Add Art 35 SS3501 - 3504, Ins L; amd SS311, 312, 312-a & 313, V & T L
Enacts the "personal motor vehicle sharing act", to establish insurance requirements for and limitations on programs providing for the sharing of private passenger motor vehicles.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7926
SPONSOR: Hevesi TITLE OF BILL:
An act to amend the insurance law and the vehicle and traffic law, in
relation to enacting the "personal motor vehicle sharing act"
PURPOSE:
The purpose of this legislation is to provide insurance coverage for
vehicle owners and renters participating in a personal vehicle sharing
program.
SUMMARY OF PROVISIONS:
Section 1 provides that this act shall be known as the "Personal Motor
Vehicle Sharing Act."
Section 2 creates a new Article 35 in the Insurance Law entitled
Personal Motor Vehicle Sharing Programs. Section 3 amends the vehicle
and traffic law by adding a new paragraph (e) to subdivision 4 of
section 311
Section 4 amends the vehicle and traffic law by renumbering subdivisions
2, 3, 4, and 5 of section 312 as subdivisions 3, 4, 5, and 6, and adding
a new subdivision 2.
Section 5 amends subdivision 1 of section 312-a of the vehicle and traf-
fic law.
Section 6 amends paragraphs (a) and (b) of subdivision 2 of section 313
of the vehicle and traffic law.
Section 7 provides that consent orders agreed to by the Department of
Financial Services are deemed fulfilled and expired as of the effective
date.
Section 8 is the effective date.
JUSTIFICATION:
Public policy that nurtures the sharing economy can be an important
catalyst of future economic development and growth. Economic progress
is often driven by marshaling available resources more efficiently rath-
er than simply creating new resources. And history has taught us that
when technological progress leads to more efficient production, such
technologies will always have a positive overall economic impact. Tech-
nologies and platforms which facilitate better use of assets we already
have will lead to growth that is sustainable, and create value that is
income equalizing.
Peer-to-peer marketplaces like those created by cars sharing programs
add tremendous value to our existing asset base. Creating a widespread
car-sharing or ride-sharing platform can achieve the same goals as
building a new transportation network with little or no additional phys-
ical resource utilization, and in a manner that lowers a population's
average ecological footprint.
This bill would amend the law to provide the necessary authority to
peer-to-peer car sharing companies to purchase group insurance for the
car sharing program thereby providing insurance coverage for the vehi-
cles enrolled in the program during the periods in which those vehicles
are being rented and in the control of the peer-to-peer car sharing
program. Furthermore, this bill would provide for the necessary insur-
ance coverage and motor vehicle oversight needed to protect both consum-
ers and vehicle owners so that peer-to-peer car sharing companies may
operate in the state of New York.
LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Immediately.
