Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB477 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 477
5	5	October 12, 2023 - Introduced by Representatives DALLMAN, BROOKS, DITTRICH,
6	6	DRAKE, ORTIZ-VELEZ, RETTINGER, ROZAR, SNYDER, TITTL, WITTKE and
7	7	WICHGERS, cosponsored by Senators BRADLEY and MARKLEIN. Referred to
8	8	Committee on State Affairs.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to amend 102.07 (8) (a) and 108.02 (12) (a); and to create 102.01 (2) (ae),
11	11	102.01 (2) (an), 102.01 (2) (ann), 102.01 (2) (anp), 102.01 (2) (dc), 102.01 (2) (ds),
12	12	102.01 (2) (gh), 102.07 (8) (bs), 103.08, 104.01 (2) (b) 6., 108.02 (12) (ds), 224.55
13	13	and 632.985 of the statutes; relating to: delivery network couriers and
14	14	transportation network drivers, Department of Financial Institutions'
15	15	approval to offer portable benefit accounts, providing for insurance coverage,
16	16	modifying administrative rules related to accident and sickness insurance, and
17	17	granting rule-making authority.
18	18	Analysis by the Legislative Reference Bureau
19	19	DELIVERY AND TRANSPORTATION NETWORK COMPANIES
20	20	General
21	21	This bill provides that under specific circumstances, delivery network couriers
22	22	and drivers for transportation network companies (application-based drivers) are
23	23	not employees of the delivery network companies and transportation network
24	24	companies (network companies) for the purposes of worker 's compensation
25	25	insurance, minimum wage laws, and unemployment insurance. In the bill,
26	26	“application-based driver” is defined as a delivery network courier or participating
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37	37	driver who provides services through the online-enabled application, software, or
38	38	system of a network company.
39	39	Under the bill, if a network company does not engage in all of the following
40	40	practices, an application-based driver is not an employee of the company: 1)
41	41	prescribe specific dates, times of day, or a minimum number of hours during which
42	42	the driver must be logged into the network company's online-enabled application,
43	43	software, or system; 2) terminate the contract of the driver for not accepting a specific
44	44	request for transportation or delivery service request; 3) restrict the driver from
45	45	performing services through other network companies except while performing
46	46	services through that network company; and 4) restrict the driver from working in
47	47	any other lawful occupation or business.
48	48	Portable benefit accounts
49	49	Under the bill, if certain conditions are satisfied, a financial institution or other
50	50	person may obtain approval from the Department of Financial Institutions to offer
51	51	portable benefit accounts. A “portable benefit account” is an account administered
52	52	by such an approved financial institution or other person (portable benefit account
53	53	provider) from which an individual may receive distributions for the purposes
54	54	described below. A network company may contribute to a portable benefit account
55	55	of an application-based driver who meets certain eligibility requirements (eligible
56	56	driver) a percentage of the driver's earnings, and the driver may also contribute to
57	57	the portable benefit account. An eligible driver may receive a distribution from a
58	58	portable benefit account for the following purposes: 1) to compensate for lost income
59	59	due to an illness or accident or loss of work due to certain other events; 2) to transfer
60	60	the money to an individual retirement account; or 3) to pay health insurance
61	61	premiums. A portable benefit account provider may include an income replacement
62	62	benefit to be made available to eligible drivers upon the occurrence of an event under
63	63	1) above.
64	64	Insurance coverage
65	65	The bill provides that a network company may carry, provide, or otherwise
66	66	make available group or blanket accident and sickness insurance for its
67	67	application-based drivers. A network company that purchases such a policy must
68	68	provide a copy of the policy to the Department of Safety and Professional Services no
69	69	later than 30 days after the commencement of the policy. In addition, the network
70	70	company must notify DSPS at least five days prior to the effective date of the policy's
71	71	cancellation or nonrenewal, and DSPS is treated as a certificate holder for purposes
72	72	of receiving the notice. The bill specifies that the state's worker's compensation laws
73	73	do not apply to such a policy.
74	74	The bill also provides that a network company may carry, provide, or otherwise
75	75	make available group or blanket occupational accident insurance to cover the
76	76	medical expenses and lost income resulting from an injury suffered by an
77	77	application-based driver while engaged on the network company's online-enabled
78	78	application, software, or system. The bill requires that the policy provide, in
79	79	aggregate, at least $1,000,000 of coverage for the medical expenses, short-term
80	80	disability, long-term disability, and survivor benefits. The bill allows the policy to
81	81	prohibit stacking the coverage limit under the policy with coverage limits under - 3 -2023 - 2024 Legislature
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85	85	policies provided by other network companies to increase the coverage limit
86	86	available for a particular injury. The bill provides that if a claim is covered by
87	87	occupational accident insurance maintained by more than one network company, the
88	88	insurer of the network company against whom a claim is filed is entitled to a
89	89	contribution for the pro rata share of coverage attributable to one or more other
90	90	network companies.
91	91	Under the bill, any benefit provided to an application-based driver under an
92	92	occupational accident insurance policy is treated as amounts payable under a
93	93	worker's compensation law or disability benefit for the purpose of determining
94	94	amounts payable under uninsured or underinsured motorist coverage.
95	95	For further information see the state fiscal estimate, which will be printed as
96	96	an appendix to this bill.
97	97	The people of the state of Wisconsin, represented in senate and assembly, do
98	98	enact as follows:
99	99	SECTION 1. 102.01 (2) (ae) of the statutes is created to read:
100	100	102.01 (2) (ae) “Application-based driver” means a delivery network courier
101	101	or participating driver who provides services through the online-enabled
102	102	application, software, or system of a network company.
103	103	SECTION 2. 102.01 (2) (an) of the statutes is created to read:
104	104	102.01 (2) (an) “Delivery network company” means a business that maintains
105	105	an online-enabled application, software, or system to facilitate delivery services
106	106	within this state.
107	107	SECTION 3. 102.01 (2) (ann) of the statutes is created to read:
108	108	102.01 (2) (ann) “Delivery network courier” means an individual who provides
109	109	delivery services through a delivery network company's online-enabled application,
110	110	software, or system.
111	111	SECTION 4. 102.01 (2) (anp) of the statutes is created to read:
112	112	102.01 (2) (anp) “Delivery services” means the fulfillment of a delivery request
113	113	by picking up from any location any item and delivering the item, by using a
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130	130	SECTION 4 ASSEMBLY BILL 477
131	131	passenger vehicle, a bicycle, a scooter, public transportation, or other similar means
132	132	of transportation or by walking, to a location selected by the customer that is
133	133	typically located within 50 miles of the pickup location. “Delivery services” includes
134	134	the selection, collection, or purchase of items by a delivery network courier, as well
135	135	as other tasks incidental to the delivery.
136	136	SECTION 5. 102.01 (2) (dc) of the statutes is created to read:
137	137	102.01 (2) (dc) “Network company” means a delivery network company or a
138	138	transportation network company.
139	139	SECTION 6. 102.01 (2) (ds) of the statutes is created to read:
140	140	102.01 (2) (ds) “Participating driver” has the meaning given in s. 440.40 (3).
141	141	SECTION 7. 102.01 (2) (gh) of the statutes is created to read:
142	142	102.01 (2) (gh) “Transportation network company” has the meaning given in
143	143	s. 440.40 (6).
144	144	SECTION 8. 102.07 (8) (a) of the statutes is amended to read:
145	145	102.07 (8) (a) Except as provided in pars. (b) and, (bm), and (bs), every
146	146	independent contractor is, for the purpose of this chapter, an employee of any
147	147	employer under this chapter for whom he or she is performing service in the course
148	148	of the trade, business, profession or occupation of such employer at the time of the
149	149	injury.
150	150	SECTION 9. 102.07 (8) (bs) of the statutes is created to read:
151	151	102.07 (8) (bs) An application-based driver is not an employee of a network
152	152	company if the company refrains from doing all of the following:
153	153	1. Prescribing specific dates, times of day, or a minimum number of hours
154	154	during which the application-based driver must be logged into the network
155	155	company's online-enabled application, software, or system.
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183	183	SECTION 9
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185	185	2. Terminating the contract of the application-based driver for not accepting
186	186	a specific delivery service request or request for transportation, except as prohibited
187	187	by s. 440.45 (2).
188	188	3. Restricting the application-based driver from performing services through
189	189	other network companies except while performing services through that network
190	190	company.
191	191	4. Restricting the application-based driver from working in any other lawful
192	192	occupation or business.
193	193	SECTION 10. 103.08 of the statutes is created to read:
194	194	103.08 Application-based drivers; portable benefits accounts. (1)
195	195	DEFINITIONS. In this section:
196	196	(a) “Application-based driver” has the meaning given in s. 102.01 (2) (ae).
197	197	(b) “Delivery network company” has the meaning given in s. 102.01 (2) (an).
198	198	(c) “Earnings” means all moneys paid directly to an application-based driver,
199	199	including incentives and bonuses, by a delivery network company or a transportation
200	200	network company, or remitted to the application-based driver from a payment
201	201	facilitated by a delivery network company or transportation network company, but
202	202	not including amounts charged for fees, taxes, or other similar charges. “Earnings”
203	203	does not include any payments for gratuities.
204	204	(d) “Eligible driver” means an application-based driver whose earnings from
205	205	an individual delivery network company or transportation network company totaled
206	206	at least $750, without combining earnings from delivery and rideshare services
207	207	provided through the same company, during a calendar quarter.
208	208	(e) “Network company” means a delivery network company or a transportation
209	209	network company.
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237	237	(f) “Portable benefit account” means an account from which an individual may
238	238	withdraw money for a permissible use under sub. (3) that is administered by a
239	239	portable benefit account provider.
240	240	(g) “Portable benefit account provider” means a financial institution or other
241	241	person authorized under s. 224.55 (3) to offer and administer portable benefit
242	242	accounts.
243	243	(h) “Transportation network company” has the meaning given in s. 440.40 (6).
244	244	(2) CONTRIBUTIONS. (a) A network company may contribute to a portable
245	245	benefit account of an eligible driver a percentage of an eligible driver's earnings in
246	246	the preceding calendar quarter that the driver earned through that company.
247	247	(b) A network company may allow an eligible driver to elect to contribute to the
248	248	eligible driver's portable benefit account, and may deduct the amount elected by the
249	249	eligible driver from the individual's earnings and designate such amount for
250	250	contribution to the portable benefit account.
251	251	(3) QUALIFYING EVENTS. An eligible driver who has money in a portable benefit
252	252	account may receive a distribution of amounts for any of the following:
253	253	(a) To compensate for lost income due to an illness or accident of the driver, loss
254	254	of work due to the birth or adoption of a child of the driver, or loss of work due to a
255	255	declared federal or local state of emergency.
256	256	(b) To transfer the money to an individual retirement account.
257	257	(c) To pay premiums for health insurance coverage in the individual market.
258	258	(4) ELIGIBILITY DURATION. An eligible driver shall remain an eligible driver of
259	259	the delivery network company or transportation network company for 2 calendar
260	260	quarters following the initial quarter of eligibility, regardless of the amount of
261	261	earnings the application-based driver has during those 2 quarters.
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291	291	SECTION 11. 104.01 (2) (b) 6. of the statutes is created to read:
292	292	104.01 (2) (b) 6. An individual excluded under s. 102.07 (8) (bs).
293	293	SECTION 12. 108.02 (12) (a) of the statutes is amended to read:
294	294	108.02 (12) (a) “Employee" means any individual who is or has been performing
295	295	services for pay for an employing unit, whether or not the individual is paid directly
296	296	by the employing unit, except as provided in par. (bm), (c), (d), (dm), or (dn), or (ds).
297	297	SECTION 13. 108.02 (12) (ds) of the statutes is created to read:
298	298	108.02 (12) (ds) Paragraph (a) does not apply to an individual who is
299	299	performing services for an employing unit other than a government unit, an Indian
300	300	tribe, or a nonprofit organization and who is excluded under s. 102.07 (8) (bs).
301	301	SECTION 14. 224.55 of the statutes is created to read:
302	302	224.55 Portable benefit accounts. (1) In this section:
303	303	(a) “Eligible driver” has the meaning given in s. 103.08 (1) (d).
304	304	(b) “Financial institution” has the meaning given in s. 214.01 (1) (jn).
305	305	(c) “Portable benefit account” has the meaning given in s. 103.08 (1) (f).
306	306	(d) “Qualifying event” means an event described in s. 103.08 (3) (a).
307	307	(2) A financial institution or other person may request approval from the
308	308	department to offer portable benefit accounts. If the financial institution or other
309	309	person demonstrates to the satisfaction of the department that the manner in which
310	310	the financial institution or other person will administer the portable benefit account
311	311	will be consistent with s. 103.08 (2) and (3), and the financial institution or other
312	312	person satisfies any applicable rule under sub. (5), the department shall approve the
313	313	request.
314	314	(3) A financial institution or other person approved by the department under
315	315	sub. (2) may offer and administer portable benefit accounts.
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343	343	(4) A financial institution or other person authorized to offer and administer
344	344	portable benefit accounts under sub. (3) may include an income replacement benefit
345	345	to be made available to eligible drivers upon the occurrence of any qualifying event.
346	346	(5) The department may promulgate rules related to the process and
347	347	requirements for the department's approval under sub. (2).
348	348	SECTION 15. 632.985 of the statutes is created to read:
349	349	632.985 Insurance coverage provided by network companies. (1)
350	350	DEFINITIONS. In this section:
351	351	(a) “Application-based driver” has the meaning given in s. 102.01 (2) (ae).
352	352	(b) “Network company” means a delivery network company, as defined in s.
353	353	102.01 (2) (an), or a transportation network company, as defined in s. 440.40 (6).
354	354	(2) ACCIDENT AND SICKNESS INSURANCE. (a) A network company may carry,
355	355	provide, or otherwise make available group or blanket accident and sickness
356	356	insurance coverage for application-based drivers who provide covered services
357	357	through the network company's network.
358	358	(b) No later than 30 days after the commencement of a policy under this
359	359	subsection, a network company that purchases an insurance policy described in par.
360	360	(a) shall provide to the department of safety and professional services a copy of the
361	361	group or blanket insurance policy. At least 5 days prior to the effective date of a
362	362	cancellation or nonrenewal of the policy, the network company shall file with the
363	363	department of safety and professional services a notice of the cancellation or
364	364	nonrenewal, and the secretary of safety and professional services shall be treated as
365	365	a certificate holder for purposes of receiving the notice.
366	366	(c) Chapter 102 does not apply to a group or blanket accident and sickness
367	367	insurance policy described in par. (a).
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395	395	SECTION 15
396	396	ASSEMBLY BILL 477
397	397	(3) OCCUPATIONAL ACCIDENT INSURANCE. (a) A network company may carry,
398	398	provide, or otherwise make available group or blanket occupational accident
399	399	insurance to cover the medical expenses and lost income resulting from an injury
400	400	suffered by an application-based driver while engaged on the network company's
401	401	online-enabled application, software, or system. For purposes of this paragraph, an
402	402	application-based driver is engaged on the network company's online-enabled
403	403	application, software, or system during the time beginning when the
404	404	application-based driver accepts a rideshare request or delivery request and ending
405	405	when the application-based driver completes that rideshare request or delivery
406	406	request.
407	407	(b) A policy under this subsection shall provide, in aggregate, at least
408	408	$1,000,000 of coverage for the medical expenses, short-term disability, long-term
409	409	disability, and survivor benefits.
410	410	(c) If a claim is covered by occupational accident insurance maintained by more
411	411	than one network company, the insurer of the network company against whom a
412	412	claim is filed shall be entitled to a contribution for the pro rata share of coverage
413	413	attributable to one or more other network companies.
414	414	(d) A policy issued or maintained by a network company may provide that,
415	415	regardless of the number of policies involved, claims made, premiums shown on the
416	416	policy, or premiums paid, the limits for any coverage under the policy may not be
417	417	added to the limits for similar occupational accident insurance coverage provided by
418	418	another network company to determine the limit of occupational accident insurance
419	419	coverage available arising from any one injury.
420	420	(e) Any benefit provided to an application-based driver under an occupational
421	421	accident insurance policy described in par. (a) shall be treated as amounts payable
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448	448	SECTION 15 ASSEMBLY BILL 477
449	449	under a worker's compensation law or disability benefit for the purpose of
450	450	determining amounts payable under insurance provided under s. 632.32 (4) or (4m).
451	451	SECTION 16. INS 3.14 (6) (intro.), (a), (b) and (c) of the administrative code are
452	452	amended to read:
453	453	INS 3.14 (6) (intro.) ELIGIBLE GROUPS. In accordance with s. 600.03 (23), Stats.,
454	454	an eligible group includes any of the following:
455	455	(a) The members of the board of directors of a corporation are eligible to be
456	456	covered under a group accident and sickness policy issued to such corporation,
457	457	corporation.
458	458	(b) The individual members of member organizations of an association, as
459	459	defined in s. 600.03 (23), Stats., are eligible to be covered under a group accident and
460	460	sickness policy issued to such association insuring employees of such association and
461	461	employees of member organizations of such association, and.
462	462	(c) The individuals supplying raw materials to a single processing plant and
463	463	the employees of such processing plant are eligible to be covered under a group
464	464	accident and sickness policy issued to such processing plant.
465	465	SECTION 17. INS 3.14 (6) (d) of the administrative code is created to read:
466	466	INS 3.14 (6) (d) Application-based drivers, as defined in s. 632.985 (1) (a),
467	467	Stats., of a network company, as defined in s. 632.985 (1) (b), Stats., covered under
468	468	a group accident and sickness policy issued to the network company.
469	469	SECTION 18. INS 3.15 (4) (a) of the administrative code is amended to read:
470	470	INS 3.15 (4) (a) In accordance with the provisions of s. 600.03 (4), Stats., the
471	471	following are eligible for blanket accident and health insurance: 1. Volunteer fire
472	472	departments, 2. National guard units, 3. Newspaper delivery carriers, 4. Dependents
473	473	of students, 5. Volunteer civil defense organizations, 6. Volunteer auxiliary police
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501	501	SECTION 18
502	502	ASSEMBLY BILL 477
503	503	organizations, 7. Law enforcement agencies, 8. Cooperatives organized under ch.
504	504	185, Stats., on a membership basis without capital stock, 9. Registered guests in a
505	505	motel, hotel, or resort, 10. Members or members and advisors of fraternal
506	506	organizations including women's auxiliaries of such organizations and fraternal
507	507	youth organizations, 11. Associations of sports officials, 12. Purchasers of protective
508	508	athletic equipment, 13. Migrant workers, 14. Participants in racing meets, 15.
509	509	Patrons or guests of a recreational facility or resort, 16. Application-based drivers,
510	510	as defined in s. 102.01 (2) (ae), Stats., of a network company, as defined in s. 632.985
511	511	(1) (b), Stats.
512	512	SECTION 19.0Effective dates. This act takes effect on the day after publication,
513	513	except as follows:
514	514	(1) The treatment of administrative rules takes effect as provided in s. 227.265.
515	515	(END)
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