Bill Text: IA SF2257 | 2017-2018 | 87th General Assembly | Enrolled

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Bill Title: A bill for an act defining marketplace contractors and designating marketplace contractors as independent contractors under specified circumstances. (Formerly SSB 3058.) Effective 7-1-18.

Spectrum: Committee Bill

Status: (Passed) 2018-04-04 - Signed by Governor. S.J. 888. [SF2257 Detail]

Download: Iowa-2017-SF2257-Enrolled.html

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Senate File 2257 - Enrolled




                              SENATE FILE       
                              BY  COMMITTEE ON COMMERCE

                              (SUCCESSOR TO SSB
                                  3058)
 \5
                                   A BILL FOR
 \1
                                       Senate File 2257

                             AN ACT
 DEFINING MARKETPLACE CONTRACTORS AND DESIGNATING
    MARKETPLACE CONTRACTORS AS INDEPENDENT CONTRACTORS UNDER
    SPECIFIED CIRCUMSTANCES.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1.  NEW SECTION.  93.1  Definitions.
    As used in this chapter, unless the context otherwise
 requires:
    1.  "Governmental entity" means the same as defined in
 section 96.19.
    2.  "Indian tribe" means the same as defined in section
 96.19.
    3.  a.  "Marketplace contractor" means a person or
 organization, including an individual, corporation, limited
 liability company, partnership, sole proprietor, or other
 entity, that does all of the following:
    (1)  Enters into a written agreement with a marketplace
 platform to use the marketplace platform's digital network
 to connect with individuals or entities that seek to obtain
 services from the marketplace contractor.
    (2)  Performs services for individuals or entities upon
 connection through a marketplace platform's digital network in
 exchange for compensation or payment of a fee.
    (3)  Does not perform the services offered by the marketplace
 contractor at or from a physical business location that is
 operated by the marketplace platform in the state.
    b.  "Marketplace contractor" does not include a person or
 organization that performs services consisting of transporting
 freight, sealed and closed envelopes, boxes, parcels, or other
 sealed and closed containers for compensation.
    4.  "Marketplace platform" means a person or organization,
 including an individual, corporation, limited liability
 company, partnership, sole proprietor, or other entity, that
 operates a digital network to connect marketplace contractors
 to individuals or entities that seek to obtain the type of
 services offered by marketplace contractors.
    Sec. 2.  NEW SECTION.  93.2  Marketplace contractors as
 independent contractors == retroactivity.
    1.  A marketplace contractor shall be treated as an
 independent contractor, and not an employee of a marketplace
 platform, for all purposes under state or local law, including
 but not limited to chapters 87 and 96, if the following
 conditions are met:
    a.  The marketplace contractor and marketplace platform agree
 in writing that the marketplace contractor is engaged as an
 independent contractor and not an employee of the marketplace
 platform.
    b.  The marketplace platform does not unilaterally prescribe
 specific hours during which the marketplace contractor must
 be available to accept service requests submitted through the
 marketplace platform's digital network.
    c.  The marketplace platform does not prohibit the
 marketplace contractor from engaging in outside employment or
 performing services through other marketplace platforms.
    d.  The marketplace contractor bears its own expenses
 incurred in performing services.
    2.  For services performed by a marketplace contractor prior
 to the effective date of this Act, a marketplace contractor
 shall be treated as an independent contractor and not an
 employee of a marketplace platform for all purposes under state
 or local law, including but not limited to chapters 87 and 96,
 if the conditions set forth in subsection 1 were satisfied at
 the time the services were performed.
    3.  When providing services that require an Iowa license,
 the marketplace contractor shall be responsible for obtaining
 the Iowa license and making such license available to the
 individuals or entities for whom the marketplace contractor is
 providing services.
    4.  This section shall not apply to any of the following:
    a.  Services performed by an individual in the employ
 of a governmental entity or Indian tribe, but only if the
 services are excluded from employment as defined in the Federal
 Unemployment Tax Act, 26 U.S.C. {3301=3311, solely by reason of
 section 3306(c)(7) of that Act.
    b.  Services performed by an individual in the employ of a
 religious, charitable, educational, or other organization, but
 only if the services are excluded from employment as defined in
 the Federal Unemployment Tax Act, 26 U.S.C. {3301=3311, solely
 by reason of section 3306(c)(8) of that Act.
    c.  Services performed by a real estate broker or a real
 estate salesperson licensed pursuant to chapter 543B.


                                                                                            CHARLES SCHNEIDE


                                                                                            LINDA UPMEYER


                                                                                            W. CHARLES SMITH


                                                                                            KIM REYNOLDS

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