00 CS FOR SENATE BILL NO. 35(L&C) 01 "An Act relating to transportation network companies and delivery network companies; 02 and relating to occupational accident insurance." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 21.96 is amended by adding a new section to read: 05 Sec. 21.96.017. Transportation and delivery network company  06 occupational accident insurance. An insurer authorized to write commercial casualty 07 insurance in this state may issue group or blanket occupational accident insurance 08 required under AS 28.23.065. In this section, "group or blanket occupational accident 09 insurance" does not include health care insurance as defined under AS 21.12.050 or 10 workers' compensation insurance. 11  * Sec. 2. AS 21.96.018(a) is amended to read: 12 (a) Insurers that write automobile insurance in the state may, notwithstanding 13 any requirement under AS 28.20, exclude any and all coverage afforded under the 14 policy issued to an owner or operator of a personal vehicle for any loss or injury that 01 occurs while a driver is logged onto the digital network of a transportation network 02 company, [OR] while a driver provides a prearranged ride, or while a courier  03 provides delivery services. The right to exclude all coverage may apply to any 04 coverage included in an automobile insurance policy, including 05 (1) liability coverage for bodily injury and property damage; 06 (2) uninsured and underinsured motorist coverage; 07 (3) medical payments coverage; 08 (4) comprehensive physical damage coverage; and 09 (5) collision physical damage coverage. 10  * Sec. 3. AS 21.96.018(b) is amended to read: 11 (b) Nothing in this section 12 (1) implies or requires that a personal automobile insurance policy 13 provide coverage while a [THE DRIVER] 14 (A) driver is logged onto the digital network of a 15 transportation network company; 16 (B) driver is engaged in a prearranged ride; [OR] 17 (C) driver otherwise uses a personal vehicle to transport 18 passengers for compensation; or  19 (D) courier is providing delivery services; 20 (2) may be construed to require an insurer to use specific policy 21 language or to refer to this section in order to exclude any and all coverage for any 22 loss or injury that occurs while a [DRIVER] 23 (A) driver is logged onto the digital network of a 24 transportation network company; [OR] 25 (B) driver provides a prearranged ride; or 26 (C) courier provides delivery services; or 27 (3) precludes an insurer from providing coverage for the personal 28 vehicle of a transportation network company driver or delivery network company  29 courier if the insurer chooses to provide coverage by contract or endorsement. 30  * Sec. 4. AS 21.96.018(f) is amended to read: 31 (f) In this section, "courier," "delivery network company," "delivery  01 network company courier," "delivery services," "digital network," "driver," 02 "personal vehicle," "prearranged ride," "transportation network company," and 03 "transportation network company driver" have the meanings given in AS 28.23.180. 04  * Sec. 5. AS 23.30.230(a) is amended to read:  05 (a) The following persons are not covered by this chapter: 06 (1) a part-time babysitter; 07 (2) a cleaning person; 08 (3) harvest help and similar part-time or transient help; 09 (4) a person employed as a sports official on a contractual basis and 10 who officiates only at sports events in which the players are not compensated; in this 11 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper, 12 timekeeper, organizer, or other person who is a neutral participant in a sports event; 13 (5) a person employed as an entertainer on a contractual basis; 14 (6) a commercial fisherman, as defined in AS 16.05.940; 15 (7) an individual who drives a taxicab and whose compensation and 16 written contractual arrangement is as described in AS 23.10.055(a)(13), unless the 17 hours worked by the individual or the areas in which the individual may work are 18 restricted except to comply with local ordinances; 19 (8) a participant in the Alaska temporary assistance program 20 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than 21 subsidized or unsubsidized work or on-the-job training; 22 (9) a person employed as a player or coach by a professional hockey 23 team if the person is covered under a health care insurance plan provided by the 24 professional hockey team, the coverage is applicable to both work-related and 25 nonwork-related injuries, and the coverage provides medical and related benefits as 26 required under this chapter, except that coverage may not be limited to two years from 27 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care 28 insurance" has the meaning given in AS 21.12.050; 29 (10) a person working as a qualified real estate licensee who performs 30 services under a written contract that provides that the person will not be treated as an 31 employee for federal income tax or workers' compensation purposes; in this 01 paragraph, "qualified real estate licensee" means a person who is required to be 02 licensed under AS 08.88.161 and whose payment for services is directly related to 03 sales or other output rather than the number of hours worked; 04 (11) a transportation network company driver who provides a 05 prearranged ride or is otherwise logged onto the digital network of a transportation 06 network company as a driver; [AND] 07 (12) a person employed as an independent contractor; a person is an 08 independent contractor for the purposes of this section only if the person 09 (A) has an express contract to perform the services; 10 (B) is free from direction and control over the means and 11 manner of providing services, subject only to the right of the individual for 12 whom, or entity for which, the services are provided to specify the desired 13 results, completion schedule, or range of work hours, or to monitor the work 14 for compliance with contract plans and specifications, or federal, state, or 15 municipal law; 16 (C) incurs most of the expenses for tools, labor, and other 17 operational costs necessary to perform the services, except that materials and 18 equipment may be supplied; 19 (D) has an opportunity for profit and loss as a result of the 20 services performed for the other individual or entity; 21 (E) is free to hire and fire employees to help perform the 22 services for the contracted work; 23 (F) has all business, trade, or professional licenses required by 24 federal, state, or municipal authorities for a business or individual engaging in 25 the same type of services as the person; 26 (G) follows federal Internal Revenue Service requirements by 27 (i) obtaining an employer identification number, if 28 required; 29 (ii) filing business or self-employment tax returns for 30 the previous tax year to report profit or income earned for the same 31 type of services provided under the contract; or 01 (iii) intending to file business or self-employment tax 02 returns for the current tax year to report profit or income earned for the 03 same type of services provided under the contract if the person's 04 business was not operating in the previous tax year; and 05 (H) meets at least two of the following criteria: 06 (i) the person is responsible for the satisfactory 07 completion of services that the person has contracted to perform and is 08 subject to liability for a failure to complete the contracted work, or 09 maintains liability insurance or other insurance policies necessary to 10 protect the employees, financial interests, and customers of the person's 11 business; 12 (ii) the person maintains a business location or a 13 business mailing address separate from the location of the individual 14 for whom, or the entity for which, the services are performed; 15 (iii) the person provides contracted services for two or 16 more different customers within a 12-month period or engages in any 17 kind of business advertising, solicitation, or other marketing efforts 18 reasonably calculated to obtain new contracts to provide similar 19 services; and  20 (13) a delivery network company courier who provides delivery  21 services or is otherwise logged onto the digital network of a delivery network  22 company under AS 28.23.080. 23  * Sec. 6. AS 28.23.050(a) is amended to read: 24 (a) A [TRANSPORTATION NETWORK COMPANY DRIVER, OR 25 TRANSPORTATION NETWORK] company, on behalf of a [THE] driver or  26 courier, shall maintain primary automobile insurance that 27 (1) recognizes that 28 (A) the driver is a transportation network company driver or 29 otherwise uses a vehicle to transport passengers for compensation; or  30 (B) the courier is a delivery network company courier; 31 (2) for a transportation network company, [AND THAT] covers the 01 driver while the driver is logged onto the digital network of a transportation network 02 company or while the driver is engaged in a prearranged ride;  03 (3) for a delivery network company, covers the courier while the  04 courier is providing delivery services. 05  * Sec. 7. AS 28.23.050(b) is amended to read: 06 (b) The following automobile insurance requirements shall apply while a 07 participating [TRANSPORTATION NETWORK COMPANY] driver is logged onto 08 the digital network of a transportation network company and is available to receive 09 transportation requests but is not engaged in a prearranged ride: 10 (1) primary automobile liability insurance in the amount of at least 11 $50,000 for death and bodily injury for each person, $100,000 for death and bodily 12 injury for each incident, and $25,000 for property damage; 13 (2) uninsured or underinsured motor vehicle coverage as required 14 under AS 21.96.020 and AS 28.20.440, except that a transportation network  15 company may not waive the coverage [; 16 (3) THE COVERAGE REQUIREMENTS OF THIS SUBSECTION 17 MAY BE SATISFIED BY 18 (A) AUTOMOBILE INSURANCE MAINTAINED BY THE 19 TRANSPORTATION NETWORK COMPANY DRIVER; 20 (B) AUTOMOBILE INSURANCE MAINTAINED BY THE 21 TRANSPORTATION NETWORK COMPANY; OR 22 (C) ANY COMBINATION OF (A) AND (B) OF THIS 23 PARAGRAPH]. 24  * Sec. 8. AS 28.23.050(c) is amended to read: 25 (c) The following automobile insurance requirements shall apply while a 26 [TRANSPORTATION NETWORK COMPANY] driver is engaged in a prearranged 27 ride or a courier is providing delivery services: 28 (1) primary automobile liability insurance that provides at least 29 $1,000,000 for death, bodily injury, and property damage; 30 (2) uninsured or underinsured motor vehicle coverage as required 31 under AS 21.96.020 and AS 28.20.440, except that a transportation network  01 company may not waive the coverage [; 02 (3) THE COVERAGE REQUIREMENTS OF THIS SUBSECTION 03 MAY BE SATISFIED BY 04 (A) AUTOMOBILE INSURANCE MAINTAINED BY THE 05 TRANSPORTATION NETWORK COMPANY DRIVER; 06 (B) AUTOMOBILE INSURANCE MAINTAINED BY THE 07 TRANSPORTATION NETWORK COMPANY; OR 08 (C) A COMBINATION OF (A) AND (B) OF THIS 09 PARAGRAPH]. 10  * Sec. 9. AS 28.23.050(e) is amended to read: 11 (e) Coverage under an automobile insurance policy maintained by the 12 [TRANSPORTATION NETWORK] company may not be dependent on a personal 13 automobile insurer first denying a claim nor shall a personal automobile insurance 14 policy be required first to deny a claim. 15  * Sec. 10. AS 28.23.050(h) is amended to read: 16 (h) A [TRANSPORTATION NETWORK COMPANY] driver or courier 17 shall carry proof of coverage under (b) and (c) of this section with the driver or  18 courier at all times during the driver's or courier's use of a vehicle in connection with 19 a digital network of a [TRANSPORTATION NETWORK] company. In the event of 20 an accident, a [TRANSPORTATION NETWORK COMPANY] driver or courier 21 shall provide the insurance coverage information to the directly interested parties, 22 automobile insurers, and investigating police officers upon request under 23 AS 28.22.019. Upon that request, a [TRANSPORTATION NETWORK COMPANY] 24 driver or courier shall also disclose to directly interested parties, automobile insurers, 25 and investigating police officers whether the driver or courier was logged onto the 26 digital network of a [TRANSPORTATION NETWORK] company, [OR] on a 27 prearranged ride, or providing delivery services at the time of an accident. 28  * Sec. 11. AS 28.23.050(i) is amended to read: 29 (i) If the insurance carrier for the [TRANSPORTATION NETWORK] 30 company makes a payment for a claim for physical damage to a personal vehicle that 31 is subject to a lien, the insurance carrier shall pay the claim jointly to the owner of the 01 personal vehicle and the primary lienholder or directly to the business repairing the 02 personal vehicle. 03  * Sec. 12. AS 28.23.060 is amended to read: 04 Sec. 28.23.060. Transportation and delivery network company automobile  05 insurance disclosures. A [TRANSPORTATION NETWORK] company shall 06 disclose in writing to [TRANSPORTATION NETWORK COMPANY] drivers and  07 couriers the following before the drivers are allowed to accept a request for a 08 prearranged ride or delivery services on the digital network of the 09 [TRANSPORTATION NETWORK] company: 10 (1) the insurance coverage, including the types of coverage and the 11 limits for each coverage, that the [TRANSPORTATION NETWORK] company 12 provides while the [TRANSPORTATION NETWORK COMPANY] driver or  13 courier uses a personal vehicle in connection with a [TRANSPORTATION 14 NETWORK] company's digital network; 15 (2) that the automobile insurance policy of the [TRANSPORTATION 16 NETWORK COMPANY] driver or courier might not provide any coverage while the 17 driver is logged onto the digital network of a transportation network company and is 18 available to receive transportation requests, the driver [OR] is engaged in a 19 prearranged ride, or the courier is providing delivery services, depending on the 20 terms of the automobile insurance policy of the driver or courier; and 21 (3) that, if the personal vehicle the [TRANSPORTATION NETWORK 22 COMPANY] driver or courier uses to provide transportation network services or  23 delivery services has a lien against it, using the motor vehicle for transportation 24 network services or delivery services without physical damage coverage may violate 25 the terms of the contract with the lienholder. 26  * Sec. 13. AS 28.23 is amended by adding a new section to read: 27 Sec. 28.23.065. Occupational accident insurance. (a) A company shall 28 maintain group or blanket occupational accident insurance, issued by an insurer under 29 AS 21.96.017, to provide coverage required under (b) of this section resulting from an 30 injury suffered by a driver or courier while the driver or courier is engaged in a 31 prearranged ride or providing delivery services. 01 (b) The occupational accident insurance policy required under this section 02 must provide at least a combined single limit of $1,000,000 for each accident and 03 payment of benefits that include 04 (1) coverage for medical expenses incurred, up to at least $1,000,000, 05 for up to 104 weeks following the injury; 06 (2) coverage for total disability and partial disability, with payments 07 made for up to 104 weeks following the injury that are equal to 66 percent of the 08 driver's or courier's average weekly earnings as of the date of injury but not more than 09 the maximum weekly compensation rate calculated under AS 23.30.175(a); however, 10 if the average weekly earnings of the driver or courier is less than the minimum 11 weekly compensation rate calculated under AS 23.30.175(a), the weekly 12 compensation must be equal to 100 percent of the driver's or courier's average weekly 13 earnings; 14 (3) accidental death insurance for the benefit of spouses, children, or 15 other dependents of a driver or courier for injuries suffered by a driver or courier that 16 result in death in an amount equal to 66 percent of the driver's or courier's average 17 weekly earnings as of the date of injury but not more than the maximum weekly 18 compensation rate calculated under AS 23.30.175(a); however, if the average weekly 19 earnings of the driver or courier is less than the minimum weekly compensation rate 20 calculated under AS 23.30.175(a), the weekly compensation must be equal to 100 21 percent of the driver's or courier's average weekly earnings multiplied by 104 weeks; 22 and 23 (4) when injuries suffered by a driver or courier result in death, an 24 amount to pay for reasonable burial expenses, not to exceed eight times the maximum 25 weekly compensation rate calculated under AS 23.30.175(a). 26 (c) A policy required under this section may provide that, regardless of the 27 number of policies involved, claims made, premiums shown on the policy, or 28 premiums paid, the limits for any coverage under the policy may not be added to the 29 limits for similar occupational accident insurance coverage provided by another 30 company to determine the limit of occupational accident insurance coverage available 31 arising from a single injury. 01 (d) A benefit provided to a driver or courier under an occupational accident 02 insurance policy required under this section must be treated as an amount payable 03 under medical payments coverage, workers' compensation law, or a disability benefit 04 for the purpose of determining the amount payable under uninsured and underinsured 05 motorists coverage provided under AS 28.20.440 and 28.20.445. 06 (e) If a claim is covered by more than one occupational accident insurance 07 policy maintained by more than one company, the insurer of the company against 08 whom a claim is filed is entitled to a contribution for the pro rata share of coverage 09 attributable to other companies. 10 (f) In this section, "average weekly earnings" means the total earnings of a 11 driver or courier received from all transportation network companies and delivery 12 network companies during the 28 days immediately preceding a covered incident, 13 divided by four. 14  * Sec. 14. AS 28.23.070 is amended to read: 15 Sec. 28.23.070. Certificate of insurance. A [TRANSPORTATION 16 NETWORK] company shall file a written certificate of insurance with the director of 17 the division of insurance demonstrating that the [TRANSPORTATION NETWORK] 18 company has satisfied the requirements of AS 28.23.050 and 28.23.065. A [. THE] 19 certificate of insurance must state that the applicable insurance policy may not be 20 cancelled unless written notice is provided to the division of insurance at least 30 days 21 before cancellation. 22  * Sec. 15. AS 28.23.080(a) is amended to read: 23 (a) Except as provided in (b) of this section, a transportation network company 24 or delivery network company is not an employer of transportation network company 25 drivers or delivery network company couriers under AS 23.10.699, AS 23.20.520, 26 or AS 23.30.395. A transportation network company driver or delivery network  27 company courier is an independent contractor for all purposes and is not an employee 28 of the [TRANSPORTATION NETWORK] company if the [TRANSPORTATION 29 NETWORK] company 30 (1) does not unilaterally prescribe specific hours during which a driver 31 or courier shall be logged onto the digital network of the [TRANSPORTATION 01 NETWORK] company; 02 (2) does not impose restrictions on the ability of the driver to use the 03 digital network of other transportation network companies or delivery network  04 companies; 05 (3) does not restrict a driver from engaging in any other occupation or 06 business; and 07 (4) enters into a written agreement with the driver or courier stating 08 that the driver or courier is an independent contractor for the [TRANSPORTATION 09 NETWORK] company. 10  * Sec. 16. AS 28.23.180(1) is amended to read: 11 (1) "digital network" means any online-enabled application, software, 12 website, or system offered or used by a 13 (A) transportation network company that enables the 14 prearrangement of rides with transportation network company drivers; or  15 (B) delivery network company to facilitate offers for  16 delivery services;  17  * Sec. 17. AS 28.23.180 is amended by adding new paragraphs to read: 18 (7) "company" means a transportation network company or a delivery 19 network company; 20 (8) "delivery network company" means a business entity that maintains 21 a digital network used to facilitate offers for delivery services in the state; 22 (9) "delivery network company courier" or "courier" means a person 23 who is authorized to accept and fulfill offers through the digital network of a delivery 24 network company; "delivery network company courier" or "courier" does not include 25 a person whose services require the use of a vehicle weighing more than 6,000 26 pounds; 27 (10) "delivery services" means the pickup of an item from a location in 28 the state and the delivery of that item to a location selected by the customer within 50 29 miles of the pickup location by walking or using a motor vehicle, a bicycle, a scooter, 30 public transportation, or other means of transportation and the selection, collection, or 31 purchase of items by a delivery network company courier, as well as other services 01 incident to delivery, beginning when a courier accepts an offer, continuing while the 02 courier delivers the requested item to the selected location, and ending when the 03 courier returns to the location where the courier accepted the offer, arrives at the 04 courier's personal residence, or begins a personal task unrelated to delivery; "delivery 05 services" does not include assistance with residential moving services; 06 (11) "offer" means the opportunity to perform delivery services for 07 compensation that a delivery network company presents to a courier through a digital 08 network. 09  * Sec. 18. AS 28.23.050(d) is repealed.