05/07/2025 01:30 PM Senate LABOR & COMMERCE

               SB  35-DELIVERY NETWORK COMPANIES                                                                            
                                                                                                                                
4:03:09 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration  of  SENATE  BILL  NO.   35  "An  Act  relating  to                                                               
transportation network and delivery network companies."                                                                         
                                                                                                                                
4:03:29 PM                                                                                                                    
KONRAD  JACKSON,  Staff,  Senator Jesse  Bjorkman,  Alaska  State                                                               
Legislature, Juneau, Alaska, provided a  brief summary for SB 35.                                                               
He stated that the bill  amends workers' compensation statutes to                                                               
classify delivery  and transportation network company  drivers as                                                               
independent contractors  if the drivers meet  statutory criteria.                                                               
SB 35 clarifies definitions,  resolves legal inconsistencies, and                                                               
creates  a level  playing field,  allowing  driversmost  of  whom                                                               
work  less than  10  hours per  weekto   supplement their  income                                                               
while maintaining flexibility.                                                                                                  
                                                                                                                                
4:05:20 PM                                                                                                                    
CHAIR BJORKMAN  opened public testimony  on SB 35;  finding none,                                                               
he closed public testimony.                                                                                                     
                                                                                                                                
4:06:09 PM                                                                                                                    
CHAIR BJORKMAN  explained his  intent of SB  35 that  drivers for                                                               
delivery network  companies are independent  contractors, similar                                                               
to transportation network company drivers  under the 2017 law. He                                                               
said  questions remain  about appropriate  auto and  occupational                                                               
insurance coverage for these drivers.  There is ongoing work with                                                               
the  Division of  Insurance to  craft  policies ensuring  drivers                                                               
have  expected   protections,  both  while  delivering   and  for                                                               
potential  injuries,   emphasizing  careful   policy  development                                                               
rather than rushing implementation.                                                                                             
                                                                                                                                
4:08:24 PM                                                                                                                    
SENATOR YUNDT  asked for  a review  of the  workers' compensation                                                               
requirements and for clarification of who is included.                                                                          
                                                                                                                                
4:08:42 PM                                                                                                                    
CHAIR BJORKMAN stated  that currently, drivers for  Uber and Lyft                                                               
are   exempt   from   workers'  compensation   under   the   2017                                                               
Transportation  Network  Company  law.  The  law  is  unclear  on                                                               
whether  delivery network  company drivers  are covered,  but the                                                               
intent was  to treat them similarly  to Uber or Lyft  drivers. SB
  aims to  clarify that  delivery network  company drivers  are                                                               
also exempt from workers' compensation.                                                                                         
                                                                                                                                
4:10:31 PM                                                                                                                    
SENATOR GRAY-JACKSON  opined that independent  contractors should                                                               
have  protection in  case of  injury. She  stated that  she might                                                               
propose a potential amendment that may require delivery network                                                                 
companies to provide occupational injury insurance for drivers.                                                                 
                                                                                                                                
4:11:10 PM                                                                                                                    
CHAIR BJORKMAN held SB 35 in committee.