H.F. 394 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. “Transportation network company” or “company” means an 10 entity operating in this state that uses a digital network 11 or software application service to connect passengers to 12 transportation network company drivers providing transportation 13 network company services. A transportation network company 14 is not deemed to own, control, operate, or manage the motor 15 vehicles used by transportation network company drivers. 16 “Transportation network company” does not include an entity that 17 provides nonemergency medical transportation brokerage services 18 under contract, directly or indirectly, with this state. 19 2. “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 3. “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- HF 394 (3) 86 ns/nh/md 1/ 11

H.F. 394 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 Agent. 9 A transportation network company shall maintain an agent in 10 this state for service of process. 11 Sec. 5. NEW SECTION . 321N.5 Identification of vehicles and 12 drivers. 13 Before a passenger enters the motor vehicle of a 14 transportation network company driver, the company shall 15 disclose all of the following information to the passenger on 16 the company’s internet site or within the company’s software 17 application service: 18 1. A picture that prominently displays the face of the 19 driver. 20 2. The make, model, and registration plate number of the 21 motor vehicle operated by the driver. 22 Sec. 6. NEW SECTION . 321N.6 Fare for services. 23 A transportation network company may charge a fare for the 24 services provided to a passenger if the company discloses all 25 of the following information to the passenger on the company’s 26 internet site or within the company’s software application 27 service: 28 1. The calculation method for the fare. 29 2. The applicable rates and fees to be charged to the 30 passenger. 31 3. The option for the passenger to receive an estimated 32 fare before the passenger enters a motor vehicle operated by a 33 transportation network company driver. 34 Sec. 7. NEW SECTION . 321N.7 Electronic receipt. 35 -2- HF 394 (3) 86 ns/nh/md 2/ 11

H.F. 394 Within a reasonable period of time following the completion 1 of services provided to a passenger, the transportation network 2 company shall transmit an electronic receipt to the passenger 3 containing all of the following information: 4 1. The origin and destination of the trip. 5 2. The total time and distance of the trip. 6 3. An itemized account of the total fare paid by the 7 passenger, if any. 8 Sec. 8. NEW SECTION . 321N.8 Insurance requirements. 9 1. a. For the period of time in which a transportation 10 network company driver is logged on to a transportation 11 network company’s digital network or software application 12 service and is available to receive requests for transportation 13 from passengers, but is not providing transportation network 14 company services, the company shall maintain primary financial 15 liability coverage in the amount of fifty thousand dollars 16 because of bodily injury to or death of one person in any one 17 accident, and, subject to the limit for one person, the amount 18 of one hundred thousand dollars because of bodily injury to 19 or death of two or more persons in any one accident, and the 20 amount of fifteen thousand dollars because of injury to or 21 destruction of property of others in any one accident, and 22 shall maintain uninsured motorist coverage and underinsured 23 motorist coverage in the amounts required under section 516A.1. 24 b. The financial liability coverage required by paragraph 25 “a” shall cover the transportation network company driver in the 26 event that the driver’s financial liability coverage does not 27 provide coverage to the driver during the period of time stated 28 in paragraph “a” , or does not provide coverage in the amounts 29 required by paragraph “a” . 30 2. a. For the period of time in which a transportation 31 network company driver is providing transportation network 32 company services, the transportation network company or the 33 driver shall maintain primary financial liability coverage in 34 the amount of one million dollars for death, bodily injury, 35 -3- HF 394 (3) 86 ns/nh/md 3/ 11

H.F. 394 and property damage in any one accident, and shall maintain 1 uninsured motorist coverage and underinsured motorist coverage 2 in the amount of one hundred thousand dollars per accident. 3 b. The financial liability coverage shall explicitly 4 recognize that the coverage applies to a driver providing 5 transportation network company services. 6 3. Nothing in this section shall prevent a transportation 7 network company driver from obtaining additional financial 8 liability coverage in excess of the coverage required under 9 this section. If a driver maintains such excess financial 10 liability coverage, any claim arising from the periods of 11 time stated in subsections 1 and 2 shall be covered first by 12 the primary underlying automobile insurance policy up to the 13 policy’s limits, and then covered by the excess financial 14 liability coverage maintained by the driver according to the 15 excess policy’s terms. 16 4. Financial liability coverage required by this section 17 shall be issued by an eligible insurer authorized to do 18 business in this state by the commissioner of insurance. 19 5. a. An insurer authorized to do business in this state 20 shall disclose, in a prominent place on the policy, whether or 21 not the policy provides coverage for a motor vehicle while the 22 vehicle is being used to provide transportation network company 23 services. 24 b. An insurer authorized to do business in this state 25 may exclude coverage, including but not limited to liability 26 coverage for bodily injury or property damage, uninsured and 27 underinsured motorist coverage, medical payments coverage, 28 comprehensive physical damage coverage, or collision physical 29 damage coverage, for claims resulting from, or arising out of, 30 the insured motor vehicle being used to provide transportation 31 network company services, provided such exclusion is explicitly 32 set forth in the motor vehicle liability policy, and the 33 insurer or its agent discloses the language of the exclusion 34 in writing to the insured during the application process for 35 -4- HF 394 (3) 86 ns/nh/md 4/ 11

H.F. 394 the policy. 1 c. If such an exclusion is explicitly set forth in the motor 2 vehicle liability policy, the insurer shall not have a duty to 3 indemnify or defend the insured against claims resulting from, 4 or arising out of, use of the insured motor vehicle to provide 5 transportation network company services, provided the insurer 6 complies with chapter 507B. 7 6. During a claims investigation, a transportation network 8 company and its insurer shall cooperate with the parties to the 9 claim to facilitate the exchange of information, including but 10 not limited to the time periods in which the driver was logged 11 on to the company’s digital network or software application 12 service in the twenty-four-hour period immediately preceding 13 the accident, and the terms, conditions, and exclusions of 14 the applicable financial liability coverage maintained by the 15 company. 16 7. If a transportation network company’s insurer makes a 17 payment for a claim covered under comprehensive or collision 18 physical damage coverage, the transportation network company 19 shall cause its insurer to issue the payment directly to the 20 business repairing the insured vehicle or jointly to the owner 21 of the vehicle and the primary lienholder on the vehicle. 22 Sec. 9. NEW SECTION . 321N.9 Disclosure requirements. 23 1. A transportation network company shall disclose all of 24 the following information to a transportation network company 25 driver in writing before the driver may accept a request from a 26 passenger for transportation network company services: 27 a. The amounts and terms of financial liability coverage 28 provided by the company to the driver while the driver operates 29 a motor vehicle in connection with the company’s digital 30 network or software application service. 31 b. That the driver’s personal motor vehicle liability policy 32 may not provide coverage when the driver operates a motor 33 vehicle in connection with the company’s digital network or 34 software application service. 35 -5- HF 394 (3) 86 ns/nh/md 5/ 11

H.F. 394 Sec. 10. NEW SECTION . 321N.10 Drug and alcohol use 1 prohibited. 2 1. A transportation network company shall adopt a policy 3 prohibiting the use of drugs or alcohol by a transportation 4 network company driver while the driver is providing services 5 or is logged on to the company’s digital network or software 6 application service and available to receive requests for 7 transportation from potential passengers. The company shall 8 display this policy on its internet site. The policy shall 9 include a procedure by which a passenger can submit a complaint 10 against a driver with whom the passenger was matched by 11 the company if the passenger reasonably suspects the driver 12 was under the influence of drugs or alcohol while providing 13 services to the passenger. 14 2. Upon receipt of a passenger complaint alleging a 15 violation of the drug and alcohol policy, the company shall 16 immediately suspend the driver’s access to the company’s 17 digital network or software application service and shall 18 conduct an investigation into the reported incident. The 19 suspension shall last for the duration of the investigation. 20 3. A transportation network company shall maintain all 21 records relevant to a complaint received pursuant to this 22 section for at least two years from the date the passenger 23 complaint was received by the company. 24 Sec. 11. NEW SECTION . 321N.11 Driver requirements. 25 1. Prior to permitting a person to act as a transportation 26 network company driver on a transportation network company’s 27 digital network or software application service, the company 28 shall do all of the following: 29 a. Require the person to submit an application to the 30 company, including the person’s address and age, and including 31 copies of the person’s driver’s license, driving history, motor 32 vehicle registration, proof of financial liability coverage, 33 and any other information required by the company. 34 b. Conduct, or instruct a third party to conduct, a local 35 -6- HF 394 (3) 86 ns/nh/md 6/ 11

H.F. 394 and national criminal background check, including a report from 1 a national commercial criminal record database with validation, 2 and a report from the national sex offender registry database. 3 c. Obtain and review a driving history research report on 4 the person. 5 d. Advise the person to inform the insurer of the person’s 6 personal motor vehicle that the person intends to act as a 7 transportation network company driver. The advisement shall be 8 presented to the person by the company in a conspicuous manner 9 separate from any other advisements, terms, or conditions 10 presented to the person. The company shall obtain affirmation 11 from the person that the person received the advisement 12 required by this paragraph. 13 2. A transportation network company shall not permit a 14 person to act as a driver on the company’s digital network or 15 software application service if any of the following apply: 16 a. The person has had more than three moving violations in 17 the prior three-year period. 18 b. The person has been convicted in the prior three-year 19 period of violating section 321.218, 321.277, 321.279, or 20 321J.21, or of any other moving violation punishable by more 21 than a scheduled fine. 22 c. The person has been convicted in the prior seven-year 23 period of violating section 321J.2 or 321J.2A, or any crime 24 involving fraud, a sexual offense, use of a motor vehicle to 25 commit a felony, property damage, theft, an act of violence, or 26 an act of terror. 27 d. The person is registered on the national sex offender 28 registry database. 29 e. The person does not possess a valid driver’s license. 30 f. The person does not possess proof of a valid registration 31 for the motor vehicle used to provide transportation network 32 company services. 33 g. The person does not possess proof of financial liability 34 coverage for the motor vehicle used to provide transportation 35 -7- HF 394 (3) 86 ns/nh/md 7/ 11

H.F. 394 network company services. 1 h. The person is not at least nineteen years of age. 2 Sec. 12. NEW SECTION . 321N.11A Motor vehicle safety 3 inspection required. 4 1. A transportation network company or a third party 5 shall perform an initial safety inspection on each motor 6 vehicle prior to approving the vehicle for use to provide 7 transportation network company services. A safety inspection 8 shall be performed on an annual basis thereafter for a motor 9 vehicle to continue to provide transportation network company 10 services. The safety inspection shall include inspection of 11 all of the following components and such components shall be 12 in good working order: 13 a. Foot brakes. 14 b. Parking or emergency brakes. 15 c. Steering mechanism. 16 d. Windshield. 17 e. Rear window and other glass. 18 f. Windshield wipers. 19 g. Headlights. 20 h. Tail lights. 21 i. Turn indicator lights. 22 j. Brake lights. 23 k. Front seat adjustment mechanism. 24 l. The opening, closing, and locking capability of doors. 25 m. Horn. 26 n. Speedometer. 27 o. Bumpers. 28 p. Muffler and exhaust system. 29 q. Tire conditions, including tread depth. 30 r. Interior and exterior rear-view mirrors. 31 s. Safety belts for driver and passengers. 32 2. A transportation network company driver shall maintain 33 proof of the most current inspection in the driver’s vehicle. 34 A transportation network company shall maintain complete 35 -8- HF 394 (3) 86 ns/nh/md 8/ 11

H.F. 394 documentation of such inspections for at least the period that 1 the current inspection remains valid. 2 Sec. 13. NEW SECTION . 321N.12 Street hails prohibited. 3 A transportation network company driver shall not solicit or 4 accept passengers hailing the driver from the street. 5 Sec. 14. NEW SECTION . 321N.13 Cash payments prohibited. 6 A transportation network company shall adopt a policy 7 prohibiting the solicitation or acceptance of cash payments 8 from passengers and shall notify drivers of the policy. 9 A driver shall not solicit or accept cash payments from 10 passengers. Any payment for services shall be made 11 electronically using the company’s digital network or software 12 application service. 13 Sec. 15. NEW SECTION . 321N.14 Records. 14 A transportation network company shall maintain the records 15 of each instance of services provided to a passenger for at 16 least one year from the date the services were provided. A 17 company shall maintain the records of each of its drivers for 18 at least one year from the date a driver’s activation on the 19 company’s digital network or software application service has 20 ended. 21 Sec. 16. NEW SECTION . 321N.15 Disclosure of personal 22 information. 23 1. A transportation network company shall not disclose 24 a passenger’s personal information to a third party unless 25 the passenger consents to the disclosure, the disclosure is 26 required by law, the disclosure is required to protect or 27 defend the terms of use of the company’s services, or the 28 disclosure is required to investigate a violation of the terms 29 of use. For purposes of this section, “personal information” 30 includes but is not limited to the passenger’s name, home 31 address, telephone number, and payment information. 32 2. Notwithstanding subsection 1, a transportation network 33 company may disclose a passenger’s name and telephone number 34 to the driver providing services to the passenger in order to 35 -9- HF 394 (3) 86 ns/nh/md 9/ 11

H.F. 394 facilitate the identification of the passenger by the driver, 1 or to facilitate communication between the passenger and the 2 driver. 3 Sec. 17. NEW SECTION . 321N.16 Prohibition of regulation by 4 political subdivisions. 5 Transportation network companies and drivers are governed 6 exclusively by this chapter. A political subdivision of the 7 state shall not enact an ordinance regulating the activities or 8 operations of a transportation network company or driver when 9 such activities or operations are otherwise lawful under the 10 laws of this state. An ordinance existing on or after July 11 1, 2015, that regulates transportation network companies or 12 drivers in violation of this section is void. A county, city, 13 or other municipality of this state shall not impose a tax on, 14 or require a license for, a transportation network company, 15 driver, or a vehicle operated by a driver where such tax or 16 license relates to providing transportation network company 17 services, or subject a transportation network company or driver 18 to any local rate, entry, or operational requirements, or any 19 other requirements. 20 Sec. 18. Section 321.1, subsection 8, Code 2015, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . j. A transportation network company driver, 23 as defined in section 321N.2, is not a chauffeur. 24 Sec. 19. Section 325A.1, subsections 6, 7, and 13, Code 25 2015, are amended to read as follows: 26 6. “Motor carrier” means a person defined in subsection 8, 27 9, or 10 but does not include a transportation network company 28 or a transportation network company driver, as defined in 29 section 321N.2 . 30 7. “Motor carrier certificate” means a certificate issued 31 by the department to any person transporting passengers on any 32 highway of this state for hire , other than a transportation 33 network company or a transportation network company driver, as 34 defined in section 321N.2 . This certificate is transferable. 35 -10- HF 394 (3) 86 ns/nh/md 10/ 11

H.F. 394 13. “Private carrier” means a person who provides 1 transportation of property or passengers by motor vehicle, 2 is not a for-hire motor carrier or a transportation network 3 company or a transportation network company driver, as defined 4 in section 321N.2 , or who transports commodities of which the 5 person is the owner, lessee, or bailee and the transportation 6 is a furtherance of the person’s primary business or 7 occupation. 8 Sec. 20. Section 325A.11, Code 2015, is amended to read as 9 follows: 10 325A.11 Passenger transportation. 11 In addition to the requirements of subchapter 1 , motor 12 carriers of passengers and charter carriers shall comply with 13 the requirements of this subchapter . A transportation network 14 company or a transportation network company driver, as defined 15 in section 321N.2, need not comply with the requirements of 16 subchapter 1 or 2. 17 Sec. 21. Section 325A.12, subsection 3, Code 2015, is 18 amended by adding the following new paragraph: 19 NEW PARAGRAPH . e. A transportation network company or a 20 transportation network company driver, as defined in section 21 321N.2. 22 Sec. 22. Section 327D.1, Code 2015, is amended to read as 23 follows: 24 327D.1 Applicability of chapter. 25 This chapter applies to intrastate transportation by 26 for-hire common carriers of persons and property. However, 27 this chapter does not apply to regular route motor carriers 28 of passengers or charter carriers, as defined under 29 section 325A.12 , or a transportation network company or a 30 transportation network company driver, as defined in section 31 321N.2 . 32 -11- HF 394 (3) 86 ns/nh/md 11/ 11