HF 4447

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/29/2024 02:57pm

A bill for an act
relating to labor; delivery network companies; requiring delivery network
companies to create portable benefits accounts for app-based drivers; requiring
delivery network companies to purchase occupational accident insurance; providing
for income tax treatment of contributions to and distributions from portable benefits
accounts; authorizing rulemaking; amending Minnesota Statutes 2022, sections
290.0132, by adding a subdivision; 290.0133, by adding a subdivision; proposing
coding for new law as Minnesota Statutes, chapter 181C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [181C.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 181C.01 to 181C.06, the terms defined
in this section have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Allocation date. new text end

new text begin "Allocation date" means the date following the last day of a
calendar qualifying worker's quarter on which a network company makes any required
quarterly deposit into a portable benefit account, which in no case shall be more than 30
days after the end of a quarter.
new text end

new text begin Subd. 3. new text end

new text begin App-based driver. new text end

new text begin "App-based driver" means an individual who is a DNC
courier providing services within the state.
new text end

new text begin Subd. 4. new text end

new text begin Delivery network company. new text end

new text begin "Delivery network company" or "DNC" means
a business entity that maintains an online-enabled application or platform used to facilitate
delivery services within the state.
new text end

new text begin Subd. 5. new text end

new text begin Delivery network company courier. new text end

new text begin "Delivery network company courier" or
"DNC courier" means an individual who provides delivery services through a DNC's
online-enabled application or platform.
new text end

new text begin Subd. 6. new text end

new text begin Delivery services. new text end

new text begin "Delivery services" means the pickup from any location of
any item or items and the delivery of the items using a passenger vehicle, bicycle, scooter,
walking, public transportation, or other similar means of transportation, to a location selected
by the customer located within 50 miles of the pickup location in response to a delivery
request. Delivery services may include the selection, collection, or purchase of items by a
DNC courier, as well as other tasks incidental to a delivery.
new text end

new text begin Subd. 7. new text end

new text begin Earnings. new text end

new text begin "Earnings" means all earnings, including incentives and bonuses:
new text end

new text begin (1) paid to the app-based driver by the network company related to the provision of
delivery services; or
new text end

new text begin (2) remitted to the app-based driver from payment facilitated by a network company,
but not including amounts charged for fees, taxes, customer pass-throughs, or other similar
charges. Earnings do not include any payments for gratuities.
new text end

new text begin Subd. 8. new text end

new text begin Earnings loss. new text end

new text begin "Earnings loss" means a decrease of 50 percent or more in an
app-based driver's monthly earnings from the previous month that results through no fault
of the app-based driver.
new text end

new text begin Subd. 9. new text end

new text begin Eligibility date. new text end

new text begin "Eligibility date" means the first day of a quarter, occurring
after December 31, 2024, during which an app-based driver qualifies as an eligible driver.
new text end

new text begin Subd. 10. new text end

new text begin Eligible driver. new text end

new text begin "Eligible driver" means an app-based driver whose earnings
from, or facilitated by, a network company total at least $750 during a calendar quarter. An
app-based driver who qualified as an eligible driver of a network company under this
definition remains an eligible driver of that network company for three quarters following
the initial quarter of eligibility, regardless of the amount of earnings the app-based driver
has during those three quarters. After such time, any such individual may requalify as an
eligible driver of the network company at such time as the app-based driver earnings paid
or facilitated by the network company total or exceed $750 in a quarter.
new text end

new text begin Subd. 11. new text end

new text begin Gratuities. new text end

new text begin "Gratuities" means amounts specifically paid, given to, or left for
an app-based driver in connection with the delivery service provided by that driver.
new text end

new text begin Subd. 12. new text end

new text begin Network company. new text end

new text begin "Network company" means a DNC.
new text end

new text begin Subd. 13. new text end

new text begin Permissible use. new text end

new text begin "Permissible use'' means the use of money to:
new text end

new text begin (1) compensate for lost income due to:
new text end

new text begin (i) an illness or accident;
new text end

new text begin (ii) the birth or adoption of a child of the app-based driver;
new text end

new text begin (iii) a federal or governor-declared state of emergency; or
new text end

new text begin (iv) an earnings loss;
new text end

new text begin (2) transfer money to an individual retirement account;
new text end

new text begin (3) cover expenses incurred for premiums for health insurance coverage in the individual
market;
new text end

new text begin (4) cover tuition expenses; or
new text end

new text begin (5) cover costs related to childcare.
new text end

new text begin Subd. 14. new text end

new text begin Portable benefit account. new text end

new text begin "Portable benefit account" means a financial
account:
new text end

new text begin (1) from which amounts may be withdrawn for a permissible use;
new text end

new text begin (2) that meets the requirements of this chapter; and
new text end

new text begin (3) that is administered by a portable benefit account provider.
new text end

new text begin Subd. 15. new text end

new text begin Portable benefit account provider. new text end

new text begin "Portable benefit account provider'' means
a banking institution as defined in section 48.01, subdivision 2, or another person who
demonstrates to the satisfaction of the commissioner of commerce that the manner in which
such bank or person will administer the portable benefit account will be consistent with the
portable benefit account requirements under this chapter.
new text end

new text begin Subd. 16. new text end

new text begin Quarter. new text end

new text begin "Quarter" means each of the following four time periods:
new text end

new text begin (1) January 1 to March 31;
new text end

new text begin (2) April 1 to June 30;
new text end

new text begin (3) July 1 to September 30; and
new text end

new text begin (4) October 1 to December 31.
new text end

Sec. 2.

new text begin [181C.02] PORTABLE BENEFIT ACCOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Contribution requirements. new text end

new text begin (a) A network company shall, by each
allocation date, contribute to a portable benefit account of an eligible driver an amount equal
to two percent of an eligible driver's earnings in the immediately preceding quarter earned
through that network company.
new text end

new text begin (b) The first contribution to an eligible driver's portable benefit account by a network
company under paragraph (a) shall be made on the first allocation date following an
individual's eligibility date with respect to the network company.
new text end

new text begin (c) Each network company shall allow an eligible driver to elect to also contribute to
the eligible driver's portable benefit account and shall deduct the amount elected by the
eligible driver from the individual's earnings and designate such amount for contribution
to the portable benefit account.
new text end

new text begin (d) A network company shall deposit any deductions elected under paragraph (c) into
the eligible driver's portable benefit account on a quarterly basis, no later than seven days
following the allocation date for the quarter.
new text end

new text begin (e) Contributions made by a network company under paragraph (a) shall come directly
from the network company and not be deducted or drawn from an eligible driver's earnings.
new text end

new text begin (f) Any contribution under paragraphs (a) or (c) shall be made to the default portable
benefit account the network company elects on behalf of the eligible driver, unless an eligible
worker elects a different portable benefit account and informs the network company at least
30 days prior to the allocation date.
new text end

new text begin (g) Each network company shall ensure that the default portable benefit account offered
by the network company makes available at least one individual retirement account provider.
new text end

new text begin Subd. 2. new text end

new text begin Distributions; commingling prohibited. new text end

new text begin (a) An eligible driver who has
deposited money in a portable benefit account may receive a distribution of amounts for a
permissible use.
new text end

new text begin (b) Assets in a portable benefit account shall not be commingled with other property
except in a common trust fund or common investment fund.
new text end

Sec. 3.

new text begin [181C.03] OCCUPATIONAL ACCIDENT INSURANCE REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Average weekly earnings" means the app-based driver's total earnings from a
particular network company during the 28 calendar days immediately prior to a covered
accident divided by four.
new text end

new text begin (c) "Maximum weekly compensation rate" has the meaning given in section 176.101,
subdivision 1, paragraph (b), clause (1).
new text end

new text begin (d) "Minimum weekly compensation rate" has the meaning given in section 176.101,
subdivision 1, paragraph (c).
new text end

new text begin Subd. 2. new text end

new text begin Occupational accident insurance purchase requirement. new text end

new text begin (a) A network
company must purchase occupational accident insurance, as described in paragraph (c), for
all app-based drivers who provide services through their networks within the state.
new text end

new text begin (b) Network companies shall file with the Department of Commerce, no later than 30
days after the commencement of a new policy year, a copy of the policy it has purchased
for DNC couriers. The Department of Commerce shall be treated by the insurer as a certificate
holder for purposes of receiving notice of cancellation of the policy.
new text end

new text begin (c) The occupational accident insurance policy required under paragraph (a) shall cover
medical expenses and lost income resulting from injuries suffered while the app-based driver
engaged on a network company's online-enabled application or platform. The policy shall
at a minimum provide the following:
new text end

new text begin (1) coverage for medical expenses incurred, up to at least $250,000;
new text end

new text begin (2) continuous total disability payments, temporary total disability payments, and partial
disability equal to 66 percent of the app-based driver's average weekly earnings from all
network companies as of the date of injury but not more than the maximum weekly
compensation rate, unless the average weekly earnings of the app-based driver is less than
the minimum weekly compensation rate, in which case the weekly compensation shall be
equal to the app-based driver's average weekly wage. Payments under this paragraph shall
be made for up to the first 130 weeks following the injury; and
new text end

new text begin (3) for the benefit of spouses, children, or other dependents of app-based drivers,
accidental death insurance in the amount equal to 66 percent of the app-based driver's
average weekly earnings from all network companies as of the date of injury but not more
than the maximum weekly compensation rate, unless the average weekly wage of the
app-based driver is less than the minimum weekly compensation rate, in which case the
weekly compensation shall be equal to the app-based driver's average weekly wage, times
130 weeks for injuries suffered by an app-based driver while the app-based driver is engaged
on the network company's online-enabled application or platform that resulted in death.
new text end

new text begin (d) If an accident is covered by occupational accident insurance maintained by more
than one network company, the insurer of the network company against whom a claim is
filed is entitled to contribution for the pro rata share of coverage attributable to one or more
other network companies up to the coverages and limits in paragraph (c).
new text end

new text begin (e) For purposes of this section, an app-based driver is engaged on a network company's
platform from when the app-based driver commences work related to a specific delivery
request to when the app-based driver completes that delivery request.
new text end

new text begin (f) Any benefits provided to an app-based driver under this section are considered
amounts payable under a workers' compensation law or disability benefit for the purpose
of determining amounts payable under any insurance provided under chapter 176 or under
any personal injury protection coverage policy.
new text end

Sec. 4.

new text begin [181C.04] INDEPENDENT CONTRACTOR STATUS.
new text end

new text begin For the purposes of this chapter, an app-based driver is an independent contractor and
not an employee or agent with respect to the driver's relationship with a network company
so long as:
new text end

new text begin (1) the network company does not unilaterally prescribe specific dates, times of day, or
a minimum number of hours during which the app-based driver must be logged into the
network company's online-enabled application or platform;
new text end

new text begin (2) the network company may not terminate the contract of the app-based driver for not
accepting a specific delivery service request, except where refusal constitutes a violation
of governing federal, state, or local regulations;
new text end

new text begin (3) the network company does not restrict the app-based driver from performing services
through other network company's platforms except while performing services through the
network company's online-enabled application or platform; and
new text end

new text begin (4) the network company does not contractually restrict the app-based driver from
working in any other lawful occupation.
new text end

Sec. 5.

new text begin [181C.05] DISCRIMINATION PROHIBITED.
new text end

new text begin It is an unlawful practice, unless based upon a bona fide occupational qualification or
public or app-based driver safety need, for a network company to refuse to contract with,
terminate the contract of, or deactivate from the network company's online-enabled
application or platform any app-based driver or prospective app-based driver based upon
race, color, creed, religion, national origin, sex, marital status, status with regard to public
assistance, familial status, membership or activity in a local commission, disability, sexual
orientation, or age.
new text end

Sec. 6.

new text begin [181C.06] RULEMAKING AUTHORITY.
new text end

new text begin The commissioner of labor and industry may promulgate rules and regulations to
implement this chapter.
new text end

Sec. 7.

new text begin [181C.07] PREEMPTION.
new text end

new text begin Jurisdiction in all matters concerning network companies and app-based drivers is vested
exclusively in the state. Notwithstanding any other provision of law, no municipality or
other local government entity shall establish or enforce any provision of law concerning
network companies or app-based drivers. Any provision of local law or ordinance that on
its face or as applied regulates network companies or app-based drivers shall be preempted.
new text end

Sec. 8.

Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 36. new text end

new text begin Portable benefit accounts. new text end

new text begin (a) For purposes of this subdivision:
new text end

new text begin (1) "eligible driver" has the meaning given in section 181C.01, subdivision 10;
new text end

new text begin (2) "network company" has the meaning given in section 181C.01, subdivision 12; and
new text end

new text begin (3) "portable benefit account" has the meaning given in section 181C.01, subdivision
14.
new text end

new text begin (b) The sum of the amount of contributions to a portable benefit account made by a
network company on behalf of an eligible driver and the amount of contributions to a portable
benefit account made by an eligible driver is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, .....
new text end

Sec. 9.

Minnesota Statutes 2022, section 290.0133, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Disallowed distributions; portable benefit accounts. new text end

new text begin The sum of the
following amounts is an addition:
new text end

new text begin (1) the amount of any distribution from a portable benefit account, as defined in section
181.01, subdivision 14, not used for the purposes described in section 181.01, subdivision
13; plus
new text end

new text begin (2) an amount equal to ten percent of the amount calculated in clause (1).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, .....
new text end