South Carolina S 307: Peer-to-peer Car Sharing

Bill Text

2025-2026 Bill 307 Text of Previous Version (Apr. 30, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 307

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Committee Report

April 30, 2025

S. 307

Introduced 
by Senators Climer, Kimbrell, Williams and Walker 

S. Printed 4/30/25--H.

Read the first time April 3, 2025

________

The committee on House Labor, 
Commerce and Industry

To whom was referred a Bill (S. 307) to 
amend the South Carolina Code of Laws by adding Chapter 36 to Title 56 so as to 
provide guidelines for a peer-to-peer car sharing program, to outline insurance, 
etc., respectfully

Report:

That they have duly and carefully 
considered the same, and recommend that the same do pass:

WILLIAM HERBKERSMAN for 
Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill establishes various rules 
and requirements for peer-to-peer car sharing programs, defined as business 
platforms that connect individual drivers with vehicle owners for the purpose 
of using the vehicle for financial consideration. The bill enumerates 
definitions and process requirements for the peer-to-peer programs. The bill also 
provides requirements for insurance coverage pursuant to Section 38-77-140 related 
to automobile insurance and specifies types of coverage to be held by and 
liabilities of peer-to-peer car sharing programs, shared vehicle owners, or 
shared vehicle drivers, or any combination of the applicable parties. This bill 
further provides requirements for insurance coverage pursuant to Section 
38-77-150 related to uninsured motorists. 

Furthermore, this bill establishes 
that provisions of Section 38-43-500 (limited licensing of motor vehicles 
rental companies to sell or offer insurance) and Chapter 31 of Title 56 (rental 
of private passenger automobiles) are not applicable to peer-to-peer car 
sharing. This bill states that DOI shall promulgate any regulations necessary 
to administer and enforce the provisions of the chapter. The bill takes effect upon 
approval by the Governor.

Currently, there is no specific 
legislation on peer-to-peer car sharing, but pursuant to the Department of 
Revenue's SC Private Letter Ruling #20-2, peer-to-peer short-term vehicle 
rentals are subject to sales tax. For information, at least 28 states have 
enacted car sharing regulations. Private passenger automobile rentals are currently 
governed by Chapter 31 of Title 56.

Department of Insurance. DOI 
indicates that this bill may increase workload to regulate and supervise 
automobile insurance. However, it is expected that this will be managed with 
existing staff and resources. Therefore, there is no expected expenditure 
impact for DOI.

State Revenue

This bill establishes rules and 
requirements for peer-to-peer car sharing programs, defined asbusiness 
platforms that connect individual drivers with vehicle owners for the purposes 
of usingthe vehicle for monetary consideration. The bill specifies insurance 
and liability requirements for all parties involved in a peer-to-peer car 
sharing transaction. 

According to DOI, this bill is not 
expected to materially impact automobile insurance premiums tax collections. Therefore, 
this bill will have minimal impact on state insurance premiums tax revenue. 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

_______

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING 
CHAPTER 36 TO TITLE 56 SO AS TO PROVIDE GUIDELINES FOR A PEER-TO-PEER CAR 
SHARING PROGRAM, TO OUTLINE INSURANCE AND LIABILITY PROCEDURES, AND TO PROVIDE 
DEFINITIONS.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 
1. Title 56 of the S.C. Code is amended by adding:

CHAPTER 36

Peer-to-Peer Car Sharing

 Section 
56-36-10. As used in this chapter:

 (1) 
"Car sharing delivery period" means the period of time during which a shared 
vehicle is being delivered to the location for transfer of possession of the 
shared vehicle pursuant to the agreement.

 (2) 
"Car sharing period" means the period of time from:

 (a) 
the car sharing delivery period until the car sharing termination time; or

 (b) 
if there is no car sharing delivery period, the car sharing start time until 
the car sharing termination time.

 (3) 
"Car sharing program agreement" or "agreement" means the terms and conditions 
that govern the use, duration of time, and location for transfer of possession 
of a shared vehicle through a peer-to-peer car sharing program.

 (4) 
"Car sharing start time" means the time when the shared vehicle becomes subject 
to the control of the shared vehicle driver at or after the time the 
reservation of a shared vehicle is scheduled to begin as documented in the 
records of a peer-to-peer car sharing program.

 (5) 
"Car sharing termina