A.R.S. tit. 28 ch. 31 — Arizona Revised Statutes Title 28 Chapter 31 — Peer-To-Peer Car Sharing

28-9601. Definitions In this chapter, unless the context otherwise requires: 1. "Car sharing delivery period" means the period of time during which a shared vehicle is being delivered to the location of the car sharing start time as documented by the governing car sharing program agreement. 2. "Car sharing period" means the period of time that begins with the car sharing delivery period or the car sharing start time if there is no car sharing delivery period and ends at the car sharing termination time. 3. "Car sharing program agreement": (a) Means the terms and conditions that apply to a shared vehicle owner and a shared vehicle driver and that govern the use of a shared vehicle through a peer-to-peer car sharing program. (b) Does not include a rental agreement as defined in section 20-331. 4. "Car sharing start time" means the time when a shared vehicle becomes subject to the control of the shared vehicle driver at or after the time that the reservation of the shared vehicle is scheduled to begin as documented in the records of a peer–to–peer car sharing program. 5. "Car sharing termination time" means the earliest of the following: (a) The agreed period of time established for the use of a shared vehicle in the governing car sharing program agreement expires and the shared vehicle is delivered to a location that is specified in the governing car sharing program agreement. (b) When the shared vehicle is returned to a location as alternatively agreed on by the shared vehicle owner and shared vehicle driver as communicated through a peer-to-peer car sharing program. (c) The shared vehicle owner or the shared vehicle owner's designee takes possession and control of the shared vehicle. 6. "Individual-owned shared vehicle" means one of the following: (a) If the shared vehicle is purchased in this state, a shared vehicle for which the owner certifies that the transaction privilege tax was paid on the purchase of the shared vehicle. (b) If the shared vehicle is not purchased in this state, a shared vehicle for which the owner certifies that the applicable sales or use tax was paid in the jurisdiction in which the shared vehicle was purchased if that jurisdiction levies a sales or use tax on the purchase of motor vehicles. (c) If the shared vehicle is not purchased in this state, a shared vehicle for which the owner certifies that the applicable use tax was paid to this state and the appropriate local jurisdiction. 7. "Peer-to-peer car sharing": (a) Means the authorized use of a shared vehicle by an individual other than the shared vehicle owner through a peer-to-peer car sharing program. (b) Does not include: (i) A rental vehicle as defined in section 20-331. (ii) The business of renting vehicles to renters under a rental agreement as defined in section 20-331. (iii) The business of renting motor vehicles without drivers that is subject to a surcharge pursuant to section 28-5810. (iv) A motor vehicle lease or rental that is subject to a surcharge pursuant to section 5-839 or 48-4234. 8. "Peer-to-peer car sharing program": (a) Means a business platform that connects vehicle owners with drivers to enable the sharing of vehicles for financial consideration. (b) Does not include: (i) A rental company as defined in section 20-331. (ii) A person or entity that is engaged in the business of renting motor vehicles without drivers and that collects a surcharge pursuant to section 28-5810. 9. "Shared vehicle": (a) Means a vehicle that is available for sharing through a peer-to-peer car sharing program. (b) Does not include a rental vehicle or vehicle as defined in section 20-331. 10. "Shared vehicle driver" means an individual who has been authorized to drive the shared vehicle by the shared vehicle owner under a car sharing program agreement. 11. "Shared vehicle owner" means the registered owner, or a person or entity designated by the registered owner, of a vehicle that is made available for sharing to shared vehicle drivers through a peer-to-peer car sharing program. 12. "Shared vehicle transaction": (a) Means the authorized use of a shared vehicle by an individual other than the shared vehicle's owner through a peer-to-peer car sharing program. (b) Does not include: (i) A rental agreement as defined in section 20-331. (ii) The business of renting motor vehicles without drivers that is subject to a surcharge pursuant to section 28-5810. (iii) The business of leasing or renting for less than one year motor vehicles for hire without a driver as described in section 5-839, subsection C if the shared vehicle is an individual-owned shared vehicle. (iv) A motor vehicle lease or rental that is subject to a surcharge pursuant to section 48-4234. 28-9602. Insurance requirements A. Except as otherwise provided in subsections B and C of this section, a peer-to-peer car sharing program shall assume the liability of a shared vehicle owner for bodily injury or property damage that occurs to a third party during the car sharing period in an amount that is stated in the car sharing program agreement and that is not less than the minimum amount of coverage required by section 28-4009. B. A peer-to-peer car sharing program is not liable for bodily injury or property damage to a third party in an amount that is more than the minimum amount of coverage required by section 28-4009 if either of the following occurs: 1. The shared vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the peer-to-peer car sharing program before the car sharing period in which the loss occurs and the bodily injury or property damage is to a third party. 2. The shared vehicle owner acts in concert with the shared vehicle driver who fails to return the shared vehicle pursuant to the car sharing program agreement. C. Notwithstanding the car sharing termination time, the assumption of liability under subsection A of this section applies to bodily injury and property damage to third parties as required by section 28-4009. D. A peer-to-peer car sharing program shall ensure that during each car sharing period the shared vehicle owner and the shared vehicle driver are insured under a motor vehicle liability insurance policy or other applicable insurance policy that provides insurance coverage in an amount not less than the minimum amount of coverage required by section 28-4009 and that either: 1. Recognizes that the vehicle insured under the policy is made available and used through a peer-to-peer car sharing program. 2. Does not exclude the use of a shared vehicle by a shared vehicle driver. E. The insurance required by this section may be satisfied by motor vehicle liability insurance that is maintained by any of the following or a combination of all of the following: 1. A shared vehicle owner. 2. A shared vehicle driver. 3. A peer-to-peer car sharing program. F. The insurance required pursuant to subsections D and E of this section is primary during each car sharing period. G. The peer-to-peer car sharing program shall assume primary liability for a claim if all of the following occur: 1. The peer-to-peer car sharing program provides the insurance required by this section in whole or in part. 2. A dispute exists as to who was in control of the shared vehicle at the time of the loss. 3. The peer-to-peer car sharing program for any reason fails to provide the information required by section 28-9605. H. If insurance is maintained by a shared vehicle owner or a shared vehicle driver pursuant to subsection E of this section and that insurance has lapsed or does not provide the required coverage: 1. Insurance that is maintained by a peer-to-peer car sharing program shall provide the coverage required by subsection D of this section beginning with the first dollar of a claim. 2. The peer-to-peer car sharing program has a duty to defend a claim except a claim to which subsection B of this section applies. I. The shared vehicle's insurer shall indemnify the peer-to-peer car sharing program to the extent of its obligation, if any, under the applicable insurance policy if it is determined that the shared vehicle owner was in control of the shared vehicle at the time of the loss. J. Coverage under a motor vehicle liability insurance policy that is maintained by a peer-to-peer car sharing program is not dependent on a motor vehicle liability insurer first denying a claim under any other motor vehicle insurance policy. K. A peer-to-peer car sharing program may not: 1. Offer or sell insurance except in conjunction with and incidental to car sharing program agreements. 2. Advertise, represent or otherwise portray itself or any of its employees or agents as licensed insurers or insurance producers, unless the peer-to-peer car sharing program is a licensed insurer or insurance producer. 3. Pay a person any compensation, fee or commission that is dependent on the placement of insurance under a peer-to-peer car sharing program's license issued pursuant to title 20. 4. Make a car sharing program agreement contingent on the shared vehicle driver purchasing insurance through the peer-to-peer car sharing program. L. Notwithstanding any other law, this chapter does not prohibit a peer-to-peer car sharing program from recovering its insurance costs incurred in satisfying its obligations pursuant to this section from a shared vehicle owner or shared vehicle driver. M. Subsection K of this section does not prohibit production payments or incentive payments to an employee if the payments are not dependent on the sale of insurance. N. This chapter does not limit either of the following: 1. The liability of the peer-to-peer car sharing program for any act or omission of the peer-to-peer car sharing program that results in injury to any person as a result of the use of a shared vehicle through a peer-to-peer car sharing program. 2. The ability of the peer-to-peer car sharing program to, by contract, seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement. 28-9603. Notice to owner of vehicle with lien After a vehicle owner registers as a shared vehicle owner on a peer-to-peer car sharing program and before the shared vehicle owner makes a shared vehicle available for car sharing on the peer-to-peer car sharing program, if there is a lien on the shared vehicle, the peer-to-peer car sharing program shall notify the shared vehicle owner of both of the following: 1. Using the shared vehicle through a peer-to-peer car sharing program might violate the terms of the shared vehicle owner's contract with the lienholder. 2. The contract with the lienholder might impose specific requirements for physical damage coverage. 28-9604. Authorized insurer exclusions A. An authorized insurer that writes motor vehicle liability insurance in this state may exclude any and all coverage and the duty to defend or indemnify any claim against a shared vehicle owner's personal motor vehicle liability insurance policy, including: 1. Bodily injury coverage. 2. Property damage coverage. 3. Uninsured motorist coverage. 4. Underinsured motorist coverage. 5. Medical payments coverage. 6. Comprehensive coverage. 7. Collision coverage. B. This chapter does not invalidate or limit an exclusion contained in a motor vehicle liability insurance policy, including an insurance policy in use or approved for use that excludes coverage for vehicles made available for rent, sharing or hire or for any business use. 28-9605. Shared vehicle records; retention A peer-to-peer car sharing program shall collect and verify records relating to the use of a shared vehicle, including times used, fees paid by the shared vehicle driver and monies received by the shared vehicle owner, and shall provide that information on request to the shared vehicle owner, the shared vehicle owner's insurer or the shared vehicle driver's insurer to facilitate a claim coverage investigation. The peer-to-peer car sharing program shall retain these records for at least six years. 28-9606. Vicarious liability exemption A peer-to-peer car sharing program and a shared vehicle owner are exempt from vicarious liability consistent with 49 United States Code section 30106 and under any state or local law that imposes liability solely based on vehicle ownership. 28-9607. Insurance claims; shared vehicles; indemnification A motor vehicle insurer that defends or indemnifies a claim involving a shared vehicle that is excluded under the terms of the motor vehicle policy may seek contribution or indemnification from the motor vehicle insurer of the peer-to-peer car sharing program if the claim is both: 1. Made against the shared vehicle owner or the shared vehicle driver for loss or injury that occurs during the car sharing period. 2. Excluded under the terms of the motor vehicle policy. 28-9608. Insurable interests A. Notwithstanding any other law, a peer-to-peer car sharing program has an insurable interest in a shared vehicle during the car sharing period. B. This section does not require a peer-to-peer car sharing program to maintain the insurance coverage required by section 28-9602. C. A peer-to-peer car sharing program may purchase and maintain as the named insured one or more motor vehicle insurance policies that provide coverage for any of the following: 1. Liabilities assumed by the peer-to-peer car sharing program under a car sharing program agreement. 2. Any liability of the shared vehicle owner. 3. Damage or loss to the shared vehicle or for any liability of the shared vehicle driver. 28-9609. Car sharing program agreement disclosures Each car sharing program agreement made in this state shall disclose the following to the shared vehicle owner and the shared vehicle driver: 1. That the peer-to-peer car sharing program has a right to seek indemnification from the shared vehicle owner or the shared vehicle driver for economic loss sustained by the peer-to-peer car sharing program resulting from a breach of the terms and conditions of the car sharing program agreement. 2. That a motor vehicle liability insurance policy issued to the shared vehicle owner for the shared vehicle or to the shared vehicle driver does not provide a defense or indemnification for any claim asserted by the peer-to-peer car sharing program. 3. That the peer-to-peer car sharing program's insurance coverage on the shared vehicle owner and the shared vehicle driver is in effect only during each car sharing period and that, for any use of the shared vehicle by the shared vehicle driver after the car sharing termination time, the shared vehicle driver and the shared vehicle owner might not have insurance coverage. 4. The daily rate, fees and insurance, if applicable, or protection package costs that are charged to the shared vehicle owner or the shared vehicle driver. 5. That the shared vehicle owner's motor vehicle liability insurance might not provide coverage for a shared vehicle. 6. An emergency telephone number for roadside assistance and other customer service inquiries. 7. Whether there are conditions that require a person to maintain a personal motor vehicle liability insurance policy with certain minimum applicable coverage limits on a primary basis in order for the person to become a shared vehicle driver. 8. That the shared vehicle owner's or the shared vehicle driver's motor vehicle liability insurance might already provide the coverage required by this chapter. 28-9610. Car sharing program agreement; licensed driver; data retention A. A peer-to-peer car sharing program may enter into a car sharing program agreement only if the driver who will operate the shared vehicle: 1. Holds a driver license issued by the department that authorizes the driver to operate the class of the shared vehicle. 2. Is a nonresident who both: (a) Has a driver license issued by the state or country of the driver's residence that authorizes the driver in that state or country to drive vehicles of the class of the shared vehicle. (b) Is at least the same age as the age required of a resident to drive vehicles of the class of the shared vehicle. 3. Otherwise is specifically authorized by the department to drive vehicles of the class of the shared vehicle. B. A peer-to-peer car sharing program shall keep a record of: 1. The name and address of each shared vehicle driver. 2. The driver license number of the shared vehicle driver. 3. The date and place of issuance of the shared vehicle driver's driver license. 28-9611. Responsibility for equipment A peer-to-peer car sharing program has sole responsibility for any equipment, including a global positioning system or other special equipment, that is put in or on a shared vehicle to monitor or facilitate the shared vehicle transaction and shall agree to indemnify and hold harmless the shared vehicle owner for any damage to or theft of the equipment during the car sharing period if the shared vehicle owner does not cause the damage or theft. The peer-to-peer car sharing program may seek indemnity from the shared vehicle driver for any loss or damage to the equipment that occurs during the car sharing period. 28-9612. Safety recalls A. After a vehicle owner becomes a shared vehicle owner on a peer-to-peer car sharing program and before the shared vehicle owner makes a shared vehicle available for peer-to-peer car sharing on the peer-to-peer car sharing program, the peer-to-peer car sharing program shall: 1. Verify that the shared vehicle does not have any safety recalls on the shared vehicle for which the repairs are not made. 2. Notify the shared vehicle owner of the requirements prescribed by subsections B, C and D of this section. B. If a vehicle owner has received an actual notice of a safety recall on the owner's vehicle, the vehicle owner may not make the vehicle available as a shared vehicle until the safety recall repair is made. C. If a shared vehicle owner receives a notice of a safety recall on the shared vehicle while the shared vehicle is made available on the peer-to-peer car sharing program, the shared vehicle owner shall remove the shared vehicle from availability on the peer-to-peer car sharing program as soon as practicable. The shared vehicle owner may not make the shared vehicle available on the peer-to-peer car sharing program until the safety recall repair is made. D. If a shared vehicle owner receives a notice of a safety recall while the shared vehicle is in the possession of a shared vehicle driver, as soon as practicable, the shared vehicle owner shall notify the peer-to-peer car sharing program about the safety recall so that the shared vehicle owner may make the safety recall repair. 28-9613. Peer-to-peer car sharing program; individual-owned shared vehicle If the shared vehicle is an individual-owned shared vehicle, a peer-to-peer car sharing program is not either of the following: 1. In the business of leasing or renting for less than one year motor vehicles for hire without a driver as described in section 5-839, subsection C. 2. Subject to the surcharge collected pursuant to section 48-4234. 28-9614. Public airports; shared vehicle transaction regulations This chapter does not prohibit or restrict a public airport from implementing rules or licensing requirements or from assessing fees or charges that apply to shared vehicle transactions that either: 1. Are conducted at the public airport. 2. Use an off-airport shuttle service provider that contracts with the public airport in order to access the shared vehicle off of the public airport premises. 28-9615. Motor vehicle manufacturers; licensed motor vehicle dealers; rights, obligations and limitations not expanded or restricted This chapter does not expand or restrict in any manner the respective rights, obligations and limitations of motor vehicle manufacturers and licensed motor vehicle dealers as set forth in chapter 10, article 5 of this title. 28-9616. Shared vehicle transactions; transaction privilege tax; exceptions; prohibition A. A shared vehicle transaction is subject to the transaction privilege tax imposed pursuant to title 42, chapters 5 and 6. B. A shared vehicle transaction is not subject to the rental vehicle surcharge established by section 28-5810. C. A shared vehicle transaction is not subject to the surcharges established by sections 5-839 and 48-4234 if the shared vehicle owner certifies to the department of revenue, on a form prescribed by the department, that the shared vehicle is an individual-owned shared vehicle. The shared vehicle owner's certification is required only once for the duration of the time that the shared vehicle owner owns the shared vehicle. The department of revenue shall verify that the vehicle is an individual-owned shared vehicle by determining whether transaction privilege or use tax was paid for the acquisition of the vehicle. D. A peer-to-peer car sharing program that accepts payment for a shared vehicle transaction in this state is subject to title 42, chapter 5 shall pay the taxes levied under title 42, chapters 5 and 6. E. A peer-to-peer car sharing program may rely in good faith on the shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the department of revenue pursuant to subsection C of this section. If the peer-to-peer car sharing program relies in good faith on the shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the department of revenue, the peer-to-peer car sharing program is not liable for any tax, penalty, fee or other sanction imposed on the shared vehicle owner. F.  Except as provided in section 28-9614 and this section, a county, city, town or political subdivision of this state may not impose any additional taxes, fees or charges on the gross proceeds or gross income of a shared vehicle transaction that is not imposed on every other transaction involving motor vehicles for hire without a driver by that jurisdiction.