Senate File 2257 - Reprinted SENATE FILE 2257 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3058) (As Amended and Passed by the Senate February 19, 2018 ) A BILL FOR An Act defining marketplace contractors and designating 1 marketplace contractors as independent contractors under 2 specified circumstances. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 SF 2257 (5) 87 gh/rn/jh

S.F. 2257 Section 1. NEW SECTION . 93.1 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Governmental entity” means the same as defined in 4 section 96.19. 5 2. “Indian tribe” means the same as defined in section 6 96.19. 7 3. a. “Marketplace contractor” means a person or 8 organization, including an individual, corporation, limited 9 liability company, partnership, sole proprietor, or other 10 entity, that does all of the following: 11 (1) Enters into a written agreement with a marketplace 12 platform to use the marketplace platform’s digital network 13 to connect with individuals or entities that seek to obtain 14 services from the marketplace contractor. 15 (2) Performs services for individuals or entities upon 16 connection through a marketplace platform’s digital network in 17 exchange for compensation or payment of a fee. 18 (3) Does not perform the services offered by the marketplace 19 contractor at or from a physical business location that is 20 operated by the marketplace platform in the state. 21 b. “Marketplace contractor” does not include a person or 22 organization that performs services consisting of transporting 23 freight, sealed and closed envelopes, boxes, parcels, or other 24 sealed and closed containers for compensation. 25 4. “Marketplace platform” means a person or organization, 26 including an individual, corporation, limited liability 27 company, partnership, sole proprietor, or other entity, that 28 operates a digital network to connect marketplace contractors 29 to individuals or entities that seek to obtain the type of 30 services offered by marketplace contractors. 31 Sec. 2. NEW SECTION . 93.2 Marketplace contractors as 32 independent contractors —— retroactivity. 33 1. A marketplace contractor shall be treated as an 34 independent contractor, and not an employee of a marketplace 35 -1- SF 2257 (5) 87 gh/rn/jh 1/ 3

S.F. 2257 platform, for all purposes under state or local law, including 1 but not limited to chapters 87 and 96, if the following 2 conditions are met: 3 a. The marketplace contractor and marketplace platform agree 4 in writing that the marketplace contractor is engaged as an 5 independent contractor and not an employee of the marketplace 6 platform. 7 b. The marketplace platform does not unilaterally prescribe 8 specific hours during which the marketplace contractor must 9 be available to accept service requests submitted through the 10 marketplace platform’s digital network. 11 c. The marketplace platform does not prohibit the 12 marketplace contractor from engaging in outside employment or 13 performing services through other marketplace platforms. 14 d. The marketplace contractor bears its own expenses 15 incurred in performing services. 16 2. For services performed by a marketplace contractor prior 17 to the effective date of this Act, a marketplace contractor 18 shall be treated as an independent contractor and not an 19 employee of a marketplace platform for all purposes under state 20 or local law, including but not limited to chapters 87 and 96, 21 if the conditions set forth in subsection 1 were satisfied at 22 the time the services were performed. 23 3. When providing services that require an Iowa license, 24 the marketplace contractor shall be responsible for obtaining 25 the Iowa license and making such license available to the 26 individuals or entities for whom the marketplace contractor is 27 providing services. 28 4. This section shall not apply to any of the following: 29 a. Services performed by an individual in the employ 30 of a governmental entity or Indian tribe, but only if the 31 services are excluded from employment as defined in the Federal 32 Unemployment Tax Act, 26 U.S.C. §3301-3311, solely by reason of 33 section 3306(c)(7) of that Act. 34 b. Services performed by an individual in the employ of a 35 -2- SF 2257 (5) 87 gh/rn/jh 2/ 3

S.F. 2257 religious, charitable, educational, or other organization, but 1 only if the services are excluded from employment as defined in 2 the Federal Unemployment Tax Act, 26 U.S.C. §3301-3311, solely 3 by reason of section 3306(c)(8) of that Act. 4 c. Services performed by a real estate broker or a real 5 estate salesperson licensed pursuant to chapter 543B. 6 -3- SF 2257 (5) 87 gh/rn/jh 3/ 3