LRB-2925/1
MM/MD/AG/EL:amn
2021 - 2022 LEGISLATURE
2021 Assembly BILL 487
August 4, 2021 - Introduced by Representatives August, Rozar, Dittrich,
Kuglitsch, Thiesfeldt, Behnke, Wichgers, Brooks, Brandtjen, Drake,
Tittl, Neylon, Ortiz-Velez and Schraa, cosponsored by Senator Roth.
Referred to Committee on State Affairs.
AB487,1,7 1An Act to amend 102.07 (8) (a), 108.02 (12) (a) and 600.03 (4); and to create
2102.01 (2) (ae), 102.01 (2) (an), 102.01 (2) (ann), 102.01 (2) (anp), 102.01 (2) (dc),
3102.01 (2) (ds), 102.01 (2) (gh), 102.07 (8) (bs), 103.08, 104.01 (2) (b) 6., 108.02
4(12) (ds), 224.55 and 632.985 of the statutes; relating to: delivery network
5couriers and transportation network drivers, Department of Financial
6Institutions' approval to offer portable benefit accounts, providing for
7insurance coverage, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Delivery and transportation network companies
General
This bill provides that under specific circumstances, delivery network couriers
and drivers for transportation network companies (application-based drivers) are
not employees of the delivery network companies and transportation network
companies (network companies) for the purposes of worker's compensation
insurance, minimum wage laws, and unemployment insurance. In the bill,
“application-based driver” is defined as a delivery network courier or participating
driver who provides services through the online-enabled application, software, or
system of a network company.

Under the bill, if a network company does not engage in all of the following
practices, an application-based driver is not an employee of the company: 1)
prescribe specific dates, times of day, or a minimum number of hours during which
the driver must be logged into the network company's online-enabled application,
software, or system; 2) terminate the contract of the driver for not accepting a specific
request for transportation or delivery service request; 3) restrict the driver from
performing services through other network companies except while performing
services through that network company; and 4) restrict the driver from working in
any other lawful occupation or business.
Portable benefit accounts
Under the bill, if certain conditions are satisfied, a financial institution or other
person may obtain approval from the Department of Financial Institutions to offer
portable benefit accounts. A “portable benefit account” is an account administered
by such an approved financial institution or other person (portable benefit account
provider) from which an individual may receive distributions for the purposes
described below. A network company may contribute to a portable benefit account
of an application-based driver who meets certain eligibility requirements (eligible
driver) a percentage of the driver's earnings, and the driver may also contribute to
the portable benefit account. An eligible driver may receive a distribution from a
portable benefit account for the following purposes: 1) to compensate for lost income
due to an illness or accident or loss of work due to certain other events; 2) to transfer
the money to an individual retirement account; or 3) to pay health insurance
premiums. A portable benefit account provider may include an income replacement
benefit to be made available to eligible drivers upon the occurrence of an event under
1) above.