NY State Senate Bill 2023-S8706

Senate Bill S8706

2023-2024 Legislative Session

Requires third-party food delivery services maintain insurance through a group policy that covers bodily injury or death arising out of or resulting from qualifying accidents involving a delivery person

download bill text pdf

Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 01, 2024	referred to consumer protection

2023-S8706 (ACTIVE) - Details

See Assembly Version of this Bill:: A8871
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §391-v, Gen Bus L

2023-S8706 (ACTIVE) - Summary

2023-S8706 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8706

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
third-party food delivery services maintain insurance through a group
policy that covers bodily injury or death arising out of or resulting
from qualifying accidents involving a delivery person

 
PURPOSE OR GENERAL IDEA OF BILL:

To require third-party food delivery services to carry no fault insur-
ance coverage for delivery persons working on their behalf.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 sets forth definitions including for a qualifying delivery
driver which is defined as an individual who conveys products for a food
service establishment on behalf of a third-party delivery service.

Section 2 requires that third-party food delivery services are required

to carry insurance covering accidents involving delivery persons. It
caps the benefits paid for qualifying accidents at $50,000 per person
and requires delivery drivers, pedestrians, and non-delivery driver
bicyclists to be eligible regardless of state of residency or citizen-
ship status. Delivery drivers are eligible for coverage regardless of
immigration status or status as an independent contractor. Drivers and
other individuals who are injured as result of their dangerous conduct
due to intoxication or drug impairment or intentionally injure them-
selves shall not be eligible for benefits.

Section 3 sets the effective date.

 
JUSTIFICATION:

With the proliferation of online tech companies like Grub Hub, Door
Dash, and Uber Eats dominating the food delivery business in New York
City, there are more delivery couriers on the streets than ever before.
This vast increase in deliveries coupled with consumer demand to get
food delivered as fast as possible, presents additional safety chal-
lenges for pedestrians, cyclists, and motorists alike. This bill will
help address safety concerns by requiring the delivery app companies,
such as Door Dash and Grub Hub to maintain "no fault" insurance coverage
for people providing food deliveries on their behalf modeled on the
State's requirements for insurance for cars and other vehicles. This
bill places the onus of responsibility on the online tech companies, who
are driving and profiting from this delivery culture and is intended to
incentivize them to prioritize safety for workers and pedestrians rath-
er. than deliveries being provided at unsafe speeds.

 
PRIOR LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
One hundred and eighty days after becoming law.

2023-S8706 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8706
 
                             I N  S E N A T E
 
                               March 1, 2024
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   third-party  food delivery services maintain insurance through a group
   policy that covers bodily injury or death arising out of or  resulting
   from qualifying accidents involving a delivery person

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (d) of subdivision 1  of  section  391-v  of  the
 general  business  law,  as added by chapter 693 of the laws of 2021, is
 amended and three new paragraphs (e), (f), and (g) are added to read  as
 follows:
   (d)  "Third-party  food  delivery platform" means the online or mobile
 platform of the third-party food delivery service on  which  a  consumer
 can  view  products  available  for  sale  and place an order for a food
 service establishment's products OR  ON  WHICH  A  DELIVERY  DRIVER  CAN
 ACCEPT AND FACILITATE ORDERS.
   (E) "DELIVERY DRIVER" MEANS ANY INDIVIDUAL WHO CONVEYS PRODUCTS FROM A
 FOOD SERVICE ESTABLISHMENT TO A CUSTOMER ON BEHALF OF A THIRD-PARTY FOOD
 DELIVERY  SERVICE. FOR THE PURPOSES OF THIS PARAGRAPH, MULTIPLE DELIVERY
 DRIVERS WHO SHARE ONE ACCOUNT WITH A THIRD-PARTY FOOD  DELIVERY  SERVICE
 SHALL EACH QUALIFY AS A DELIVERY DRIVER.
   (F)  "QUALIFYING  ACCIDENT"  MEANS  A  VEHICULAR  ACCIDENT INVOLVING A
 DELIVERY DRIVER THAT OCCURS WHILE THE DELIVERY DRIVER IS LOGGED  INTO  A
 THIRD-PARTY FOOD DELIVERY PLATFORM AND WORKING ON BEHALF OF A THIRD-PAR-
 TY FOOD DELIVERY SERVICE.
   (G) "QUALIFYING VEHICLE" MEANS ANY TWO OR THREE-WHEELED VEHICLE, OTHER
 THAN  A  MOTORCYCLE  THAT  CARRIES  ITS  OWN LIABILITY INSURANCE PER THE
 REQUIREMENTS OF ARTICLE SIX OF THE VEHICLE AND TRAFFIC LAW, AT THE  TIME
 OF THE QUALIFYING ACCIDENT.
   §  2. Section 391-v of the general business law is amended by adding a
 new subdivision 3 to read as follows:
   3. EACH THIRD-PARTY FOOD DELIVERY  SERVICE  SHALL  MAINTAIN  INSURANCE
 THROUGH A GROUP POLICY THAT COVERS BODILY INJURY OR DEATH ARISING OUT OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13846-01-3
 S. 8706                             2
 
 OR  RESULTING  FROM  QUALIFYING  ACCIDENTS  INVOLVING  A DELIVERY PERSON
 SUBJECT TO THE FOLLOWING PROVISIONS:
   (A)  BENEFITS  SHALL  BE  LIMITED  TO  ONLY THOSE QUALIFYING ACCIDENTS
 INVOLVING DELIVERY PERSONS WHO ARE OPERATING A QUALIFYING VEHICLE.
   (B) BENEFITS SHALL BE LIMITED TO PAYMENTS FOR BASIC ECONOMIC LOSSES UP
 TO FIFTY THOUSAND DOLLARS PER PERSON. FOR  THE  PURPOSE  OF  DETERMINING
 BASIC  ECONOMIC LOSS, QUALIFYING EXPENSES SHALL BE DETERMINED IN ACCORD-
 ANCE WITH THE DEFINITIONS AND LIMITATIONS OF SECTION FIVE  THOUSAND  ONE
 HUNDRED TWO OF THE INSURANCE LAW.
   (C)  THE  POLICY  OF LIABILITY INSURANCE MAINTAINED BY THE THIRD-PARTY
 FOOD DELIVERY SERVICE IN ACCORDANCE WITH THIS SECTION SHALL PROVIDE  FOR
 THE  PAYMENT  ON BENEFITS FOR QUALIFYING ACCIDENTS TO ALL PERSONS, OTHER
 THAN THOSE EXPLICITLY EXCLUDED IN THIS SUBDIVISION, FOR LOSS ARISING OUT
 OF THE USE OR OPERATION OF A QUALIFYING VEHICLE BY A DELIVERY DRIVER  IN
 NEW  YORK.  PERSONS  ELIGIBLE  FOR  BENEFITS  SHALL INCLUDE, BUT ARE NOT
 LIMITED TO:  (I) DELIVERY DRIVERS; (II) PEDESTRIANS; AND (III)  CYCLISTS
 WHO  ARE  NOT  DELIVERY  DRIVERS  WHO  EXPERIENCE BASIC ECONOMIC LOSS IN
 ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH  (B)  OF  THIS  SUBDIVISION.
 PERSONS  SHALL  BE ELIGIBLE FOR BENEFITS IRRESPECTIVE OF STATE RESIDENCY
 OR CITIZENSHIP STATUS SO LONG AS THE QUALIFYING ACCIDENT OCCURS  IN  NEW
 YORK.  THE  PAYMENT OF BENEFITS SHALL BE AWARDED IRRESPECTIVE OF WHO WAS
 AT FAULT, LIABLE, OR RESPONSIBLE FOR THE QUALIFYING ACCIDENT.  OCCUPANTS
 OF  A  MOTOR  VEHICLE AND OCCUPANTS OF A MOTORCYCLE THAT CARRIES ITS OWN
 LIABILITY INSURANCE PER THE REQUIREMENTS OF ARTICLE SIX OF  THE  VEHICLE
 AND TRAFFIC LAW SHALL NOT BE ELIGIBLE FOR BENEFITS.
   (D)  AN INSURER MAY EXCLUDE FROM COVERAGE REQUIRED BY THIS SECTION THE
 FOLLOWING INDIVIDUALS:
   (I) A DELIVERY DRIVER WHO INTENTIONALLY CAUSES HIS OWN INJURY  OR  WHO
 IS  INJURED  AS  A  RESULT  OF  EXHIBITING DANGEROUS CONDUCT WHILE IN AN
 INTOXICATED CONDITION OR WHILE IMPAIRED BY THE USE OF A DRUG, OR
   (II) ANY OTHER PERSON WHO INTENTIONALLY CAUSES HIS OWN INJURY  OR  WHO
 IS  INJURED  AS  A  RESULT  OF  EXHIBITING DANGEROUS CONDUCT WHILE IN AN
 INTOXICATED CONDITION OR WHILE IMPAIRED BY THE USE OF A DRUG.
   (E) INSURANCE MAINTAINED BY ANY THIRD-PARTY FOOD DELIVERY  SERVICE  TO
 SATISFY  THE  REQUIREMENTS  OF  THIS  SECTION SHALL BE OFFERED WITHOUT A
 DEDUCTIBLE. A THIRD-PARTY FOOD DELIVERY SERVICE MAY  MAINTAIN  INSURANCE
 TO SATISFY THE REQUIREMENTS OF THIS SECTION THROUGH A THIRD-PARTY INSUR-
 ER, SO LONG AS THE REQUIREMENTS OF THIS SECTION ARE MET.
   (F)  INSURANCE  OFFERED  BY  ANY  THIRD-PARTY FOOD DELIVERY SERVICE TO
 SATISFY THE REQUIREMENTS OF THIS SECTION SHALL BE PRIMARY TO ANY  HEALTH
 INSURANCE  POLICIES THAT WOULD OTHERWISE COVER THE BASIC ECONOMIC LOSSES
 DEFINED IN THIS SECTION.
   (G) A DELIVERY DRIVER SHALL RECEIVE BENEFITS IN ACCORDANCE  WITH  THIS
 SECTION  IRRESPECTIVE  OF  THE  DELIVERY  DRIVER'S IMMIGRATION STATUS OR
 STATUS AS AN INDEPENDENT CONTRACTOR. A DELIVERY DRIVER INTERFACING  WITH
 A THIRD-PARTY FOOD DELIVERY SERVICE AT THE TIME OF A QUALIFYING ACCIDENT
 SHALL  RECEIVE  BENEFITS IN ACCORDANCE WITH THIS SECTION IRRESPECTIVE OF
 WHETHER THE DELIVERY DRIVER'S VEHICLE IS  IN  COMPLIANCE  WITH  FEDERAL,
 STATE, OR LOCAL REQUIREMENTS, INCLUDING REGISTRATION REQUIREMENTS.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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