5E8121C55056ADAB872583CA006B7287 Hearing Summary

Representative Gray introduced Senate Bill 19-090 concerning the operation of peer-to-peer motor vehicle sharing business.  The bill regulates peer-to-peer car sharing, including requiring that the car be insured by the owner, driver, or program and that the insurance that satisfies the required coverage is the primary insurance; requiring that the car sharing programs notify the car owner that sharing the car may violate any lien on the car; authorizing the shared car owner's insurer to exclude coverage when the car in the program gives the insurer a right of contribution for any claims made as a result of car sharing; prohibiting an insurer from denying coverage outside of sharing solely because the car covered on the policy has been made available for sharing unless the car owner fails to provide complete and accurate information; setting recordkeeping requirements; clarifying that the car sharing program and shared car owner are exempt under federal law from vicarious liability based on ownership of the car; authorizing a car sharing program to be the named insured for a shared car; requiring the program to make certain disclosures and provide an emergency telephone number; requiring the program to verify a driver's license and keep records of the verification; making the program responsible for equipment installed on the shared car for sharing purposes; and, when there is a safety recall, requiring the program and the car owner to remove the car from the program until repaired.

The committee questioned the sponsor about registration fees and taxes for rental cars and peer-to-peer car sharing and the structure of peer-to-peer car sharing companies.

Robert Williams, representing Get Around, testified in support of the bill.

Kevin Bellwood, representing Turo, testified in support the bill.

The committee questioned the witnesses about the use of cars at the airport and the number of cars owners may place in a car share program. There were questions for Brendon Reese, representing the Department of Revenue, about rental car companies and FASTER and sales tax fees.

Megan Wood-Trombley, representing Enterprise Holding, testified in opposition to the bill.

Ray Wagner, representing Enterprise Holding, testified in opposition to the bill.

The committee questioned the witnesses about operations at the airport, including fees and taxes and the concessionaire agreement, the concept of car sharing and regulations, sales tax on sold cars, and a comparison of rental company and shared car rental rates. The committee questioned the sponsor about car ownership.

The committee continued to question the witnesses about limits for car companies and private parties, insurance, business opportunities, and vicarious liability. The bill sponsor answered questions about limits on numbers of cars placed in service and taxes and fees, and the definition of shared cars.

The committee continued to question the witnesses about required state and federal insurance regulations for rental companies and those that participate in car sharing.

Ethan Wilson, representing Turo, testified in support of the bill.

Travis Berry, representing Drift, testified in support of the bill.

The committee questioned the witnesses about the nature of the car sharing services, the definition of person, how cars are entered into the application, and limits to registering cars on the shared service. The bill sponsor answered questions about the definition of person, businesses using the application, enforcement of number of cars being registered on the application, and the primary purpose of the vehicle being shared.

The committee continued to question the witnesses about collecting information about car owners using the service.

Steve Topalian, representing Enterprise, testified in opposition to the bill.  Mr. Topalian provided a handout (Attachment A).

The committee questioned the witness about service of cars in rental companies, fees and taxes collected by car rental companies, and income taxes for car sharing. The sponsor made comments about the fees table attachment.

Kelly Campbell, representing the American Property and Casualty Insurance Company, testified in support of the bill.

The committee questioned the witness about other states' legislation.

The committee recessed briefly.

The committee came back to order

The committee questioned the sponsor about airports.

The sponsor made closing remarks about the bill.

The committee made closing remarks about the bill.