Here is the problem, Amazon is not actually driving most of "Amazon" trucks you see the on the road. They are likely being driven and owned by "Joes Delivery Company LLC". If you look at the bottom of the truck, you will generally see the ACTUAL owner name. So if anything happens to worker or public is harmed, Joes Delivery Company is cutout fall person. So if worker or public sues or fined, the company folds, the assets sold off to Joes Delivery Company, the part deus" and it starts all over again.
This act is basically saying "Nope, we are considering them Amazon employees, so we can sue or fine Amazon for their actions regardless of name on employees paycheck or car registered owner." Also, if they combined into single company, it makes union actions much easier.
This happens with FedEx/UPS as well.
So, if I understand correctly, does New York want Amazon to not hand over jobs to local small businesses and just instead operate their own fleets? Are they pushing for higher consolidation (and eventual power) to Amazon?
But what you described isn't a "problem" on it's own. Subcontracting is a thing. It's not a bad thing on its own.
You're describing the "what" - you're not describing the "why" is that an issue...
Is "Joe's delivery company" not already required to have liability insurance? Do we think this insurance is not big enough? Should we make it bigger for all delivery companies or do we need to single out Amazon's liability insurance? Do we think that a delivery company delivering the same package for Amazon vs. FedEx vs. Mary's Flowers Inc. vs. NYC Movers Inc. should have a different amount of liability? (e.g., if that delivery driver injures a pedestrian, should we require that NYC Movers Inc. covers fewer costs than Amazon)?