00 HOUSE CS FOR CS FOR SENATE BILL NO. 14(L&C)
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
15 transportation network company or driver to comply with the requirements of
01 AS 28.23 or other law.
02 (b) In this section, "transportation network company" and "driver" have the
03 meanings given in AS 28.23.180.
04 * Sec. 3. AS 21.96 is amended by adding a new section to read:
05 Sec. 21.96.018. Transportation network company insurance provisions. (a)
06 Insurers that write automobile insurance in the state may exclude, notwithstanding any
07 requirement under AS 28.20, any and all coverage afforded under the policy issued to
08 an owner or operator of a personal vehicle for any loss or injury that occurs while a
09 driver is logged onto the digital network of a transportation network company or while
10 a driver provides a prearranged ride. The right to exclude all coverage may apply to
11 any coverage included in an automobile insurance policy, including
12 (1) liability coverage for bodily injury and property damage;
13 (2) uninsured and underinsured motorist coverage;
14 (3) medical payments coverage;
15 (4) comprehensive physical damage coverage; and
16 (5) collision physical damage coverage.
17 (b) Nothing in this section
18 (1) implies or requires that a personal automobile insurance policy
19 provide coverage while the driver
20 (A) is logged onto the digital network of a transportation
21 network company;
22 (B) is engaged in a prearranged ride; or
23 (C) otherwise uses a personal vehicle to transport passengers
24 for compensation;
25 (2) may be construed to require an insurer to use specific policy
26 language or to refer to this section in order to exclude any and all coverage for any
27 loss or injury that occurs while a driver
28 (A) is logged onto the digital network of a transportation
29 network company; or
30 (B) provides a prearranged ride; or
31 (3) precludes an insurer from providing coverage for the personal
01 vehicle of a transportation network company driver if the insurer chooses to provide
02 coverage by contract or endorsement.
03 (c) Automobile insurers that exclude coverage under (a) of this section do not
04 have a duty to defend or indemnify any claim expressly excluded under (a) of this
05 section. Nothing in this section may be considered to invalidate or limit an exclusion
06 contained in a policy, including any policy in use or approved for use in this state
07 before the enactment of this section, that excludes coverage for vehicles used to carry
08 persons or property for a charge or available for hire by the public.
09 (d) An automobile insurer that defends or indemnifies a claim against a driver
10 that is excluded under the terms of its policy shall have a right of contribution against
11 other insurers that provide automobile insurance to the same driver in satisfaction of
12 the coverage requirements of AS 28.23.050 at the time of loss.
13 (e) In a claims coverage investigation, a transportation network company shall
14 immediately provide, upon request by directly involved parties or any insurer of the
15 transportation network company driver, if applicable, the precise times that a
16 transportation network company driver logged onto and off of the digital network of a
17 transportation network company in the 12-hour period immediately preceding and in
18 the 12-hour period immediately following the accident. Insurers potentially providing
19 coverage shall disclose, upon request of any insurer involved in the claim, the
20 applicable coverages, exclusions, and limits provided under any automobile insurance
21 maintained under AS 28.23.050.
22 (f) In this section, "digital network," "personal vehicle," "prearranged ride,"
23 "transportation network company," "transportation network company driver," and
24 "driver" have the meanings given in AS 28.23.180.
25 * Sec. 4. AS 23.30.230(a) is amended to read:
26 (a) The following persons are not covered by this chapter:
27 (1) a part-time baby-sitter;
28 (2) a cleaning person;
29 (3) harvest help and similar part-time or transient help;
30 (4) a person employed as a sports official on a contractual basis and
31 who officiates only at sports events in which the players are not compensated; in this
01 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper,
02 timekeeper, organizer, or other person who is a neutral participant in a sports event;
03 (5) a person employed as an entertainer on a contractual basis;
04 (6) a commercial fisherman, as defined in AS 16.05.940;
05 (7) an individual who drives a taxicab whose compensation and written
06 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours
07 worked by the individual or the areas in which the individual may work are restricted
08 except to comply with local ordinances;
09 (8) a participant in the Alaska temporary assistance program
10 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than
11 subsidized or unsubsidized work or on-the-job training;
12 (9) a person employed as a player or coach by a professional hockey
13 team if the person is covered under a health care insurance plan provided by the
14 professional hockey team, the coverage is applicable to both work-related and
15 nonwork-related injuries, and the coverage provides medical and related benefits as
16 required under this chapter, except that coverage may not be limited to two years from
17 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care
18 insurance" has the meaning given in AS 21.12.050; [AND]
19 (10) a person working as a qualified real estate licensee who performs
20 services under a written contract that provides that the person will not be treated as an
21 employee for federal income tax or workers' compensation purposes; in this
22 paragraph, "qualified real estate licensee" means a person who is required to be
23 licensed under AS 08.88.161 and whose payment for services is directly related to
24 sales or other output rather than the number of hours worked; and
25 (11) a transportation network company driver who provides a
26 prearranged ride or is otherwise logged onto the digital network of a
27 transportation network company as a driver.
28 * Sec. 5. AS 23.30.230(c) is amended by adding new paragraphs to read:
29 (4) "digital network" has the meaning given in AS 28.23.180;
30 (5) "prearranged ride" has the meaning given in AS 28.23.180;
31 (6) "transportation network company" has the meaning given in
01 AS 28.23.180;
02 (7) "transportation network company driver" has the meaning given in
03 AS 28.23.180.
04 * Sec. 6. AS 28 is amended by adding a new chapter to read:
05 Chapter 23. Transportation Network Companies and Drivers.
06 Sec. 28.23.010. Not other carriers. A transportation network company or
07 driver is not a common carrier, contract carrier, or motor carrier, and may not provide
08 taxicab or for-hire vehicle service. The state or a municipality may not require a
09 transportation network company driver to register the personal vehicle the driver uses
10 to provide prearranged rides as a commercial or for-hire vehicle.
11 Sec. 28.23.020. Fare collected for services. A transportation network
12 company may charge a fare to a transportation network company rider. Before a fare is
13 collected from a rider, the transportation network company shall disclose to the rider,
14 on the company's Internet website or in the company's software application, the
15 transportation network company's fare or fare calculation method. The transportation
16 network company shall provide riders the option of receiving an estimated fare before
17 the rider enters the vehicle of a transportation network company driver.
18 Sec. 28.23.030. Identification of transportation network company vehicles
19 and drivers. Before a rider enters the personal vehicle of a transportation network
20 company driver, the transportation network company shall display on the company's
21 Internet website or in the company's software application a picture of the
22 transportation network company driver and the license plate number of the personal
23 vehicle providing the prearranged ride.
24 Sec. 28.23.040. Electronic receipt. Within a reasonable period following the
25 completion of a trip, the transportation network company shall transmit to the rider, on
26 behalf of the transportation network company driver, an electronic receipt showing the
27 origin and destination of the trip and itemizing the fare paid, if any.
28 Sec. 28.23.050. Financial responsibility of transportation network
29 companies. (a) A transportation network company driver, or transportation network
30 company on behalf of the driver, shall maintain primary automobile insurance that
31 recognizes that the driver is a transportation network company driver or otherwise
01 uses a vehicle to transport passengers for compensation and that covers the driver
02 while the driver is logged onto the digital network of a transportation network
03 company or while the driver is engaged in a prearranged ride.
04 (b) The following automobile insurance requirements shall apply while a
05 participating transportation network company driver is logged onto the digital network
06 of a transportation network company and is available to receive transportation requests
07 but is not engaged in a prearranged ride:
08 (1) primary automobile liability insurance in the amount of at least
09 $50,000 for death and bodily injury for each person, $100,000 for death and bodily
10 injury for each incident, and $25,000 for property damage;
11 (2) uninsured or underinsured motor vehicle coverage as required
12 under AS 21.96.020 and AS 28.20.440;
13 (3) the coverage requirements of this subsection may be satisfied by
14 (A) automobile insurance maintained by the transportation
15 network company driver;
16 (B) automobile insurance maintained by the transportation
17 network company; or
18 (C) any combination of (A) and (B) of this paragraph.
19 (c) The following automobile insurance requirements shall apply while a
20 transportation network company driver is engaged in a prearranged ride:
21 (1) primary automobile liability insurance that provides at least
22 $1,000,000 for death, bodily injury, and property damage;
23 (2) uninsured or underinsured motor vehicle coverage as required
24 under AS 21.96.020 and AS 28.20.440;
25 (3) the coverage requirements of this subsection may be satisfied by
26 (A) automobile insurance maintained by the transportation
27 network company driver;
28 (B) automobile insurance maintained by the transportation
29 network company; or
30 (C) a combination of (A) and (B) of this paragraph.
31 (d) If insurance maintained by a driver under (b) or (c) of this section has
01 lapsed or does not provide the required coverage, insurance maintained by a
02 transportation network company must provide the coverage required by this section
03 beginning with the first dollar of a claim, and the transportation network company
04 insurer has the duty to defend that claim.
05 (e) Coverage under an automobile insurance policy maintained by the
06 transportation network company may not be dependent on a personal automobile
07 insurer first denying a claim nor shall a personal automobile insurance policy be
08 required first to deny a claim.
09 (f) Insurance required by this section may be placed with an insurer licensed
10 under AS 21.09.060 or with a surplus lines insurer eligible under AS 21.34 that has a
11 credit rating not lower than A- from A.M. Best or a similar rating from another rating
12 agency recognized by the division of insurance.
13 (g) Insurance satisfying the requirements of this section shall be considered to
14 satisfy the financial responsibility requirement for a motor vehicle under AS 28.20.
15 (h) A transportation network company driver shall carry proof of coverage
16 under (b) and (c) of this section with the driver at all times during the driver's use of a
17 vehicle in connection with a digital network of a transportation network company. In
18 the event of an accident, a transportation network company driver shall provide the
19 insurance coverage information to the directly interested parties, automobile insurers,
20 and investigating police officers upon request under AS 28.22.019. Upon that request,
21 a transportation network company driver shall also disclose to directly interested
22 parties, automobile insurers, and investigating police officers whether the driver was
23 logged onto the digital network of a transportation network company or on a
24 prearranged ride at the time of an accident.
25 (i) If the insurance carrier for the transportation network company makes a
26 payment for a claim for physical damage to a personal vehicle that is subject to a lien,
27 the insurance carrier shall pay the claim jointly to the owner of the personal vehicle
28 and the primary lienholder or directly to the business repairing the personal vehicle.
29 Sec. 28.23.060. Transportation network company automobile insurance
30 disclosures. A transportation network company shall disclose in writing to
31 transportation network company drivers the following before the drivers are allowed
01 to accept a request for a prearranged ride on the digital network of the transportation
02 network company:
03 (1) the insurance coverage, including the types of coverage and the
04 limits for each coverage, that the transportation network company provides while the
05 transportation network company driver uses a personal vehicle in connection with a
06 transportation network company's digital network;
07 (2) that the automobile insurance policy of the transportation network
08 company driver might not provide any coverage while the driver is logged onto the
09 digital network of a transportation network company and is available to receive
10 transportation requests or is engaged in a prearranged ride, depending on the terms of
11 the automobile insurance policy of the driver; and
12 (3) that, if the personal vehicle the transportation network company
13 driver uses to provide transportation network services has a lien against it, using the
14 motor vehicle for transportation network services without physical damage coverage
15 may violate the terms of the contract with the lienholder.
16 Sec. 28.23.070. Certificate of insurance. A transportation network company
17 shall file a written certificate of insurance with the director of the division of insurance
18 demonstrating that the transportation network company has satisfied the requirements
19 of AS 28.23.050. The certificate of insurance must state that the applicable insurance
20 policy may not be cancelled unless written notice is provided to the division of
21 insurance at least 30 days before cancellation.
22 Sec. 28.23.080. Limitations on transportation network companies. A
23 transportation network company is not an employer of transportation network drivers
24 under AS 23.10.699, AS 23.20.520, or AS 23.30.395. A transportation network
25 company driver is an independent contractor for all purposes and is not an employee
26 of the transportation network company if the transportation network company
27 (1) does not unilaterally prescribe specific hours during which a driver
28 shall be logged onto the digital network of the transportation network company;
29 (2) does not impose restrictions on the ability of the driver to use the
30 digital network of other transportation network companies;
31 (3) does not restrict a driver from engaging in any other occupation or
01 business; and
02 (4) enters into a written agreement with the driver stating that the
03 driver is an independent contractor for the transportation network company.
04 Sec. 28.23.090. Zero tolerance for drug or alcohol use. The transportation
05 network company shall implement a zero-tolerance policy prohibiting drug and
06 alcohol use while a driver is providing a prearranged ride or is logged onto the digital
07 network of the transportation network company but not providing a prearranged ride.
08 The transportation network company shall post the company's zero-tolerance policy
09 prohibiting drug and alcohol use on the company's Internet website.
10 Sec. 28.23.100. Transportation network company driver requirements. (a)
11 Before a transportation network company allows an individual to accept trip requests
12 through its digital network, the transportation network company, or a third party, shall
13 (1) require the individual to submit to the transportation network
14 company an application that includes the individual's address, age, and driver's license
15 number, the motor vehicle registration and automobile liability insurance information
16 for the individual's personal vehicle, and other information required by the
17 transportation network company;
18 (2) conduct a local and national criminal background check for each
19 applicant that reviews
20 (A) a multi-state or multi-jurisdiction criminal records locator
21 or a similar commercial nationwide database with validation; and
22 (B) the United States Department of Justice National Sex
23 Offender Public Website; and
24 (3) obtain and review a driving history research report for the
26 (b) A transportation network company may not allow a driver to accept trip
27 requests through its digital network if the driver
28 (1) has, in the past three years,
29 (A) been convicted of or forfeited bail for a third or subsequent
30 moving traffic violation;
31 (B) been convicted of
01 (i) driving while license canceled, suspended, revoked,
02 or in violation of a limitation under AS 28.15.291;
03 (ii) failure to stop at the direction of a peace officer
04 under AS 28.35.182;
05 (iii) reckless or negligent driving under AS 28.35.400
06 or 28.35.410; or
07 (iv) a law or ordinance of another jurisdiction having
08 similar elements to an offense listed in (i) - (iii) of this subparagraph;
09 (2) has, in the past seven years, been convicted of
10 (A) any offense that is an unclassified, class A, or class B
11 felony in this or another jurisdiction; or
12 (B) a misdemeanor involving
13 (i) a crime under AS 28.33.030, AS 28.35.030, or
15 (ii) a crime under AS 28.35.050 or 28.35.060;
16 (iii) a crime against a person under AS 11.41; or
17 (iv) a law or ordinance of another jurisdiction having
18 similar elements to an offense listed in (i) - (iii) of this subparagraph;
19 (3) is listed on the United States Department of Justice National Sex
20 Offender Public Website; or
21 (4) is under 21 years of age.
22 (c) A transportation network company driver may not
23 (1) provide a prearranged ride unless the transportation network
24 company rider has been matched to the driver through the digital network of the
25 transportation network company;
26 (2) solicit a ride or accept a street hail request for a ride; or
27 (3) solicit or accept cash payments for a fare from a rider.
28 Sec. 28.23.105. Transportation network company vehicles. A motor
29 vehicle that is used by a transportation network company driver for transportation
30 network company purposes may not be more than 12 years of age.
31 Sec. 28.23.110. Nondiscrimination and accessibility. (a) The transportation
01 network company shall adopt a policy prohibiting discrimination based on destination
02 or a class or status protected under AS 18.80.210 with respect to a rider or potential
03 rider. The company shall inform drivers of the policy.
04 (b) A transportation network company driver shall comply with all applicable
05 laws relating to accommodation of service animals.
06 (c) A transportation network company may not impose additional charges for
07 providing services to riders with physical disabilities because of those disabilities.
08 Sec. 28.23.120. Records. A transportation network company shall keep
10 (1) maintained by the transportation network company for an
11 individual prearranged ride for at least two years from the date of the prearranged ride;
13 (2) maintained by individual transportation network company drivers
14 for two years after the agreement between the transportation network company and
15 driver entered into under AS 28.23.080(4) ends.
16 Sec. 28.23.130. International airports. The Department of Transportation and
17 Public Facilities may, under AS 02.15, adopt a regulation or enter into a contract,
18 lease, or other arrangement with a transportation network company or driver for use of
19 an international airport owned or operated by the state. A regulation or arrangement
20 under AS 02.15 must be consistent with this chapter.
21 Sec. 28.23.180. Definitions. In this chapter,
22 (1) "digital network" means any online-enabled application, software,
23 website, or system offered or used by a transportation network company that enables
24 the prearrangement of rides with transportation network company drivers;
25 (2) "personal vehicle" means a motor vehicle that is used by a
26 transportation network company driver and is owned, leased, or otherwise authorized
27 for use by the transportation network company driver; "personal vehicle" does not
28 include a taxi, limousine, or other commercial motor vehicle for hire;
29 (3) "prearranged ride" means transportation provided by a driver to a
30 rider, beginning when a driver accepts a ride requested by a rider through a digital
31 network controlled by a transportation network company, continuing while the driver
01 transports a requesting rider, and ending when the last requesting rider departs from
02 the personal vehicle; "prearranged ride" does not include shared expense carpool or
03 vanpool arrangements or transportation provided using a taxi, limousine, or other
04 commercial motor vehicle for hire;
05 (4) "transportation network company" means a corporation,
06 partnership, sole proprietorship, or other entity that uses a digital network to connect
07 transportation network company riders to transportation network company drivers who
08 provide prearranged rides; a transportation network company may not be considered to
09 control, direct, or manage the personal vehicles or transportation network company
10 drivers that connect to its digital network, except where agreed to by written contract;
11 (5) "transportation network company driver" or "driver" means an
12 individual who
13 (A) receives connections to potential passengers and related
14 services from a transportation network company in exchange for payment of a
15 fee to the transportation network company; and
16 (B) uses a personal vehicle to offer or provide a prearranged
17 ride to riders upon connection through a digital network controlled by a
18 transportation network company in return for compensation or payment of a
20 (6) "transportation network company rider" or "rider" means an
21 individual or person who uses a digital network of a transportation network company
22 to connect with a transportation network company driver who provides prearranged
23 rides to the rider in the driver's personal vehicle between points chosen by the rider.
24 Sec. 28.23.190. Short title. This chapter may be cited as the Transportation
25 Network Companies Act.
26 * Sec. 7. AS 29.10.200 is amended by adding a new paragraph to read:
27 (66) AS 29.35.148 (regulation of transportation network companies or
29 * Sec. 8. AS 29.35 is amended by adding a new section to read:
30 Sec. 29.35.148. Regulation of transportation network companies or
31 drivers. (a) The authority to regulate transportation network companies and
01 transportation network company drivers is reserved to the state, and, except as
02 specifically provided by statute, a municipality may not enact or enforce an ordinance
03 regulating transportation network companies or transportation network company
05 (b) The prohibition on regulation under (a) of this section does not include
06 (1) imposition of a municipal sales tax on a transportation network
07 company driver that taxes a trip originating in the municipality in the same manner
08 that other services are taxed in the municipality;
09 (2) a municipal traffic ordinance.
10 (c) This section applies to home rule and general law municipalities.
11 (d) In this section,
12 (1) "transportation network company" has the meaning given in
13 AS 28.23.180;
14 (2) "transportation network company driver" has the meaning given in
15 AS 28.23.180.
16 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).