BUSINESS AND COMMERCE CODE

TITLE 5. REGULATION OF BUSINESSES AND SERVICES

SUBTITLE C. BUSINESS OPERATIONS

CHAPTER 113. PEER-TO-PEER CAR SHARING PROGRAMS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 113.0001.

DEFINITIONS. In this chapter:

(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.

Added by Acts 2021, 87th Leg., R.S., Ch. 445 (H.B. 113 ),

Sec. 1, eff. September 1, 2021.

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.

Added by Acts 2021, 87th Leg., R.S., Ch. 445 (H.B. 113 ),

Sec. 1, eff. September 1, 2021.

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.

Added by Acts 2021, 87th Leg., R.S., Ch. 445 (H.B. 113 ),

Sec. 1, eff. September 1, 2021.

Sec. 113.0004. RULES. The commissioner of insurance may adopt rules necessary to implement this chapter.

Added by Acts 2021, 87th Leg., R.S., Ch. 445 (H.B. 113 ),

Sec. 1, eff. September 1, 2021.

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.

Added by Acts 2021, 87th Leg., R.S., Ch. 445 (H.B. 113 ),

Sec. 1, eff. September 1, 2021.

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.

Added by Acts 2021, 87th Leg., R.S., Ch. 445 (H.B. 113 ),

Sec. 1, eff. September 1, 2021.

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 o