LRBs0379/1
KRP&JK:skw
2023 - 2024 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 395
February 22, 2024 - Offered by Representative Considine.
AB395-ASA1,1,4
1An Act to amend 77.99, 77.995 (2), 344.57 (5), 344.57 (6) and 344.57 (7); and
to
2create 344.51 (4), 344.581 and 632.362 of the statutes;
relating to:
3requirements for and insurance related to peer-to-peer motor vehicle sharing
4programs.
Analysis by the Legislative Reference Bureau
This bill generally requires that peer-to-peer motor vehicle sharing programs
assume liability, as specified under the bill, for the owners of shared vehicles and sets
certain other requirements on those programs.
Under the bill, a peer-to-peer motor vehicle sharing program is a business
platform that connects a motor vehicle owner with an individual to enable the
individual's use of the motor vehicle for financial consideration. The individual must
have a driver's license to be able to participate in the sharing program.
The bill requires the sharing program to assume liability for the shared vehicle
owner for bodily injury and property damage to third parties and for uninsured
motorist and personal injury protection losses in amounts stated in the sharing
agreement that are no less than the following amounts:
1. Fifty thousand dollars because of bodily injury to or death of one person in
any one accident.
2. Subject to the limit under item 1. for one person, $100,000 because of bodily
injury to or death of two or more persons in any one accident.
3. If the accident results in injury to or destruction of property, $20,000 because
of injury to or destruction of property of others in any one accident.
4. Uninsured motorist coverage of $50,000 per person and $100,000 per
accident.
An insurer writing a policy with respect to a peer-to-peer motor vehicle sharing
program also must comply with current law requirements regarding offering
underinsured motorist coverage.
Under the bill, the sharing program is not required to assume liability if the
vehicle owner makes an intentional or fraudulent material misrepresentation or
omission or is acting in concert with a driver who fails to return the motor vehicle in
accordance with the sharing agreement.
The bill also requires the sharing program to ensure that each shared vehicle
owner and driver are insured under a policy that provides coverage in amounts no
less than the amounts described above. That required coverage may be provided
under primary insurance maintained by the shared vehicle owner, the shared vehicle
driver, the sharing program, or any combination of those. The bill requires that the
insurer, insurers, or sharing program providing coverage must provide primary
coverage if there is a dispute about who controlled the vehicle at the time of the loss
and the program does not retain information required under the bill or if there is a
dispute about whether the vehicle was dropped off at a location specified in the
sharing agreement. Under the bill, the sharing program's insurance must cover the
loss beginning with the first dollar and has the duty to defend if the driver's or
owner's insurance has lapsed or does not provide the required coverage. The bill
gives the sharing program an insurable interest in the motor vehicle during the
period it is being shared and allows the sharing program to own and maintain
coverage specified under the bill.
The bill allows insurers writing motor vehicle insurance to exclude coverage,
including liability for bodily injury and property damage and uninsured and
underinsured motorists coverage, and to refuse to defend or indemnify for any claim
under a shared vehicle owner's policy.
The bill exempts sharing programs and shared vehicle owners from liability in
accordance with a federal law that exempts a vehicle owner who rents or leases the
vehicle from liability for harm to persons or property that results from or arises out
of the use, operation, or possession of the vehicle during the rental or lease if the
owner is engaged in the business of renting or leasing motor vehicles and there is no
negligence or criminal wrongdoing on the part of the owner. The bill also exempts
sharing programs and shared vehicle owners from state laws regarding financial
responsibility for rented vehicles and damage waivers and liability in the context of
vehicle rental agreements.
The bill requires the sharing program to verify that the shared vehicle is not
the subject of a safety recall at the time the vehicle is registered with the program.
A shared vehicle owner that receives a safety recall notice must remove the vehicle
from the program and refrain from sharing it until the repairs are made and, if the
vehicle is in the possession of a shared vehicle driver, notify the sharing program of
the recall.
The bill requires the sharing program to disclose certain information to shared
vehicle owners and drivers, including information related to insurance coverage and
the daily rates and fees, and to retain information about the sharing transactions.
Additionally, at the time a vehicle owner registers with a sharing program, the
sharing program must inform the owner of the responsibilities relating to safety
recalls and that sharing the vehicle may violate an agreement with a lienholder.
Under the bill, the sharing program has responsibility for any equipment that
is put in or on the vehicle to monitor or facilitate the sharing transaction. The
sharing program must agree to indemnify and hold harmless the owner for any
damage or theft to that equipment not caused by the owner, but has the right to seek
indemnity from the driver for such loss or damage.
Finally, the bill also specifies that sharing programs and shared vehicle owners
are not establishments primarily engaged in the short-term rental of passenger cars
for purposes of the local rental car tax and the short-term rental of vehicles for the
purposes of the state rental vehicle fee, if the applicable sales and use taxes are paid
for the purchase of the shared motor vehicle.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB395-ASA1,1
1Section 1
. 77.99 of the statutes is amended to read:
AB395-ASA1,4,5
277.99 Imposition. A local exposition district under subch. II of ch. 229 may
3impose a tax at the rate of 3 percent of the sales price on the rental, but not for
4rerental and not for rental as a service or repair replacement vehicle, within the
5district's jurisdiction under s. 229.43, of Type 1 automobiles, as defined in s. 340.01
6(4) (a), by establishments primarily engaged in short-term rental of passenger cars
7without drivers, for a period of 30 days or less, unless the sale is exempt from the sales
8tax under s. 77.54 (1), (4), (7) (a), (7m), (9) or (9a). If the state makes a payment under
9s. 229.50 (7) to a district's special debt service reserve fund, a majority of the district's
10authorized board of directors may vote to increase the tax rate under this subchapter
11to 4 percent. A resolution to adopt the taxes imposed under this section, or an
12increase in the tax rate, shall be effective on the first January 1, April 1, July 1, or
13October 1 following the adoption of the resolution or tax increase.
For purposes of
1this section, a peer-to-peer motor vehicle sharing program, as defined in s. 632.362
2(1) (g), or a shared vehicle owner, as defined in s. 632.362 (1) (i), is not an
3establishment primarily engaged in short-term rental of passenger cars without
4drivers, if the applicable taxes under s. 77.52 or 77.53 have been paid for the purchase
5of the shared motor vehicle.
AB395-ASA1,2
6Section 2
. 77.995 (2) of the statutes is amended to read:
AB395-ASA1,4,197
77.995
(2) There is imposed a fee at the rate of 5 percent of the sales price on
8the rental, but not for rerental and not for rental as a service or repair replacement
9vehicle of Type 1 automobiles, as defined in s. 340.01 (4) (a); of recreational vehicles,
10as defined in s. 340.01 (48r); of motor homes, as defined in s. 340.01 (33m); and of
11camping trailers, as defined in s. 340.01 (6m) by establishments primarily engaged
12in short-term rental of vehicles without drivers, for a period of 30 days or less, unless
13the sale is exempt from the sales tax under s. 77.54 (1), (4), (7) (a), (7m) or (9a). There
14is also imposed a fee at the rate of 5 percent of the sales price on the rental of
15limousines.
For purposes of this subsection, a peer-to-peer motor vehicle sharing
16program, as defined in s. 632.362 (1) (g), or a shared vehicle owner, as defined in s.
17632.362 (1) (i), is not an establishment primarily engaged in short-term rental of
18vehicles without drivers, if the applicable taxes under s. 77.52 or 77.53 have been
19paid for the purchase of the shared motor vehicle.
AB395-ASA1,3
20Section 3
. 344.51 (4) of the statutes is created to read:
AB395-ASA1,4,2321
344.51
(4) This section does not apply to a motor vehicle sharing agreement,
22as defined in s. 632.362 (1) (b); a peer-to-peer motor vehicle sharing program, as
23defined in s. 632.362 (1) (g); or a shared vehicle owner, as defined in s. 632.362 (1) (i).
AB395-ASA1,4
24Section
4
. 344.57 (5) of the statutes is amended to read:
AB395-ASA1,5,4
1344.57
(5) “Rental agreement" means a written agreement setting forth the
2terms and conditions governing the use of a private passenger vehicle provided for
3rent by a rental company.
“Rental agreement” does not include a motor vehicle
4sharing agreement, as defined in s. 632.362 (1) (b).
AB395-ASA1,5
5Section
5. 344.57 (6) of the statutes is amended to read:
AB395-ASA1,5,96
344.57
(6) “Rental company" means a person in the business of providing
7private passenger vehicles for rent to the public.
“Rental company” does not include
8a person operating a peer-to-peer motor vehicle sharing program, as defined in s.
9632.362 (1) (g), or a shared vehicle owner, as defined in s. 632.362 (1) (i).
AB395-ASA1,6
10Section
6. 344.57 (7) of the statutes is amended to read:
AB395-ASA1,5,1311
344.57
(7) “Renter" means the person who rents a private passenger vehicle
12from a rental company under a rental agreement.
“Renter” does not include a shared
13vehicle driver, as defined in s. 632.362 (1) (h).
AB395-ASA1,7
14Section 7
. 344.581 of the statutes is created to read:
AB395-ASA1,5,16
15344.581 Peer-to-peer motor vehicle sharing. (1) Definitions. In this
16section:
AB395-ASA1,5,1817
(a) “Motor vehicle sharing agreement” has the meaning given in s. 632.362 (1)
18(b).
AB395-ASA1,5,1919
(b) “Motor vehicle sharing duration” has the meaning given in s. 632.362 (1) (d).
AB395-ASA1,5,2120
(c) “Peer-to-peer motor vehicle sharing program” has the meaning given in s.
21632.362 (1) (g).
AB395-ASA1,5,2222
(d) “Shared vehicle driver” has the meaning given in s. 632.362 (1) (h).
AB395-ASA1,5,2423
(e) Notwithstanding s. 344.01 (2) (cm), “shared vehicle owner” has the meaning
24given in s. 632.362 (1) (i).
AB395-ASA1,6,4
1(2) Operator's license required. A peer-to-peer motor vehicle sharing
2program may not enter into a motor vehicle sharing agreement with an individual
3who will operate a shared motor vehicle unless the individual has attained the age
4of 18 and satisfies any of the following:
AB395-ASA1,6,65
(a) The individual holds an operator's license under ch. 343 that authorizes the
6individual to operate a motor vehicle of the class of the shared motor vehicle.
AB395-ASA1,6,107
(b) The individual is a nonresident of this state who holds a license issued by
8the state or country of the individual's residence that authorizes the individual to
9operate a motor vehicle of the class of the shared motor vehicle in that state or
10country.
AB395-ASA1,6,20
11(3) Responsibility for certain equipment. A peer-to-peer motor vehicle
12sharing program has sole responsibility for any equipment, including a global
13positioning system or other special equipment, that is put in or on a motor vehicle
14to monitor or facilitate the motor vehicle sharing transaction. The peer-to-peer
15motor vehicle sharing program shall agree to indemnify and hold harmless the
16shared vehicle owner for any damage to or theft of equipment described under this
17subsection during the motor vehicle sharing duration that is not caused by the
18shared vehicle owner. The peer-to-peer motor vehicle sharing program has the right
19to seek indemnity from the shared vehicle driver for any loss or damage to equipment
20described under this subsection during the motor vehicle sharing duration.
AB395-ASA1,6,24
21(4) Safety recalls. (a) At the time a motor vehicle owner registers as a shared
22vehicle owner through a peer-to-peer motor vehicle sharing program and before the
23shared vehicle owner makes a motor vehicle available for sharing, the peer-to-peer
24motor vehicle sharing program shall do all of the following:
AB395-ASA1,7,2
11. Verify that the shared motor vehicle is not the subject of a safety recall for
2which the repairs have not been made.
AB395-ASA1,7,43
2. Notify the shared vehicle owner of the shared vehicle owner's responsibilities
4under par. (b).
AB395-ASA1,7,65
(b) A shared vehicle owner that receives notice of a safety recall on the shared
6motor vehicle shall do all of the following, as applicable:
AB395-ASA1,7,87
1. Refrain from making the motor vehicle available for sharing until the safety
8recall repair has been made.
AB395-ASA1,7,129
2. If the motor vehicle has been made available for sharing before receipt of the
10notice of recall, remove the motor vehicle from the peer-to-peer motor vehicle
11sharing program as soon as practicable after receipt of the notice and until the safety
12recall repair has been made.
AB395-ASA1,7,1513
3. If the motor vehicle is in possession of the shared vehicle driver at the time
14of receipt of the notice of recall, notify the peer-to-peer motor vehicle sharing
15program of the recall as soon as practicable after receipt of the notice.
AB395-ASA1,7,20
16(5) Record retention. For each individual who will operate a shared motor
17vehicle under a motor vehicle sharing agreement, a peer-to-peer motor vehicle
18sharing program shall keep a record of the individual's name and address, the
19individual's operator's license number, and the state or foreign country that issued
20the individual's operator's license.
AB395-ASA1,8
21Section 8
. 632.362 of the statutes is created to read: