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HF 545

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

2025-2026 Regular Session

HF 545 mandates delivery networks share driver activity data; if the company withholds or lacks records in a service-period dispute, insurers assume primary liability for claims.

Referred to Commerce.
#businessentities #commoncarriers #driving
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Bill Summary · HF 545

Summary — HF 545 (2025): Regulation of Delivery Network Companies and Drivers

Status: Introduced Feb 20, 2025; Amendments H‑1090 (filed Mar 14) and H‑1136 (filed Mar 19); Referred to Commerce Apr 3, 2025

Purpose

HF 545 establishes regulatory rules governing delivery network companies (digital platforms that connect drivers to delivery requests), delivery network drivers, and related insurance and claims processes. The bill clarifies insurer and company responsibilities in crash/claims situations, defines the company‑driver relationship, addresses driver classification, and amends related motor carrier definitions. Penalties and effective date provisions are noted in the bill title, though specific effective dates are not shown in the provided excerpt.

Key provisions

  • Definition / timing of coverage

    • The bill (as amended) revises the definition of “delivery service period” (amendment H‑1136 replaces prior language; full replacement text not shown in excerpt).
    • If there is a dispute about when the delivery service period began or ended, and the delivery network company does not have, did not retain, or fails to provide required information under section 321Q.3(7), the insurer(s) providing coverage under 321Q.3(2) must assume primary liability for the claim.

  • Claims‑time information sharing

    • During a claims coverage investigation, the delivery network company and any applicable insurers must cooperate and exchange relevant information, including precise times the driver was active on the company’s digital network in the 12 hours before and after a crash.
    • Parties must disclose clear descriptions of any applicable automobile insurance provided under the chapter, including limits and exclusions.

  • Company‑driver relationship (new Section 321Q.6)

    • The company is not deemed to control, direct, or manage a driver who connects to its digital network except as agreed in a written contract.
    • The original text states a delivery network driver “shall be considered an independent contractor and shall not be considered an agent or employee” of the company. Amendment H‑1090 modifies that language: a driver “may be considered an independent contractor” (softening the mandatory classification).

  • Related statutory change

    • Amendments to Code section 325A.1 (subsecs. 7, 12, 15) clarify that a “motor carrier” definition excludes a transportation network company and its drivers (text in excerpt is partial).

Who is affected

  • Delivery network companies (platform operators)
  • Delivery network drivers (who use personal vehicles to provide deliveries)
  • Auto insurers providing coverage to companies, drivers, or both
  • Crash claimants and other affected third parties
  • Entities regulated under motor carrier statutes

Procedural / timeline notes

  • Introduced and placed on calendar: Feb 20, 2025
  • Amendment H‑1090 (changes independent contractor language) filed Mar 14, 2025 (sponsor: Rep. Scheetz)
  • Amendment H‑1136 (revises “delivery service period” wording) filed Mar 19, 2025 (sponsor: Rep. Latham)
  • Referred to the House Commerce Committee: Apr 3, 2025

Potential impacts / considerations

  • Shifts initial claims liability to insurers when a company fails to provide records about driver active times — could speed claim payments but increase insurer exposure.
  • Mandatory data‑sharing and precise timestamp requirements may affect platform operations, data retention, and privacy practices.
  • The change from mandatory to permissive independent contractor language (H‑1090) reduces the bill’s certainty about driver classification, leaving room for case‑by‑case determinations.
  • Clarifying that transportation network companies/drivers are not motor carriers could affect applicability of other motor carrier regulations.

Note: This summary is based on the provided bill excerpts; full bill text may include additional provisions (penalties, definitions, and effective dates) not shown here.

Compiled from official sources — confirm details with the bill’s official record.

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