SB 2671

This bill provides that a faith-based organization that owns or leases a motor vehicle is deemed, by operation of law, to have state-backed secondary liability coverage when the vehicle is used for healthcare access, food security, disability assistance, elder care, or social services (together, a " community service use ""), including when operated by a partner 501(c)(3) nonprofit organization. Such coverage applies when (i) t he vehicle is used for a community service use, ( ii ) t he driver holds a valid driv er license, and ( iii ) t he activity is not conducted for private profit. The coverage mandated under this bill must b e administered through the risk management fund and b e for no less than, f or bodily injury, $1 million per occurrence and, for property damage, $250, 000 per occurrence. This bill provides that a faith-based organization, clergy member, or board member of a faith-based organization is not liable for injury, loss, or damage arising from a vehicle operated for a community service use unless the harm was caused by gross negligence or wi llful or reckless misconduct. A partner 501(c)(3) nonprofit organization using a church-owned vehicle for such community service use is a permitted user for purposes of the coverage and does not create additional liability exposure for the fai th-based organization. This bill prohibits a private insurance provider that receives an application for coverage from a faith-based organization, and an insurance policy issued by the private insurance provider to a faith-based organization, from (i) d eny ing coverage solely because the vehicle for which insurance is sought is or will be operated for a community service use; ( ii ) e xclud ing nonprofit organization or charitable use from coverage; or ( iii ) c ancel ing or increas ing premiums due to participation in a community service transportation program. A provision in an insurance policy issued by a private insurer to a faith-based organization that violates or conflicts with such requirements is void and unenforceable. RULEMAKING This bill requires t he department of commerce and insurance to promulgate rules to effectuate this bill . The rules must include coverage requirements, including minimum safety standards, driver eligibility, and accident reporting procedures, and a means by which faith-based organizations can apply for coverage. APPLICABILITY This bill applies to policies issued, renewed, or amended on or after July 1, 2026."