H.F. 2414 Section 1. NEW SECTION . 321N.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Digital network” means an online-enabled application, 4 software, internet site, or system offered or utilized by a 5 transportation network company that enables transportation 6 network company riders to prearrange rides with transportation 7 network company drivers. 8 2. “Personal vehicle” means a motor vehicle that is used by 9 a transportation network company driver and is owned, leased, 10 or otherwise authorized for use by the transportation network 11 company driver. “Personal vehicle” does not include a taxicab, 12 limousine, or other vehicle for hire. 13 3. “Prearranged ride” means the provision of transportation 14 by a transportation network company driver to a transportation 15 network company rider. A prearranged ride begins when a driver 16 accepts a ride request from a rider through a digital network 17 controlled by a transportation network company, continues while 18 the driver transports the requesting rider, and ends when 19 the last requesting rider departs from the driver’s personal 20 vehicle. A prearranged ride does not include transportation 21 provided using a taxicab, limousine, or other vehicle for hire, 22 or a shared expense carpool or vanpool arrangement. 23 4. “Transportation network company” or “company” means a 24 corporation, partnership, sole proprietorship, or other entity 25 that operates in this state and uses a digital network to 26 connect transportation network company riders to transportation 27 network company drivers who provide prearranged rides. A 28 transportation network company is not deemed to control, 29 direct, or manage a transportation network company driver that 30 connects to its digital network, or the driver’s personal 31 vehicle, except as agreed to by the company and the driver 32 pursuant to a written contract. 33 5. “Transportation network company driver” or “driver” means 34 an individual who does all of the following: 35 -1- HF 2414 (2) 86 ns/nh/md 1/ 10

H.F. 2414 a. Receives connections to potential transportation network 1 company riders and other related services from a transportation 2 network company in exchange for payment of a fee to the 3 transportation network company. 4 b. Uses a personal vehicle to offer or provide prearranged 5 rides to transportation network company riders upon connection 6 through a digital network controlled by a transportation 7 network company in return for compensation or payment of a fee. 8 6. “Transportation network company rider” or “rider” 9 means an individual or group of individuals who use a 10 transportation network company’s digital network to connect 11 with a transportation network company driver to request a 12 prearranged ride for the individual or group of individuals, 13 and who receive the prearranged ride in the driver’s personal 14 vehicle between locations chosen by the individual or group of 15 individuals. 16 Sec. 2. NEW SECTION . 321N.2 Exclusions —— driver 17 requirements. 18 1. A transportation network company, a transportation 19 network company driver, or a personal vehicle used to provide a 20 prearranged ride is not a motor carrier as defined in section 21 325A.1, private carrier as defined in section 325A.1, charter 22 carrier as defined in section 325A.12, or common carrier. 23 2. Prior to permitting an individual to act as a 24 transportation network company driver on a transportation 25 network company’s digital network, the company shall do all of 26 the following: 27 a. Require the individual to submit an application to the 28 company with the individual’s name, address, and age, and with 29 copies of the individual’s driver’s license, the registration 30 for the personal vehicle the individual will use to provide 31 prearranged rides, proof of financial responsibility covering 32 the driver in the types and amounts required by section 321N.3, 33 and any other information required by the company. 34 b. Conduct, or instruct a third party to conduct, a local 35 -2- HF 2414 (2) 86 ns/nh/md 2/ 10

H.F. 2414 and national criminal background check on the individual and a 1 search of the national sex offender registry database for the 2 individual. 3 c. Obtain and review a driving history research report on 4 the individual. 5 3. A transportation network company shall not knowingly 6 allow an individual to act as a driver on the company’s digital 7 network if any of the following apply: 8 a. The individual has been convicted of more than three 9 moving violations. 10 b. The individual has been convicted of violating section 11 321.218, 321.277, or 321J.21, or section 321A.32, subsection 1, 12 in the prior three-year period. 13 c. The individual has been convicted in the prior seven-year 14 period of a felony, of violating section 321J.2 or 321J.2A, or 15 of any crime involving resisting law enforcement, dishonesty, 16 injury to another person, damage to the property of another 17 person, or operating a vehicle in a manner that endangers 18 another person. 19 d. The individual is registered on the national sex offender 20 registry. 21 e. The individual is unable to provide any information 22 required by this section. 23 4. A transportation network company shall adopt and enforce 24 a zero tolerance policy prohibiting the use of drugs or 25 alcohol by a transportation network company driver while the 26 driver is providing a prearranged ride or is logged on to the 27 company’s digital network and available to receive requests 28 for transportation from potential riders. The policy shall 29 include provisions providing for the investigation of alleged 30 violations of the policy and the suspension of drivers under 31 investigation. 32 5. A transportation network company shall require that a 33 personal vehicle used to provide prearranged rides shall comply 34 with all applicable motor vehicle equipment requirements. 35 -3- HF 2414 (2) 86 ns/nh/md 3/ 10

H.F. 2414 Sec. 3. NEW SECTION . 321N.3 Financial responsibility. 1 1. A transportation network company driver, or a 2 transportation network company on the driver’s behalf, shall 3 maintain primary automobile insurance that does all of the 4 following: 5 a. Recognizes that the driver is a transportation network 6 company driver or that the driver otherwise uses a motor 7 vehicle to transport passengers for compensation. 8 b. Covers the driver while the driver is logged on to the 9 transportation network company’s digital network and while the 10 driver is engaged in a prearranged ride. 11 c. Covers the driver in the amounts set forth in subsections 12 2 and 3. 13 2. a. While a participating transportation network company 14 driver is logged on to a transportation network company’s 15 digital network and is available to receive requests for a 16 prearranged ride, but is not engaged in a prearranged ride, 17 primary automobile insurance maintained pursuant to paragraph 18 “c” shall cover the driver in the amount of at least fifty 19 thousand dollars because of bodily injury to or death of one 20 person in any one accident, the amount of at least one hundred 21 thousand dollars because of bodily injury to or death of two 22 or more persons in any one accident, and the amount of at 23 least twenty-five thousand dollars because of injury to or 24 destruction of property of others in any one accident. If 25 there is a lien on the personal vehicle used by the driver 26 while the driver is logged on to a company’s digital network 27 and is available to receive requests for a prearranged ride, 28 primary automobile insurance maintained pursuant to paragraph 29 “c” shall also include comprehensive physical damage coverage 30 and collision physical damage coverage. 31 b. The requirements of paragraph “a” shall be in addition to 32 the automobile insurance requirements set forth in chapter 516A 33 or any other provision of law. 34 c. The requirements of paragraph “a” may be satisfied by any 35 -4- HF 2414 (2) 86 ns/nh/md 4/ 10

H.F. 2414 of the following: 1 (1) Insurance maintained by the transportation network 2 company driver. 3 (2) Insurance maintained by the transportation network 4 company. 5 (3) A combination of subparagraphs (1) and (2). 6 3. a. While a transportation network company driver is 7 engaged in a prearranged ride, primary automobile insurance 8 maintained pursuant to paragraph “c” shall cover the driver in 9 the amount of at least one million dollars because of bodily 10 injury to or death of one or more persons and injury to or 11 destruction of property of others in any one accident. If 12 there is a lien on the personal vehicle used by the driver 13 while the driver is engaged in a prearranged ride, primary 14 automobile insurance maintained pursuant to paragraph “c” 15 shall also include comprehensive physical damage coverage and 16 collision physical damage coverage. 17 b. The requirements of paragraph “a” shall be in addition to 18 the automobile insurance requirements set forth in chapter 516A 19 or any other provision of law. 20 c. The requirements of paragraph “a” may be satisfied by any 21 of the following: 22 (1) Insurance maintained by the transportation network 23 company driver. 24 (2) Insurance maintained by the transportation network 25 company. 26 (3) A combination of subparagraphs (1) and (2). 27 4. If insurance maintained by a transportation network 28 company driver under this chapter lapses or does not provide 29 coverage in the amounts required by subsections 2 and 3, 30 insurance maintained by a transportation network company shall 31 provide coverage in the amounts required by subsections 2 and 32 3 beginning with the first dollar of a claim, and the company 33 shall have a duty to defend the claim. 34 5. Coverage under an automobile insurance policy maintained 35 -5- HF 2414 (2) 86 ns/nh/md 5/ 10

H.F. 2414 by a transportation network company under this chapter 1 shall not be dependent on the insurer of a driver’s personal 2 vehicle first denying a claim, nor shall a personal automobile 3 insurance policy be required to first deny a claim. 4 6. Insurance maintained under this chapter shall be 5 provided by an insurer governed by chapter 515 or 518, or by 6 a surplus lines insurer governed by chapter 515I. A surplus 7 lines insurer that issues a policy pursuant to this section 8 shall be considered an insurance carrier duly authorized to 9 transact business in this state for the purposes of chapter 10 321A. 11 7. Insurance maintained under this chapter shall be deemed 12 to satisfy the financial responsibility requirements for a 13 motor vehicle under chapter 321A. 14 8. A transportation network company driver shall carry 15 proof of financial liability coverage, as required by section 16 321.20B, in the amounts required by subsections 2 and 3, at 17 all times during which the driver uses a motor vehicle in 18 connection with the use of a transportation network company’s 19 digital network. In the event of an accident, the driver 20 shall provide proof of financial liability coverage to any 21 directly interested party or insurer, and to any investigating 22 police 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 25 to any investigating police officer, whether the driver was 26 logged on to a company’s digital network or was providing a 27 prearranged ride at the time of the accident. 28 Sec. 4. NEW SECTION . 321N.4 Disclosure requirements. 29 A transportation network company shall disclose all of the 30 following information to a transportation network company 31 driver in writing before the driver may accept a request from a 32 rider for a prearranged ride on the company’s digital network: 33 1. The types, amounts, terms, and limits of automobile 34 insurance provided by the company to the driver while the 35 -6- HF 2414 (2) 86 ns/nh/md 6/ 10

H.F. 2414 driver uses a personal vehicle in connection with the use of 1 the company’s digital network. 2 2. That the driver’s own automobile insurance policy, 3 depending on the policy’s terms, may not provide any coverage 4 while the driver is logged on to the company’s digital network 5 and is available to receive requests for a prearranged ride, or 6 while the driver is engaged in a prearranged ride. 7 Sec. 5. NEW SECTION . 321N.5 Insurers. 8 1. a. Notwithstanding any other provision of law to the 9 contrary, an insurer that writes automobile insurance within 10 this state may exclude any and all coverage afforded to an 11 insured person under a policy issued to the owner or operator 12 of a personal vehicle for any injury or loss that occurs while 13 the insured is logged on to a transportation network company’s 14 digital network or while the insured is providing a prearranged 15 ride. This right to exclude coverage may apply to any type 16 of coverage provided for in the insured’s policy, including 17 but not limited to liability coverage for bodily injury and 18 property damage, personal injury protection coverage, uninsured 19 and underinsured motorist coverage, medical payments coverage, 20 comprehensive physical damage coverage, and collision physical 21 damage coverage. 22 b. This chapter shall not be construed to require an 23 insurer to provide coverage to an individual while the 24 individual is logged on to a company’s digital network, is 25 engaged in a prearranged ride, or is otherwise transporting 26 another individual or group of individuals in a vehicle for 27 compensation. 28 c. This chapter shall not be construed to preclude an 29 insurer from providing coverage for a transportation network 30 company driver’s personal vehicle, if the insurer chooses to do 31 so by contract 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 -7- HF 2414 (2) 86 ns/nh/md 7/ 10

H.F. 2414 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 to carry 4 individuals or property for compensation or vehicles available 5 for hire by the public. 6 b. An insurer that defends or indemnifies a claim against an 7 insured transportation network company driver that is excluded 8 under the terms of the driver’s policy shall have a right 9 of action for contribution or indemnity against an insurer 10 providing automobile insurance to the driver under this chapter 11 during the period in which the loss occurred. 12 3. In a claims coverage investigation, any involved 13 transportation network company and any insurer providing 14 coverage pursuant to this chapter shall cooperate to 15 facilitate the exchange of relevant information with parties 16 directly involved in the claim, and with any insurer of the 17 transportation network company driver, where applicable, 18 including but not limited to the precise times during which 19 the driver logged on and off of the company’s digital network 20 in the twelve-hour period immediately preceding and in the 21 twelve-hour period immediately following the accident, and 22 shall disclose to one another a clear description of any 23 relevant automobile insurance provided pursuant to this 24 chapter, including any applicable limits and exclusions. 25 Sec. 6. Section 325A.1, subsections 6, 7, and 13, Code 2016, 26 are amended to read as follows: 27 6. “Motor carrier” means a person defined in subsection 28 8, 9, or 10 , but does not include a transportation network 29 company or a transportation network company driver, as defined 30 in section 321N.1 . 31 7. “Motor carrier certificate” means a certificate issued 32 by the department to any person transporting passengers on any 33 highway of this state for hire , other than a transportation 34 network company or a transportation network company driver, as 35 -8- HF 2414 (2) 86 ns/nh/md 8/ 10

H.F. 2414 defined in section 321N.1 . This certificate is transferable. 1 13. “Private carrier” means a person who provides 2 transportation of property or passengers by motor vehicle, 3 is not a for-hire motor carrier or a transportation network 4 company or a transportation network company driver, as defined 5 in section 321N.1 , or who transports commodities of which the 6 person is the owner, lessee, or bailee and the transportation 7 is a furtherance of the person’s primary business or 8 occupation. 9 Sec. 7. Section 325A.11, Code 2016, is amended to read as 10 follows: 11 325A.11 Passenger transportation. 12 In addition to the requirements of subchapter 1 , motor 13 carriers of passengers and charter carriers shall comply with 14 the requirements of this subchapter . A transportation network 15 company or a transportation network company driver, as defined 16 in section 321N.1, need not comply with the requirements of 17 subchapter 1 or this subchapter. 18 Sec. 8. Section 325A.12, subsection 3, Code 2016, is amended 19 by adding the following new paragraph: 20 NEW PARAGRAPH . e. A transportation network company or a 21 transportation network company driver, as defined in section 22 321N.1. 23 Sec. 9. Section 327D.1, Code 2016, is amended to read as 24 follows: 25 327D.1 Applicability of chapter. 26 This chapter applies to intrastate transportation by 27 for-hire common carriers of persons and property. However, 28 this chapter does not apply to regular route motor carriers 29 of passengers or charter carriers, as defined under 30 section 325A.12 , or a transportation network company or a 31 transportation network company driver, as defined in section 32 321N.1 . 33 Sec. 10. APPLICABILITY OF INSURANCE PROVISIONS. The 34 section of this Act enacting section 321N.3 shall apply on and 35 -9- HF 2414 (2) 86 ns/nh/md 9/ 10