Alaska committee adopts SB 35 committee substitute as working document; debate focuses on who must carry delivery insurance

Senate Bill 35, a measure to define delivery-network couriers' status and require insurance coverage, was discussed at length March 13 by the Senate Labor and Commerce Committee. The committee adopted a committee substitute as a working document and set the bill aside to allow clarifying edits.

Sevea Bieber, staff to Chair Bjorkman, summarized the CS, which adds sections permitting group or blanket occupational accident insurance, aligns delivery network insurance requirements with existing Transportation Network Company rules, requires certificates of insurance to be filed with the director of the Division of Insurance, and makes conforming statutory changes. The CS also seeks a combined single limit of $1,000,000 per accident for group occupational accident coverage and clarifies which policy types apply when a courier is logged into a digital network.

Senator Dunbar questioned whether the company must provide coverage or whether companies could shift the cost onto drivers. Committee staff and the chair said the intent is that the company provide coverage when a courier accepts a prearranged job but that personal auto insurance should continue to apply while the courier merely has the app on. Chair Bjorkman acknowledged additional drafting would be needed to ensure the statutory language reflects that intent.

Paul Desjardins, an independent contractor who drives for Spark (Walmart), told the committee he has been unable to find insurers willing to cover his Spark work and described an accident on Feb. 4 that his personal policy would not cover; he said he supports the bill because it would require someone to take responsibility for certain coverage phases. The committee then set the bill aside for further consideration.

The committee did not vote on final language; members signaled the goal is to clarify sections on personal lines and company coverage before returning the CS for action.