Bill Text: IA SSB3144 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act regarding persons who are deemed independent contractors when performing services while operating certain vehicles.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-02-18 - Committee report approving bill, renumbered as SF 2296. [SSB3144 Detail]
Download: Iowa-2019-SSB3144-Introduced.html
Senate
Study
Bill
3144
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
TRANSPORTATION
BILL
BY
CHAIRPERSON
KAPUCIAN)
A
BILL
FOR
An
Act
regarding
persons
who
are
deemed
independent
contractors
1
when
performing
services
while
operating
certain
vehicles.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
85.61,
subsection
11,
paragraph
c,
1
subparagraph
(3),
Code
2020,
is
amended
to
read
as
follows:
2
(3)
(a)
For
purposes
of
this
subparagraph,
“owns”
includes
3
but
is
not
limited
to
holding
legal
title
to
a
vehicle
or
being
4
a
party
to
an
agreement
for
the
conditional
sale
or
lease
of
5
the
vehicle
that
includes
the
party’s
right
to
purchase
upon
6
performance
of
conditions
stated
in
the
agreement
with
an
7
immediate
right
of
possession.
In
the
event
a
mortgagor
of
8
a
vehicle
is
entitled
to
possession
of
the
vehicle,
then
the
9
conditional
vendee
or
lessee
and
the
mortgagor
shall
both
be
10
deemed
to
own
the
vehicle.
11
(b)
An
owner-operator
who,
as
an
individual
or
partner,
12
or
shareholder
of
a
corporate
owner-operator,
owns
a
13
vehicle
licensed
and
registered
as
a
truck,
road
tractor,
or
14
truck
tractor
by
a
governmental
agency,
is
an
independent
15
contractor
while
performing
services
in
the
operation
of
the
16
owner-operator’s
vehicle
if
all
of
the
following
conditions
are
17
substantially
present:
18
(a)
(i)
The
owner-operator
is
responsible
for
the
19
maintenance
of
the
vehicle.
20
(b)
(ii)
The
owner-operator
bears
the
principal
burden
21
of
the
vehicle’s
operating
costs,
including
fuel,
repairs,
22
supplies,
collision
insurance,
and
personal
expenses
for
the
23
operator
while
on
the
road.
24
(c)
(iii)
The
owner-operator
is
responsible
for
supplying
25
the
necessary
personnel
to
operate
the
vehicle,
and
the
26
personnel
are
considered
the
owner-operator’s
employees.
27
(d)
(iv)
The
owner-operator’s
compensation
is
based
on
28
factors
related
to
the
work
performed,
including
a
percentage
29
of
any
schedule
of
rates
or
lawfully
published
tariff,
and
not
30
on
the
basis
of
the
hours
or
time
expended.
31
(e)
(v)
The
owner-operator
determines
the
details
and
means
32
of
performing
the
services,
in
conformance
with
regulatory
33
requirements,
operating
procedures
of
the
carrier,
and
34
specifications
of
the
shipper.
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(f)
(vi)
The
owner-operator
enters
into
a
contract
which
1
specifies
the
relationship
to
be
that
of
an
independent
2
contractor
and
not
that
of
an
employee.
3
Sec.
2.
Section
91A.2,
subsection
3,
Code
2020,
is
amended
4
to
read
as
follows:
5
3.
a.
“Employee”
means
a
natural
person
who
is
employed
in
6
this
state
for
wages
by
an
employer.
Employee
also
includes
a
7
commission
salesperson
who
takes
orders
or
performs
services
8
on
behalf
of
a
principal
and
who
is
paid
on
the
basis
of
9
commissions
but
does
not
include
persons
who
purchase
for
their
10
own
account
for
resale.
11
b.
For
the
purposes
of
this
chapter
,
the
following
persons
12
engaged
in
agriculture
are
not
employees:
13
a.
(1)
The
spouse
of
the
employer
and
relatives
of
14
either
the
employer
or
spouse
residing
on
the
premises
of
the
15
employer.
16
b.
(2)
A
person
engaged
in
agriculture
as
an
owner-operator
17
or
tenant-operator
and
the
spouse
or
relatives
of
either
who
18
reside
on
the
premises
while
exchanging
labor
with
the
operator
19
or
for
other
mutual
benefit
of
any
and
all
such
persons.
20
c.
(3)
Neighboring
persons
engaged
in
agriculture
who
are
21
exchanging
labor
or
other
services.
22
c.
For
purposes
of
this
chapter,
“employee”
does
not
include
23
an
independent
contractor
as
described
in
section
85.61,
24
subsection
11,
paragraph
“c”
,
subparagraph
(3).
25
Sec.
3.
Section
91D.1,
Code
2020,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
3A.
For
purposes
of
this
chapter,
28
“employee”
does
not
include
an
independent
contractor
as
29
described
in
section
85.61,
subsection
11,
paragraph
“c”
,
30
subparagraph
(3).
31
Sec.
4.
Section
96.19,
subsection
17,
Code
2020,
is
amended
32
to
read
as
follows:
33
17.
“Employing
unit”
means
any
individual
or
type
34
of
organization,
including
this
state
and
its
political
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subdivisions,
state
agencies,
boards,
commissions,
and
1
instrumentalities
thereof,
any
partnership,
association,
trust,
2
estate,
joint
stock
company,
insurance
company
or
corporation,
3
whether
domestic
or
foreign,
or
the
receiver,
trustee
in
4
bankruptcy,
trustee
or
successor
thereof,
or
the
legal
5
representative
of
a
deceased
person,
which
has
or
subsequent
6
to
January
1,
1936,
had
in
its
employ
one
or
more
individuals
7
performing
services
for
it
within
this
state.
All
individuals
8
performing
services
within
this
state
for
any
employing
unit
9
which
maintains
two
or
more
separate
establishments
within
this
10
state
shall
be
deemed
to
be
employed
by
a
single
employing
11
unit
for
all
the
purposes
of
this
chapter
.
Whenever
any
12
employing
unit
contracts
with
or
has
under
it
any
contractor
or
13
subcontractor
for
any
work
which
is
part
of
its
usual
trade,
14
occupation,
profession,
or
business,
unless
the
employing
unit
15
as
well
as
each
such
contractor
or
subcontractor
is
an
employer
16
by
reason
of
subsection
16
or
section
96.8,
subsection
3
,
the
17
employing
unit
shall
for
all
the
purposes
of
this
chapter
be
18
deemed
to
employ
each
individual
in
the
employ
of
each
such
19
contractor
or
subcontractor
for
each
day
during
which
such
20
individual
is
engaged
in
performing
such
work;
except
that
each
21
such
contractor
or
subcontractor
who
is
an
employer
by
reason
22
of
subsection
16
or
section
96.8,
subsection
3
,
shall
alone
23
be
liable
for
the
contributions
measured
by
wages
payable
to
24
individuals
in
the
contractor’s
or
subcontractor’s
employ,
and
25
except
that
any
employing
unit
who
shall
become
liable
for
and
26
pay
contributions
with
respect
to
individuals
in
the
employ
of
27
any
such
contractor
or
subcontractor
who
is
not
an
employer
28
by
reason
of
subsection
16
or
section
96.8,
subsection
3
,
may
29
recover
the
same
from
such
contractor
or
subcontractor,
except
30
as
any
contractor
or
subcontractor
who
would
in
the
absence
31
of
subsection
16
or
section
96.8,
subsection
3
,
be
liable
32
to
pay
said
contributions,
accepts
exclusive
liability
for
33
said
contributions
under
an
agreement
with
such
employer
made
34
pursuant
to
general
rules
of
the
department.
Each
individual
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employed
to
perform
or
to
assist
in
performing
the
work
of
any
1
agent
or
employee
of
an
employing
unit
shall
be
deemed
to
be
2
employed
by
such
employing
unit
for
all
the
purposes
of
this
3
chapter
,
whether
such
individual
was
hired
or
paid
directly
by
4
such
employing
unit
or
by
such
agent
or
employee,
provided
the
5
employing
unit
had
actual
or
constructive
knowledge
of
such
6
work,
and
provided,
further,
that
such
employment
was
for
a
7
total
of
not
less
than
eight
hours
in
any
one
calendar
week.
8
An
employing
unit
shall
not
be
deemed
to
employ
an
independent
9
contractor
as
described
in
section
85.61,
subsection
11,
10
paragraph
“c”
,
subparagraph
(3).
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
regards
persons
who
are
deemed
independent
15
contractors
when
performing
services
while
operating
certain
16
vehicles,
for
purposes
of
certain
workers’
compensation,
wage,
17
and
unemployment
requirements.
18
Under
Code
chapter
85
(workers’
compensation),
a
worker
19
or
employee
is
entitled
to
certain
workers’
compensation
20
benefits.
However,
the
terms
“worker”
and
“employee”
do
not
21
include
an
independent
contractor.
An
owner-operator
who
owns
22
a
vehicle
licensed
and
registered
as
a
truck,
road
tractor,
or
23
truck
tractor
is
considered
an
independent
contractor
while
24
performing
services
in
the
operation
of
the
owner-operator’s
25
vehicle
if
certain
conditions
apply.
The
bill
defines
the
term
26
“owns”
as
it
relates
to
an
owner-operator
who
owns
a
vehicle
27
and
qualifies
as
an
independent
contractor
for
purposes
of
Code
28
chapter
85.
By
operation
of
law
and
pursuant
to
Code
chapter
29
87
(workers’
compensation
or
employers’
liability
insurance),
30
a
motor
carrier
who
contracts
with
an
owner-operator
who
is
31
acting
as
an
independent
contractor
under
the
bill
is
not
32
required
to
insure
the
motor
carrier’s
liability
for
the
33
owner-operator
nor
is
the
motor
carrier
required
to
purchase
34
compensation
liability
insurance
for
the
owner-operator
or
its
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employees
(Code
sections
87.1
and
87.23).
1
The
bill
excludes
from
the
term
“employee”
in
Code
chapters
2
91A
(wage
payment
collection)
and
91D
(minimum
wage)
an
3
owner-operator
performing
services
while
operating
their
4
vehicle
who
qualifies
as
an
independent
contractor
under
5
the
bill.
By
operation
of
law,
an
employer
is
exempt
from
6
certain
wage
payment
collection
requirements
and
minimum
wage
7
requirements
as
it
relates
to
non-employees.
Furthermore,
8
under
Code
chapter
91B,
such
non-employees
are
not
entitled
to
9
certain
rights
regarding
access
to
information
and
bringing
10
certain
claims
against
employers
who
release
information.
11
The
bill
also
provides
that
an
employing
unit,
as
defined
12
in
Code
chapter
96
(employment
security
and
unemployment
13
compensation),
shall
not
be
deemed
to
employ
an
owner-operator
14
performing
services
while
operating
their
vehicle
who
qualifies
15
as
an
independent
contractor
under
the
bill.
By
operation
of
16
law,
an
employing
unit
is
exempt
from
certain
unemployment
17
compensation
requirements
as
it
relates
to
persons
it
does
not
18
employ.
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