Legislature(2017 - 2018)BARNES 124

03/02/2017 01:30 PM TRANSPORTATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 73 NAME STATE FERRIES: M/V TAZLINA & HUBBARD TELECONFERENCED
Scheduled but Not Heard
<Companion Bill to SB 33>
+ SB 33 NAME STATE FERRIES: M/V TAZLINA & HUBBARD TELECONFERENCED
Moved SB 33 Out of Committee
-- Public Testimony --
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 132 TRANSPORTATION NETWORK COMPANIES TELECONFERENCED
Heard & Held
-- Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                         March 2, 2017                                                                                          
                           1:40 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Adam Wool, Co-Chair                                                                                              
Representative Matt Claman                                                                                                      
Representative Harriet Drummond                                                                                                 
Representative Chuck Kopp                                                                                                       
Representative Mark Neuman                                                                                                      
Representative Colleen Sullivan-Leonard                                                                                         
Representative David Eastman (alternate)                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Louise Stutes, Co-Chair                                                                                          
Representative Gabrielle LeDoux (alternate)                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 33                                                                                                              
"An Act naming the state ferries built in Ketchikan and entering                                                                
Alaska marine highway system service on or after 2017; and                                                                      
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED SB 33 OUT OF COMMITTEE                                                                                             
                                                                                                                                
HOUSE BILL NO. 132                                                                                                              
"An Act relating to transportation network companies and                                                                        
transportation network company drivers."                                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 73                                                                                                               
"An Act naming the state ferries built in Ketchikan and entering                                                                
Alaska marine highway system service on or after 2017; and                                                                      
providing for an effective date."                                                                                               
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 33                                                                                                                   
SHORT TITLE: NAME STATE FERRIES: M/V TAZLINA & HUBBARD                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/23/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/23/17       (S)       TRA                                                                                                    
02/14/17       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
02/14/17       (S)       Heard & Held                                                                                           
02/14/17       (S)       MINUTE(TRA)                                                                                            
02/16/17       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
02/16/17       (S)       Moved SB 33 Out of Committee                                                                           
02/16/17       (S)       MINUTE(TRA)                                                                                            
02/17/17       (S)       TRA RPT 4DP                                                                                            
02/17/17       (S)       DP: STEDMAN, EGAN, BISHOP, WILSON                                                                      
02/27/17       (S)       TRANSMITTED TO (H)                                                                                     
02/27/17       (S)       VERSION: SB 33                                                                                         
03/01/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/01/17       (H)       TRA                                                                                                    
03/01/17       (H)       TRA WAIVED PUBLIC HEARING NOTICE, RULE                                                                 
                         23                                                                                                     
03/02/17       (H)       TRA AT 1:30 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 132                                                                                                                  
SHORT TITLE: TRANSPORTATION NETWORK COMPANIES                                                                                   
SPONSOR(s): WOOL                                                                                                                
                                                                                                                                
02/15/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/15/17       (H)       TRA, L&C                                                                                               
02/23/17       (H)       TRA AT 1:30 PM BARNES 124                                                                              
02/23/17       (H)       <Bill Hearing Canceled>                                                                                
02/28/17       (H)       TRA AT 1:30 PM BARNES 124                                                                              
02/28/17       (H)       Heard & Held                                                                                           
02/28/17       (H)       MINUTE(TRA)                                                                                            
03/02/17       (H)       TRA AT 1:30 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MICHAEL NEUSSL, Deputy Commissioner                                                                                             
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced SB 33, on behalf of the                                                                       
governor.                                                                                                                       
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented a proposed committee substitute                                                                
(CS) for HB 132, Version LS-0522\J, Wallace, 2/27/17, on behalf                                                                 
of Representative Wool, prime sponsor.                                                                                          
                                                                                                                                
EVAN EADS                                                                                                                       
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 132.                                                                          
                                                                                                                                
JIM BRENNAN, Attorney                                                                                                           
Anchorage Taxi Cab Permit Owners Association                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 132.                                                                       
                                                                                                                                
MICHELLE NAPPLIER                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in opposition to HB 132.                                                                       
                                                                                                                                
KATHIE WASSERMAN, Executive Director                                                                                            
Alaska Municipal League                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke in opposition to HB 132 as currently                                                               
written.                                                                                                                        
                                                                                                                                
DAVID O'MAILEY                                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 132.                                                                          
                                                                                                                                
BRETT FRAZER                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Spoke in support of HB 132.                                                                              
                                                                                                                                
JACQUELINE RANSOM                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 132.                                                                       
                                                                                                                                
AGNES FARMER                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 132.                                                                       
                                                                                                                                
KIRSTEN MYLES, Director                                                                                                         
Cabaret, Hotel, Restaurant and Retailers Association (CHARR)                                                                    
Cook Inlet                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 132.                                                                          
                                                                                                                                
RYAN MCKEE                                                                                                                      
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 132.                                                                          
                                                                                                                                
JAIME BEGUYOS                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 132.                                                                          
                                                                                                                                
JEREMY PRICE, Alaska State Director                                                                                             
Americans for Prosperity                                                                                                        
Washington, D.C.                                                                                                                
POSITION STATEMENT:  Spoke in support of HB 132.                                                                              
                                                                                                                                
JOELLE HALL, Director of Operations                                                                                             
Alaska American Federation of Labor - Congress of Industrial                                                                    
Organizations (AFL-CIO)                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 132.                                                                       
                                                                                                                                
KEVIN RUSTON                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 132.                                                                       
                                                                                                                                
JUSTIN SLATER                                                                                                                   
Palmer, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 132.                                                                          
                                                                                                                                
MITCHEL MATTHEWS, Senior Operations Manager                                                                                     
Pacific Northwest Region                                                                                                        
Uber Technologies Inc.                                                                                                          
Seattle, Washington                                                                                                             
POSITION STATEMENT:  Answered questions and gave a brief                                                                      
testimony in support during the hearing on HB 132.                                                                              
                                                                                                                                
ERICA SIMPSON                                                                                                                   
Douglas, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 132.                                                                          
                                                                                                                                
DENNIS HARRIS, Owner/Operator                                                                                                   
Custom Juneau Tours                                                                                                             
POSITION STATEMENT:  Testified in opposition to HB 132.                                                                       
                                                                                                                                
RENA DAVIS, Public Policy Manager                                                                                               
Lyft, Inc.                                                                                                                      
San Francisco, California                                                                                                       
POSITION STATEMENT:  Answered questions during the hearing on HB                                                              
132.                                                                                                                            
                                                                                                                                
JAMES HARRIS, Dispatcher/Driver                                                                                                 
Juneau Taxi & Tours                                                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke in opposition to HB 132.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:40:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ADAM  WOOL  called the  House  Transportation  Standing                                                             
Committee meeting  to order at  1:40 p.m.   Representatives Wool,                                                               
Eastman  (alternate),  Drummond,  Neuman,  Sullivan-Leonard,  and                                                               
Kopp were  present at the  call to order.   Representative Claman                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
1:41:10 PM                                                                                                                    
                                                                                                                                
        SB 33-NAME STATE FERRIES: M/V TAZLINA & HUBBARD                                                                     
                                                                                                                                
CO-CHAIR WOOL  announced that the  first order of  business would                                                               
be SENATE BILL NO. 33, "An  Act naming the state ferries built in                                                               
Ketchikan and  entering Alaska marine  highway system  service on                                                               
or after 2017; and providing for an effective date."                                                                            
                                                                                                                                
1:41:35 PM                                                                                                                    
                                                                                                                                
MICHAEL    NEUSSL,    Deputy    Commissioner,    Department    of                                                               
Transportation  &  Public  Facilities  (DOT&PF),  said  that  the                                                               
process to  develop names  for the two  new Alaska  Class Ferries                                                               
(ACFs) was  conducted over  a year and  was essentially  a middle                                                               
and  high school  essay contest.    He reported  that there  were                                                               
roughly 450 essays  submitted that were judged  by an independent                                                               
panel  that  narrowed the  entries  down  to  the  top ten.    He                                                               
continued that  the top ten were  then sent to the  Department of                                                               
Transportation  & Public  Facilities  (DOT&PF) commissioner,  the                                                               
lieutenant  governor, and  the  governor,  who then  collectively                                                               
made the  final decisions.   He  said that the  two new  ACFs are                                                               
currently under construction in Ketchikan,  Alaska.  He said that                                                               
Alaska Statute mandates that Alaska  Marine Highway System (AMHS)                                                               
vessels be named after glaciers in Alaska.                                                                                      
                                                                                                                                
1:42:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SULLIVAN-LEONARD requested a project update.                                                                     
                                                                                                                                
MR.  NEUSSL  reported that  the  Motor  Vessel (M/V)  Tazlina  is                                                               
essentially  half built.   He  elaborated that  the two  ACFs are                                                               
being built in  modules.  He said that the  first half was rolled                                                               
outside about  a month ago and  that the stern half  is currently                                                               
undergoing  construction.   He added  that the  main engines  and                                                               
generators have  been installed  and that the  car deck  is being                                                               
built.   He noted  that several  modules were  built at  the same                                                               
time so there are a few modules  ready to be welded to the larger                                                               
module.  He  said that the larger modules are  assembled in place                                                               
in the assembly hall.                                                                                                           
                                                                                                                                
CO-CHAIR WOOL asked about the completion date of the AFCs.                                                                      
                                                                                                                                
1:44:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  explained that  the latest  estimates from                                                               
the shipyard  show delivery  of the M/V  Tazlina in  January 2018                                                               
and delivery of the second vessel in January 2019.                                                                              
                                                                                                                                
REPRESENTATIVE NEUMAN  asked whether the  ACFs would be  built on                                                               
time and on budget.                                                                                                             
                                                                                                                                
MR.  NEUSSL stated  that the  two new  ACFs were  built under  an                                                               
innovative    procurement   model    called   the    construction                                                               
manager/general  contractor (CM/GC)  process.   He reported  that                                                               
the  state selected  Vigor  shipyard in  Ketchikan  as a  general                                                               
manager  and a  construction manager  for the  project.   He said                                                               
that  the next  step included  negotiating a  best price  maximum                                                               
guarantee price contract with Vigor.   He explained that the ACFs                                                               
were  all  state  funded through  appropriation  of  unrestricted                                                               
general funds (UGF).                                                                                                            
                                                                                                                                
REPRESENTATIVE NEUMAN  clarified that he  wanted to make  sure it                                                               
was known  that the ACFs  were "contract no guaranteed  no credit                                                               
price increases."                                                                                                               
                                                                                                                                
1:45:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL  opened   public  testimony  on  SB   33.    After                                                               
ascertaining  that there  was no  one who  wished to  testify, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
REPRESENTATIVE DRUMMOND  moved to report  SB 33 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no  objection, SB  33 was reported  from the                                                               
House Transportation Standing Committee.                                                                                        
                                                                                                                                
1:47:06 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:47 p.m. to 1:50 p.m.                                                                       
                                                                                                                                
            HB 132-TRANSPORTATION NETWORK COMPANIES                                                                         
                                                                                                                                
1:50:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  announced that the  final order of  business would                                                               
be  HOUSE  BILL  NO.  132, "An  Act  relating  to  transportation                                                               
network companies and transportation network company drivers."                                                                  
                                                                                                                                
1:50:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND moved  to adopt  the proposed  committee                                                               
substitute (CS) for HB 132,  Version LS-0522\J, Wallace, 2/27/17,                                                               
as a working  document.  There being no objection,  Version J was                                                               
before the committee.                                                                                                           
                                                                                                                                
1:51:06 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature, on  behalf of Representative Wool,  prime sponsor of                                                               
HB 132,  explained that  the changes proposed  to HB  132 through                                                               
Version J  would mirror the  changes made  in the other  body and                                                               
"clean up" some of the language  to ensure the original intent of                                                               
the  bill would  be  met.   She  explained that  HB  132 was  not                                                               
intended to  add any  additional cost to  the state  to regulate.                                                               
She  noted that  there was  also a  change made  that would  more                                                               
closely reflect a  policy in place for a TNC  rather than what is                                                               
in  state statute.   Ms.  Stidolph read  from the  Explanation of                                                               
Changes, included in  the committee packet which  read as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Add new  Section 2:  "AS 09.65 is  amended by  adding a                                                                    
     new  section  Sec.   09.65.350.  Immunity  for  certain                                                                    
     actions  related to  transportation network  companies.                                                                    
     (a)  The  state  or  municipality,  and  the  officers,                                                                    
     employees, and  agents of the state  or a municipality,                                                                    
     are not  liable in tort  for damages for the  injury to                                                                    
     or death of a person  or property damage resulting from                                                                    
     an  act,  omission,  or  failure  of  a  transportation                                                                    
     network   company  or   driver  to   comply  with   the                                                                    
     requirements of AS 28.23 or other law                                                                                      
                                                                                                                                
MS.  STIDOLPH said  that this  section was  added to  relieve the                                                               
burden of cost  to Alaska of having to regulate  TNCs.  She noted                                                               
that if a  TNC driver were found  to be at fault,  the case would                                                               
go to civil  court and the state has immunity  from civil action.                                                               
She said the  intention of HB 132 was for  no departments to have                                                               
to do any  active regulation or checking of insurance.   She said                                                               
that Version J would remove  the DMV position that was originally                                                               
included in the bill and carried a fiscal note.                                                                                 
                                                                                                                                
MS. STIDOLPH continued to the  next portion of the Explanation of                                                               
Changes, which read as follows [original punctuation included]:                                                                 
                                                                                                                                
     Sections  of   the  original   bill  are   one  section                                                                  
     sequentially ahead in the CS from Section 2 on.                                                                          
                                                                                                                                
     Section 6:  Page 7, Line  26, remove  original language                                                                    
     from  (i) and  add "If  the insurance  carrier for  the                                                                    
     transportation network  company makes  a payment  for a                                                                    
     claim for  physical damage to  a personal  vehicle that                                                                    
     is subject to  a lien, the insurance  carrier shall pay                                                                    
     the claim jointly to the  owner of the personal vehicle                                                                    
     and the primary lienholder  or directly to the business                                                                    
     repairing the personal vehicle"                                                                                            
                                                                                                                                
MS. STIDOLPH explained  that the original intent  of this section                                                               
was to  dictate payment terms  and not coverage  and requirements                                                               
which the old section got into  and is already covered in Section                                                               
6, subsections  (b) and  (c).   She added  that the  language was                                                               
just cleaned up to have payment terms.                                                                                          
                                                                                                                                
MS.  STIDOLPH  read the  conclusion  of  Explanation of  Changes,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Section  7:  Page 9,  Line  27,  Sec. 28.23.110  remove                                                                    
     original   (a),  (b),   and  (c)   and  add   "(a)  The                                                                    
     transportation  network company  shall  adopt a  policy                                                                    
     prohibiting  discrimination based  on destination  or a                                                                    
     class  or  status  protected under  AS  18.80.210  with                                                                    
     respect  to a  rider  or potential  rider. The  company                                                                    
     shall   inform   drivers   of   the   policy.   (b)   A                                                                    
     transportation  network  company  driver  shall  comply                                                                    
     with all  applicable laws  relating 1  to accommodation                                                                    
     of  service  animals.   (c)  A  transportation  network                                                                    
     company   may  not   impose   additional  charges   for                                                                    
     providing    services   to    riders   with    physical                                                                    
     disabilities because of those disabilities."                                                                               
                                                                                                                                
MS.  STIDIOLPH noted  that  the  change was  made  to remove  TNC                                                               
company  policy and  add  Alaska Statute  language  in regard  to                                                               
civil rights.   She reminded the committee that  the intention of                                                               
HB  132 is  to allow  TNCs  to operate  in Alaska  and that  TNCs                                                               
already operate in  49 other states.  She surmised  that not only                                                               
would  HB 132  add  convenience and  ease  of transportation  for                                                               
constituents but  could also provide  opportunity to  put revenue                                                               
into  households that  need help  in  tough fiscal  times -  like                                                               
Alaska and  many Alaskans are  currently experiencing.   She said                                                               
that for  drivers, TNC employment  is a supplemental  income with                                                               
an extremely  flexible schedule  and gives  people the  chance to                                                               
make  extra money  without jeopardizing  the home  life with  set                                                               
hours.    She alluded  that  for  passengers  HB 132  would  mean                                                               
additional  transportation   options  to  better  fit   a  modern                                                               
lifestyle.  In regard to TNCs  and local economies, she said that                                                               
more money gets spent at local  businesses.  She reported that in                                                               
California, from Lyft  alone, $170 million was added  to the 2014                                                               
California economy.   She pointed out that  TNCs would contribute                                                               
to  greater public  safety.   She said  that one  study found  90                                                               
percent of passengers felt more  likely to avoid impaired driving                                                               
because  of choosing  a ride  share option.   She  said that  she                                                               
would like  to touch on  one last  point that had  not previously                                                               
been  discussed  regarding  TNCs   and  national  savings.    She                                                               
reported that  a Journal of  American Medical  Association (JAMA)                                                               
study  conducted  on 500  TNC  riders  who used  Medicare  and/or                                                               
Medicaid  to pay  for rides  to doctors  showed a  savings of  32                                                               
percent on  the ride cost.   She  opined that that  percentage of                                                               
savings could  be very meaningful  considering that  $2.7 billion                                                               
is  spent  annually  by  Medicaid   and/or  Medicare  on  patient                                                               
transportation.   She concluded that  ride sharing is  the future                                                               
of  transportation and  Alaska should  show  that it  is open  to                                                               
innovation.                                                                                                                     
                                                                                                                                
1:56:26 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL opened public testimony on HB 132.                                                                                
                                                                                                                                
1:57:18 PM                                                                                                                    
                                                                                                                                
EVAN EADS opined that travelers  have an expectation of a certain                                                               
level of  transportation service and  that Alaska should  be able                                                               
to  provide those  services.   He  spoke in  support  of TNCs  in                                                               
relation to  public safety.   He cited a Temple  University study                                                               
from  2009-2014 that  showed a  3.6-5.6  percentage reduction  in                                                               
drinking and driving related deaths  in cities where TNCs were in                                                               
operation.   He pointed  out that other  studies have  shown that                                                               
TNCs would  likely play a larger  role in places where  there are                                                               
fewer public transportation options, such  as here in Alaska.  He                                                               
noted  that one  may  think  there are  multiple  options in  his                                                               
community of Fairbanks but in  actuality the various cabs are all                                                               
the same  company.   He surmised  that HB 132  would allow  for a                                                               
broader  support network  for businesses  and events.   He  added                                                               
that TNCs would provide essential  transportation services to the                                                               
elderly and indigent populations.                                                                                               
                                                                                                                                
2:00:20 PM                                                                                                                    
                                                                                                                                
JIM  BRENNAN,   Attorney,  Anchorage   Taxi  Cab   Permit  Owners                                                               
Association,  stated that  his first  issue  with HB  132 is  the                                                               
municipal  preemption  provision in  Section  7.   He  said  that                                                               
cities  and   towns  in   Alaska  have   traditionally  regulated                                                               
passenger  transportation   for  hire.    He   pointed  out  that                                                               
regulations are different  from city to city  because Alaska does                                                               
not lend itself  to the "one-size-fits-all approach".   He opined                                                               
that  there should  be  a somewhat  level  playing field  between                                                               
competing  TNCs  and  taxi  companies.     He  declared  that  to                                                               
implement HB 132 without any  administration or enforcement would                                                               
be a joke.  He added that  nowhere in HB 132 would TNC compliance                                                               
be assigned  to a state agency.   He opined that  TNCs would need                                                               
regulation just  like taxi companies.   He said that the  city of                                                               
Anchorage has  four employees that  deal with taxi  and limousine                                                               
("limo")  regulations.   He opined  that the  fiscal note  in the                                                               
amount of $280 thousand that  was originally included with HB 132                                                               
would  not  even  be  enough   for  a  statewide  TNC  regulatory                                                               
administration.  He said that his  final point was in relation to                                                               
a previous  comment about TNCs  adding part time jobs  to Alaska.                                                               
He stated that those part time  jobs would come at the expense of                                                               
long-time local taxi  cab drivers.  He stated that  20 percent of                                                               
TNC fares would go to  a San Francisco-based, multibillion-dollar                                                               
corporation.  He reiterated his opposition to HB 132.                                                                           
                                                                                                                                
2:03:59 PM                                                                                                                    
                                                                                                                                
MICHELLE  NAPPLIER  stated  her concurrence  with  Mr.  Brennan's                                                               
testimony.   She  reported,  as  a taxi  driver,  that taxis  get                                                               
routine mechanical checks and Alaska  cab drivers have to receive                                                               
medical  clearance  to  drive.    She  added  that  taxi  drivers                                                               
generate both  city and state  revenue through fees  for licenses                                                               
and  registrations.    She recognized  the  importance  of  being                                                               
regulated and  said that for Uber  to try to come  in unregulated                                                               
would be  unreasonable and would  not generate any city  or state                                                               
revenue.                                                                                                                        
                                                                                                                                
2:05:49 PM                                                                                                                    
                                                                                                                                
KATHIE  WASSERMAN, Executive  Director, Alaska  Municipal League,                                                               
shared her  opposition to HB  132, as currently  written, because                                                               
Section  7 would  take  away the  ability  for municipalities  to                                                               
regulate a business within its  own jurisdiction.  She stated her                                                               
belief  that to  regulate the  taxi  industry and  then bring  in                                                               
unregulated  competition would  be wrong.   She  noted that  just                                                               
like any  other business, TNCs come  with some issues as  well as                                                               
benefits  to a  community.   She  added that  if  the cities  and                                                               
boroughs in  a state don't have  the ability to fix  those issues                                                               
and are dependent  on the state and the state  doesn't budget any                                                               
money then there  would be a real problem.   She raised the issue                                                               
of  parking.   She mentioned  that Juneau,  in particular,  has a                                                               
very limited number of parking  spots available downtown and that                                                               
cabs are  regulated to only  park in designated cab  spaces while                                                               
waiting for a  fare.  She pointed out that  Uber drivers would be                                                               
able  to park  anywhere  and would  potentially  take up  parking                                                               
spots for other  individuals who may have come  downtown to shop.                                                               
She opined that  each city should be able to  decide, through its                                                               
own residents, what TNC regulations should be.                                                                                  
                                                                                                                                
2:07:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN asked  Ms. Wasserman  whether, in  talking                                                               
with city  managers, any of  the localities expressed  the desire                                                               
to have  the ability  to make  local laws  regulating TNCs  or if                                                               
they all are prohibited from doing so by state legislation.                                                                     
                                                                                                                                
MS. WASSERMAN reported that some  of the city managers she talked                                                               
to shared  stories similar  to the way  regulations would  be set                                                               
under HB 132,  where municipalities were not  allowed to regulate                                                               
at the  local level.   She  added that  many states  have changed                                                               
state laws and are now allowing local regulation.                                                                               
                                                                                                                                
REPRESENTATIVE  CLAMAN asked  Ms.  Wasserman  whether she  opined                                                               
that  contrary to  claims by  representatives of  TNCs that  they                                                               
would  not be  able  to operate  in Alaska  if  there were  local                                                               
control,   in   actuality   many  counties   and   municipalities                                                               
nationwide have  implemented local  TNC regulations and  the TNCs                                                               
are still operational in those areas.                                                                                           
                                                                                                                                
MS.  WASSERMAN  offered  her  understanding   that  some  of  the                                                               
communities she  was in  conversation with  were allowed  to have                                                               
local control of TNC regulations.                                                                                               
                                                                                                                                
2:09:42 PM                                                                                                                    
                                                                                                                                
DAVID O'MAILEY  stated that in  2015, after a year  of soliciting                                                               
Uber  to  come  to  Alaska,  he was  the  first  Uber  driver  in                                                               
Anchorage.  He added  that now he is a taxi  driver and is trying                                                               
to get Uber to return.  He  opined that Alaska needs TNCs and the                                                               
people of  Anchorage want TNCs.   He added that TNCs  would bring                                                               
needed  competition  and  innovation   to  a  broken  and  closed                                                               
industry.  He shared his understanding  that TNCs do not dump all                                                               
the  liabilities  and  responsibilities on  municipalities.    He                                                               
declared  that  people  are  sick   and  tired  of  dealing  with                                                               
monopolies.  He remarked that  TNCs would not only benefit locals                                                               
but  visitors from  villages  as  well as  from  the cruise  ship                                                               
industry.   He maintained  that Anchorage  cab drivers  want TNCs                                                               
and TNCs  would not  hurt the  cab industry.   He  suggested that                                                               
cartels run the  cab industry in Anchorage.  He  reported that he                                                               
constantly  gets asked  when Uber  and  Lyft are  coming back  to                                                               
Anchorage.   He  expressed that  the transportation  situation in                                                               
Anchorage is bad.                                                                                                               
                                                                                                                                
2:11:38 PM                                                                                                                    
                                                                                                                                
BRETT  FRAZER  opined  that  Uber belongs  in  Alaska  for  three                                                               
reasons:   first, it is  good for  consumers; second, it  is good                                                               
for  public  safety; and  third,  it  is  good  for Alaska.    He                                                               
surmised that testimony in opposition  of TNCs because of fear of                                                               
losing  cab jobs  speaks  to  the evidence  that  Uber can  offer                                                               
competitive pricing  to indigent  consumers and other  riders who                                                               
may have  a hard time  getting to  appointments.  He  shared that                                                               
when  he  was a  college  student  at  the University  of  Alaska                                                               
Anchorage  (UAA)  he  occasionally  had  to  cancel  appointments                                                               
because his car was not functioning,  and he could not afford the                                                               
expensive cab fares.   He declared that the people  who need TNCs                                                               
the  most  are individuals  who  cannot  afford  cab fares.    He                                                               
recognized  that  decreases in  drunk  driving  had already  been                                                               
discussed  and  put  on  the  record.    He  shared  that  having                                                               
personally lost  friends and acquaintances  to drunk  driving, he                                                               
opines that  any policy which  prevents that type of  damage from                                                               
occurring in a community is good.   He maintained that Uber would                                                               
be good  for Alaska and its  image.  In regard  to the discussion                                                               
about  the municipal  preemptive  clause, he  said  that he  sees                                                               
nothing in  Section 7  that would  actually insulate  TNC drivers                                                               
from civil liability  if involved in an accident.   He shared his                                                               
understanding  that auto  insurance companies  now offer  a phase                                                               
one insurance  coverage for TNC  drivers who are logged  onto the                                                               
network  but have  yet  picked up  the fare.    He surmised  that                                                               
nothing  in  HB  132  would   prevent  insurance  companies  from                                                               
providing phase  one coverage in  Alaska.  He  said that it  is a                                                               
"red herring  or a  straw man"  to suggest  TNC drivers  would be                                                               
unregulated, because  TNC drivers  would be  subject to  the same                                                               
liabilities as everyone else.                                                                                                   
                                                                                                                                
2:14:05 PM                                                                                                                    
                                                                                                                                
JACQUELINE  RANSOM urged  the committee  to vote  against HB  132                                                               
because it  would take away  the right for  city self-governance.                                                               
She noted that all the cities  in Alaska are very diverse and can                                                               
decide  locally  in  regard to  safety,  fares,  inspections,  et                                                               
cetera.   She said  that under  HB 132 Uber  would be  allowed to                                                               
operate  anywhere  in  Alaska, unregulated,  regardless  of  what                                                               
local municipalities  want.  She  surmised that HB 132  would not                                                               
give the  public the safe  guards in which  it is entitled.   She                                                               
alluded that HB  132 would allow TNCs to  bypass already existing                                                               
regulations  for cabs  in Anchorage.    She opined  that Uber  is                                                               
notorious for not following rules and  that is the reason it left                                                               
Anchorage.    She  mentioned that  Anchorage  recognizes  vehicle                                                               
cameras  are needed  for increased  safety  and already  requires                                                               
them for taxis.                                                                                                                 
                                                                                                                                
2:16:56 PM                                                                                                                    
                                                                                                                                
AGNES FARMER  asked that the  committee vote no  on HB 132.   She                                                               
opined that  the state does not  need to take away  local control                                                               
from  municipalities  to  regulate the  transportation  industry.                                                               
She added  that communities have  already voted on the  laws they                                                               
would  like to  have in  place.   She shared  that she  could not                                                               
understand why the  state would want to fund  the introduction of                                                               
TNCs  when 20-25  percent  of  the money  earned  would be  going                                                               
directly to the  Lower 48.  She explained that  as a taxi driver,                                                               
when she collects fares in Anchorage  and pays her lease fee to a                                                               
local owner,  who then pays  a local dispatcher, the  money stays                                                               
in Alaska, which  is essential during a recession.   In regard to                                                               
public safety,  she declared that she  would not want to  ride or                                                               
drive in a taxi without a camera.                                                                                               
                                                                                                                                
2:19:09 PM                                                                                                                    
                                                                                                                                
KIRSTEN MYLES,  Director, Cook  Inlet Cabaret,  Hotel, Restaurant                                                               
and Retailers  Association (CHARR), stated that  Cook Inlet CHARR                                                               
wholeheartedly supports  HB 132, which  would open up  the market                                                               
for TNCs and  ultimately improve transportation for  Alaska.  She                                                               
said  there was  a recent  Anchorage Assembly  hearing where  the                                                               
issue of increasing the number of  cabs was heard and passed, cab                                                               
owners  and  drivers  complained  that it  was  not  economically                                                               
feasible to service areas like  Eagle River and Girdwood and that                                                               
there are  "too many cabs on  the street and not  enough fares to                                                               
go around."  Conversely, she  said that consumers testified about                                                               
unanswered calls, long wait times,  excessive fares, cabs in poor                                                               
condition,  and  subpar  customer  service.   She  surmised  that                                                               
opening up  public transportation to ride  sharing programs would                                                               
take  care of  a lot  of  the aforementioned  problems and  would                                                               
allow  locals in  both Eagle  River and  Girdwood communities  to                                                               
service  their own.   She  added  that TNCs  would let  consumers                                                               
decide what kind of service to  put their money toward.  She said                                                               
that  ride sharing  is good  for public  safety.   She cited  two                                                               
separate studies in  2015 by Temple University and  Fox School of                                                               
Business  that  found  ride  sharing  programs  attributed  to  a                                                               
reduction in alcohol related homicides  by as much as 5.6 percent                                                               
annually.  She  also pointed out that after  banning ride sharing                                                               
services,  Uber and  Lyft, in  2015  the city  of Austin,  Texas,                                                               
reported a  7.5 percent increase  in driving under  the influence                                                               
(DUI)   compared   to  the   previous   year,   according  to   a                                                               
[indiscernible]  article  from 6-17-16.    She  stated that  Cook                                                               
Inlet  CHARR is  always  interested in  finding  ways to  provide                                                               
responsible service and keep patrons  safe.  She surmised that HB                                                               
132  would improve  the  potential  availability and  competitive                                                               
pricing  of transportation  services  by opening  the market  for                                                               
more  rivalry  and is  a  positive  move  that Cook  Inlet  CHARR                                                               
supports.   She  urged  the  committee to  move  HB  132 for  the                                                               
betterment of Alaska.                                                                                                           
                                                                                                                                
2:21:43 PM                                                                                                                    
                                                                                                                                
RYAN MCKEE shared  his support for HB  132.  He said  he finds it                                                               
interesting that public testimony  regarding TNCs is mainly heard                                                               
from taxi  drivers in opposition  and opposition is  rarely heard                                                               
from the customers paying for taxi  services.  He noted that most                                                               
people  testify  regarding long  wait  times,  poor service,  and                                                               
unreliable service  because those  issues are what  have impacted                                                               
people.   He commented on the  high price of taxis  and said that                                                               
from south Anchorage  to downtown is easily $20-$30 one  way.  He                                                               
pointed out that  with TNCs the cost is a  fraction of cab fares.                                                               
He added that  many times cab drivers have to  be directed to the                                                               
destination since  many do not  have onboard  navigation systems.                                                               
He  recognized that  there are  a lot  of reasons  why rideshares                                                               
should come  to Alaska  and one  is that  it is  one of  the last                                                               
states to welcome  TNCs.  He concluded that now  would be a great                                                               
time to introduce TNCs, when  the state is looking for additional                                                               
ways to raise revenue.                                                                                                          
                                                                                                                                
2:23:34 PM                                                                                                                    
                                                                                                                                
JAIME BEGUYOS pointed  out the high level of safety  for both the                                                               
rider and  driver with TNCs  because of  the use of  credit cards                                                               
over the  system.   He alluded that  TNCs are  convenient because                                                               
the vehicles can  park anywhere and are not  generally limited to                                                               
designated spots.  He added  that TNCs are affordable because the                                                               
application gives riders an option to pay later.                                                                                
                                                                                                                                
2:25:36 PM                                                                                                                    
                                                                                                                                
JEREMY PRICE,  Alaska State  Director, Americans  for Prosperity,                                                               
opined that  HB 132  is a  great piece of  legislation.   He said                                                               
that HB  132 is fundamental to  providing a better service  and a                                                               
better  product to  consumers  in  Alaska.   He  shared a  recent                                                               
personal story where he waited almost  30 minutes for a taxi from                                                               
his house  in Bay  Shore to  Ted Stevens  Anchorage International                                                               
Airport.  He  explained that based on uncertainty  the taxi would                                                               
even show, he  ended up taking his truck and  incurring five days                                                               
in  parking fees.    He reported  that  meanwhile in  Washington,                                                               
D.C., he  has been  using Uber  and finds it  to be  reliable and                                                               
friendly.   He noted  that there are  countless instances  of bad                                                               
service  from  taxis  in  Anchorage.   He  said  that  he  is  in                                                               
opposition  to Ms.  Wasserman's comments,  because he  feels that                                                               
local jurisdiction  created the taxi cartel  problem in Anchorage                                                               
by  limiting the  amount of  permits that  could be  issued.   He                                                               
opined  that HB  132,  as written,  would  keep Alaska's  various                                                               
jurisdictions from  messing up  the introduction  of TNCs  to the                                                               
state.                                                                                                                          
                                                                                                                                
2:28:20 PM                                                                                                                    
                                                                                                                                
JOELLE HALL,  Director of Operations, Alaska  American Federation                                                               
of Labor  - Congress of Industrial  Organizations (AFL-CIO), told                                                               
the committee that Alaska AFL-CIO  represents over 50,000 workers                                                               
across the  state.  She  voiced that her organization  is opposed                                                               
to HB  132 because  of the  bill's misclassification  of workers.                                                               
She  explained that  the  actions  in HB  132  would exclude  TNC                                                               
drivers  from worker's  compensation  and unemployment  insurance                                                               
(UI) as a special class of worker.   She opined that it would set                                                               
a  dangerous  precedent  because  TNC drivers  do  not  meet  the                                                               
standard definition of a true independent contractor.                                                                           
                                                                                                                                
MS. HALL  said that  even in  analyzing the  name "transportation                                                               
network  company," the  heart of  Alaska  AFL-CIO's objection  is                                                               
revealed to expose a network of  workers doing the same job, with                                                               
a significant portion of control  over the work being dictated by                                                               
a single corporate entity:  TNC  drivers do the exact same job as                                                               
100s  of  other drivers  for  the  same  company; the  TNC  tells                                                               
drivers who  to pick up;  the TNC pays  for the insurance  when a                                                               
rider is  in the  vehicle; and  all money  is collected  and goes                                                               
directly to the  TNC.  She surmised that adding  TNC drivers to a                                                               
list of  exempted workers who  fail to  meet the standards  of an                                                               
independent contractor would  be entering a slippery  slope.  She                                                               
added that the Alaska AFL-CIO  opposes the preemptive language in                                                               
HB 132.  She concluded that  since TNCs are in direct competition                                                               
to taxis, individual  communities would be best  suited to handle                                                               
the  industry and  determine the  issues of  fair competition  in                                                               
each jurisdiction.                                                                                                              
                                                                                                                                
CO-CHAIR  WOOL  inquired  whether  taxi  drivers  are  considered                                                               
employees or independent contractors.                                                                                           
                                                                                                                                
MS. HALL answered that taxi drivers are independent contractors.                                                                
                                                                                                                                
2:30:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  asked Ms. Hall to  explain the distinction                                                               
drawn  between  taxi  drivers  and TNC  drivers  in  relation  to                                                               
exemptions to worker's compensation and UI.                                                                                     
                                                                                                                                
MS. HALL  explained that  while each type  of driver  has his/her                                                               
own  vehicle,   the  issue  relates   to  command   and  control.                                                               
Furthermore,  taxi drivers  have the  ability to  decline a  ride                                                               
within  reason.    She  said   that  the  Alaska  AFL-CIO's  main                                                               
objection  is  that  the  TNC  insurance  structure  is  entirely                                                               
unfair.    She  explained  that  the  TNC  itself  pays  for  the                                                               
insurance, which is a primary cost  of doing business.  She added                                                               
that in this particular model of  work the insurance is a primary                                                               
cost of doing business.                                                                                                         
                                                                                                                                
MS. HALL stated another distinction  between TNC drivers and taxi                                                               
drivers is that at  the end of a shift taxi  drivers have all the                                                               
money in  their hands  to then  pay the vendors  used to  run the                                                               
business, such as  the dispatch company and  the medallion owner.                                                               
She added that  TNCs keep all the money and  send drivers a check                                                               
at  the  end of  the  month.   She  pointed  out  that there  was                                                               
recently a  class action law  suit filed  against a TNC  for wage                                                               
theft.  She  opined that a company  cannot systematically defraud                                                               
an entire class of people if  those people are not its employees.                                                               
She added that TNCs should not  be allowed to have control of the                                                               
wages  of   TNC  drivers  since   the  drivers   are  independent                                                               
contractors.   She surmised  that TNCs are  trying to  ride right                                                               
down  the middle  between being  an employee  and an  independent                                                               
contractor.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CLAMAN  offered  his   understanding  that  at  a                                                               
certain phase  the TNC is  paying for insurance for  its drivers.                                                               
He asked  who is  responsible for  paying for  insurance coverage                                                               
for taxi drivers.                                                                                                               
                                                                                                                                
MS.  HALL answered  that  she does  not know.    She offered  her                                                               
assumption that it would be the taxi driver.                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  asked Ms.  Hall whether  she knew  if taxi                                                               
drivers  contribute  to UI  or  if  they  are exempted  like  TNC                                                               
drivers would be under HB 132.                                                                                                  
                                                                                                                                
MS. HALL replied that she did  not know.  She reiterated that the                                                               
concern with  HB 132 is  the exemption TNC drivers  would receive                                                               
from workers  compensation and  UI.  She  shared her  belief that                                                               
TNC  drivers  do  not  meet  the  definition  of  an  independent                                                               
contractor, as  understood in  Alaska or  on the  national level.                                                               
She  concluded  that  the  only   person  a  taxi  driver  has  a                                                               
responsibility to is the medallion owner.                                                                                       
                                                                                                                                
2:35:28 PM                                                                                                                    
                                                                                                                                
KEVIN RUSTON said  that he is opposed to HB  132 because it would                                                               
throw out over  100 years of both customer  and worker protection                                                               
and would completely  abandon the disabled community.   He opined                                                               
that the  Americans with Disabilities  Act (ADA) mandates  that a                                                               
certain  amount of  responsibility falls  on both  the state  and                                                               
municipalities.   He  said that  since inception  TNCs have  been                                                               
full of nothing but empty promises.   He opined that HB 132 would                                                               
decrease    opportunities    for    transportation,    education,                                                               
entertainment,  and   would  basically  segregate   the  disabled                                                               
segment of  the population.  In  speaking to the issue  of public                                                               
safety, he advised  the committee to revisit the  research on DUI                                                               
reductions and  TNCs.   He pointed  out a  recent article  in The                                                             
Washington Post reported the initial  studies from the University                                                             
of Southern  California (USC) and  Oxford University  showing DUI                                                               
rates  declined  were  flawed.    He  voiced  that  it  is  quite                                                               
laughable to  have a budget item  expected to come at  no cost to                                                               
the state  to regulate TNCs.   Mr. Ruston said that  he could not                                                               
help  but  to be  reminded  of  the  scene  from the  movie  "The                                                               
Godfather" where  Michael Corleone  asked the corrupt  senator to                                                               
pay for his  casino license.  He concluded that  TNCs try to make                                                               
a legal  argument with the  ADA that responsibility  doesn't rest                                                               
with the TNCs.                                                                                                                  
                                                                                                                                
2:38:40 PM                                                                                                                    
                                                                                                                                
JUSTIN  SLATER  opined  that  there  is  a  taxi  cab  racket  in                                                               
Anchorage.   He added that cab  service in Anchorage is  just not                                                               
worth  the hassle.   He  shared  his experience  that ride  share                                                               
options would  make it easier to  get around in the  absence of a                                                               
vehicle or  when an individual  is impaired.   He noted  that cab                                                               
drivers  are in  such  opposition because  they  offer such  poor                                                               
service  and  know  that  with   other  options  available,  taxi                                                               
companies would  suffer.   He surmised that  if nothing  else, HB                                                               
132 would make cab companies reevaluate their customer service.                                                                 
                                                                                                                                
2:40:25 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL asked  Mr.  Matthews  from Uber  to  speak to  the                                                               
questions of whether payments all go  directly to the TNC and how                                                               
TNC drivers get paid.                                                                                                           
                                                                                                                                
2:40:50 PM                                                                                                                    
                                                                                                                                
MITCHEL  MATTHEWS, Senior  Operations Manager,  Pacific Northwest                                                               
Region, Uber Technologies Inc., explained  that Uber is a digital                                                               
network  that  connects  riders  with drivers.    He  noted  that                                                               
independent contractor  drivers enjoy the flexibility  of the TNC                                                               
model which  allows drivers to  work when  they want to  work and                                                               
however long they  want.  He pointed out that  Uber drivers could                                                               
even work for  multiple competing TNCs.  In regard  to a previous                                                               
question about Uber  drivers and pay, he explained that  it is up                                                               
to drivers to choose whether they  want to be paid daily, weekly,                                                               
or even  within hours.   He  listed off a  number of  states that                                                               
have  made   statewide  determinations  that  Uber   drivers  are                                                               
independent   contractors  for   the  purposes   of  unemployment                                                               
compensation.   He  added that  TNC drivers  being recognized  as                                                               
independent  contractors  was  further affirmed  by  the  Florida                                                               
Court of Appeals.                                                                                                               
                                                                                                                                
                                                                                                                                
MR.  MATTHEWS, in  speaking to  insurance, said  that Uber  rides                                                               
operate  in three  periods:   periods one,  two, and  three.   He                                                               
reported  that periods  two and  three have  a one-million-dollar                                                               
coverage for liability.  He said  that in period one drivers have                                                               
the flexibility  to be sitting  at home waiting  for a fare.   He                                                               
added  that  the  coverage  in period  one  matches  the  current                                                               
coverage in  Alaska, which he pointed  out is the highest  in the                                                               
nation for  minimum coverages for  property, bodily  per accident                                                               
and  per person.   He  shared Uber's  opinion that  the insurance                                                               
compromise  adopted  by  the  National  Conference  of  Insurance                                                               
Legislators (NCOIL) meets Alaska  minimum coverage.  He explained                                                               
that since  insurance coverage starts  when the  application gets                                                               
turned on, keeping the limit at  the state limit would remove any                                                               
moral hazard or risk that a  driver would turn on the application                                                               
simply  to get  better  coverage while  never  intending to  even                                                               
engage in ride sharing.                                                                                                         
                                                                                                                                
MR.  MATTHEWS  surmised that  HB  132  would create  a  statewide                                                               
solution  to  allow  for  consistent  statewide  regulations  for                                                               
drivers,  independent contractors,  and  business owners  without                                                               
having to navigate through a  patchwork of local regulations that                                                               
would  differ from  city to  city.   He  said that  HB 132  would                                                               
eliminate the worry  for drivers of being barred  from picking up                                                               
fares in a  certain location or deadheading, which  could mean an                                                               
empty return from  a possible long, one-way trip.   He added that                                                               
Uber  has  observed an  artificial  restriction  on the  earnings                                                               
opportunities  for  drivers  in  states  where  drivers  have  to                                                               
navigate  the  patchwork  of  regulations.    He  voiced  that  a                                                               
consistent framework  would enhance  access to  transportation in                                                               
rural  communities and  would  connect underserved  neighborhoods                                                               
and residents.   He said  that a consistent framework  would also                                                               
allow for  drivers to connect  with riders without the  burden of                                                               
multiple licensing  and without the patchwork  of regulations and                                                               
increased barriers to entry and opportunities to earn.                                                                          
                                                                                                                                
MR.  MATTHEWS  pointed out  that  Uber  conducts a  comprehensive                                                               
screening process done  by a third party  accredited and approved                                                               
by the National Association  of Professional Background Screeners                                                               
(NAPBS).   He said  that the screen  covers convictions  based on                                                               
social security  number (SSN)  and driving  records and  does not                                                               
allow anyone to  drive who is on the national  sex offender list,                                                               
which is maintained by the U.S.  Department of Justice.  He added                                                               
that drivers must  first provide Uber with their  full name, date                                                               
of  birth,   SSN,  a  valid   driver's  license,   valid  vehicle                                                               
registration, proof of  insurance, and a valid bank  account.  He                                                               
explained  that  Uber doesn't  believe  that  safety ends  at  an                                                               
initial   background  check,   so  the   Uber  application   logs                                                               
information for  trips which can  be used  by the rider  to alert                                                               
other people of  his/her location and estimated  time of arrival.                                                               
He concluded by sharing his excitement to bring Uber to Alaska.                                                                 
                                                                                                                                
2:45:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  said that  the committee  previously heard                                                               
from  Ms.  Wasserman that  there  are  several areas  across  the                                                               
country  that have  local rules  and  regulations regarding  TNCs                                                               
separate  from  what has  been  done  at  the  state level.    In                                                               
response  to  a  request  for  clarification,  he  rephrased  his                                                               
question  to  ask  whether  there  are  some  states  that  allow                                                               
municipalities,  cities,   and/or  counties   to  have   its  own                                                               
regulations for  TNCs that  may be different  from what  may have                                                               
been passed on the state level.                                                                                                 
                                                                                                                                
MR.  MATTHEWS explained  that  there are  some  states that  have                                                               
statewide regulations  that were  adopted at  the early  onset of                                                               
TNCs.  He  gave an example that in the  state of Washington there                                                               
is only  a statewide  insurance which  prescribes insurance  at a                                                               
set level.   He noted  that small jurisdictions have  the ability                                                               
to regulate,  which creates patchwork regulations  that restricts                                                               
a  driver's  ability to  provide  service  within a  metropolitan                                                               
area.                                                                                                                           
                                                                                                                                
REPRESENTATIVE   CLAMAN  offered   his  understanding   that,  in                                                               
Washington, the state has chosen  to establish insurance coverage                                                               
levels for  TNCs.  In addition,  the city of Seattle  has created                                                               
its  own  regulations   and  laws  that  cover   more  than  just                                                               
insurance.  He  asked Mr. Matthews if it would  be safe to assume                                                               
that  Uber  is  still  happy   operating  in  Seattle  even  with                                                               
conflicting municipal and state regulations.                                                                                    
                                                                                                                                
MR. MATTHEWS noted  that Seattle was the third  city worldwide to                                                               
launch  Uber,  and  at  the   time  state  regulations  were  not                                                               
considered.  He said that there  is currently a bill being worked                                                               
on  that   would  implement  a   state  regulation  for   all  of                                                               
Washington.   He said that there  is an inability to  provide TNC                                                               
products across a patchwork of regulations.                                                                                     
                                                                                                                                
REPRESENTATIVE CLAMAN  surmised that Mr. Matthews  had just given                                                               
a long way of saying yes,  Uber is offering rides in Seattle even                                                               
though the city has its own framework.                                                                                          
                                                                                                                                
MR. MATTHEWS  concurred.  He  elaborated that it is  only because                                                               
Seattle was the third city to launch Uber.                                                                                      
                                                                                                                                
2:49:41 PM                                                                                                                    
                                                                                                                                
ERICA  SIMPSON shared  that  she is  a  longtime travel  industry                                                               
professional.    She  opined  that  HB  132  would  promote  free                                                               
enterprise  and  expand  economic  opportunity.   She  said  that                                                               
Alaska,  Juneau   especially,  with   a  high  cost   of  living,                                                               
relatively stagnant wages,  and a chronic need  for better access                                                               
and more transportation options,  would benefit tremendously from                                                               
Uber  and Lyft.    She noted  that the  full  and part-time  jobs                                                               
created by  TNCs would help  give Juneau residents  an additional                                                               
employment  option  and supplemental  income  to  help make  ends                                                               
meet.   She  pointed out  that taxi  cab companies  are going  to                                                               
argue that  TNCs would  diminish wages.   She opined  that Juneau                                                               
taxis  are so  absorbed offering  tours to  summer visitors  that                                                               
basic services to  locals have suffered.  To back  up this claim,                                                               
she advised members to have a look  at the number of taxis at the                                                               
glaciers on any  given summer day.  She surmised  that TNCs would                                                               
offer a transportation option that  would fill a void in Juneau's                                                               
current transportation system.                                                                                                  
                                                                                                                                
MS.  SIMPSON reported  that TNCs  are  elastic and  adapt to  on-                                                               
demand need.  She said that  Uber and Lyft would provide strictly                                                               
basic  transportation during  times of  high demand.   She  noted                                                               
that one major problem in Juneau is  trying to get a cab from the                                                               
airport and  TNCs would  fill that need.   She  mentioned another                                                               
often frequent situation  in Juneau when ferries  get delayed and                                                               
end up coming  in in the middle  of the night all the  way out at                                                               
Auke Bay  ferry terminal with no  taxis in sight.   She said that                                                               
she  was curios  how many  DUI's have  happened because  of taxis                                                               
being overwhelmed  at bar close in  Juneau.  She shared  that she                                                               
has personally walked  home from downtown Juneau to  Douglas at 3                                                               
a.m., as a lone female, because she could not find a cab.                                                                       
                                                                                                                                
MS.  SIMPSON  said  that  HB  132  would  promote  accountability                                                               
because both  TNC driver and  rider are held  accountable through                                                               
the TNC's  rating system.   She opined that taxi  companies don't                                                               
offer  that level  of accountability  because they  are the  only                                                               
ones  in town.    She  surmised that  TNCs  would  make taxi  cab                                                               
companies step  up their game.   She concluded that TNCs  are far                                                               
superior  to  using  regular  taxis  because  TNCs  offer  better                                                               
service, the cars  are cleaner, and service is  timelier and more                                                               
affordable.                                                                                                                     
                                                                                                                                
2:53:24 PM                                                                                                                    
                                                                                                                                
DENNIS HARRIS,  Owner and Operator,  Custom Juneau  Tours, stated                                                               
that he  carries a full commercial  passenger transport insurance                                                               
policy.   He  noted  that insurance  coverage  for his  limousine                                                               
costs him about  $6,000 per year.  He indicated  that for the ten                                                               
years  before he  acquired  the  limousines, he  drove  a cab  in                                                               
Juneau  and  insurance  cost  him  about $3,500  per  year.    He                                                               
predicted that Uber  drivers would take flagged  trips, which are                                                               
not legal  under Uber's contract.   He  added, "They will  be off                                                               
the app,  passengers will flag  them, or their friends  will call                                                               
them for a  ride."  He opined  that at that point  a driver would                                                               
not  be covered  under  an  insurance policy.    He advised  that                                                               
unless  something is  added to  HB 132  that includes  commercial                                                               
passenger  mandatory coverage,  TNC  drivers would  find out  the                                                               
hard way that  Uber does not cover its drivers  for collision, at                                                               
any phase.                                                                                                                      
                                                                                                                                
2:55:20 PM                                                                                                                    
                                                                                                                                
MR. D.  HARRIS shared  that various groups  in Juneau  spent many                                                               
years  first passing  a commercial  passenger vehicle  ordinance,                                                               
then  refining  it.     He  alluded  that   the  ordinance  works                                                               
especially  well on  a  six-cruise  ship day  when  there are  an                                                               
additional 22,000-27,000 people  in downtown Juneau for  up to 12                                                               
hours.   He said that at  peak times Juneau usually  has: 65 taxi                                                               
cabs, about  75 tour vans  and mini buses, about  60-70 full-size                                                               
passenger  coaches, as  well  as fright  trucks  and fuel  trucks                                                               
coming through South Franklin [street].                                                                                         
                                                                                                                                
MR. D. HARRIS  reported that during this week's  City and Borough                                                               
of  Juneau Assembly  Committee  of the  Whole  work session,  the                                                               
assembly told  the city lobbyist  it would oppose HB  132, unless                                                               
cities were given the  right to opt out.  He  shared that he pays                                                               
for permits in  order to park in downtown Juneau.   He noted that                                                               
the permit  fees go toward  the operation of  the parking/loading                                                               
facilities.   He added  that the same  permitting happens  at the                                                               
Juneau International  Airport.   He opined, with  certainty, that                                                               
the airport  counts on that  fee-generated revenue.   He surmised                                                               
that  both  Anchorage and  Fairbanks,  being  state funded,  also                                                               
count on revenue from commercial  passenger fees.  He related his                                                               
understanding  that under  HB  132  no one  would  be allowed  to                                                               
charge TNCs  with the commercial  passenger fee and it  would not                                                               
be a level playing field.                                                                                                       
                                                                                                                                
MR. D. HARRIS shared that he  is also very concerned about Uber's                                                               
background checks and he finds them  to be insufficient.  He said                                                               
that  he  submitted  an  article to  the  committee  that  listed                                                               
various  deaths, assaults,  sexual harassment  incidences, and  a                                                               
number of  other problems involving  both Uber and  Lyft drivers.                                                               
He   advised  the   committee  that   unless  police   department                                                               
background  checks  are  required,  there   would  be  a  lot  of                                                               
problems.    He  surmised  that   HB  132  would  not  allow  any                                                               
opportunity  for the  state to  make  regulations regarding  TNCs                                                               
and, without the  ability to regulate, the state  would be giving                                                               
carte blanche  to an  outside corporation that  is looking  to be                                                               
exempt from everything.  He noted  that 25 percent of TNC revenue                                                               
would  automatically   leave  the  state  because   that  is  the                                                               
percentage Uber charges its drivers for  a dispatch fee.  He said                                                               
that  Uber is  currently using  $13 billion  in investor  venture                                                               
capital  funds  to  underprice  the market.    He  cautioned  the                                                               
committee that the underpricing is  intended to run cab companies                                                               
out of  business and  since there would  be no  regulations, TNCs                                                               
would be allowed to price fares at whatever they wanted.                                                                        
                                                                                                                                
MR. D.  HARRIS opined that if  the committee is going  to pass HB                                                               
132, then it  should amend the bill to include  an opt out option                                                               
for cities.   He added that the language in  HB 132 pertaining to                                                               
the   handicap  and   insurance  requirements   should  also   be                                                               
tightened.  He said  that when he drove a taxi,  he took pride in                                                               
having the  cleanest and nicest taxi  in town.  He  added that he                                                               
always paid  his city  sales tax  every time  he took  a personal                                                               
call.                                                                                                                           
                                                                                                                                
3:00:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL mentioned  the limited cab situation  at the Juneau                                                               
airport.   He  asked  whether the  number of  cabs  in Juneau  is                                                               
limited in any way.                                                                                                             
                                                                                                                                
MR. D. HARRIS answered no.   He explained that the problem at the                                                               
Juneau airport is due to  Alaska Airlines, Inc., clustering plane                                                               
landings in  a cost saving  measure for paying cargo  crew wages.                                                               
He added that the plane  landings typically get clustered to into                                                               
sets of three  in one hour, with multiple sets  in any given day.                                                               
He declared that Juneau taxis have a priority for local fares.                                                                  
                                                                                                                                
REPRESENTATIVE CLAMAN  asked whether Mr.  D. Harris owns  his own                                                               
taxis.                                                                                                                          
                                                                                                                                
MR. D. HARRIS responded that he did but he no longer does.                                                                      
                                                                                                                                
REPRESENTATIVE CLAMAN  inquired who  paid the insurance  when Mr.                                                               
D. Harris  owned the taxis  and whether  he had other  drivers or                                                               
just himself.                                                                                                                   
                                                                                                                                
MR.  D.  HARRIS  answered  that  he was  the  only  driver.    He                                                               
recounted that  it is  always the  taxi driver  who pays  for the                                                               
insurance.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  CLAMAN  asked  about  the policy  limits  Mr.  D.                                                               
Harris  carried  and whether  or  not  those were  a  requirement                                                               
according to local regulation.                                                                                                  
                                                                                                                                
MR. D.  HARRIS explained  that in Juneau  there are  two separate                                                               
limit  requirements:    first, the  city  requires  $500,000  and                                                               
$50,000, liability  and property;  then the United  States Forest                                                               
Service  (USFS)  requires  a   higher  liability  for  passengers                                                               
exiting  the vehicle.   He  noted  that he  typically carried  $1                                                               
million-dollar coverage.                                                                                                        
                                                                                                                                
REPRESENTATIVE CLAMAN  offered his understanding  that additional                                                               
liability coverage  would be  separate from  collision liability.                                                               
He asked Mr. D. Harris  whether regulations in Anchorage would be                                                               
a function of local regulation.                                                                                                 
                                                                                                                                
MR. D. HARRIS confirmed both of Representative Claman's points.                                                                 
                                                                                                                                
REPRESENTATIVE CLAMAN asked whether  taxi owners pay unemployment                                                               
insurance coverage for their drivers.                                                                                           
                                                                                                                                
MR.  D.  HARRIS answered  no.    He  explained that  drivers  are                                                               
independent  contractors.   He noted  that a  driver may  lease a                                                               
taxi from a dispatch company or another driver.                                                                                 
                                                                                                                                
3:04:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL  pointed out  conflicting  testimony  from Mr.  D.                                                               
Harris  and  Ms. Davis's  previous  testimony  [during the  House                                                               
Transportation Standing Committee's (2/28/17)  hearing on HB 132]                                                               
regarding  the  effect  the  introduction of  TNCs  have  on  cab                                                               
companies in the area and asked Ms. Davis to speak to that.                                                                     
                                                                                                                                
3:04:54 PM                                                                                                                    
                                                                                                                                
RENA DAVIS, Public  Policy Manager, Lyft, Inc., said  that in her                                                               
previous testimony  she had cited  an instance where Lyft,  and a                                                               
competing TNC, and three cab  companies launched at the same time                                                               
into  a new  market.   She  reported results  showed  it was  the                                                               
highest year  ever for the  cab companies.   She opined  that TNC                                                               
introduction to a market does not  impact the flow of business to                                                               
other forms of transportation.                                                                                                  
                                                                                                                                
CO-CHAIR  WOOL asked  Mr. Matthews  to comment  on the  status of                                                               
taxis in the Seattle area since the introduction of TNCs.                                                                       
                                                                                                                                
MR. MATTHEWS explained that there  are still taxis in Seattle and                                                               
there are  even taxis  on the  Uber application.   He  added that                                                               
Seattle launched more medallions to  better serve the market once                                                               
TNCs were introduced.                                                                                                           
                                                                                                                                
3:06:04 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 3:06 p.m.                                                                                 
                                                                                                                                
3:06:46 PM                                                                                                                    
                                                                                                                                
JAMES HARRIS, Dispatcher/Driver, Juneau  Taxi & Tours, recognized                                                               
that  there  are reports  of  cab  companies prospering,  but  he                                                               
pointed out that in several  instances, such as in San Francisco,                                                               
cab companies have declared bankruptcy.   He stated that taxis in                                                               
Juneau do  try to  accommodate people's  arrival to  the airport,                                                               
but it is difficult with the  way the arrivals are clustered.  In                                                               
regard to being  implemented statewide, he said he  saw no reason                                                               
other than for  "bottom lines."  He shared that  he used to drive                                                               
cab in Anchorage  and knew of instances where  cabs dropped fares                                                               
off in  Palmer and even Valdez  during the oil spill.   He stated                                                               
that  it  is   all  about  the  origin  of  the   fare,  not  the                                                               
destination.   He  concurred with  Mr. D.  Harris that  phase one                                                               
insurance coverage for TNCs needs to  be increased.  He said that                                                               
drivers would  take trips  when not on  the application  and when                                                               
friends call, as well as taking  flagged trips, all the while not                                                               
being insured.  He pointed out  that a vehicle with six people in                                                               
it and  only $100,000 in  coverage would  not suffice.   He noted                                                               
that there  have been  several cases  were pedestrians  have been                                                               
struck and  killed by  a TNC  driver without  people in  the car,                                                               
with the application  open but not on a trip,  and not covered by                                                               
insurance.  He mentioned that  although Lyft has a zero-tolerance                                                               
policy for  drugs and alcohol, it  does not test for  them unless                                                               
told it must.                                                                                                                   
                                                                                                                                
CO-CHAIR WOOL inquired how the  local taxi companies test drivers                                                               
for drugs and alcohol.                                                                                                          
                                                                                                                                
MR.  J. HARRIS  answered that  currently there  are no  substance                                                               
test requirements.   He noted  that he  has been working  for the                                                               
past year  in trying  to implement  substance testing  for Juneau                                                               
taxi drivers.  He said that  just like Uber drivers, taxi drivers                                                               
can sit home and wait for  fares using a computer dispatch system                                                               
- so that concept is nothing  new.  He rehashed that everyone who                                                               
has  spoken  against Uber  and  Lyft  has  said the  same  thing:                                                               
cities  need to  be able  to decide  individual regulations.   He                                                               
said that  Anchorage drivers already  adhere to drug  testing and                                                               
so, too, should  TNC drivers.  He pointed out  that TNCs were not                                                               
kicked  out of  Austin,  Texas,  but instead  left  on their  own                                                               
accord to avoid strict regulations.   He shared his understanding                                                               
that most  cities do  regulate TNCs.   He  noted that  only eight                                                               
states  were previously  mentioned as  having statewide  openings                                                               
for Uber and Lyft.  He pointed out  that there is such a thing as                                                               
buyer's remorse.   He  said that TNCs  are fighting  with various                                                               
states   and  local   governments   because  they   want  to   be                                                               
unregulated.  He  declared that if he can abide  by the rules and                                                               
run a  small operation, a billion-dollar  corporation should have                                                               
to as well.  He recognized that  a lot of people want Uber and it                                                               
doesn't offend  him, but what  does offend  him is being  told he                                                               
has to  do one thing  while his  competition would be  allowed to                                                               
come in and do whatever it wants.                                                                                               
                                                                                                                                
                                                                                                                                
CO-CHAIR WOOL announced that HB 132 was held over with public                                                                   
testimony open.                                                                                                                 
                                                                                                                                
3:13:58 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Transportation Standing Committee meeting was adjourned at 3:14                                                                 
p.m.                                                                                                                            

Document Name Date/Time Subjects
HB132 Supporting Document - Alaska Chamber Letter 3.1.17.pdf HTRA 3/2/2017 1:30:00 PM
HB 132
HB132 Supporting Documents - Letters of Support.pdf HTRA 3/2/2017 1:30:00 PM
HB 132
HB132 Supporting Document - NAMIC Letter 2.27.17.pdf HTRA 3/2/2017 1:30:00 PM
HB 132
HB132 Opposing Documents - Brennan Heideman 2.21.17.pdf HTRA 3/2/2017 1:30:00 PM
HB 132
HB132 Opposing Documents - Juneau Taxi Letter 2.23.17.pdf HTRA 3/2/2017 1:30:00 PM
HB 132
HB132 Supporting Document - Stephens Letter 3.1.17.pdf HTRA 3/2/2017 1:30:00 PM
HB 132
SB033 Fiscal Note DOT-MVO 2.8.17.pdf HTRA 3/2/2017 1:30:00 PM
SB 33
SB033 Supporting Documents - Administration Press Releases, Student Essays 2.8.17.pdf HTRA 3/2/2017 1:30:00 PM
SB 33
SB033 ver A 2.8.17.pdf HTRA 3/2/2017 1:30:00 PM
SB 33
SB033 Transmittal Letter 2.8.17.pdf HTRA 3/2/2017 1:30:00 PM
SB 33
CS for HB132 ver J Work Draft.pdf HTRA 3/2/2017 1:30:00 PM
HB 132
CS for HB132 ver J Work Draft.pdf HTRA 3/2/2017 1:30:00 PM
HB 132
CSHB132 (TRA) ver J Explanation of Changes.pdf HTRA 3/2/2017 1:30:00 PM
HB 132