Bill Text: IA HF2414 | 2015-2016 | 86th General Assembly | Enrolled
Bill Title: A bill for an act providing for the regulation of transportation network companies and taxicabs, providing penalties, and including effective date and applicability provisions. Effective 1-1-17.
Spectrum: Committee Bill
Status: (Passed) 2016-05-09 - Signed by Governor. H.J. 999. [HF2414 Detail]
Download: Iowa-2015-HF2414-Enrolled.html
House File 2414 - Enrolled
HOUSE FILE
BY COMMITTEE ON COMMERCE
(SUCCESSOR TO HF 2219)
\5
A BILL FOR
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House File 2414
AN ACT
PROVIDING FOR THE REGULATION OF TRANSPORTATION NETWORK
COMPANIES AND TAXICABS, PROVIDING PENALTIES, AND INCLUDING
EFFECTIVE DATE AND APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 321.1, subsection 8, Code 2016, is
amended by adding the following new paragraphs:
NEW PARAGRAPH. j. A transportation network company driver,
as defined in section 321N.1, is not a chauffeur.
NEW PARAGRAPH. k. A person operating a taxicab having
a seating capacity of less than seven passengers and not
operating on a regular route or between specified points is not
a chauffeur.
Sec. 2. Section 321.40, Code 2016, is amended by adding the
following new subsection:
NEW SUBSECTION. 6A. a. The department or the county
treasurer shall refuse to renew the registration of a vehicle
registered to an applicant if the department or the county
treasurer knows that the applicant has not paid a civil penalty
imposed on the applicant pursuant to section 321N.3, subsection
3. An applicant may contest this action by requesting a
contested case proceeding from the department. The department
shall notify the county treasurers through the distributed
teleprocessing network of persons who have not paid such civil
penalties.
b. The county treasurer of the county of an applicant's
residence and in which the applicant's vehicle is registered,
in cooperation with the department, may collect a civil penalty
imposed on the applicant pursuant to section 321N.3, subsection
3, when the applicant applies for renewal of a vehicle
registration. The applicant may remit full payment of the
civil penalty, along with a processing fee of five dollars, to
the county treasurer at the time of registration renewal. Upon
full payment of the civil penalty, the processing fee, and the
vehicle registration fee, the county treasurer shall issue the
registration to the applicant. A county treasurer collecting
a civil penalty on behalf of the department pursuant to this
subsection shall update the vehicle registration records
through the distributed teleprocessing network on a daily basis
for all applicants who have paid civil penalties pursuant to
this subsection. A county treasurer shall forward all funds
collected on behalf of the department to the department.
Sec. 3. Section 321.236, subsection 7, Code 2016, is amended
to read as follows:
7. Licensing and regulating the operation of vehicles
offered to the public for hire and used principally in
intracity operation, except to the extent such licensure and
regulation conflicts with section 321.241, section 321N.11,
section 325A.6, or any other provision of the Code.
Sec. 4. NEW SECTION. 321.241 Regulation of taxicabs by
local authorities ==== limits.
1. A local authority shall not enact, enforce, or maintain
any ordinance, regulation, or rule that imposes a requirement
on a person operating a taxicab having a seating capacity of
less than seven passengers and not operating on a regular route
or between specified points that is more restrictive than any
of the following:
a. Requiring the person to have a driver's license valid
for the operation of the motor vehicle used as a taxicab that
is not an instruction permit, special instruction permit, or
temporary restricted license.
b. Prohibiting the person from operating the taxicab if any
of the following apply:
(1) The person is restricted to operating motor vehicles
equipped with an ignition interlock device.
(2) The person's driving privileges have been suspended,
revoked, barred, canceled, denied, or disqualified in the prior
three=year period.
(3) The person has been convicted of more than three moving
violations in the prior three=year period.
(4) The person has been convicted of violating section
321.218, 321.277, or 321J.21, or section 321A.32, subsection 1,
in the prior three=year period.
(5) The person has been convicted in the prior seven=year
period of a felony, of violating section 321J.2 or 321J.2A, or
of any crime involving resisting law enforcement, dishonesty,
injury to another person, damage to the property of another
person, or operating a vehicle in a manner that endangers
another person.
(6) The person is registered on the national sex offender
registry.
2. A local authority shall not enact, enforce, or maintain
any ordinance, regulation, or rule that requires a corporation,
partnership, sole proprietorship, or other entity that
sells or offers for sale transportation by taxicabs having
a seating capacity of less than seven passengers and not
operating on a regular route or between specified points to
maintain a physical place of business in the local authority's
jurisdiction as a condition of operating such taxicabs in the
local authority's jurisdiction.
Sec. 5. Section 321.446, subsection 4, paragraph c, Code
2016, is amended to read as follows:
c. If a child under fourteen years of age, or a child
fourteen years of age or older who is unable to fasten a
seatbelt due to a temporary or permanent disability, is being
transported in a taxicab or in a personal vehicle operated by a
transportation network company driver, as defined in section
321N.1, in a manner that is not in compliance with subsection 1
or 2, the parent, legal guardian, or other responsible adult
traveling with the child shall be served with a citation for
a violation of this section in lieu of the taxicab operator
or transportation network company driver. Otherwise, if a
passenger being transported in the taxicab or in a personal
vehicle operated by a transportation network company driver is
fourteen years of age or older, the citation shall be served on
the passenger in lieu of the taxicab operator or transportation
network company driver.
Sec. 6. NEW SECTION. 321N.1 Definitions.
As used in this chapter, unless the context otherwise
requires:
1. "Department" means the state department of
transportation.
2. "Digital network" means an online=enabled application,
internet site, or system offered or utilized by a
transportation network company that enables transportation
network company riders to prearrange rides with transportation
network company drivers.
3. "Personal vehicle" means a noncommercial motor vehicle
that is used by a transportation network company driver and
is owned, leased, or otherwise authorized for use by the
transportation network company driver. "Personal vehicle" does
not include a taxicab, limousine, or other vehicle for hire.
4. "Prearranged ride" means the provision of transportation
by a transportation network company driver to a transportation
network company rider. A prearranged ride begins when a driver
accepts a ride request from a rider through a digital network
controlled by a transportation network company, continues while
the driver transports the requesting rider, and ends when
the last requesting rider departs from the driver's personal
vehicle. A prearranged ride does not include transportation
provided using a taxicab, limousine, or other vehicle for hire,
or a shared expense carpool or vanpool arrangement.
5. "Transportation network company" or "company" means a
corporation, partnership, sole proprietorship, or other entity
that operates in this state and uses a digital network to
connect transportation network company riders to transportation
network company drivers who provide prearranged rides. A
transportation network company is not deemed to control,
direct, or manage a transportation network company driver that
connects to its digital network, or the driver's personal
vehicle, except as agreed to by the company and the driver
pursuant to a written contract.
6. "Transportation network company driver" or "driver" means
an individual who does all of the following:
a. Receives connections to potential transportation network
company riders and other related services from a transportation
network company in exchange for payment of a fee to the
transportation network company.
b. Uses a personal vehicle to offer or provide prearranged
rides to transportation network company riders upon connection
through a digital network controlled by a transportation
network company in return for compensation or payment of a fee.
7. "Transportation network company rider" or "rider"
means an individual or group of individuals who use a
transportation network company's digital network to connect
with a transportation network company driver to request a
prearranged ride for the individual or group of individuals,
and who receive the prearranged ride in the driver's personal
vehicle between locations chosen by the individual or group of
individuals.
Sec. 7. NEW SECTION. 321N.2 Permit required ==== examination
of records ==== sanctions.
1. A transportation network company shall not operate or
conduct business in this state without a permit issued pursuant
to this section.
2. a. Upon the filing of an application by a transportation
network company with the department and a determination by
the department that the company is in compliance with the
provisions of this chapter, the department shall issue a permit
to the company. An application filed pursuant to this section
shall be in writing and shall contain all of the following:
(1) The full legal name and tax identification number of the
applicant.
(2) The address of the applicant's principal place of
business.
(3) A statement agreeing to comply with all applicable
requirements of this chapter signed by the applicant.
(4) Proof of compliance with the financial responsibility
requirements of section 321N.4, submitted in a manner
prescribed by the department.
(5) Proof that the applicant has established a zero
tolerance policy for the use of drugs and alcohol as provided
in section 321N.3, submitted in a manner prescribed by the
department.
(6) Proof that the applicant requires personal vehicles to
comply with applicable motor vehicle equipment requirements as
provided in section 321N.3, submitted in a manner prescribed
by the department.
(7) Proof that the applicant has adopted and is enforcing
nondiscrimination and accessibility policies, submitted in a
manner prescribed by the department.
(8) Proof that the applicant has established record
retention guidelines, submitted in a manner prescribed by the
department, that comply with all of the following:
(a) A record of a prearranged ride shall be retained for
at least six years after the date the prearranged ride was
provided, unless the company is notified that the record
is material to a judicial proceeding, in which case the
record shall be retained for at least two years after final
disposition of the judicial proceeding.
(b) A record of a transportation network company driver
shall be retained for at least six years after the date
on which the driver's activation on the company's digital
network ended, unless the company is notified that the record
is material to a judicial proceeding, in which case the
record shall be retained for at least two years after final
disposition of the judicial proceeding.
b. The permit application shall be accompanied by a fee of
five thousand dollars. All fees received by the department for
permits issued pursuant to this section shall be paid monthly
to the treasurer of state and deposited in the road use tax
fund.
3. A permit issued pursuant to this section shall be valid
for one year after the date of issuance.
4. The department may deny issuance of a permit if the
department determines, and evidence demonstrates, that the
applicant is not in compliance or is unable to comply with the
provisions of this chapter.
5. The department may examine the records of a
transportation network company for the purpose of enforcing
this chapter. The examination may include a random sample
of the company's records related to transportation network
company drivers and prearranged rides. The examination shall
take place at the department's motor vehicle division building
unless another location is agreed to by the department and
the company. Such examinations shall not occur more than
twice per year unless additional examinations are necessary to
investigate a complaint. Records obtained by the department
pursuant to this subsection are not public records or otherwise
subject to disclosure under chapter 22, and shall be kept
confidential by the department except to the extent such
records may be required to be disclosed in a departmental or
judicial proceeding.
6. The department may suspend the permit of a transportation
network company for a violation of this chapter or a rule
adopted under this chapter until the company demonstrates to
the department that the company is in compliance with the
applicable requirements. The department may revoke the permit
of a transportation network company for continued noncompliance
with this chapter or a rule adopted under this chapter.
7. A transportation network company whose application for a
permit has been denied, or whose permit has been suspended or
revoked, shall have all rights afforded to the company under
chapter 17A and rules adopted by the department to contest the
department's decision.
8. The department may adopt rules pursuant to chapter 17A to
administer this section.
Sec. 8. NEW SECTION. 321N.3 Exclusions ==== driver
requirements.
1. A transportation network company, a transportation
network company driver, or a personal vehicle used to provide a
prearranged ride is not a motor carrier as defined in section
325A.1, private carrier as defined in section 325A.1, charter
carrier as defined in section 325A.12, or common carrier.
2. Prior to permitting an individual to act as a
transportation network company driver on a transportation
network company's digital network, the company shall do all of
the following:
a. Require the individual to submit an application to the
company with the individual's name, address, and age, and with
copies of the individual's driver's license, the registration
for the personal vehicle the individual will use to provide
prearranged rides, proof of financial liability coverage,
as defined in section 321.1, subsection 24B, covering the
individual's use of the personal vehicle, proof of financial
responsibility covering the individual in the types and amounts
required by section 321N.4, and any other information required
by the company.
b. Conduct, or instruct a third party to conduct, a local
and national criminal background check on the individual and a
search of the national sex offender registry database for the
individual.
c. Obtain and review a driving history research report on
the individual.
d. Obtain a disclosure form signed by the individual
notifying the individual of all of the following:
(1) If a lien exists against a personal vehicle the
individual intends to use while acting as a transportation
network company driver, the individual is required to notify
the lienholder within the seven=day period prior to using the
vehicle for such purposes that the individual intends to use
the vehicle for such purposes.
(2) If the individual is not the owner of the personal
vehicle the individual intends to use while acting as a
transportation network company driver, the individual is
required to notify the owner of the vehicle within the
seven=day period prior to using the vehicle for such purposes
that the individual intends to use the vehicle for such
purposes and that the owner's automobile insurance policy,
depending on the policy's terms, may not provide any coverage
while the individual is logged on to the company's digital
network and is available to receive requests for a prearranged
ride, or while the individual is engaged in a prearranged ride.
(3) Failure to notify a lienholder or an owner pursuant to
this paragraph "d" shall result in the imposition of a civil
penalty as provided in subsection 3.
3. If an individual fails to notify a lienholder or an owner
pursuant to subsection 2, the department shall assess a civil
penalty against the individual in the amount of two hundred
fifty dollars. All moneys collected by the department pursuant
to this subsection shall be paid monthly to the treasurer of
state and deposited in the road use tax fund.
4. A transportation network company shall not knowingly
allow an individual to act as a driver on the company's digital
network if any of the following apply:
a. The individual does not have a driver's license valid
for the operation of the personal vehicle. A driver's license
valid for the operation of the personal vehicle shall not
include an instruction permit, special instruction permit, or
temporary restricted license.
b. The individual is restricted to operating motor vehicles
equipped with an ignition interlock device.
c. The individual's driving privileges have been suspended,
revoked, barred, canceled, denied, or disqualified in the prior
three=year period.
d. The individual has been convicted of more than three
moving violations in the prior three=year period.
e. The individual has been convicted of violating section
321.218, 321.277, or 321J.21, or section 321A.32, subsection 1,
in the prior three=year period.
f. The individual has been convicted in the prior seven=year
period of a felony, of violating section 321J.2 or 321J.2A, or
of any crime involving resisting law enforcement, dishonesty,
injury to another person, damage to the property of another
person, or operating a vehicle in a manner that endangers
another person.
g. The individual is registered on the national sex offender
registry.
h. The individual is not at least nineteen years of age.
i. The individual is unable to provide any information
required by this section.
5. A transportation network company shall adopt and enforce
a zero tolerance policy prohibiting the use of drugs or
alcohol by a transportation network company driver while the
driver is providing a prearranged ride or is logged on to the
company's digital network and available to receive requests
for transportation from potential riders. The policy shall
include provisions providing for the investigation of alleged
violations of the policy and the suspension of drivers under
investigation.
6. A transportation network company shall require that a
personal vehicle used to provide prearranged rides shall comply
with all applicable motor vehicle equipment requirements.
Sec. 9. NEW SECTION. 321N.4 Financial responsibility.
1. A transportation network company driver, or a
transportation network company on the driver's behalf, shall
maintain primary automobile insurance that does all of the
following:
a. Recognizes that the driver is a transportation network
company driver or that the driver otherwise uses a motor
vehicle to transport passengers for compensation.
b. Covers the driver while the driver is logged on to the
transportation network company's digital network and while the
driver is engaged in a prearranged ride.
c. Covers the driver in the amounts set forth in subsections
2 and 3.
2. a. While a participating transportation network company
driver is logged on to a transportation network company's
digital network and is available to receive requests for a
prearranged ride, but is not engaged in a prearranged ride,
primary automobile insurance maintained pursuant to paragraph
"c" shall cover the driver in the amount of at least fifty
thousand dollars because of bodily injury to or death of one
person in any one accident, the amount of at least one hundred
thousand dollars because of bodily injury to or death of two
or more persons in any one accident, and the amount of at
least twenty=five thousand dollars because of injury to or
destruction of property of others in any one accident.
b. The requirements of paragraph "a" shall be in addition to
the automobile insurance requirements set forth in chapter 516A
or any other provision of law.
c. The requirements of paragraph "a" may be satisfied by any
of the following:
(1) Insurance maintained by the transportation network
company driver.
(2) Insurance maintained by the transportation network
company.
(3) A combination of subparagraphs (1) and (2).
3. a. While a transportation network company driver is
engaged in a prearranged ride, primary automobile insurance
maintained pursuant to paragraph "c" shall cover the driver in
the amount of at least one million dollars because of bodily
injury to or death of one or more persons and injury to or
destruction of property of others in any one accident.
b. The requirements of paragraph "a" shall be in addition to
the automobile insurance requirements set forth in chapter 516A
or any other provision of law.
c. The requirements of paragraph "a" may be satisfied by any
of the following:
(1) Insurance maintained by the transportation network
company driver.
(2) Insurance maintained by the transportation network
company.
(3) A combination of subparagraphs (1) and (2).
4. If insurance maintained by a transportation network
company driver under this chapter lapses or does not provide
coverage in the amounts required by subsections 2 and 3,
insurance maintained by a transportation network company shall
provide coverage in the amounts required by subsections 2 and
3 beginning with the first dollar of a claim, and the company
shall have a duty to defend the claim.
5. Coverage under an automobile insurance policy maintained
by a transportation network company under this chapter
shall not be dependent on the insurer of a driver's personal
vehicle first denying a claim, nor shall a personal automobile
insurance policy be required to first deny a claim.
6. Insurance maintained under this chapter shall be
provided by an insurer governed by chapter 515 or 518, or by
a surplus lines insurer governed by chapter 515I. A surplus
lines insurer that issues a policy pursuant to this section
shall be considered an insurance carrier duly authorized to
transact business in this state for the purposes of chapter
321A.
7. Insurance maintained under this chapter shall be deemed
to satisfy the financial responsibility requirements for a
motor vehicle under chapter 321A.
8. A transportation network company driver shall carry
proof of financial liability coverage, as required by section
321.20B, in the amounts required by subsections 2 and 3, at
all times during which the driver uses a motor vehicle in
connection with the use of a transportation network company's
digital network. In the event of an accident, the driver
shall provide proof of financial liability coverage to any
directly interested party or insurer, and to any investigating
police officer, upon request and in a format provided for under
section 321.20B. Upon such a request, the driver shall also
disclose to any directly interested party or insurer, and
to any investigating police officer, whether the driver was
logged on to a company's digital network or was providing a
prearranged ride at the time of the accident.
Sec. 10. NEW SECTION. 321N.5 Disclosure requirements.
A transportation network company shall disclose all of the
following information to a transportation network company
driver in writing before the driver may accept a request from a
rider for a prearranged ride on the company's digital network:
1. The types, amounts, terms, and limits of automobile
insurance provided by the company to the driver while the
driver uses a personal vehicle in connection with the use of
the company's digital network.
2. That the driver's own automobile insurance policy,
depending on the policy's terms, may not provide any coverage
while the driver is logged on to the company's digital network
and is available to receive requests for a prearranged ride, or
while the driver is engaged in a prearranged ride.
Sec. 11. NEW SECTION. 321N.6 Insurers.
1. a. Notwithstanding any other provision of law to the
contrary, an insurer that writes automobile insurance within
this state may exclude any and all coverage afforded to an
insured person under a policy issued to the owner or operator
of a personal vehicle for any injury or loss that occurs while
the insured is logged on to a transportation network company's
digital network or while the insured is providing a prearranged
ride. This right to exclude coverage may apply to any type
of coverage provided for in the insured's policy, including
but not limited to liability coverage for bodily injury and
property damage, personal injury protection coverage, uninsured
and underinsured motorist coverage, medical payments coverage,
comprehensive physical damage coverage, and collision physical
damage coverage.
b. This chapter shall not be construed to require an
insurer to provide coverage to an individual while the
individual is logged on to a company's digital network, is
engaged in a prearranged ride, or is otherwise transporting
another individual or group of individuals in a vehicle for
compensation.
c. This chapter shall not be construed to preclude an
insurer from providing coverage for a transportation network
company driver's personal vehicle, if the insurer chooses to do
so by contract or endorsement.
2. a. An insurer that excludes coverage pursuant to
subsection 1 shall not have a duty to defend or indemnify a
claim expressly excluded from a policy issued by the insurer.
This chapter shall not be deemed to invalidate or limit an
exclusion contained in a policy, including a policy in use or
approved for use in this state prior to the effective date of
this Act, that excludes coverage for vehicles used to carry
individuals or property for compensation or vehicles available
for hire by the public.
b. An insurer that defends or indemnifies a claim against an
insured transportation network company driver that is excluded
under the terms of the driver's policy shall have a right
of action for contribution or indemnity against an insurer
providing automobile insurance to the driver under this chapter
during the period in which the loss occurred.
3. In a claims coverage investigation, any involved
transportation network company and any insurer providing
coverage pursuant to this chapter shall cooperate to facilitate
the exchange of relevant information with one another, and with
any insurer of the transportation network company driver, where
applicable, including but not limited to the precise times
during which the driver logged on and off of the company's
digital network in the twelve=hour period immediately preceding
and in the twelve=hour period immediately following the
accident, and shall disclose to one another a clear description
of any relevant automobile insurance provided pursuant to this
chapter, including any applicable limits and exclusions.
Sec. 12. NEW SECTION. 321N.7 Identification of drivers and
vehicles.
Before a transportation network company rider enters the
personal vehicle of a transportation network company driver,
the transportation network company shall disclose all of the
following information to the rider on the company's digital
network:
1. A picture that prominently displays the face of the
driver.
2. The make, model, and registration plate number of the
personal vehicle used by the driver.
Sec. 13. NEW SECTION. 321N.8 Electronic receipt.
Within a reasonable period of time following the completion
of a prearranged ride provided to a transportation network
company rider, the transportation network company shall
transmit an electronic receipt to the rider containing all of
the following information:
1. The origin and destination of the trip.
2. The total time and distance of the trip.
3. An itemized account of the total fare paid by the rider,
if any.
Sec. 14. NEW SECTION. 321N.9 Street hails prohibited.
A transportation network company driver shall not solicit or
accept riders hailing the driver from the street.
Sec. 15. NEW SECTION. 321N.10 Disclosure of personal
information.
1. A transportation network company shall not disclose a
transportation network company rider's personal information to
a third party unless the rider consents to the disclosure, the
disclosure is required by law, the disclosure is required to
protect or defend the terms of use of the company's services,
or the disclosure is required to investigate a violation of
the terms of use. For purposes of this section, "personal
information" includes but is not limited to the rider's name,
home address, telephone number, and payment information.
2. Notwithstanding subsection 1, a transportation network
company may disclose a rider's name and telephone number to the
driver providing a prearranged ride to the rider in order to
facilitate the identification of the rider by the driver, or to
facilitate communication between the rider and the driver.
Sec. 16. NEW SECTION. 321N.11 Regulation by political
subdivisions prohibited ==== exception.
1. a. Except as otherwise provided in this section,
transportation network companies, transportation network
company drivers, and personal vehicles, in the course of their
operation pursuant to this chapter, shall be exclusively
controlled, supervised, and regulated by the department in
accordance with this chapter.
b. Except as otherwise provided in this section, no
provision of this chapter shall be construed to authorize
a political subdivision of the state to enact an ordinance
regulating transportation network companies, transportation
network company drivers, or personal vehicles operated pursuant
to this chapter.
2. No provision of this chapter shall be construed to limit
the rights and powers of a commercial service airport, as
defined in 49 U.S.C. {47102, to do any of the following:
a. Regulate the operation of motor vehicles on the airport's
premises in accordance with rules, regulations, and policies
adopted for the orderly use of the airport.
b. Establish, alter, and collect rates, fees, rental
payments, or other charges for the use of the airport's
services and facilities.
Sec. 17. Section 325A.1, subsections 6, 7, and 13, Code
2016, are amended to read as follows:
6. "Motor carrier" means a person defined in subsection
8, 9, or 10, but does not include a transportation network
company or a transportation network company driver, as defined
in section 321N.1.
7. "Motor carrier certificate" means a certificate issued
by the department to any person transporting passengers on any
highway of this state for hire, other than a transportation
network company or a transportation network company driver, as
defined in section 321N.1. This certificate is transferable.
13. "Private carrier" means a person who provides
transportation of property or passengers by motor vehicle,
is not a for=hire motor carrier or a transportation network
company or a transportation network company driver, as defined
in section 321N.1, or who transports commodities of which the
person is the owner, lessee, or bailee and the transportation
is a furtherance of the person's primary business or
occupation.
Sec. 18. Section 325A.2, subsection 2, Code 2016, is amended
to read as follows:
2. A local authority, as defined in section 321.1, shall
not impose any regulations, including special registration or
inspection requirements, upon the operation of motor carriers
that are more restrictive than any of the provisions of this
chapter, or section 321.449 or 321.450. This subsection does
not, however, prohibit a local authority from exercising the
home rule power of the local authority to impose additional
or more restrictive regulations or requirements upon the
operation of taxicabs or limousines engaged in nonfixed route
transportation for hire, except to the extent such regulations
or requirements conflict with section 321.241, section 325A.6,
or any other provision of the Code.
Sec. 19. Section 325A.6, Code 2016, is amended to read as
follows:
325A.6 Insurance.
1. All Except as provided in subsection 2, all motor
carriers subject to this chapter shall have minimum insurance
coverage which meets the limits established in the federal
motor carrier safety regulations in 49 C.F.R. pt. 387.
2. All motor vehicles providing taxicab services, having
a seating capacity of less than seven passengers, and not
operating on a regular route or between specified points shall
maintain primary automobile insurance in the amount of at least
one million dollars because of bodily injury to or death of
one or more persons and injury to or destruction of property
of others in any one accident. A political subdivision of the
state shall not enact an ordinance requiring insurance coverage
for such vehicles in an amount different than the amount
required by this subsection.
Sec. 20. Section 325A.11, Code 2016, is amended to read as
follows:
325A.11 Passenger transportation.
In addition to the requirements of subchapter 1, motor
carriers of passengers and charter carriers shall comply with
the requirements of this subchapter. A transportation network
company or a transportation network company driver, as defined
in section 321N.1, need not comply with the requirements of
subchapter 1 or this subchapter.
Sec. 21. Section 325A.12, subsection 3, Code 2016, is
amended by adding the following new paragraph:
NEW PARAGRAPH. e. A transportation network company or a
transportation network company driver, as defined in section
321N.1.
Sec. 22. Section 327D.1, Code 2016, is amended to read as
follows:
327D.1 Applicability of chapter.
This chapter applies to intrastate transportation by
for=hire common carriers of persons and property. However,
this chapter does not apply to regular route motor carriers
of passengers or charter carriers, as defined under
section 325A.12, or a transportation network company or a
transportation network company driver, as defined in section
321N.1.
Sec. 23. LOCAL ORDINANCES VOID ==== VALIDITY OF
PROCEEDINGS. On January 1, 2017, all local ordinances,
regulations, and rules not consistent with this Act are
void. However, this Act shall not affect the validity of any
proceeding brought or punishment imposed prior to January 1,
2017, for a violation of such a local ordinance, regulation,
or rule.
Sec. 24. EFFECTIVE DATE. This Act takes effect January 1,
2017.
Sec. 25. APPLICABILITY OF INSURANCE PROVISIONS.
The section of this Act enacting section 321N.4 shall apply on
and after the date of approval of the form filings necessary
to implement section 321N.4 by the commissioner of insurance
as required under 191 IAC 20.4.
LINDA UPMEYER
Speaker of the House
PAM JOCHUM
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2414, Eighty=sixth General Assembly.
CARMINE BOAL
Chief Clerk of the House
Approved , 2016
TERRY E. BRANSTAD
Governor
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