Bill > HF545

Introduced Session

This bill provides for the regulation of delivery network companies (DNCs) and delivery network drivers (drivers). A DNC is an entity that uses a digital network to connect DNC customers to drivers who provide delivery services. During the delivery service periods, the bill requires financial liability coverage to cover the driver in the amount of at least $50,000 for bodily injury to or death of one person in any one crash or collision, $100,000 for bodily injury to or death of two or more persons in any one crash or collision, and $25,000 for injury to or destruction of property of others in any one crash or collision. The insurance required by the bill may be maintained by the driver, the DNC, or both. Under the bill, if the financial liability coverage maintained by a driver lapses or does not provide coverage in the amounts required by the bill, insurance maintained by a DNC must provide the coverage beginning with the first dollar of a claim, and the DNC is required to defend the claim. In addition, insurance maintained by a DNC is prohibited from being dependent on the insurer of a driver’s personal vehicle first denying a claim. The financial liability coverage required by the bill must be provided by an insurer governed by Code chapter 515, or by a surplus lines insurer governed by Code chapter 515I. The bill requires a driver to carry proof of financial liability coverage at all times during which the driver uses a vehicle in connection with the use of a DNC’s digital network. In the event of a crash or collision, the driver must provide the proof of financial liability coverage, upon request, to any directly interested party or insurer, and to any investigating police officer. The bill requires a DNC to disclose to a driver in writing the types, amounts, terms, and limits of financial liability coverage provided by the DNC to the driver while the driver uses a personal vehicle in connection with the use of the DNC’s digital network, and the fact that the driver’s own financial liability coverage may not provide coverage during the delivery service period. The bill provides that an insurer may exclude coverage afforded to an insured person under a policy issued to the owner or operator of a personal vehicle for any injury or loss that occurs while the insured is logged on to a DNC’s digital network during the delivery service period. An insurer that excludes coverage in this way does not have a duty to defend or indemnify a claim so excluded from a policy issued by the insurer. An insurer that defends or indemnifies a claim against an insured driver that is excluded under the terms of the driver’s policy has a right of action for contribution or indemnity against an insurer providing financial liability coverage to the driver during the period in which the loss occurred. In addition, the bill provides that in a claims coverage investigation, any involved DNC and any insurer potentially providing coverage must cooperate to facilitate the exchange of relevant information with parties directly involved in the claim. The bill provides that a DNC is not deemed to control, direct, or manage a driver that connects to the DNC’s digital network, or the driver’s personal vehicle, except as agreed to by the DNC and the driver pursuant to a written contract, and that a driver is an independent contractor, not an agent or employee of a DNC. The bill exempts drivers from Code chapters 325A (motor carrier authority) and 327D (regulation of carriers). Under current law, a person who violates provisions relating to proof of financial liability coverage (Code section 321.20B), including a driver under the bill, is subject to a scheduled fine of $325, or $645 if the person was involved in an accident, among other consequences. There are no penalties set forth in the bill for DNCs that violate the provisions of the bill. Code chapter 321N regulates transportation network companies and restricts certain persons from being eligible to operate as a transportation network company driver. A driver is not subject to the same exclusions while performing delivery services. The bill takes effect July 1, 2026.

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Referred to Commerce. H.J. 895. (on 04/03/2025)

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