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Panel debates insurance mandates for ride‑share and delivery drivers as SB 35 is set aside for revision
Summary
SB 35 would require transportation and delivery network companies to provide specified insurance coverages and occupational accident policies. Sponsors and industry witnesses discussed aligning the bill with model law, limits for uninsured/underinsured motorist coverage and gaps during 'logged on' periods; witnesses warned a $1,000,000 UIM mandate could raise fares significantly. The committee set the bill aside for further drafting and consultation.
Senator Jesse Bjorkman and his staff presented SB 35 to the House Labor and Commerce Committee, describing a proposal to require delivery network companies to provide insurance coverage and to authorize group occupational accident insurance for drivers and couriers.
Sevea Bieber, staff to Senator Bjorkman, walked members through the bill’s sections, explaining the bill defines delivery network companies and couriers, adds couriers to statutes on proof of insurance and insurer payments for physical damage, and would require a combined single limit of $1,000,000 for automobile liability and minimum uninsured/underinsured motorist (UIM) coverage for DNC activity. Bieber also described adding DNC couriers to the list of individuals not covered by the Alaska Workers’ Compensation Act while providing delivery services and detailed disclosure and filing requirements for companies.
Brad Nail, testifying for Uber, said the company supports an occupational accident product and consistent independent‑contractor language, but recommended aligning the bill to the NCOIL model on coverage during the ‘‘logged on’’ period and recommended reconsidering the $1,000,000 UIM threshold. "We also recommend conforming that to the NCOIL model," Nail said, and urged the committee to preserve the ability for personal auto insurers to exclude coverage when appropriate.
Francisco Avalos, senior public policy manager at Lyft, opposed the bill as drafted, saying the $1,000,000 UIM mandate and prohibition on waivers for DNCs would raise insurance costs and likely increase fares and reduce driver earnings in Alaska. Avalos said internal Lyft analysis showed the UIM mandate could increase per‑ride insurance costs by more than 50 percent.
Deborah Herron of Walmart expressed concern the amended bill had diverged from the existing TNC model and could impose disproportionate costs on delivery network companies and drivers that support online pickup and delivery services.
Committee members asked for data on how often gaps in coverage actually leave drivers or passengers uncompensated and requested actuarial estimates of fare impacts. Heather Carpenter, director of the Division of Insurance, said the occupational accident product would be a new offering and the division could process filings under existing workflows.
Members discussed tailoring the bill so it does not unintentionally sweep in small rural couriers or non‑app service providers; sponsors said statutory cross‑references to taxi statutes and careful drafting could avoid that outcome. After testimony and questioning, the committee set SB 35 aside to continue work on the sectional and insurance limits, with plans to consult the Division of Insurance and stakeholders before advancing the bill.
