HB 132: "An Act relating to transportation network companies and transportation network company drivers."
00 HOUSE BILL NO. 132 01 "An Act relating to transportation network companies and transportation network 02 company drivers." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 LEGISLATIVE INTENT. It is the intent of the legislature to clarify the Alaska 07 Workers' Compensation Act, ensure the safety, reliability, and cost-effectiveness of rides 08 provided by transportation network company drivers in the state, and preserve and enhance 09 access to these important transportation options for residents of and visitors to the state. 10 * Sec. 2. AS 21.96 is amended by adding a new section to read: 11 Sec. 21.96.018. Transportation network company insurance provisions. (a) 12 Insurers that write automobile insurance in the state may exclude, notwithstanding any 13 requirement under AS 28.20, any and all coverage afforded under the policy issued to 14 an owner or operator of a personal vehicle for any loss or injury that occurs while a
01 driver is logged onto the digital network of a transportation network company or while 02 a driver provides a prearranged ride. The right to exclude all coverage may apply to 03 any coverage included in an automobile insurance policy, including 04 (1) liability coverage for bodily injury and property damage; 05 (2) uninsured and underinsured motorist coverage; 06 (3) medical payments coverage; 07 (4) comprehensive physical damage coverage; and 08 (5) collision physical damage coverage. 09 (b) Nothing in this section 10 (1) implies or requires that a personal automobile insurance policy 11 provide coverage while the driver 12 (A) is logged onto the digital network of a transportation 13 network company; 14 (B) is engaged in a prearranged ride; or 15 (C) otherwise uses a personal vehicle to transport passengers 16 for compensation; 17 (2) may be construed to require an insurer to use specific policy 18 language or to refer to this section in order to exclude any and all coverage for any 19 loss or injury that occurs while a driver 20 (A) is logged onto the digital network of a transportation 21 network company; or 22 (B) provides a prearranged ride; or 23 (3) precludes an insurer from providing coverage for the personal 24 vehicle of a transportation network company driver if the insurer chooses to provide 25 coverage by contract or endorsement. 26 (c) Automobile insurers that exclude coverage under (a) of this section do not 27 have a duty to defend or indemnify any claim expressly excluded under (a) of this 28 section. Nothing in this section may be considered to invalidate or limit an exclusion 29 contained in a policy, including any policy in use or approved for use in this state 30 before the enactment of this section, that excludes coverage for vehicles used to carry 31 persons or property for a charge or available for hire by the public.
01 (d) An automobile insurer that defends or indemnifies a claim against a driver 02 that is excluded under the terms of its policy shall have a right of contribution against 03 other insurers that provide automobile insurance to the same driver in satisfaction of 04 the coverage requirements of AS 28.23.050 at the time of loss. 05 (e) In a claims coverage investigation, a transportation network company shall 06 immediately provide, upon request by directly involved parties or any insurer of the 07 transportation network company driver, if applicable, the precise times that a 08 transportation network company driver logged onto and off of the digital network of a 09 transportation network company in the 12-hour period immediately preceding and in 10 the 12-hour period immediately following the accident. Insurers potentially providing 11 coverage shall disclose, upon request of any insurer involved in the claim, the 12 applicable coverages, exclusions, and limits provided under any automobile insurance 13 maintained under AS 28.23.050. 14 (f) In this section, "digital network," "personal vehicle," "prearranged ride," 15 "transportation network company," "transportation network company driver," and 16 "driver" have the meanings given in AS 28.23.180. 17 * Sec. 3. AS 23.30.230(a) is amended to read: 18 (a) The following persons are not covered by this chapter: 19 (1) a part-time baby-sitter; 20 (2) a cleaning person; 21 (3) harvest help and similar part-time or transient help; 22 (4) a person employed as a sports official on a contractual basis and 23 who officiates only at sports events in which the players are not compensated; in this 24 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper, 25 timekeeper, organizer, or other person who is a neutral participant in a sports event; 26 (5) a person employed as an entertainer on a contractual basis; 27 (6) a commercial fisherman, as defined in AS 16.05.940; 28 (7) an individual who drives a taxicab whose compensation and written 29 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours 30 worked by the individual or the areas in which the individual may work are restricted 31 except to comply with local ordinances;
01 (8) a participant in the Alaska temporary assistance program 02 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than 03 subsidized or unsubsidized work or on-the-job training; 04 (9) a person employed as a player or coach by a professional hockey 05 team if the person is covered under a health care insurance plan provided by the 06 professional hockey team, the coverage is applicable to both work-related and 07 nonwork-related injuries, and the coverage provides medical and related benefits as 08 required under this chapter, except that coverage may not be limited to two years from 09 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care 10 insurance" has the meaning given in AS 21.12.050; [AND] 11 (10) a person working as a qualified real estate licensee who performs 12 services under a written contract that provides that the person will not be treated as an 13 employee for federal income tax or workers' compensation purposes; in this 14 paragraph, "qualified real estate licensee" means a person who is required to be 15 licensed under AS 08.88.161 and whose payment for services is directly related to 16 sales or other output rather than the number of hours worked; and 17 (11) a transportation network company driver who provides a 18 prearranged ride or is otherwise logged onto the digital network of a 19 transportation network company as a driver. 20 * Sec. 4. AS 23.30.230(c) is amended by adding new paragraphs to read: 21 (4) "digital network" has the meaning given in AS 28.23.180; 22 (5) "prearranged ride" has the meaning given in AS 28.23.180; 23 (6) "transportation network company" has the meaning given in 24 AS 28.23.180; 25 (7) "transportation network company driver" has the meaning given in 26 AS 28.23.180. 27 * Sec. 5. AS 28 is amended by adding a new chapter to read: 28 Chapter 23. Transportation Network Companies and Drivers. 29 Sec. 28.23.010. Not other carriers. A transportation network company or 30 driver is not a common carrier, contract carrier, or motor carrier, and may not provide 31 taxicab or for-hire vehicle service. The state or a municipality may not require a
01 transportation network company driver to register the personal vehicle the driver uses 02 to provide prearranged rides as a commercial or for-hire vehicle. 03 Sec. 28.23.020. Fare collected for services. A transportation network 04 company may charge a fare to a transportation network company rider. Before a fare is 05 collected from a rider, the transportation network company shall disclose to the rider, 06 on the company's Internet website or in the company's software application, the 07 transportation network company's fare or fare calculation method. The transportation 08 network company shall provide riders the option of receiving an estimated fare before 09 the rider enters the vehicle of a transportation network company driver. 10 Sec. 28.23.030. Identification of transportation network company vehicles 11 and drivers. Before a rider enters the personal vehicle of a transportation network 12 company driver, the transportation network company shall display on the company's 13 Internet website or in the company's software application a picture of the 14 transportation network company driver and the license plate number of the personal 15 vehicle providing the prearranged ride. 16 Sec. 28.23.040. Electronic receipt. Within a reasonable period following the 17 completion of a trip, the transportation network company shall transmit to the rider, on 18 behalf of the transportation network company driver, an electronic receipt showing the 19 origin and destination of the trip and itemizing the fare paid, if any. 20 Sec. 28.23.050. Financial responsibility of transportation network 21 companies. (a) A transportation network company driver, or transportation network 22 company on behalf of the driver, shall maintain primary automobile insurance that 23 recognizes that the driver is a transportation network company driver or otherwise 24 uses a vehicle to transport passengers for compensation and that covers the driver 25 while the driver is logged onto the digital network of a transportation network 26 company or while the driver is engaged in a prearranged ride. 27 (b) The following automobile insurance requirements shall apply while a 28 participating transportation network company driver is logged onto the digital network 29 of a transportation network company and is available to receive transportation requests 30 but is not engaged in a prearranged ride: 31 (1) primary automobile liability insurance in the amount of at least
01 $50,000 for death and bodily injury for each person, $100,000 for death and bodily 02 injury for each incident, and $25,000 for property damage; 03 (2) uninsured or underinsured motor vehicle coverage as required 04 under AS 21.96.020 and AS 28.20.440; 05 (3) the coverage requirements of this subsection may be satisfied by 06 (A) automobile insurance maintained by the transportation 07 network company driver; 08 (B) automobile insurance maintained by the transportation 09 network company; or 10 (C) any combination of (A) and (B) of this paragraph. 11 (c) The following automobile insurance requirements shall apply while a 12 transportation network company driver is engaged in a prearranged ride: 13 (1) primary automobile liability insurance that provides at least 14 $1,000,000 for death, bodily injury, and property damage; 15 (2) uninsured or underinsured motor vehicle coverage as required 16 under AS 21.96.020 and AS 28.20.440; 17 (3) the coverage requirements of this subsection may be satisfied by 18 (A) automobile insurance maintained by the transportation 19 network company driver; 20 (B) automobile insurance maintained by the transportation 21 network company; or 22 (C) a combination of (A) and (B) of this paragraph. 23 (d) If insurance maintained by a driver under (b) or (c) of this section has 24 lapsed or does not provide the required coverage, insurance maintained by a 25 transportation network company must provide the coverage required by this section 26 beginning with the first dollar of a claim, and the transportation network company 27 insurer has the duty to defend that claim. 28 (e) Coverage under an automobile insurance policy maintained by the 29 transportation network company may not be dependent on a personal automobile 30 insurer first denying a claim nor shall a personal automobile insurance policy be 31 required first to deny a claim.
01 (f) Insurance required by this section may be placed with an insurer licensed 02 under AS 21.09.060 or with a surplus lines insurer eligible under AS 21.34 that has a 03 credit rating not lower than A- from A.M. Best or a similar rating from another rating 04 agency recognized by the division of insurance. 05 (g) Insurance satisfying the requirements of this section shall be considered to 06 satisfy the financial responsibility requirement for a motor vehicle under AS 28.20. 07 (h) A transportation network company driver shall carry proof of coverage 08 under (b) and (c) of this section with the driver at all times during the driver's use of a 09 vehicle in connection with a digital network of a transportation network company. In 10 the event of an accident, a transportation network company driver shall provide the 11 insurance coverage information to the directly interested parties, automobile insurers, 12 and investigating police officers upon request under AS 28.22.019. Upon that request, 13 a transportation network company driver shall also disclose to directly interested 14 parties, automobile insurers, and investigating police officers whether the driver was 15 logged onto the digital network of a transportation network company or on a 16 prearranged ride at the time of an accident. 17 (i) In the event of a loss involving a personal vehicle used in connection with a 18 transportation network company and if the personal vehicle is subject to a lien, the 19 insurance carrier for the transportation network company shall pay a claim covered 20 under collision physical damage coverage or comprehensive physical damage 21 coverage directly to the business repairing the personal vehicle or jointly to the owner 22 of the personal vehicle and the primary lienholder on the covered personal vehicle. 23 Sec. 28.23.060. Transportation network company automobile insurance 24 disclosures. A transportation network company shall disclose in writing to 25 transportation network company drivers the following before the drivers are allowed 26 to accept a request for a prearranged ride on the digital network of the transportation 27 network company: 28 (1) the insurance coverage, including the types of coverage and the 29 limits for each coverage, that the transportation network company provides while the 30 transportation network company driver uses a personal vehicle in connection with a 31 transportation network company's digital network;
01 (2) that the automobile insurance policy of the transportation network 02 company driver might not provide any coverage while the driver is logged onto the 03 digital network of a transportation network company and is available to receive 04 transportation requests or is engaged in a prearranged ride, depending on the terms of 05 the automobile insurance policy of the driver; and 06 (3) that, if the personal vehicle the transportation network company 07 driver uses to provide transportation network services has a lien against it, using the 08 motor vehicle for transportation network services without physical damage coverage 09 may violate the terms of the contract with the lienholder. 10 Sec. 28.23.070. Certificate of insurance. A transportation network company 11 shall file a written certificate of insurance with the director of the division of insurance 12 demonstrating that the transportation network company has satisfied the requirements 13 of AS 28.23.050. The certificate of insurance must state that the applicable insurance 14 policy may not be cancelled unless written notice is provided to the division of 15 insurance at least 30 days before cancellation. 16 Sec. 28.23.080. Limitations on transportation network companies. A 17 transportation network company is not an employer of transportation network drivers 18 under AS 23.20.520 and a transportation network company driver is an independent 19 contractor for all purposes and is not an employee of the transportation network 20 company if the transportation network company 21 (1) does not unilaterally prescribe specific hours during which a driver 22 shall be logged onto the digital network of the transportation network company; 23 (2) does not impose restrictions on the ability of the driver to use the 24 digital network of other transportation network companies; 25 (3) does not restrict a driver from engaging in any other occupation or 26 business; and 27 (4) enters into a written agreement with the driver stating that the 28 driver is an independent contractor for the transportation network company. 29 Sec. 28.23.090. Zero tolerance for drug or alcohol use. The transportation 30 network company shall implement a zero-tolerance policy prohibiting drug and 31 alcohol use while a driver is providing a prearranged ride or is logged onto the digital
01 network of the transportation network company but not providing a prearranged ride. 02 The transportation network company shall post the company's zero-tolerance policy 03 prohibiting drug and alcohol use on the company's Internet website. 04 Sec. 28.23.100. Transportation network company driver requirements. 05 Before a transportation network company allows an individual to accept trip requests 06 through its digital network, the transportation network company, or a third party, shall 07 (1) require the individual to submit to the transportation network 08 company an application that includes the individual's address, age, and driver's license 09 number, the motor vehicle registration and automobile liability insurance information 10 for the individual's personal vehicle, and other information required by the 11 transportation network company; 12 (2) conduct a local and national criminal background check for each 13 applicant that reviews 14 (A) a multi-state or multi-jurisdiction criminal records locator 15 or a similar commercial nationwide database with validation; and 16 (B) the United States Department of Justice National Sex 17 Offender Public Website; and 18 (3) obtain and review a driving history research report for the 19 individual. 20 Sec. 28.23.110. Nondiscrimination and accessibility. (a) The transportation 21 network company shall adopt a policy prohibiting discrimination based on destination, 22 race, color, national origin, religious belief or affiliation, sex, disability, age, sexual 23 orientation, or gender identity with respect to a rider or potential rider. The company 24 shall inform drivers of the policy. 25 (b) A transportation network company driver shall comply with all applicable 26 laws relating to accommodation of service animals. 27 (c) A transportation network company may not impose additional charges for 28 providing services to riders with physical disabilities because of those disabilities. 29 Sec. 28.23.120. Records. A transportation network company shall keep 30 records 31 (1) maintained by the transportation network company for an
01 individual prearranged ride for at least one year from the date of the prearranged ride; 02 and 03 (2) maintained by individual transportation network company drivers 04 for one year after the agreement between the transportation network company and 05 driver entered into under AS 28.23.080(4) ends. 06 Sec. 28.23.180. Definitions. In this chapter, 07 (1) "digital network" means any online-enabled application, software, 08 website, or system offered or used by a transportation network company that enables 09 the prearrangement of rides with transportation network company drivers; 10 (2) "personal vehicle" means a motor vehicle that is used by a 11 transportation network company driver and is owned, leased, or otherwise authorized 12 for use by the transportation network company driver; "personal vehicle" does not 13 include a taxi, limousine, or other commercial motor vehicle for hire; 14 (3) "prearranged ride" means transportation provided by a driver to a 15 rider, beginning when a driver accepts a ride requested by a rider through a digital 16 network controlled by a transportation network company, continuing while the driver 17 transports a requesting rider, and ending when the last requesting rider departs from 18 the personal vehicle; "prearranged ride" does not include shared expense carpool or 19 vanpool arrangements or transportation provided using a taxi, limousine, or other 20 commercial motor vehicle for hire; 21 (4) "transportation network company" means a corporation, 22 partnership, sole proprietorship, or other entity that uses a digital network to connect 23 transportation network company riders to transportation network company drivers who 24 provide prearranged rides; a transportation network company may not be considered to 25 control, direct, or manage the personal vehicles or transportation network company 26 drivers that connect to its digital network, except where agreed to by written contract; 27 (5) "transportation network company driver" or "driver" means an 28 individual who 29 (A) receives connections to potential passengers and related 30 services from a transportation network company in exchange for payment of a 31 fee to the transportation network company; and
01 (B) uses a personal vehicle to offer or provide a prearranged 02 ride to riders upon connection through a digital network controlled by a 03 transportation network company in return for compensation or payment of a 04 fee; 05 (6) "transportation network company rider" or "rider" means an 06 individual or person who uses a digital network of a transportation network company 07 to connect with a transportation network company driver who provides prearranged 08 rides to the rider in the driver's personal vehicle between points chosen by the rider. 09 Sec. 28.23.190. Short title. This chapter may be cited as the Transportation 10 Network Companies Act. 11 * Sec. 6. AS 29.10.200 is amended by adding a new paragraph to read: 12 (66) AS 29.35.148 (regulation of transportation network companies or 13 drivers). 14 * Sec. 7. AS 29.35 is amended by adding a new section to read: 15 Sec. 29.35.148. Regulation of transportation network companies or 16 drivers. (a) The authority to regulate transportation network companies and 17 transportation network drivers is reserved to the state, and, except as specifically 18 provided by statute, a municipality may not enact or enforce an ordinance regulating 19 transportation network companies or transportation network drivers. 20 (b) This section applies to home rule and general law municipalities. 21 (c) In this section, 22 (1) "transportation network company" has the meaning given in 23 AS 28.23.180; 24 (2) "transportation network company driver" has the meaning given in 25 AS 28.23.180.