual notice of a safety recall applicable
136     to the shared vehicle during the time that the shared vehicle is in the possession of a shared
137     vehicle driver under a car-sharing agreement shall, as soon as practicably possible after
138     receiving the notice, notify the car-sharing program about the safety recall so that the shared
139     vehicle owner may address the safety recall repair.
140          Section 5. Section 13-48a-203 is enacted to read:
141          13-48a-203. Required disclosures for a car-sharing agreement.
142          A car-sharing agreement shall disclose to the shared vehicle owner and the shared
143     vehicle driver:
144          (1) a right of the car-sharing company to seek indemnification from the shared vehicle
145     owner or shared vehicle driver for economic loss resulting from a breach of the car-sharing
146     agreement;
147          (2) that a motor vehicle liability insurance policy issued to the shared vehicle owner or
148     shared vehicle driver does not provide a defense or indemnification for any claim asserted by
149     the car-sharing company;

150          (3) that the car-sharing program's insurance policy covering the shared vehicle owner
151     and the shared vehicle driver is in effect only during the car-sharing period and that, for any use
152     of the shared vehicle by the shared vehicle driver after the car-sharing termination time, the
153     shared vehicle driver and the shared vehicle owner may not have insurance coverage;
154          (4) of the daily rate, fees, and, if applicable, insurance or protection package costs that
155     are charged to the shared vehicle owner or shared vehicle driver;
156          (5) that the shared vehicle owner's motor vehicle liability insurance policy may not
157     provide coverage for the shared vehicle;
158          (6) of an emergency telephone number to contact personnel capable of fielding
159     roadside assistance or other customer service inquiries; and
160          (7) whether there are conditions under which a shared vehicle driver must maintain a
161     personal automobile insurance policy with certain applicable coverage limits on a primary basis
162     in order to book a shared vehicle.
163          Section 6. Section 13-48a-204 is enacted to read:
164          13-48a-204. Records relating to the use of shared vehicles.
165          (1) A car-sharing program shall collect and verify records pertaining to the use of a
166     shared vehicle, including times used, car-sharing period pick up and drop off locations, fees
167     paid by the shared vehicle driver, and revenues received by the shared vehicle owner, and
168     provide that information upon request to the shared vehicle owner, the shared vehicle owner's
169     insurer, or the shared vehicle driver's insurer to facilitate a claim coverage investigation,
170     settlement, negotiation, or litigation.
171          (2) The car-sharing program shall retain the records for a time period not less than two
172     years.
173          Section 7. Section 13-48a-205 is enacted to read:
174          13-48a-205. GPS or other special equipment.
175          (1) A car-sharing program:
176          (a) has sole responsibility for any GPS or other special equipment that the car-sharing
177     company places on or in a shared vehicle to monitor the shared vehicle or facilitate the
178     car-sharing agreement; and
179          (b) shall agree to indemnify and hold harmless the shared vehicle owner for any
180     damage to the shared vehicle that:

181          (i) is a result of damage to or theft of equipment described in Subsection (1)(a);
182          (ii) occurs during the car-sharing period; and
183          (iii) is not caused by the shared vehicle owner.
184          (2) A car-sharing program may seek indemnity from a shared vehicle driver for any
185     loss of or damage to equipment described in Subsection (1)(a) that occurs during the
186     car-sharing period.
187          Section 8. Section 13-48a-301 is enacted to read:
Part 3. Liability and Insurance for Covered Loss from Operation of Shared Vehicle

189          13-48a-301. Car-sharing company liability for a covered loss -- Exception.
190          (1) Except as provided in Subsection (2), a car-sharing program shall assume liability
191     of a shared vehicle owner for bodily injury or property damage to third parties or personal
192     injury protection losses during the car-sharing period in an amount stated in the car-sharing
193     agreement, which amount may not be less than those set forth in Section 31A-22-304.
194          (2) Notwithstanding the definition of car-sharing termination time, the assumption of
195     liability under Subsection (1) does not apply to a shared vehicle owner when:
196          (a) a shared vehicle owner makes an intentional or fraudulent material
197     misrepresentation or omission to the car-sharing program before the car-sharing period in
198     which the loss occurred; or
199          (b) acting in concert with a shared vehicle driver who fails to return the shared vehicle
200     pursuant to the terms of the car-sharing agreement.
201          (3) Notwithstanding the definition of car-sharing termination time, the assumption of
202     liability under Subsection (1) would apply to bodily injury, property damage, or personal injury
203     protection losses by damaged third parties required by Section 31A-22-304.
204          Section 9. Section 13-48a-302 is enacted to read:
205          13-48a-302. Motor vehicle liability insurance.
206          (1) A car-sharing program shall ensure that, during each car-sharing period, the shared
207     vehicle owner and the shared vehicle driver are insured under a motor vehicle liability
208     insurance policy in amounts no less than the minimum amounts set forth in Section
209     31A-22-304; and
210          (a) recognizes that the shared vehicle insured under the policy is made available and
211     used through a car-sharing program; or

212          (b) does not exclude use of a shared vehicle by a shared vehicle driver.
213          (2) The insurance described in Subsection (1) may be satisfied by motor vehicle
214     liability insurance maintained by:
215          (a) a shared vehicle owner;
216          (b) a shared vehicle driver;
217          (c) a car-sharing program; or
218          (d) a shared vehicle owner, a shared vehicle driver, and a car-sharing program.
219          (3) The insurance described in Subsection (1) that is satisfying the insurance
220     requirement of Subsection (1) shall be primary during each car-sharing period and in the event
221     that a claim occurs in another state with minimum financial responsibility limits higher than
222     those in Section 31A-22-304, during the car-sharing period, the coverage maintained under
223     Subsection (2) shall satisfy the difference in minimum coverage amounts, up to the applicable
224     policy limits.
225          (4) The insurer, insurers, or car-sharing program providing coverage under Subsection
226     (1) or (2) shall assume primary liability for a claim when:
227          (a) a dispute exists as to who was in control of the shared motor vehicle at the time of
228     the loss and the car-sharing program does not have available, did not retain, or fails to provide
229     the information required by Section 13-48a-203; or
230          (b) a dispute exists as to whether the shared vehicle was returned to the alternatively
231     agreed upon location as required under Section 13-48a-101.
232          (5) If insurance maintained by a shared vehicle owner or shared vehicle driver in
233     accordance with Subsection (2) has lapsed or does not provide the required coverage, insurance
234     maintained by the car-sharing program shall provide the coverage required by Subsection (1)
235     beginning with the first dollar of a claim and have the duty to defend the claim except under
236     circumstances set forth in Subsection 13-48a-301(2).
237          (6) Coverage under an automobile insurance policy maintained by the car-sharing
238     program is not dependent on another automobile insurer first denying a claim, nor shall another
239     automobile insurance policy be required to first deny a claim.
240          Section 10. Section 13-48a-303 is enacted to read:
241          13-48a-303. Certain abilities of insurance companies preserved.
242          (1) (a) A motor vehicle liability insurance policy may exclude coverage and a duty to

243     defend or indemnify with respect to a claim arising during a motor vehicle's use as a shared
244     vehicle, based on the motor vehicle's use as a shared vehicle.
245          (b) Coverage that may be excluded as provided in Subsection (1) includes coverage
246     for:
247          (i) bodily injury or property damage suffered by a third party;
248          (ii) a claim covered by uninsured motorist coverage described in Section 31A-22-305;
249          (iii) a claim covered by underinsured motorist coverage described in Section
250     31A-22-305.5;
251          (iv) a claim covered by personal injury protection coverage and benefits described in
252     Section 31A-22-307;
253          (v) a claim for medical payments;
254          (vi) a claim for comprehensive physical damage; and
255          (vii) a claim for collision physical damage.
256          (2) Nothing in this chapter invalidates, limits, or restricts the ability of an insurance
257     company under other applicable law to:
258          (a) underwrite an insurance policy; or
259          (b) cancel or fail to renew an insurance policy.
260          (3) Nothing in this chapter invalidates or limits a provision in a motor vehicle liability
261     insurance policy, including any insurance policy in use or approved for use, that excludes
262     coverage for a motor vehicle made available for rent, sharing, hire, or any business use.
263          Section 11. Section 13-48a-304 is enacted to read:
264          13-48a-304. Insurable interest -- Insurance to cover various liabilities -- No
265     liability to maintain certain insurance.
266          (1) Notwithstanding any other provision of law, a car-sharing program has an insurable
267     interest in a shared vehicle during the car-sharing period.
268          (2) A car-sharing program may own and maintain as the named insured one or more
269     policies of motor vehicle insurance that provide coverage for:
270          (a) a liability assumed by the car-sharing company under a car-sharing program;
271          (b) a liability of the shared vehicle owner;
272          (c) a liability of the shared vehicle driver; or
273          (d) damage or loss to a shared vehicle.

274          (3) Nothing in this section requires a car-sharing program to maintain insurance
275     coverage for the car-sharing program's liability under this chapter.
276          Section 12. Section 13-48a-305 is enacted to read:
277          13-48a-305. Recovery for claim excluded from insurance policy.
278          An insurance company that defends or indemnifies a claim against a shared vehicle that
279     is excluded under the terms of the insurance company's policy shall have the right to seek
280     recovery against the motor vehicle insurer of the car-sharing program if the claim is:
281          (1) made against the shared vehicle owner or shared vehicle driver for a loss or injury
282     that occurs during the car-sharing period; and
283          (2) excluded under the terms of the policy of the insurance company that defends or
284     indemnifies the claim.
285          Section 13. Section 13-48a-306 is enacted to read:
286          13-48a-306. Exemption from liability based on operation of a car-sharing
287     program or on vehicle ownership.
288          A car-sharing program and a shared vehicle owner are exempt from vicarious liability
289     consistent with 49 U.S.C. Section 30106 and under any state or local law that imposes liability
290     solely based on vehicle ownership.
291          Section 14. Section 13-48a-307 is enacted to read:
292          13-48a-307. Driver license requirement and records.
293          (1) A car-sharing program may not enter into a car-sharing agreement with a driver
294     unless the driver who will operate the shared vehicle:
295          (a) holds a driver license issued under the applicable law of this state that authorizes
296     the driver to operate vehicles of the class of the shared vehicle;
297          (b) is a nonresident who:
298          (i) has a driver license issued by the state or country of the driver's residence that
299     authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle;
300     and
301          (ii) is at least the same age as that required of a resident to drive; or
302          (c) otherwise is specifically authorized to drive vehicles of the class of the shared
303     vehicle.
304          (2) A car-sharing program shall keep a record of:

305          (a) the name and address of the shared vehicle driver;
306          (b) the number of the driver license of the shared vehicle driver and each other person,
307     if any, who will operate the shared vehicle; and
308          (c) the place of issuance of the driver license.