txt

CSSB 14(L&C): "An Act relating to transportation network companies and transportation network company drivers."

00                       CS FOR SENATE BILL NO. 14(L&C)                                                                    
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, notwithstanding any                                  
13 requirement under AS 28.20, any and all coverage afforded under the policy issued to                                    
14 an owner or operator of a personal vehicle for any loss or injury that occurs while a                                   
01       driver is logged onto the digital network of a transportation network company or while                            
02       a driver provides a prearranged ride. The right to exclude all coverage may apply to                              
03       any coverage included in an automobile 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)  Nothing in this section                                                                                 
10 (1)  implies or requires that a personal automobile insurance policy                                                    
11       provide coverage while the driver                                                                                 
12 (A)  is logged onto the digital network of a transportation                                                             
13            network company;                                                                                             
14                      (B)  is engaged in a prearranged ride; or                                                          
15 (C)  otherwise uses a personal vehicle to transport passengers                                                          
16            for compensation;                                                                                            
17 (2)  may be construed to require an insurer to use specific policy                                                      
18 language or to refer to this section in order to exclude any and all coverage for any                                   
19       loss or injury that occurs while a driver                                                                         
20 (A)  is logged onto the digital network of a transportation                                                             
21            network company; or                                                                                          
22                      (B)  provides a prearranged ride; or                                                               
23 (3)  precludes an insurer from providing coverage for the personal                                                      
24 vehicle of a transportation network company driver if the insurer chooses to provide                                    
25       coverage by contract or endorsement.                                                                              
26 (c)  Automobile insurers that exclude coverage under (a) of this section do not                                         
27 have a duty to defend or indemnify any claim expressly excluded under (a) of this                                       
28 section. Nothing in this section may be considered to invalidate or limit an exclusion                                  
29 contained in a policy, including any policy in use or approved for use in this state                                    
30 before the enactment of this section, that excludes coverage for vehicles used to carry                                 
31       persons or property for a charge or available for hire by the public.                                             
01 (d)  An automobile insurer that defends or indemnifies a claim against a driver                                         
02 that is excluded under the terms of its policy shall have a right of contribution against                               
03 other insurers that provide automobile insurance to the same driver in satisfaction of                                  
04       the coverage requirements of AS 28.23.050 at the time of loss.                                                    
05 (e)  In a claims coverage investigation, a transportation network company shall                                         
06 immediately provide, upon request by directly involved parties or any insurer of the                                    
07 transportation network company driver, if applicable, the precise times that a                                          
08 transportation network company driver logged onto and off of the digital network of a                                   
09 transportation network company in the 12-hour period immediately preceding and in                                       
10 the 12-hour period immediately following the accident. Insurers potentially providing                                   
11 coverage shall disclose, upon request of any insurer involved in the claim, the                                         
12 applicable coverages, exclusions, and limits provided under any automobile insurance                                    
13       maintained under AS 28.23.050.                                                                                    
14 (f)  In this section, "digital network," "personal vehicle," "prearranged ride,"                                        
15 "transportation network company," "transportation network company driver," and                                          
16       "driver" have the meanings given in AS 28.23.180.                                                                 
17    * Sec. 3. AS 23.30.230(a) is amended to read:                                                                      
18            (a)  The following persons are not covered by this chapter:                                                  
19                 (1)  a part-time baby-sitter;                                                                           
20                 (2)  a cleaning person;                                                                                 
21                 (3)  harvest help and similar part-time or transient help;                                              
22 (4)  a person employed as a sports official on a contractual basis and                                                  
23 who officiates only at sports events in which the players are not compensated; in this                                  
24 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper,                                           
25       timekeeper, organizer, or other person who is a neutral participant in a sports event;                            
26                 (5)  a person employed as an entertainer on a contractual basis;                                        
27                 (6)  a commercial fisherman, as defined in AS 16.05.940;                                                
28 (7)  an individual who drives a taxicab whose compensation and written                                                  
29 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours                                        
30 worked by the individual or the areas in which the individual may work are restricted                                   
31       except to comply with local ordinances;                                                                           
01 (8)  a participant in the Alaska temporary assistance program                                                           
02 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than                                     
03       subsidized or unsubsidized work or on-the-job training;                                                           
04 (9)  a person employed as a player or coach by a professional hockey                                                    
05 team if the person is covered under a health care insurance plan provided by the                                        
06 professional hockey team, the coverage is applicable to both work-related and                                           
07 nonwork-related injuries, and the coverage provides medical and related benefits as                                     
08 required under this chapter, except that coverage may not be limited to two years from                                  
09 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care                                  
10       insurance" has the meaning given in AS 21.12.050; [AND]                                                           
11 (10)  a person working as a qualified real estate licensee who performs                                                 
12 services under a written contract that provides that the person will not be treated as an                               
13 employee for federal income tax or workers' compensation purposes; in this                                              
14 paragraph, "qualified real estate licensee" means a person who is required to be                                        
15 licensed under AS 08.88.161 and whose payment for services is directly related to                                       
16       sales or other output rather than the number of hours worked; and                                             
17 (11)  a transportation network company driver who provides a                                                        
18 prearranged ride or is otherwise logged onto the digital network of a                                               
19       transportation network company as a driver.                                                                   
20    * Sec. 4. AS 23.30.230(c) is amended by adding new paragraphs to read:                                             
21                 (4)  "digital network" has the meaning given in AS 28.23.180;                                           
22                 (5)  "prearranged ride" has the meaning given in AS 28.23.180;                                          
23 (6)  "transportation network company" has the meaning given in                                                          
24       AS 28.23.180;                                                                                                     
25 (7)  "transportation network company driver" has the meaning given in                                                   
26       AS 28.23.180.                                                                                                     
27    * Sec. 5. AS 28 is amended by adding a new chapter to read:                                                        
28            Chapter 23. Transportation Network Companies and Drivers.                                                  
29 Sec. 28.23.005. Administration. The Department of Commerce, Community,                                                
30       and Economic Development shall administer this chapter.                                                           
31 Sec. 28.23.010. Not other carriers. A transportation network company or                                               
01 driver is not a common carrier, contract carrier, or motor carrier, and may not provide                                 
02 taxicab or for-hire vehicle service. The state or a municipality may not require a                                      
03 transportation network company driver to register the personal vehicle the driver uses                                  
04       to provide prearranged rides as a commercial or for-hire vehicle.                                                 
05 Sec. 28.23.020. Fare collected for services. A transportation network                                                 
06 company may charge a fare to a transportation network company rider. Before a fare is                                   
07 collected from a rider, the transportation network company shall disclose to the rider,                                 
08 on the company's Internet website or in the company's software application, the                                         
09 transportation network company's fare or fare calculation method. The transportation                                    
10 network company shall provide riders the option of receiving an estimated fare before                                   
11       the rider enters the vehicle of a transportation network company driver.                                          
12 Sec. 28.23.030. Identification of transportation network company vehicles                                             
13 and drivers. Before a rider enters the personal vehicle of a transportation network                                   
14 company driver, the transportation network company shall display on the company's                                       
15 Internet website or in the company's software application a picture of the                                              
16 transportation network company driver and the license plate number of the personal                                      
17       vehicle providing the prearranged ride.                                                                           
18 Sec. 28.23.040. Electronic receipt. Within a reasonable period following the                                          
19 completion of a trip, the transportation network company shall transmit to the rider, on                                
20 behalf of the transportation network company driver, an electronic receipt showing the                                  
21       origin and destination of the trip and itemizing the fare paid, if any.                                           
22 Sec. 28.23.050. Financial responsibility of transportation network                                                    
23 companies. (a) A transportation network company driver, or transportation network                                     
24 company on behalf of the driver, shall maintain primary automobile insurance that                                       
25 recognizes that the driver is a transportation network company driver or otherwise                                      
26 uses a vehicle to transport passengers for compensation and that covers the driver                                      
27 while the driver is logged onto the digital network of a transportation network                                         
28       company or while the driver is engaged in a prearranged ride.                                                     
29 (b)  The following automobile insurance requirements shall apply while a                                                
30 participating transportation network company driver is logged onto the digital network                                  
31 of a transportation network company and is available to receive transportation requests                                 
01       but is not engaged in a prearranged ride:                                                                         
02                 (1)  primary automobile liability insurance in the amount of at least                                   
03       $50,000 for death and bodily injury for each person, $100,000 for death and bodily                                
04       injury for each incident, and $25,000 for property damage;                                                        
05                 (2)  uninsured or underinsured motor vehicle coverage as required                                       
06       under AS 21.96.020 and AS 28.20.440;                                                                              
07                 (3)  the coverage requirements of this subsection may be satisfied by                                   
08                      (A)  automobile insurance maintained by the transportation                                         
09            network company driver;                                                                                      
10 (B)  automobile insurance maintained by the transportation                                                              
11            network company; or                                                                                          
12                      (C)  any combination of (A) and (B) of this paragraph.                                             
13 (c)  The following automobile insurance requirements shall apply while a                                                
14       transportation network company driver is engaged in a prearranged ride:                                           
15 (1)  primary automobile liability insurance that provides at least                                                      
16       $1,000,000 for death, bodily injury, and property damage;                                                         
17 (2)  uninsured or underinsured motor vehicle coverage as required                                                       
18       under AS 21.96.020 and AS 28.20.440;                                                                              
19                 (3)  the coverage requirements of this subsection may be satisfied by                                   
20 (A)  automobile insurance maintained by the transportation                                                              
21            network company driver;                                                                                      
22 (B)  automobile insurance maintained by the transportation                                                              
23            network company; or                                                                                          
24                      (C)  a combination of (A) and (B) of this paragraph.                                               
25 (d)  If insurance maintained by a driver under (b) or (c) of this section has                                           
26 lapsed or does not provide the required coverage, insurance maintained by a                                             
27 transportation network company must provide the coverage required by this section                                       
28 beginning with the first dollar of a claim, and the transportation network company                                      
29       insurer has the duty to defend that claim.                                                                        
30 (e)  Coverage under an automobile insurance policy maintained by the                                                    
31 transportation network company may not be dependent on a personal automobile                                            
01       insurer first denying a claim nor shall a personal automobile insurance policy be                                 
02       required first to deny a claim.                                                                                   
03 (f)  Insurance required by this section may be placed with an insurer licensed                                          
04 under AS 21.09.060 or with a surplus lines insurer eligible under AS 21.34 that has a                                   
05 credit rating not lower than A- from A.M. Best or a similar rating from another rating                                  
06       agency recognized by the division of insurance.                                                                   
07            (g)  Insurance satisfying the requirements of this section shall be considered to                            
08       satisfy the financial responsibility requirement for a motor vehicle under AS 28.20.                              
09            (h)  A transportation network company driver shall carry proof of coverage                                   
10 under (b) and (c) of this section with the driver at all times during the driver's use of a                             
11 vehicle in connection with a digital network of a transportation network company. In                                    
12 the event of an accident, a transportation network company driver shall provide the                                     
13 insurance coverage information to the directly interested parties, automobile insurers,                                 
14 and investigating police officers upon request under AS 28.22.019. Upon that request,                                   
15 a transportation network company driver shall also disclose to directly interested                                      
16 parties, automobile insurers, and investigating police officers whether the driver was                                  
17 logged onto the digital network of a transportation network company or on a                                             
18       prearranged ride at the time of an accident.                                                                      
19 (i)  In the event of a loss involving a personal vehicle used in connection with a                                      
20 transportation network company and if the personal vehicle is subject to a lien, the                                    
21 insurance carrier for the transportation network company shall pay a claim covered                                      
22 under collision physical damage coverage or comprehensive physical damage                                               
23 coverage directly to the business repairing the personal vehicle or jointly to the owner                                
24       of the personal vehicle and the primary lienholder on the covered personal vehicle.                               
25 Sec. 28.23.060. Transportation network company automobile insurance                                                   
26 disclosures. A transportation network company shall disclose in writing to                                            
27 transportation network company drivers the following before the drivers are allowed                                     
28 to accept a request for a prearranged ride on the digital network of the transportation                                 
29       network company:                                                                                                  
30 (1)  the insurance coverage, including the types of coverage and the                                                    
31 limits for each coverage, that the transportation network company provides while the                                    
01 transportation network company driver uses a personal vehicle in connection with a                                      
02       transportation network company's digital network;                                                                 
03 (2)  that the automobile insurance policy of the transportation network                                                 
04 company driver might not provide any coverage while the driver is logged onto the                                       
05 digital network of a transportation network company and is available to receive                                         
06 transportation requests or is engaged in a prearranged ride, depending on the terms of                                  
07       the automobile insurance policy of the driver; and                                                                
08 (3)  that, if the personal vehicle the transportation network company                                                   
09 driver uses to provide transportation network services has a lien against it, using the                                 
10 motor vehicle for transportation network services without physical damage coverage                                      
11       may violate the terms of the contract with the lienholder.                                                        
12 Sec. 28.23.070. Certificate of Insurance. A transportation network company                                            
13 shall file a written certificate of insurance with the director of the division of insurance                            
14 demonstrating that the transportation network company has satisfied the requirements                                    
15 of AS 28.23.050. The certificate of insurance must state that the applicable insurance                                  
16 policy may not be cancelled unless written notice is provided to the division of                                        
17       insurance at least 30 days before cancellation.                                                                   
18 Sec. 28.23.080. Limitations on transportation network companies. A                                                    
19 transportation network company is not an employer of transportation network drivers                                     
20 under AS 23.20.520 and a transportation network company driver is an independent                                        
21 contractor for all purposes and is not an employee of the transportation network                                        
22       company if the transportation network company                                                                     
23 (1)  does not unilaterally prescribe specific hours during which a driver                                               
24       shall be logged onto the digital network of the transportation network company;                                   
25 (2)  does not impose restrictions on the ability of the driver to use the                                               
26       digital network of other transportation network companies;                                                        
27 (3)  does not restrict a driver from engaging in any other occupation or                                                
28       business; and                                                                                                     
29 (4)  enters into a written agreement with the driver stating that the                                                   
30       driver is an independent contractor for the transportation network company.                                       
31 Sec. 28.23.090. Zero tolerance for drug or alcohol use. The transportation                                            
01 network company shall implement a zero-tolerance policy prohibiting drug and                                            
02 alcohol use while a driver is providing a prearranged ride or is logged onto the digital                                
03 network of the transportation network company but not providing a prearranged ride.                                     
04 The transportation network company shall post the company's zero-tolerance policy                                       
05       prohibiting drug and alcohol use on the company's Internet website.                                               
06 Sec. 28.23.100. Transportation network company driver requirements.                                                   
07 Before a transportation network company allows an individual to accept trip requests                                    
08       through its digital network, the transportation network company, or a third party, shall                          
09 (1)  require the individual to submit to the transportation network                                                     
10 company an application that includes the individual's address, age, and driver's license                                
11 number, the motor vehicle registration and automobile liability insurance information                                   
12 for the individual's personal vehicle, and other information required by the                                            
13       transportation network company;                                                                                   
14 (2)  conduct a local and national criminal background check for each                                                    
15       applicant that reviews                                                                                            
16 (A)  a multi-state or multi-jurisdiction criminal records locator                                                       
17            or a similar commercial nationwide database with validation; and                                             
18 (B)  the United States Department of Justice National Sex                                                               
19            Offender Public Website; and                                                                                 
20 (3)  obtain and review a driving history research report for the                                                        
21       individual.                                                                                                       
22 Sec. 28.23.110. Nondiscrimination and accessibility. (a) The transportation                                           
23 network company shall adopt a policy prohibiting discrimination based on destination,                                   
24 race, color, national origin, religious belief or affiliation, sex, disability, age, sexual                             
25 orientation, or gender identity with respect to a rider or potential rider. The company                                 
26       shall inform drivers of the policy.                                                                               
27 (b)  A transportation network company driver shall comply with all applicable                                           
28       laws relating to accommodation of service animals.                                                                
29 (c)  A transportation network company may not impose additional charges for                                             
30       providing services to riders with physical disabilities because of those disabilities.                            
31 Sec. 28.23.120. Records. A transportation network company shall keep                                                  
01       records                                                                                                           
02                 (1)  maintained by the transportation network company for an                                            
03       individual prearranged ride for at least one year from the date of the prearranged ride;                          
04       and                                                                                                               
05                 (2)  maintained by individual transportation network company drivers                                    
06       for one year after the agreement between the transportation network company and                                   
07       driver entered into under AS 28.23.080(4) ends.                                                                   
08            Sec. 28.23.180. Definitions. In this chapter,                                                              
09                 (1)  "digital network" means any online-enabled application, software,                                  
10 website, or system offered or used by a transportation network company that enables                                     
11       the prearrangement of rides with transportation network company drivers;                                          
12 (2)  "personal vehicle" means a motor vehicle that is used by a                                                         
13 transportation network company driver and is owned, leased, or otherwise authorized                                     
14 for use by the transportation network company driver; "personal vehicle" does not                                       
15       include a taxi, limousine, or other commercial motor vehicle for hire;                                            
16 (3)  "prearranged ride" means transportation provided by a driver to a                                                  
17 rider, beginning when a driver accepts a ride requested by a rider through a digital                                    
18 network controlled by a transportation network company, continuing while the driver                                     
19 transports a requesting rider, and ending when the last requesting rider departs from                                   
20 the personal vehicle; "prearranged ride" does not include shared expense carpool or                                     
21 vanpool arrangements or transportation provided using a taxi, limousine, or other                                       
22       commercial motor vehicle for hire;                                                                                
23 (4)  "transportation network company" means a corporation,                                                              
24 partnership, sole proprietorship, or other entity that uses a digital network to connect                                
25 transportation network company riders to transportation network company drivers who                                     
26 provide prearranged rides; a transportation network company may not be considered to                                    
27 control, direct, or manage the personal vehicles or transportation network company                                      
28       drivers that connect to its digital network, except where agreed to by written contract;                          
29 (5)  "transportation network company driver" or "driver" means an                                                       
30       individual who                                                                                                    
31 (A)  receives connections to potential passengers and related                                                           
01 services from a transportation network company in exchange for payment of a                                             
02            fee to the transportation network company; and                                                               
03 (B)  uses a personal vehicle to offer or provide a prearranged                                                          
04 ride to riders upon connection through a digital network controlled by a                                                
05 transportation network company in return for compensation or payment of a                                               
06            fee;                                                                                                         
07 (6)  "transportation network company rider" or "rider" means an                                                         
08 individual or person who uses a digital network of a transportation network company                                     
09 to connect with a transportation network company driver who provides prearranged                                        
10       rides to the rider in the driver's personal vehicle between points chosen by the rider.                           
11 Sec. 28.23.190. Short title. This chapter may be cited as the Transportation                                          
12       Network Companies Act.                                                                                            
13    * Sec. 6. AS 29.10.200 is amended by adding a new paragraph to read:                                               
14 (66)  AS 29.35.148 (regulation of transportation network companies or                                                   
15       drivers).                                                                                                         
16    * Sec. 7. AS 29.35 is amended by adding a new section to read:                                                     
17 Sec. 29.35.148. Regulation of transportation network companies or                                                     
18 drivers. (a) The authority to regulate transportation network companies and                                           
19 transportation network drivers is reserved to the state, and, except as specifically                                    
20 provided by statute, a municipality may not enact or enforce an ordinance regulating                                    
21       transportation network companies or transportation network drivers.                                               
22            (b)  This section applies to home rule and general law municipalities.                                       
23            (c)  In this section,                                                                                        
24 (1)  "transportation network company" has the meaning given in                                                          
25       AS 28.23.180;                                                                                                     
26 (2)  "transportation network company driver" has the meaning given in                                                   
27       AS 28.23.180.