Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB559 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 SENATE BILL 559
5	5	October 23, 2023 - Introduced by Senators BRADLEY and MARKLEIN, cosponsored by
6	6	Representatives DALLMAN, BROOKS, DITTRICH, DRAKE, ORTIZ-VELEZ,
7	7	RETTINGER, ROZAR, SNYDER, TITTL, WICHGERS and WITTKE. Referred to
8	8	Committee on Utilities and Technology.
9	9	AN ACT to amend 102.07 (8) (a) and 108.02 (12) (a); and to create 102.01 (2) (ae),
10	10	102.01 (2) (an), 102.01 (2) (ann), 102.01 (2) (anp), 102.01 (2) (dc), 102.01 (2) (ds),
11	11	102.01 (2) (gh), 102.07 (8) (bs), 103.08, 104.01 (2) (b) 6., 108.02 (12) (ds), 224.55
12	12	and 632.985 of the statutes; relating to: delivery network couriers and
13	13	transportation network drivers, Department of Financial Institutions'
14	14	approval to offer portable benefit accounts, providing for insurance coverage,
15	15	modifying administrative rules related to accident and sickness insurance, and
16	16	granting rule-making authority.
17	17	Analysis by the Legislative Reference Bureau
18	18	DELIVERY AND TRANSPORTATION NETWORK COMPANIES
19	19	General
20	20	This bill provides that under specific circumstances, delivery network couriers
21	21	and drivers for transportation network companies (application-based drivers) are
22	22	not employees of the delivery network companies and transportation network
23	23	companies (network companies) for the purposes of worker 's compensation
24	24	insurance, minimum wage laws, and unemployment insurance. In the bill,
25	25	“application-based driver” is defined as a delivery network courier or participating
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35	35	SENATE BILL 559
36	36	driver who provides services through the online-enabled application, software, or
37	37	system of a network company.
38	38	Under the bill, if a network company does not engage in all of the following
39	39	practices, an application-based driver is not an employee of the company: 1)
40	40	prescribe specific dates, times of day, or a minimum number of hours during which
41	41	the driver must be logged into the network company's online-enabled application,
42	42	software, or system; 2) terminate the contract of the driver for not accepting a specific
43	43	request for transportation or delivery service request; 3) restrict the driver from
44	44	performing services through other network companies except while performing
45	45	services through that network company; and 4) restrict the driver from working in
46	46	any other lawful occupation or business.
47	47	Portable benefit accounts
48	48	Under the bill, if certain conditions are satisfied, a financial institution or other
49	49	person may obtain approval from the Department of Financial Institutions to offer
50	50	portable benefit accounts. A “portable benefit account” is an account administered
51	51	by such an approved financial institution or other person (portable benefit account
52	52	provider) from which an individual may receive distributions for the purposes
53	53	described below. A network company may contribute to a portable benefit account
54	54	of an application-based driver who meets certain eligibility requirements (eligible
55	55	driver) a percentage of the driver's earnings, and the driver may also contribute to
56	56	the portable benefit account. An eligible driver may receive a distribution from a
57	57	portable benefit account for the following purposes: 1) to compensate for lost income
58	58	due to an illness or accident or loss of work due to certain other events; 2) to transfer
59	59	the money to an individual retirement account; or 3) to pay health insurance
60	60	premiums. A portable benefit account provider may include an income replacement
61	61	benefit to be made available to eligible drivers upon the occurrence of an event under
62	62	1) above.
63	63	Insurance coverage
64	64	The bill provides that a network company may carry, provide, or otherwise
65	65	make available group or blanket accident and sickness insurance for its
66	66	application-based drivers. A network company that purchases such a policy must
67	67	provide a copy of the policy to the Department of Safety and Professional Services no
68	68	later than 30 days after the commencement of the policy. In addition, the network
69	69	company must notify DSPS at least five days prior to the effective date of the policy's
70	70	cancellation or nonrenewal, and DSPS is treated as a certificate holder for purposes
71	71	of receiving the notice. The bill specifies that the state's worker's compensation laws
72	72	do not apply to such a policy.
73	73	The bill also provides that a network company may carry, provide, or otherwise
74	74	make available group or blanket occupational accident insurance to cover the
75	75	medical expenses and lost income resulting from an injury suffered by an
76	76	application-based driver while engaged on the network company's online-enabled
77	77	application, software, or system. The bill requires that the policy provide, in
78	78	aggregate, at least $1,000,000 of coverage for the medical expenses, short-term
79	79	disability, long-term disability, and survivor benefits. The bill allows the policy to
80	80	prohibit stacking the coverage limit under the policy with coverage limits under - 3 -2023 - 2024 Legislature
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83	83	SENATE BILL 559
84	84	policies provided by other network companies to increase the coverage limit
85	85	available for a particular injury. The bill provides that if a claim is covered by
86	86	occupational accident insurance maintained by more than one network company, the
87	87	insurer of the network company against whom a claim is filed is entitled to a
88	88	contribution for the pro rata share of coverage attributable to one or more other
89	89	network companies.
90	90	Under the bill, any benefit provided to an application-based driver under an
91	91	occupational accident insurance policy is treated as amounts payable under a
92	92	worker's compensation law or disability benefit for the purpose of determining
93	93	amounts payable under uninsured or underinsured motorist coverage.
94	94	For further information see the state fiscal estimate, which will be printed as
95	95	an appendix to this bill.
96	96	The people of the state of Wisconsin, represented in senate and assembly, do
97	97	enact as follows:
98	98	SECTION 1. 102.01 (2) (ae) of the statutes is created to read:
99	99	102.01 (2) (ae) “Application-based driver” means a delivery network courier
100	100	or participating driver who provides services through the online-enabled
101	101	application, software, or system of a network company.
102	102	SECTION 2. 102.01 (2) (an) of the statutes is created to read:
103	103	102.01 (2) (an) “Delivery network company” means a business that maintains
104	104	an online-enabled application, software, or system to facilitate delivery services
105	105	within this state.
106	106	SECTION 3. 102.01 (2) (ann) of the statutes is created to read:
107	107	102.01 (2) (ann) “Delivery network courier” means an individual who provides
108	108	delivery services through a delivery network company's online-enabled application,
109	109	software, or system.
110	110	SECTION 4. 102.01 (2) (anp) of the statutes is created to read:
111	111	102.01 (2) (anp) “Delivery services” means the fulfillment of a delivery request
112	112	by picking up from any location any item and delivering the item, by using a
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129	129	SECTION 4 SENATE BILL 559
130	130	passenger vehicle, a bicycle, a scooter, public transportation, or other similar means
131	131	of transportation or by walking, to a location selected by the customer that is
132	132	typically located within 50 miles of the pickup location. “Delivery services” includes
133	133	the selection, collection, or purchase of items by a delivery network courier, as well
134	134	as other tasks incidental to the delivery.
135	135	SECTION 5. 102.01 (2) (dc) of the statutes is created to read:
136	136	102.01 (2) (dc) “Network company” means a delivery network company or a
137	137	transportation network company.
138	138	SECTION 6. 102.01 (2) (ds) of the statutes is created to read:
139	139	102.01 (2) (ds) “Participating driver” has the meaning given in s. 440.40 (3).
140	140	SECTION 7. 102.01 (2) (gh) of the statutes is created to read:
141	141	102.01 (2) (gh) “Transportation network company” has the meaning given in
142	142	s. 440.40 (6).
143	143	SECTION 8. 102.07 (8) (a) of the statutes is amended to read:
144	144	102.07 (8) (a) Except as provided in pars. (b) and, (bm), and (bs), every
145	145	independent contractor is, for the purpose of this chapter, an employee of any
146	146	employer under this chapter for whom he or she is performing service in the course
147	147	of the trade, business, profession or occupation of such employer at the time of the
148	148	injury.
149	149	SECTION 9. 102.07 (8) (bs) of the statutes is created to read:
150	150	102.07 (8) (bs) An application-based driver is not an employee of a network
151	151	company if the company refrains from doing all of the following:
152	152	1. Prescribing specific dates, times of day, or a minimum number of hours
153	153	during which the application-based driver must be logged into the network
154	154	company's online-enabled application, software, or system.
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182	182	SECTION 9
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184	184	2. Terminating the contract of the application-based driver for not accepting
185	185	a specific delivery service request or request for transportation, except as prohibited
186	186	by s. 440.45 (2).
187	187	3. Restricting the application-based driver from performing services through
188	188	other network companies except while performing services through that network
189	189	company.
190	190	4. Restricting the application-based driver from working in any other lawful
191	191	occupation or business.
192	192	SECTION 10. 103.08 of the statutes is created to read:
193	193	103.08 Application-based drivers; portable benefits accounts. (1)
194	194	DEFINITIONS. In this section:
195	195	(a) “Application-based driver” has the meaning given in s. 102.01 (2) (ae).
196	196	(b) “Delivery network company” has the meaning given in s. 102.01 (2) (an).
197	197	(c) “Earnings” means all moneys paid directly to an application-based driver,
198	198	including incentives and bonuses, by a delivery network company or a transportation
199	199	network company, or remitted to the application-based driver from a payment
200	200	facilitated by a delivery network company or transportation network company, but
201	201	not including amounts charged for fees, taxes, or other similar charges. “Earnings”
202	202	does not include any payments for gratuities.
203	203	(d) “Eligible driver” means an application-based driver whose earnings from
204	204	an individual delivery network company or transportation network company totaled
205	205	at least $750, without combining earnings from delivery and rideshare services
206	206	provided through the same company, during a calendar quarter.
207	207	(e) “Network company” means a delivery network company or a transportation
208	208	network company.
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235	235	SECTION 10 SENATE BILL 559
236	236	(f) “Portable benefit account” means an account from which an individual may
237	237	withdraw money for a permissible use under sub. (3) that is administered by a
238	238	portable benefit account provider.
239	239	(g) “Portable benefit account provider” means a financial institution or other
240	240	person authorized under s. 224.55 (3) to offer and administer portable benefit
241	241	accounts.
242	242	(h) “Transportation network company” has the meaning given in s. 440.40 (6).
243	243	(2) CONTRIBUTIONS. (a) A network company may contribute to a portable
244	244	benefit account of an eligible driver a percentage of an eligible driver's earnings in
245	245	the preceding calendar quarter that the driver earned through that company.
246	246	(b) A network company may allow an eligible driver to elect to contribute to the
247	247	eligible driver's portable benefit account, and may deduct the amount elected by the
248	248	eligible driver from the individual's earnings and designate such amount for
249	249	contribution to the portable benefit account.
250	250	(3) QUALIFYING EVENTS. An eligible driver who has money in a portable benefit
251	251	account may receive a distribution of amounts for any of the following:
252	252	(a) To compensate for lost income due to an illness or accident of the driver, loss
253	253	of work due to the birth or adoption of a child of the driver, or loss of work due to a
254	254	declared federal or local state of emergency.
255	255	(b) To transfer the money to an individual retirement account.
256	256	(c) To pay premiums for health insurance coverage in the individual market.
257	257	(4) ELIGIBILITY DURATION. An eligible driver shall remain an eligible driver of
258	258	the delivery network company or transportation network company for 2 calendar
259	259	quarters following the initial quarter of eligibility, regardless of the amount of
260	260	earnings the application-based driver has during those 2 quarters.
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288	288	SECTION 11
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290	290	SECTION 11. 104.01 (2) (b) 6. of the statutes is created to read:
291	291	104.01 (2) (b) 6. An individual excluded under s. 102.07 (8) (bs).
292	292	SECTION 12. 108.02 (12) (a) of the statutes is amended to read:
293	293	108.02 (12) (a) “Employee" means any individual who is or has been performing
294	294	services for pay for an employing unit, whether or not the individual is paid directly
295	295	by the employing unit, except as provided in par. (bm), (c), (d), (dm), or (dn), or (ds).
296	296	SECTION 13. 108.02 (12) (ds) of the statutes is created to read:
297	297	108.02 (12) (ds) Paragraph (a) does not apply to an individual who is
298	298	performing services for an employing unit other than a government unit, an Indian
299	299	tribe, or a nonprofit organization and who is excluded under s. 102.07 (8) (bs).
300	300	SECTION 14. 224.55 of the statutes is created to read:
301	301	224.55 Portable benefit accounts. (1) In this section:
302	302	(a) “Eligible driver” has the meaning given in s. 103.08 (1) (d).
303	303	(b) “Financial institution” has the meaning given in s. 214.01 (1) (jn).
304	304	(c) “Portable benefit account” has the meaning given in s. 103.08 (1) (f).
305	305	(d) “Qualifying event” means an event described in s. 103.08 (3) (a).
306	306	(2) A financial institution or other person may request approval from the
307	307	department to offer portable benefit accounts. If the financial institution or other
308	308	person demonstrates to the satisfaction of the department that the manner in which
309	309	the financial institution or other person will administer the portable benefit account
310	310	will be consistent with s. 103.08 (2) and (3), and the financial institution or other
311	311	person satisfies any applicable rule under sub. (5), the department shall approve the
312	312	request.
313	313	(3) A financial institution or other person approved by the department under
314	314	sub. (2) may offer and administer portable benefit accounts.
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341	341	SECTION 14 SENATE BILL 559
342	342	(4) A financial institution or other person authorized to offer and administer
343	343	portable benefit accounts under sub. (3) may include an income replacement benefit
344	344	to be made available to eligible drivers upon the occurrence of any qualifying event.
345	345	(5) The department may promulgate rules related to the process and
346	346	requirements for the department's approval under sub. (2).
347	347	SECTION 15. 632.985 of the statutes is created to read:
348	348	632.985 Insurance coverage provided by network companies. (1)
349	349	DEFINITIONS. In this section:
350	350	(a) “Application-based driver” has the meaning given in s. 102.01 (2) (ae).
351	351	(b) “Network company” means a delivery network company, as defined in s.
352	352	102.01 (2) (an), or a transportation network company, as defined in s. 440.40 (6).
353	353	(2) ACCIDENT AND SICKNESS INSURANCE. (a) A network company may carry,
354	354	provide, or otherwise make available group or blanket accident and sickness
355	355	insurance coverage for application-based drivers who provide covered services
356	356	through the network company's network.
357	357	(b) No later than 30 days after the commencement of a policy under this
358	358	subsection, a network company that purchases an insurance policy described in par.
359	359	(a) shall provide to the department of safety and professional services a copy of the
360	360	group or blanket insurance policy. At least 5 days prior to the effective date of a
361	361	cancellation or nonrenewal of the policy, the network company shall file with the
362	362	department of safety and professional services a notice of the cancellation or
363	363	nonrenewal, and the secretary of safety and professional services shall be treated as
364	364	a certificate holder for purposes of receiving the notice.
365	365	(c) Chapter 102 does not apply to a group or blanket accident and sickness
366	366	insurance policy described in par. (a).
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394	394	SECTION 15
395	395	SENATE BILL 559
396	396	(3) OCCUPATIONAL ACCIDENT INSURANCE. (a) A network company may carry,
397	397	provide, or otherwise make available group or blanket occupational accident
398	398	insurance to cover the medical expenses and lost income resulting from an injury
399	399	suffered by an application-based driver while engaged on the network company's
400	400	online-enabled application, software, or system. For purposes of this paragraph, an
401	401	application-based driver is engaged on the network company's online-enabled
402	402	application, software, or system during the time beginning when the
403	403	application-based driver accepts a rideshare request or delivery request and ending
404	404	when the application-based driver completes that rideshare request or delivery
405	405	request.
406	406	(b) A policy under this subsection shall provide, in aggregate, at least
407	407	$1,000,000 of coverage for the medical expenses, short-term disability, long-term
408	408	disability, and survivor benefits.
409	409	(c) If a claim is covered by occupational accident insurance maintained by more
410	410	than one network company, the insurer of the network company against whom a
411	411	claim is filed shall be entitled to a contribution for the pro rata share of coverage
412	412	attributable to one or more other network companies.
413	413	(d) A policy issued or maintained by a network company may provide that,
414	414	regardless of the number of policies involved, claims made, premiums shown on the
415	415	policy, or premiums paid, the limits for any coverage under the policy may not be
416	416	added to the limits for similar occupational accident insurance coverage provided by
417	417	another network company to determine the limit of occupational accident insurance
418	418	coverage available arising from any one injury.
419	419	(e) Any benefit provided to an application-based driver under an occupational
420	420	accident insurance policy described in par. (a) shall be treated as amounts payable
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447	447	SECTION 15 SENATE BILL 559
448	448	under a worker's compensation law or disability benefit for the purpose of
449	449	determining amounts payable under insurance provided under s. 632.32 (4) or (4m).
450	450	SECTION 16. INS 3.14 (6) (intro.), (a), (b) and (c) of the administrative code are
451	451	amended to read:
452	452	INS 3.14 (6) (intro.) ELIGIBLE GROUPS. In accordance with s. 600.03 (23), Stats.,
453	453	an eligible group includes any of the following:
454	454	(a) The members of the board of directors of a corporation are eligible to be
455	455	covered under a group accident and sickness policy issued to such corporation,
456	456	corporation.
457	457	(b) The individual members of member organizations of an association, as
458	458	defined in s. 600.03 (23), Stats., are eligible to be covered under a group accident and
459	459	sickness policy issued to such association insuring employees of such association and
460	460	employees of member organizations of such association, and.
461	461	(c) The individuals supplying raw materials to a single processing plant and
462	462	the employees of such processing plant are eligible to be covered under a group
463	463	accident and sickness policy issued to such processing plant.
464	464	SECTION 17. INS 3.14 (6) (d) of the administrative code is created to read:
465	465	INS 3.14 (6) (d) Application-based drivers, as defined in s. 632.985 (1) (a),
466	466	Stats., of a network company, as defined in s. 632.985 (1) (b), Stats., covered under
467	467	a group accident and sickness policy issued to the network company.
468	468	SECTION 18. INS 3.15 (4) (a) of the administrative code is amended to read:
469	469	INS 3.15 (4) (a) In accordance with the provisions of s. 600.03 (4), Stats., the
470	470	following are eligible for blanket accident and health insurance: 1. Volunteer fire
471	471	departments, 2. National guard units, 3. Newspaper delivery carriers, 4. Dependents
472	472	of students, 5. Volunteer civil defense organizations, 6. Volunteer auxiliary police
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500	500	SECTION 18
501	501	SENATE BILL 559
502	502	organizations, 7. Law enforcement agencies, 8. Cooperatives organized under ch.
503	503	185, Stats., on a membership basis without capital stock, 9. Registered guests in a
504	504	motel, hotel, or resort, 10. Members or members and advisors of fraternal
505	505	organizations including women's auxiliaries of such organizations and fraternal
506	506	youth organizations, 11. Associations of sports officials, 12. Purchasers of protective
507	507	athletic equipment, 13. Migrant workers, 14. Participants in racing meets, 15.
508	508	Patrons or guests of a recreational facility or resort, 16. Application-based drivers,
509	509	as defined in s. 102.01 (2) (ae), Stats., of a network company, as defined in s. 632.985
510	510	(1) (b), Stats.
511	511	SECTION 19.0Effective dates. This act takes effect on the day after publication,
512	512	except as follows:
513	513	(1) The treatment of administrative rules takes effect as provided in s. 227.265.
514	514	(END)
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