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HB 376: "An Act relating to transportation network and delivery network companies."

00 HOUSE BILL NO. 376 01 "An Act relating to transportation network and delivery network companies." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 23.30.230(a) is amended to read: 04 (a) The following persons are not covered by this chapter: 05 (1) a part-time babysitter; 06 (2) a cleaning person; 07 (3) harvest help and similar part-time or transient help; 08 (4) a person employed as a sports official on a contractual basis and 09 who officiates only at sports events in which the players are not compensated; in this 10 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper, 11 timekeeper, organizer, or other person who is a neutral participant in a sports event; 12 (5) a person employed as an entertainer on a contractual basis; 13 (6) a commercial fisherman, as defined in AS 16.05.940; 14 (7) an individual who drives a taxicab and whose compensation and 15 written contractual arrangement is as described in AS 23.10.055(a)(13), unless the

01 hours worked by the individual or the areas in which the individual may work are 02 restricted except to comply with local ordinances; 03 (8) a participant in the Alaska temporary assistance program 04 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than 05 subsidized or unsubsidized work or on-the-job training; 06 (9) a person employed as a player or coach by a professional hockey 07 team if the person is covered under a health care insurance plan provided by the 08 professional hockey team, the coverage is applicable to both work-related and 09 nonwork-related injuries, and the coverage provides medical and related benefits as 10 required under this chapter, except that coverage may not be limited to two years from 11 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care 12 insurance" has the meaning given in AS 21.12.050; 13 (10) a person working as a qualified real estate licensee who performs 14 services under a written contract that provides that the person will not be treated as an 15 employee for federal income tax or workers' compensation purposes; in this 16 paragraph, "qualified real estate licensee" means a person who is required to be 17 licensed under AS 08.88.161 and whose payment for services is directly related to 18 sales or other output rather than the number of hours worked; 19 (11) a transportation network company driver who provides a 20 prearranged ride or is otherwise logged onto the digital network of a transportation 21 network company as a driver; [AND] 22 (12) a person employed as an independent contractor; a person is an 23 independent contractor for the purposes of this section only if the person 24 (A) has an express contract to perform the services; 25 (B) is free from direction and control over the means and 26 manner of providing services, subject only to the right of the individual for 27 whom, or entity for which, the services are provided to specify the desired 28 results, completion schedule, or range of work hours, or to monitor the work 29 for compliance with contract plans and specifications, or federal, state, or 30 municipal law; 31 (C) incurs most of the expenses for tools, labor, and other

01 operational costs necessary to perform the services, except that materials and 02 equipment may be supplied; 03 (D) has an opportunity for profit and loss as a result of the 04 services performed for the other individual or entity; 05 (E) is free to hire and fire employees to help perform the 06 services for the contracted work; 07 (F) has all business, trade, or professional licenses required by 08 federal, state, or municipal authorities for a business or individual engaging in 09 the same type of services as the person; 10 (G) follows federal Internal Revenue Service requirements by 11 (i) obtaining an employer identification number, if 12 required; 13 (ii) filing business or self-employment tax returns for 14 the previous tax year to report profit or income earned for the same 15 type of services provided under the contract; or 16 (iii) intending to file business or self-employment tax 17 returns for the current tax year to report profit or income earned for the 18 same type of services provided under the contract if the person's 19 business was not operating in the previous tax year; and 20 (H) meets at least two of the following criteria: 21 (i) the person is responsible for the satisfactory 22 completion of services that the person has contracted to perform and is 23 subject to liability for a failure to complete the contracted work, or 24 maintains liability insurance or other insurance policies necessary to 25 protect the employees, financial interests, and customers of the person's 26 business; 27 (ii) the person maintains a business location or a 28 business mailing address separate from the location of the individual 29 for whom, or the entity for which, the services are performed; 30 (iii) the person provides contracted services for two or 31 more different customers within a 12-month period or engages in any

01 kind of business advertising, solicitation, or other marketing efforts 02 reasonably calculated to obtain new contracts to provide similar 03 services; and 04 (13) a delivery network company courier who provides delivery 05 services or is otherwise logged onto the digital network of a delivery network 06 company under AS 28.23.080. 07 * Sec. 2. AS 28.23.080(a) is amended to read: 08 (a) Except as provided in (b) of this section, a transportation network company 09 or delivery network company is not an employer of transportation network company 10 drivers or delivery network company couriers under AS 23.10.699, AS 23.20.520, 11 or AS 23.30.395. A transportation network company driver or delivery network 12 company courier is an independent contractor for all purposes and is not an employee 13 of the [TRANSPORTATION NETWORK] company if the [TRANSPORTATION 14 NETWORK] company 15 (1) does not unilaterally prescribe specific hours during which a driver 16 or courier shall be logged onto the digital network of the [TRANSPORTATION 17 NETWORK] company; 18 (2) does not impose restrictions on the ability of the driver to use the 19 digital network of other transportation network companies or delivery network 20 companies; 21 (3) does not restrict a driver from engaging in any other occupation or 22 business; and 23 (4) enters into a written agreement with the driver or courier stating 24 that the driver or courier is an independent contractor for the [TRANSPORTATION 25 NETWORK] company. 26 * Sec. 3. AS 28.23.180(1) is amended to read: 27 (1) "digital network" means any online-enabled application, software, 28 website, or system offered or used by a 29 (A) transportation network company that enables the 30 prearrangement of rides with transportation network company drivers; or 31 (B) delivery network company to facilitate offers for

01 delivery services; 02 * Sec. 4. AS 28.23.180 is amended by adding new paragraphs to read: 03 (7) "company" means a transportation network company or a delivery 04 network company; 05 (8) "delivery network company" means a business entity that maintains 06 a digital network used to facilitate offers for delivery services in the state; 07 (9) "delivery network company courier" or "courier" means a person 08 who is authorized to accept and fulfill offers through the digital network of a delivery 09 network company; "delivery network company courier" or "courier" does not include 10 a person whose services require the use of a vehicle weighing more than 6,000 11 pounds; 12 (10) "delivery services" means the pickup of an item from a location in 13 the state and the delivery of that item to a location selected by the customer within 50 14 miles of the pickup location by walking or using a motor vehicle, a bicycle, a scooter, 15 public transportation, or other means of transportation and the selection, collection, or 16 purchase of items by a delivery network company courier, as well as other services 17 incident to delivery; "delivery services" does not include assistance with residential 18 moving services; 19 (11) "offer" means the opportunity to perform delivery services for 20 compensation that a delivery network company presents to a courier through a digital 21 network.