BILL NUMBER: AB 1871	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 10, 2010
	AMENDED IN ASSEMBLY  JUNE 1, 2010
	AMENDED IN ASSEMBLY  MAY 11, 2010
	AMENDED IN ASSEMBLY  APRIL 28, 2010

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 amended, Jones. Motor vehicle insurance coverage:
personal vehicle sharing.
   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 private passenger 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 personal vehicle sharing, as defined, if the annual revenue
received by the motor vehicle's owner that is generated by personal
vehicle sharing does not exceed the annual expenses of owning and
operating the vehicle, including, but not limited to, depreciation,
interest, lease payments, auto loan payments, insurance, maintenance,
parking, and fuel, and the personal vehicle sharing is conducted
pursuant to a personal vehicle sharing program.
   The bill would define a personal vehicle sharing program as a
legal entity qualified to do business in the state that facilitates
personal vehicle sharing, as specified. The bill would require a
personal vehicle sharing program, among other things, during all
times that the vehicle is engaged in personal vehicle sharing, to
provide insurance coverage, as specified, and collect, maintain, and
make available to the vehicle owner and the vehicle owner's primary
automobile liability insurer verifiable electronic records
identifying the date, time, initial and final locations of the
vehicle, and miles driven when it is being used as part of the
personal vehicle sharing program. The bill would limit the
circumstances under which the motor vehicle owner's liability
insurance can be subject to liability, and require that automobile
insurance policies not be canceled, voided, terminated, rescinded, or
nonrenewed solely on the basis that the motor vehicle has been made
available for personal vehicle sharing. The bill would authorize the
insurer of the vehicle to exclude any and all coverage afforded under
the vehicle owner's automobile insurance policy while the vehicle is
used by a person other than the owner as part of a personal vehicle
sharing program.
   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.  The Legislature finds and declares all of the
following:
   (a) It is the intent of the Legislature, in enacting this bill,
that during the time when owners of motor vehicles make their
vehicles available to, and those vehicles are under the operation and
control of, a personal vehicle sharing program's member, if an
incident, accident, or occurrence happens that gives rise to any
liability, the vehicle's owner and the private passenger automobile
insurer that insures the vehicle and its owner shall be held harmless
with no obligation to defend or indemnify the motor vehicle's owner.

   (b) It is the further intent of the Legislature that a personal
vehicle sharing program maintain sufficient insurance coverage to
cover any loss arising out of the use of a privately owned passenger
vehicle during the time when the vehicle is under the operation and
control of the personal vehicle sharing program and, at those times
the personal vehicle sharing program shall stand in the place of the
vehicle owner or the vehicle owner's private passenger automobile
insurer.
  SEC. 2.  Section 11580.24 is added to the Insurance Code, to read:
   11580.24.  (a) No private passenger motor vehicle insured by its
owner pursuant to a policy of insurance subject to Section 11580.1 or
11580.2 shall be classified as a commercial vehicle, for-hire
vehicle, permissive use vehicle, or livery solely because its owner
allows it to be used for personal vehicle sharing as long as all of
the following circumstances apply:
   (1) The personal vehicle sharing is conducted pursuant to a
personal vehicle sharing program.
   (2) The annual revenue received by the motor vehicle's owner which
was generated by the personal vehicle sharing of the vehicle does
not exceed the annual expenses of owning and operating the vehicle,
including depreciation, interest, lease payments, auto loan payments,
insurance, maintenance, parking, fuel, cleaning, automobile repair,
and costs associated with personal vehicle sharing, including, but
not limited to, the installation, operation, and maintenance of
computer hardware and software, signage identifying the vehicle as a
personal sharing vehicle, and any fees charged by a personal vehicle
sharing program.
   (b) For purposes of this section the following definitions apply:
   (1) "Personal vehicle sharing" means the use of private passenger
motor vehicles by persons other than the vehicle's owner, in
connection with a personal vehicle sharing program.
   (2) "Personal vehicle sharing program" means a legal entity
qualified to do business in the State of California engaged in the
business of facilitating the sharing of private passenger vehicles
for noncommercial use by individuals within the state.
   (c) A personal vehicle sharing program shall, for each private
passenger vehicle that it facilitates the use of, do all of the
following:
   (1) During all times that the vehicle is engaged in personal
vehicle sharing, provide insurance coverage for the vehicle that is
equal to or greater than the insurance coverages maintained by the
vehicle owner and reported to the personal vehicle sharing program,
but in no event, provide coverage less than three times the minimum
insurance requirements for private passenger vehicles with respect to
liability and uninsured motorist coverage, and provide coverage
equal to or greater than the medical payment coverage and the
physical damage coverage, including collision and comprehensive
coverage, maintained by the vehicle owner and reported to the
personal vehicle sharing program.
   (2) Provide the registered owner of the vehicle with a Department
of Motor Vehicles Form REG 5085 or other suitable proof of compliance
with the insurance requirements of this section and the requirements
of the California Financial Responsibility Law in Section 1656.2 of
the Vehicle Code, a copy of which shall be maintained in the vehicle
by the vehicle's registered owner during any time when the vehicle is
operated by any person other than the vehicle's owner pursuant to a
vehicle sharing program.
   (3) Collect, maintain, and make available to the vehicle owner,
the vehicle owner's primary automobile liability insurer on file with
the Department of Motor Vehicles, and to any other government agency
as required by law, at the cost of the personal vehicle program,
verifiable electronic records that identify the date, time, initial
and final locations of the vehicle, and miles driven when the vehicle
is under the control of a person other than the vehicle's owner
pursuant to a personal vehicle sharing program.
   (4) Provide the vehicle's owner and any person that operates the
vehicle pursuant to a personal vehicle sharing program with a
disclosure that contains information explaining the terms and
conditions contained in this section.
   (d) Notwithstanding any other provision of law or any provision in
a motor vehicle owner's automobile insurance policy, in the event of
a loss or injury that occurs during any time period when the vehicle
is under the operation and control of a person, other than the
vehicle owner, pursuant to a personal vehicle sharing program
 as determined pursuant to paragraph (3) of subdivision (c)
 , the personal vehicle sharing program shall be considered
the owner of the vehicle for the purpose of Section 17151 of the
Vehicle Code and any losses shall be borne solely by the personal
vehicle sharing program.
   (e) Notwithstanding any other provision of law or any provision in
a motor vehicle owner's automobile insurance policy, while a private
passenger motor vehicle is used by a person other than its owner
pursuant to personal vehicle sharing facilitated through a personal
vehicle sharing program, the insurer of that vehicle on file with the
Department of Motor Vehicles may exclude any and all coverage
afforded pursuant its policy.
   (f) No policy of insurance that is subject to Section 11580.1 or
11580.2 shall be canceled, voided, terminated, rescinded, or
nonrenewed solely on the basis that the private passenger motor
vehicle has been made available for personal vehicle sharing pursuant
to a personal vehicle sharing program.