Legislature(2023 - 2024)BARNES 124
03/26/2024 01:00 PM House TRANSPORTATION
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB376 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 376 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 26, 2024
1:01 p.m.
MEMBERS PRESENT
Representative Kevin McCabe, Chair
Representative Sarah Vance, Vice Chair
Representative Tom McKay
Representative Craig Johnson
Representative Jesse Sumner
Representative Louise Stutes
Representative Genevieve Mina
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 376
"An Act relating to transportation network and delivery network
companies."
- MOVED HB 376 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 376
SHORT TITLE: DELIVERY NETWORK COMPANIES
SPONSOR(s): TRANSPORTATION
02/20/24 (H) READ THE FIRST TIME - REFERRALS
02/20/24 (H) TRA, L&C
03/07/24 (H) TRA AT 1:00 PM BARNES 124
03/07/24 (H) Heard & Held
03/07/24 (H) MINUTE(TRA)
03/26/24 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
ALISSON FORD, Public Policy Manager
Uber Technologies
Seattle, Washington
POSITION STATEMENT: Gave invited testimony in support of HB
376.
KELLEY FOXX, Government Affairs Manager
Instacart
Chicago, Illinois
POSITION STATEMENT: Gave invited testimony in support of HB
376.
CHARLIE COLLINS, Director
Division of Workers' Compensation
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
376.
PATRICK FITZGERALD, Political Coordinator
Teamsters Local 959
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to HB 376.
ACTION NARRATIVE
1:01:35 PM
CHAIR KEVIN MCCABE called the House Transportation Standing
Committee meeting to order at 1:01 p.m. Representatives C.
Johnson, McKay, Vance, Stutes, Sumner, and McCabe were present
at the call to order. Representative Mina arrived as the
meeting was in progress.
HB 376-DELIVERY NETWORK COMPANIES
1:02:18 PM
CHAIR MCCABE announced that the only order of business would be
HOUSE BILL NO. 376, "An Act relating to transportation network
and delivery network companies."
CHAIR MCCABE offered a brief recap on the bill and paraphrased
parts of the sponsor statement [included in the committee
packet], which read as follows [original punctuation provided]:
I am proud to introduce House Bill 376, which aims to
address critical aspects of labor regulations
concerning transportation network companies (TNCs) and
delivery network companies (DNCs) in the state of
Alaska. This bill seeks to clarify the classification
of workers within these industries, ensuring that they
are treated fairly and equitably under the law.
Over the past decade, the rise of transportation and
delivery network companies has transformed the way
people and goods are transported and delivered. These
companies provide valuable services that enhance
mobility, convenience, and accessibility for
individuals and businesses alike. However, as the gig
economy has expanded, questions have arisen regarding
the classification of workers and their rights and
protections under existing labor laws.
House Bill 376 addresses these concerns by refining
the classification of workers within the TNC and DNC
sectors. It ensures that individuals who provide
prearranged rides or delivery services through digital
networks are properly classified as independent
contractors, provided they meet specific criteria
outlined in the bill.
This bill will address policy inconsistencies and
improve the working standards of delivery drivers in
Alaska. This legislation aims to align the status of
delivery drivers with that of rideshare drivers,
recognizing them all as essential contributors to the
digital marketplace. The current distinction between
rideshare and delivery drivers in relation to workers'
compensation does not reflect the fluid nature of
their roles, where drivers often switch between
passenger transportation and goods delivery. This
creates needless uncertainty and potential
inconsistency in the application of our laws,
undermining the flexibility and supplemental income
opportunities that platform workers rely on.
Furthermore, this bill seeks to ensure Alaska stays in
line with developments in other states where
marketplace platform workers across all platforms are
treated uniformly. Such consistency is paramount in
fostering fairness, understanding, and avoiding legal
ambiguities in this fast-growing digital space.
Similar to other states, Alaska should establish a
policy environment that attributes equal regulatory
treatment to all platform workers, regardless of their
chosen platform. This will not only demonstrate
Alaska's commitment to valuing all digital platform
workers but will also encourage a fair and inclusive
digital marketplace.
CHAIR MCCABE noted the invited testifiers who would be present
and invited any questions or comments from committee members
before moving forward.
1:03:35 PM
ALISSON FORD, Public Policy Manager, Uber Technologies, gave
invited testimony in support of HB 376. She stated that the
bill would provide consistency and clarity of the law for
thousands of Alaskans earning supplemental income as ride share
and delivery drivers and contributing to the digital economy in
Alaska. She said that as this new digital market expands, the
workers become even more valued. The bill would extend
protection under the law that drivers have expressed that they
want and need. She offered to answer questions and shared her
excitement for working with the committee on HB 376.
1:06:05 PM
REPRESENTATIVE STUTES asked whether the "average Joes" who
deliver from McDonald's are asking for additional fees to pay
for their business.
MS. FORD replied she meant to clarify that drivers currently are
independent contractors, and they want to remain as such under
protection.
REPRESENTATIVE STUTES asked about independent contractors who do
not use the application ("app").
MS. FORD offered her belief that the bill would not impact any
other independent contractors other than those defined as
accessing the app-based platforms.
1:07:36 PM
REPRESENTATIVE MINA questioned what protection independent
contractors that are not Uber drivers have.
MS. FORD replied that per local law, Uber delivery workers and
Uber ride share drivers are required to provide their own
vehicles and insurance to have access to the app.
REPRESENTATIVE MINA asked whether there were other requirements
other than providing their own vehicles and insurance.
MS. FORD added that there is a requirement to run background
checks. There are also criteria that may be flagged, she said,
and she offered to follow up with a more comprehensive list.
1:10:30 PM
REPRESENTATIVE STUTES asked for confirmation that the ride share
drivers are required to have "this insurance," whereas the
delivery drivers are not.
MS. FORD responded that she would double-check but believed
Representative Stutes was correct.
1:11:27 PM
CHAIR MCCABE commented it was something that should be looked
into.
1:11:45 PM
KELLEY FOXX, Government Affairs Manager, Instacart, gave invited
testimony and expressed support of HB 376. He stated that the
bill would preserve access to independence and flexibility that
shoppers on the Instagram platform consistently say they want
and need. He gave a brief background of Instagram, adding that
it partners with many stores across Alaska resulting in economic
stability and jobs. He added that Instagram also offers
flexible earning opportunities for many Alaskans looking to make
additional income on their own terms, and that HB 376 would meet
the needs of this modern and independent workforce. He
respectfully urged the committee to prioritize the interest and
well-being of Alaskans by supporting HB 376.
1:14:32 PM
REPRESENTATIVE STUTES restated a previous question referencing
whether rideshare drivers are required to carry insurance.
MR. FOXX said that in this case, rideshare drivers or delivery
network drivers are not required to carry workers' compensation
insurance.
1:15:47 PM
CHARLIE COLLINS, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development (DLWD), in
reference to questions from committee members, said that
delivery network drivers are not covered under statute, and due
to events in the past several months, this point has come to the
forefront. He noted agreements with some of the aforementioned
places, and that currently if one is an independent contractor
or sole proprietor there is no need for coverage.
1:17:52 PM
REPRESENTATIVE SUMNER offered a scenario at his excavation
business and discussed, if the bill were to pass and he had an
app, whether he would not pay his dump truck driver workers'
compensation if they used the app.
MR. COLLINS replied that was an interesting conundrum. He added
that all drivers should have a business license by statute.
1:19:41 PM
REPRESENTATIVE STUTES offered her belief that those working for
themselves are not required to have the insurance if they are a
sole proprietor. She asked whether the bill could change that
so the insurance would be a requirement.
MR. COLLINS said that as an independent contractor, they would
not have to be covered under workers' compensation; it is an
opt-in or opt-out option.
REPRESENTATIVE STUTES recognized that HB 376 would cover those
delivery drivers that work through one of the apps.
MR. COLLINS said the vision is for a certain group of people
supplementing their income; it had been decided that it should
not have to cost the network company to buy in for workers'
compensation.
1:21:50 PM
CHAIR MCCABE commented that the intention of the bill is to
clarify much of the confusion surrounding transportation network
company drivers and statute.
1:22:28 PM
REPRESENTATIVE SUMNER referenced that some drivers are engaged
in shopping activities.
CHAIR MCCABE noted that the discussion, for the most part, was
about workers' compensation insurance not being clear enough in
statute.
1:22:55 PM
REPRESENTATIVE VANCE pointed out that language on page 5 of HB
376, under the definitions section, clarifies many of the
questions posed here today.
1:23:49 PM
CHAIR MCCABE opened public testimony on HB 376.
1:24:21 PM
PATRICK FITZGERALD, Political Coordinator, Teamsters Local 959,
testified in opposition to HB 376. He said that Teamsters 959
opposed the legislation because there is a misclassification of
contractors' roles with the aforementioned industries. The
question as to the worker classification has grown more
contentious, he said. By defining the working people of the
industry as private contractors, the companies are able to
collect the revenue from the working people who provide the
services across the country and save millions by not providing
workers' compensation, health care, or providing safety
standards. He urged the committee to oppose the current version
of HB 376.
1:25:57 PM
CHAIR MCCABE, after ascertaining that no one else wished to
testify, closed public testimony on HB 376.
1:26:08 PM
REPRESENTATIVE STUTES asked for confirmation that there was no
requirement to carry the insurance unless opting in.
MR. COLLINS confirmed that was correct.
1:26:56 PM
REPRESENTATIVE MINA addressed Mr. Collins on whether one has
supplemental income or full-time work that there would still not
be a requirement to get workers' compensation insurance.
MR. COLLINS confirmed that was correct; they would be viewed as
independent contractors.
REPRESENTATIVE MINA asked whether drivers were required to have
a business license. She further inquired about delivery network
drivers' requirements for a business license.
MR. COLLINS replied that they are required to have all licenses
as an independent contractor. He confirmed that that portion of
the statute would not be changed.
1:29:03 PM
The committee took a brief at-ease at 1:29 p.m.
1:29:31 PM
REPRESENTATIVE MCKAY moved to report HB 376 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 376 was reported out of the
House Transportation Standing Committee.
1:30:48 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 1:31
p.m.
| Document Name | Date/Time | Subjects |
|---|