H.F. _____ Section 1. NEW SECTION . 321N.1 Purpose. 1 The purpose of this chapter is to ensure the safety, 2 reliability, and cost-effectiveness of transportation network 3 company services within this state and to preserve and enhance 4 access to this important transportation option for residents 5 and visitors to the state. 6 Sec. 2. NEW SECTION . 321N.2 Definitions. 7 As used in this chapter, unless the context otherwise 8 requires: 9 1. “Department” means the state department of 10 transportation. 11 2. “Transportation network company” or “company” means 12 an entity licensed under this chapter and operating in this 13 state that uses a digital network or software application 14 service to connect passengers to transportation network company 15 drivers providing transportation network company services. A 16 transportation network company is not required to own, control, 17 operate, or manage the motor vehicles used by transportation 18 network company drivers. 19 3. “Transportation network company driver” or “driver” means 20 a person who operates a motor vehicle that is owned, leased, 21 or otherwise authorized for use by the person to provide 22 transportation network company services. 23 4. “Transportation network company services” or “services” 24 means transportation of a passenger between points chosen by 25 the passenger and prearranged with a transportation network 26 company driver through the use of a digital network or software 27 application service maintained by a transportation network 28 company. “Transportation network company services” begin when 29 a transportation network company driver accepts a request for 30 transportation from a passenger sent through a digital network 31 or software application service maintained by a transportation 32 network company, continue during the time period in which the 33 transportation network company driver transports the passenger 34 in a motor vehicle, and end when the passenger exits the motor 35 -1- LSB 1589YC (3) 86 ns/nh 1/ 13

H.F. _____ vehicle. 1 Sec. 3. NEW SECTION . 321N.3 Other carriers —— exclusion. 2 A transportation network company, a transportation 3 network company driver, or a motor vehicle used to provide 4 transportation network company services is not a motor carrier 5 as defined in section 325A.1, private carrier as defined in 6 section 325A.1, charter carrier as defined in section 325A.12, 7 common carrier, or taxicab service. 8 Sec. 4. NEW SECTION . 321N.4 Permit required. 9 1. A person shall not operate a transportation network 10 company in this state without having obtained a permit from the 11 department. 12 2. The department shall issue a permit to operate a 13 transportation network company to each applicant that 14 meets the requirements of this chapter and pays an annual 15 permit fee of five thousand dollars to the department. Fees 16 received pursuant to this subsection shall be retained as 17 repayment receipts by the department and shall be used for the 18 administration of this chapter. 19 Sec. 5. NEW SECTION . 321N.5 Agent. 20 A transportation network company shall maintain an agent in 21 this state for service of process. 22 Sec. 6. NEW SECTION . 321N.6 Identification of vehicles and 23 drivers. 24 Before a passenger enters the motor vehicle of a 25 transportation network company driver, the company shall 26 disclose all of the following information to the passenger on 27 the company’s internet site or within the company’s software 28 application service: 29 1. A picture that prominently displays the face of the 30 driver. 31 2. The registration plate number of the motor vehicle 32 operated by the driver. 33 Sec. 7. NEW SECTION . 321N.7 Fare for services. 34 A transportation network company may charge a fare for the 35 -2- LSB 1589YC (3) 86 ns/nh 2/ 13

H.F. _____ services provided to a passenger if the company discloses all 1 of the following information to the passenger on the company’s 2 internet site or within the company’s software application 3 service: 4 1. The calculation method for the fare. 5 2. The applicable rates and fees to be charged to the 6 passenger. 7 3. The option for the passenger to receive an estimated 8 fare before the passenger enters a motor vehicle operated by a 9 transportation network company driver. 10 Sec. 8. NEW SECTION . 321N.8 Electronic receipt. 11 Within a reasonable period of time following the completion 12 of services provided to a passenger, the transportation network 13 company shall transmit an electronic receipt to the passenger 14 containing all of the following information: 15 1. The origin and destination of the trip. 16 2. The total time and distance of the trip. 17 3. An itemized account of the total fare paid by the 18 passenger, if any. 19 Sec. 9. NEW SECTION . 321N.9 Insurance requirements. 20 1. a. For the period of time in which a transportation 21 network company driver is logged on to a transportation network 22 company’s digital network or software application service 23 and is available to receive requests for transportation from 24 passengers, but is not providing transportation network company 25 services, the company shall maintain financial liability 26 coverage in amounts greater than or equal to those stated in 27 section 321A.1, subsection 11. 28 b. The financial liability coverage required by paragraph 29 “a” shall cover the transportation network company driver in the 30 event that the driver’s financial liability coverage does not 31 provide coverage to the driver during the period of time stated 32 in paragraph “a” , or does not provide coverage in the amounts 33 required by paragraph “a” . 34 2. a. For the period of time in which a transportation 35 -3- LSB 1589YC (3) 86 ns/nh 3/ 13

H.F. _____ network company driver is providing transportation network 1 company services, the transportation network company or the 2 driver shall maintain financial liability coverage in the 3 amount of one million dollars for death, bodily injury, or 4 property damage. 5 b. The financial liability coverage shall explicitly 6 recognize that the coverage applies to a driver providing 7 transportation network company services. 8 c. The amount of financial liability coverage required by 9 paragraph “a” may be satisfied by a combination of insurance 10 policies maintained by the transportation network company and 11 the transportation network company driver. 12 3. Where the financial liability coverage maintained by a 13 driver to satisfy the requirements of this section lapses, is 14 canceled, fails to provide coverage, denies a claim, or ceases 15 to exist for any reason, the motor vehicle liability policy of 16 the transportation network company shall maintain the financial 17 liability coverage required by this section beginning with the 18 first dollar of a claim. 19 4. A financial liability coverage required by this section 20 shall be issued by an insurer licensed under section 522B.6, 21 subsection 2, paragraph “d” , or section 522B.6, subsection 2, 22 paragraph “g” . 23 5. a. An insurer licensed under chapter 522B shall 24 disclose, in a prominent place on the policy, whether or not 25 the policy provides coverage for a motor vehicle while the 26 vehicle is being used to provide transportation network company 27 services. 28 b. An insurer licensed under chapter 522B may exclude 29 coverage, including but not limited to liability coverage for 30 bodily injury or property damage, uninsured and underinsured 31 motorist coverage, medical payments coverage, comprehensive 32 physical damage coverage, or collision physical damage 33 coverage, for claims resulting from, or arising out of, the 34 insured motor vehicle being used to provide transportation 35 -4- LSB 1589YC (3) 86 ns/nh 4/ 13

H.F. _____ network company services, provided such exclusion is explicitly 1 set forth in the motor vehicle liability policy, and the 2 insurer or its agent discloses the language of the exclusion 3 in writing to the insured during the application process for 4 the policy. 5 c. If such an exclusion is explicitly set forth in the motor 6 vehicle liability policy, the insurer shall not have a duty to 7 indemnify or defend the insured against claims resulting from, 8 or arising out of, use of the insured motor vehicle to provide 9 transportation network company services, provided the insurer 10 complies with chapter 507B. 11 6. During a claims investigation, a transportation network 12 company and its insurer shall cooperate with the parties to the 13 claim to facilitate the exchange of information, including but 14 not limited to the time periods in which the driver was logged 15 on to the company’s digital network or software application 16 service in the twenty-four-hour period immediately preceding 17 the accident, and the terms, conditions, and exclusions of 18 the applicable financial liability coverage maintained by the 19 company. 20 Sec. 10. NEW SECTION . 321N.10 Disclosure requirements. 21 1. A transportation network company shall disclose all of 22 the following information to a transportation network company 23 driver in writing before the driver may accept a request from a 24 passenger for transportation network company services: 25 a. The amounts and terms of financial liability coverage 26 provided by the company to the driver while the driver operates 27 a motor vehicle in connection with the company’s digital 28 network or software application service. 29 b. That the driver’s personal motor vehicle liability policy 30 may not provide coverage when the driver operates a motor 31 vehicle in connection with the company’s digital network or 32 software application service. 33 Sec. 11. NEW SECTION . 321N.11 Drug and alcohol use 34 prohibited. 35 -5- LSB 1589YC (3) 86 ns/nh 5/ 13

H.F. _____ 1. A transportation network company shall adopt a policy 1 prohibiting the use of drugs or alcohol by a transportation 2 network company driver while the driver is providing services 3 or is logged on to the company’s digital network or software 4 application service and available to receive requests for 5 transportation from potential passengers. The company shall 6 display this policy on its internet site. The policy shall 7 include a procedure by which a passenger can submit a complaint 8 against a driver with whom the passenger was matched by 9 the company if the passenger reasonably suspects the driver 10 was under the influence of drugs or alcohol while providing 11 services to the passenger. 12 2. Upon receipt of a passenger complaint alleging a 13 violation of the drug and alcohol policy, the company shall 14 immediately suspend the driver’s access to the company’s 15 digital network or software application service and shall 16 conduct an investigation into the reported incident. The 17 suspension shall last for the duration of the investigation. 18 3. A transportation network company shall maintain all 19 records relevant to a complaint received pursuant to this 20 section for at least two years from the date the passenger 21 complaint was received by the company. 22 Sec. 12. NEW SECTION . 321N.12 Driver requirements. 23 1. Prior to permitting a person to act as a transportation 24 network company driver on a transportation network company’s 25 digital network or software application service, the company 26 shall do all of the following: 27 a. Require the person to submit an application to the 28 company, including the person’s address and age, and including 29 copies of the person’s driver’s license, driving history, motor 30 vehicle registration, proof of financial liability coverage, 31 and any other information required by the company. 32 b. Conduct, or instruct a third party to conduct, a local 33 and national criminal background check, including a report from 34 a national commercial criminal record database with validation, 35 -6- LSB 1589YC (3) 86 ns/nh 6/ 13

H.F. _____ and a report from the national sex offender registry database. 1 c. Obtain and review a driving history research report on 2 the person. 3 2. A transportation network company shall not permit a 4 person to act as a driver on the company’s digital network or 5 software application service if any of the following apply: 6 a. The person has had more than three moving violations in 7 the prior three-year period. 8 b. The person has been convicted in the prior three-year 9 period of violating section 321.218, 321.277, 321.279, or 10 321J.21, or of any other moving violation punishable by more 11 than a scheduled fine. 12 c. The person has been convicted in the prior seven-year 13 period of violating section 321J.2 or 321J.2A, or any crime 14 involving fraud, a sexual offense, use of a motor vehicle to 15 commit a felony, property damage, theft, an act of violence, or 16 an act of terror. 17 d. The person is registered on the national sex offender 18 registry database. 19 e. The person does not possess a valid Iowa driver’s 20 license. 21 f. The person does not possess proof of an Iowa registration 22 for the motor vehicle used to provide transportation network 23 company services. 24 g. The person does not possess proof of financial liability 25 coverage for the motor vehicle used to provide transportation 26 network company services. 27 h. The person is not at least nineteen years of age. 28 Sec. 13. NEW SECTION . 321N.13 Street hails prohibited. 29 A transportation network company driver shall only accept 30 passengers who booked services through the company’s digital 31 network or software application service, and shall not solicit 32 or accept passengers hailing the driver from the street. 33 Sec. 14. NEW SECTION . 321N.14 Cash payments prohibited. 34 A transportation network company shall adopt a policy 35 -7- LSB 1589YC (3) 86 ns/nh 7/ 13

H.F. _____ prohibiting the solicitation or acceptance of cash payments 1 from passengers and shall notify drivers of the policy. 2 A driver shall not solicit or accept cash payments from 3 passengers. Any payment for services shall be made 4 electronically using the company’s digital network or software 5 application service. 6 Sec. 15. NEW SECTION . 321N.15 Discrimination prohibited 7 —— accessibility. 8 1. A transportation network company shall adopt a policy 9 prohibiting discrimination against passengers and potential 10 passengers on the basis of race, color, national origin, 11 religious belief or affiliation, sex, sexual orientation or 12 identity, disability, or age, and shall notify drivers of the 13 policy. 14 2. A driver shall comply with all applicable laws 15 prohibiting discrimination against passengers and potential 16 passengers on the basis of race, color, national origin, 17 religious belief or affiliation, sex, sexual orientation or 18 identity, disability, or age. 19 3. A driver shall comply with all applicable laws relating 20 to accommodation of service dogs and assistive animals, 21 including but not limited to the requirements of section 22 216C.11. 23 4. A company shall not impose an additional charge for 24 providing services to a passenger with a physical disability 25 if the charge is imposed because of the passenger’s physical 26 disability. 27 5. A company shall provide a passenger the opportunity to 28 indicate whether the passenger requires a wheelchair-accessible 29 motor vehicle as part of the passenger’s request for 30 transportation. If the company cannot, under any 31 circumstances, arrange a wheelchair-accessible motor vehicle 32 to provide the passenger with services, the company shall 33 provide the contact information of an alternate provider of 34 wheelchair-accessible transportation, if available. 35 -8- LSB 1589YC (3) 86 ns/nh 8/ 13

H.F. _____ Sec. 16. NEW SECTION . 321N.16 Records. 1 A transportation network company shall maintain the records 2 of each instance of services provided to a passenger for at 3 least one year from the date the services were provided. A 4 company shall maintain the records of each of its drivers for 5 at least one year from the date a driver’s activation on the 6 company’s digital network or software application service has 7 ended. 8 Sec. 17. NEW SECTION . 321N.17 Disclosure of personal 9 information. 10 1. A transportation network company shall not disclose 11 a passenger’s personal information to a third party unless 12 the passenger consents to the disclosure, the disclosure is 13 required by law, the disclosure is required to protect or 14 defend the terms of use of the company’s services, or the 15 disclosure is required to investigate a violation of the terms 16 of use. For purposes of this section, “personal information” 17 includes but is not limited to the passenger’s name, home 18 address, telephone number, and payment information. 19 2. Notwithstanding subsection 1, a transportation network 20 company may disclose a passenger’s name and telephone number 21 to the driver providing services to the passenger in order to 22 facilitate the identification of the passenger by the driver, 23 or to facilitate communication between the passenger and the 24 driver. 25 Sec. 18. NEW SECTION . 321N.18 Authority and rulemaking —— 26 local tax prohibited. 27 1. The department shall adopt rules to administer this 28 chapter. 29 2. Notwithstanding any provision to the contrary, 30 transportation network companies and drivers are governed 31 exclusively by this chapter and rules promulgated by the 32 department consistent with this chapter. A county, city, or 33 other municipality of this state shall not impose a tax on, 34 or require a license for, a transportation network company or 35 -9- LSB 1589YC (3) 86 ns/nh 9/ 13

H.F. _____ driver, or subject a transportation network company or driver 1 to any local rate, entry, or operational requirements, or any 2 other requirements. 3 Sec. 19. Section 321.1, subsection 8, Code 2015, is amended 4 by adding the following new paragraph: 5 NEW PARAGRAPH . j. A transportation network company driver, 6 as defined in section 321N.2, is not a chauffeur. 7 Sec. 20. Section 325A.1, subsections 6, 7, and 13, Code 8 2015, are amended to read as follows: 9 6. “Motor carrier” means a person defined in subsection 8, 10 9, or 10 but does not include a transportation network company 11 or a transportation network company driver, as defined in 12 section 321N.2 . 13 7. “Motor carrier certificate” means a certificate issued 14 by the department to any person transporting passengers on any 15 highway of this state for hire , other than a transportation 16 network company or a transportation network company driver, as 17 defined in section 321N.2 . This certificate is transferable. 18 13. “Private carrier” means a person who provides 19 transportation of property or passengers by motor vehicle, 20 is not a for-hire motor carrier or a transportation network 21 company or a transportation network company driver, as defined 22 in section 321N.2 , or who transports commodities of which the 23 person is the owner, lessee, or bailee and the transportation 24 is a furtherance of the person’s primary business or 25 occupation. 26 Sec. 21. Section 325A.11, Code 2015, is amended to read as 27 follows: 28 325A.11 Passenger transportation. 29 In addition to the requirements of subchapter 1 , motor 30 carriers of passengers and charter carriers shall comply with 31 the requirements of this subchapter . A transportation network 32 company or a transportation network company driver, as defined 33 in section 321N.2, need not comply with the requirements of 34 subchapter 1 or 2. 35 -10- LSB 1589YC (3) 86 ns/nh 10/ 13

H.F. _____ Sec. 22. Section 325A.12, subsection 3, Code 2015, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . e. A transportation network company or a 3 transportation network company driver, as defined in section 4 321N.2. 5 Sec. 23. Section 327D.1, Code 2015, is amended to read as 6 follows: 7 327D.1 Applicability of chapter. 8 This chapter applies to intrastate transportation by 9 for-hire common carriers of persons and property. However, 10 this chapter does not apply to regular route motor carriers 11 of passengers or charter carriers, as defined under 12 section 325A.12 , or a transportation network company or a 13 transportation network company driver, as defined in section 14 321N.2 . 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill provides for the regulation of transportation 19 network companies (TNCs). 20 The bill defines “transportation network company” as an 21 entity that uses a digital network or software application 22 service to connect passengers to TNC drivers providing TNC 23 services. The bill provides that a TNC is not required to 24 own, control, operate, or manage the motor vehicles used 25 by TNC drivers. The bill further defines “department”, 26 “transportation network company driver”, and “transportation 27 network company services”. 28 The bill provides that TNCs, TNC drivers, and motor vehicles 29 used to provide TNC services are not motor carriers, private 30 carriers, charter carriers, common carriers, or taxicab 31 services. 32 The bill requires a TNC to obtain a permit from the 33 department of transportation (DOT). To obtain a permit, an 34 applicant must meet the requirements of the bill and pay a 35 -11- LSB 1589YC (3) 86 ns/nh 11/ 13

H.F. _____ $5,000 annual fee, which is to be used by the department for 1 the administration of the bill. The bill also requires TNCs to 2 maintain an agent in the state, and provide passengers with an 3 image of the driver, the license plate number of the driver, 4 the calculation method for the fare, the option of receiving an 5 estimated fare, and an electronic receipt. 6 The bill further requires TNCs and TNC drivers to 7 maintain certain amounts of insurance coverage under certain 8 circumstances, including $1 million in death, bodily injury, 9 and property damage coverage while the driver is providing 10 TNC services. The bill provides for the means of satisfying 11 the insurance requirements and details specifications for the 12 terms, exclusions, and disclosure requirements of insurance 13 policies with regard to motor vehicles providing TNC services. 14 During the investigation of a claim, the bill requires TNCs 15 and insurers to cooperate with the parties to the claim to 16 facilitate the exchange of information. 17 The bill requires TNCs to adopt a policy prohibiting the use 18 of drugs or alcohol by a driver while the driver is providing 19 services or is logged on to the company’s digital network or 20 software application service and available to receive requests 21 for transportation from potential passengers. The policy 22 must include a procedure by which a passenger can submit a 23 complaint against a driver with whom the passenger was matched 24 by the company if the passenger reasonably suspects the driver 25 was under the influence of drugs or alcohol while providing 26 services to the passenger. Upon receipt of a passenger 27 complaint alleging a violation of the drug and alcohol policy, 28 the company shall immediately suspend the driver’s access to 29 the company’s digital network or software application service 30 and shall conduct an investigation into the reported incident. 31 The bill provides for certain requirements for drivers. 32 Drivers must be 19 years of age, possess a valid Iowa driver’s 33 license, possess proof of Iowa registration, and possess 34 proof of financial liability coverage. Drivers must not 35 -12- LSB 1589YC (3) 86 ns/nh 12/ 13

H.F. _____ have been convicted of certain moving violations or other 1 crimes within certain periods of time before applying to be 2 a TNC driver. The bill prohibits drivers from soliciting or 3 accepting passengers hailing the driver from the street, and 4 from accepting cash payments from passengers. 5 The bill further prohibits discrimination against passengers 6 and potential passengers. The bill requires drivers to comply 7 with all applicable laws relating to accommodation of service 8 dogs and assistive animals, and prohibits drivers from imposing 9 additional charges for providing services to a passenger with 10 a physical disability if the charges are imposed because of 11 the passenger’s physical disability. The bill provides that 12 a TNC shall provide a passenger the opportunity to indicate 13 whether the passenger requires a wheelchair-accessible motor 14 vehicle as part of the passenger’s request for transportation. 15 If the company cannot, under any circumstances, arrange a 16 wheelchair-accessible motor vehicle to provide the passenger 17 with services, the company shall provide the contact 18 information of an alternate provider of wheelchair-accessible 19 transportation, if available. 20 The bill provides for the retention of certain records, and 21 prohibits the release of personal information, except under 22 limited circumstances. 23 The bill further provides that the DOT shall adopt rules 24 to administer the provisions of the bill, and prohibits local 25 governments from imposing requirements on TNCs or drivers. 26 The bill excludes TNCs and drivers from various definitions 27 and requirements relating to the transportation of passengers 28 for hire that appear elsewhere in the Code. 29 -13- LSB 1589YC (3) 86 ns/nh 13/ 13