HB734 - Delivery network companies; portable benefit accounts.

1 Co-Sponsor

Delivery network companies; portable benefit accounts. Requires a delivery network company, defined in the bill as a business entity that maintains an online-enabled application or platform used to facilitate delivery services, to contribute an amount equal to four percent of an eligible driver's earnings in the immediately preceding quarter earned through that delivery network company. Additionally, the eligible driver may make voluntary contributions to the portable benefit account. The bill provides that a delivery driver is eligible for the portable benefit account if the driver earned $1,000 delivering in a quarter. Under the bill, funds in a portable benefit account may be used to (i) compensate for lost income due to (a) an illness or accident, (b) the birth or adoption of a child of the driver, (c) a state of emergency, or (d) an earnings loss; (ii) transfer funds to an individual retirement account; or (iii) cover expenses incurred for premiums for health insurance coverage in the individual market. The bill provides that a portable benefit account is exempt from taxation, and contributions to the portable benefit account are not included in the driver's gross income. The bill requires the delivery network company to purchase insurance to cover medical expenses and lost income resulting from injuries suffered while the driver was engaged on a delivery network company's online-enabled application or platform. Additionally, the bill prohibits a delivery network company from discriminating against drivers based on certain classes. The bill provides that delivery drivers are classified as independent contractors, notwithstanding the provision of benefits required by the bill. The bill also provides that jurisdiction in all matters concerning delivery network companies and app-based delivery drivers shall be exclusively vested in the state. Finally the bill provides that its provisions regarding the classification of delivery drivers as independent contractors are not severable. Delivery network companies; portable benefit accounts. Requires a delivery network company, defined in the bill as a business entity that maintains an online-enabled application or platform used to facilitate delivery services, to contribute an amount equal to four percent of an eligible driver's earnings in the immediately preceding quarter earned through that delivery network company. Additionally, the eligible driver may make voluntary contributions to the portable benefit account. The bill provides that a delivery driver is eligible for the portable benefit account if the driver earned $1,000 delivering in a quarter. Under the bill, funds in a portable benefit account may be used to (i) compensate for lost income due to (a) an illness or accident, (b) the birth or adoption of a child of the driver, (c) a state of emergency, or (d) an earnings loss; (ii) transfer funds to an individual retirement account; or (iii) cover expenses incurred for premiums for health insurance coverage in the individual market. The bill provides that a portable benefit account is exempt from taxation, and contributions to the portable benefit account are not included in the driver's gross income. The bill requires the delivery network company to purchase insurance to cover medical expenses and lost income resulting from injuries suffered while the driver was engaged on a delivery network company's online-enabled application or platform. Additionally, the bill prohibits a delivery network company from discriminating against drivers based on certain classes. The bill provides that delivery drivers are classified as independent contractors, notwithstanding the provision of benefits required by the bill. The bill also provides that jurisdiction in all matters concerning delivery network companies and app-based delivery drivers shall be exclusively vested in the state. Finally the bill provides that its provisions regarding the classification of delivery drivers as independent contractors are not severable.