Legislature(2015 - 2016)BUTROVICH 205
04/14/2015 08:00 AM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB9 | |
| SB89 | |
| SB58 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 58 | TELECONFERENCED | |
| += | SB 89 | TELECONFERENCED | |
| += | SB 74 | TELECONFERENCED | |
| *+ | SB 67 | TELECONFERENCED | |
| += | SB 9 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 58-TRANSPORT NETWORK SVES. & WORKERS COMP
9:56:58 AM
CHAIR STOLTZE announced the consideration of SB 58.
9:57:25 AM
SENATOR COGHILL moved to adopt the CS for SB 58, version 29-
LS0616\P, as the working document.
9:57:39 AM
CHAIR STOLTZE objected for discussion and explained that the
bill is before the committee because of a transportation
challenge in Chugiak/Eagle River, a community of 35,000 people.
The mayor has said that the insurance issue has to be resolved
at the state level before they can return to the debate at the
local level of how to deal with transportation network
contractors. This is an insurance bill that removes one obstacle
to even having the discussion.
9:59:26 AM
BRANDON BREFCZYNSKI, Staff to Senator Bill Stoltze, Alaska State
Legislature, Juneau, Alaska, explained that the change in the
State Affairs committee substitute (CS) occurs on page 7, line
19 in section 5. It was a minor drafting error: at the end of
subsection (d) it used to read "that the transportation network
company has the duty to defend the claim" and that was changed
to "the transportation network company insurer has the duty".
All parties agree to it.
10:00:15 AM
MR. BREFCZYNSKI provided an overview of the bill.
On page 1, line 6:
Section 1 provides clarification for insurers regarding personal
insurance policies and transportation network company (TNC)
insurance policies.
On page 3, line 3:
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
On page 4, line 8:
Section 3: Amends AS 23.30.230(a) by adding new language to
exempt transportation network company drivers and horse carriage
operators from the Workers' Compensation Act.
On page 5, line 12:
Section 4: Amends AS 23.30.230(c) by adding new definitions.
On page 6, line 16:
Section 5: Amends AS 28 by adding a new chapter with three new
sections.
AS 28.23.010. Financial Responsibility of transportation network
companies clarifies the coverage between personal insurance and
TNC insurance.
AS 28.23.015. Transportation network company automobile
insurance disclosures is a disclosure requirement for the TNC to
let the drivers know that a driver's personal insurance may not
cover the driver in the event of an accident and to let them
know of the insurance coverage provided by the TNC.
AS 28.23.200 Definitions provides new definitions similar to the
ones in section 2 for AS 28.23.
Section 6: Applicability clause for sections 3 and 4.
Section 7: Retroactivity clause for sections 3, 4, and 6.
Section 8: Section 5 effective date.
Section 9: Immediate effective date for all sections excluding
section 8.
10:02:21 AM
CHAIR STOLTZE removed his objection and announced that version P
is adopted.
SENATOR WIELECHOWSKI asked if the Division of Worker's
Compensation supported this bill.
10:03:36 AM
MIKE MONAGLE, Director, Division of Worker's Compensation,
Department of Labor and Workforce Development (DOLWD), Juneau,
Alaska, said the department is neutral on SB 58. Language in the
Labor and Commerce version had been addressed in the Labor and
Commerce version and they had no objection to that.
He noted some concern with the retroactive clause as a policy
issues because it makes the legislation retroactive back to
January 2014. So, if there are any claims or pending actions
before the department this bill would take away the rights of
those claimants to pursue a workers' compensation claim for any
injury happening while a TNC was operating in the state.
SENATOR WIELECHOWSKI asked if he was aware of any claims that
had been filed since January 1, 2014.
MR. MONAGLE answered no, but an injured worker has up to two
years to step forward with a claim.
10:05:26 AM
SENATOR WIELECHOWSKI asked if any other departments had any
concerns.
10:06:14 AM
MARTY HESTER, Deputy Director, Division of Insurance, Department
of Commerce, Community and Economic Development (DCCED), Juneau,
Alaska, answered that section 1 affects the insurance code that
he oversees and it provides clarity to those in Alaska who are
involved in the TNC industry. It establishes what can be
excluded and that TNCs and insurers must work in concert to
assist Alaskan consumers in resolving their claims.
SENATOR WIELECHOWSKI, in reference to section 1, asked if the
people who are driving will have some degree of adequate
insurance.
10:07:43 AM
MR. HESTER answered yes and the other sections address the
requirements for insurance. Section 1 just provides clarity as
to what a personal auto insurer may exclude for and not
necessarily a policy that is covering a TNC operator.
SENATOR WIELECHOWSKI asked if they are allowing a driver's
personal insurance to exclude coverage while the driver is
working for a TNC, but then the TNC must provide insurance.
MR. HESTER answered that was his understanding of the bill.
Section 5 on page 6, line 16, develops the financial
responsibility of the TNCs and lays out the amount of insurance
they are required to cover for the different periods.
10:09:13 AM
SENATOR WIELECHOWSKI asked if a person who is on the way to pick
up someone is covered even though they don't have a passenger in
the car. A person may be getting their car fixed; who covers
that?
MR. HESTER answered that there are three different periods of
operation when someone is participating in a TNC.
-Period 1 would be when a TNC driver has their application on
the smart phone but has not made a pair with someone.
-Period 2 is when a match has actually been made and accepted,
but a passenger has not yet entered the vehicle.
-Period 3 is when the passenger has actually been picked up by
the TNC driver.
He explained that Section 5 actually speaks to the three
different sections: language on page 6, line 29, speaks to
period 1; periods 2 and 3 are addressed on page 7, lines 10 and
11.
10:11:50 AM
BRYCE BENNETT, Senior Operations Manager, Uber Northwest,
Seattle, Washington, supported SB 58. He explained that it would
clarify the relationship between TNCs and the small independent
contractors that they partner with in the State of Alaska. He
said Uber works with multiple-industry parties including
insurance to outline insurance requirements for TNCs throughout
the states. This is part of a national agreement that multiple
states have now adopted for TNC insurance.
MR. BENNETT added that Uber is a TNC platform that connects
riders and drivers in search of safe and reliable rides with the
nearest driver through a cashless transaction. The system brings
an unprecedented level of accountability to transportation in
cities in knowing where your driver is, who they are and able to
leave feedback after every trip.
When a driver goes through their very thorough vetting process
of background checks and a vehicle inspection, he has the
flexibility to come and go as he pleases. There are no shifts;
partners completely make their own hours. A majority of them are
part-time and just work on the platform five hours a week or 20
hours a month. They are not dispatched like a traditional taxi
cab; they receive a request directed from the rider and are able
to decide whether to accept it or not. Further, they have their
own small business; in many places actually acquire business
licenses with local municipalities. Partners take 80 percent of
every calculated fare at the end of the trips; they have no
hourly rates. Finally, they receive a 1099 at the end of each
year and there is no tax withholding. In places where multiple
TNCs exist, partners are able to be logged into multiple
platforms at the same time and choose which request to take.
SB 58 will clear up not only the insurance components of TNCs,
but also the independent contractor relationship that exists.
10:17:37 AM
CHAIR STOLTZE said some other TNCs are: Lyft, Uber, Sidecar,
Wingz, Summon, and Haxi, but Uber is the one that has been
involved within the 49th state recently. He noted that horse
carriage riders in Anchorage had some issues on interpretation
and this would provide that clarity for them, also. They have
the same operating rules as taxis, but use a different kind of
horse power. Finding no further comments, he closed public
testimony.
MR. BREFCZYNSKI said there are two fiscal notes: one from the
Division of Motor Vehicles and one from the Division of
Insurance, both of which are zero.
10:18:14 AM
SENATOR MCGUIRE moved to report the CS for SB 58 from committee
with individual recommendations and attached zero fiscal
note(s).
CHAIR STOLTZE announced that without objection, CSSB 58(STA)
moves from the Senate State Affairs Standing Committee.