Bill Text: IA HSB102 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act providing for the regulation of delivery network companies and drivers, making penalties applicable, and including effective date provisions.
Spectrum: Committee Bill
Status: (Introduced) 2023-01-30 - Subcommittee Meeting: 01/31/2023 3:00PM RM 103, Sup. Ct. Chamber. [HSB102 Detail]
Download: Iowa-2023-HSB102-Introduced.html
House
Study
Bill
102
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
providing
for
the
regulation
of
delivery
network
1
companies
and
drivers,
making
penalties
applicable,
and
2
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
1259YC
(3)
90
th/ns
H.F.
_____
Section
1.
Section
321.518,
Code
2023,
is
amended
to
read
1
as
follows:
2
321.518
On-demand
driverless-capable
vehicle
network.
3
A
person
may
operate
an
on-demand
driverless-capable
4
vehicle
network.
An
on-demand
driverless-capable
vehicle
5
network
may
be
used
to
facilitate
the
transportation
of
persons
6
or
goods,
including
transportation
for
hire
as
defined
in
7
section
325A.1
,
and
public
transportation.
An
on-demand
8
driverless-capable
vehicle
network
may
connect
passengers
9
persons
to
driverless-capable
vehicles
either
exclusively
or
as
10
part
of
a
digital
network
that
also
connects
passengers
persons
11
to
conventional
human
drivers
who
provide
transportation
or
12
delivery
services,
consistent
with
chapter
321N
or
321P,
13
or
any
other
applicable
laws,
in
vehicles
that
are
not
14
driverless-capable
vehicles.
15
Sec.
2.
NEW
SECTION
.
321P.1
Definitions.
16
As
used
in
this
chapter:
17
1.
“Delivery
available
period”
means
the
period
when
a
18
driver
is
logged
on
to
a
digital
network
and
is
available
19
to
receive
requests
to
provide
delivery
services
but
is
not
20
providing
delivery
services
or
operating
in
the
delivery
21
service
period.
22
2.
“Delivery
network
company”
or
“company”
means
a
23
corporation,
partnership,
sole
proprietorship,
or
other
entity
24
that
operates
in
this
state
and
uses
a
digital
network
to
25
connect
a
delivery
network
company
customer
to
a
delivery
26
network
driver
to
provide
delivery
services.
A
company
is
not
27
deemed
to
control,
direct,
or
manage
a
delivery
network
driver
28
that
connects
to
its
digital
network,
or
the
driver’s
personal
29
vehicle,
except
as
agreed
to
by
the
company
and
the
driver
30
pursuant
to
a
written
contract.
31
3.
“Delivery
network
company
customer”
or
“customer”
means
a
32
person
who
uses
a
delivery
network
company’s
digital
network
to
33
request
the
delivery
of
goods.
34
4.
“Delivery
network
driver”
or
“driver”
means
an
individual
35
-1-
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H.F.
_____
who
does
all
of
the
following:
1
a.
Receives
delivery
service
requests
from
a
delivery
2
network
company’s
digital
network.
3
b.
Uses
a
personal
vehicle
to
provide
delivery
services.
4
5.
“Delivery
service”
means
the
fulfillment
of
a
delivery
5
request
by
a
driver
to
a
customer
during
the
delivery
service
6
period.
“Delivery
service”
includes
a
series
of
deliveries
made
7
by
a
driver
to
different
customers.
8
6.
“Delivery
service
period”
means
the
period
between
a
9
driver
accepting
a
request
to
deliver
goods
and
the
delivery
10
of
such
goods.
“Delivery
service
period”
begins
when
a
driver
11
starts
operating
a
personal
vehicle
en
route
to
pick
up
goods
12
for
a
delivery
or
series
of
deliveries
as
documented
by
the
13
digital
network
controlled
by
a
delivery
network
company.
14
“Delivery
service
period”
includes
the
period
during
which
the
15
driver
transports
the
requested
goods
for
delivery,
and
ends
16
upon
delivery
of
the
requested
goods
to
any
of
the
following:
17
a.
The
customer
or
the
last
customer
in
a
series
of
18
deliveries.
19
b.
A
location
designated
by
the
delivery
network
company,
20
including
for
purposes
of
returning
the
goods.
21
7.
“Digital
network”
means
an
online-enabled
application,
22
internet
site,
or
system
offered
or
utilized
by
a
delivery
23
network
company
that
enables
delivery
services.
24
8.
“Financial
liability
coverage”
means
the
same
as
defined
25
in
section
321.1,
subsection
24B.
26
9.
“Personal
vehicle”
means
a
noncommercial
motor
vehicle
27
that
is
used
by
a
delivery
network
driver
and
is
owned,
leased,
28
or
otherwise
authorized
for
use
by
the
delivery
network
driver.
29
“Personal
vehicle”
does
not
include
a
taxicab,
limousine,
or
30
other
vehicle
for
hire.
31
Sec.
3.
NEW
SECTION
.
321P.2
Interaction
with
other
law.
32
Nothing
in
this
chapter
limits
the
scope
of
federal
or
state
33
law
regarding
delivery
or
transport
of
goods.
Deliveries
made
34
under
this
chapter
that
are
subject
to
such
other
law
must
also
35
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_____
comply
with
the
requirements
of
that
law.
In
the
event
of
a
1
conflict
between
this
chapter
and
another
law
dealing
with
the
2
delivery
or
transport
of
goods,
the
other
law
prevails.
3
Sec.
4.
NEW
SECTION
.
321P.3
Financial
responsibility.
4
1.
A
delivery
network
driver,
or
a
delivery
network
company
5
on
the
driver’s
behalf,
shall
maintain
financial
liability
6
coverage
that
does
all
of
the
following:
7
a.
Recognizes
that
the
driver
is
a
delivery
network
driver
8
or
that
the
driver
otherwise
uses
a
personal
motor
vehicle
to
9
deliver
goods.
10
b.
Covers
the
driver
during
both
the
delivery
available
11
period
and
the
delivery
service
period.
12
c.
Covers
the
driver
in
the
amounts
set
forth
in
subsection
13
2.
14
2.
a.
During
the
delivery
service
period
and
delivery
15
available
period,
as
applicable,
financial
liability
coverage
16
shall
cover
the
driver
in
the
amount
of
at
least
fifty
thousand
17
dollars
for
damages
arising
out
of
bodily
injury
to
or
death
18
of
any
one
person
in
a
crash
or
collision,
at
least
one
hundred
19
thousand
dollars
for
damages
arising
out
of
bodily
injury
to
20
or
death
of
two
or
more
persons
in
a
crash
or
collision,
and
21
at
least
twenty-five
thousand
dollars
for
all
damages
arising
22
out
of
damage
to
or
destruction
of
property
in
a
crash
or
23
collision.
24
b.
The
requirements
of
paragraph
“a”
shall
be
in
addition
to
25
the
automobile
insurance
requirements
set
forth
in
chapter
516A
26
or
any
other
provision
of
law.
27
c.
The
requirements
of
paragraph
“a”
may
be
satisfied
by
any
28
of
the
following:
29
(1)
Insurance
maintained
by
the
delivery
network
driver.
30
(2)
Insurance
maintained
by
the
delivery
network
company.
31
(3)
A
combination
of
subparagraphs
(1)
and
(2).
32
3.
If
the
financial
liability
coverage
maintained
by
a
33
delivery
network
driver
under
this
chapter
lapses
or
does
34
not
provide
coverage
in
the
amounts
required
by
subsection
35
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2,
insurance
maintained
by
a
delivery
network
company
shall
1
provide
the
financial
liability
coverage
required
by
subsection
2
2
beginning
with
the
first
dollar
of
a
claim
and
the
company
3
shall
have
the
duty
to
defend
the
claim.
4
4.
Coverage
under
an
automobile
insurance
policy
maintained
5
by
a
delivery
network
company
under
this
chapter
shall
not
be
6
dependent
on
the
insurer
of
a
driver’s
personal
vehicle
first
7
denying
a
claim,
nor
shall
a
personal
automobile
insurance
8
policy
be
required
to
first
deny
a
claim.
9
5.
Insurance
maintained
under
this
chapter
shall
be
10
provided
by
an
insurer
governed
by
chapter
515,
or
by
a
surplus
11
lines
insurer
governed
by
chapter
515I.
12
6.
Insurance
maintained
under
this
chapter
shall
be
deemed
13
to
satisfy
the
financial
responsibility
requirements
for
a
14
motor
vehicle
under
chapter
321A.
15
7.
A
delivery
network
driver
shall
carry
proof
of
financial
16
liability
coverage,
as
required
by
section
321.20B,
in
the
17
amounts
required
by
subsection
2,
at
all
times
while
using
a
18
personal
vehicle
in
connection
with
a
digital
network.
In
the
19
event
of
a
crash
or
collision,
the
driver
shall
provide
proof
20
of
financial
liability
coverage
to
any
directly
interested
21
party
or
insurer,
and
to
any
investigating
law
enforcement
22
officer,
upon
request
and
in
a
format
provided
for
under
23
section
321.20B.
Upon
such
a
request,
the
driver
shall
also
24
disclose
to
any
directly
interested
party
or
insurer,
and
to
25
any
investigating
law
enforcement
officer,
whether
the
driver
26
was
operating
during
the
delivery
available
period
or
the
27
delivery
service
period
providing
delivery
services
at
the
time
28
of
the
crash
or
collision.
A
delivery
network
driver
who
fails
29
to
carry
proof
of
financial
liability
coverage
is
subject
to
30
section
321.20B.
31
Sec.
5.
NEW
SECTION
.
321P.4
Disclosure
requirements.
32
A
delivery
network
company
shall
disclose
all
of
the
33
following
to
a
delivery
network
driver
in
writing
before
the
34
driver
may
accept
a
request
from
a
customer
for
delivery
35
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services
on
the
delivery
network
company’s
digital
network:
1
1.
The
types,
amounts,
terms,
and
limits
of
automobile
2
insurance
provided
by
the
company
to
the
driver
while
the
3
driver
uses
a
personal
vehicle
in
connection
with
the
use
of
4
the
company’s
digital
network.
5
2.
That
the
driver’s
own
automobile
insurance
policy,
6
depending
on
the
policy’s
terms,
may
not
provide
any
coverage
7
during
the
delivery
available
period
and
the
delivery
service
8
period.
9
Sec.
6.
NEW
SECTION
.
321P.5
Insurers.
10
1.
a.
Notwithstanding
any
other
provision
of
law
to
the
11
contrary,
an
insurer
that
writes
automobile
insurance
within
12
this
state
may
exclude
any
and
all
coverage
afforded
to
an
13
insured
person
under
a
policy
issued
to
the
owner
or
operator
14
of
a
personal
vehicle
for
any
injury
or
loss
that
occurs
while
15
the
insured
is
logged
on
to
a
delivery
network
company’s
16
digital
network
during
the
delivery
available
period
and
17
delivery
service
period.
This
right
to
exclude
coverage
may
18
apply
to
any
type
of
coverage
provided
for
in
the
insured’s
19
policy,
including
but
not
limited
to
liability
coverage
for
20
bodily
injury,
death,
and
property
damage,
personal
injury
21
protection
coverage,
uninsured
and
underinsured
motorist
22
coverage,
medical
payments
coverage,
comprehensive
physical
23
damage
coverage,
and
collision
physical
damage
coverage.
24
b.
This
chapter
shall
not
be
construed
to
require
an
insurer
25
to
provide
coverage
to
an
individual
during
the
delivery
26
available
period
or
delivery
service
period,
or
while
otherwise
27
delivering
goods
for
compensation.
28
c.
This
chapter
shall
not
be
construed
to
preclude
an
29
insurer
from
providing
coverage
for
a
delivery
network
driver’s
30
personal
vehicle,
if
the
insurer
chooses
to
do
so
by
contract
31
or
endorsement.
32
2.
a.
An
insurer
that
excludes
coverage
pursuant
to
33
subsection
1
shall
not
have
a
duty
to
defend
or
indemnify
a
34
claim
expressly
excluded
from
a
policy
issued
by
the
insurer.
35
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This
chapter
shall
not
be
deemed
to
invalidate
or
limit
an
1
exclusion
contained
in
a
policy,
including
a
policy
in
use
or
2
approved
for
use
in
this
state
prior
to
July
1,
2024,
that
3
excludes
coverage
for
vehicles
used
for
delivery
service.
4
b.
An
insurer
that
defends
or
indemnifies
a
claim
against
5
an
insured
delivery
network
driver
that
is
excluded
under
the
6
terms
of
the
driver’s
policy
shall
have
a
right
of
action
7
for
contribution
or
indemnity
against
an
insurer
providing
8
automobile
insurance
to
the
driver
under
this
chapter
during
9
the
period
in
which
the
loss
occurred.
10
3.
The
insurer
or
insurers
of
a
delivery
network
company
11
providing
coverage
under
section
321P.3,
subsection
2,
shall
12
assume
primary
liability
for
a
claim
when
a
dispute
exists
as
13
to
when
the
delivery
available
period
began
or
ended,
when
the
14
delivery
service
period
began
or
ended,
and
when
the
delivery
15
network
company
does
not
have
available,
did
not
retain,
or
16
fails
to
provide
the
information
required
by
section
321P.3,
17
subsection
7.
18
4.
In
a
claims
coverage
investigation,
any
involved
19
delivery
network
company
and
any
insurer
providing
coverage
20
pursuant
to
this
chapter
shall
cooperate
to
facilitate
the
21
exchange
of
relevant
information
with
one
another,
and
with
22
any
insurer
of
the
delivery
network
driver,
where
applicable,
23
including
but
not
limited
to
the
precise
times
during
which
24
the
driver
began
and
ended
the
delivery
available
period
25
and
the
delivery
services
period
on
the
delivery
network
26
company’s
digital
network
in
the
twelve-hour
period
immediately
27
preceding
the
crash
or
collision
and
in
the
twelve-hour
28
period
immediately
following
the
crash
or
collision,
and
shall
29
disclose
to
one
another
a
clear
description
of
any
relevant
30
automobile
insurance
provided
pursuant
to
this
chapter,
31
including
any
applicable
limits
and
exclusions.
32
Sec.
7.
Section
325A.1,
subsections
7,
12,
and
15,
Code
33
2023,
are
amended
to
read
as
follows:
34
7.
“Motor
carrier”
means
a
person
defined
in
subsection
9,
35
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10,
11,
or
12
,
but
does
not
include
a
transportation
network
1
company
or
a
transportation
network
company
driver,
as
defined
2
in
section
321N.1
,
or
delivery
network
company
or
delivery
3
network
driver,
as
defined
in
section
321P.1
.
4
12.
“Motor
carrier
of
property”
means
a
person
engaged
in
5
the
transportation,
for
hire,
of
property
by
motor
vehicle
6
including
a
carrier
transporting
liquid
commodities
or
7
compressed
gases
in
a
vehicle
having
a
total
cargo
tank
shell
8
capacity
of
two
thousand
gallons
or
less
,
other
than
a
delivery
9
network
company
or
delivery
network
driver,
as
defined
in
10
section
321P.1
.
11
15.
“Private
carrier”
means
a
person
who
provides
12
transportation
of
property
or
passengers
by
motor
vehicle
or
13
who
transports
commodities
of
which
the
person
is
the
owner,
14
lessee,
or
bailee
and
the
transportation
is
a
furtherance
of
15
the
person’s
primary
business
or
occupation,
but
is
not
a
16
for-hire
motor
carrier
,
or
a
transportation
network
company
or
17
a
transportation
network
company
driver,
as
defined
in
section
18
321N.1
,
or
a
delivery
network
company
or
delivery
network
19
driver,
as
defined
in
section
321P.1
.
20
Sec.
8.
Section
325A.1,
subsection
10,
unnumbered
paragraph
21
1,
Code
2023,
is
amended
to
read
as
follows:
22
“Motor
carrier
of
household
goods”
means
a
person
engaged
in
23
the
transportation,
for
hire,
of
personal
effects
and
property
24
used
or
to
be
used
in
a
dwelling,
and
includes
other
than
a
25
delivery
network
company
or
delivery
network
driver,
as
defined
26
in
section
321P.1,
including
all
of
the
following:
27
Sec.
9.
Section
327D.1,
Code
2023,
is
amended
to
read
as
28
follows:
29
327D.1
Applicability
of
chapter.
30
This
chapter
applies
to
intrastate
transportation
by
31
for-hire
common
carriers
of
persons
and
property.
However,
32
this
chapter
does
not
apply
to
regular
route
motor
carriers
33
of
passengers
or
charter
carriers,
as
defined
under
34
section
325A.12
,
or
a
transportation
network
company
or
a
35
-7-
LSB
1259YC
(3)
90
th/ns
7/
10
H.F.
_____
transportation
network
company
driver,
as
defined
in
section
1
321N.1
,
or
delivery
network
company
or
a
delivery
network
2
driver,
as
defined
in
section
321P.1
.
3
Sec.
10.
EFFECTIVE
DATE.
This
Act
takes
effect
July
1,
4
2024.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
provides
for
the
regulation
of
delivery
network
9
companies
(DNCs)
and
delivery
network
drivers
(drivers).
A
10
DNC
is
an
entity
that
uses
a
digital
network
to
connect
DNC
11
customers
to
drivers
who
provide
delivery
services.
The
bill
12
provides
that
a
DNC
is
not
deemed
to
control,
direct,
or
manage
13
a
driver
that
connects
to
the
DNC’s
digital
network,
or
the
14
driver’s
personal
vehicle,
except
as
agreed
to
by
the
DNC
and
15
the
driver
pursuant
to
a
written
contract.
16
During
the
delivery
available
and
service
periods,
the
bill
17
requires
financial
liability
coverage
to
cover
the
driver
in
18
the
amount
of
at
least
$50,000
for
bodily
injury
to
or
death
19
of
one
person
in
any
one
crash
or
collision,
$100,000
for
20
bodily
injury
to
or
death
of
two
or
more
persons
in
any
one
21
crash
or
collision,
and
$25,000
for
injury
to
or
destruction
22
of
property
of
others
in
any
one
crash
or
collision.
The
23
insurance
required
by
the
bill
may
be
maintained
by
the
driver,
24
the
DNC,
or
both.
25
Under
the
bill,
if
the
financial
liability
coverage
26
maintained
by
a
driver
lapses
or
does
not
provide
coverage
in
27
the
amounts
required
by
the
bill,
insurance
maintained
by
a
28
DNC
shall
provide
the
coverage
beginning
with
the
first
dollar
29
of
a
claim,
and
the
DNC
is
required
to
defend
the
claim.
In
30
addition,
insurance
maintained
by
a
DNC
shall
not
be
dependent
31
on
the
insurer
of
a
driver’s
personal
vehicle
first
denying
a
32
claim.
33
The
financial
liability
coverage
required
by
the
bill
must
34
be
provided
by
an
insurer
governed
by
Code
chapter
515,
or
by
a
35
-8-
LSB
1259YC
(3)
90
th/ns
8/
10
H.F.
_____
surplus
lines
insurer
governed
by
Code
chapter
515I.
1
The
bill
requires
a
driver
to
carry
proof
of
financial
2
liability
coverage
at
all
times
during
which
the
driver
uses
a
3
vehicle
in
connection
with
the
use
of
a
DNC’s
digital
network.
4
In
the
event
of
a
crash
or
collision,
the
driver
must
provide
5
the
proof
of
financial
liability
coverage,
upon
request,
to
any
6
directly
interested
party
or
insurer,
and
to
any
investigating
7
police
officer.
8
The
bill
requires
a
DNC
to
disclose
to
a
driver
in
writing
9
the
types,
amounts,
terms,
and
limits
of
financial
liability
10
coverage
provided
by
the
DNC
to
the
driver
while
the
driver
11
uses
a
personal
vehicle
in
connection
with
the
use
of
the
DNC’s
12
digital
network,
and
the
fact
that
the
driver’s
own
financial
13
liability
coverage
may
not
provide
coverage
while
the
driver
is
14
logged
on
to
the
DNC’s
digital
network
or
is
providing
delivery
15
services.
16
The
bill
provides
that
an
insurer
may
exclude
coverage
17
afforded
to
an
insured
person
under
a
policy
issued
to
the
18
owner
or
operator
of
a
personal
vehicle
for
any
injury
or
19
loss
that
occurs
while
the
insured
is
logged
on
to
a
DNC’s
20
digital
network
or
while
the
insured
is
providing
delivery
21
services.
An
insurer
that
excludes
coverage
in
this
way
shall
22
not
have
a
duty
to
defend
or
indemnify
a
claim
so
excluded
from
23
a
policy
issued
by
the
insurer.
An
insurer
that
defends
or
24
indemnifies
a
claim
against
an
insured
driver
that
is
excluded
25
under
the
terms
of
the
driver’s
policy
has
a
right
of
action
26
for
contribution
or
indemnity
against
an
insurer
providing
27
financial
liability
coverage
to
the
driver
during
the
period
in
28
which
the
loss
occurred.
29
In
addition,
the
bill
provides
that
in
a
claims
coverage
30
investigation,
any
involved
DNC
and
any
insurer
potentially
31
providing
coverage
must
cooperate
to
facilitate
the
exchange
32
of
relevant
information
with
parties
directly
involved
in
the
33
claim.
34
The
bill
exempts
drivers
from
Code
chapters
325A
(motor
35
-9-
LSB
1259YC
(3)
90
th/ns
9/
10
H.F.
_____
carrier
authority)
and
327D
(regulation
of
carriers).
1
Under
current
law,
a
person
who
violates
provisions
relating
2
to
proof
of
financial
liability
coverage
(Code
section
3
321.20B),
including
a
driver
under
the
bill,
is
subject
to
a
4
scheduled
fine
of
$325,
or
$645
if
the
person
was
involved
in
5
an
accident,
among
other
consequences.
There
are
no
penalties
6
set
forth
in
the
bill
for
DNCs
that
violate
the
provisions
of
7
the
bill.
8
Code
chapter
321N
regulates
transportation
network
companies
9
and
restricts
certain
persons
from
being
eligible
to
operate
10
as
a
transportation
network
company
driver.
A
driver
is
not
11
subject
to
the
same
exclusions
while
performing
delivery
12
services.
13
The
bill
takes
effect
July
1,
2024.
14
-10-
LSB
1259YC
(3)
90
th/ns
10/
10