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SB 14: "An Act relating to transportation network companies and transportation network company drivers."

00                             SENATE BILL NO. 14                                                                          
01 "An Act relating to transportation network companies and transportation network                                         
02 company drivers."                                                                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
05 to read:                                                                                                                
06 LEGISLATIVE INTENT. It is the intent of the legislature to clarify the Alaska                                           
07 Workers' Compensation Act, ensure the safety, reliability, and cost-effectiveness of rides                              
08 provided by transportation network company drivers in the state, and preserve and enhance                               
09 access to these important transportation options for residents of and visitors to the state.                            
10    * Sec. 2. AS 21.96 is amended by adding a new section to read:                                                     
11 Sec. 21.96.018. Transportation network company insurance provisions. (a)                                            
12 Insurers that write automobile insurance in the state may exclude any and all coverage                                  
13 offered under the policy issued to an owner or operator of a personal vehicle for any                                   
14 loss or injury that occurs while a driver is logged onto the digital network of a                                       
01       transportation network company or while a driver provides a prearranged ride. The                                 
02       right to exclude all coverage may apply to any coverage included in an automobile                                 
03       insurance policy, including                                                                                     
04                 (1)  liability coverage for bodily injury and property damage;                                          
05                 (2)  uninsured and underinsured motorist coverage;                                                      
06                 (3)  medical payments coverage;                                                                         
07                 (4)  comprehensive physical damage coverage; and                                                        
08                 (5)  collision physical damage coverage.                                                                
09            (b)  Exclusions under (a) of this section apply notwithstanding any requirement                              
10 under AS 28.20. Nothing in this section implies or requires that a personal automobile                                  
11 insurance policy provide coverage while the driver is logged onto the digital network                                   
12 of a transportation network company, while the driver is engaged in a prearranged                                       
13 ride, or while the driver otherwise uses a personal vehicle to transport passengers for                                 
14       compensation.                                                                                                     
15 (c)  Nothing in this section precludes an insurer from providing coverage for                                           
16 the personal vehicle of a transportation network company driver if the insurer chooses                                  
17       to provide coverage by contract or endorsement.                                                                   
18 (d)  Automobile insurers that exclude coverage under (a) of this section do not                                         
19 have a duty to defend or indemnify any claim expressly excluded under (a) of this                                       
20 section. Nothing in this section may be considered to invalidate or limit an exclusion                                  
21 contained in a policy, including any policy in use or approved for use in this state                                    
22 before the enactment of this section, that excludes coverage for vehicles used to carry                                 
23       persons or property for a charge or available for hire by the public.                                             
24 (e)  An automobile insurer that defends or indemnifies a claim against a driver                                         
25 that is excluded under the terms of its policy shall have a right of contribution against                               
26 other insurers that provide automobile insurance to the same driver in satisfaction of                                  
27       the coverage requirements of AS 28.23.060 at the time of loss.                                                    
28 (f)  In a claims coverage investigation, a transportation network company and                                           
29 any insurer potentially providing coverage under AS 28.23.060 shall cooperate to                                        
30 facilitate the exchange of relevant information with directly involved parties and any                                  
31 insurer of the transportation network company driver, if applicable, including the                                      
01 precise times that a transportation network company driver logged onto and off of the                                   
02 digital network of a transportation network company in the 12-hour period                                               
03 immediately preceding and in the 12-hour period immediately following the accident                                      
04 and disclose to one another a clear description of the coverage, exclusions, and limits                                 
05       provided under any automobile insurance maintained under AS 28.23.060.                                            
06            (g)  In this section, "digital network," "personal vehicle," "prearranged ride,"                             
07       "transportation network company," "transportation network company driver," and                                    
08       "driver" have the meanings given in AS 28.23.180.                                                                 
09    * Sec. 3. AS 23.30.230(a) is amended to read:                                                                      
10            (a)  The following persons are not covered by this chapter:                                                  
11                 (1)  a part-time baby-sitter;                                                                           
12                 (2)  a cleaning person;                                                                                 
13                 (3)  harvest help and similar part-time or transient help;                                              
14 (4)  a person employed as a sports official on a contractual basis and                                                  
15 who officiates only at sports events in which the players are not compensated; in this                                  
16 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper,                                           
17       timekeeper, organizer, or other person who is a neutral participant in a sports event;                            
18                 (5)  a person employed as an entertainer on a contractual basis;                                        
19                 (6)  a commercial fisherman, as defined in AS 16.05.940;                                                
20 (7)  an individual who drives a taxicab whose compensation and written                                                  
21 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours                                        
22 worked by the individual or the areas in which the individual may work are restricted                                   
23       except to comply with local ordinances;                                                                           
24 (8)  a participant in the Alaska temporary assistance program                                                           
25 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than                                     
26       subsidized or unsubsidized work or on-the-job training;                                                           
27 (9)  a person employed as a player or coach by a professional hockey                                                    
28 team if the person is covered under a health care insurance plan provided by the                                        
29 professional hockey team, the coverage is applicable to both work related and                                           
30 nonwork related injuries, and the coverage provides medical and related benefits as                                     
31 required under this chapter, except that coverage may not be limited to two years from                                  
01 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care                                  
02       insurance" has the meaning given in AS 21.12.050; and                                                             
03 (10)  a person working as a qualified real estate licensee who performs                                                 
04 services under a written contract that provides that the person will not be treated as an                               
05 employee for federal income tax or workers' compensation purposes; in this                                              
06 paragraph, "qualified real estate licensee" means a person who is required to be                                        
07 licensed under AS 08.88.161 and whose payment for services is directly related to                                       
08       sales or other output rather than the number of hours worked; and                                             
09 (11)  a transportation network company driver who provides a                                                        
10 prearranged ride or is otherwise logged onto the digital network of a                                               
11       transportation network company as a driver.                                                                   
12    * Sec. 4. AS 23.30.230(c) is amended by adding new paragraphs to read:                                             
13                 (4)  "digital network" has the meaning given in AS 28.23.180;                                           
14                 (5)  "prearranged ride" has the meaning given in AS 28.23.180;                                          
15 (6)  "transportation network company" has the meaning given in                                                          
16       AS 28.23.180;                                                                                                     
17 (7)  "transportation network company driver" has the meaning given in                                                   
18       AS 28.23.180.                                                                                                     
19    * Sec. 5. AS 28 is amended by adding a new chapter to read:                                                        
20            Chapter 23. Transportation Network Companies and Drivers.                                                  
21 Sec. 28.23.010. Not other carriers. A transportation network company or                                               
22 driver is not a common carrier, contract carrier, or motor carrier, and may not provide                                 
23 taxicab or for-hire vehicle service. The state or a municipality may not require a                                      
24 transportation network company driver to register the personal vehicle the driver uses                                  
25       to provide prearranged rides as a commercial or for-hire vehicle.                                                 
26 Sec. 28.23.020. Business license required; agent. A transportation network                                            
27 company shall comply with the provisions of AS 43.70 (Alaska Business License                                           
28 Act). A transportation network company shall maintain an agent for service of process                                   
29       in the state.                                                                                                     
30 Sec. 28.23.030. Fare collected for services. A transportation network                                                 
31 company may charge a fare on behalf of a transportation network company driver for                                      
01 a service provided to a transportation network company rider. Before a fare is                                          
02 collected from a rider, the transportation network company shall disclose to the rider,                                 
03 on the company's Internet website or in the company's software application, the                                         
04 transportation network company's fare or fare calculation method. The transportation                                    
05 network company shall provide riders the option of receiving an estimated fare before                                   
06       the rider enters the vehicle of a transportation network company driver.                                          
07 Sec. 28.23.040. Identification of transportation network company vehicles                                             
08 and drivers. Before a rider enters the personal vehicle of a transportation network                                   
09 company driver, the transportation network company shall display on the company's                                       
10 Internet website or in the company's software application a picture of the                                              
11 transportation network company driver and the license plate number of the personal                                      
12       vehicle providing the prearranged ride.                                                                           
13 Sec. 28.23.050. Electronic receipt. Within a reasonable period following the                                          
14 completion of a trip, the transportation network company shall transmit to the rider, on                                
15 behalf of the transportation network company driver, an electronic receipt showing the                                  
16       origin and destination of the trip and itemizing the fare paid, if any.                                           
17 Sec. 28.23.060. Financial responsibility of transportation network                                                    
18 companies. (a) A transportation network company driver, or transportation network                                     
19 company on behalf of the driver, shall maintain primary automobile insurance that                                       
20 recognizes that the driver is a transportation network company driver or otherwise                                      
21 uses a vehicle to transport passengers for compensation and that covers the driver                                      
22 while the driver is logged onto the digital network of a transportation network                                         
23       company or while the driver is engaged in a prearranged ride.                                                     
24 (b)  The following automobile insurance requirements shall apply while a                                                
25 participating transportation network company driver is logged onto the digital network                                  
26 of a transportation network company and is available to receive transportation requests                                 
27       but is not engaged in a prearranged ride:                                                                         
28 (1)  primary automobile liability insurance in the amount of at least                                                   
29 $50,000 for death and bodily injury for each person, $100,000 for death and bodily                                      
30       injury for each incident, and $25,000 for property damage;                                                        
31                 (2)  the coverage requirements of this subsection may be satisfied by                                   
01                      (A)  automobile insurance maintained by the transportation                                         
02            network company driver;                                                                                      
03                      (B)  automobile insurance maintained by the transportation                                         
04            network company; or                                                                                          
05                      (C)  any combination of (A) and (B) of this paragraph.                                             
06            (c)  The following automobile insurance requirements shall apply while a                                     
07       transportation network company driver is engaged in a prearranged ride:                                           
08                 (1)  primary automobile liability insurance that provides at least                                      
09       $1,000,000 for death, bodily injury, and property damage;                                                         
10                 (2)  the coverage requirements of this subsection may be satisfied by                                   
11 (A)  automobile insurance maintained by the transportation                                                              
12            network company driver;                                                                                      
13 (B)  automobile insurance maintained by the transportation                                                              
14            network company; or                                                                                          
15                      (C)  a combination of (A) and (B) of this paragraph.                                               
16 (d)  If insurance maintained by a driver under (b) or (c) of this section has                                           
17 lapsed or does not provide the required coverage, insurance maintained by a                                             
18 transportation network company must provide the coverage required by this section                                       
19 beginning with the first dollar of a claim, and the transportation network company                                      
20       insurer has the duty to defend that claim.                                                                        
21 (e)  Coverage under an automobile insurance policy maintained by the                                                    
22 transportation network company may not be dependent on a personal automobile                                            
23 insurer first denying a claim nor shall a personal automobile insurance policy be                                       
24       required first to deny a claim.                                                                                   
25 (f)  Insurance required by this section may be placed with an insurer licensed                                          
26 under AS 21.09.060 or with a surplus lines insurer eligible under AS 21.34 that has a                                   
27 credit rating not lower than A- from A.M. Best or a similar rating from another rating                                  
28       agency recognized by the division of insurance.                                                                   
29 (g)  Insurance satisfying the requirements of this section shall be considered to                                       
30       satisfy the financial responsibility requirement for a motor vehicle under AS 28.20.                              
31 (h)  A transportation network company driver shall carry proof of coverage                                              
01 under (b) and (c) of this section with the driver at all times during the driver's use of a                             
02 vehicle in connection with a digital network of a transportation network company. In                                    
03 the event of an accident, a transportation network company driver shall provide the                                     
04 insurance coverage information to the directly interested parties, automobile insurers,                                 
05 and investigating police officers upon request under AS 28.22.019. Upon that request,                                   
06 a transportation network company driver shall also disclose to directly interested                                      
07 parties, automobile insurers, and investigating police officers whether the driver was                                  
08 logged onto the digital network of a transportation network company or on a                                             
09       prearranged ride at the time of an accident.                                                                      
10 (i)  In the event of a loss involving a personal vehicle used in connection with a                                      
11 transportation network company and if the personal vehicle is subject to a lien, the                                    
12 insurance carrier for the transportation network company shall pay a claim covered                                      
13 under collision physical damage coverage or comprehensive physical damage                                               
14 coverage directly to the business repairing the personal vehicle or jointly to the owner                                
15       of the personal vehicle and the primary lienholder on the covered personal vehicle.                               
16 Sec. 28.23.070. Transportation network company automobile insurance                                                   
17 disclosures. A transportation network company shall disclose in writing to                                            
18 transportation network company drivers the following before the drivers are allowed                                     
19 to accept a request for a prearranged ride on the digital network of the transportation                                 
20       network company:                                                                                                  
21 (1)  the insurance coverage, including the types of coverage and the                                                    
22 limits for each coverage, that the transportation network company provides while the                                    
23 transportation network company driver uses a personal vehicle in connection with a                                      
24       transportation network company's digital network;                                                                 
25 (2)  that the automobile insurance policy of the transportation network                                                 
26 company driver might not provide any coverage while the driver is logged onto the                                       
27 digital network of a transportation network company and is available to receive                                         
28 transportation requests or is engaged in a prearranged ride, depending on the terms of                                  
29       the automobile insurance policy of the driver; and                                                                
30 (3)  that, if the personal vehicle the transportation network company                                                   
31 driver uses to provide transportation network services has a lien against it, using the                                 
01       motor vehicle for transportation network services without physical damage coverage                                
02       may violate the terms of the contract with the lienholder.                                                        
03 Sec. 28.23.080. Limitations on transportation network companies. A                                                    
04 transportation network company is not an employer under AS 23.20.520. A                                                 
05 transportation network company driver is an independent contractor and not an                                           
06 employee of the transportation network company if the transportation network                                            
07       company                                                                                                           
08                 (1)  does not unilaterally prescribe specific hours during which a driver                               
09       shall be logged onto the digital network of the transportation network company;                                   
10 (2)  does not impose restrictions on the ability of the driver to use the                                               
11       digital network of other transportation network companies;                                                        
12 (3)  does not restrict a driver from engaging in any other occupation or                                                
13       business; and                                                                                                     
14 (4)  enters into a written agreement with the driver stating that the                                                   
15       driver is an independent contractor for the transportation network company.                                       
16 Sec. 28.23.090. Zero tolerance for drug or alcohol use. The transportation                                            
17 network company shall implement a zero-tolerance policy prohibiting drug and                                            
18 alcohol use while a driver is providing a prearranged ride or is logged onto the digital                                
19 network of the transportation network company but not providing a prearranged ride.                                     
20 The transportation network company shall post the company's zero-tolerance policy                                       
21       prohibiting drug and alcohol use on the company's Internet website.                                               
22 Sec. 28.23.100. Transportation network company driver requirements.                                                   
23 Before a transportation network company allows an individual to accept trip requests                                    
24       through its digital network, the transportation network company shall                                             
25 (1)  require the individual to submit to the transportation network                                                     
26 company an application that includes the individual's address, age, and driver's license                                
27 number, the motor vehicle registration and automobile liability insurance information                                   
28 for the individual's personal vehicle, and other information required by the                                            
29       transportation network company;                                                                                   
30 (2)  conduct a local and national criminal background check for each                                                    
31       applicant that reviews                                                                                            
01                      (A)  a multi-state or multi-jurisdiction criminal records locator                                  
02            or a similar commercial nationwide database with validation; and                                             
03                      (B)  the United States Department of Justice National Sex                                          
04            Offender Public Website; and                                                                                 
05                 (3)  obtain and review a driving history research report for the                                        
06       individual.                                                                                                       
07 Sec. 28.23.110. Nondiscrimination and accessibility. (a) The transportation                                           
08 network company shall adopt a policy prohibiting discrimination based on destination,                                   
09 race, color, national origin, religious belief or affiliation, sex, disability, age, sexual                             
10 orientation, or gender identity with respect to a rider or potential rider. The company                                 
11       shall inform drivers of the policy.                                                                               
12 (b)  A transportation network company driver shall comply with all applicable                                           
13       laws relating to accommodation of service animals.                                                                
14 (c)  A transportation network company may not impose additional charges for                                             
15       providing services to riders with physical disabilities because of those disabilities.                            
16 Sec. 28.23.120. Records. A transportation network company shall keep                                                  
17       records                                                                                                           
18 (1)  maintained by the transportation network company for an                                                            
19 individual prearranged ride for at least one year from the date of the prearranged ride;                                
20       and                                                                                                               
21 (2)  maintained by individual transportation network company drivers                                                    
22 for one year after the agreement between the transportation network company and                                         
23       driver entered into under AS 28.23.080(4) ends.                                                                   
24            Sec. 28.23.180. Definitions. In this chapter,                                                              
25 (1)  "digital network" means any online-enabled application, software,                                                  
26 website, or system offered or used by a transportation network company that enables                                     
27       the prearrangement of rides with transportation network company drivers;                                          
28 (2)  "personal vehicle" means a motor vehicle that is used by a                                                         
29 transportation network company driver and is owned, leased, or otherwise authorized                                     
30 for use by the transportation network company driver; "personal vehicle" does not                                       
31       include a taxi, limousine, or other commercial motor vehicle for hire;                                            
01 (3)  "prearranged ride" means transportation provided by a driver to a                                                  
02 rider, beginning when a driver accepts a ride requested by a rider through a digital                                    
03 network controlled by a transportation network company, continuing while the driver                                     
04 transports a requesting rider, and ending when the last requesting rider departs from                                   
05 the personal vehicle; "prearranged ride" does not include shared expense carpool or                                     
06 vanpool arrangements or transportation provided using a taxi, limousine, or other                                       
07       commercial motor vehicle for hire;                                                                                
08 (4)  "transportation network company" means a corporation,                                                              
09 partnership, sole proprietorship, or other entity that uses a digital network to connect                                
10 transportation network company riders to transportation network company drivers who                                     
11 provide prearranged rides; a transportation network company may not be considered to                                    
12 control, direct, or manage the personal vehicles or transportation network company                                      
13       drivers that connect to its digital network, except where agreed to by written contract;                          
14 (5)  "transportation network company driver" or "driver" means an                                                       
15       individual who                                                                                                    
16 (A)  receives connections to potential passengers and related                                                           
17 services from a transportation network company in exchange for payment of a                                             
18            fee to the transportation network company; and                                                               
19 (B)  uses a personal vehicle to offer or provide a prearranged                                                          
20 ride to riders upon connection through a digital network controlled by a                                                
21 transportation network company in return for compensation or payment of a                                               
22            fee;                                                                                                         
23 (6)  "transportation network company rider" or "rider" means an                                                         
24 individual or person who uses a digital network of a transportation network company                                     
25 to connect with a transportation network company driver who provides prearranged                                        
26       rides to the rider in the driver's personal vehicle between points chosen by the rider.                           
27 Sec. 28.23.190. Short title. This chapter may be cited as the Transportation                                          
28       Network Companies Act.