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- LSB 1259YC (3) 90 th/ns 1/ 10

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 -2- LSB 1259YC (3) 90 th/ns 2/ 10

H.F. _____ 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 -3- LSB 1259YC (3) 90 th/ns 3/ 10

H.F. _____ 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 -4- LSB 1259YC (3) 90 th/ns 4/ 10

H.F. _____ 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 -5- LSB 1259YC (3) 90 th/ns 5/ 10

H.F. _____ 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 -6- LSB 1259YC (3) 90 th/ns 6/ 10

H.F. _____ 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