HB 2175

This bill provides that a delivery network company ("DNC"") is governed exclusively by this bill and is not subject to the authority of the department of safety (""department"") to regulate delivery operations under other law. Further, a DNC is not deemed t o own, control, operate, or manage the motor vehicles used by drivers, but excludes deliveries requiring over 50 miles of travel, services by for-hire vehicles, and street hail services. DNC service begins when a driver accepts a request through the digi ta l network, continues while the driver transports the products, and ends when the driver removes the products from the motor vehicle. This bill requires a DNC to adhere to all of the following requirements:  Maintain an agent for service of process in this state.  Provide customers with applicable rates and the option to receive an estimated total before purchase.  Use a software application or website to display a picture of the driver and the vehicle's license plate number.  Transmit an electronic receipt within a reasonable time listing the trip origin and destination, an itemization of items ordered, and an itemization of fees.  Implement and provide notice of a zero-tolerance policy regarding the use of drugs or alcohol while a driver provides services or is logged into the network. DRIVER QUALIFICATIONS This bill requires a DNC to require, before permitting an individual to act as a driver, that the individual submit an application containing the individual's address, age, driver license number, driving history, and proof of registration and liability c overage, prior to becoming a driver. The DNC must also conduct local and national criminal background checks, conduct a national sex offender registry search, and obtain motor vehicle records for each prospective driver. This bill also requires the DNC to maintain individual trip records for at least one year, and driver records for at least one year after the driver's activation on the network ends. This bill prohibits a DNC from permitting an individual to act as a driver if the individual meets any of the following criteria:  Has been convicted of more than three moving violations in the prior three-year period, or one major moving violation in the past three-year period, including attempting to evade the police, reckless driving, or driving on a suspended or revoked license.  Has been convicted, within the past seven years, of driving under the influence of drugs or alcohol, fraud, any sexual offense, use of a motor vehicle to commit a felony, a crime involving property damage, theft, any crime involving acts of violence, or acts of terror.  Is a match in the national sex offender registry.  Does not possess a valid driver license, proof of registration for any motor vehicle used to provide services, or proof of financial responsibility.  Is not at least 19. LIABILITY INSURANCE COVERAGE This bill requires that, when a driver is logged into the digital network but not providing services, the driver maintain liability insurance meeting the minimum coverage requirements for proof of financial responsibility. The DNC must maintain liability insurance that provides coverage if the driver's own policy excludes coverage or does not meet these minimum limits. While a driver is providing services, this bill requires the insurance include (i) primary automobile liability insurance that recognizes the driver's provision of DNC services and (ii) provide coverage of at least $100, 000 for death, personal bodily inj ury, and property damage. These requirements may be satisfied by insurance maintained by the driver, the DNC, or a combination of both. If the driver's insurance lapses, denies a claim, or otherwise ceases ceases, the DNC's insurance provide coverage be gi nning with the first dollar of a claim. INSURANCE DISCLOSURE AND EXCLUSIONS This bill authorizes an insurer to exclude any and all coverage and the duty to defend for losses occurring while a vehicle provides DNC services, if the exclusion is expressly set forth in the policy. The right to exclude coverage and the duty to indem nify and defend may apply to any coverage included in the automobile liability insurance policy. Insurers must disclose in a prominent place on the application whether the policy provides coverage for DNC services. This bill requires DNCs and insurers to cooperate in claims investigations, including exchanging information regarding the precise times a driver logged on and off the digital network during the 24-hour period preceding an accident and the insurer to dis close to one another a clear description of the coverage, exclusions, and limits provided under any insurance policy each party issued or maintained. SAFETY POLICIES This bill requires a DNC to establish procedures for customers to report complaints regarding drivers the customer reasonably suspects of being under the influence of drugs or alcohol. Upon receiving such a complaint, the DNC must immediately suspend th e driver's access to the digital platform for the duration of an investigation. Relevant records of complaints must be maintained for at least two years after the complaint was received. This bill prohibits drivers from soliciting or accepting street sales or cash payments. All payments for delivery services must be made electronically through the DNC's digital network. NONDISCRIMINATION POLICY This bill requires a DNC to adopt a nondiscrimination policy for customers and prohibits the imposition of additional charges for providing services to persons with physical disabilities because of such disability. This bill generally prohibits a DNC from disclosing a customer's personally identifiable information to a third party without consent, unless required by legal obligation or to defend the terms of service. However, a DNC may share a customer's name and telephone number with a driver to facilitate identification of the customer or communication. ON APRIL 16, 2026, THE HOUSE ADOPTED AMENDMENTS #1, 2, AND 3, AND PASSED HOUSE BILL 2175, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, require a delivery network company (DNC) or DNC driver to comply with the automobile liability insurance requirements of this amendment on or after July 1, 2026. As used in this amendment, a ""DNC driver"" means an individual who provides delivery services through a DNC's digital network using a personal vehicle. A DNC must ens ure that, during the delivery availability period and delivery service period, primary automobile liability insurance is in place that recognizes the driver is a DNC driver or that does not exclude coverage for use of a personal vehicle to provide deliver ie s. ""DELIVERY AVAILABILITY PERIOD"" DEFINED As used in this amendment, the ""delivery availability period"" means the period when a DNC driver (i) is operating a personal vehicle; (ii) has logged on to a digital network and is available to receive requests to provide delivery services from a DNC; an d (iii) is not providing delivery services or operating in the delivery service period. ""DELIVERY SERVICE PERIOD"" DEFINED As used in this amendment, the ""delivery service period"" means the period (i) beginning when a DNC driver starts operating a personal vehicle enroute to pick up a good for delivery or series of deliveries as documented via a digital network controlled by a DNC; (ii) continuing while the driver transports the requested deliveries; and (iii) ending on the delivery of the requested goods. INSURANCE REQUIREMENTS This amendment requires a DNC driver, a DNC, or a combination of the two to maintain insurance that insures the driver for liability to third parties during the delivery availability period and the delivery service period. Such insurance must have covera ge of at least $50, 000 for bodily injury sustained by any one person in an accident; $100, 000 for bodily injury sustained by all persons injured in an accident; and $25, 000 for all damages arising out of damage to or destruction of property. If insurance c overage maintained by a DNC driver has lapsed or does not provide required coverage, then the insurance maintained by the DNC must provide the coverage required by this amendment, and the insurance maintained by the DNC has a duty to defend the claim. Fu rther, coverage under an automobile insurance policy maintained by the DNC must not be dependent on another motor vehicle liability insurer or insurer first denying a claim. The required insurance may be obtained from an insurer authorized to do business i n this state or with a surplus lines insurer eligible under the Surplus Lines Insurance Act. This amendment provides that the insurance required by this bill satisfies the Tennessee Financial Responsibility Law of 1977 while a driver is logged into the DNC's digital network or while the driver is engaged in providing delivery services. However, it does not relieve a driver from the financial responsibility requirements when the driver is not logged into the DNC's digital network nor providing delivery services. DISCLOSURE REQUIREMENTS This amendment requires a DNC to disclose, in writing, (i) the insurance coverage and limits for each coverage that the DNC provides while the DNC driver uses a motor vehicle in connection with a DNC's digital network; and (ii) that the DNC driver's own insurance policy may not provide coverage during the delivery availability period and the delivery service period; to a DNC driver before a driver is allowed to accept a request for delivery services. LIABILITY INSURERS This amendment authorizes an insurer that writes automobile liability insurance in this state to exclude any and all coverage and the duty to defend or indemnify for any loss or injury that occurs during the delivery availability period and the delivery service period. Such right to exclude coverage and the duty to indemnify and defend may apply to any coverage included in an automobile liability insurance policy. Further, a motor vehicle liability insurer that defends or indemnifies a claim against a DN C driver that is excluded under the terms of its policy may seek recovery against the insurer providing coverage for the DNC pursuant to this amendment if the claim occurs during the delivery availability period or the delivery service period. This amendment requires a DNC or its insurer to cooperate with all insurers that are involved in a claims coverage investigation to facilitate the exchange of information. The DNC or its insurer must immediately provide the precise times that a DNC driv er began and ended the delivery availability period or the delivery service period in the 12 hours immediately preceding and after the accident, upon request. An insurer providing coverage for a DNC pursuant to this amendment must disclose the applicable c overages, exclusions, and limits provided under the automobile insurance upon request by another insurer involved in a claim. The insurer of a DNC providing coverage pursuant to this amendment must assume primary liability for a claim when there is a dis pute about the delivery availability period or delivery service period began or ended and the DNC does not have information available to settle the dispute. AMENDMENT #2 makes the following changes:  Revises the definition of the ""delivery available period"" to mean the period when a DNC driver is (i) operating a person vehicle; (ii) has logged on to a digital network and is eligible to receive requests to provide delivery services; and (iii) is not providing delivery services, rather than is available to receive requests to provide delivery services.  Removes the provision that provides that a DNC service begins when a driver accepts a request for delivery services, continues while the driver transports the products, and ends upon delivery of the requested goods. AMENDMENT #3 changes the effective date of the bill from July 1, 2026, to January 1, 2027."