Enacts the "personal motor vehicle sharing act"

4 Co-sponsors

• Neil D. Breslin
• William J. Larkin Jr.
• Kathleen A. Marchione
• Marc Panepinto

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 traffic 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 rather 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. Technologies 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 platform can achieve the same goals as building a new transportation network with little or no additional physical 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 vehicles 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 insurance coverage and motor vehicle oversight needed to protect both consumers 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.