HCS CSSB 14(L&C): "An Act relating to transportation network companies and transportation network company drivers; and providing for an effective date."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 14(L&C) 01 "An Act relating to transportation network companies and transportation network 02 company drivers; and providing for an effective date." 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 09.65 is amended by adding a new section to read: 11 Sec. 09.65.350. Immunity for certain actions related to transportation 12 network companies. (a) The state or a municipality, and the officers, employees, and 13 agents of the state or a municipality, are not liable in tort for damages for the injury to 14 or death of a person or property damage resulting from an act, omission, or failure of a 15 transportation network company or driver to comply with the requirements of
01 AS 28.23 or other law. 02 (b) In this section, "transportation network company" and "driver" have the 03 meanings given in AS 28.23.180. 04 * Sec. 3. AS 21.96 is amended by adding a new section to read: 05 Sec. 21.96.018. Transportation network company insurance provisions. (a) 06 Insurers that write automobile insurance in the state may exclude, notwithstanding any 07 requirement under AS 28.20, any and all coverage afforded under the policy issued to 08 an owner or operator of a personal vehicle for any loss or injury that occurs while a 09 driver is logged onto the digital network of a transportation network company or while 10 a driver provides a prearranged ride. The right to exclude all coverage may apply to 11 any coverage included in an automobile insurance policy, including 12 (1) liability coverage for bodily injury and property damage; 13 (2) uninsured and underinsured motorist coverage; 14 (3) medical payments coverage; 15 (4) comprehensive physical damage coverage; and 16 (5) collision physical damage coverage. 17 (b) Nothing in this section 18 (1) implies or requires that a personal automobile insurance policy 19 provide coverage while the driver 20 (A) is logged onto the digital network of a transportation 21 network company; 22 (B) is engaged in a prearranged ride; or 23 (C) otherwise uses a personal vehicle to transport passengers 24 for compensation; 25 (2) may be construed to require an insurer to use specific policy 26 language or to refer to this section in order to exclude any and all coverage for any 27 loss or injury that occurs while a driver 28 (A) is logged onto the digital network of a transportation 29 network company; or 30 (B) provides a prearranged ride; or 31 (3) precludes an insurer from providing coverage for the personal
01 vehicle of a transportation network company driver if the insurer chooses to provide 02 coverage by contract or endorsement. 03 (c) Automobile insurers that exclude coverage under (a) of this section do not 04 have a duty to defend or indemnify any claim expressly excluded under (a) of this 05 section. Nothing in this section may be considered to invalidate or limit an exclusion 06 contained in a policy, including any policy in use or approved for use in this state 07 before the enactment of this section, that excludes coverage for vehicles used to carry 08 persons or property for a charge or available for hire by the public. 09 (d) An automobile insurer that defends or indemnifies a claim against a driver 10 that is excluded under the terms of its policy shall have a right of contribution against 11 other insurers that provide automobile insurance to the same driver in satisfaction of 12 the coverage requirements of AS 28.23.050 at the time of loss. 13 (e) In a claims coverage investigation, a transportation network company shall 14 immediately provide, upon request by directly involved parties or any insurer of the 15 transportation network company driver, if applicable, the precise times that a 16 transportation network company driver logged onto and off of the digital network of a 17 transportation network company in the 12-hour period immediately preceding and in 18 the 12-hour period immediately following the accident. Insurers potentially providing 19 coverage shall disclose, upon request of any insurer involved in the claim, the 20 applicable coverages, exclusions, and limits provided under any automobile insurance 21 maintained under AS 28.23.050. 22 (f) In this section, "digital network," "personal vehicle," "prearranged ride," 23 "transportation network company," "transportation network company driver," and 24 "driver" have the meanings given in AS 28.23.180. 25 * Sec. 4. AS 23.30.230(a) is amended to read: 26 (a) The following persons are not covered by this chapter: 27 (1) a part-time baby-sitter; 28 (2) a cleaning person; 29 (3) harvest help and similar part-time or transient help; 30 (4) a person employed as a sports official on a contractual basis and 31 who officiates only at sports events in which the players are not compensated; in this
01 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper, 02 timekeeper, organizer, or other person who is a neutral participant in a sports event; 03 (5) a person employed as an entertainer on a contractual basis; 04 (6) a commercial fisherman, as defined in AS 16.05.940; 05 (7) an individual who drives a taxicab whose compensation and written 06 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours 07 worked by the individual or the areas in which the individual may work are restricted 08 except to comply with local ordinances; 09 (8) a participant in the Alaska temporary assistance program 10 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than 11 subsidized or unsubsidized work or on-the-job training; 12 (9) a person employed as a player or coach by a professional hockey 13 team if the person is covered under a health care insurance plan provided by the 14 professional hockey team, the coverage is applicable to both work-related and 15 nonwork-related injuries, and the coverage provides medical and related benefits as 16 required under this chapter, except that coverage may not be limited to two years from 17 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care 18 insurance" has the meaning given in AS 21.12.050; [AND] 19 (10) a person working as a qualified real estate licensee who performs 20 services under a written contract that provides that the person will not be treated as an 21 employee for federal income tax or workers' compensation purposes; in this 22 paragraph, "qualified real estate licensee" means a person who is required to be 23 licensed under AS 08.88.161 and whose payment for services is directly related to 24 sales or other output rather than the number of hours worked; and 25 (11) a transportation network company driver who provides a 26 prearranged ride or is otherwise logged onto the digital network of a 27 transportation network company as a driver. 28 * Sec. 5. AS 23.30.230(c) is amended by adding new paragraphs to read: 29 (4) "digital network" has the meaning given in AS 28.23.180; 30 (5) "prearranged ride" has the meaning given in AS 28.23.180; 31 (6) "transportation network company" has the meaning given in
01 AS 28.23.180; 02 (7) "transportation network company driver" has the meaning given in 03 AS 28.23.180. 04 * Sec. 6. AS 28 is amended by adding a new chapter to read: 05 Chapter 23. Transportation Network Companies and Drivers. 06 Sec. 28.23.010. Not other carriers. A transportation network company or 07 driver is not a common carrier, contract carrier, or motor carrier, and may not provide 08 taxicab or for-hire vehicle service. The state or a municipality may not require a 09 transportation network company driver to register the personal vehicle the driver uses 10 to provide prearranged rides as a commercial or for-hire vehicle. 11 Sec. 28.23.020. Fare collected for services. A transportation network 12 company may charge a fare to a transportation network company rider. Before a fare is 13 collected from a rider, the transportation network company shall disclose to the rider, 14 on the company's Internet website or in the company's software application, the 15 transportation network company's fare or fare calculation method. The transportation 16 network company shall provide riders the option of receiving an estimated fare before 17 the rider enters the vehicle of a transportation network company driver. 18 Sec. 28.23.030. Identification of transportation network company vehicles 19 and drivers. Before a rider enters the personal vehicle of a transportation network 20 company driver, the transportation network company shall display on the company's 21 Internet website or in the company's software application a picture of the 22 transportation network company driver and the license plate number of the personal 23 vehicle providing the prearranged ride. 24 Sec. 28.23.040. Electronic receipt. Within a reasonable period following the 25 completion of a trip, the transportation network company shall transmit to the rider, on 26 behalf of the transportation network company driver, an electronic receipt showing the 27 origin and destination of the trip and itemizing the fare paid, if any. 28 Sec. 28.23.050. Financial responsibility of transportation network 29 companies. (a) A transportation network company driver, or transportation network 30 company on behalf of the driver, shall maintain primary automobile insurance that 31 recognizes that the driver is a transportation network company driver or otherwise
01 uses a vehicle to transport passengers for compensation and that covers the driver 02 while the driver is logged onto the digital network of a transportation network 03 company or while the driver is engaged in a prearranged ride. 04 (b) The following automobile insurance requirements shall apply while a 05 participating transportation network company driver is logged onto the digital network 06 of a transportation network company and is available to receive transportation requests 07 but is not engaged in a prearranged ride: 08 (1) primary automobile liability insurance in the amount of at least 09 $50,000 for death and bodily injury for each person, $100,000 for death and bodily 10 injury for each incident, and $25,000 for property damage; 11 (2) uninsured or underinsured motor vehicle coverage as required 12 under AS 21.96.020 and AS 28.20.440; 13 (3) the coverage requirements of this subsection may be satisfied by 14 (A) automobile insurance maintained by the transportation 15 network company driver; 16 (B) automobile insurance maintained by the transportation 17 network company; or 18 (C) any combination of (A) and (B) of this paragraph. 19 (c) The following automobile insurance requirements shall apply while a 20 transportation network company driver is engaged in a prearranged ride: 21 (1) primary automobile liability insurance that provides at least 22 $1,000,000 for death, bodily injury, and property damage; 23 (2) uninsured or underinsured motor vehicle coverage as required 24 under AS 21.96.020 and AS 28.20.440; 25 (3) the coverage requirements of this subsection may be satisfied by 26 (A) automobile insurance maintained by the transportation 27 network company driver; 28 (B) automobile insurance maintained by the transportation 29 network company; or 30 (C) a combination of (A) and (B) of this paragraph. 31 (d) If insurance maintained by a driver under (b) or (c) of this section has
01 lapsed or does not provide the required coverage, insurance maintained by a 02 transportation network company must provide the coverage required by this section 03 beginning with the first dollar of a claim, and the transportation network company 04 insurer has the duty to defend that claim. 05 (e) Coverage under an automobile insurance policy maintained by the 06 transportation network company may not be dependent on a personal automobile 07 insurer first denying a claim nor shall a personal automobile insurance policy be 08 required first to deny a claim. 09 (f) Insurance required by this section may be placed with an insurer licensed 10 under AS 21.09.060 or with a surplus lines insurer eligible under AS 21.34 that has a 11 credit rating not lower than A- from A.M. Best or a similar rating from another rating 12 agency recognized by the division of insurance. 13 (g) Insurance satisfying the requirements of this section shall be considered to 14 satisfy the financial responsibility requirement for a motor vehicle under AS 28.20. 15 (h) A transportation network company driver shall carry proof of coverage 16 under (b) and (c) of this section with the driver at all times during the driver's use of a 17 vehicle in connection with a digital network of a transportation network company. In 18 the event of an accident, a transportation network company driver shall provide the 19 insurance coverage information to the directly interested parties, automobile insurers, 20 and investigating police officers upon request under AS 28.22.019. Upon that request, 21 a transportation network company driver shall also disclose to directly interested 22 parties, automobile insurers, and investigating police officers whether the driver was 23 logged onto the digital network of a transportation network company or on a 24 prearranged ride at the time of an accident. 25 (i) If the insurance carrier for the transportation network company makes a 26 payment for a claim for physical damage to a personal vehicle that is subject to a lien, 27 the insurance carrier shall pay the claim jointly to the owner of the personal vehicle 28 and the primary lienholder or directly to the business repairing the personal vehicle. 29 Sec. 28.23.060. Transportation network company automobile insurance 30 disclosures. A transportation network company shall disclose in writing to 31 transportation network company drivers the following before the drivers are allowed
01 to accept a request for a prearranged ride on the digital network of the transportation 02 network company: 03 (1) the insurance coverage, including the types of coverage and the 04 limits for each coverage, that the transportation network company provides while the 05 transportation network company driver uses a personal vehicle in connection with a 06 transportation network company's digital network; 07 (2) that the automobile insurance policy of the transportation network 08 company driver might not provide any coverage while the driver is logged onto the 09 digital network of a transportation network company and is available to receive 10 transportation requests or is engaged in a prearranged ride, depending on the terms of 11 the automobile insurance policy of the driver; and 12 (3) that, if the personal vehicle the transportation network company 13 driver uses to provide transportation network services has a lien against it, using the 14 motor vehicle for transportation network services without physical damage coverage 15 may violate the terms of the contract with the lienholder. 16 Sec. 28.23.070. Certificate of insurance. A transportation network company 17 shall file a written certificate of insurance with the director of the division of insurance 18 demonstrating that the transportation network company has satisfied the requirements 19 of AS 28.23.050. The certificate of insurance must state that the applicable insurance 20 policy may not be cancelled unless written notice is provided to the division of 21 insurance at least 30 days before cancellation. 22 Sec. 28.23.080. Limitations on transportation network companies. A 23 transportation network company is not an employer of transportation network drivers 24 under AS 23.10.699, AS 23.20.520, or AS 23.30.395. A transportation network 25 company driver is an independent contractor for all purposes and is not an employee 26 of the transportation network company if the transportation network company 27 (1) does not unilaterally prescribe specific hours during which a driver 28 shall be logged onto the digital network of the transportation network company; 29 (2) does not impose restrictions on the ability of the driver to use the 30 digital network of other transportation network companies; 31 (3) does not restrict a driver from engaging in any other occupation or
01 business; and 02 (4) enters into a written agreement with the driver stating that the 03 driver is an independent contractor for the transportation network company. 04 Sec. 28.23.090. Zero tolerance for drug or alcohol use. The transportation 05 network company shall implement a zero-tolerance policy prohibiting drug and 06 alcohol use while a driver is providing a prearranged ride or is logged onto the digital 07 network of the transportation network company but not providing a prearranged ride. 08 The transportation network company shall post the company's zero-tolerance policy 09 prohibiting drug and alcohol use on the company's Internet website. 10 Sec. 28.23.100. Transportation network company driver requirements. (a) 11 Before a transportation network company allows an individual to accept trip requests 12 through its digital network, the transportation network company, or a third party, shall 13 (1) require the individual to submit to the transportation network 14 company an application that includes the individual's address, age, and driver's license 15 number, the motor vehicle registration and automobile liability insurance information 16 for the individual's personal vehicle, and other information required by the 17 transportation network company; 18 (2) conduct a local and national criminal background check for each 19 applicant that reviews 20 (A) a multi-state or multi-jurisdiction criminal records locator 21 or a similar commercial nationwide database with validation; and 22 (B) the United States Department of Justice National Sex 23 Offender Public Website; and 24 (3) obtain and review a driving history research report for the 25 individual. 26 (b) A transportation network company may not allow a driver to accept trip 27 requests through its digital network if the driver 28 (1) has, in the past three years, 29 (A) been convicted of or forfeited bail for a third or subsequent 30 moving traffic violation; 31 (B) been convicted of
01 (i) driving while license canceled, suspended, revoked, 02 or in violation of a limitation under AS 28.15.291; 03 (ii) failure to stop at the direction of a peace officer 04 under AS 28.35.182; 05 (iii) reckless or negligent driving under AS 28.35.400 06 or 28.35.410; or 07 (iv) a law or ordinance of another jurisdiction having 08 similar elements to an offense listed in (i) - (iii) of this subparagraph; 09 (2) has, in the past seven years, been convicted of 10 (A) any offense that is an unclassified, class A, or class B 11 felony in this or another jurisdiction; or 12 (B) a misdemeanor involving 13 (i) a crime under AS 28.33.030, AS 28.35.030, or 14 28.35.032; 15 (ii) a crime under AS 28.35.050 or 28.35.060; 16 (iii) a crime against a person under AS 11.41; or 17 (iv) a law or ordinance of another jurisdiction having 18 similar elements to an offense listed in (i) - (iii) of this subparagraph; 19 (3) is listed on the United States Department of Justice National Sex 20 Offender Public Website; or 21 (4) is under 21 years of age. 22 (c) A transportation network company driver may not 23 (1) provide a prearranged ride unless the transportation network 24 company rider has been matched to the driver through the digital network of the 25 transportation network company; 26 (2) solicit a ride or accept a street hail request for a ride; or 27 (3) solicit or accept cash payments for a fare from a rider. 28 Sec. 28.23.105. Transportation network company vehicles. A motor 29 vehicle that is used by a transportation network company driver for transportation 30 network company purposes may not be more than 12 years of age. 31 Sec. 28.23.110. Nondiscrimination and accessibility. (a) The transportation
01 network company shall adopt a policy prohibiting discrimination based on destination 02 or a class or status protected under AS 18.80.210 with respect to a rider or potential 03 rider. The company shall inform drivers of the policy. 04 (b) A transportation network company driver shall comply with all applicable 05 laws relating to accommodation of service animals. 06 (c) A transportation network company may not impose additional charges for 07 providing services to riders with physical disabilities because of those disabilities. 08 Sec. 28.23.120. Records. A transportation network company shall keep 09 records 10 (1) maintained by the transportation network company for an 11 individual prearranged ride for at least two years from the date of the prearranged ride; 12 and 13 (2) maintained by individual transportation network company drivers 14 for two years after the agreement between the transportation network company and 15 driver entered into under AS 28.23.080(4) ends. 16 Sec. 28.23.130. International airports. The Department of Transportation and 17 Public Facilities may, under AS 02.15, adopt a regulation or enter into a contract, 18 lease, or other arrangement with a transportation network company or driver for use of 19 an international airport owned or operated by the state. A regulation or arrangement 20 under AS 02.15 must be consistent with this chapter. 21 Sec. 28.23.180. Definitions. In this chapter, 22 (1) "digital network" means any online-enabled application, software, 23 website, or system offered or used by a transportation network company that enables 24 the prearrangement of rides with transportation network company drivers; 25 (2) "personal vehicle" means a motor vehicle that is used by a 26 transportation network company driver and is owned, leased, or otherwise authorized 27 for use by the transportation network company driver; "personal vehicle" does not 28 include a taxi, limousine, or other commercial motor vehicle for hire; 29 (3) "prearranged ride" means transportation provided by a driver to a 30 rider, beginning when a driver accepts a ride requested by a rider through a digital 31 network controlled by a transportation network company, continuing while the driver
01 transports a requesting rider, and ending when the last requesting rider departs from 02 the personal vehicle; "prearranged ride" does not include shared expense carpool or 03 vanpool arrangements or transportation provided using a taxi, limousine, or other 04 commercial motor vehicle for hire; 05 (4) "transportation network company" means a corporation, 06 partnership, sole proprietorship, or other entity that uses a digital network to connect 07 transportation network company riders to transportation network company drivers who 08 provide prearranged rides; a transportation network company may not be considered to 09 control, direct, or manage the personal vehicles or transportation network company 10 drivers that connect to its digital network, except where agreed to by written contract; 11 (5) "transportation network company driver" or "driver" means an 12 individual who 13 (A) receives connections to potential passengers and related 14 services from a transportation network company in exchange for payment of a 15 fee to the transportation network company; and 16 (B) uses a personal vehicle to offer or provide a prearranged 17 ride to riders upon connection through a digital network controlled by a 18 transportation network company in return for compensation or payment of a 19 fee; 20 (6) "transportation network company rider" or "rider" means an 21 individual or person who uses a digital network of a transportation network company 22 to connect with a transportation network company driver who provides prearranged 23 rides to the rider in the driver's personal vehicle between points chosen by the rider. 24 Sec. 28.23.190. Short title. This chapter may be cited as the Transportation 25 Network Companies Act. 26 * Sec. 7. AS 29.10.200 is amended by adding a new paragraph to read: 27 (66) AS 29.35.148 (regulation of transportation network companies or 28 drivers). 29 * Sec. 8. AS 29.35 is amended by adding a new section to read: 30 Sec. 29.35.148. Regulation of transportation network companies or 31 drivers. (a) The authority to regulate transportation network companies and
01 transportation network company drivers is reserved to the state, and, except as 02 specifically provided by statute, a municipality may not enact or enforce an ordinance 03 regulating transportation network companies or transportation network company 04 drivers. 05 (b) The prohibition on regulation under (a) of this section does not include 06 (1) imposition of a municipal sales tax on a transportation network 07 company driver that taxes a trip originating in the municipality in the same manner 08 that other services are taxed in the municipality; 09 (2) a municipal traffic ordinance. 10 (c) This section applies to home rule and general law municipalities. 11 (d) In this section, 12 (1) "transportation network company" has the meaning given in 13 AS 28.23.180; 14 (2) "transportation network company driver" has the meaning given in 15 AS 28.23.180. 16 * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).