The bill also requires the sharing program to ensure that each shared vehicle
owner and driver are insured under a policy that provides coverage in amounts no

less than the minimum required under Wisconsin law. That required coverage may
be provided under primary insurance maintained by the shared vehicle owner, the
shared vehicle driver, the sharing program, or any combination of those. The bill
requires that the insurer, insurers, or sharing program providing coverage must
provide primary coverage if there is a dispute about who controlled the vehicle at the
time of the loss and the program does not retain information required under the bill
or if there is a dispute about whether the vehicle was dropped off at a location
specified in the sharing agreement. Under the bill, the sharing program's insurance
must cover the loss beginning with the first dollar and has the duty to defend if the
driver's or owner's insurance has lapsed or does not provide the required coverage.
The bill gives the sharing program an insurable interest in the motor vehicle during
the period it is being shared and allows the sharing program to own and maintain
coverage specified under the bill.
The bill allows insurers writing motor vehicle insurance to exclude coverage,
including liability for bodily injury and property damage and uninsured and
underinsured motorists coverage, and to refuse to defend or indemnify for any claim
under a shared vehicle owner's policy.
The bill exempts sharing programs and shared vehicle owners from liability in
accordance with a federal law that exempts a vehicle owner who rents or leases the
vehicle from liability for harm to persons or property that results from or arises out
of the use, operation, or possession of the vehicle during the rental or lease if the
owner is engaged in the business of renting or leasing motor vehicles and there is no
negligence or criminal wrongdoing on the part of the owner. The bill also exempts
sharing programs and shared vehicle owners from state laws regarding financial
responsibility for rented vehicles and damage waivers and liability in the context of
vehicle rental agreements.
The bill requires the sharing program to verify that the shared vehicle is not
the subject of a safety recall at the time the vehicle is registered with the program.
A shared vehicle owner that receives a safety recall notice must remove the vehicle
from the program and refrain from sharing it until the repairs are made and, if the
vehicle is in the possession of a shared vehicle driver, notify the sharing program of
the recall.
The bill requires the sharing program to disclose certain information to shared
vehicle owners and drivers, including information related to insurance coverage and
the daily rates and fees, and to retain information about the sharing transactions.
Additionally, at the time a vehicle owner registers with a sharing program, the
sharing program must inform the owner of the responsibilities relating to safety
recalls and that sharing the vehicle may violate an agreement with a lienholder.
Under the bill, the sharing program has responsibility for any equipment that
is put in or on the vehicle to monitor or facilitate the sharing transaction. The
sharing program must agree to indemnify and hold harmless the owner for any
damage or theft to that equipment not caused by the owner, but has the right to seek
indemnity from the driver for such loss or damage.
Finally, the bill also specifies that sharing programs and shared vehicle owners
are not establishments primarily engaged in the short-term rental of passenger cars

for purposes of the local rental car tax and the short-term rental of vehicles for the
purposes of the state rental vehicle fee, if the applicable sales and use taxes are paid
for the purchase of the shared motor vehicle.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB386,1 1Section 1 . 77.99 of the statutes is amended to read:
SB386,3,18 277.99 Imposition. A local exposition district under subch. II of ch. 229 may
3impose a tax at the rate of 3 percent of the sales price on the rental, but not for
4rerental and not for rental as a service or repair replacement vehicle, within the
5district's jurisdiction under s. 229.43, of Type 1 automobiles, as defined in s. 340.01
6(4) (a), by establishments primarily engaged in short-term rental of passenger cars
7without drivers, for a period of 30 days or less, unless the sale is exempt from the sales
8tax under s. 77.54 (1), (4), (7) (a), (7m), (9) or (9a). If the state makes a payment under
9s. 229.50 (7) to a district's special debt service reserve fund, a majority of the district's
10authorized board of directors may vote to increase the tax rate under this subchapter
11to 4 percent. A resolution to adopt the taxes imposed under this section, or an
12increase in the tax rate, shall be effective on the first January 1, April 1, July 1, or
13October 1 following the adoption of the resolution or tax increase. For purposes of
14this section, a peer-to-peer motor vehicle sharing program, as defined in s. 632.362
15(1) (g), or a shared vehicle owner, as defined in s. 632.362 (1) (i), is not an
16establishment primarily engaged in short-term rental of passenger cars without
17drivers, if the applicable taxes under s. 77.52 or 77.53 have been paid for the purchase
18of the shared motor vehicle.
SB386,2 19Section 2 . 77.995 (2) of the statutes is amended to read:
SB386,4,13
177.995 (2) There is imposed a fee at the rate of 5 percent of the sales price on
2the rental, but not for rerental and not for rental as a service or repair replacement
3vehicle of Type 1 automobiles, as defined in s. 340.01 (4) (a); of recreational vehicles,
4as defined in s. 340.01 (48r); of motor homes, as defined in s. 340.01 (33m); and of
5camping trailers, as defined in s. 340.01 (6m) by establishments primarily engaged
6in short-term rental of vehicles without drivers, for a period of 30 days or less, unless
7the sale is exempt from the sales tax under s. 77.54 (1), (4), (7) (a), (7m) or (9a). There
8is also imposed a fee at the rate of 5 percent of the sales price on the rental of
9limousines. For purposes of this subsection, a peer-to-peer motor vehicle sharing
10program, as defined in s. 632.362 (1) (g), or a shared vehicle owner, as defined in s.
11632.362 (1) (i), is not an establishment primarily engaged in short-term rental of
12vehicles without drivers, if the applicable taxes under s. 77.52 or 77.53 have been
13paid for the purchase of the shared motor vehicle.
SB386,3 14Section 3 . 344.51 (4) of the statutes is created to read:
SB386,4,1715 344.51 (4) This section does not apply to a motor vehicle sharing agreement,
16as defined in s. 632.362 (1) (b); a peer-to-peer motor vehicle sharing program, as
17defined in s. 632.362 (1) (g); or a shared vehicle owner, as defined in s. 632.362 (1) (i).
SB386,4 18Section 4 . 344.57 (5) of the statutes is amended to read:
SB386,4,2219 344.57 (5) “Rental agreement" means a written agreement setting forth the
20terms and conditions governing the use of a private passenger vehicle provided for
21rent by a rental company. “Rental agreement” does not include a motor vehicle
22sharing agreement, as defined in s. 632.362 (1) (b).
SB386,5 23Section 5. 344.57 (6) of the statutes is amended to read:
SB386,5,224 344.57 (6) “Rental company" means a person in the business of providing
25private passenger vehicles for rent to the public. “Rental company” does not include

1a person operating a peer-to-peer motor vehicle sharing program, as defined in s.
2632.362 (1) (g), or a shared vehicle owner, as defined in s. 632.362 (1) (i).
SB386,6 3Section 6. 344.57 (7) of the statutes is amended to read:
SB386,5,64 344.57 (7) “Renter" means the person who rents a private passenger vehicle
5from a rental company under a rental agreement. “Renter” does not include a shared
6vehicle driver, as defined in s. 632.362 (1) (h).
SB386,7 7Section 7 . 344.581 of the statutes is created to read:
SB386,5,9 8344.581 Peer-to-peer motor vehicle sharing. (1) Definitions. In this
9section:
SB386,5,1110 (a) “Motor vehicle sharing agreement” has the meaning given in s. 632.362 (1)
11(b).
SB386,5,1212 (b) “Motor vehicle sharing duration” has the meaning given in s. 632.362 (1) (d).
SB386,5,1413 (c) “Peer-to-peer motor vehicle sharing program” has the meaning given in s.
14632.362 (1) (g).
SB386,5,1515 (d) “Shared vehicle driver” has the meaning given in s. 632.362 (1) (h).
SB386,5,1716 (e) Notwithstanding s. 344.01 (2) (cm), “shared vehicle owner” has the meaning
17given in s. 632.362 (1) (i).
SB386,5,21 18(2) Operator's license required. A peer-to-peer motor vehicle sharing
19program may not enter into a motor vehicle sharing agreement with an individual
20who will operate a shared motor vehicle unless the individual satisfies any of the
21following:
SB386,5,2322 (a) The individual holds an operator's license under ch. 343 that authorizes the
23individual to operate a motor vehicle of the class of the shared motor vehicle.
SB386,5,2424 (b) The individual is a nonresident of this state who satisfies all of the following:
SB386,6,3
11. The individual holds a license issued by the state or country of the
2individual's residence that authorizes the individual to operate a motor vehicle of the
3class of the shared motor vehicle in that state or country.
SB386,6,44 2. The individual has attained the age of 18.
SB386,6,14 5(3) Responsibility for certain equipment. A peer-to-peer motor vehicle
6sharing program has sole responsibility for any equipment, including a global
7positioning system or other special equipment, that is put in or on a motor vehicle
8to monitor or facilitate the motor vehicle sharing transaction. The peer-to-peer
9motor vehicle sharing program shall agree to indemnify and hold harmless the
10shared vehicle owner for any damage to or theft of equipment described under this
11subsection during the motor vehicle sharing duration that is not caused by the
12shared vehicle owner. The peer-to-peer motor vehicle sharing program has the right
13to seek indemnity from the shared vehicle driver for any loss or damage to equipment
14described under this subsection during the motor vehicle sharing duration.
SB386,6,18 15(4) Safety recalls. (a) At the time a motor vehicle owner registers as a shared
16vehicle owner through a peer-to-peer motor vehicle sharing program and before the
17shared vehicle owner makes a motor vehicle available for sharing, the peer-to-peer
18motor vehicle sharing program shall do all of the following:
SB386,6,2019 1. Verify that the shared motor vehicle is not the subject of a safety recall for
20which the repairs have not been made.
SB386,6,2221 2. Notify the shared vehicle owner of the shared vehicle owner's responsibilities
22under par. (b).
SB386,6,2423 (b) A shared vehicle owner that receives notice of a safety recall on the shared
24motor vehicle shall do all of the following, as applicable:
SB386,7,2
11. Refrain from making the motor vehicle available for sharing until the safety
2recall repair has been made.
SB386,7,63 2. If the motor vehicle has been made available for sharing before receipt of the
4notice of recall, remove the motor vehicle from the peer-to-peer motor vehicle
5sharing program as soon as practicable after receipt of the notice and until the safety
6recall repair has been made.
SB386,7,97 3. If the motor vehicle is in possession of the shared vehicle driver at the time
8of receipt of the notice of recall, notify the peer-to-peer motor vehicle sharing
9program of the recall as soon as practicable after receipt of the notice.
SB386,7,14 10(5) Record retention. For each individual who will operate a shared motor
11vehicle under a motor vehicle sharing agreement, a peer-to-peer motor vehicle
12sharing program shall keep a record of the individual's name and address, the
13individual's operator's license number, and the state or foreign country that issued
14the individual's operator's license.
SB386,8 15Section 8 . 632.362 of the statutes is created to read:
SB386,7,17 16632.362 Peer-to-peer motor vehicle sharing. (1) Definitions. In this
17section:
SB386,7,1818 (a) “Motor vehicle” has the meaning given in s. 344.01 (2) (b).
SB386,7,2219 (b) “Motor vehicle sharing agreement” means an agreement providing the
20terms and conditions, applicable to a shared vehicle driver and shared vehicle owner,
21that govern the use of a shared motor vehicle through a peer-to-peer motor vehicle
22sharing program.
SB386,8,223 (c) “Motor vehicle sharing delivery period” means the period during which a
24shared motor vehicle is being delivered to the location of the motor vehicle sharing

1initiation time, if applicable, as documented by the governing motor vehicle sharing
2agreement.
SB386,8,63 (d) “Motor vehicle sharing duration” means the period that commences with
4the motor vehicle sharing delivery period or, if there is no motor vehicle sharing
5delivery period, that commences with the motor vehicle sharing initiation time and,
6in either case, ends at the motor vehicle sharing termination time.
SB386,8,107 (e) “Motor vehicle sharing initiation time” means the time when the motor
8vehicle to be shared becomes subject to the control of the shared vehicle driver at or
9after the time the reservation of a shared motor vehicle is scheduled to begin as
10documented in the records of a peer-to-peer motor vehicle sharing program.
SB386,8,1111 (f) “Motor vehicle sharing termination time” means the earliest of the following:
SB386,8,1512 1. The expiration of the time agreed upon for the use of the shared motor vehicle
13according to the terms of the motor vehicle sharing agreement, if the shared motor
14vehicle is delivered to the location that is specified in the motor vehicle sharing
15agreement.
SB386,8,2016 2. The time the shared motor vehicle is returned by the shared vehicle driver
17to a location as alternatively agreed upon by the shared vehicle owner and shared
18vehicle driver, as communicated through a peer-to-peer motor vehicle sharing
19program, which alternatively agreed upon location shall be incorporated into the
20motor vehicle sharing agreement.
SB386,8,2221 3. The time the shared vehicle owner regains possession and control of the
22shared motor vehicle.
SB386,8,2523 (g) “Peer-to-peer motor vehicle sharing program” means a business platform
24that connects motor vehicle owners with individuals to enable the authorized use of
25a motor vehicle by an individual other than the owner for financial consideration.
SB386,9,4
1(h) “Shared vehicle driver” means an individual who is authorized to drive a
2shared motor vehicle under a motor vehicle sharing agreement through a
3peer-to-peer motor vehicle sharing program and who is not the shared vehicle
4owner.
SB386,9,75 (i) “Shared vehicle owner” means the registered owner, or a person or entity
6designated by the registered owner, of a motor vehicle that is available for sharing
7through a peer-to-peer motor vehicle sharing program.
SB386,9,13 8(2) Insurance coverage during sharing. (a) A peer-to-peer motor vehicle
9sharing program shall, except as provided in par. (b), assume liability of a shared
10vehicle owner for bodily injury or property damage to 3rd parties, or for uninsured
11and underinsured motorist or personal injury protection losses, in amounts stated
12in the motor vehicle sharing agreement that are no less than the amounts specified
13in s. 344.33 (2) during the motor vehicle sharing duration.
SB386,9,1614 (b) Notwithstanding the definition of motor vehicle sharing termination time,
15the assumption of liability under par. (a) does not apply to a shared vehicle owner
16when any of the following occurs:
SB386,9,1917 1. The shared vehicle owner makes an intentional or fraudulent material
18misrepresentation or omission to the peer-to-peer motor vehicle sharing program
19before the motor vehicle sharing duration in which the loss occurred.
SB386,9,2220 2. The shared vehicle owner acts in concert with a shared vehicle driver who
21fails to return the shared motor vehicle pursuant to the terms of a motor vehicle
22sharing agreement.
SB386,9,2423 (c) Notwithstanding the definition of motor vehicle sharing termination time,
24the assumption of liability under par. (a) applies to bodily injury, property damage,

1and uninsured and underinsured motorist or personal injury protection losses by
2damaged 3rd parties as required by s. 344.33 (2).
SB386,10,73 (d) A peer-to-peer motor vehicle sharing program shall ensure that, during
4each motor vehicle sharing duration, the shared vehicle owner and the shared
5vehicle driver are insured under a motor vehicle liability insurance policy that
6provides insurance coverage in amounts no less than the minimum amounts set forth
7in s. 344.33 (2) and that satisfies any of the following:
SB386,10,98 1. The policy recognizes that the shared motor vehicle insured under the policy
9is made available and used through a peer-to-peer motor vehicle sharing program.
SB386,10,1110 2. The policy does not exclude use of a shared motor vehicle by a shared vehicle
11driver.
SB386,10,1312 (e) The insurance requirement described under par. (d) may be satisfied by
13motor vehicle liability insurance maintained by any of the following:
SB386,10,1414 1. A shared vehicle owner.
SB386,10,1515 2. A shared vehicle driver.
SB386,10,1616 3. A peer-to-peer motor vehicle sharing program.
SB386,10,1717 4. Any combination of the persons described in subds. 1. to 3.
SB386,10,2418 (f) The coverage maintained under par. (e) that is satisfying the insurance
19requirement under par. (d) shall be primary during each motor vehicle sharing
20duration and, in the event that a claim occurs in another state with minimum
21financial responsibility limits higher than the amounts specified in s. 344.33 (2)
22during the motor vehicle sharing duration, the coverage maintained under par. (e)
23shall satisfy the difference in minimum coverage amounts, up to the applicable policy
24limits.
SB386,11,3
1(g) The insurer, insurers, or peer-to-peer motor vehicle sharing program
2providing coverage under pars. (d) and (e) shall assume primary coverage if any of
3the following applies:
SB386,11,64 1. A dispute exists as to who was in control of the shared motor vehicle at the
5time of the loss, and the peer-to-peer motor vehicle sharing program does not have
6available, does not retain, or fails to provide the information specified under sub. (9).
SB386,11,87 2. A dispute exists as to whether the shared motor vehicle was returned to an
8alternatively agreed upon location specified in the motor vehicle sharing agreement.
SB386,11,149 (h) If insurance maintained by a shared vehicle owner or shared vehicle driver
10in accordance with par. (e) has lapsed or does not provide the coverage required, then
11insurance maintained by the peer-to-peer motor vehicle sharing program shall
12provide the coverage required under par. (d) beginning with the first dollar of the
13claim and shall have the duty to defend the claim except under circumstances
14described in par. (b).
SB386,11,1815 (i) Coverage under a motor vehicle insurance policy maintained by the
16peer-to-peer motor vehicle sharing program may not be dependent on another motor
17vehicle insurer first denying a claim nor shall another motor vehicle insurance policy
18be required to first deny a claim.
SB386,11,1919 (j) Nothing in this section does any of the following:
SB386,11,2320 1. Limits the liability of a peer-to-peer motor vehicle sharing program for any
21act or omission of the peer-to-peer motor vehicle sharing program itself that results
22in injury to any person as a result of the use of a shared motor vehicle through the
23peer-to-peer motor vehicle sharing program.
SB386,12,324 2. Limits the ability of a peer-to-peer motor vehicle sharing program to seek
25indemnification, under the terms of a motor vehicle sharing agreement, from the

1shared vehicle owner or shared vehicle driver for economic loss sustained by the
2peer-to-peer motor vehicle sharing program resulting from a breach of the terms of
3the motor vehicle sharing agreement.
SB386,12,10 4(3) Insurable interest. A peer-to-peer motor vehicle sharing program shall
5have an insurable interest in a shared motor vehicle during the motor vehicle
6sharing duration. Nothing in this subsection creates liability on the peer-to-peer
7motor vehicle sharing program to maintain the coverage required under sub. (2) (d).
8The peer-to-peer motor vehicle sharing program may own and maintain as the
9named insured one or more policies of motor vehicle liability insurance that provides
10coverage for any of the following:
SB386,12,1211 (a) Liabilities to be assumed by the peer-to-peer motor vehicle sharing
12program under a motor vehicle sharing agreement.
SB386,12,1313 (b) Any liability of the shared vehicle owner.
SB386,12,1414 (c) Damage or loss to the shared motor vehicle.
SB386,12,1515 (d) Any liability of the shared vehicle driver.
SB386,12,19 16(4) Exclusions in motor vehicle liability policies. (a) An insurer that writes
17motor vehicle liability insurance in this state may exclude any coverage and may
18refuse to defend or indemnify any claim under a shared vehicle owner's liability
19policy, including any of the following coverages:
SB386,12,2020 1. Liability coverage for bodily injury and property damage.
SB386,12,2121 2. Personal injury protection.
SB386,12,2222 3. Uninsured and underinsured motorists coverage.
SB386,12,2323 4. Medical payments.
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