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HB 5951

Torts: liability; vehicle owner liability act; revise to except peer-to-peer car sharing. Amends secs. 401, 675a & 675c of 1949 PA 300 (MCL 257.401 et seq.) & adds sec. 675e.

2023-2024 Regular Session Introduced by Matt Bierlein and 3 co-sponsors

During car sharing, the P2P program assumes the vehicle owner’s liability for third‑party injuries/damages, with primary insurance covering claims and required minimums.

assigned PA 225'24
#torts:liability #transportation:other #vehicles:other
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Bill Summary · HB 5951

Summary — HB 5951 (Public Act 225 of 2024)

Amends: Michigan Vehicle Code (1949 PA 300) — sections 257.401, 257.675a, 257.675c; adds section 675e. Enacted as PA 225 of 2024. Effective date: October 17, 2025.

Purpose

HB 5951 implements part of a three‑bill package (tied to HB 5949 and HB 5950) creating a legal framework for peer‑to‑peer (P2P) car sharing in Michigan. It (1) excepts shared‑vehicle owners and P2P car sharing programs from ordinary vehicle‑owner liability during a defined “car sharing period,” and (2) adjusts vehicle‑owner presumptions and procedures for standing/parking violations when vehicles are shared.

Key provisions

  • Owner liability exception (MCL 257.401): The statutory owner‑liability rule (that owners are liable for negligent operation of their vehicle) does not apply to a “shared vehicle owner” or a “peer‑to‑peer car sharing program” during a defined car sharing period. (Definitions are in the Peer‑to‑Peer Car Sharing Program Act enacted separately.)
  • Liability allocation: The overall package requires the P2P program to assume the shared vehicle owner’s liability for third‑party bodily injury/property damage during the car sharing period, in amounts no less than state minimums (as specified in the Insurance Code).
  • Insurance rules (from companion bills): During a car sharing period, the automobile insurance that covers the owner, driver, or the P2P program must be primary, must meet Michigan financial responsibility requirements, and P2P program coverage must cover “first dollar” of claims (not contingent on denial by another insurer). The insurer or program supplying required coverage becomes primary in certain disputes (e.g., disputed control of vehicle, disputed return location).
  • Parking/standing violations (MCL 257.675a, 257.675c; new 675e): Except as provided for leased/shared vehicles, registration creates a presumption for parking/standing violations. For shared vehicles, a P2P program or owner can avoid liability for a parking/standing civil infraction by producing, within prescribed time (30 days after notice), the driver’s identity and a copy of the car sharing agreement showing the car sharing start and termination times.
  • Other companion requirements (summary from tied bills): disclosures to owners/drivers, program record retention, safety‑recall checks and notification, and responsibility for in‑vehicle monitoring equipment—these are part of the overall P2P regulatory scheme enacted across the package.

Who is affected

  • Shared vehicle owners (private owners who make vehicles available via P2P platforms)
  • P2P car sharing programs/operators
  • Drivers who rent/shared vehicles through P2P programs
  • Insurers providing automobile policies covering shared vehicles
  • Local courts/ordinance enforcement (procedural changes for issuing parking/standing violations)

Procedural / timeline

  • Introduced: Sept 26, 2024
  • Passed House: Nov 14, 2024
  • Passed Senate: Dec 19, 2024
  • Governor approved/signed: Jan 17, 2025
  • Enrolled as Public Act No. 225 (2024)
  • Effective: October 17, 2025

Fiscal impact / other effects

  • The Senate analysis notes a minor, indeterminate fiscal impact on local courts/parking bureaus because producing driver information and related steps (to transfer liability for infractions) can add processing time and may delay fine collection in some cases.

This bill is part of a three‑bill package based largely on an NCOIL model to close insurance gaps and allocate liability in peer‑to‑peer car sharing transactions.

Compiled from official sources — confirm details with the bill’s official record.

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