76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2508
 
                           A-Engrossed
 
                         House Bill 3149
                  Ordered by the House March 15
            Including House Amendments dated March 15
 
Sponsored by Representative CANNON; Representatives DOHERTY,
  KOMP, Senator DINGFELDER
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Establishes standards for personal vehicle sharing programs.
Requires personal vehicle sharing program to provide motor
vehicle liability insurance for periods when vehicle is in use by
program.  Prohibits motor vehicle liability insurers from
cancelling policy or reclassifying use from private passenger
motor vehicle to commercial use vehicle because of vehicle's use
in personal vehicle sharing program.
 
                        A BILL FOR AN ACT
Relating to personal vehicle sharing.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 5 of this 2011 Act are added to
and made a part of the Insurance Code. + }
  SECTION 2.  { + As used in sections 2 to 5 of this 2011 Act:
  (1) 'Personal vehicle sharing' means the use of a private
passenger motor vehicle by persons other than the vehicle's
registered owner in connection with a personal vehicle sharing
program.
  (2) 'Personal vehicle sharing program' means a legal entity
qualified to do business in this state engaged in the business of
facilitating the sharing of private passenger motor vehicles for
noncommercial use by individuals within this state.
  (3) 'Private passenger motor vehicle' means a four-wheel
passenger or station wagon type motor vehicle insured under a
motor vehicle liability insurance policy covering a single
individual or individuals residing in the same household as the
named insured. + }
  SECTION 3.  { + For each vehicle that the program facilitates
the use of, a personal vehicle sharing program shall:
  (1) Provide insurance coverages for the vehicle, the designated
operator of the vehicle and any individual who operates the
vehicle with the permission of the designated operator that are
equal to or greater than the insurance coverages maintained by
the vehicle's registered owner and reported to the program, at
all times when the vehicle is engaged in personal vehicle
sharing.  However, the program may not provide liability coverage
 
that is less than three times the minimum insurance requirement
for private passenger motor vehicles.
  (2) Provide the vehicle's registered owner with a proof of
compliance with the insurance requirements of this section and
the financial or future responsibility requirements of ORS
chapter 806, a copy of which must be maintained in the vehicle by
the vehicle's registered owner at all times when the vehicle is
operated by any person other than the vehicle's registered owner
pursuant to the program.
  (3) Collect, maintain and make available to the vehicle's
registered owner, the vehicle's registered owner's primary motor
vehicle liability insurer and any government agency as required
by law, at the cost of the program, verifiable electronic records
that identify the date and 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 registered owner
pursuant to the program.
  (4) Not knowingly permit the vehicle to be operated for
commercial use by a personal vehicle sharing user while engaged
in personal vehicle sharing.
  (5) Ensure that the vehicle is a private passenger motor
vehicle.
  (6) Facilitate the installation, operation and maintenance of
signage and computer hardware and software necessary for the
vehicle to be used in the program.
  (7) Indemnify the vehicle's registered owner for the cost of
damage or theft of equipment installed under subsection (6) of
this section and any damage caused to the vehicle by the
installation, operation or maintenance of the equipment.
  (8) Provide the vehicle's registered owner and any person
operating the vehicle pursuant to the program with a disclosure
that contains information explaining the requirements of this
section. + }
  SECTION 4.  { + (1) Notwithstanding any provision in a private
passenger motor vehicle's registered owner's motor vehicle
liability insurance policy, in the event of any loss or injury
that occurs at any time when the vehicle is under the operation
and control of a person, other than the vehicle's registered
owner, pursuant to a personal vehicle sharing program, or is
otherwise under the control of a personal vehicle sharing
program, the program shall assume all liability of the vehicle
owner and shall be considered the vehicle owner for all purposes.
  (2) Nothing in subsection (1) of this section limits the
liability of a personal vehicle sharing program for any acts or
omissions by the program that result in injury to any persons as
a result of the use or operation of the program.
  (3) A personal vehicle sharing program continues to be liable
under subsection (1) of this section until:
  (a) The vehicle is returned to a location designated by the
program; and
  (b)(A) The expiration of the time period established for the
vehicle occurs;
  (B) The intent to terminate the vehicle's personal vehicle
sharing use is verifiably communicated to the program; or
  (C) The vehicle's registered owner takes possession and control
of the vehicle.
  (4)(a) A personal vehicle sharing program shall assume
liability for a claim in which a dispute exists as to who was in
control of a private passenger motor vehicle when the loss giving
rise to the claim occurred.
  (b) The insurer of the vehicle shall indemnify the program to
the extent of the insurer's obligation under the applicable motor
vehicle liability insurance policy, if it is determined that the
vehicle's registered owner was in control of the vehicle at the
time of the loss.
 
  (5) If a private passenger motor vehicle's registered owner is
named as a defendant in a civil action for any loss or injury
that occurs at any time when the vehicle is under the operation
and control of a person, other than the vehicle's registered
owner, pursuant to a personal vehicle sharing program, or is
otherwise under the control of a personal vehicle sharing
program, the program shall have the duty to defend and indemnify
the vehicle's registered owner.
  (6) Notwithstanding any provision in a private passenger motor
vehicle's registered owner's motor vehicle liability insurance
policy, while the vehicle is under the operation and control of a
person, other than the vehicle's registered owner, pursuant to a
personal vehicle sharing program, or is otherwise under the
control of a personal vehicle sharing program:
  (a) The insurer of the vehicle on file with the Department of
Transportation may exclude any and all coverage afforded under
the insurer's policy; and
  (b) A primary or excess insurer of the owners, operators or
maintainers of the vehicle may notify an insured that the insurer
has no duty to defend or indemnify any person or organization for
liability for any loss that occurs during use of the vehicle
pursuant to a personal vehicle sharing program.
  (7) A motor vehicle liability insurance policy for a private
passenger motor vehicle may not be canceled, voided, terminated,
rescinded or nonrenewed solely on the basis that the vehicle has
been made available for personal vehicle sharing pursuant to a
personal vehicle sharing program that is in compliance with the
provisions of sections 2 to 5 of this 2011 Act. + }
  SECTION 5.  { + A private passenger motor vehicle insured by
the vehicle's registered owner under a motor vehicle liability
insurance policy may not be classified as a commercial motor
vehicle, for-hire motor vehicle, permissive use motor vehicle or
livery solely because the vehicle's registered owner allows the
vehicle to be used for personal vehicle sharing if:
  (1) The personal vehicle sharing is conducted under a personal
vehicle sharing program.
  (2) The annual revenue received by the vehicle's registered
owner that was generated by the personal vehicle sharing does not
exceed the annual expenses of owning and operating the vehicle,
including depreciation, interest, lease payments, motor vehicle
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 vehicle sharing vehicle and
any fees charged by a personal vehicle sharing program. + }
  SECTION 6.  { + Sections 2 to 5 of this 2011 Act apply to
insurance policies issued or renewed on or after the effective
date of this 2011 Act. + }
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