Iowa House Bill HSB102

Iowa 2023-2024 Regular Session

• Introduced: 1/26/23
• Refer: 1/26/23

Caption

A bill for an act providing for the regulation of delivery network companies and drivers, making penalties applicable, and including effective date provisions.

Impact

If enacted, HSB102 will significantly impact drivers working within Iowa's evolving delivery economy. By mandating DNCs to ensure adequate financial liability coverage, the law seeks to enhance the protection for drivers and other road users against potential risks related to delivery services. However, the law allows DNCs to exclude certain types of coverage during specific periods, raising questions about the protection afforded to drivers under their personal auto insurance policies. This aspect has generated discussions among legislators, business owners, and insurance providers regarding the adequacy of coverage and the responsibilities of DNCs versus drivers.

Summary

House Study Bill 102 aims to establish a regulatory framework for delivery network companies (DNCs) and their drivers in Iowa. This legislation introduces necessary provisions concerning financial liability coverage that delivery network drivers must maintain while using personal vehicles for delivery purposes. It defines critical periods during which certain insurance requirements apply, namely the 'delivery available period' when drivers are logged on to the DNC platform, and the 'delivery service period' when they are actively delivering goods. Insurance requirements are set to include a minimum of $50,000 for bodily injury or death of one person and $100,000 for two or more persons in any collision, along with property damage coverage of at least $25,000.

Contention

Critics of this bill have raised concerns regarding the implications of the exemptions provision included for DNCs, which allow them to limit their liability for accidents that occur during the delivery available and service periods. Opponents argue that this may lead to inadequate protections for drivers, especially those who may be unaware their personal coverage could exclude incidents that occur while logged onto a DNC's network. Overall, while the bill is intended to streamline regulations and ensure safety in the burgeoning gig economy, the balance of liability between drivers and DNCs remains a contentious issue that may require further revision as the impacts of the bill are understood.