H.B. No. 113
 
 
 
 
AN ACT
  relating to peer-to-peer car sharing programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 5, Business & Commerce Code, is
  amended by adding Chapter 113 to read as follows:
  CHAPTER 113. PEER-TO-PEER CAR SHARING PROGRAMS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 113.0001.  DEFINITIONS. In this chapter:
               (1)  "Agreement" means the terms and conditions
  applicable to an owner and driver that govern the use of a shared
  vehicle through a peer-to-peer car sharing program. The term does
  not include a rental agreement as defined by Section 91.001.
               (2)  "Car sharing period" means the period of time
  beginning with the delivery period or, if there is no delivery
  period, the start time and ending at the termination time.
               (3)  "Delivery period" means the period of time during
  which a shared vehicle is being delivered to the location of the
  start time, if applicable, under the agreement.
               (4)  "Driver" means an individual who has been
  authorized to drive the shared vehicle by the vehicle's owner under
  an agreement.
               (5)  "Owner" means the registered owner, or a person or
  entity designated by the registered owner, of a vehicle made
  available for sharing to drivers through a peer-to-peer car sharing
  program.
               (6)  "Peer-to-peer car sharing" means the authorized
  use of a vehicle by an individual other than the vehicle's owner
  through a peer-to-peer car sharing program. The term does not
  include the use of a private passenger vehicle from a rental company
  under the terms of a rental agreement as those terms are defined by
  Section 91.001.
               (7)  "Peer-to-peer car sharing program" means a
  business platform that connects owners with drivers to enable
  vehicle sharing for financial consideration. The term does not
  include:
                     (A)  a service provider who is solely providing
  hardware or software as a service to a person or entity that is not
  effectuating payment of financial consideration for use of a shared
  vehicle; and
                     (B)  a rental company as defined by Section
  91.001.
               (8)  "Shared vehicle" means a vehicle that is available
  for sharing through a peer-to-peer car sharing program. The term
  does not include the use of a private passenger vehicle from a
  rental company under the terms of a rental agreement as those terms
  are defined by Section 91.001.
               (9)  "Start time" means the time when the shared
  vehicle becomes subject to the control of the driver at or after the
  time the reservation of a shared vehicle is scheduled to begin under
  the agreement.
               (10)  "Termination time" means the earliest of:
                     (A)  the expiration of the period of time
  established for the use of a shared vehicle according to the
  agreement if the shared vehicle is returned to the location
  specified in the agreement;
                     (B)  the time when the shared vehicle is returned
  to a location as alternatively agreed on by the owner and driver as
  communicated through a peer-to-peer car sharing program and which
  alternatively agreed on location is thereby incorporated into the
  agreement; or
                     (C)  the time when the owner or owner's authorized
  designee takes possession and control of the shared vehicle.
         Sec. 113.0002.  APPLICABILITY OF CHAPTER. This chapter
  applies to automobile insurance policies in this state, including
  policies issued by a Lloyd's plan, a reciprocal or interinsurance
  exchange, or a county mutual insurance company.
         Sec. 113.0003.  CONSTRUCTION OF CHAPTER. Nothing in this
  chapter may be construed to:
               (1)  limit the liability of a peer-to-peer car sharing
  program for any act or omission of the program itself that results
  in injury to a person as a result of the use of a shared vehicle
  through the program;
               (2)  limit the ability of a peer-to-peer car sharing
  program to, by contract, seek indemnification from the owner or
  driver for economic loss sustained by the program resulting from a
  breach of the agreement;
               (3)  have implications affecting construction of
  statutes outside this chapter, including statutes related to motor
  vehicle regulation, airport regulation, or taxation;
               (4)  invalidate or limit an exclusion contained in an
  automobile insurance policy, including an insurance policy in use
  or approved for use that excludes coverage for automobiles made
  available for rent, sharing, hire, or any business use; or
               (5)  invalidate, limit, or restrict an insurer's
  ability under law to:
                     (A)  underwrite any insurance policy; or
                     (B)  cancel or decline to renew an insurance
  policy.
         Sec. 113.0004.  RULES. The commissioner of insurance may
  adopt rules necessary to implement this chapter.
  SUBCHAPTER B. ASSUMPTION OF LIABILITY AND INSURANCE REQUIREMENTS
         Sec. 113.0051.  ASSUMPTION OF LIABILITY BY PEER-TO-PEER CAR
  SHARING PROGRAM. (a)  Except as provided by Subsection (b), a
  peer-to-peer car sharing program shall assume liability of an owner
  for bodily injury or property damage to third parties or uninsured
  or underinsured motorist or personal injury protection losses by
  damaged third parties during the car sharing period in an amount
  stated in the agreement, which may not be less than, as applicable,
  the amounts:
               (1)  provided by Subchapter D, Chapter 601,
  Transportation Code;
               (2)  required for uninsured or underinsured motorist
  coverage under Section 1952.101, Insurance Code; or
               (3)  provided as the maximum amount of required
  personal injury protection coverage under Section 1952.153,
  Insurance Code.
         (b)  A peer-to-peer car sharing program is not required to
  assume liability of an owner if the owner:
               (1)  makes an intentional or fraudulent material
  misrepresentation or omission to the program before the car sharing
  period in which the loss occurred; or
               (2)  acts in concert with a driver who fails to return
  the shared vehicle in accordance with the agreement.
         (c)  Notwithstanding the definition of "termination time"
  under Section 113.0001 or this subchapter, the assumption of
  liability under Subsection (a) applies to bodily injury, property
  damage, uninsured and underinsured motorist, or personal injury
  protection losses by damaged third parties as required by
  Subchapter D, Chapter 601, Transportation Code, Section 1952.101,
  Insurance Code, and Section 1952.153, Insurance Code.
         Sec. 113.0052.  INSURANCE REQUIRED. (a)  A peer-to-peer car
  sharing program shall ensure that, during each car sharing period,
  the owner and the driver are insured under an automobile liability
  insurance policy that meets the requirements of this subchapter.
         (b)  Insurance maintained for purposes of this subchapter:
               (1)  must provide coverage in amounts not less than the
  amounts described by Section 601.072, Transportation Code;
               (2)  must be primary during each car sharing period;
  and
               (3)  must:
                     (A)  recognize that the shared vehicle insured
  under the policy is made available and used through a peer-to-peer
  car sharing program and specifically provide coverage for that use;
  or
                     (B)  not exclude the use of a shared vehicle by a
  driver.
         (c)  The coverage requirements of this subchapter may be
  satisfied by:
               (1)  automobile insurance maintained by the owner;
               (2)  automobile insurance maintained by the driver;
               (3)  automobile insurance maintained by the
  peer-to-peer car sharing program; or
               (4)  a combination of Subdivisions (1), (2), and (3).
         (d)  If a claim occurs in another state with minimum
  financial responsibility limits higher than the amounts described
  by Section 601.072, Transportation Code, during the car sharing
  period, the coverage maintained under Subsection (a) must satisfy
  the difference in minimum coverage amounts to the applicable policy
  limits.
         Sec. 113.0053.  AUTOMOBILE INSURANCE POLICY EXCLUSIONS. An
  automobile insurer may exclude any coverage and the duty to defend
  or indemnify for any claim afforded under an owner's automobile
  insurance policy during a car sharing period, including an
  exclusion of:
               (1)  liability coverage for bodily injury and property
  damage;
               (2)  personal injury protection coverage;
               (3)  uninsured and underinsured motorist coverage;
               (4)  medical payments coverage;
               (5)  comprehensive physical damage coverage; and
               (6)  collision physical damage coverage.
         Sec. 113.0054.  CLAIMS RELATED TO PEER-TO-PEER CAR SHARING.  
  (a)  An insurer or peer-to-peer car sharing program providing
  coverage under Section 113.0052(a) shall assume primary liability
  for a claim when:
               (1)  a dispute exists as to who was in control of the
  shared vehicle at the time of the loss and the program does not have
  available, did not retain, or fails to provide the information
  required by Section 113.0103; or
               (2)  a dispute exists as to whether the shared vehicle
  was returned to the alternatively agreed upon location described by
  Section 113.0001(10)(B).
         (b)  If, at the time of a claim, the automobile insurance
  maintained by an owner or driver has lapsed or does not provide the
  coverage required under this subchapter, insurance maintained by a
  peer-to-peer car sharing program shall provide the coverage
  beginning with the first dollar of a claim and the program shall
  defend the claim.
         (c)  Coverage under an automobile insurance policy
  maintained by the peer-to-peer car sharing program may not be
  dependent on another automobile insurer first denying a claim.
  Another automobile insurance policy is not required to first deny a
  claim.
         Sec. 113.0055.  VICARIOUS LIABILITY. Notwithstanding any
  other law, a peer-to-peer car sharing program and an owner are not
  liable under a theory of vicarious liability in accordance with 49
  U.S.C. Section 30106 or under any state or local law that imposes
  liability solely based on vehicle ownership.
         Sec. 113.0056.  CONTRIBUTION. An automobile insurer that
  defends or indemnifies a claim against a shared vehicle that is
  excluded under the terms of the insurer's policy may seek recovery
  against the peer-to-peer car sharing program's automobile insurer
  if the claim is:
               (1)  made against the shared vehicle's owner or the
  shared vehicle's driver for loss or injury that occurs during the
  car sharing period; and
               (2)  excluded under the terms of the insurer's policy.
         Sec. 113.0057.  INSURABLE INTEREST. (a)  Notwithstanding
  any other law, a peer-to-peer car sharing program has an insurable
  interest in a shared vehicle during the car sharing period.
         (b)  Nothing in this section creates a duty on a peer-to-peer
  car sharing program to maintain the coverage required under this
  subchapter.
         (c)  A peer-to-peer car sharing program may own and maintain
  as the named insured one or more policies of automobile insurance
  that separately or in combination provide coverage for:
               (1)  liability assumed by the program under an
  agreement;
               (2)  liability of the owner;
               (3)  damage to or loss of the shared vehicle; or
               (4)  liability of the driver.
         Sec. 113.0058.  INSURANCE REQUIREMENTS. (a)  An insurance
  policy providing coverage described by Section 113.0057(c)(2) or
  (4) must expressly provide liability coverage, without prior notice
  to the insurer, for all shared vehicles during the car sharing
  period, subject to any conditions or exclusions permitted by this
  chapter.
         (b)  An insurer authorized to engage in the business of
  insurance in this state or an eligible surplus lines insurer may
  issue an insurance policy described by Section 113.0057(c).
         (c)  A peer-to-peer car sharing program is not required to
  itemize or charge the owner or driver the amount payable as premium
  under a policy described by Section 113.0057(c) that is allocable
  to coverage provided to the owner or driver if:
               (1)  for the owner, the coverage is included without an
  additional or itemized charge in the fee charged by the program for
  the applicable car share reservation; or
               (2)  for the driver, the coverage is included without
  an additional or itemized charge in the cost of the reservation of
  the shared vehicle.
  SUBCHAPTER C. PEER-TO-PEER CAR SHARING PROGRAM RESPONSIBILITIES
         Sec. 113.0101.  REQUIRED DISCLOSURES AND NOTICE. (a)  Each
  agreement entered into in this state must disclose to the owner and
  the driver:
               (1)  any right of the peer-to-peer car sharing program
  to seek indemnification from the owner or driver for economic loss
  sustained by the program resulting from a breach of the agreement;
               (2)  that an automobile insurance policy issued to the
  owner for the shared vehicle or to the driver does not provide a
  defense or indemnification for any claim asserted by the
  peer-to-peer car sharing program;
               (3)  that the peer-to-peer car sharing program's
  insurance coverage on the owner and the driver is in effect only
  during each car sharing period;
               (4)  that, for any use of the shared vehicle by the
  driver after the termination time, the owner and driver may not have
  insurance coverage;
               (5)  the daily rate, fees, and, if applicable, any
  insurance costs that are charged to the owner or driver;
               (6)  that the owner's automobile insurance may not
  provide coverage for a shared vehicle;
               (7)  an emergency telephone number through which
  personnel capable of fielding roadside assistance and other
  customer service inquiries may be reached; and
               (8)  if applicable, any condition under which a driver
  must maintain a personal automobile insurance policy with certain
  applicable coverage limits on a primary basis to book a shared
  vehicle.
         (b)  When a person registers as an owner on a peer-to-peer
  car sharing program and before the owner makes a shared vehicle
  available for car sharing on the program, the program shall provide
  written notice to the owner that, if the shared vehicle has a lien
  against it, the shared vehicle's use through the program, including
  use without physical damage coverage, may violate the terms of the
  contract with the lienholder.
         Sec. 113.0102.  AUTHORIZATION TO DRIVE REQUIRED. A
  peer-to-peer car sharing program may not enter into an agreement
  with a driver unless the driver who will operate the shared vehicle:
               (1)  is a resident of this state and holds a driver's
  license issued by this state that authorizes the driver to operate
  vehicles of the class of the shared vehicle;
               (2)  is a nonresident of this state and:
                     (A)  holds a driver's license issued by the state
  or country of the driver's residence that authorizes the driver to
  operate vehicles of the class of the shared vehicle; and
                     (B)  is at least the same age as that required of a
  resident of this state to drive; or
               (3)  is otherwise specifically authorized by this state
  to drive vehicles of the class of the shared vehicle.
         Sec. 113.0103.  RECORD RETENTION. (a)  A peer-to-peer car
  sharing program shall keep and maintain a record of:
               (1)  the name and address of each driver who has entered
  into an agreement with the program; and
               (2)  the driver's license number and place of issuance
  of each driver and individual who will operate a shared vehicle
  under the program.
         (b)  A peer-to-peer car sharing program shall collect and
  verify records related to use of a shared vehicle under the program,
  including:
               (1)  the times the vehicle is used;
               (2)  car sharing period pick-up and drop-off locations;
               (3)  money received by the owner; and
               (4)  fees paid by the driver.
         (c)  A peer-to-peer car sharing program shall provide
  information collected under Subsection (b) on request to the owner,
  the owner's insurer, or the driver's insurer to facilitate a claim
  coverage investigation, settlement, negotiation, or litigation.
         (d)  A peer-to-peer car sharing program shall retain
  information collected under Subsection (b) for a period of not less
  than the limitations period provided under Section 16.003, Civil
  Practice and Remedies Code, for a personal injury suit.
         Sec. 113.0104.  RESPONSIBILITY FOR CAR SHARING EQUIPMENT.
  (a)  A peer-to-peer car sharing program is solely responsible for
  any equipment, including a global positioning system device or
  other special equipment, placed in or on a shared vehicle used under
  the program to monitor or facilitate the car sharing transaction.
  The program shall agree to indemnify and hold harmless the
  vehicle's owner for any damage to or theft of such equipment during
  the car sharing period not caused by the owner.
         (b)  A peer-to-peer car sharing program may seek indemnity
  from a driver for any loss of or damage to equipment described by
  Subsection (a) that occurs during the car sharing period.
         Sec. 113.0105.  AUTOMOBILE SAFETY RECALL. (a)  When a person
  registers as an owner on a peer-to-peer car sharing program and
  before the owner makes a shared vehicle available for car sharing on
  the program, the program shall:
               (1)  verify that the vehicle does not have a safety
  recall for which repairs have not been made; and
               (2)  notify the owner of the requirements under
  Subsection (b).
         (b)  If an owner receives notice of a safety recall on a
  shared vehicle:
               (1)  before the vehicle has been made available as a
  shared vehicle on a peer-to-peer car sharing program, the owner may
  not make the vehicle available as a shared vehicle on the program
  until the safety recall repair has been made;
               (2)  while the vehicle is available as a shared vehicle
  on a peer-to-peer car sharing program, the owner shall remove the
  vehicle from the program as soon as practicably possible after
  receiving the safety recall notice and until the safety recall
  repair has been made; or
               (3)  while the vehicle is being used in the possession
  of a driver, the owner shall notify the peer-to-peer car sharing
  program as soon as practicably possible after receiving the safety
  recall notice to allow the owner to address the safety recall
  repair.
         SECTION 2.  (a)  Chapter 113, Business & Commerce Code, as
  added by this Act, applies only to an automobile insurance policy
  delivered, issued for delivery, or renewed on or after January 1,
  2022. An automobile insurance policy delivered, issued for
  delivery, or renewed before January 1, 2022, is governed by the law
  as it existed immediately before the effective date of this Act, and
  that law is continued in effect for that purpose.
         (b)  Chapter 113, Business & Commerce Code, as added by this
  Act, applies only to a peer-to-peer car sharing agreement entered
  into on or after January 1, 2022.
         SECTION 3.  This Act takes effect September 1, 2021.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 113 was passed by the House on April
  21, 2021, by the following vote:  Yeas 148, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 113 was passed by the Senate on May
  22, 2021, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor