BILL NUMBER: AB 1871	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jones

                        FEBRUARY 12, 2010

   An act to add Section 11580.24 to the Insurance Code, relating to
motor vehicle insurance coverage.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1871, as introduced, Jones. Motor vehicle insurance coverage:
carsharing.
   Existing law prohibits an insured motor vehicle from being
classified as a common carrier, livery, or for-hire vehicle solely
for the reason that the named insured is performing volunteer
services for a nonprofit charitable organization or governmental
agency consisting of providing social service transportation, as
defined.
   This bill would prohibit a motor vehicle from being classified for
insurance purposes as a commercial, for-hire, or permissive use
vehicle, or livery solely on the basis of it being used for
carsharing, as defined, if the revenue generated by carsharing does
not exceed the monthly expenses of operating the vehicle, including
depreciation, interest, lease payments, auto loan payments,
insurance, maintenance, and fuel, provided that motor vehicle
insurance coverage is provided by the carsharing organization for the
period when the vehicle is being used by a carsharing member who is
not the owner.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11580.24 is added to the Insurance Code, to
read:
   11580.24.  (a) No motor vehicle insured by the owner pursuant to a
policy of insurance issued under Section 11580.1 or 11580.2 shall be
classified as a commercial vehicle, for-hire vehicle, permissive use
vehicle, or livery solely on the basis of it being used for
carsharing if the revenue generated by carsharing does not exceed the
monthly expenses of operating the vehicle, including depreciation,
interest, lease payments, auto loan payments, insurance, maintenance,
and fuel, provided that motor vehicle insurance coverage is provided
by the carsharing organization for the period when the vehicle is
being used by a carsharing member than the owner.
   (b) For purposes of this section "carsharing" means privately
owned motor vehicles that are allowed to be used by other carsharing
members as part of a communal pool of motor vehicles.