Florida Senate - 2020                              CS for SB 478
       
       
        
       By the Committee on Innovation, Industry, and Technology; and
       Senator Perry
       
       
       
       
       580-02633-20                                           2020478c1
    1                        A bill to be entitled                      
    2         An act relating to motor vehicle rentals; amending s.
    3         212.0606, F.S.; defining the terms “motor vehicle
    4         rental company” and “peer-to-peer car-sharing
    5         program”; revising the applicability of the rental car
    6         surcharge; imposing the surcharge on certain motor
    7         vehicle leases or rentals by a peer-to-peer car
    8         sharing program; specifying who must collect the
    9         surcharge; making technical changes; creating s.
   10         627.7483, F.S.; defining terms; specifying motor
   11         vehicle insurance requirements for shared vehicles on
   12         a peer-to-peer car-sharing program; providing
   13         construction relating to such insurance; requiring a
   14         peer-to-peer car-sharing program to assume specified
   15         liability of a shared vehicle owner; providing
   16         exceptions; requiring a shared vehicle owner’s insurer
   17         to indemnify the peer-to-peer car-sharing program
   18         under certain circumstances; authorizing a shared
   19         vehicle owner’s motor vehicle insurer to exclude
   20         certain coverages and the duty to defend or indemnify
   21         certain claims; authorizing such insurer to seek
   22         contribution against the peer-to-peer car-sharing
   23         program’s insurer under certain circumstances;
   24         requiring a peer-to-peer car-sharing program to notify
   25         the shared vehicle owner of certain lien information;
   26         specifying recordkeeping and record disclosure
   27         requirements for peer-to-peer car-sharing programs;
   28         specifying disclosure requirements for peer-to-peer
   29         car-sharing program agreements; specifying shared
   30         vehicle driver license requirements; specifying
   31         liability for damage to certain equipment in or on a
   32         shared vehicle; specifying requirements for peer-to
   33         peer car-sharing programs relating to safety recalls
   34         on shared vehicles; providing construction; providing
   35         an effective date.
   36          
   37  Be It Enacted by the Legislature of the State of Florida:
   38  
   39         Section 1. Section 212.0606, Florida Statutes, is amended
   40  to read:
   41         212.0606 Rental car surcharge.—
   42         (1) As used in this section, the term:
   43         (a)“Car-sharing service” means a membership-based
   44  organization or business, or division thereof, which requires
   45  the payment of an application fee or a membership fee and
   46  provides member access to motor vehicles:
   47         1.Only at locations that are not staffed by car-sharing
   48  service personnel employed solely for the purpose of interacting
   49  with car-sharing service members;
   50         2.Twenty-four hours per day, 7 days per week;
   51         3.Only through automated means, including, but not limited
   52  to, a smartphone application or an electronic membership card;
   53         4.On an hourly basis or for a shorter increment of time;
   54         5.Without a separate fee for refueling the motor vehicle;
   55         6.Without a separate fee for minimum financial
   56  responsibility liability insurance; and
   57         7.Owned or controlled by the car-sharing service or its
   58  affiliates.
   59         (b)“Motor vehicle rental company” means an entity that is
   60  in the business of providing motor vehicles to the public under
   61  a rental agreement for financial consideration.
   62         (c)“Peer-to-peer car-sharing program” has the same meaning
   63  as in s. 627.7483(1).
   64         (2) Except as provided in subsection (3) (2), a surcharge
   65  of $2 per day or any part of a day is imposed upon the lease or
   66  rental by a motor vehicle rental company or a peer-to-peer car
   67  sharing program of a motor vehicle that is licensed for hire and
   68  designed to carry fewer than nine passengers, regardless of
   69  whether the motor vehicle is licensed in this state, for
   70  financial consideration without transfer of the title of the
   71  motor vehicle. The surcharge is imposed regardless of whether
   72  the lease or rental occurs in person or through digital means.
   73  The surcharge applies to only the first 30 days of the term of a
   74  lease or rental and must be collected by the motor vehicle
   75  rental company or the peer-to-peer car-sharing program. The
   76  surcharge is subject to all applicable taxes imposed by this
   77  chapter.
   78         (3)(2) A member of a car-sharing service who uses a motor
   79  vehicle as described in subsection (2) (1) for less than 24
   80  hours pursuant to an agreement with the car-sharing service
   81  shall pay a surcharge of $1 per usage. A member of a car-sharing
   82  service who uses the same motor vehicle for 24 hours or more
   83  shall pay a surcharge of $2 per day or any part of a day as
   84  provided in subsection (2) (1). The car-sharing service shall
   85  collect the surcharge For purposes of this subsection, the term
   86  “car-sharing service” means a membership-based organization or
   87  business, or division thereof, which requires the payment of an
   88  application or membership fee and provides member access to
   89  motor vehicles:
   90         (a) Only at locations that are not staffed by car-sharing
   91  service personnel employed solely for the purpose of interacting
   92  with car-sharing service members;
   93         (b) Twenty-four hours per day, 7 days per week;
   94         (c) Only through automated means, including, but not
   95  limited to, smartphone applications or electronic membership
   96  cards;
   97         (d) On an hourly basis or for a shorter increment of time;
   98         (e) Without a separate fee for refueling the motor vehicle;
   99         (f) Without a separate fee for minimum financial
  100  responsibility liability insurance; and
  101         (g) Owned or controlled by the car-sharing service or its
  102  affiliates. The surcharge imposed under this subsection does not
  103  apply to the lease, rental, or use of a motor vehicle from a
  104  location owned, operated, or leased by or for the benefit of an
  105  airport or airport authority.
  106         (4)(3)(a) Notwithstanding s. 212.20, and less the costs of
  107  administration, 80 percent of the proceeds of this surcharge
  108  shall be deposited in the State Transportation Trust Fund, 15.75
  109  percent of the proceeds of this surcharge shall be deposited in
  110  the Tourism Promotional Trust Fund created in s. 288.122, and
  111  4.25 percent of the proceeds of this surcharge shall be
  112  deposited in the Florida International Trade and Promotion Trust
  113  Fund. For the purposes of this subsection, the term “proceeds of
  114  this surchargeof the surcharge means all funds collected and
  115  received by the department under this section, including
  116  interest and penalties on delinquent surcharges. The department
  117  shall provide the Department of Transportation rental car
  118  surcharge revenue information for the previous state fiscal year
  119  by September 1 of each year.
  120         (b) Notwithstanding any other provision of law, the
  121  proceeds deposited in the State Transportation Trust Fund shall
  122  be allocated on an annual basis in the Department of
  123  Transportation’s work program to each department district,
  124  except the Turnpike District. The amount allocated to each
  125  district shall be based on the amount of proceeds attributed to
  126  the counties within each respective district.
  127         (5)(a)(4) Except as provided in this section, the
  128  department shall administer, collect, and enforce the surcharge
  129  as provided in this chapter.
  130         (b)(a) The department shall require a dealer dealers to
  131  report surcharge collections according to the county to which
  132  the surcharge was attributed. For purposes of this section, the
  133  surcharge shall be attributed to the county where the rental
  134  agreement was entered into.
  135         (c)(b)A dealer Dealers who collects collect the rental car
  136  surcharge shall report to the department all surcharge revenues
  137  attributed to the county where the rental agreement was entered
  138  into on a timely filed return for each required reporting
  139  period. The provisions of this chapter which apply to interest
  140  and penalties on delinquent taxes apply to the surcharge. The
  141  surcharge shall not be included in the calculation of estimated
  142  taxes pursuant to s. 212.11. The dealer’s credit provided in s.
  143  212.12 does not apply to any amount collected under this
  144  section.
  145         (6)(5) The surcharge imposed by this section does not apply
  146  to a motor vehicle provided at no charge to a person whose motor
  147  vehicle is being repaired, adjusted, or serviced by the entity
  148  providing the replacement motor vehicle.
  149         Section 2. Section 627.7483, Florida Statutes, is created
  150  to read:
  151         627.7483 Peer-to-peer car sharing.—
  152         (1)DEFINITIONS.As used in this section, the term:
  153         (a)“Peer-to-peer car sharing” means the authorized use of
  154  a motor vehicle by an individual other than the vehicle’s owner
  155  through a peer-to-peer car-sharing program. The term does not
  156  include ridesharing as defined in s. 341.031(9), a carpool as
  157  defined in s. 450.28(3), or the use of a motor vehicle under an
  158  agreement for a car-sharing service as defined in s.
  159  212.0606(1).
  160         (b)“Peer-to-peer car-sharing delivery period” means the
  161  period during which a shared vehicle is delivered to the
  162  location of the peer-to-peer car-sharing start time, if
  163  applicable, as documented by the governing peer-to-peer car
  164  sharing program agreement.
  165         (c)“Peer-to-peer car-sharing period” means the period
  166  beginning either at the peer-to-peer car-sharing delivery
  167  period, or, if there is no peer-to-peer car-sharing delivery
  168  period, at the peer-to-peer car-sharing start time, and ending
  169  at the peer-to-peer car-sharing termination time.
  170         (d)“Peer-to-peer car-sharing program” means a business
  171  platform that enables peer-to-peer car sharing by connecting
  172  motor vehicle owners with drivers for financial consideration.
  173  The term does not include a taxicab association or a
  174  transportation network company as defined in s. 627.748(1).
  175         (e)“Peer-to-peer car-sharing program agreement” means the
  176  terms and conditions established by the peer-to-peer car-sharing
  177  program which are applicable to a shared vehicle owner and a
  178  shared vehicle driver and which govern the use of a shared
  179  vehicle through a peer-to-peer car-sharing program.
  180         (f)“Peer-to-peer car-sharing start time” means the time
  181  when the shared vehicle is under the control of the shared
  182  vehicle driver, which occurs at or after the time the
  183  reservation of the shared vehicle is scheduled to begin, as
  184  documented in the peer-to-peer car-sharing program agreement.
  185         (g)“Peer-to-peer car-sharing termination time” means the
  186  earliest of the following:
  187         1.The expiration of the agreed-upon period established for
  188  the use of a shared vehicle according to the terms of the peer
  189  to-peer car-sharing program agreement, if the shared vehicle is
  190  delivered to the location agreed upon in the peer-to-peer car
  191  sharing program agreement;
  192         2.The time the shared vehicle is returned to a location as
  193  alternatively agreed upon by the shared vehicle owner and shared
  194  vehicle driver, as communicated through a peer-to-peer car
  195  sharing program; or
  196         3.The time the shared vehicle owner takes possession and
  197  control of the shared vehicle.
  198         (h)“Shared vehicle” means a motor vehicle that is
  199  available for sharing through a peer-to-peer car-sharing
  200  program. The term does not include a motor vehicle used for
  201  ridesharing as defined in s. 341.031(9) or a motor vehicle used
  202  for a carpool as defined in s. 450.28(3).
  203         (i)“Shared vehicle driver” means an individual who is
  204  authorized by the shared vehicle owner to drive the shared
  205  vehicle under the peer-to-peer car-sharing program agreement.
  206         (j)“Shared vehicle owner” means the registered owner, or a
  207  person or entity designated by the registered owner, of a motor
  208  vehicle made available for sharing to shared vehicle drivers
  209  through a peer-to-peer car-sharing program.
  210         (2)INSURANCE COVERAGE REQUIREMENTS.
  211         (a)1.A peer-to-peer car-sharing program shall ensure
  212  during each peer-to-peer car-sharing period that the shared
  213  vehicle owner and the shared vehicle driver are insured under a
  214  motor vehicle insurance policy that provides all of the
  215  following:
  216         a.Property damage liability coverage that meets the
  217  minimum coverage amounts required under s. 324.022.
  218         b.Bodily injury liability coverage limits as specified in
  219  s. 324.021(7)(a) and (b).
  220         c.Personal injury protection benefits that meet the
  221  minimum coverage amounts required under s. 627.736.
  222         d.Uninsured and underinsured vehicle coverage as required
  223  under s. 627.727.
  224         2.The peer-to-peer car-sharing program shall also ensure
  225  that the motor vehicle insurance policy under subparagraph 1.:
  226         a.Recognizes that the shared vehicle insured under the
  227  policy is made available and used through a peer-to-peer car
  228  sharing program; and
  229         b.Does not exclude the use of a shared vehicle by a shared
  230  vehicle driver.
  231         (b)1.The insurance requirements under paragraph (a) may be
  232  satisfied by a motor vehicle insurance policy maintained by:
  233         a.A shared vehicle owner;
  234         b.A shared vehicle driver;
  235         c.A peer-to-peer car-sharing program; or
  236         d.A combination of a shared vehicle owner, a shared
  237  vehicle driver, and a peer-to-peer car-sharing program.
  238         2.The insurance policy maintained in subparagraph 1. which
  239  satisfies the insurance requirements under paragraph (a) is
  240  primary during each peer-to-peer car-sharing period.
  241         3.a.If the insurance maintained by a shared vehicle owner
  242  or shared vehicle driver in accordance with subparagraph 1.
  243  lapses or does not provide the coverage required under paragraph
  244  (a), the insurance maintained by the peer-to-peer car-sharing
  245  program must provide the coverage required under paragraph (a)
  246  beginning with the first dollar of a claim and must defend such
  247  claim, except under circumstances as set forth in subparagraph
  248  (3)(a)2.
  249         b.Coverage under a motor vehicle insurance policy
  250  maintained by the peer-to-peer car-sharing program may not be
  251  dependent on another motor vehicle insurer first denying a
  252  claim, and another motor vehicle insurance policy is not
  253  required to first deny a claim.
  254         c.Notwithstanding any other law to the contrary, a peer
  255  to-peer car-sharing program has an insurable interest in a
  256  shared vehicle during the peer-to-peer car-sharing period. This
  257  sub-subparagraph does not create liability for a network for
  258  maintaining the coverage required under paragraph (a) and under
  259  this paragraph, if applicable.
  260         d.A peer-to-peer car-sharing program may own and maintain
  261  as the named insured one or more policies of motor vehicle
  262  insurance which provide coverage for:
  263         (I)Liabilities assumed by the peer-to-peer car-sharing
  264  program under a peer–to–peer car-sharing program agreement;
  265         (II)Liability of the shared vehicle owner;
  266         (III)Liability of the shared vehicle driver;
  267         (IV)Damage or loss to the shared motor vehicle; or
  268         (V)Damage, loss, or injury to persons or property to
  269  satisfy the personal injury protection and uninsured and
  270  underinsured motorist coverage requirements of this section.
  271         e.Insurance required under paragraph (a), when maintained
  272  by a peer-to-peer car-sharing program, may be provided by an
  273  insurer authorized to do business in this state which is a
  274  member of the Florida Insurance Guaranty Association or by an
  275  eligible surplus lines insurer that has a superior, excellent,
  276  exceptional, or equivalent financial strength rating by a rating
  277  agency acceptable to the office. A peer-to-peer car-sharing
  278  program is not transacting in insurance when it maintains the
  279  insurance required under this section.
  280         (3)LIABILITIES AND INSURANCE EXCLUSIONS.
  281         (a)Liability.
  282         1.A peer-to-peer car-sharing program shall assume
  283  liability, except as provided in subparagraph 2., of a shared
  284  vehicle owner for bodily injury or property damage to third
  285  parties or uninsured and underinsured motorist or personal
  286  injury protection losses during the peer-to-peer car-sharing
  287  period in amounts stated in the peer-to-peer car-sharing program
  288  agreement. Such amounts may not be less than those set forth in
  289  ss. 324.021(7)(a) and (b), 324.022, 627.727, and 627.736,
  290  respectively.
  291         2.The assumption of liability under subparagraph 1. does
  292  not apply if a shared vehicle owner:
  293         a.Makes an intentional or fraudulent material
  294  misrepresentation or omission to the peer-to-peer car-sharing
  295  program before the peer-to-peer car-sharing period in which the
  296  loss occurs; or
  297         b.Acts in concert with a shared vehicle driver who fails
  298  to return the shared vehicle pursuant to the terms of the peer
  299  to-peer car-sharing program agreement.
  300         3.A peer-to-peer car-sharing program shall assume primary
  301  liability for a claim when it is providing, in whole or in part,
  302  the insurance required under paragraph (2)(a) and:
  303         a.A dispute exists as to who was in control of the shared
  304  motor vehicle at the time of the loss; and
  305         b.The peer-to-peer car-sharing program does not have
  306  available, did not retain, or fails to provide the information
  307  required under subsection (5).
  308  
  309  The shared vehicle owner’s insurer shall indemnify the peer-to
  310  peer car-sharing program to the extent of the insurer’s
  311  obligation, if any, under the applicable insurance policy if it
  312  is determined that the shared vehicle owner was in control of
  313  the shared motor vehicle at the time of the loss.
  314         (b)Exclusions in motor vehicle insurance policies.An
  315  authorized insurer that writes motor vehicle liability insurance
  316  in this state may exclude any coverage and the duty to defend or
  317  indemnify for any claim afforded under a shared vehicle owner’s
  318  motor vehicle insurance policy, including, but not limited to:
  319         1.Liability coverage for bodily injury and property
  320  damage;
  321         2.Personal injury protection coverage;
  322         3.Uninsured and underinsured motorist coverage;
  323         4.Medical payments coverage;
  324         5.Comprehensive physical damage coverage; and
  325         6.Collision physical damage coverage.
  326  
  327  This paragraph does not invalidate or limit any exclusion
  328  contained in a motor vehicle insurance policy, including any
  329  insurance policy in use or approved for use which excludes
  330  coverage for motor vehicles made available for rent, sharing, or
  331  hire or for any business use.
  332         (c)Contribution against indemnification.A shared vehicle
  333  owner’s motor vehicle insurer that defends or indemnifies a
  334  claim against a shared vehicle which is excluded under the terms
  335  of its policy has the right to seek contribution against the
  336  motor vehicle insurer of the peer-to-peer car-sharing program if
  337  the claim is made against the shared vehicle owner or the shared
  338  vehicle driver for loss or injury that occurs during the peer
  339  to-peer car-sharing period.
  340         (4)NOTIFICATION OF IMPLICATIONS OF LIEN.At the time a
  341  motor vehicle owner registers as a shared vehicle owner on a
  342  peer-to-peer car-sharing program and before the shared vehicle
  343  owner may make a shared vehicle available for peer-to-peer car
  344  sharing on the peer-to-peer car-sharing program, the peer-to
  345  peer car-sharing program must notify the shared vehicle owner
  346  that, if the shared vehicle has a lien against it, the use of
  347  the shared vehicle through a peer-to-peer car-sharing program,
  348  including the use without physical damage coverage, may violate
  349  the terms of the contract with the lienholder.
  350         (5)RECORDKEEPING.A peer-to-peer car-sharing program
  351  shall:
  352         (a)Collect and verify records pertaining to the use of a
  353  shared vehicle, including, but not limited to, the times used,
  354  fees paid by the shared vehicle driver, and revenues received by
  355  the shared vehicle owner.
  356         (b)Retain the records in paragraph (a) for a period of not
  357  less than the applicable personal injury statute of limitations.
  358         (c)Provide the information contained in the records under
  359  paragraph (a) upon request to the shared vehicle owner, the
  360  shared vehicle owner’s insurer, or the shared vehicle driver’s
  361  insurer to facilitate a claim coverage investigation.
  362         (6)CONSUMER PROTECTIONS.
  363         (a)Disclosures.Each peer-to-peer car-sharing program
  364  agreement made in this state must disclose to the shared vehicle
  365  owner and the shared vehicle driver:
  366         1.Any right of the peer-to-peer car-sharing program to
  367  seek indemnification from the shared vehicle owner or the shared
  368  vehicle driver for economic loss resulting from a breach of the
  369  terms and conditions of the peer-to-peer car-sharing program
  370  agreement.
  371         2.That a motor vehicle insurance policy issued to the
  372  shared vehicle owner for the shared vehicle or to the shared
  373  vehicle driver does not provide a defense or indemnification for
  374  any claim asserted by the peer-to-peer car-sharing program.
  375         3.That the peer-to-peer car-sharing program’s insurance
  376  coverage on the shared vehicle owner and the shared vehicle
  377  driver is in effect only during each peer-to-peer car-sharing
  378  period and that, for any use of the shared vehicle by the shared
  379  vehicle driver after the peer-to-peer car-sharing termination
  380  time, the shared vehicle driver and the shared vehicle owner may
  381  not have insurance coverage.
  382         4.The daily rate, fees, and, if applicable, any insurance
  383  or protection package costs that are charged to the shared
  384  vehicle owner or the shared vehicle driver.
  385         5.That the shared vehicle owner’s motor vehicle liability
  386  insurance may exclude coverage for a shared vehicle.
  387         6.An emergency telephone number of the personnel capable
  388  of fielding calls for roadside assistance and other customer
  389  service inquiries.
  390         7.Any conditions under which a shared vehicle driver must
  391  maintain a personal motor vehicle insurance policy with certain
  392  applicable coverage limits on a primary basis in order to book a
  393  shared vehicle.
  394         (b)Driver license verification and data retention.
  395         1.A peer-to-peer car-sharing program may not enter into a
  396  peer-to-peer car-sharing program agreement with a driver unless
  397  the driver:
  398         a.Holds a driver license issued under chapter 322 which
  399  authorizes the driver to drive vehicles of the class of the
  400  shared vehicle;
  401         b.Is a nonresident who:
  402         (I)Holds a driver license issued by the state or country
  403  of the driver’s residence which authorizes the driver in that
  404  state or country to drive vehicles of the class of the shared
  405  vehicle; and
  406         (II)Is at least the same age as that required of a
  407  resident to drive; or
  408         c.Is otherwise specifically authorized by the Department
  409  of Highway Safety and Motor Vehicles to drive vehicles of the
  410  class of the shared vehicle.
  411         2.A peer-to-peer car-sharing program shall keep a record
  412  of:
  413         a.The name and address of the shared vehicle driver;
  414         b.The driver license number of the shared vehicle driver
  415  and of any other person who will operate the shared vehicle; and
  416         c.The place of issuance of the driver license.
  417         (c)Responsibility for equipment.A peer-to-peer car
  418  sharing program has sole responsibility for any equipment that
  419  is put in or on the shared vehicle to monitor or facilitate the
  420  peer-to-peer car-sharing transaction, including a GPS system.
  421  The peer-to-peer car-sharing program shall indemnify and hold
  422  harmless the shared vehicle owner for any damage to or theft of
  423  such equipment during the peer-to-peer car-sharing period which
  424  is not caused by the shared vehicle owner. The peer-to-peer car
  425  sharing program may seek indemnity from the shared vehicle
  426  driver for any damage to or loss of such equipment which occurs
  427  outside of the peer-to-peer car-sharing period.
  428         (d)Motor vehicle safety recalls.At the time a motor
  429  vehicle owner registers as a shared vehicle owner on a peer-to
  430  peer car-sharing program and before the shared vehicle owner may
  431  make a shared vehicle available for peer-to-peer car sharing on
  432  the peer-to-peer car-sharing program, the peer-to-peer car
  433  sharing program must:
  434         1.Verify that the shared vehicle does not have any safety
  435  recalls on the vehicle for which the repairs have not been made;
  436  and
  437         2.Notify the shared vehicle owner that if the shared
  438  vehicle owner:
  439         a.Has received an actual notice of a safety recall on the
  440  vehicle, he or she may not make a vehicle available as a shared
  441  vehicle on the peer-to-peer car-sharing program until the safety
  442  recall repair has been made.
  443         b.Receives an actual notice of a safety recall on a shared
  444  vehicle while the shared vehicle is made available on the peer
  445  to-peer car-sharing program, he or she must remove the shared
  446  vehicle’s availability on the peer-to-peer car-sharing program
  447  as soon as practicable after receiving the notice of the safety
  448  recall and until the safety recall repair has been made.
  449         c.Receives an actual notice of a safety recall while the
  450  shared vehicle is in the possession of a shared vehicle driver,
  451  he or she must notify the peer-to-peer car-sharing program about
  452  the safety recall as soon as practicably possible after
  453  receiving the notice of the safety recall so that he or she may
  454  address the safety recall repair.
  455         (7)CONSTRUCTION.—This section does not limit:
  456         (a)The liability of a peer-to-peer car-sharing program for
  457  any act or omission of the peer-to-peer car-sharing program
  458  which results in the bodily injury to a person as a result of
  459  the use of a shared vehicle through peer-to-peer car sharing; or
  460         (b)The ability of a peer-to-peer car-sharing program to
  461  seek by contract indemnification from the shared vehicle owner
  462  or the shared vehicle driver for economic loss resulting from a
  463  breach of the terms and conditions of the peer-to-peer car
  464  sharing program agreement.
  465         Section 3. This act shall take effect October 1, 2020.