Legislature(2025 - 2026)BELTZ 105 (TSBldg)
03/18/2025 03:30 PM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB64 | |
| SB35 | |
| SB34 | |
| SB37 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 64 | TELECONFERENCED | |
| *+ | SB 35 | TELECONFERENCED | |
| *+ | SB 34 | TELECONFERENCED | |
| *+ | SB 37 | TELECONFERENCED | |
SB 35-DELIVERY NETWORK COMPANIES
3:54:46 PM
CHAIR KAWASAKI announced the consideration of SENATE BILL NO. 35
"An Act relating to transportation network and delivery network
companies."
3:55:16 PM
SENATOR BJORKMAN speaking as sponsor of SB 35 introduced the
legislation:
[Original punctuation provided.]
SB 35 amends statutes related to workers compensation,
aligning individuals who provide delivery services
through delivery network companies with individuals
who provide services through Transportation Network
Companies. The legislation will define these workers
as independent contractors, provided they meet
statutory requirements.
3:55:48 PM
SENATOR BJORKMAN continued with the introduction of SB 35:
Currently, delivery network companies are not defined
in statute, which has led to confusion and litigation
across the country, threatening these services that
customers value and depend on.
People have built a dependence on Digital Network
Companies, for food and other items. DNC's can deliver
prescriptions, groceries, household supplies and even
pick up prescriptions from a customer's home and get
it filled at a pharmacy.
Drivers will often swap between passenger
transportation and goods delivery and sometimes are
even logged onto multiple apps at once, depending on
the demand of customers.
Roughly 90 percent of drivers work less than 10 hours
per week. These drivers usually provide delivery
services to supplement their income, so they can work
their full-time job, or go to school during the day,
et cetera.
The vast majority of door dashers prefer to remain
working as independent contractors. Thus, creating a
need for a path forward that requires drivers to have
the ability to work as much or as little as they want,
and whenever they want.
3:57:15 PM
SAVAYA BIEBER, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, provided the sectional analysis for
SB 35:
[Original punctuation provided.]
SB 35 Delivery Network Companies
Version A Sectional Analysis
Section 1: Amends AS 23.30.230(a) by adding a delivery
network company courier that provides delivery
services or is logged onto the digital network of a
delivery network company under AS 28.23.080 to the
list of individuals who are not covered by the Alaska
Workers' Compensation Act.
Section 2: Amends AS 28.23.080(a) to establish that
delivery network companies are not an employer of
transportation network drivers or delivery network
couriers under AS 23.10.699, AS 23.20.520, or AS
23.30.395. It further clarifies that an independent
contractor for all purposes is not an employee of the
company if the company does not propose specific
working hours, does not impose restrictions on the
ability of the driver to use the digital network of
other companies, does not restrict a driver from
engaging in any other occupation, or if the company
enters into a written agreement with the driver or
courier stating that the driver is an independent
contractor for the company.
Section 3: Amends AS 28.23.180(1) by adding to the
definition of "digital network" to include use by
delivery network companies to facilitate offers for
delivery services.
Section 4: Adds definitions to AS 28.23.180, to define
"company", "delivery network company", "delivery
network company courier" or "courier", "delivery
services", and "offer".
3:58:59 PM
SENATOR WIELECHOWSKI asked if there is insurance coverage for a
person driving a car used for delivery services.
3:59:11 PM
MS. BIEBER answered she would have to get back to him with an
answer.
3:59:24 PM
SENATOR WIELECHOWSKI stated that delivery drivers are exempt
from workers' compensation in Alaska if involved in an accident
but when the driver gets sick or gets a disease from a passenger
that they drove in their car, the driver may qualify for
workers' compensation. He noted in Section 4, line 7, [AS
28.23.180] a company is defined as a transportation network
company or a delivery network company and asked if UPS, FedEx,
or the United States Postal Service be swept into that
definition.
4:00:17 PM
SENATOR BJORKMAN answered that his office can check with the
Department of Labor and the Division of Insurance.
4:00:35 PM
SENATOR YUNDT asked if Senator Bjorkman knows how many Alaskan
customers Uber Eats, or similar delivery companies, serve on a
daily or weekly basis.
4:00:51 PM
SENATOR BJORKMAN answered that he doesn't have an exact number,
but Uber Eats has about 16,000 thousand customers in Alaska and
DoorDash has about 14,000 thousand customers.
4:01:19 PM
SENATOR YUNDT asked if Senator Bjorkman's office knows of any
states where the delivery drivers are considered employees.
4:01:35 PM
SENATOR BJORKMAN answered that he is not aware of any states
that consider delivery drivers to be employees.
4:01:43 PM
MS. BIEBER added that none of the 50 states consider delivery
drivers as employees.
4:01:54 PM
SENATOR YUNDT asked if Senator Bjorkman has asked delivery
drivers whether they would continue working for the delivery
network companies if the drivers were classified as employees.
4:02:17 PM
SENATOR BJORKMAN answered that the feedback from drivers
indicated being classified as employees would not meet their
expectations regarding the flexibility and freedom they
currently experience as self-employed drivers.
4:03:02 PM
CHAIR KAWASAKI announced invited testimony and opened public
testimony on SB 35.
4:03:22 PM
JOHN FINLEY, Public Policy, Uber Eats, San Francisco,
California, testified by invitation on SB 35 and stated that SB
35 updates current law to affirm that delivery drivers have the
same status as transportation network drivers. Many people use
both Uber Eats and Uber rides, and this legislation ensures the
drivers are treated the same under Alaska law. SB 35 protects
worker independence and provides consistency. Flexibility is the
top reason drivers choose platforms like Uber; the drivers set
their own hours and can work across different delivery apps. He
said in Alaska, the lack of clear law creates legal uncertainty,
which may affect the services many residents and businesses rely
on. He noted that since launching in Anchorage in 2020, Uber
Eats has boosted local economic growth, empowered small
businesses, and made essential items more accessible. Uber Eats
offers more than just food; you can order groceries,
prescriptions, and even use government food benefits for
delivery. Uber Eats help small businesses grow without the cost
of running their own delivery services. According to the latest
report, 85 percent of restaurants said they couldn't offer
delivery without Uber Eats. This helps local shops compete and
stay open, especially during economic shifts. Customers can
order from local favorites just as easily as big chains. Uber
Eats believes delivery platforms strengthen local economies.
4:07:06 PM
CHAIR KAWASAKI asked if all states follow Alaska's Uber Eats
model or is there a model that considers a driver an employee.
4:07:18 PM
MR. FINLEY answered that in the United States delivery drivers
are all considered independent contractors and not employees. He
stated that in some states there are statutes in place that give
drivers certain benefits, Uber Eats calls this an independent
contractor plus contract.
4:08:28 PM
CHAIR KAWASAKI asked what happens when a driver gets injured on
the job.
4:08:48 PM
MR. FINLEY said he will need to verify occupational hazard
insurance information, but Uber Eats provides a million dollars
in liability coverage when a driver is in an accident.
4:09:44 PM
PATRICK FITZGERALD, Political Coordinator, Teamsters Local 959,
Anchorage, Alaska, testified on SB 35 and stated that this
legislation would exempt delivery network companies like
DoorDash and Amazon Eats from providing workers' compensation,
aligning them with transportation companies like Uber and Lyft.
SB 35 reclassifies these workers as independent contractors,
responsible for their own insurance, equipment, and now workers'
compensation. Teamsters Local 959 opposes this because these
workers generate profit for the companies, which hold no
liability. Companies like DoorDash and Amazon Eats have steadily
shifted responsibilities away from themselves while earning
billions. He said these contractors, expected to make around
$58,000 a year, also cover fuel, maintenance, and other costs,
now adding workers' compensation is unfair, especially given
Alaska's risky road conditions. SB 35 gives global companies
another way to avoid responsibility for the people who power
their business. Workers' compensation is a basic standard all
large companies should meet. He said while his company
appreciates Senator Bjorkman's efforts to create consistency,
its his belief that these companies should provide workers'
compensation for their workforce.
4:11:50 PM
CHAIR KAWASAKI referenced the definition of a delivery network
company courier in Section 4 [AS 28.23.180] and asked if a FedEx
employees might be considered a courier.
4:12:18 PM
MR. FITZGERALD replied that Teamsters Local 959 represents UPS
not FedEx. He said UPS drivers are considered employees and
therefore are unaffected by SB 35.
4:12:54 PM
JESSICA LYMAN, Government Affairs, Western U.S., Instacart, San
Francisco, California, testified in support of SB 35. She
paraphrased the following written testimony:
[Original punctuation provided.]
On behalf of Instacart, I am writing to thank you for
introducing SB 35 and express our support for the
legislation, which would preserve access to the
independence and flexibility that shoppers on the
Instacart platform and other app-based delivery
workers consistently say they want and need and that
rideshare drivers are already provided within the
State of Alaska.
Instacart is the leading grocery technology company in
North America, and we are proud to offer access to
flexible earning opportunities for the more than 1,600
Alaskans. Shoppers the individuals who pick, pack,
and deliver orders are often caretakers, parents,
students, or retirees seeking alternatives to
traditional employment or ways to supplement other
income. In fact, over 80 percent of shoppers say they
choose to shop on Instacart because of the
independence it provides. Nationally, the vast
majority of people who earn through our platform
including in Alaska shop less than 10 hours a week
on average. They have the freedom to choose when,
where, and for how long they work without any set
schedule, minimum commitment, or obligation.
4:14:17 PM
MS. LYMAN continued with her testimony of SB 35:
In Alaska, Instacart partners with more than 25 retail
banners in more than 130 stores, with almost half of
those locations accepting EBT SNAP. By supporting
these retailers, Instacart has helped add over 100
brick-and-mortar grocery jobs from cashiers to store
managers across Alaska and approximately $5.1
million in additional revenue for Alaska's grocers2.
Moreover, Instacart is happy to serve tens of
thousands across the Frontier state.
Senate Bill 35 meets the needs of a modern and
independent workforce by clarifying that individuals
delivering essential goods on app-based platforms are
properly classified as independent contractors,
provided they meet the same specific criteria applied
to rideshare drivers. This workforce enjoys
unprecedented flexibility and many may choose to
operate on multiple platforms across delivery and
rideshare. This clarity will preserve parity for these
workers whether they are driving on a rideshare
platform or delivering food, prescriptions or other
essential goods and put an end to needless
uncertainty, which can undermine the flexibility and
freedom that shoppers want and deserve.
Thank you again for introducing Senate Bill 35. By
doing so, we can ensure a fair and equitable
environment for the growing app-based workforce across
Alaska. We urge the Legislature to pass this bill.
4:15:38 PM
CHAIR KAWASAKI asked what Instacart does if a driver(shopper)
claims an injury, given that drivers do not qualify for workers'
compensation.
4:15:55 PM
MS. LYMAN answered that Instacart provides occupation accidental
insurance that will cover a shopper if they are injured while
shopping for Instacart.
4:16:29 PM
KARI NORE, Director, External Affairs, Alaska Chamber of
Commerce, Anchorage, Alaska, testified in support of SB 35 and
read the following testimony:
[Original punctuation provided.]
The Alaska Chamber (the Chamber) writes in support of
Senate Bill 35, an act relating to transportation
network and delivery network companies.
The Alaska Chamber is the state's largest statewide
business advocacy organization. Our mission is to
promote a healthy business environment in Alaska. The
Chamber has more than 700 members and represents
businesses of all sizes and industries from across the
state, representing 58,000 Alaskan workers and $4.6
billion in wages.
Delivery network companies provide convenient and
affordable delivery of goods to Alaskans. They also
provide economic opportunity to people who can use
this avenue to garner additional income. It is
estimated that one delivery network company operating
in Alaska has 14,500 Alaskans working on their
platform and 89 percent of those Alaskans work less
than 10 hours per week. This highlights how delivery
network companies provide opportunities for Alaskans
to make a supplemental income on their terms.
SB 35 would establish standards that reflect the
reality of app-based work -- the same standards that
the state already uses for rideshare drivers -- and
provide delivery network companies and delivery
drivers in Alaska with greater regulatory certainty.
Furthermore, this would ensure Alaska stays in line
with developments in other states where marketplace
platform workers across all platforms are treated
uniformly.
Businesses need consistency in the laws and
regulations governing them to thrive in the economy.
SB 35 is a free enterprise and good-for-business bill,
and we encourage swift passage.
4:18:20 PM
CHAIR KAWASAKI stated that SB 35 would extend the list of
persons who are not covered by the workers compensation law. He
said there are 13 different job classes that aren't covered by
workers compensation law, food delivery services being one of
them. He asked why the Chamber of Commerce is supportive of SB
35 when typically it wants fairness for everyone and SB 35
wouldn't give drivers workers compensation.
4:19:12 PM
MS. NORE responded that she will have to get back to the
committee with an answer.
4:19:25 PM
CHAIR KAWASAKI Senator Gray-Jackson joined the meeting.
4:19:39 PM
ANNA POWELL, Senior Manager, Government Relations, Door Dash,
Seattle, Washington, testified in support of SB 35 and read the
following testimony:
[Original punctuation provided.]
We are a technology company that empowers the local
economy by connecting consumers with their favorite
local businesses. In this state alone, we partner with
more than 700 merchants and more than 14,000 couriers
or, as we call them, "Dashers" who chose to earn
supplemental income by delivering food, groceries, and
other goods throughout their communities. DoorDash
stands with the Dasher community who overwhelmingly
prefer to remain independent contractors and offers
the following comments in support of SB 35.
Dashers and the Importance of Independence and
Flexibility
Alaska Dashers value the independence and flexibility
that dashing provides. A Dasher never needs to commit
to a schedule to be online, is free to decline any
offer for work they are sent, and can leave the
platform for weeks or months at a time and come back
whenever a new need arises.
4:20:49 PM
MS. POWELL continued with her testimony:
Time and time again, Dashers tell us that the top
motivation for using platforms like DoorDash is the
ability to create their own schedule and work as much
or as little as they want. Why? Because most Dashers
do relatively little work on the platform: in 2023, on
average, Dashers in Alaska only spent five hours per
week on delivery, and almost 90% delivered less than
10 hours per week. The vast majority have other
primary sources of income or responsibilities and only
use the platform for supplemental work. In a survey
last year, 82% of Dasher respondents say they have a
full-or part-time job, are self-employed, students,
stay-at-home caregivers or retired.
SB 35 Protects App-Based Delivery Worker Independence
The flexibility and independence that Dashers highly
value is incompatible with traditional employment.
That's why in a survey last year, more than 90% of
Dasher respondents said they preferred to remain
independent contractors.
SB 35 would protect the independence of Dashers and
other app-based delivery workers. Many existing worker
classification standards were not created with app-
based work and workers in mind. SB 35 would establish
a classification test for app-based delivery workers
that recognizes the unique nature of this work. This
standard is already used in Alaska for rideshare
drivers and is similar to standards for app-based
workers that have been adopted in numerous states
including Arizona, California, Florida, Indiana, Iowa,
Kentucky, Tennessee, and Utah.
DoorDash strongly supports SB 35 that would protect
the flexibility this type of work provides to the
thousands of Alaskan Dashers who choose it.
4:23:00 PM
CHAIR KAWASAKI closed public testimony on SB 35.
4:23:21 PM
SENATOR BJORKMAN reiterated that SB 35 aims to treat delivery
network companies the same as transportation network companies,
allowing people to take on delivery work freely without the
added restrictions on being classified as employees.
4:23:53 PM
CHAIR KAWASAKI held SB 35 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 35 Version A.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 35 Sponsor Statement Ver. A.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 35 Sectional Analysis Ver. A.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 35 Uber Letter of Support 2.4.25.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 35 Instacart Letter of Support 1.31.25.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 35 Doordash Letter of Support 2.6.25.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 34, Version A.pdf |
SFIN 5/7/2025 9:00:00 AM SSTA 3/18/2025 3:30:00 PM |
SB 34 |
| SB 34 Sponsor Statement.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 34 |
| SB 34 Sectional Analysis.pdf |
SFIN 5/7/2025 9:00:00 AM SSTA 3/18/2025 3:30:00 PM |
SB 34 |
| SB 34 Supporting Document.pdf |
SFIN 5/7/2025 9:00:00 AM SSTA 3/18/2025 3:30:00 PM |
SB 34 |
| SB 37 Version A 2.13.25.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 37 |
| SB 37 Sponsor Statement version A 2.13.25.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 37 |
| SB 37 Fiscal Note.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 37 |
| SB 37 Supporting Document 2.13.25.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 37 |
| SB 35.ltr oppose.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB34-LEG-SESS-03-18-2025.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 34 |
| SB 35 Fiscal Note.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 37 Sectional Analysis version A 2.18.25.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 37 |
| SB 37 AFP ltr of support.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 37 |
| SB 37 Ltr of concerns.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 37 |
| SB 35 Ltr of opposition 3.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 35 Ltr of support and opposition.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| atr_support sb35.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB35 Delivery Network Co Support Letter SSTA 3.18.25.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |
| SB 35 Ltrs of support.pdf |
SSTA 3/18/2025 3:30:00 PM |
SB 35 |