This bill establishes regulations for delivery network companies (DNCs) and their drivers in Iowa, defining key terms such as "delivery network company," "delivery network driver," and "delivery service." It mandates that delivery network drivers maintain financial liability coverage during the delivery service period, with specified minimum coverage amounts for bodily injury and property damage. The bill also stipulates that if a driver's personal insurance does not meet these requirements, the DNC must provide coverage from the first dollar of a claim and is responsible for defending the claim. Additionally, the bill requires DNCs to disclose insurance details to drivers and clarifies that insurers may exclude coverage for incidents occurring while a driver is logged into a DNC's digital network.

Furthermore, the bill clarifies the relationship between DNCs and drivers, stating that drivers are independent contractors and not employees of the DNCs, unless otherwise agreed upon in a written contract. It also exempts delivery network drivers from certain existing regulations under Code chapters 325A and 327D. While the bill outlines penalties for drivers who fail to provide proof of financial liability coverage, it does not specify penalties for DNCs that violate its provisions. The bill is set to take effect on July 1, 2026.

Statutes affected:
Introduced: 321.518, 325A.1, 321Q.1