SB 2458

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 to 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 s treet hail services . DNC service begins when a driver accepts a request through the digital network, continues while the driver transports the produ cts, and ends when the driver removes the products from the motor vehicle. T his bill requires a DNC to adhere to all of the following requirements:  M aintain 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 coverage, 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 i ndividual 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. T he DNC must maintain liability insurance that provides coverage if the driver's own policy excludes coverage or does not meet these minimum limits. W hile a driver is providing services, this bill requires the insurance include (i) p rimary automobile liability insurance that recognizes the driver's provision of DNC services and (ii) provide c overage of at least $100, 000 for death, personal bodily injury, 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 begi 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 indemnify and defend may apply to any coverage included in the automobile liability insurance policy. I nsurers 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 disclose 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 suspect s of being under the influence of drugs or alcohol. Upon receiving such a complaint, the DNC must immediately suspend the 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."