02/15/2017 09:00 AM Senate FINANCE

SENATE BILL NO. 14                                                                                                            
                                                                                                                                
     "An Act relating to transportation network companies                                                                       
     and transportation network company drivers."                                                                               
                                                                                                                                
9:08:09 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon REOPENED public testimony.                                                                                   
                                                                                                                                
9:08:45 AM                                                                                                                    
                                                                                                                                
JAMES    HARRIS,   OWNER,    JUNEAU   TAXI,    JUNEAU   (via                                                                    
teleconference),  testified  against   the  legislation.  He                                                                    
remarked that  the legislation would  reduce the  wages, and                                                                    
reduce  the amount  of money  contributed to  the state.  He                                                                    
remarked that there was a  certain pool of customers in each                                                                    
community.  He remarked  that his  company  was already  not                                                                    
busy,  so adding  several drivers  to  the pool  in a  small                                                                    
customer base  would reduce the  wages across the  board. He                                                                    
shared that the  drivers would then only  make minimum wage.                                                                    
He  asserted  that  Uber  drivers   made  minimum  wage.  He                                                                    
wondered why  there was a  concern to bring a  business into                                                                    
the state  that did not pay  any money to the  state and not                                                                    
pay their  employees. There  would be  a negative  effect on                                                                    
the  cab  industry,  because  there would  not  be  as  many                                                                    
dispatchers.  He  stressed  that  the  taxi  companies  were                                                                    
required  to  have  contracts;  special  insurance  for  the                                                                    
vehicles; pay extra at the  Division of Motor Vehicles (DMV)                                                                    
for commercial  registration. He  assumed that  Uber drivers                                                                    
would not  have to purchase special  insurance, because they                                                                    
use their personal vehicle, resulting  in more state revenue                                                                    
lost. He  noted that everyone  would lose money,  except for                                                                    
Uber.  He  felt that  the  bill  would  only slow  down  the                                                                    
industry,  and  limit  the  ability  to  not  afford  better                                                                    
vehicles  and provide  better service.  He shared  that Uber                                                                    
charged customers  much more than  what they  would normally                                                                    
pay during a busy time.                                                                                                         
                                                                                                                                
Co-Chair MacKinnon requested a closing comment.                                                                                 
                                                                                                                                
Mr. Harris concluded his comments.                                                                                              
                                                                                                                                
9:14:28 AM                                                                                                                    
                                                                                                                                
SAM MOORE,  SELF, ANCHORAGE  (via teleconference),  spoke in                                                                    
favor of  SB 14. She  wanted to have more  opportunities for                                                                    
mobility.  She stated  that she  was legally  blind, so  she                                                                    
used  the  public transportation.  She  felt  that the  bill                                                                    
provided more mobility options for  people to have an easier                                                                    
access to  transportation. She felt  that a safe  ride would                                                                    
generate economic  activity. She remarked that  the bill was                                                                    
not  about taxis,  rather was  about more  mobility options.                                                                    
She  felt  that  the  bill  would  make  for  more  vibrant,                                                                    
livable, and walkable communities.                                                                                              
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
                                                                                                                                
Co-Chair MacKinnon  stressed that  the bill did  not address                                                                    
taxicabs.  She   explained  that   the  legislation   was  a                                                                    
transportation  network bill.  She stated  that the  drivers                                                                    
were  independent contractors:  they would  drive their  own                                                                    
vehicles;  use their  own phone;  no  scheduled shifts;  and                                                                    
would have no direct supervisor.                                                                                                
                                                                                                                                
9:17:10 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:17:26 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:17:29 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  noted   that  Department  of  Commerce,                                                                    
Community  and Economic  Development (DCCED),  Department of                                                                    
Law (LAW) would  be available to answer  questions about the                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
SB  14  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.