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CSSB 14(FIN): "An Act relating to transportation network companies and transportation network company drivers; and providing for an effective date."

00                       CS FOR SENATE BILL NO. 14(FIN)                                                                    
01 "An Act relating to transportation network companies and transportation network                                         
02 company drivers; and providing for an effective date."                                                                  
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 09.65 is amended by adding a new section to read:                                                     
11 Sec. 09.65.350. Immunity for certain actions related to transportation                                                
12 network companies. (a) The state or a municipality, and the officers, employees, and                                  
13 agents of the state or a municipality, are not liable in tort for damages for the injury to                             
14 or death of a person or property damage resulting from an act, omission, or failure of a                                
01       transportation network company or driver to comply with the requirements of                                       
02       AS 28.23 or other law.                                                                                            
03            (b)  In this section, "transportation network company" and "driver" have the                                 
04       meanings given in AS 28.23.180.                                                                                   
05    * Sec. 3. AS 21.96 is amended by adding a new section to read:                                                     
06 Sec. 21.96.018. Transportation network company insurance provisions. (a)                                            
07 Insurers that write automobile insurance in the state may exclude, notwithstanding any                                  
08 requirement under AS 28.20, any and all coverage afforded under the policy issued to                                    
09 an owner or operator of a personal vehicle for any loss or injury that occurs while a                                   
10 driver is logged onto the digital network of a transportation network company or while                                  
11 a driver provides a prearranged ride. The right to exclude all coverage may apply to                                    
12       any coverage included in an automobile insurance policy, including                                              
13                 (1)  liability coverage for bodily injury and property damage;                                          
14                 (2)  uninsured and underinsured motorist coverage;                                                      
15                 (3)  medical payments coverage;                                                                         
16                 (4)  comprehensive physical damage coverage; and                                                        
17                 (5)  collision physical damage coverage.                                                                
18            (b)  Nothing in this section                                                                                 
19 (1)  implies or requires that a personal automobile insurance policy                                                    
20       provide coverage while the driver                                                                                 
21 (A)  is logged onto the digital network of a transportation                                                             
22            network company;                                                                                             
23                      (B)  is engaged in a prearranged ride; or                                                          
24 (C)  otherwise uses a personal vehicle to transport passengers                                                          
25            for compensation;                                                                                            
26 (2)  may be construed to require an insurer to use specific policy                                                      
27 language or to refer to this section in order to exclude any and all coverage for any                                   
28       loss or injury that occurs while a driver                                                                         
29 (A)  is logged onto the digital network of a transportation                                                             
30            network company; or                                                                                          
31                      (B)  provides a prearranged ride; or                                                               
01 (3)  precludes an insurer from providing coverage for the personal                                                      
02 vehicle of a transportation network company driver if the insurer chooses to provide                                    
03       coverage by contract or endorsement.                                                                              
04 (c)  Automobile insurers that exclude coverage under (a) of this section do not                                         
05 have a duty to defend or indemnify any claim expressly excluded under (a) of this                                       
06 section. Nothing in this section may be considered to invalidate or limit an exclusion                                  
07 contained in a policy, including any policy in use or approved for use in this state                                    
08 before the enactment of this section, that excludes coverage for vehicles used to carry                                 
09       persons or property for a charge or available for hire by the public.                                             
10 (d)  An automobile insurer that defends or indemnifies a claim against a driver                                         
11 that is excluded under the terms of its policy shall have a right of contribution against                               
12 other insurers that provide automobile insurance to the same driver in satisfaction of                                  
13       the coverage requirements of AS 28.23.050 at the time of loss.                                                    
14 (e)  In a claims coverage investigation, a transportation network company shall                                         
15 immediately provide, upon request by directly involved parties or any insurer of the                                    
16 transportation network company driver, if applicable, the precise times that a                                          
17 transportation network company driver logged onto and off of the digital network of a                                   
18 transportation network company in the 12-hour period immediately preceding and in                                       
19 the 12-hour period immediately following the accident. Insurers potentially providing                                   
20 coverage shall disclose, upon request of any insurer involved in the claim, the                                         
21 applicable coverages, exclusions, and limits provided under any automobile insurance                                    
22       maintained under AS 28.23.050.                                                                                    
23 (f)  In this section, "digital network," "personal vehicle," "prearranged ride,"                                        
24 "transportation network company," "transportation network company driver," and                                          
25       "driver" have the meanings given in AS 28.23.180.                                                                 
26    * Sec. 4. AS 23.30.230(a) is amended to read:                                                                      
27            (a)  The following persons are not covered by this chapter:                                                  
28                 (1)  a part-time baby-sitter;                                                                           
29                 (2)  a cleaning person;                                                                                 
30                 (3)  harvest help and similar part-time or transient help;                                              
31 (4)  a person employed as a sports official on a contractual basis and                                                  
01       who officiates only at sports events in which the players are not compensated; in this                            
02       paragraph, "sports official" includes an umpire, referee, judge, scorekeeper,                                     
03       timekeeper, organizer, or other person who is a neutral participant in a sports event;                            
04                 (5)  a person employed as an entertainer on a contractual basis;                                        
05                 (6)  a commercial fisherman, as defined in AS 16.05.940;                                                
06 (7)  an individual who drives a taxicab whose compensation and written                                                  
07 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours                                        
08 worked by the individual or the areas in which the individual may work are restricted                                   
09       except to comply with local ordinances;                                                                           
10 (8)  a participant in the Alaska temporary assistance program                                                           
11 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than                                     
12       subsidized or unsubsidized work or on-the-job training;                                                           
13 (9)  a person employed as a player or coach by a professional hockey                                                    
14 team if the person is covered under a health care insurance plan provided by the                                        
15 professional hockey team, the coverage is applicable to both work-related and                                           
16 nonwork-related injuries, and the coverage provides medical and related benefits as                                     
17 required under this chapter, except that coverage may not be limited to two years from                                  
18 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care                                  
19       insurance" has the meaning given in AS 21.12.050; [AND]                                                           
20 (10)  a person working as a qualified real estate licensee who performs                                                 
21 services under a written contract that provides that the person will not be treated as an                               
22 employee for federal income tax or workers' compensation purposes; in this                                              
23 paragraph, "qualified real estate licensee" means a person who is required to be                                        
24 licensed under AS 08.88.161 and whose payment for services is directly related to                                       
25       sales or other output rather than the number of hours worked; and                                             
26 (11)  a transportation network company driver who provides a                                                        
27 prearranged ride or is otherwise logged onto the digital network of a                                               
28       transportation network company as a driver.                                                                   
29    * Sec. 5. AS 23.30.230(c) is amended by adding new paragraphs to read:                                             
30                 (4)  "digital network" has the meaning given in AS 28.23.180;                                           
31                 (5)  "prearranged ride" has the meaning given in AS 28.23.180;                                          
01                 (6)  "transportation network company" has the meaning given in                                          
02       AS 28.23.180;                                                                                                     
03                 (7)  "transportation network company driver" has the meaning given in                                   
04       AS 28.23.180.                                                                                                     
05    * Sec. 6. AS 28 is amended by adding a new chapter to read:                                                        
06            Chapter 23. Transportation Network Companies and Drivers.                                                  
07 Sec. 28.23.010. Not other carriers. A transportation network company or                                               
08 driver is not a common carrier, contract carrier, or motor carrier, and may not provide                                 
09 taxicab or for-hire vehicle service. The state or a municipality may not require a                                      
10 transportation network company driver to register the personal vehicle the driver uses                                  
11       to provide prearranged rides as a commercial or for-hire vehicle.                                                 
12 Sec. 28.23.020. Fare collected for services. A transportation network                                                 
13 company may charge a fare to a transportation network company rider. Before a fare is                                   
14 collected from a rider, the transportation network company shall disclose to the rider,                                 
15 on the company's Internet website or in the company's software application, the                                         
16 transportation network company's fare or fare calculation method. The transportation                                    
17 network company shall provide riders the option of receiving an estimated fare before                                   
18       the rider enters the vehicle of a transportation network company driver.                                          
19 Sec. 28.23.030. Identification of transportation network company vehicles                                             
20 and drivers. Before a rider enters the personal vehicle of a transportation network                                   
21 company driver, the transportation network company shall display on the company's                                       
22 Internet website or in the company's software application a picture of the                                              
23 transportation network company driver and the license plate number of the personal                                      
24       vehicle providing the prearranged ride.                                                                           
25 Sec. 28.23.040. Electronic receipt. Within a reasonable period following the                                          
26 completion of a trip, the transportation network company shall transmit to the rider, on                                
27 behalf of the transportation network company driver, an electronic receipt showing the                                  
28       origin and destination of the trip and itemizing the fare paid, if any.                                           
29 Sec. 28.23.050. Financial responsibility of transportation network                                                    
30 companies. (a) A transportation network company driver, or transportation network                                     
31 company on behalf of the driver, shall maintain primary automobile insurance that                                       
01 recognizes that the driver is a transportation network company driver or otherwise                                      
02 uses a vehicle to transport passengers for compensation and that covers the driver                                      
03 while the driver is logged onto the digital network of a transportation network                                         
04       company or while the driver is engaged in a prearranged ride.                                                     
05 (b)  The following automobile insurance requirements shall apply while a                                                
06 participating transportation network company driver is logged onto the digital network                                  
07 of a transportation network company and is available to receive transportation requests                                 
08       but is not engaged in a prearranged ride:                                                                         
09 (1)  primary automobile liability insurance in the amount of at least                                                   
10 $50,000 for death and bodily injury for each person, $100,000 for death and bodily                                      
11       injury for each incident, and $25,000 for property damage;                                                        
12 (2)  uninsured or underinsured motor vehicle coverage as required                                                       
13       under AS 21.96.020 and AS 28.20.440;                                                                              
14                 (3)  the coverage requirements of this subsection may be satisfied by                                   
15 (A)  automobile insurance maintained by the transportation                                                              
16            network company driver;                                                                                      
17 (B)  automobile insurance maintained by the transportation                                                              
18            network company; or                                                                                          
19                      (C)  any combination of (A) and (B) of this paragraph.                                             
20 (c)  The following automobile insurance requirements shall apply while a                                                
21       transportation network company driver is engaged in a prearranged ride:                                           
22 (1)  primary automobile liability insurance that provides at least                                                      
23       $1,000,000 for death, bodily injury, and property damage;                                                         
24 (2)  uninsured or underinsured motor vehicle coverage as required                                                       
25       under AS 21.96.020 and AS 28.20.440;                                                                              
26                 (3)  the coverage requirements of this subsection may be satisfied by                                   
27 (A)  automobile insurance maintained by the transportation                                                              
28            network company driver;                                                                                      
29 (B)  automobile insurance maintained by the transportation                                                              
30            network company; or                                                                                          
31                      (C)  a combination of (A) and (B) of this paragraph.                                               
01 (d)  If insurance maintained by a driver under (b) or (c) of this section has                                           
02 lapsed or does not provide the required coverage, insurance maintained by a                                             
03 transportation network company must provide the coverage required by this section                                       
04 beginning with the first dollar of a claim, and the transportation network company                                      
05       insurer has the duty to defend that claim.                                                                        
06 (e)  Coverage under an automobile insurance policy maintained by the                                                    
07 transportation network company may not be dependent on a personal automobile                                            
08 insurer first denying a claim nor shall a personal automobile insurance policy be                                       
09       required first to deny a claim.                                                                                   
10 (f)  Insurance required by this section may be placed with an insurer licensed                                          
11 under AS 21.09.060 or with a surplus lines insurer eligible under AS 21.34 that has a                                   
12 credit rating not lower than A- from A.M. Best or a similar rating from another rating                                  
13       agency recognized by the division of insurance.                                                                   
14 (g)  Insurance satisfying the requirements of this section shall be considered to                                       
15       satisfy the financial responsibility requirement for a motor vehicle under AS 28.20.                              
16 (h)  A transportation network company driver shall carry proof of coverage                                              
17 under (b) and (c) of this section with the driver at all times during the driver's use of a                             
18 vehicle in connection with a digital network of a transportation network company. In                                    
19 the event of an accident, a transportation network company driver shall provide the                                     
20 insurance coverage information to the directly interested parties, automobile insurers,                                 
21 and investigating police officers upon request under AS 28.22.019. Upon that request,                                   
22 a transportation network company driver shall also disclose to directly interested                                      
23 parties, automobile insurers, and investigating police officers whether the driver was                                  
24 logged onto the digital network of a transportation network company or on a                                             
25       prearranged ride at the time of an accident.                                                                      
26 (i)  If the insurance carrier for the transportation network company makes a                                            
27 payment for a claim for physical damage to a personal vehicle that is subject to a lien,                                
28 the insurance carrier shall pay the claim jointly to the owner of the personal vehicle                                  
29       and the primary lienholder or directly to the business repairing the personal vehicle.                            
30 Sec. 28.23.060. Transportation network company automobile insurance                                                   
31 disclosures. A transportation network company shall disclose in writing to                                            
01 transportation network company drivers the following before the drivers are allowed                                     
02 to accept a request for a prearranged ride on the digital network of the transportation                                 
03       network company:                                                                                                  
04 (1)  the insurance coverage, including the types of coverage and the                                                    
05 limits for each coverage, that the transportation network company provides while the                                    
06 transportation network company driver uses a personal vehicle in connection with a                                      
07       transportation network company's digital network;                                                                 
08 (2)  that the automobile insurance policy of the transportation network                                                 
09 company driver might not provide any coverage while the driver is logged onto the                                       
10 digital network of a transportation network company and is available to receive                                         
11 transportation requests or is engaged in a prearranged ride, depending on the terms of                                  
12       the automobile insurance policy of the driver; and                                                                
13 (3)  that, if the personal vehicle the transportation network company                                                   
14 driver uses to provide transportation network services has a lien against it, using the                                 
15 motor vehicle for transportation network services without physical damage coverage                                      
16       may violate the terms of the contract with the lienholder.                                                        
17 Sec. 28.23.070. Certificate of insurance. A transportation network company                                            
18 shall file a written certificate of insurance with the director of the division of insurance                            
19 demonstrating that the transportation network company has satisfied the requirements                                    
20 of AS 28.23.050. The certificate of insurance must state that the applicable insurance                                  
21 policy may not be cancelled unless written notice is provided to the division of                                        
22       insurance at least 30 days before cancellation.                                                                   
23 Sec. 28.23.080. Limitations on transportation network companies. A                                                    
24 transportation network company is not an employer of transportation network drivers                                     
25 under AS 23.20.520 and a transportation network company driver is an independent                                        
26 contractor for all purposes and is not an employee of the transportation network                                        
27       company if the transportation network company                                                                     
28 (1)  does not unilaterally prescribe specific hours during which a driver                                               
29       shall be logged onto the digital network of the transportation network company;                                   
30 (2)  does not impose restrictions on the ability of the driver to use the                                               
31       digital network of other transportation network companies;                                                        
01 (3)  does not restrict a driver from engaging in any other occupation or                                                
02       business; and                                                                                                     
03 (4)  enters into a written agreement with the driver stating that the                                                   
04       driver is an independent contractor for the transportation network company.                                       
05 Sec. 28.23.090. Zero tolerance for drug or alcohol use. The transportation                                            
06 network company shall implement a zero-tolerance policy prohibiting drug and                                            
07 alcohol use while a driver is providing a prearranged ride or is logged onto the digital                                
08 network of the transportation network company but not providing a prearranged ride.                                     
09 The transportation network company shall post the company's zero-tolerance policy                                       
10       prohibiting drug and alcohol use on the company's Internet website.                                               
11 Sec. 28.23.100. Transportation network company driver requirements.                                                   
12 Before a transportation network company allows an individual to accept trip requests                                    
13       through its digital network, the transportation network company, or a third party, shall                          
14 (1)  require the individual to submit to the transportation network                                                     
15 company an application that includes the individual's address, age, and driver's license                                
16 number, the motor vehicle registration and automobile liability insurance information                                   
17 for the individual's personal vehicle, and other information required by the                                            
18       transportation network company;                                                                                   
19 (2)  conduct a local and national criminal background check for each                                                    
20       applicant that reviews                                                                                            
21 (A)  a multi-state or multi-jurisdiction criminal records locator                                                       
22            or a similar commercial nationwide database with validation; and                                             
23 (B)  the United States Department of Justice National Sex                                                               
24            Offender Public Website; and                                                                                 
25 (3)  obtain and review a driving history research report for the                                                        
26       individual.                                                                                                       
27 Sec. 28.23.110. Nondiscrimination and accessibility. (a) The transportation                                           
28 network company shall adopt a policy prohibiting discrimination based on destination                                    
29 or a class or status protected under AS 18.80.210 with respect to a rider or potential                                  
30       rider. The company shall inform drivers of the policy.                                                            
31 (b)  A transportation network company driver shall comply with all applicable                                           
01       laws relating to accommodation of service animals.                                                                
02            (c)  A transportation network company may not impose additional charges for                                  
03       providing services to riders with physical disabilities because of those disabilities.                            
04            Sec. 28.23.120. Records. A transportation network company shall keep                                       
05       records                                                                                                           
06                 (1)  maintained by the transportation network company for an                                            
07       individual prearranged ride for at least one year from the date of the prearranged ride;                          
08       and                                                                                                               
09                 (2)  maintained by individual transportation network company drivers                                    
10 for one year after the agreement between the transportation network company and                                         
11       driver entered into under AS 28.23.080(4) ends.                                                                   
12            Sec. 28.23.180. Definitions. In this chapter,                                                              
13 (1)  "digital network" means any online-enabled application, software,                                                  
14 website, or system offered or used by a transportation network company that enables                                     
15       the prearrangement of rides with transportation network company drivers;                                          
16 (2)  "personal vehicle" means a motor vehicle that is used by a                                                         
17 transportation network company driver and is owned, leased, or otherwise authorized                                     
18 for use by the transportation network company driver; "personal vehicle" does not                                       
19       include a taxi, limousine, or other commercial motor vehicle for hire;                                            
20 (3)  "prearranged ride" means transportation provided by a driver to a                                                  
21 rider, beginning when a driver accepts a ride requested by a rider through a digital                                    
22 network controlled by a transportation network company, continuing while the driver                                     
23 transports a requesting rider, and ending when the last requesting rider departs from                                   
24 the personal vehicle; "prearranged ride" does not include shared expense carpool or                                     
25 vanpool arrangements or transportation provided using a taxi, limousine, or other                                       
26       commercial motor vehicle for hire;                                                                                
27 (4)  "transportation network company" means a corporation,                                                              
28 partnership, sole proprietorship, or other entity that uses a digital network to connect                                
29 transportation network company riders to transportation network company drivers who                                     
30 provide prearranged rides; a transportation network company may not be considered to                                    
31 control, direct, or manage the personal vehicles or transportation network company                                      
01       drivers that connect to its digital network, except where agreed to by written contract;                          
02                 (5)  "transportation network company driver" or "driver" means an                                       
03       individual who                                                                                                    
04                      (A)  receives connections to potential passengers and related                                      
05            services from a transportation network company in exchange for payment of a                                  
06            fee to the transportation network company; and                                                               
07 (B)  uses a personal vehicle to offer or provide a prearranged                                                          
08 ride to riders upon connection through a digital network controlled by a                                                
09 transportation network company in return for compensation or payment of a                                               
10            fee;                                                                                                         
11 (6)  "transportation network company rider" or "rider" means an                                                         
12 individual or person who uses a digital network of a transportation network company                                     
13 to connect with a transportation network company driver who provides prearranged                                        
14       rides to the rider in the driver's personal vehicle between points chosen by the rider.                           
15 Sec. 28.23.190. Short title. This chapter may be cited as the Transportation                                          
16       Network Companies Act.                                                                                            
17    * Sec. 7. AS 29.10.200 is amended by adding a new paragraph to read:                                               
18 (66)  AS 29.35.148 (regulation of transportation network companies or                                                   
19       drivers).                                                                                                         
20    * Sec. 8. AS 29.35 is amended by adding a new section to read:                                                     
21 Sec. 29.35.148. Regulation of transportation network companies or                                                     
22 drivers. (a) The authority to regulate transportation network companies and                                           
23 transportation network company drivers is reserved to the state, and, except as                                         
24 specifically provided by statute, a municipality may not enact or enforce an ordinance                                  
25 regulating transportation network companies or transportation network company                                           
26       drivers.                                                                                                          
27            (b)  This section applies to home rule and general law municipalities.                                       
28            (c)  In this section,                                                                                        
29 (1)  "transportation network company" has the meaning given in                                                          
30       AS 28.23.180;                                                                                                     
31 (2)  "transportation network company driver" has the meaning given in                                                   
01       AS 28.23.180.                                                                                                     
02    * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).