SF2650

Purpose of the Bill

This legislative bill aims to establish a legal framework for peer-to-peer car sharing in Minnesota. It outlines the responsibilities and liabilities associated with sharing vehicles through a peer-to-peer car sharing program and specifies insurance requirements during the car sharing period.

Main Provisions

• Definitions: Introduces and defines terms related to peer-to-peer car sharing like car sharing period, car sharing program agreement, shared motor vehicle, and shared motor vehicle driver.
• Insurance Requirements: Mandates that during a car sharing period, both the vehicle owner and driver must be covered by liability insurance. The peer-to-peer car sharing program assumes liability for damages or injuries occurring during this period unless specific exceptions apply.
• Exclusions and Coverage: Allows insurance policies to exclude coverage for vehicles involved in peer-to-peer car sharing, while the program itself must provide primary insurance coverage.
• Record Keeping: Requires programs to keep detailed records of vehicle use, including times, locations, and fees, to assist in claims or investigations.
• Indemnification: Clarifies circumstances under which a program can seek indemnification from vehicle owners or drivers for breaches of the car sharing agreement.
• Safety Requirements: Vehicle owners must ensure their cars are free of unrepaired safety recalls before participating in peer-to-peer car sharing.

Significant Changes to Existing Law

• Tax and Fee Exemption: Peer-to-peer shared vehicles are exempt from certain taxes and fees that apply to rental cars.
• Repeal of Existing Statute: The bill repeals Minnesota Statutes 2024 section 65B.49 subdivision 5a, which previously covered vehicle insurance.
• Consumer Protection and Disclosures: Requires detailed disclosures about insurance coverages, potential liabilities, and fees to both vehicle owners and drivers in the program.

Relevant Terms

• Peer-to-peer car sharing
• Insurance liability
• Car sharing period
• Shared motor vehicle
• Financial protection package
• Safety recall
• Vicarious liability