Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/11/2015 11:00 AM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB149 | |
| SB58 | |
| SB107 | |
| SB99 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 149 | TELECONFERENCED | |
| += | SB 58 | TELECONFERENCED | |
| *+ | SB 107 | TELECONFERENCED | |
| += | SB 99 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 58-TRANSPORT NETWORK SVES. & WORKERS COMP
12:37:49 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 58. "An Act relating to workers'
compensation and transportation network companies; and providing
for an effective date." She noted that this was the second
hearing and public testimony was open. She asked for a motion to
adopt the proposed committee substitute.
12:38:01 PM
SENATOR GIESSEL motioned to adopt the CS for SB 58, labeled 29-
LS0616\N, as the working document.
CHAIR COSTELLO objected for discussion purposes.
BRANDON BREFCZYNSKI, Staff, Senator Bill Stoltze, delivered the
following sectional analysis for the CS for SB 58:
Section 1: Amends AS 21.96 by adding a new section
21.96.018 Transportation network company insurance
provisions
Insurers may exclude coverage offered under a policy
of an owner or operator of a personal vehicle while
logged onto a transportation network company digital
network or engaged in a prearranged ride. Exclusions
of this section apply regardless of the requirements
under AS 28.20. This section does not require or
preclude a personal automobile insurance policy to
provide coverage while the driver is logged onto the
network or engaged in a prearranged ride. Holds
insurers not liable for excluding coverage of under a
personal insurance policy while logged onto a digital
network or engaging in a prearranged ride. Requires
cooperation of transportation network companies and
insurers during a claims investigation.
Section 2: Amends AS 21.96 by adding new section to
provide the following definitions:
· Digital network
· Personal vehicle
· Prearranged ride
· Transportation network company
· Transportation network company driver
· Transportation network company rider
Section 3: Amends AS 23.30.230(a) by adding new
language to exempt transportation network company
drivers and horse carriage operator from the Workers'
Compensation Act.
Section 4: Amends AS 23.30.230(c) by adding new
definitions.
Section 5: Amends AS 28 by adding a new chapter
Chapter 23 Transportation Network Companies and
Drivers
AS 28.23.010. Financial Responsibility of
transportation network companies.
Requires either the transportation network company
driver or transportation network company on behalf of
the driver to maintain primary automobile insurance
while logged onto the digital network or while
engaging in a prearranged ride. Institutes insurance
requirements for when drivers are logged into a
digital network and engaging in a prearranged ride.
Requires the transportation network company to provide
insurance if the driver's insurance has lapsed.
Required insurance may be placed with an insurer
licensed under AS 21.09.010 or AS 21.34. Insurance
requirements of this section satisfy the requirements
of AS 28.20. Requires proof of insurance.
AS 28.23.015. Transportation network company
automobile insurance disclosures.
Requires a transportation network company to disclose
in writing to transportation network company drivers
the insurance coverage provided while the driver uses
a personal vehicle in connection to a digital network
or while engaged in a prearranged ride, and that the
driver's personal insurance may not provide coverage
when logged onto a digital network or engaging in a
prearranged ride.
AS 28.23.200 Definitions
Provides new definitions for AS 28.23.
Section 6: Applicability clause.
Section 7: Retroactivity clause.
Section 8: Section 5 effective date.
Section 9: Immediate effective date for all sections
excluding section 8.
12:40:21 PM
SENATOR MEYER joined the committee.
12:42:28 PM
CHAIR COSTELLO removed her objection and version N was before
the committee.
SENATOR STEVENS asked how it works to transition from personal
to company insurance.
MR. BREFCZYNSKI explained that a driver is operating under
his/her personal insurance until he/she logs onto the app and is
seeking passengers. After that he/she is covered under a $50,000
death and bodily injury policy, $100,000 for death and bodily
injury for each incident, and $25,000 property damage provided
through the transportation network company. Once the driver has
accepted a rider, he/she is covered by a $1 million insurance
policy provided through the transportation network company
(TNC). These provisions are in Section 5. The insurance reverts
to the smaller policy once the rider is dropped off. If the
driver is no longer looking for a rider and turns the app off,
the insurance reverts to the driver's personal insurance.
SENATOR STEVENS asked if a driver is covered under his/her
personal insurance once they've logged onto the app.
MR. BREFCZYNSKI directed attention to Section 1 that says that
insurers have the option of excluding coverage when a driver is
logged onto the app or covered by a transportation network
company policy.
12:44:59 PM
CHAIR COSTELLO asked what would keep a person from dropping
their personal insurance and instead logging onto the app any
time they're driving.
MR. BREFCZYNSKI explained that state law requires drivers to
carry insurance for their private vehicle and transportation
network companies like Uber have requirements for someone to
become a driver. Insurance is one of the requirements.
CHAIR COSTELLO asked if there are protections to keep a driver
from abusing the use of the TNC insurance by logging on when
he/she didn't intend to pick up a rider.
MR. BREFCZYNSKI deferred the question to Uber.
CHAIR COSTELLO asked him to provide some background on the horse
carriage provision.
12:47:24 PM
MR. BREFCZYNSKI explained that Senator Stoltze has constituents
in his district that operate horse carriage services and he
decided they should be exempted.
CHAIR COSTELLO opened public testimony.
12:48:52 PM
ARMAND FELICIANO, Property Casualty Insurers Association of
America, testified in support of the CS for SB 58. He said the
language in the bill is part of a national agreement. Sections 1
and 5 address insurance gaps that were of concern and now will
be good for drivers, passengers, and the public because it
clarifies the law regarding insurance. The bill is flexible and
accommodates innovation and provides adequate disclosure to
drivers. As written, the bill protects liability insurance and
is a good public policy that provides insurance whenever an Uber
driver operates in Alaska.
Referencing previous questions, he explained that the insurance
falls into two periods. This bill would make it clear that if
someone is logged on without a passenger coverage could come
either from personal insurance or it could be provided by the
TNC's or a cross between a commercial and personal policy. Once
a passenger gets in the car, the TNC policy is in force.
CHAIR COSTELLO asked if there is a way that the driver indicates
on the app that he/she has a passenger.
MR. FELICIANO confirmed that the driver indicates in the app
that he/she has accepted a passenger and is on the way to pick
them up. There's an electronic record.
12:52:10 PM
CARLA JACOBS, Policy Team, Uber Technologies, Chicago, Illinois,
testified in support of the CS for SB 58. She agreed with Mr.
Feliciano that the language in the bill is part of a national
agreement that multiple states have adopted for transportation
network company insurance. The bill now provides regulatory
authority for TNC insurance and defines TNC affiliated drivers
as independent contractors.
MS. JACOBS explained that Uber is a technology platform that
connects riders with the nearest driver through a cashless
transaction. The way the process works is that drivers can apply
for an online platform. They submit information including their
driver's license, vehicle registration, insurance, and
inspection form. The applicant undergoes a thorough background
check conducted by an accredited third party. Each driver then
gets a 19-point vehicle inspection by a local certified
mechanic. The driver then partners with the Uber platform and
has the ability to log onto the platform anytime. She noted
that, on average, partners use the platform 20 hours a month.
Drivers receive requests directly from riders, not through a
dispatch service, and can choose whether to accept or not.
Partners take home 80 percent of each fare, 20 percent goes to
Uber for the use of the platform and drivers receive a 1099 form
at the end of each year. In cities where multiple TNCs operate,
the partner drivers have the freedom to partner with multiple
platforms.
12:56:39 PM
SENATOR STEVENS asked what impact Uber has had on independent
taxicab companies.
MS. JACOBS replied it varies from city to city, but often there
has been a positive impact because taxi drivers are able to
supplement their income by driving a cab and also partnering
with Uber. In cities such as Milwaukie where there was a limit
on the number of taxicab permits available, Uber worked with the
city to change the permitting structure to accommodate TNCs as
well as additional taxicab permits.
SENATOR MEYER asked what, other than use of the app and
insurance, Uber provides its drivers for taking 20 percent of
the fare.
MS. JACOBS reiterated the previous testimony that insurance can
be provided by the individual driver, the TNC or a combination
of the two.
SENATOR MEYER asked if he as a TNC driver would be covered by
the TNC insurance if he turned the app on and drove to the
grocery store for personal business.
MS. JACOBS replied it would depend on the driver's situation. If
the driver had an insurance policy that allowed coverage during
period 1 when the application is on and a ride has not been
accepted, then coverage would be through that driver's policy.
If the driver's personal insurance didn't provide coverage
during period 1, then coverage would be through Uber's policy.
1:01:46 PM
CHAIR COSTELLO closed public testimony and solicited a motion.
1:01:57 PM
SENATOR GIESSEL motioned to report the CS for SB 58, labeled 29-
LS0616\N, from committee with individual recommendations and
attached fiscal note(s).
CHAIR COSTELLO announced that without objection, CSSB 58(L&C) is
reported from the Senate Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB 58 - Version N.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 58 |
| CSSB 58 Version N sponsor statement.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 58 |
| CSSB 58 Version N sectional.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 58 |
| SB 107.PDF |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Sponsor Statement.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Sectional Analysis.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Presentation.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Accreditation Brief.PDF |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - NAIMC Support.PDF |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Financial Regulation Standards & Accreditation Program.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |