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
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
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
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
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;
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
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.