CSHB 214(STA) am S: "An Act relating to transportation network companies and delivery network companies; relating to proof of financial responsibility for suspension for nonpayment of judgments; relating to insurance coverage for transportation of persons for hire; and relating to occupational accident insurance."
00 CS FOR HOUSE BILL NO. 214(STA) am S 01 "An Act relating to transportation network companies and delivery network companies; 02 relating to proof of financial responsibility for suspension for nonpayment of judgments; 03 relating to insurance coverage for transportation of persons for hire; and relating to 04 occupational accident insurance." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 21.96 is amended by adding a new section to read: 07 Sec. 21.96.017. Transportation and delivery network company 08 occupational accident insurance. An insurer authorized to write commercial casualty 09 insurance in this state may issue group or blanket occupational accident insurance 10 required under AS 28.23.065. In this section, "group or blanket occupational accident 11 insurance" does not include health care insurance as defined under AS 21.12.050 or 12 workers' compensation insurance. 13 * Sec. 2. AS 21.96.018(a) is amended to read: 14 (a) Insurers that write automobile insurance in the state may, notwithstanding
01 any requirement under AS 28.20, exclude any and all coverage afforded under the 02 policy issued to an owner or operator of a personal vehicle for any loss or injury that 03 occurs while a driver is logged onto the digital network of a transportation network 04 company, [OR] while a driver provides a prearranged ride, or while a courier 05 provides delivery services. The right to exclude all coverage may apply to any 06 coverage included in an automobile insurance policy, including 07 (1) liability coverage for bodily injury and property damage; 08 (2) uninsured and underinsured motorist coverage; 09 (3) medical payments coverage; 10 (4) comprehensive physical damage coverage; and 11 (5) collision physical damage coverage. 12 * Sec. 3. AS 21.96.018(b) is amended to read: 13 (b) Nothing in this section 14 (1) implies or requires that a personal automobile insurance policy 15 provide coverage while a [THE DRIVER] 16 (A) driver is logged onto the digital network of a 17 transportation network company; 18 (B) driver is engaged in a prearranged ride; [OR] 19 (C) driver otherwise uses a personal vehicle to transport 20 passengers for compensation; or 21 (D) courier is providing delivery services; 22 (2) may be construed to require an insurer to use specific policy 23 language or to refer to this section in order to exclude any and all coverage for any 24 loss or injury that occurs while a [DRIVER] 25 (A) driver is logged onto the digital network of a 26 transportation network company; [OR] 27 (B) driver provides a prearranged ride; or 28 (C) courier provides delivery services; or 29 (3) precludes an insurer from providing coverage for the personal 30 vehicle of a transportation network company driver or delivery network company 31 courier if the insurer chooses to provide coverage by contract or endorsement.
01 * Sec. 4. AS 21.96.018(f) is amended to read: 02 (f) In this section, "courier," "delivery network company," "delivery 03 network company courier," "delivery services," "digital network," "driver," 04 "personal vehicle," "prearranged ride," "transportation network company," and 05 "transportation network company driver" have the meanings given in AS 28.23.180. 06 * Sec. 5. AS 23.30.230(a) is amended to read: 07 (a) The following persons are not covered by this chapter: 08 (1) a part-time babysitter; 09 (2) a cleaning person; 10 (3) harvest help and similar part-time or transient help; 11 (4) a person employed as a sports official on a contractual basis and 12 who officiates only at sports events in which the players are not compensated; in this 13 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper, 14 timekeeper, organizer, or other person who is a neutral participant in a sports event; 15 (5) a person employed as an entertainer on a contractual basis; 16 (6) a commercial fisherman, as defined in AS 16.05.940; 17 (7) an individual who drives a taxicab and whose compensation and 18 written contractual arrangement is as described in AS 23.10.055(a)(13), unless the 19 hours worked by the individual or the areas in which the individual may work are 20 restricted except to comply with local ordinances; 21 (8) a participant in the Alaska temporary assistance program 22 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than 23 subsidized or unsubsidized work or on-the-job training; 24 (9) a person employed as a player or coach by a professional hockey 25 team if the person is covered under a health care insurance plan provided by the 26 professional hockey team, the coverage is applicable to both work-related and 27 nonwork-related injuries, and the coverage provides medical and related benefits as 28 required under this chapter, except that coverage may not be limited to two years from 29 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care 30 insurance" has the meaning given in AS 21.12.050; 31 (10) a person working as a qualified real estate licensee who performs
01 services under a written contract that provides that the person will not be treated as an 02 employee for federal income tax or workers' compensation purposes; in this 03 paragraph, "qualified real estate licensee" means a person who is required to be 04 licensed under AS 08.88.161 and whose payment for services is directly related to 05 sales or other output rather than the number of hours worked; 06 (11) a transportation network company driver who provides a 07 prearranged ride or is otherwise logged onto the digital network of a transportation 08 network company as a driver; [AND] 09 (12) a person employed as an independent contractor; a person is an 10 independent contractor for the purposes of this section only if the person 11 (A) has an express contract to perform the services; 12 (B) is free from direction and control over the means and 13 manner of providing services, subject only to the right of the individual for 14 whom, or entity for which, the services are provided to specify the desired 15 results, completion schedule, or range of work hours, or to monitor the work 16 for compliance with contract plans and specifications, or federal, state, or 17 municipal law; 18 (C) incurs most of the expenses for tools, labor, and other 19 operational costs necessary to perform the services, except that materials and 20 equipment may be supplied; 21 (D) has an opportunity for profit and loss as a result of the 22 services performed for the other individual or entity; 23 (E) is free to hire and fire employees to help perform the 24 services for the contracted work; 25 (F) has all business, trade, or professional licenses required by 26 federal, state, or municipal authorities for a business or individual engaging in 27 the same type of services as the person; 28 (G) follows federal Internal Revenue Service requirements by 29 (i) obtaining an employer identification number, if 30 required; 31 (ii) filing business or self-employment tax returns for
01 the previous tax year to report profit or income earned for the same 02 type of services provided under the contract; or 03 (iii) intending to file business or self-employment tax 04 returns for the current tax year to report profit or income earned for the 05 same type of services provided under the contract if the person's 06 business was not operating in the previous tax year; and 07 (H) meets at least two of the following criteria: 08 (i) the person is responsible for the satisfactory 09 completion of services that the person has contracted to perform and is 10 subject to liability for a failure to complete the contracted work, or 11 maintains liability insurance or other insurance policies necessary to 12 protect the employees, financial interests, and customers of the person's 13 business; 14 (ii) the person maintains a business location or a 15 business mailing address separate from the location of the individual 16 for whom, or the entity for which, the services are performed; 17 (iii) the person provides contracted services for two or 18 more different customers within a 12-month period or engages in any 19 kind of business advertising, solicitation, or other marketing efforts 20 reasonably calculated to obtain new contracts to provide similar 21 services; and 22 (13) a delivery network company courier who provides delivery 23 services or is otherwise logged onto the digital network of a delivery network 24 company under AS 28.23.080. 25 * Sec. 6. AS 28.20.330(b) is amended to read: 26 (b) The proof required by (a) of this section shall be maintained 27 (1) for one year from the date the judgment is stayed or satisfied if 28 the suspension is the person's first suspension under AS 28.20.270; 29 (2) for three years from the date the judgment is stayed or satisfied 30 if the suspension is the person's second suspension under AS 28.20.270; 31 (3) for 10 years from the date the judgment is stayed or satisfied if
01 the suspension is the person's third suspension under AS 28.20.270; 02 (4) during the period the person has a license or nonresident's 03 operating privilege if the suspension is the person's fourth or subsequent 04 suspension under AS 28.20.270. 05 * Sec. 7. AS 28.20.440 is amended by adding a new subsection to read: 06 (m) The motor vehicle liability policy of an operator of a vehicle used or 07 maintained for the transportation of persons for hire must contain the following 08 coverage while the operator is transporting persons for hire: 09 (1) primary automobile liability insurance that provides at least 10 $1,000,000 for death, bodily injury, and property damage; 11 (2) uninsured and underinsured motorists coverage, as required under 12 AS 21.96.020 and this section, that provides at least $500,000 for death, bodily injury, 13 and property damage, which may not be waived. 14 * Sec. 8. AS 28.23.050(a) is amended to read: 15 (a) A [TRANSPORTATION NETWORK COMPANY DRIVER, OR 16 TRANSPORTATION NETWORK] company, on behalf of a [THE] driver or 17 courier, shall maintain primary automobile insurance that 18 (1) recognizes that 19 (A) the driver is a transportation network company driver or 20 otherwise uses a vehicle to transport passengers for compensation; or 21 (B) the courier is a delivery network company courier; 22 (2) for a transportation network company, [AND THAT] covers the 23 driver while the driver is logged onto the digital network of a transportation network 24 company or while the driver is engaged in a prearranged ride; 25 (3) for a delivery network company, covers the courier while the 26 courier is using a motor vehicle and is providing delivery services or is available 27 to receive an offer immediately following completion of delivery services but is 28 not providing delivery services. 29 * Sec. 9. AS 28.23.050(b) is amended to read: 30 (b) The following automobile insurance requirements shall apply while a 31 participating [TRANSPORTATION NETWORK COMPANY] driver is logged onto
01 the digital network of a transportation network company and is available to receive 02 transportation requests but is not engaged in a prearranged ride, and while a courier 03 using a motor vehicle is logged onto the digital network of a delivery network 04 company and is available to receive an offer immediately following completion of 05 delivery services but is not providing delivery services: 06 (1) primary automobile liability insurance in the amount of at least 07 $50,000 for death and bodily injury for each person, $100,000 for death and bodily 08 injury for each incident, and $25,000 for property damage; 09 (2) uninsured or underinsured motor vehicle coverage as required 10 under AS 21.96.020 and AS 28.20.440; a transportation network company may not 11 waive the coverage [; 12 (3) THE COVERAGE REQUIREMENTS OF THIS SUBSECTION 13 MAY BE SATISFIED BY 14 (A) AUTOMOBILE INSURANCE MAINTAINED BY THE 15 TRANSPORTATION NETWORK COMPANY DRIVER; 16 (B) AUTOMOBILE INSURANCE MAINTAINED BY THE 17 TRANSPORTATION NETWORK COMPANY; OR 18 (C) ANY COMBINATION OF (A) AND (B) OF THIS 19 PARAGRAPH]. 20 * Sec. 10. AS 28.23.050(c) is amended to read: 21 (c) The following automobile insurance requirements shall apply while a 22 [TRANSPORTATION NETWORK COMPANY] driver is engaged in a prearranged 23 ride or a courier using a motor vehicle is providing delivery services: 24 (1) primary automobile liability insurance that provides at least 25 $1,000,000 for death, bodily injury, and property damage; 26 (2) uninsured or underinsured motor vehicle coverage, as required 27 under AS 21.96.020 and AS 28.20.440, that provides at least $500,000 for death, 28 bodily injury, and property damage; a transportation network company may not 29 waive the coverage [; 30 (3) THE COVERAGE REQUIREMENTS OF THIS SUBSECTION 31 MAY BE SATISFIED BY
01 (A) AUTOMOBILE INSURANCE MAINTAINED BY THE 02 TRANSPORTATION NETWORK COMPANY DRIVER; 03 (B) AUTOMOBILE INSURANCE MAINTAINED BY THE 04 TRANSPORTATION NETWORK COMPANY; OR 05 (C) A COMBINATION OF (A) AND (B) OF THIS 06 PARAGRAPH]. 07 * Sec. 11. AS 28.23.050(e) is amended to read: 08 (e) Coverage under an automobile insurance policy maintained by the 09 [TRANSPORTATION NETWORK] company may not be dependent on a personal 10 automobile insurer first denying a claim nor shall a personal automobile insurance 11 policy be required first to deny a claim. 12 * Sec. 12. AS 28.23.050(h) is amended to read: 13 (h) A [TRANSPORTATION NETWORK COMPANY] driver or courier 14 shall carry proof of coverage under (b) and (c) of this section, as applicable, with the 15 driver or courier at all times during the driver's or courier's use of a vehicle while 16 the driver or courier is logged onto the [IN CONNECTION WITH A] digital 17 network of a [TRANSPORTATION NETWORK] company. In the event of an 18 accident, a [TRANSPORTATION NETWORK COMPANY] driver or courier shall 19 provide the insurance coverage information to the directly interested parties, 20 automobile insurers, and investigating police officers upon request under 21 AS 28.22.019. Upon that request, a [TRANSPORTATION NETWORK COMPANY] 22 driver or courier shall also disclose to directly interested parties, automobile insurers, 23 and investigating police officers whether the driver or courier was logged onto the 24 digital network of a [TRANSPORTATION NETWORK] company, [OR] on a 25 prearranged ride, or providing delivery services at the time of an accident. 26 * Sec. 13. AS 28.23.050(i) is amended to read: 27 (i) If the insurance carrier for the [TRANSPORTATION NETWORK] 28 company makes a payment for a claim for physical damage to a personal vehicle that 29 is subject to a lien, the insurance carrier shall pay the claim jointly to the owner of the 30 personal vehicle and the primary lienholder or directly to the business repairing the 31 personal vehicle.
01 * Sec. 14. AS 28.23.060 is amended to read: 02 Sec. 28.23.060. Transportation and delivery network company automobile 03 insurance disclosures. A [TRANSPORTATION NETWORK] company shall 04 disclose in writing to [TRANSPORTATION NETWORK COMPANY] drivers and 05 couriers the following before the drivers or couriers are allowed to accept a request 06 for a prearranged ride or delivery services on the digital network of the 07 [TRANSPORTATION NETWORK] company: 08 (1) the insurance coverage, including the types of coverage and the 09 limits for each coverage, that the [TRANSPORTATION NETWORK] company 10 provides while the [TRANSPORTATION NETWORK COMPANY] driver or 11 courier uses a personal vehicle in connection with a [TRANSPORTATION 12 NETWORK] company's digital network; 13 (2) that the automobile insurance policy of the [TRANSPORTATION 14 NETWORK COMPANY] driver or courier might not provide any coverage while the 15 driver is logged onto the digital network of a transportation network company and is 16 available to receive transportation requests, the driver [OR] is engaged in a 17 prearranged ride, or the courier is providing delivery services, depending on the 18 terms of the automobile insurance policy of the driver or courier; and 19 (3) that, if the personal vehicle the [TRANSPORTATION NETWORK 20 COMPANY] driver or courier uses to provide transportation network services or 21 delivery services has a lien against it, using the motor vehicle for transportation 22 network services or delivery services without physical damage coverage may violate 23 the terms of the contract with the lienholder. 24 * Sec. 15. AS 28.23 is amended by adding a new section to read: 25 Sec. 28.23.065. Occupational accident insurance. (a) A company shall 26 maintain group or blanket occupational accident insurance, issued by an insurer under 27 AS 21.96.017, to provide coverage required under (b) of this section for an injury 28 suffered by a driver or courier while the driver or courier is engaged in a prearranged 29 ride or providing delivery services. 30 (b) The occupational accident insurance policy required under this section 31 must provide at least a combined single limit of $1,000,000 for each accident and
01 payment of benefits that include 02 (1) coverage for medical expenses incurred, up to at least $1,000,000, 03 for up to 104 weeks following the injury; 04 (2) coverage for total disability and partial disability, with payments 05 made for up to 104 weeks following the injury that are equal to 66 percent of the 06 driver's or courier's average weekly earnings as of the date of injury but not more than 07 the maximum weekly compensation rate calculated under AS 23.30.175(a); however, 08 if the average weekly earnings of the driver or courier is less than the minimum 09 weekly compensation rate calculated under AS 23.30.175(a), the weekly 10 compensation must be equal to 100 percent of the driver's or courier's average weekly 11 earnings; 12 (3) accidental death insurance for the benefit of spouses, children, or 13 other dependents of a driver or courier for injuries suffered by a driver or courier that 14 result in death in an amount equal to 66 percent of the driver's or courier's average 15 weekly earnings as of the date of injury but not more than the maximum weekly 16 compensation rate calculated under AS 23.30.175(a); however, if the average weekly 17 earnings of the driver or courier is less than the minimum weekly compensation rate 18 calculated under AS 23.30.175(a), the weekly compensation must be equal to 100 19 percent of the driver's or courier's average weekly earnings multiplied by 104 weeks; 20 and 21 (4) when injuries suffered by a driver or courier result in death, an 22 amount to pay for reasonable burial expenses, not to exceed eight times the maximum 23 weekly compensation rate calculated under AS 23.30.175(a). 24 (c) A policy required under this section may provide that, regardless of the 25 number of policies involved, claims made, premiums shown on the policy, or 26 premiums paid, the limits for any coverage under the policy may not be added to the 27 limits for similar occupational accident insurance coverage provided by another 28 company to determine the limit of occupational accident insurance coverage available 29 arising from a single injury. 30 (d) A benefit provided to a driver or courier under an occupational accident 31 insurance policy required under this section must be treated as an amount payable
01 under medical payments coverage, workers' compensation law, or a disability benefit 02 for the purpose of determining the amount payable under uninsured and underinsured 03 motorists coverage provided under AS 28.20.440 and 28.20.445. 04 (e) If a claim is covered by more than one occupational accident insurance 05 policy maintained by more than one company, the insurer of the company against 06 whom a claim is filed is entitled to a contribution for the pro rata share of coverage 07 attributable to other companies. 08 (f) In this section, "average weekly earnings" means the total earnings of a 09 driver or courier received from all transportation network companies and delivery 10 network companies during the 28 days immediately preceding a covered incident, 11 divided by four. 12 * Sec. 16. AS 28.23.070 is amended to read: 13 Sec. 28.23.070. Certificate of insurance. A [TRANSPORTATION 14 NETWORK] company shall file a written certificate of insurance with the director of 15 the division of insurance demonstrating that the [TRANSPORTATION NETWORK] 16 company has satisfied the requirements of AS 28.23.050 and 28.23.065. A [. THE] 17 certificate of insurance must state that the applicable insurance policy may not be 18 cancelled unless written notice is provided to the division of insurance at least 30 days 19 before cancellation. 20 * Sec. 17. AS 28.23.080(a) is amended to read: 21 (a) Except as provided in (b) of this section, a transportation network company 22 or delivery network company is not an employer of transportation network company 23 drivers or delivery network company couriers under AS 23.10.699, AS 23.20.520, 24 or AS 23.30.395. A transportation network company driver or delivery network 25 company courier is an independent contractor for all purposes and is not an employee 26 of the [TRANSPORTATION NETWORK] company if the [TRANSPORTATION 27 NETWORK] company 28 (1) does not unilaterally prescribe specific hours during which a driver 29 or courier shall be logged onto the digital network of the [TRANSPORTATION 30 NETWORK] company; 31 (2) does not impose restrictions on the ability of the driver or courier
01 to use the digital network of other transportation network companies or delivery 02 network companies; 03 (3) does not restrict a driver or courier from engaging in any other 04 occupation or business; and 05 (4) enters into a written agreement with the driver or courier stating 06 that the driver or courier is an independent contractor for the [TRANSPORTATION 07 NETWORK] company. 08 * Sec. 18. AS 28.23.180(1) is amended to read: 09 (1) "digital network" means any online-enabled application, software, 10 website, or system offered or used by a 11 (A) transportation network company that enables the 12 prearrangement of rides with transportation network company drivers; or 13 (B) delivery network company to facilitate offers for 14 delivery services; 15 * Sec. 19. AS 28.23.180(2) is amended to read: 16 (2) "personal vehicle" means a motor vehicle that is used by a 17 [TRANSPORTATION NETWORK COMPANY] driver or courier and is owned, 18 leased, or otherwise authorized for use by the [TRANSPORTATION NETWORK 19 COMPANY] driver or courier; "personal vehicle" does not include a taxi, limousine, 20 or other commercial motor vehicle for hire; 21 * Sec. 20. AS 28.23.180 is amended by adding new paragraphs to read: 22 (7) "company" means a transportation network company or a delivery 23 network company; 24 (8) "delivery network company" means a business entity that maintains 25 a digital network used to facilitate offers for delivery services in the state; 26 (9) "delivery network company courier" or "courier" means a person 27 who is authorized to accept and fulfill offers through the digital network of a delivery 28 network company; "delivery network company courier" or "courier" does not include 29 a person whose services require the use of a vehicle weighing more than 6,000 30 pounds; 31 (10) "delivery services" means the pickup of an item from a location in
01 the state and the delivery of that item to a location selected by the customer within 50 02 miles of the pickup location by walking or using a motor vehicle, a bicycle, a scooter, 03 public transportation, or other means of transportation and the selection, collection, or 04 purchase of items by a delivery network company courier, as well as other services 05 incident to delivery, beginning when a courier accepts an offer, continuing while the 06 courier transports the requested item to the selected location, and ending when the 07 courier completes the delivery or the delivery is otherwise terminated; "delivery 08 services" does not include assistance with residential moving services; 09 (11) "offer" means the opportunity to perform delivery services for 10 compensation that a delivery network company presents to a courier through a digital 11 network. 12 * Sec. 21. AS 28.23.050(d) is repealed. 13 * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 APPLICABILITY. AS 28.20.330(b), as amended by sec. 6 of this Act, applies to 16 suspensions occurring before, on, or after the effective date of this Act. 17 * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 18 read: 19 TRANSITION: NOTIFICATION. Within six months after the effective date of this 20 Act, an insurance company doing business in the state shall provide notice of the provisions 21 of sec. 6 of this Act to the company's customers in this state who maintain proof of financial 22 responsibility as required under AS 28.20.330.