HB 1971 Summary

• Establishes a new regulatory framework for peer-to-peer car-sharing programs in Hawaii by creating definitions and requirements for shared car owners, drivers, and platforms.

• Requires peer-to-peer car-sharing programs to collect and retain records for at least six years, including car-sharing dates/times, fees, driver/owner information, and insurance policy details.

• Mandates specific disclosures to car owners and drivers prior to agreement execution, including all costs, insurance coverage limitations, liability provisions, and conditions requiring personal insurance policies.

• Exempts peer-to-peer car-sharing platforms and shared car owners from vicarious liability based solely on vehicle ownership, consistent with federal law (49 U.S. Code § 30106).

• Subjects peer-to-peer car-sharing activity to general excise tax and rental motor vehicle surcharge tax ($5 per day increasing by $0.50 annually through 2027), with the platform responsible for collection and remittance.

• Requires peer-to-peer car-sharing programs to register with the Department of Taxation for a one-time $20 fee and verify shared cars have no unrepaired safety recalls before listing.

• Takes effect July 1, 2022.