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
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
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;
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
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
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.