H.F. 545 Section 1. Section 321.518, Code 2025, 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 321Q, 13 or any other applicable laws, in vehicles that are not 14 driverless-capable vehicles. 15 Sec. 2. NEW SECTION . 321Q.1 Definitions. 16 As used in this chapter: 17 1. “Delivery network company” or “company” means a 18 corporation, partnership, sole proprietorship, or other entity 19 that operates in this state and uses a digital network to 20 connect a delivery network company customer to a delivery 21 network driver to provide delivery services. “Delivery network 22 company” does not include an entity engaged in the delivery of 23 the entity’s products by the entity’s employees. 24 2. “Delivery network company customer” or “customer” means a 25 person who uses a delivery network company’s digital network to 26 request the delivery of goods. 27 3. “Delivery network driver” or “driver” means an individual 28 who does all of the following: 29 a. Receives delivery service requests from a delivery 30 network company’s digital network. 31 b. Uses a personal vehicle to provide delivery services. 32 4. “Delivery service” means the fulfillment of a delivery 33 request by a driver to a customer during the delivery service 34 period. “Delivery service” includes a series of deliveries made 35 -1- LSB 1352HV (2) 91 th/ns 1/ 10

H.F. 545 by a driver to different customers. 1 5. “Delivery service period” means the period between a 2 driver accepting a request to deliver goods and the delivery 3 of such goods. “Delivery service period” begins when a driver 4 starts operating a personal vehicle en route to pick up goods 5 for a delivery or series of deliveries as documented by the 6 digital network controlled by a delivery network company. 7 “Delivery service period” includes the period during which the 8 driver transports the requested goods for delivery, and ends 9 upon delivery of the requested goods to any of the following: 10 a. The customer or the last customer in a series of 11 deliveries. 12 b. A location designated by the delivery network company, 13 including for purposes of returning the goods. 14 6. “Digital network” means an online-enabled application, 15 internet site, or system offered or utilized by a delivery 16 network company that enables delivery services. 17 7. “Financial liability coverage” means the same as defined 18 in section 321.1, subsection 24B. 19 8. “Personal vehicle” means a noncommercial motor vehicle 20 that is used by a delivery network driver and is owned, leased, 21 or otherwise authorized for use by the delivery network driver. 22 “Personal vehicle” does not include a taxicab, limousine, or 23 other vehicle for hire. 24 Sec. 3. NEW SECTION . 321Q.2 Interaction with other law. 25 Nothing in this chapter limits the scope of federal or state 26 law regarding delivery or transport of goods. Deliveries made 27 under this chapter that are subject to such other law must also 28 comply with the requirements of that law. In the event of a 29 conflict between this chapter and another law dealing with the 30 delivery or transport of goods, the other law prevails. 31 Sec. 4. NEW SECTION . 321Q.3 Financial responsibility. 32 1. A delivery network driver, or a delivery network company 33 on the driver’s behalf, shall maintain financial liability 34 coverage that does all of the following: 35 -2- LSB 1352HV (2) 91 th/ns 2/ 10

H.F. 545 a. Recognizes that the driver is a delivery network driver 1 or that the driver otherwise uses a personal motor vehicle to 2 deliver goods. 3 b. Covers the driver during the delivery service period. 4 c. Covers the driver in the amounts set forth in subsection 5 2. 6 2. a. During the delivery service period, financial 7 liability coverage shall cover the driver in the amount of at 8 least fifty thousand dollars for damages arising out of bodily 9 injury to or death of any one person in a crash or collision, at 10 least one hundred thousand dollars for damages arising out of 11 bodily injury to or death of two or more persons in a crash or 12 collision, and at least twenty-five thousand dollars for all 13 damages arising out of damage to or destruction of property in 14 a crash or collision. 15 b. The requirements of paragraph “a” shall be in addition to 16 the automobile insurance requirements set forth in chapter 516A 17 or any other provision of law. 18 c. The requirements of paragraph “a” may be satisfied by any 19 of the following: 20 (1) Insurance maintained by the delivery network driver. 21 (2) Insurance maintained by the delivery network company. 22 (3) A combination of subparagraphs (1) and (2). 23 3. If the financial liability coverage maintained by a 24 delivery network driver under this chapter lapses or does 25 not provide coverage in the amounts required by subsection 26 2, insurance maintained by a delivery network company shall 27 provide the financial liability coverage required by subsection 28 2 beginning with the first dollar of a claim and the company 29 shall have the duty to defend the claim. 30 4. Coverage under an automobile insurance policy maintained 31 by a delivery network company under this chapter shall not be 32 dependent on the insurer of a driver’s personal vehicle first 33 denying a claim, nor shall a personal automobile insurance 34 policy be required to first deny a claim. 35 -3- LSB 1352HV (2) 91 th/ns 3/ 10

H.F. 545 5. Insurance maintained under this chapter shall be 1 provided by an insurer governed by chapter 515, or by a surplus 2 lines insurer governed by chapter 515I. 3 6. Insurance maintained under this chapter shall be deemed 4 to satisfy the financial responsibility requirements for a 5 motor vehicle under chapter 321A. 6 7. A delivery network driver shall carry proof of financial 7 liability coverage, as required by section 321.20B, in the 8 amounts required by subsection 2, at all times while using a 9 personal vehicle in connection with a digital network. In the 10 event of a crash or collision, the driver shall provide proof 11 of financial liability coverage to any directly interested 12 party or insurer, and to any investigating law enforcement 13 officer, upon request and in a format provided for under 14 section 321.20B. Upon such a request, the driver shall also 15 disclose to any directly interested party or insurer, and to 16 any investigating law enforcement officer, whether the driver 17 was operating during the delivery service period providing 18 delivery services at the time of the crash or collision. A 19 delivery network driver who fails to carry proof of financial 20 liability coverage is subject to section 321.20B. 21 Sec. 5. NEW SECTION . 321Q.4 Disclosure requirements. 22 A delivery network company shall disclose all of the 23 following to a delivery network driver in writing before the 24 driver may accept a request from a customer for delivery 25 services on the delivery network company’s digital network: 26 1. The types, amounts, terms, and limits of automobile 27 insurance provided by the company to the driver while the 28 driver uses a personal vehicle in connection with the use of 29 the company’s digital network. 30 2. That the driver’s own automobile insurance policy, 31 depending on the policy’s terms, may not provide any coverage 32 during the delivery service period. 33 Sec. 6. NEW SECTION . 321Q.5 Insurers. 34 1. a. Notwithstanding any other provision of law to the 35 -4- LSB 1352HV (2) 91 th/ns 4/ 10

H.F. 545 contrary, an insurer that writes automobile insurance within 1 this state may exclude any and all coverage afforded to an 2 insured person under a policy issued to the owner or operator 3 of a personal vehicle for any injury or loss that occurs while 4 the insured is logged on to a delivery network company’s 5 digital network during the delivery service period. This 6 right to exclude coverage may apply to any type of coverage 7 provided for in the insured’s policy, including but not limited 8 to liability coverage for bodily injury, death, and property 9 damage, personal injury protection coverage, uninsured and 10 underinsured motorist coverage, medical payments coverage, 11 comprehensive physical damage coverage, and collision physical 12 damage coverage. 13 b. This chapter shall not be construed to require an 14 insurer to provide coverage to an individual during the 15 delivery service period or while otherwise delivering goods for 16 compensation. 17 c. This chapter shall not be construed to preclude an 18 insurer from providing coverage for a delivery network driver’s 19 personal vehicle, if the insurer chooses to do so by contract 20 or endorsement. 21 2. a. An insurer that excludes coverage pursuant to 22 subsection 1 shall not have a duty to defend or indemnify a 23 claim expressly excluded from a policy issued by the insurer. 24 This chapter shall not be deemed to invalidate or limit an 25 exclusion contained in a policy, including a policy in use or 26 approved for use in this state prior to the effective date of 27 this Act, that excludes coverage for vehicles used for delivery 28 service. 29 b. An insurer that defends or indemnifies a claim against 30 an insured delivery network driver that is excluded under the 31 terms of the driver’s policy shall have a right of action 32 for contribution or indemnity against an insurer providing 33 automobile insurance to the driver under this chapter during 34 the period in which the loss occurred. 35 -5- LSB 1352HV (2) 91 th/ns 5/ 10

H.F. 545 3. The insurer or insurers of a delivery network company 1 providing coverage under section 321Q.3, subsection 2, shall 2 assume primary liability for a claim when a dispute exists as 3 to when the delivery service period began or ended, and when 4 the delivery network company does not have available, did not 5 retain, or fails to provide the information required by section 6 321Q.3, subsection 7. 7 4. In a claims coverage investigation, any involved 8 delivery network company and any insurer providing coverage 9 pursuant to this chapter shall cooperate to facilitate the 10 exchange of relevant information with one another, and with 11 any insurer of the delivery network driver, where applicable, 12 including but not limited to the precise times during which 13 the driver began and ended the delivery services period on the 14 delivery network company’s digital network in the twelve-hour 15 period immediately preceding the crash or collision and 16 in the twelve-hour period immediately following the crash 17 or collision, and shall disclose to one another a clear 18 description of any relevant automobile insurance provided 19 pursuant to this chapter, including any applicable limits and 20 exclusions. 21 Sec. 7. NEW SECTION . 321Q.6 Company-driver relationship. 22 1. A delivery network company is not deemed to control, 23 direct, or manage a delivery network driver that connects 24 to the company’s digital network, or the driver’s personal 25 vehicle, except as agreed to by the company and the driver 26 pursuant to a written contract. 27 2. A delivery network driver shall be considered an 28 independent contractor and shall not be considered an agent or 29 employee of a delivery network company. 30 Sec. 8. Section 325A.1, subsections 7, 12, and 15, Code 31 2025, are amended to read as follows: 32 7. “Motor carrier” means a person defined in subsection 9, 33 10, 11, or 12 , but does not include a transportation network 34 company or a transportation network company driver, as defined 35 -6- LSB 1352HV (2) 91 th/ns 6/ 10

H.F. 545 in section 321N.1 , or delivery network company or delivery 1 network driver, as defined in section 321Q.1 . 2 12. “Motor carrier of property” means a person engaged in 3 the transportation, for hire, of property by motor vehicle 4 including a carrier transporting liquid commodities or 5 compressed gases in a vehicle having a total cargo tank shell 6 capacity of two thousand gallons or less , other than a delivery 7 network company or delivery network driver, as defined in 8 section 321Q.1 . 9 15. “Private carrier” means a person who provides 10 transportation of property or passengers by motor vehicle or 11 who transports commodities of which the person is the owner, 12 lessee, or bailee and the transportation is a furtherance of 13 the person’s primary business or occupation, but is not a 14 for-hire motor carrier , or a transportation network company or 15 a transportation network company driver, as defined in section 16 321N.1 , or a delivery network company or delivery network 17 driver, as defined in section 321Q.1 . 18 Sec. 9. Section 325A.1, subsection 10, unnumbered paragraph 19 1, Code 2025, is amended to read as follows: 20 “Motor carrier of household goods” means a person engaged in 21 the transportation, for hire, of personal effects and property 22 used or to be used in a dwelling, and includes other than a 23 delivery network company or delivery network driver, as defined 24 in section 321Q.1, including all of the following: 25 Sec. 10. Section 327D.1, Code 2025, is amended to read as 26 follows: 27 327D.1 Applicability of chapter. 28 This chapter applies to intrastate transportation by 29 for-hire common carriers of persons and property. However, 30 this chapter does not apply to regular route motor carriers 31 of passengers or charter carriers, as defined under 32 section 325A.12 , or a transportation network company or a 33 transportation network company driver, as defined in section 34 321N.1 , or delivery network company or a delivery network 35 -7- LSB 1352HV (2) 91 th/ns 7/ 10

H.F. 545 driver, as defined in section 321Q.1 . 1 Sec. 11. EFFECTIVE DATE. This Act takes effect July 1, 2 2026. 3 EXPLANATION 4 The inclusion of this explanation does not constitute agreement with 5 the explanation’s substance by the members of the general assembly. 6 This bill provides for the regulation of delivery network 7 companies (DNCs) and delivery network drivers (drivers). A 8 DNC is an entity that uses a digital network to connect DNC 9 customers to drivers who provide delivery services. 10 During the delivery service periods, the bill requires 11 financial liability coverage to cover the driver in the amount 12 of at least $50,000 for bodily injury to or death of one person 13 in any one crash or collision, $100,000 for bodily injury to or 14 death of two or more persons in any one crash or collision, and 15 $25,000 for injury to or destruction of property of others in 16 any one crash or collision. The insurance required by the bill 17 may be maintained by the driver, the DNC, or both. 18 Under the bill, if the financial liability coverage 19 maintained by a driver lapses or does not provide coverage in 20 the amounts required by the bill, insurance maintained by a 21 DNC must provide the coverage beginning with the first dollar 22 of a claim, and the DNC is required to defend the claim. In 23 addition, insurance maintained by a DNC is prohibited from 24 being dependent on the insurer of a driver’s personal vehicle 25 first denying a claim. 26 The financial liability coverage required by the bill must 27 be provided by an insurer governed by Code chapter 515, or by a 28 surplus lines insurer governed by Code chapter 515I. 29 The bill requires a driver to carry proof of financial 30 liability coverage at all times during which the driver uses a 31 vehicle in connection with the use of a DNC’s digital network. 32 In the event of a crash or collision, the driver must provide 33 the proof of financial liability coverage, upon request, to any 34 directly interested party or insurer, and to any investigating 35 -8- LSB 1352HV (2) 91 th/ns 8/ 10

H.F. 545 police officer. 1 The bill requires a DNC to disclose to a driver in writing 2 the types, amounts, terms, and limits of financial liability 3 coverage provided by the DNC to the driver while the driver 4 uses a personal vehicle in connection with the use of the DNC’s 5 digital network, and the fact that the driver’s own financial 6 liability coverage may not provide coverage during the delivery 7 service period. 8 The bill provides that an insurer may exclude coverage 9 afforded to an insured person under a policy issued to the 10 owner or operator of a personal vehicle for any injury or loss 11 that occurs while the insured is logged on to a DNC’s digital 12 network during the delivery service period. An insurer that 13 excludes coverage in this way does not have a duty to defend 14 or indemnify a claim so excluded from a policy issued by 15 the insurer. An insurer that defends or indemnifies a claim 16 against an insured driver that is excluded under the terms of 17 the driver’s policy has a right of action for contribution or 18 indemnity against an insurer providing financial liability 19 coverage to the driver during the period in which the loss 20 occurred. 21 In addition, the bill provides that in a claims coverage 22 investigation, any involved DNC and any insurer potentially 23 providing coverage must cooperate to facilitate the exchange 24 of relevant information with parties directly involved in the 25 claim. 26 The bill provides that a DNC is not deemed to control, 27 direct, or manage a driver that connects to the DNC’s digital 28 network, or the driver’s personal vehicle, except as agreed to 29 by the DNC and the driver pursuant to a written contract, and 30 that a driver is an independent contractor, not an agent or 31 employee of a DNC. 32 The bill exempts drivers from Code chapters 325A (motor 33 carrier authority) and 327D (regulation of carriers). 34 Under current law, a person who violates provisions relating 35 -9- LSB 1352HV (2) 91 th/ns 9/ 10

H.F. 545 to proof of financial liability coverage (Code section 1 321.20B), including a driver under the bill, is subject to a 2 scheduled fine of $325, or $645 if the person was involved in 3 an accident, among other consequences. There are no penalties 4 set forth in the bill for DNCs that violate the provisions of 5 the bill. 6 Code chapter 321N regulates transportation network companies 7 and restricts certain persons from being eligible to operate 8 as a transportation network company driver. A driver is not 9 subject to the same exclusions while performing delivery 10 services. 11 The bill takes effect July 1, 2026. 12 -10- LSB 1352HV (2) 91 th/ns 10/ 10