Legislature(2017 - 2018)BUTROVICH 205

04/10/2018 05:00 PM House RULES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Location Change --
+ SB 14 TRANSPORTATION NETWORK COMPANIES TELECONFERENCED
Moved HCS CSSB 14(RLS) Out of Committee
+= SB 63 REGULATION OF SMOKING TELECONFERENCED
Moved HCS CSSB 63(RLS) Out of Committee
**Streamed live on AKL.tv**
            SB  14-TRANSPORTATION NETWORK COMPANIES                                                                         
                                                                                                                                
5:16:12 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX announced that the  first order of business would be                                                               
CS  FOR  SENATE  BILL  NO.   14(FIN)  am,  "An  Act  relating  to                                                               
transportation  network  companies   and  transportation  network                                                               
company drivers; and  providing for an effective  date."  [Before                                                               
the committee was HCS CSSB 14(L&C).]                                                                                            
                                                                                                                                
5:16:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN   moved  to   adopt  the   proposed  House                                                               
committee  substitute (HCS)  for  CSSB  14, Version  30-LS0250\P,                                                               
Wallace, 4/4/18, as a working document.                                                                                         
                                                                                                                                
REPRESENTATIVE EASTMAN objected.                                                                                                
                                                                                                                                
REPRESENTATIVE KITO objected.                                                                                                   
                                                                                                                                
5:16:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  spoke to  his  objection.   He  said  he                                                               
thought  "the bill  accomplished what  I wanted  it to  last year                                                               
when we passed it" and he does not want to change it.                                                                           
                                                                                                                                
5:16:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO spoke  to his objection.  He said  he had not                                                               
heard about the proposed change  until yesterday and had not seen                                                               
Version  P  until  today.   He  echoed  Representative  Eastman's                                                               
appreciation of  the work  that had  been done  on the  bill last                                                               
year [in  the House Labor  and Commerce Standing  Committee] when                                                               
the  issue  of sales  tax  applicability  had  been vetted.    He                                                               
indicated that  the issue is  whether or not the  legislature may                                                               
need to provide more provisions  for municipalities to be able to                                                               
implement  or collect  sales tax  through transportation  network                                                               
companies (TNCs).  He expressed  concern that this topic is being                                                               
brought  up in  the last  week  of legislative  session when  the                                                               
issue could have  been discussed over the last three  months.  He                                                               
further  expressed  concern that  there  would  be little  public                                                               
involvement regarding the change  proposed [under Version P], and                                                               
he  opined this  change should  go through  the full  legislative                                                               
process.                                                                                                                        
                                                                                                                                
5:18:06 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Claman,  Stutes,                                                               
Chenault, Reinbold,  and LeDoux voted  in favor of the  motion to                                                               
adopt  the  proposed  HCS  for   CSSB  14,  Version  30-LS0250\P,                                                               
Wallace,  4/4/18, as  a working  document.   Representatives Kito                                                               
and  Eastman voted  against it.   Therefore,  by a  vote of  5-2,                                                               
Version P was before the committee as a working document.                                                                       
                                                                                                                                
5:18:50 PM                                                                                                                    
                                                                                                                                
COURTNEY ENRIGHT, Staff,  Representative Gabrielle LeDoux, Alaska                                                               
State Legislature, explained the  change proposed under Version P                                                               
is a technical  one that would allow  [municipalities to require]                                                               
TNCs to  collect [and  pay] a  municipal sales  tax on  behalf of                                                               
their drivers.                                                                                                                  
                                                                                                                                
5:19:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  requested the committee hear  testimony from                                                               
representatives of TNCs.                                                                                                        
                                                                                                                                
CHAIR  LEDOUX informed  Representative  Kito  that the  committee                                                               
would not be hearing invited testimony.                                                                                         
                                                                                                                                
5:19:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT asked  if  municipalities  in Juneau  or                                                               
other places in the state collect sales tax on cab fares.                                                                       
                                                                                                                                
5:19:56 PM                                                                                                                    
                                                                                                                                
MS. ENRIGHT offered her understanding that is correct.                                                                          
                                                                                                                                
5:20:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  expressed concern about making  the proposed                                                               
change  without hearing  from people  on the  record saying  that                                                               
"this is something that they really want."                                                                                      
                                                                                                                                
CHAIR LEDOUX  indicated there  are two  letters in  the committee                                                               
packet -  one from  the City  & Borough of  Juneau (CBJ)  and one                                                               
from the Alaska  Municipal League - "supporting this  bill in its                                                               
current form."                                                                                                                  
                                                                                                                                
REPRESENTATIVE KITO  noted that as  chair of the House  Labor and                                                               
Commerce  Standing Committee,  he  provides  the opportunity  for                                                               
invited testimony,  and he requested the  opportunity be provided                                                               
by the House Rules Standing Committee.                                                                                          
                                                                                                                                
CHAIR LEDOUX  reiterated there would  be no invited  testimony on                                                               
SB 14.                                                                                                                          
                                                                                                                                
REPRESENTATIVE KITO asked for public testimony to be offered.                                                                   
                                                                                                                                
CHAIR LEDOUX responded there would be no public testimony today.                                                                
                                                                                                                                
REPRESENTATIVE  KITO   posited  therefore  that  there   was  not                                                               
adequate feedback to support [Version P].                                                                                       
                                                                                                                                
5:21:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN asked if Version  P would affect the types                                                               
of taxes that  could be collected.  He  offered his understanding                                                               
that currently  the only  type of situation  that would  create a                                                               
tax is  when a fare originates  within a municipality.   He asked                                                               
if that would remain the same under Version P.                                                                                  
                                                                                                                                
MS.  ENRIGHT answered  that she  does  not know  what is  allowed                                                               
currently in  terms of  generating taxes;  however, she  said she                                                               
does  know  that  "nothing  in this  bill  changes  the  existing                                                               
requirements."                                                                                                                  
                                                                                                                                
REPRESENTATIVE  KITO  acknowledged  that  Juneau is  one  of  the                                                               
communities  he represents,  and  he  said he  had  not seen  the                                                               
aforementioned  letter from  CBJ  until  receiving the  committee                                                               
packet.   He stated for the  record that CBJ did  not contact him                                                               
prior to the meeting to discuss the issue with him.                                                                             
                                                                                                                                
5:23:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   EASTMAN   expressed   that  his   district   had                                                               
significant transportation  issues and  was hopeful  that passage                                                               
of the  proposed legislation  would "permit  people to  travel in                                                               
ways that they otherwise wouldn't be  able to."  He said he would                                                               
be opposing [Version  P] because it would only  serve to decrease                                                               
transportation opportunities for his constituents.                                                                              
                                                                                                                                
5:23:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  moved to report  HCS CSSB 14,  Version 30-                                                               
LS0250\P,  Wallace,  4/4/18,  out of  committee  with  individual                                                               
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
REPRESENTATIVE KITO objected.                                                                                                   
                                                                                                                                
5:23:57 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives  Reinbold, Claman,                                                               
Stutes,  Chenault, and  LeDoux voted  in favor  of the  motion to                                                               
report HCS CSSB 14, Version  30-LS0250\P, Wallace, 4/4/18, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   Representatives Kito  and Eastman  voted against                                                               
it.   Therefore, HCS CSSB 64(RLS)  was reported out of  the House                                                               
Rules Standing Committee by a vote of 5-2.                                                                                      

Document Name Date/Time Subjects
HCS SB 14 Version P.pdf HRLS 4/10/2018 5:00:00 PM
SB 14
HCS SB14 Explanation of Changes.pdf HRLS 4/10/2018 5:00:00 PM
SB 14
HCS SB 14 Letter of Support - Alaska Municipal League.pdf HRLS 4/10/2018 5:00:00 PM
SB 14
HCS SB 14 Letter of Support - City Borough of Juneau.pdf HRLS 4/10/2018 5:00:00 PM
SB 14
HCS SB 63 Version L.pdf HRLS 4/10/2018 5:00:00 PM
SB 63
HCS SB63 Explanation of Changes.pdf HRLS 4/10/2018 5:00:00 PM
SB 63
HCS SB 63 Amendments.pdf HRLS 4/10/2018 5:00:00 PM
SB 63