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SB0035d -1- HCS CSSB 35(L&C)
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HOUSE CS FOR CS FOR SENATE BILL NO. 35(L&C)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE HOUSE LABOR AND COMMERCE COMMITTEE
Offered: 5/16/26
Referred: Rules
Sponsor(s): SENATOR BJORKMAN
A BILL
FOR AN ACT ENTITLED
"An Act relating to transportation network companies and delivery network companies; 1
relating to insurance coverage for transportation of persons for hire; relating to 2
occupational accident insurance; and relating to compensation of transportation 3
network company drivers and delivery network company couriers." 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
* Section 1. AS 21.96 is amended by adding a new section to read: 6
Sec. 21.96.017. Transportation and delivery network company 7
occupational accident insurance. An insurer authorized to write commercial casualty 8
insurance in this state may issue group or blanket occupational accident insurance 9
required under AS 28.23.065. In this section, "group or blanket occupational accident 10
insurance" does not include health care insurance as defined under AS 21.12.050 or 11
workers' compensation insurance. 12
* Sec. 2. AS 21.96.018(a) is amended to read: 13
(a) Insurers that write automobile insurance in the state may, notwithstanding 14
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any requirement under AS 28.20, exclude any and all coverage afforded under the 1
policy issued to an owner or operator of a personal vehicle for any loss or injury that 2
occurs while a driver is logged onto the digital network of a transportation network 3
company, [OR] while a driver provides a prearranged ride, or while a courier 4
provides delivery services. The right to exclude all coverage may apply to any 5
coverage included in an automobile insurance policy, including 6
(1) liability coverage for bodily injury and property damage; 7
(2) uninsured and underinsured motorist coverage; 8
(3) medical payments coverage; 9
(4) comprehensive physical damage coverage; and 10
(5) collision physical damage coverage. 11
* Sec. 3. AS 21.96.018(b) is amended to read: 12
(b) Nothing in this section 13
(1) implies or requires that a personal automobile insurance policy 14
provide coverage while a [THE DRIVER] 15
(A) driver is logged onto the digital network of a 16
transportation network company; 17
(B) driver is engaged in a prearranged ride; [OR] 18
(C) driver otherwise uses a personal vehicle to transport 19
passengers for compensation; or 20
(D) courier is providing delivery services; 21
(2) may be construed to require an insurer to use specific policy 22
language or to refer to this section in order to exclude any and all coverage for any 23
loss or injury that occurs while a [DRIVER] 24
(A) driver is logged onto the digital network of a 25
transportation network company; [OR] 26
(B) driver provides a prearranged ride; or 27
(C) courier provides delivery services; or 28
(3) precludes an insurer from providing coverage for the personal 29
vehicle of a transportation network company driver or delivery network company 30
courier if the insurer chooses to provide coverage by contract or endorsement. 31
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* Sec. 4. AS 21.96.018(f) is amended to read: 1
(f) In this section, "courier," "delivery network company," "delivery 2
network company courier," "delivery services," "digital network," "driver," 3
"personal vehicle," "prearranged ride," "transportation network company," and 4
"transportation network company driver" have the meanings given in AS 28.23.180. 5
* Sec. 5. AS 23.30.230(a) is amended to read: 6
(a) The following persons are not covered by this chapter: 7
(1) a part-time babysitter; 8
(2) a cleaning person; 9
(3) harvest help and similar part-time or transient help; 10
(4) a person employed as a sports official on a contractual basis and 11
who officiates only at sports events in which the players are not compensated; in this 12
paragraph, "sports official" includes an umpire, referee, judge, scorekeeper, 13
timekeeper, organizer, or other person who is a neutral participant in a sports event; 14
(5) a person employed as an entertainer on a contractual basis; 15
(6) a commercial fisherman, as defined in AS 16.05.940; 16
(7) an individual who drives a taxicab and whose compensation and 17
written contractual arrangement is as described in AS 23.10.055(a)(13), unless the 18
hours worked by the individual or the areas in which the individual may work are 19
restricted except to comply with local ordinances; 20
(8) a participant in the Alaska temporary assistance program 21
(AS 47.27) who is engaged in work activities required under AS 47.27.035 other than 22
subsidized or unsubsidized work or on-the-job training; 23
(9) a person employed as a player or coach by a professional hockey 24
team if the person is covered under a health care insurance plan provided by the 25
professional hockey team, the coverage is applicable to both work-related and 26
nonwork-related injuries, and the coverage provides medical and related benefits as 27
required under this chapter, except that coverage may not be limited to two years from 28
the date of injury as described under AS 23.30.095(a); in this paragraph, "health care 29
insurance" has the meaning given in AS 21.12.050; 30
(10) a person working as a qualified real estate licensee who performs 31
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services under a written contract that provides that the person will not be treated as an 1
employee for federal income tax or workers' compensation purposes; in this 2
paragraph, "qualified real estate licensee" means a person who is required to be 3
licensed under AS 08.88.161 and whose payment for services is directly related to 4
sales or other output rather than the number of hours worked; 5
(11) a transportation network company driver who provides a 6
prearranged ride or is otherwise logged onto the digital network of a transportation 7
network company as a driver; [AND] 8
(12) a person employed as an independent contractor; a person is an 9
independent contractor for the purposes of this section only if the person 10
(A) has an express contract to perform the services; 11
(B) is free from direction and control over the means and 12
manner of providing services, subject only to the right of the individual for 13
whom, or entity for which, the services are provided to specify the desired 14
results, completion schedule, or range of work hours, or to monitor the work 15
for compliance with contract plans and specifications, or federal, state, or 16
municipal law; 17
(C) incurs most of the expenses for tools, labor, and other 18
operational costs necessary to perform the services, except that materials and 19
equipment may be supplied; 20
(D) has an opportunity for profit and loss as a result of the 21
services performed for the other individual or entity; 22
(E) is free to hire and fire employees to help perform the 23
services for the contracted work; 24
(F) has all business, trade, or professional licenses required by 25
federal, state, or municipal authorities for a business or individual engaging in 26
the same type of services as the person; 27
(G) follows federal Internal Revenue Service requirements by 28
(i) obtaining an employer identification number, if 29
required; 30
(ii) filing business or self-employment tax returns for 31
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the previous tax year to report profit or income earned for the same 1
type of services provided under the contract; or 2
(iii) intending to file business or self-employment tax 3
returns for the current tax year to report profit or income earned for the 4
same type of services provided under the contract if the person's 5
business was not operating in the previous tax year; and 6
(H) meets at least two of the following criteria: 7
(i) the person is responsible for the satisfactory 8
completion of services that the person has contracted to perform and is 9
subject to liability for a failure to complete the contracted work, or 10
maintains liability insurance or other insurance policies necessary to 11
protect the employees, financial interests, and customers of the person's 12
business; 13
(ii) the person maintains a business location or a 14
business mailing address separate from the location of the individual 15
for whom, or the entity for which, the services are performed; 16
(iii) the person provides contracted services for two or 17
more different customers within a 12-month period or engages in any 18
kind of business advertising, solicitation, or other marketing efforts 19
reasonably calculated to obtain new contracts to provide similar 20
services; and 21
(13) a delivery network company courier who provides delivery 22
services or is otherwise logged onto the digital network of a delivery network 23
company under AS 28.23.080. 24
* Sec. 6. AS 28.20.440 is amended by adding a new subsection to read: 25
(m) The motor vehicle liability policy of an operator of a vehicle used or 26
maintained for the transportation of persons for hire must contain the following 27
coverage while the operator is transporting persons for hire: 28
(1) primary automobile liability insurance that provides at least 29
$1,000,000 for death, bodily injury, and property damage; 30
(2) uninsured and underinsured motorists coverage, as required under 31
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AS 21.96.020 and this section, that provides at least $500,000 for death, bodily injury, 1
and property damage, which may not be waived. 2
* Sec. 7. AS 28.23.050(a) is amended to read: 3
(a) A [TRANSPORTATION NETWORK COMPANY DRIVER, OR 4
TRANSPORTATION NETWORK] company, on behalf of a [THE] driver or 5
courier, shall maintain primary automobile insurance that 6
(1) recognizes that 7
(A) the driver is a transportation network company driver or 8
otherwise uses a vehicle to transport passengers for compensation; or 9
(B) the courier is a delivery network company courier; 10
(2) for a transportation network company, [AND THAT] covers the 11
driver while the driver is logged onto the digital network of a transportation network 12
company or while the driver is engaged in a prearranged ride; 13
(3) for a delivery network company, covers the courier while the 14
courier is using a motor vehicle and is providing delivery services or is available 15
to receive an offer immediately following completion of delivery services but is 16
not providing delivery services. 17
* Sec. 8. AS 28.23.050(b) is amended to read: 18
(b) The following automobile insurance requirements shall apply while a 19
participating [TRANSPORTATION NETWORK COMPANY] driver is logged onto 20
the digital network of a transportation network company and is available to receive 21
transportation requests but is not engaged in a prearranged ride, and while a courier 22
using a motor vehicle is logged onto the digital network of a delivery network 23
company and is available to receive an offer immediately following completion of 24
delivery services but is not providing delivery services: 25
(1) primary automobile liability insurance in the amount of at least 26
$50,000 for death and bodily injury for each person, $100,000 for death and bodily 27
injury for each incident, and $25,000 for property damage; 28
(2) uninsured or underinsured motor vehicle coverage as required 29
under AS 21.96.020 and AS 28.20.440; a transportation network company may not 30
waive the coverage [; 31
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(3) THE COVERAGE REQUIREMENTS OF THIS SUBSECTION 1
MAY BE SATISFIED BY 2
(A) AUTOMOBILE INSURANCE MAINTAINED BY THE 3
TRANSPORTATION NETWORK COMPANY DRIVER; 4
(B) AUTOMOBILE INSURANCE MAINTAINED BY THE 5
TRANSPORTATION NETWORK COMPANY; OR 6
(C) ANY COMBINATION OF (A) AND (B) OF THIS 7
PARAGRAPH]. 8
* Sec. 9. AS 28.23.050(c) is amended to read: 9
(c) The following automobile insurance requirements shall apply while a 10
[TRANSPORTATION NETWORK COMPANY] driver is engaged in a prearranged 11
ride or a courier using a motor vehicle is providing delivery services: 12
(1) primary automobile liability insurance that provides at least 13
$1,000,000 for death, bodily injury, and property damage; 14
(2) uninsured or underinsured motor vehicle coverage, as required 15
under AS 21.96.020 and AS 28.20.440, that provides at least $500,000 for death, 16
bodily injury, and property damage; a transportation network company may not 17
waive the coverage [; 18
(3) THE COVERAGE REQUIREMENTS OF THIS SUBSECTION 19
MAY BE SATISFIED BY 20
(A) AUTOMOBILE INSURANCE MAINTAINED BY THE 21
TRANSPORTATION NETWORK COMPANY DRIVER; 22
(B) AUTOMOBILE INSURANCE MAINTAINED BY THE 23
TRANSPORTATION NETWORK COMPANY; OR 24
(C) A COMBINATION OF (A) AND (B) OF THIS 25
PARAGRAPH]. 26
* Sec. 10. AS 28.23.050(e) is amended to read: 27
(e) Coverage under an automobile insurance policy maintained by the 28
[TRANSPORTATION NETWORK] company may not be dependent on a personal 29
automobile insurer first denying a claim nor shall a personal automobile insurance 30
policy be required first to deny a claim. 31
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* Sec. 11. AS 28.23.050(h) is amended to read: 1
(h) A [TRANSPORTATION NETWORK COMPANY] driver or courier 2
shall carry proof of coverage under (b) and (c) of this section, as applicable, with the 3
driver or courier at all times during the driver's or courier's use of a vehicle while 4
the driver or courier is logged onto the [IN CONNECTION WITH A] digital 5
network of a [TRANSPORTATION NETWORK] company. In the event of an 6
accident, a [TRANSPORTATION NETWORK COMPANY] driver or courier shall 7
provide the insurance coverage information to the directly interested parties, 8
automobile insurers, and investigating police officers upon request under 9
AS 28.22.019. Upon that request, a [TRANSPORTATION NETWORK COMPANY] 10
driver or courier shall also disclose to directly interested parties, automobile insurers, 11
and investigating police officers whether the driver or courier was logged onto the 12
digital network of a [TRANSPORTATION NETWORK] company, [OR] on a 13
prearranged ride, or providing delivery services at the time of an accident. 14
* Sec. 12. AS 28.23.050(i) is amended to read: 15
(i) If the insurance carrier for the [TRANSPORTATION NETWORK] 16
company makes a payment for a claim for physical damage to a personal vehicle that 17
is subject to a lien, the insurance carrier shall pay the claim jointly to the owner of the 18
personal vehicle and the primary lienholder or directly to the business repairing the 19
personal vehicle. 20
* Sec. 13. AS 28.23.060 is amended to read: 21
Sec. 28.23.060. Transportation and delivery network company automobile 22
insurance disclosures. A [TRANSPORTATION NETWORK] company shall 23
disclose in writing to [TRANSPORTATION NETWORK COMPANY] drivers and 24
couriers the following before the drivers or couriers are allowed to accept a request 25
for a prearranged ride or delivery services on the digital network of the 26
[TRANSPORTATION NETWORK] company: 27
(1) the insurance coverage, including the types of coverage and the 28
limits for each coverage, that the [TRANSPORTATION NETWORK] company 29
provides while the [TRANSPORTATION NETWORK COMPANY] driver or 30
courier uses a personal vehicle in connection with a [TRANSPORTATION 31
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NETWORK] company's digital network; 1
(2) that the automobile insurance policy of the [TRANSPORTATION 2
NETWORK COMPANY] driver or courier might not provide any coverage while the 3
driver is logged onto the digital network of a transportation network company and is 4
available to receive transportation requests, the driver [OR] is engaged in a 5
prearranged ride, or the courier is providing delivery services, depending on the 6
terms of the automobile insurance policy of the driver or courier; and 7
(3) that, if the personal vehicle the [TRANSPORTATION NETWORK 8
COMPANY] driver or courier uses to provide transportation network services or 9
delivery services has a lien against it, using the motor vehicle for transportation 10
network services or delivery services without physical damage coverage may violate 11
the terms of the contract with the lienholder. 12
* Sec. 14. AS 28.23 is amended by adding a new section to read: 13
Sec. 28.23.065. Occupational accident insurance. (a) A company shall 14
maintain group or blanket occupational accident insurance, issued by an insurer under 15
AS 21.96.017, to provide coverage required under (b) of this section for an injury 16
suffered by a driver or courier while the driver or courier is engaged in a prearranged 17
ride or providing delivery services. 18
(b) The occupational accident insurance policy required under this section 19
must provide at least a combined single limit of $1,000,000 for each accident and 20
payment of benefits that include 21
(1) coverage for medical expenses incurred, up to at least $1,000,000, 22
for up to 104 weeks following the injury; 23
(2) coverage for total disability and partial disability, with payments 24
made for up to 104 weeks following the injury that are equal to 66 percent of the 25
driver's or courier's average weekly earnings as of the date of injury but not more than 26
the maximum weekly compensation rate calculated under AS 23.30.175(a); however, 27
if the average weekly earnings of the driver or courier is less than the minimum 28
weekly compensation rate calculated under AS 23.30.175(a), the weekly 29
compensation must be equal to 100 percent of the driver's or courier's average weekly 30
earnings; 31
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(3) accidental death insurance for the benefit of spouses, children, or 1
other dependents of a driver or courier for injuries suffered by a driver or courier that 2
result in death in an amount equal to 66 percent of the driver's or courier's average 3
weekly earnings as of the date of injury but not more than the maximum weekly 4
compensation rate calculated under AS 23.30.175(a); however, if the average weekly 5
earnings of the driver or courier is less than the minimum weekly compensation rate 6
calculated under AS 23.30.175(a), the weekly compensation must be equal to 100 7
percent of the driver's or courier's average weekly earnings multiplied by 104 weeks; 8
and 9
(4) when injuries suffered by a driver or courier result in death, an 10
amount to pay for reasonable burial expenses, not to exceed eight times the maximum 11
weekly compensation rate calculated under AS 23.30.175(a). 12
(c) A policy required under this section may provide that, regardless of the 13
number of policies involved, claims made, premiums shown on the policy, or 14
premiums paid, the limits for any coverage under the policy may not be added to the 15
limits for similar occupational accident insurance coverage provided by another 16
company to determine the limit of occupational accident insurance coverage available 17
arising from a single injury. 18
(d) A benefit provided to a driver or courier under an occupational accident 19
insurance policy required under this section must be treated as an amount payable 20
under medical payments coverage, workers' compensation law, or a disability benefit 21
for the purpose of determining the amount payable under uninsured and underinsured 22
motorists coverage provided under AS 28.20.440 and 28.20.445. 23
(e) If a claim is covered by more than one occupational accident insurance 24
policy maintained by more than one company, the insurer of the company against 25
whom a claim is filed is entitled to a contribution for the pro rata share of coverage 26
attributable to other companies. 27
(f) In this section, "average weekly earnings" means the total earnings of a 28
driver or courier received from all transportation network companies and delivery 29
network companies during the 28 days immediately preceding a covered incident, 30
divided by four. 31
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* Sec. 15. AS 28.23.070 is amended to read: 1
Sec. 28.23.070. Certificate of insurance. A [TRANSPORTATION 2
NETWORK] company shall file a written certificate of insurance with the director of 3
the division of insurance demonstrating that the [TRANSPORTATION NETWORK] 4
company has satisfied the requirements of AS 28.23.050 and 28.23.065. A [. THE] 5
certificate of insurance must state that the applicable insurance policy may not be 6
cancelled unless written notice is provided to the division of insurance at least 30 days 7
before cancellation. 8
* Sec. 16. AS 28.23.080(a) is amended to read: 9
(a) Except as provided in (b) of this section, a transportation network company 10
or delivery network company is not an employer of transportation network company 11
drivers or delivery network company couriers under AS 23.10.699, AS 23.20.520, 12
or AS 23.30.395. A transportation network company driver or delivery network 13
company courier is an independent contractor for all purposes and is not an employee 14
of the [TRANSPORTATION NETWORK] company if the [TRANSPORTATION 15
NETWORK] company 16
(1) does not unilaterally prescribe specific hours during which a driver 17
or courier shall be logged onto the digital network of the [TRANSPORTATION 18
NETWORK] company; 19
(2) does not impose restrictions on the ability of the driver or courier 20
to use the digital network of other transportation network companies or delivery 21
network companies; 22
(3) does not restrict a driver or courier from engaging in any other 23
occupation or business; and 24
(4) enters into a written agreement with the driver or courier stating 25
that the driver or courier is an independent contractor for the [TRANSPORTATION 26
NETWORK] company. 27
* Sec. 17. AS 28.23 is amended by adding a new section to read: 28
Sec. 28.23.150. Driver and courier minimum compensation. (a) A 29
transportation network company shall compensate a driver for a prearranged ride at a 30
rate at least equal to 120 percent of the state minimum wage established in 31
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AS 23.10.065. Additionally, a transportation network company shall compensate the 1
driver $0.37 for each mile driven during the prearranged ride. 2
(b) A delivery network company shall compensate a courier for delivery 3
services at a rate at least equal to 120 percent of the state minimum wage established 4
in AS 23.10.065. Additionally, a delivery network company shall compensate the 5
courier $0.37 for each mile driven while providing delivery services. 6
(c) On January 1 of each year, the per mile compensation in this section shall 7
be adjusted for inflation based on the percentage increase in the Consumer Price Index 8
for all urban consumers for urban Alaska for the previous calendar year as determined 9
by the United States Department of Labor, Bureau of Labor Statistics. 10
(d) A company may not count a gratuity paid to a driver or courier by a 11
customer toward the compensation that the company is required to pay the driver or 12
courier under this section. 13
* Sec. 18. AS 28.23.180(1) is amended to read: 14
(1) "digital network" means any online-enabled application, software, 15
website, or system offered or used by a 16
(A) transportation network company that enables the 17
prearrangement of rides with transportation network company drivers; or 18
(B) delivery network company to facilitate offers for 19
delivery services; 20
* Sec. 19. AS 28.23.180(2) is amended to read: 21
(2) "personal vehicle" means a motor vehicle that is used by a 22
[TRANSPORTATION NETWORK COMPANY] driver or courier and is owned, 23
leased, or otherwise authorized for use by the [TRANSPORTATION NETWORK 24
COMPANY] driver or courier; "personal vehicle" does not include a taxi, limousine, 25
or other commercial motor vehicle for hire; 26
* Sec. 20. AS 28.23.180 is amended by adding new paragraphs to read: 27
(7) "company" means a transportation network company or a delivery 28
network company; 29
(8) "delivery network company" means a business entity that maintains 30
a digital network used to facilitate offers for delivery services in the state; 31
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(9) "delivery network company courier" or "courier" means a person 1
who is authorized to accept and fulfill offers through the digital network of a delivery 2
network company; "delivery network company courier" or "courier" does not include 3
a person whose services require the use of a vehicle weighing more than 6,000 4
pounds; 5
(10) "delivery services" means the pickup of an item from a location in 6
the state and the delivery of that item to a location selected by the customer within 50 7
miles of the pickup location by walking or using a motor vehicle, a bicycle, a scooter, 8
public transportation, or other means of transportation and the selection, collection, or 9
purchase of items by a delivery network company courier, as well as other services 10
incident to delivery, beginning when a courier accepts an offer, continuing while the 11
courier transports the requested item to the selected location, and ending when the 12
courier completes the delivery or the delivery is otherwise terminated; "delivery 13
services" does not include assistance with residential moving services; 14
(11) "offer" means the opportunity to perform delivery services for 15
compensation that a delivery network company presents to a courier through a digital 16
network. 17
* Sec. 21. AS 28.23.050(d) is repealed. 18