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ENGROSSED SENATE
BILL NO. 999 By: Bergstrom of the Senate
and
Frix of the House
An Act relating to transportation; creating the
Oklahoma Courier Application Services Act; providing
definitions; excluding motor carrier classification
for certain entities and people; requiring courier
service implement zero tolerance policy for drugs or
alcohol; requiring services suspend access and
conduct investigation in certain circumstance;
requiring applicants submit certain information to
courier service; prohibiting courier service from
hiring certain persons; requiring updates; requiring
certain equipment standards be met by courier
application service drivers; requiring certain entity
maintain commercial auto insurance in certain amount ;
specifying time period that driver is responsible for
maintaining personal insurance; authorizing courier
application service insurance to provide coverage
without certain requirement; specifying insurers
eligible to provide insurance for courier applicatio n
services; requiring courier application service
disclose information to driver prior to driver
accepting courier request; authorizing ins urers to
exclude certain insurance coverage; construing
provision; providing that insurer not have certain
duty; providing that certain insurer have right of
contribution; requiring insurer cooperation with
certain persons in certain investigation; requiri ng
direct payment from ins urer to certain people under
certain circumstances; providing for codifi cation;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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SECTION 1. NEW LAW A new sectio n of law to be codified
in the Oklahoma Statutes as Section 1050 of Title 47, unless there
is created a duplication in num bering, reads as follows:
This act shall be kn own and may be cited as the “Oklahoma
Courier Application Services Act ”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1051 of Title 47, unless there
is created a duplication in numbering , reads as follows:
As used in the Oklahoma Courier Application Services Act:
A. “Digital network” means any online-enabled application,
software, website or system offered or utilized by a courier
application service (CAS) that enables the prearrangement of courier
services with CAS drivers.
B. “Personal vehicle” means a vehicle that is us ed by a CAS
driver in connection with providing courier services and is:
1. Owned, leased or otherwise authorized for use by the CAS
driver; and
2. Has an actual weight of less than eight thousand (8,000)
pounds; and
3. Has no more than two axles or axl e combination.
C. “Courier application services (CAS)” means a business entity
operating in Oklahoma that uses a digital network to connect
business entities including itself, its affiliates or people to CAS
drivers for the purpose of providing courier se rvices on an on-
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demand basis. Courier services are provided on an on-demand basis
if the CAS drivers are free to acc ept or reject courier requests and
the CAS does not require the CAS driver to accept any specific
delivery request as a condition of mai ntaining access to the CAS
digital network. A CAS does not provide other for-hire motor
carrier services. A CAS shall not be deemed to control, direct or
manage the personal vehicles or participating drivers tha t connect
to its digital network, except where agreed to by written contract.
D. “Courier application service driver (CAS driver)” means an
individual who uses a perso nal vehicle to provide courier services
for business or people upon connection through a digital netw ork
controlled by a CAS in return for compensation or payment of a fee.
E. “Courier service” means the for-hire transportation of
property in a personal vehicle, with each individual piece of
property weighing less than one hundred (100) pounds, beginning
either when
1. A CAS driver accepts a courier request through a digital
network controlled by a CAS; or
2. If a CAS driver accepts such courier reques t for delivery
during a fixed block of time, whe n the CAS driver picks up the
property for delivery.
The courier service continues while the CAS driver is actively
transporting the requested property to the recipient and ends when
the property has been de livered. A courier service does not include
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shared expense or transporting property not for profit, or o ther
for-hire motor carrier oper ations authorized by the laws of this
state.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1052 of Title 47, unless there
is created a duplication i n numbering, reads as follows:
Courier application service comp anies or courier application
service drivers shall not be considered motor carriers of property,
nor shall CAS or CAS drivers be considered for -hire motor carrier,
as defined in Section 230. 23 of Title 47 of the Oklahoma Statutes.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1053 of Title 47, unless there
is created a duplicatio n in numbering, reads as follows:
Courier application service companies shall implement a zero-
tolerance policy against CAS drivers operating under the infl uence
of drugs or alcohol while providing courier serv ices and shall
provide notice of this policy o n its digital network. Upon receipt
of a credible compla int alleging a violation of the zero-tolerance
policy, the CAS shall suspend the CAS driver’s access to the CAS’s
digital network and shall conduct an investigation into the reported
incident. The suspension shall last the duration of the
investigation.
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SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statu tes as Section 1054 of Title 47, unless there
is created a duplication in numbering, reads as follow s:
A. Prior to permitting an individual to act as a courier
application service driver on its digital network, the courier
application service shall requir e the individual to submit to the
CAS information regarding his or her address, age, driver license
and other information required by the CAS.
B. A CAS shall not knowingly permit an indiv idual to act as a
CAS driver on its digital network who:
1. Does not possess a valid driver license;
2. Does not possess current proof of motor vehicle registration
for the motor vehicles used to provide courier services;
3. Does not possess proof of th e motor vehicle liability
insurance required by law or rule for the motor vehicles used to
provide courier services; and
4. Is not at least eighteen (18) years of age.
C. Every CAS operating in this state shall implement a
procedure for periodic informat ion updates to ensur e continued
compliance by each driver with the r equirements of this section.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1055 of Title 47, unless there
is created a duplication in numbering , reads as follows:
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Every courier application service shall require that any motor
vehicles that a CAS driver will use to provide courier services
meets the equipment standards required of private motor vehicles
under Section 12-101 et seq. of Title 47 of the Oklahoma Statutes.
SECTION 7. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1056 of Title 47, unless there
is created a duplication in numbering, reads as follows:
A. A courier application service (CAS) shall maintain
commercial auto coverage, as defined in Section 7-600 of Title 47 of
the Oklahoma Statutes, with a combined single limit of at least One
Million Dollars ($1,000,000.00) that provides coverage to the CAS
for its liability arising out of the use of a hired, owned, or non-
owned vehicle used to transport proper ty for compensation.
B. When a CAS driver is not engaged in courier services, as
defined in this Act, the CAS driver shall be solely responsible for
maintaining state compliant a utomobile insurance coverage pursuant
to Section 7-601 of Title 47 of the Oklahoma Statutes .
C. Coverage under an insurance policy maintained by the CAS
shall not be dependent on a personal automobile insurer first
denying a claim nor shall a personal auto mobile insurance policy be
required to first deny a claim.
D. Insurance required by this section may be placed with an
insurer authorized to do busines s in this state or with a surplus
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lines insurer eligible under Section 1100 et seq. of Title 36 of the
Oklahoma Statutes.
SECTION 8. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1057 of Title 47, unless there
is created a duplication in numbering, reads as follows:
The Courier application services shall disclose in writing to
CAS drivers the following before they are allowed to accept a
request for a courier service on the CAS’s digital network:
1. The insurance coverage, including the types of coverage and
the limits for each coverage, that the CAS provides while the CAS
driver uses a persona l vehicle in connection with a CAS ’s digital
network; and
2. That the CAS driver’s own motor vehicle insurance policy may
not provide any coverage while the driver is engaged in providi ng
courier services depending on its terms.
SECTION 9. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1058 of Title 47, unless there
is created a duplication in numbering, reads as follows:
A. Insurers that write motor vehicle insurance in Oklahoma may
exclude any coverage afforded under the owner’s insurance policy for
any loss or injury that occurs while a CAS driver is engaged i n
providing courier services. This right to exclude all coverage may
apply to any coverage included in a motor vehicle insurance policy
including, but not limited to:
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1. Liability coverage for bodily injury and property damage;
2. Uninsured and underinsured moto rist coverage;
3. Medical payments coverage ;
4. Comprehensive physical damage coverage; and
5. Collision physical damage coverag e.
B. Such exclusions shall apply notwithstanding any requirement
under Chapter 7 of the Oklahoma Highway Safety Code of Section 7 -101
et seq. of Title 47 of the Oklahoma Statutes. Nothing in this
section implies or requires that a personal motor vehicle insurance
policy provide coverage while the CAS driver is engaged in providing
courier services or while the driver otherwise uses a vehi cle to
transport property for compensation. Nothing in this section shall
be construed to preclude an insurer from providing coverage for the
CAS driver’s vehicle if it chooses to do so by contract or
endorsement.
C. Motor vehicle insurers that exclude coverage as permitted in
this section shall have no duty to defend or indemnify any claim
expressly excluded thereund er. Nothing in this article shall be
construed to invalidate or limit an exclusion contained in a policy
already in use or approved for use in this state prio r to the
effective date of this act that excludes coverage for vehicles used
to carry persons or property for a charge or availab le for hire by
the public. A motor vehicle insurer that defends or indemnifies a
claim against a CAS driver that is excluded under the terms of its
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policy shall have a right of contribution against other insurers
that provide motor vehicle insurance to the same CAS driver in
satisfaction of the coverage requirements of Section 7 of this act
at the time of loss.
D. In a claims coverage invest igation, a CAS and any insurer
potentially providing coverage under Section 7 of this act shall
cooperate to facilitate th e exchange of relevant information with
directly involved parties, law enforcement and any insurer of the
CAS driver if applicable, in cluding the precise times that a CAS
driver logged on and off of the CAS’s digital network in the twelve-
hour period immediately preceding and in the twelve-hour period
immediately following the accident and disclose to one another a
clear description of t he coverage, exclusions and limits provided
under any motor vehicle insurance maintained under Section 7 of this
act.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1059 of Title 47, unless there
is created a duplication in numbering, reads as follows:
If a courier application service insurer makes a payment for a
claim covered under comprehensive or collision insurance coverage,
the CAS shall cause its insurer to issue the paym ent directly to the
business repairing the vehicle or jointly to the owner of the
vehicle and the primary lienholder.
SECTION 11. This act shall become effective November 1, 2021.
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Passed the Senate the 9th day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives