03/07/2024 01:00 PM House TRANSPORTATION

               HB 376-DELIVERY NETWORK COMPANIES                                                                            
                                                                                                                                
1:04:54 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE announced that the  first order of business would be                                                               
HOUSE BILL  NO. 376, "An  Act relating to  transportation network                                                               
and delivery network companies."                                                                                                
                                                                                                                                
1:05:39 PM                                                                                                                    
                                                                                                                                
JULIE MORRIS,  Staff, Representative  Kevin McCabe,  Alaska State                                                               
Legislature,  introduced  HB  376  on  behalf  of  Representative                                                               
McCabe,  prime sponsor.   She  paraphrased 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.                                                                                                       
                                                                                                                                
1:08:41 PM                                                                                                                    
                                                                                                                                
MS. MORRIS gave the sectional analysis for HB 376 [included in                                                                  
the committee packet], which read as follows [original                                                                          
punctuation provided]:                                                                                                          
                                                                                                                                
     Section  1:  This  section amends  AS  23.30.230(a)  by                                                                  
     delineating individuals who are  not covered by certain                                                                    
     labor regulations. It  specifies exemptions for various                                                                    
     categories    of     workers,    including    part-time                                                                    
     babysitters,  cleaning  persons, harvest  help,  sports                                                                    
     officials, entertainers,  commercial fishermen, taxicab                                                                    
     drivers,   participants   in   the   Alaska   temporary                                                                    
     assistance  program,  professional  hockey  players  or                                                                    
     coaches,   and   qualified   real   estate   licensees.                                                                    
     Additionally,   it  introduces   an  exemption   for  a                                                                    
     delivery network company  courier who provides delivery                                                                    
     services  or  is  otherwise  logged  onto  the  digital                                                                    
     network  of   a  delivery  network  company   under  AS                                                                    
     28.23.080.                                                                                                                 
                                                                                                                                
     Section  2:  This  section amends  AS  28.23.080(a)  to                                                                  
     establish that transportation  network companies (TNCs)                                                                    
     and   delivery  network   companies   (DNCs)  are   not                                                                    
     employers of TNC drivers or  DNC couriers under certain                                                                    
     labor  laws.  It clarifies  that  TNC  drivers and  DNC                                                                    
     couriers are independent  contractors and not employees                                                                    
     of  the  respective  companies, provided  that  certain                                                                    
     conditions  are  met,  such as  not  imposing  specific                                                                    
     hours  of  work,  allowing   drivers  to  use  multiple                                                                    
     digital   networks,   not  restricting   drivers   from                                                                    
     engaging  in other  occupations,  and  entering into  a                                                                    
     written agreement declaring  the independent contractor                                                                    
     status.                                                                                                                    
                                                                                                                                
     Section  3:  This  section amends  AS  28.23.180(1)  to                                                                  
     define   "digital   network"  as   any   online-enabled                                                                    
     application,  software,  website,  or  system  used  by                                                                    
     transportation  network companies  or delivery  network                                                                    
     companies  to  facilitate  prearrangement of  rides  or                                                                    
     offers for delivery services.                                                                                              
                                                                                                                                
     Section 4:  This section amends AS  28.23.180 by adding                                                                  
     new definitions related  to delivery network companies,                                                                    
     including   "company,"   "delivery  network   company,"                                                                    
     "delivery  network   company  courier"   or  "courier,"                                                                    
     "delivery  services,"  and "offer."  These  definitions                                                                    
     clarify the  roles and  operations of  delivery network                                                                    
     companies  and  couriers  within  the  digital  network                                                                    
     system.                                                                                                                    
                                                                                                                                
1:11:33 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE  asserted that definitions  would be needed  for the                                                               
various couriers.                                                                                                               
                                                                                                                                
1:12:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES asked whether the  main purpose of the bill                                                               
was for definitions.                                                                                                            
                                                                                                                                
CHAIR MCCABE  confirmed that  for the  most part  it was,  and he                                                               
gave an example of a situation with a delivery driver.                                                                          
                                                                                                                                
CHAIR MCCABE announced that HB 376 was held over.