Committee advances delivery‑network bill with insurance protections; wage-floor amendments fail

The House Labor and Commerce Committee voted 4–3 on May 15 to report HB 35 out of committee as amended after extensive debate over insurance requirements and driver compensation for delivery‑network companies (DNCs).

Senator Jesse Bjorkman, sponsor, said the bill would classify DNC drivers as independent contractors while establishing insurance guidelines that apply when drivers are "logged on to the digital network," including occupational and accident insurance as well as liability protections. Bjorkman told the committee his office had constituents who were uncovered while logged into platforms like Walmart Spark and said the bill is intended to close those gaps.

Co‑chair Fields offered a package of clarifying amendments during the hearing. Amendment s.6 clarified the definition and work of a courier so that couriers who walk or use bicycles — including many e‑bikes under current state law — would not be forced to carry automobile insurance; Fields said the change ensures walking or bicycling couriers are not unintentionally required to buy automobile policies. Amendment s.9 (conforming language) clarified that the insurer’s obligations begin when a driver is logged into the app; Division of Insurance Director Heather Carpenter described that language as precision consistent with current practice and said the division "takes no position on the amendment" but recommended removing ambiguity that could invite litigation.

Fields’ amendment s.8 (amendment 3) clarified that uninsured/underinsured motorist coverage (UIM) need not apply when a DNC is carrying only goods (the transcript used the example of a "burrito") but must apply when carrying a person. The committee adopted s.8 after debate and a roll call. Representative Colombe and others stressed the practical difference between carrying goods of value and carrying a person; Representative Sadler opposed strongly parsing obligations too narrowly, emphasizing risk to drivers and passengers.

Two amendments addressing driver pay and UIM limits were defeated. Representative Colombe moved to remove the driver‑compensation section (s.3) arguing wage‑floor provisions are outside the bill’s core purpose; that amendment failed on a 3–4 roll call. Colombe later proposed lowering required UIM coverage from $500,000 to $250,000 (s.5); sponsor Bjorkman and Co‑chair Fields said $500,000 better protects seriously injured people and the amendment failed 3–4. Representative Freer offered an amendment to delete a section related to UIM requirements for small local operators (s.2) but withdrew it after discussion.

After final debate, Co‑chair Fields moved to report HB 35 out of committee "as amended with individual recommendations and accompanying fiscal notes." The clerk called the roll; the committee voted 4 yeas to 3 nays and the bill was reported out as amended.

Sponsor Bjorkman closed by noting the bill is modeled on earlier transportation network company statutes and said occupational and accident insurance included in the substitute provide important protections for drivers. Committee members signaled lingering disagreements over compensation and cost effects on riders and drivers; the bill will proceed with the committee’s recommendations.