H.F. 7 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 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 1352YH (2) 91 th/ns 1/ 10

H.F. 7 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 . 321Q.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 1352YH (2) 91 th/ns 2/ 10

H.F. 7 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 . 321Q.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 1352YH (2) 91 th/ns 3/ 10

H.F. 7 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 . 321Q.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 1352YH (2) 91 th/ns 4/ 10

H.F. 7 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 . 321Q.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 1352YH (2) 91 th/ns 5/ 10

H.F. 7 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 the effective date of 3 this Act, that excludes coverage for vehicles used for delivery 4 service. 5 b. An insurer that defends or indemnifies a claim against 6 an insured delivery network driver that is excluded under the 7 terms of the driver’s policy shall have a right of action 8 for contribution or indemnity against an insurer providing 9 automobile insurance to the driver under this chapter during 10 the period in which the loss occurred. 11 3. The insurer or insurers of a delivery network company 12 providing coverage under section 321Q.3, subsection 2, shall 13 assume primary liability for a claim when a dispute exists as 14 to when the delivery available period began or ended, when the 15 delivery service period began or ended, and when the delivery 16 network company does not have available, did not retain, or 17 fails to provide the information required by section 321Q.3, 18 subsection 7. 19 4. In a claims coverage investigation, any involved 20 delivery network company and any insurer providing coverage 21 pursuant to this chapter shall cooperate to facilitate the 22 exchange of relevant information with one another, and with 23 any insurer of the delivery network driver, where applicable, 24 including but not limited to the precise times during which 25 the driver began and ended the delivery available period 26 and the delivery services period on the delivery network 27 company’s digital network in the twelve-hour period immediately 28 preceding the crash or collision and in the twelve-hour 29 period immediately following the crash or collision, and shall 30 disclose to one another a clear description of any relevant 31 automobile insurance provided pursuant to this chapter, 32 including any applicable limits and exclusions. 33 Sec. 7. Section 325A.1, subsections 7, 12, and 15, Code 34 2025, are amended to read as follows: 35 -6- LSB 1352YH (2) 91 th/ns 6/ 10

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

H.F. 7 section 325A.12 , or a transportation network company or a 1 transportation network company driver, as defined in section 2 321N.1 , or delivery network company or a delivery network 3 driver, as defined in section 321Q.1 . 4 Sec. 10. EFFECTIVE DATE. This Act takes effect July 1, 5 2026. 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill provides for the regulation of delivery network 10 companies (DNCs) and delivery network drivers (drivers). A 11 DNC is an entity that uses a digital network to connect DNC 12 customers to drivers who provide delivery services. The bill 13 provides that a DNC is not deemed to control, direct, or manage 14 a driver that connects to the DNC’s digital network, or the 15 driver’s personal vehicle, except as agreed to by the DNC and 16 the driver pursuant to a written contract. 17 During the delivery available and service periods, the bill 18 requires financial liability coverage to cover the driver in 19 the amount of at least $50,000 for bodily injury to or death 20 of one person in any one crash or collision, $100,000 for 21 bodily injury to or death of two or more persons in any one 22 crash or collision, and $25,000 for injury to or destruction 23 of property of others in any one crash or collision. The 24 insurance required by the bill may be maintained by the driver, 25 the DNC, or both. 26 Under the bill, if the financial liability coverage 27 maintained by a driver lapses or does not provide coverage in 28 the amounts required by the bill, insurance maintained by a 29 DNC shall provide the coverage beginning with the first dollar 30 of a claim, and the DNC is required to defend the claim. In 31 addition, insurance maintained by a DNC shall not be dependent 32 on the insurer of a driver’s personal vehicle first denying a 33 claim. 34 The financial liability coverage required by the bill must 35 -8- LSB 1352YH (2) 91 th/ns 8/ 10

H.F. 7 be provided by an insurer governed by Code chapter 515, or by a 1 surplus lines insurer governed by Code chapter 515I. 2 The bill requires a driver to carry proof of financial 3 liability coverage at all times during which the driver uses a 4 vehicle in connection with the use of a DNC’s digital network. 5 In the event of a crash or collision, the driver must provide 6 the proof of financial liability coverage, upon request, to any 7 directly interested party or insurer, and to any investigating 8 police officer. 9 The bill requires a DNC to disclose to a driver in writing 10 the types, amounts, terms, and limits of financial liability 11 coverage provided by the DNC to the driver while the driver 12 uses a personal vehicle in connection with the use of the DNC’s 13 digital network, and the fact that the driver’s own financial 14 liability coverage may not provide coverage while the driver is 15 logged on to the DNC’s digital network or is providing delivery 16 services. 17 The bill provides that an insurer may exclude coverage 18 afforded to an insured person under a policy issued to the 19 owner or operator of a personal vehicle for any injury or 20 loss that occurs while the insured is logged on to a DNC’s 21 digital network or while the insured is providing delivery 22 services. An insurer that excludes coverage in this way shall 23 not have a duty to defend or indemnify a claim so excluded from 24 a policy issued by the insurer. An insurer that defends or 25 indemnifies a claim against an insured driver that is excluded 26 under the terms of the driver’s policy has a right of action 27 for contribution or indemnity against an insurer providing 28 financial liability coverage to the driver during the period in 29 which the loss occurred. 30 In addition, the bill provides that in a claims coverage 31 investigation, any involved DNC and any insurer potentially 32 providing coverage must cooperate to facilitate the exchange 33 of relevant information with parties directly involved in the 34 claim. 35 -9- LSB 1352YH (2) 91 th/ns 9/ 10

H.F. 7 The bill exempts drivers from Code chapters 325A (motor 1 carrier authority) and 327D (regulation of carriers). 2 Under current law, a person who violates provisions relating 3 to proof of financial liability coverage (Code section 4 321.20B), including a driver under the bill, is subject to a 5 scheduled fine of $325, or $645 if the person was involved in 6 an accident, among other consequences. There are no penalties 7 set forth in the bill for DNCs that violate the provisions of 8 the bill. 9 Code chapter 321N regulates transportation network companies 10 and restricts certain persons from being eligible to operate 11 as a transportation network company driver. A driver is not 12 subject to the same exclusions while performing delivery 13 services. 14 The bill takes effect July 1, 2026. 15 -10- LSB 1352YH (2) 91 th/ns 10/ 10