Yesterday, Iowa House File 394, that regulates companies such as Uber, a private alternative to the traditional TAXI service, passed the Iowa House in a 95-5 vote.

The bill requires the companies show a picture of the driver on their website, the make, model, and registration plate number of the vehicle, calculation method for the fare, an option to receive an estimated fare, issuance of an electronic receipt, and lists insurance and background check requirements.

Photo Credit “Uber ride Bogota (10277864666)” by Alexander Torrenegra from Secaucus, NJ (New York Metro), United States – On my first @Uber ride in Bogota heading to a Startup Weekend. Priceless easiness and safety. I love disruptive innovation.. Licensed under CC BY 2.0 via Wikimedia Commons.

How Your State Representative Voted:

Ayes, 95: Anderson Bacon Baltimore Baudler Baxter Bearinger Bennett Berry Best Branhagen Brown-Powers Byrnes Carlson Cohoon Cownie Dawson Deyoe Dolecheck Drake Dunkel 72nd Day TUESDAY, MARCH 24, 2015 683 Finkenauer Fisher Forbes Forristall Fry Gaines Gaskill Gassman Grassley Gustafson Hagenow Hall Hanson Hanusa Heartsill Heddens Hein Highfill Holt Huseman Isenhart Jacoby Jones Jorgensen Kaufmann Kearns Kelley Klein Koester Kooiker Kressig Landon Lensing Lykam Mascher Maxwell McConkey Miller, H. Miller, L. Mommsen Moore Nunn Oldson Olson Ourth Paustian Prichard Rizer Rogers Ruff Running-Marquardt Salmon Sands Sexton Sheets Sieck Smith Soderberg Staed Stanerson Steckman Stutsman Taylor, R. Taylor, T. Thede Upmeyer Vander Linden Watts Wessel-Kroeschell Wills Winckler Windschitl Wolfe Worthan Mr. Speaker Paulsen

Nays, 5: Abdul-Samad Heaton Hunter Meyer Pettengill

Absent or not voting, none:

Text of the Bill:

 1  1    Section 1.  NEW SECTION.  321N.1  Purpose.
  1  2    The purpose of this chapter is to ensure the safety,
  1  3 reliability, and cost=effectiveness of transportation network
  1  4 company services within this state and to preserve and enhance
  1  5 access to this important transportation option for residents
  1  6 and visitors to the state.
  1  7    Sec. 2.  NEW SECTION.  321N.2  Definitions.
  1  8    As used in this chapter, unless the context otherwise
  1  9 requires:
  1 10    1.  "Transportation network company" or "company" means an
  1 11 entity operating in this state that uses a digital network
  1 12 or software application service to connect passengers to
  1 13 transportation network company drivers providing transportation
  1 14 network company services. A transportation network company
  1 15 is not deemed to own, control, operate, or manage the motor
  1 16 vehicles used by transportation network company drivers.
  1 17 "Transportation network company" does not include an entity that
  1 18 provides nonemergency medical transportation brokerage services
  1 19 under contract, directly or indirectly, with this state.
  1 20    2.  "Transportation network company driver" or "driver" means
  1 21 a person who operates a motor vehicle that is owned, leased,
  1 22 or otherwise authorized for use by the person to provide
  1 23 transportation network company services.
  1 24    3.  "Transportation network company services" or "services"
  1 25 means transportation of a passenger between points chosen by
  1 26 the passenger and prearranged with a transportation network
  1 27 company driver through the use of a digital network or software
  1 28 application service maintained by a transportation network
  1 29 company. "Transportation network company services" begin when
  1 30 a transportation network company driver accepts a request for
  1 31 transportation from a passenger sent through a digital network
  1 32 or software application service maintained by a transportation
  1 33 network company, continue during  the time period in which the
  1 34 transportation network company driver transports the passenger
  1 35 in a motor vehicle, and end when the passenger exits the motor
  2  1 vehicle.
  2  2    Sec. 3.  NEW SECTION.  321N.3  Other carriers ==== exclusion.
  2  3    A transportation network company, a transportation
  2  4 network company driver, or a motor vehicle used to provide
  2  5 transportation network company services is not a motor carrier
  2  6 as defined in section 325A.1, private carrier as defined in
  2  7 section 325A.1, charter carrier as defined in section 325A.12,
  2  8 common carrier, or taxicab service.
  2  9    Sec. 4.  NEW SECTION.  321N.4  Agent.
  2 10    A transportation network company shall maintain an agent in
  2 11 this state for service of process.
  2 12    Sec. 5.  NEW SECTION.  321N.5  Identification of vehicles and
  2 13 drivers.
  2 14    Before a passenger enters the motor vehicle of a
  2 15 transportation network company driver, the company shall
  2 16 disclose all of the following information to the passenger on
  2 17 the company's internet site or within the company's software
  2 18 application service:
  2 19    1.  A picture that prominently displays the face of the
  2 20 driver.
  2 21    2.  The make, model, and registration plate number of the
  2 22 motor vehicle operated by the driver.
  2 23    Sec. 6.  NEW SECTION.  321N.6  Fare for services.
  2 24    A transportation network company may charge a fare for the
  2 25 services provided to a passenger if the company discloses all
  2 26 of the following information to the passenger on the company's
  2 27 internet site or within the company's software application
  2 28 service:
  2 29    1.  The calculation method for the fare.
  2 30    2.  The applicable rates and fees to be charged to the
  2 31 passenger.
  2 32    3.  The option for the passenger to receive an estimated
  2 33 fare before the passenger enters a motor vehicle operated by a
  2 34 transportation network company driver.
  2 35    Sec. 7.  NEW SECTION.  321N.7  Electronic receipt.
  3  1 Within a reasonable period of time following the completion
  3  2 of services provided to a passenger, the transportation network
  3  3 company shall transmit an electronic receipt to the passenger
  3  4 containing all of the following information:
  3  5    1.  The origin and destination of the trip.
  3  6    2.  The total time and distance of the trip.
  3  7    3.  An itemized account of the total fare paid by the
  3  8 passenger, if any.
  3  9    Sec. 8.  NEW SECTION.  321N.8  Insurance requirements.
  3 10    1.  a.  For the period of time in which a transportation
  3 11 network company driver is logged on to a transportation
  3 12 network company's digital network or software application
  3 13 service and is available to receive requests for transportation
  3 14 from passengers, but is not providing transportation network
  3 15 company services, the company shall maintain primary financial
  3 16 liability coverage in the amount of fifty thousand dollars
  3 17 because of bodily injury to or death of one person in any one
  3 18 accident, and, subject to the limit for one person, the amount
  3 19 of one hundred thousand dollars because of bodily injury to
  3 20 or death of two or more persons in any one accident, and the
  3 21 amount of fifteen thousand dollars because of injury to or
  3 22 destruction of property of others in any one accident, and
  3 23 shall maintain uninsured motorist coverage and underinsured
  3 24 motorist coverage in the amounts required under section 516A.1.
  3 25    b.  The financial liability coverage required by paragraph
  3 26 "a" shall cover the transportation network company driver in the
  3 27 event that the driver's financial liability coverage does not
  3 28 provide coverage to the driver during the period of time stated
  3 29 in paragraph "a", or does not provide coverage in the amounts
  3 30 required by paragraph "a".
  3 31    2.  a.  For the period of time in which a transportation
  3 32 network company driver is providing transportation network
  3 33 company services, the transportation network company or the
  3 34 driver shall maintain primary financial liability coverage in
  3 35 the amount of one million dollars for death, bodily injury,
  4  1 and property damage in any one accident, and shall maintain
  4  2 uninsured motorist coverage and underinsured motorist coverage
  4  3 in the amount of one hundred thousand dollars per accident.
  4  4    b.  The financial liability coverage shall explicitly
  4  5 recognize that the coverage applies to a driver providing
  4  6 transportation network company services.
  4  7    3.  Nothing in this section shall prevent a transportation
  4  8 network company driver from obtaining additional financial
  4  9 liability coverage in excess of the coverage required under
  4 10 this section. If a driver maintains such excess financial
  4 11 liability coverage, any claim arising from the periods of
  4 12 time stated in subsections 1 and 2 shall be covered first by
  4 13 the primary underlying automobile insurance policy up to the
  4 14 policy's limits, and then covered by the excess financial
  4 15 liability coverage maintained by the driver according to the
  4 16 excess policy's terms.
  4 17    4.  Financial liability coverage required by this section
  4 18 shall be issued by an eligible insurer authorized to do
  4 19 business in this state by the commissioner of insurance.
  4 20    5.  a.  An insurer authorized to do business in this state
  4 21 shall disclose, in a prominent place on the policy, whether or
  4 22 not the policy provides coverage for a motor vehicle while the
  4 23 vehicle is being used to provide transportation network company
  4 24 services.
  4 25    b.  An insurer authorized to do business in this state
  4 26 may exclude coverage, including but not limited to liability
  4 27 coverage for bodily injury or property damage, uninsured and
  4 28 underinsured motorist coverage, medical payments coverage,
  4 29 comprehensive physical damage coverage, or collision physical
  4 30 damage coverage, for claims resulting from, or arising out of,
  4 31 the insured motor vehicle being used to provide transportation
  4 32 network company services, provided such exclusion is explicitly
  4 33 set forth in the motor vehicle liability policy, and the
  4 34 insurer or its agent discloses the language of the exclusion
  4 35 in writing to the insured during the application process for
  5  1 the policy.
  5  2    c.  If such an exclusion is explicitly set forth in the motor
  5  3 vehicle liability policy, the insurer shall not have a duty to
  5  4 indemnify or defend the insured against claims resulting from,
  5  5 or arising out of, use of the insured motor vehicle to provide
  5  6 transportation network company services, provided the insurer
  5  7 complies with chapter 507B.
  5  8    6.  During a claims investigation, a transportation network
  5  9 company and its insurer shall cooperate with the parties to the
  5 10 claim to facilitate the exchange of information, including but
  5 11 not limited to the time periods in which the driver was logged
  5 12 on to the company's digital network or software application
  5 13 service in the twenty=four=hour period immediately preceding
  5 14 the accident, and the terms, conditions, and exclusions of
  5 15 the applicable financial liability coverage maintained by the
  5 16 company.
  5 17    7.  If a transportation network company's insurer makes a
  5 18 payment for a claim covered under comprehensive or collision
  5 19 physical damage coverage, the transportation network company
  5 20 shall cause its insurer to issue the payment directly to the
  5 21 business repairing the insured vehicle or jointly to the owner
  5 22 of the vehicle and the primary lienholder on the vehicle.
  5 23    Sec. 9.  NEW SECTION.  321N.9  Disclosure requirements.
  5 24    1.  A transportation network company shall disclose all of
  5 25 the following information to a transportation network company
  5 26 driver in writing before the driver may accept a request from a
  5 27 passenger for transportation network company services:
  5 28    a.  The amounts and terms of financial liability coverage
  5 29 provided by the company to the driver while the driver operates
  5 30 a motor vehicle in connection with the company's digital
  5 31 network or software application service.
  5 32    b.  That the driver's personal motor vehicle liability policy
  5 33 may not provide coverage when the driver operates a motor
  5 34 vehicle in connection with the company's digital network or
  5 35 software application service.
  6  1    Sec. 10.  NEW SECTION.  321N.10  Drug and alcohol use
  6  2 prohibited.
  6  3    1.  A transportation network company shall adopt a policy
  6  4 prohibiting the use of drugs or alcohol by a transportation
  6  5 network company driver while the driver is providing services
  6  6 or is logged on to the company's digital network or software
  6  7 application service and available to receive requests for
  6  8 transportation from potential passengers. The company shall
  6  9 display this policy on its internet site. The policy shall
  6 10 include a procedure by which a passenger can submit a complaint
  6 11 against a driver with whom the passenger was matched by
  6 12 the company if the passenger reasonably suspects the driver
  6 13 was under the influence of drugs or alcohol while providing
  6 14 services to the passenger.
  6 15    2.  Upon receipt of a passenger complaint alleging a
  6 16 violation of the drug and alcohol policy, the company shall
  6 17 immediately suspend the driver's access to the company's
  6 18 digital network or software application service and shall
  6 19 conduct an investigation into the reported incident. The
  6 20 suspension shall last for the duration of the investigation.
  6 21    3.  A transportation network company shall maintain all
  6 22 records relevant to a complaint received pursuant to this
  6 23 section for at least two years from the date the passenger
  6 24 complaint was received by the company.
  6 25    Sec. 11.  NEW SECTION.  321N.11  Driver requirements.
  6 26    1.  Prior to permitting a person to act as a transportation
  6 27 network company driver on a transportation network company's
  6 28 digital network or software application service, the company
  6 29 shall do all of the following:
  6 30    a.  Require the person to submit an application to the
  6 31 company, including the person's address and age, and including
  6 32 copies of the person's driver's license, driving history, motor
  6 33 vehicle registration, proof of financial liability coverage,
  6 34 and any other information required by the company.
  6 35    b.  Conduct, or instruct a third party to conduct, a local
  7  1 and national criminal background check, including a report from
  7  2 a national commercial criminal record database with validation,
  7  3 and a report from the national sex offender registry database.
  7  4    c.  Obtain and review a driving history research report on
  7  5 the person.
  7  6    d.  Advise the person to inform the insurer of the person's
  7  7 personal motor vehicle that the person intends to act as a
  7  8 transportation network company driver. The advisement shall be
  7  9 presented to the person by the company in a conspicuous manner
  7 10 separate from any other advisements, terms, or conditions
  7 11 presented to the person. The company shall obtain affirmation
  7 12 from the person that the person received the advisement
  7 13 required by this paragraph.
  7 14    2.  A transportation network company shall not permit a
  7 15 person to act as a driver on the company's digital network or
  7 16 software application service if any of the following apply:
  7 17    a.  The person has had more than three moving violations in
  7 18 the prior three=year period.
  7 19    b.  The person has been convicted in the prior three=year
  7 20 period of violating section 321.218, 321.277, 321.279, or
  7 21 321J.21, or of any other moving violation punishable by more
  7 22 than a scheduled fine.
  7 23    c.  The person has been convicted in the prior seven=year
  7 24 period of violating section 321J.2 or 321J.2A, or any crime
  7 25 involving fraud, a sexual offense, use of a motor vehicle to
  7 26 commit a felony, property damage, theft, an act of violence, or
  7 27 an act of terror.
  7 28    d.  The person is registered on the national sex offender
  7 29 registry database.
  7 30    e.  The person does not possess a valid driver's license.
  7 31    f.  The person does not possess proof of a valid registration
  7 32 for the motor vehicle used to provide transportation network
  7 33 company services.
  7 34    g.  The person does not possess proof of financial liability
  7 35 coverage for the motor vehicle used to provide transportation
  8  1 network company services.
  8  2    h.  The person is not at least nineteen years of age.
  8  3    Sec. 12.  NEW SECTION.  321N.11A  Motor vehicle safety
  8  4 inspection required.
  8  5    1.  A transportation network company or a third party
  8  6 shall perform an initial safety inspection on each motor
  8  7 vehicle prior to approving the vehicle for use to provide
  8  8 transportation network company services. A safety inspection
  8  9 shall be performed on an annual basis thereafter for a motor
  8 10 vehicle to continue to provide transportation network company
  8 11 services. The safety inspection shall include inspection of
  8 12 all of the following components and such components shall be
  8 13 in good working order:
  8 14    a.  Foot brakes.
  8 15    b.  Parking or emergency brakes.
  8 16    c.  Steering mechanism.
  8 17    d.  Windshield.
  8 18    e.  Rear window and other glass.
  8 19    f.  Windshield wipers.
  8 20    g.  Headlights.
  8 21    h.  Tail lights.
  8 22    i.  Turn indicator lights.
  8 23    j.  Brake lights.
  8 24    k.  Front seat adjustment mechanism.
  8 25    l.  The opening, closing, and locking capability of doors.
  8 26    m.  Horn.
  8 27    n.  Speedometer.
  8 28    o.  Bumpers.
  8 29    p.  Muffler and exhaust system.
  8 30    q.  Tire conditions, including tread depth.
  8 31    r.  Interior and exterior rear=view mirrors.
  8 32    s.  Safety belts for driver and passengers.
  8 33    2.  A transportation network company driver shall maintain
  8 34 proof of the most current inspection in the driver's vehicle.
  8 35 A transportation network company shall maintain complete
  9  1 documentation of such inspections for at least the period that
  9  2 the current inspection remains valid.
  9  3    Sec. 13.  NEW SECTION.  321N.12  Street hails prohibited.
  9  4    A transportation network company driver shall not solicit or
  9  5 accept passengers hailing the driver from the street.
  9  6    Sec. 14.  NEW SECTION.  321N.13  Cash payments prohibited.
  9  7    A transportation network company shall adopt a policy
  9  8 prohibiting the solicitation or acceptance of cash payments
  9  9 from passengers and shall notify drivers of the policy.
  9 10 A driver shall not solicit or accept cash payments from
  9 11 passengers. Any payment for services shall be made
  9 12 electronically using the company's digital network or software
  9 13 application service.
  9 14    Sec. 15.  NEW SECTION.  321N.14  Records.
  9 15    A transportation network company shall maintain the records
  9 16 of each instance of services provided to a passenger for at
  9 17 least one year from the date the services were provided. A
  9 18 company shall maintain the records of each of its drivers for
  9 19 at least one year from the date a driver's activation on the
  9 20 company's digital network or software application service has
  9 21 ended.
  9 22    Sec. 16.  NEW SECTION.  321N.15  Disclosure of personal
  9 23 information.
  9 24    1.  A transportation network company shall not disclose
  9 25 a passenger's personal information to a third party unless
  9 26 the passenger consents to the disclosure, the disclosure is
  9 27 required by law, the disclosure is required to protect or
  9 28 defend the terms of use of the company's services, or the
  9 29 disclosure is required to investigate a violation of the terms
  9 30 of use. For purposes of this section, "personal information"
  9 31 includes but is not limited to the passenger's name, home
  9 32 address, telephone number, and payment information.
  9 33    2.  Notwithstanding subsection 1, a transportation network
  9 34 company may disclose a passenger's name and telephone number
  9 35 to the driver providing services to the passenger in order to
 10  1 facilitate the identification of the passenger by the driver,
 10  2 or to facilitate communication between the passenger and the
 10  3 driver.
 10  4    Sec. 17.  NEW SECTION.  321N.16  Prohibition of regulation by
 10  5 political subdivisions.
 10  6    Transportation network companies and drivers are governed
 10  7 exclusively by this chapter. A political subdivision of the
 10  8 state shall not enact an ordinance regulating the activities or
 10  9 operations of a transportation network company or driver when
 10 10 such activities or operations are otherwise lawful under the
 10 11 laws of this state. An ordinance existing on or after July
 10 12 1, 2015, that regulates transportation network companies or
 10 13 drivers in violation of this section is void. A county, city,
 10 14 or other municipality of this state shall not impose a tax on,
 10 15 or require a license for, a transportation network company,
 10 16 driver, or a vehicle operated by a driver where such tax or
 10 17 license relates to providing transportation network company
 10 18 services, or subject a transportation network company or driver
 10 19 to any local rate, entry, or operational requirements, or any
 10 20 other requirements.
 10 21    Sec. 18.  Section 321.1, subsection 8, Code 2015, is amended
 10 22 by adding the following new paragraph:
 10 23    NEW PARAGRAPH.  j.  A transportation network company driver,
 10 24 as defined in section 321N.2, is not a chauffeur.
 10 25    Sec. 19.  Section 325A.1, subsections 6, 7, and 13, Code
 10 26 2015, are amended to read as follows:
 10 27    6.  "Motor carrier" means a person defined in subsection 8,
 10 28 9, or 10 but does not include a transportation network company
 10 29 or a transportation network company driver, as defined in
 10 30 section 321N.2.
 10 31    7.  "Motor carrier certificate" means a certificate issued
 10 32 by the department to any person transporting passengers on any
 10 33 highway of this state for hire, other than a transportation
 10 34 network company or a transportation network company driver, as
 10 35 defined in section 321N.2. This certificate is transferable.
 11  1    13.  "Private carrier" means a person who provides
 11  2 transportation of property or passengers by motor vehicle,
 11  3 is not a for=hire motor carrier or a transportation network
 11  4 company or a transportation network company driver, as defined
 11  5 in section 321N.2, or who transports commodities of which the
 11  6 person is the owner, lessee, or bailee and the transportation
 11  7 is a furtherance of the person's primary business or
 11  8 occupation.
 11  9    Sec. 20.  Section 325A.11, Code 2015, is amended to read as
 11 10 follows:
 11 11    325A.11  Passenger transportation.
 11 12    In addition to the requirements of subchapter 1, motor
 11 13 carriers of passengers and charter carriers shall comply with
 11 14 the requirements of this subchapter.  A transportation network
 11 15 company or a transportation network company driver, as defined
 11 16 in section 321N.2, need not comply with the requirements of
 11 17 subchapter 1 or 2.
 11 18    Sec. 21.  Section 325A.12, subsection 3, Code 2015, is
 11 19 amended by adding the following new paragraph:
 11 20    NEW PARAGRAPH.  e.  A transportation network company or a
 11 21 transportation network company driver, as defined in section
 11 22 321N.2.
 11 23    Sec. 22.  Section 327D.1, Code 2015, is amended to read as
 11 24 follows:
 11 25    327D.1  Applicability of chapter.
 11 26 This chapter applies to intrastate transportation by
 11 27 for=hire common carriers of persons and property. However,
 11 28 this chapter does not apply to regular route motor carriers
 11 29 of passengers or charter carriers, as defined under
 11 30 section 325A.12, or a transportation network company or a
 11 31 transportation network company driver, as defined in section
 11 32 321N.2.
       HF 394 (4) 86
       ns/nh/md

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