Delivery network couriers and transportation network drivers, Department of Financial Institutions’ approval to offer portable benefit accounts, providing for insurance coverage, modifying administrative rules related to accident and sickness insurance, and granting rule-making authority. (FE)

Portable benefit accounts Under the bill, if certain conditions are satisfied, a financial services provider 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 services provider or other person (portable benefit account provider) from which an individual may receive distributions for the purposes described below.

Under the bill, a network company may offer portable benefit accounts. If an application-based driver meets certain eligibility requirements (eligible driver), a network company may contribute an amount equal to 4 percent of that driver’s quarterly earnings to a portable benefit account, and the driver may also contribute to the portable benefit account. Contributions to a portable benefit account by the account owner may be subtracted from the owner’s income for state income tax purposes. Under the bill, 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 the birth or adoption of the driver’s child; 2) to transfer the money to an individual retirement account (IRA); 3) to pay vision, dental, or health insurance premiums; and 4) to compensate for lost income through no fault of the driver from work for a network company. A network company must ensure that the portable benefit account provider it selects offers at least three options for IRA providers and an eligible driver may not transfer money from a portable benefit account to an IRA in an amount exceeding the contribution limits under federal law. A portable benefit account provider may include an income replacement benefit to be made available to eligible drivers. A financial services provider may not commingle assets in a portable benefit account with other property, except in a common trust fund or common investment fund.

Insurance coverage The bill provides that a network company may carry, provide, or otherwise make available group or blanket accident and sickness insurance for its application-based drivers. The bill requires a network company to make available, upon reasonable request, a copy of its group or blanket accident and sickness insurance policy. The bill specifies that the state’s worker’s compensation laws do not apply to such a policy.

The bill also provides that a network company may carry, provide, or otherwise make available group or blanket occupational accident insurance to cover the medical expenses and lost income resulting from an injury suffered by an application-based driver while engaged on the network company’s online-enabled application, software, or system. The bill requires a network company to make available, upon reasonable request, a copy of its blanket occupational accident insurance policy. The bill requires that the policy provide, in aggregate, at least $1,000,000 of coverage for the medical expenses, short-term disability, long-term disability, and survivor benefits. The coverage must include at least $250,000 for medical expenses; weekly disability payments equal to two-thirds of an application-based driver’s average weekly income, subject to certain restrictions, for up to 104 weeks following an injury; and survivor benefits in an amount equal to an application-based driver’s average weekly income, subject to certain restrictions, multiplied by 104. The bill provides that if a claim 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 a contribution for the pro rata share of coverage attributable to one or more other network companies.

Under the bill, any benefit provided to an application-based driver under an occupational accident insurance policy is treated as amounts payable under a worker’s compensation law or disability benefit for the purpose of determining amounts payable under uninsured or underinsured motorist coverage.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.