Legislature(2017 - 2018)BARNES 124
05/12/2017 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB132 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 132 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
May 12, 2017
3:28 p.m.
MEMBERS PRESENT
Representative Sam Kito, Chair
Representative Adam Wool, Vice Chair
Representative Andy Josephson
Representative Louise Stutes
Representative Chris Birch
Representative Colleen Sullivan-Leonard
MEMBERS ABSENT
Representative Gary Knopp
Representative Mike Chenault (alternate)
Representative Bryce Edgmon (alternate)
COMMITTEE CALENDAR
HOUSE BILL NO. 132
"An Act relating to transportation network companies and
transportation network company drivers."
- MOVED CSHB 132(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 132
SHORT TITLE: TRANSPORTATION NETWORK COMPANIES
SPONSOR(s): REPRESENTATIVE(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
03/02/17 (H) Heard & Held
03/02/17 (H) MINUTE(TRA)
03/06/17 (H) L&C AT 3:15 PM BARNES 124
03/06/17 (H) Scheduled but Not Heard
03/07/17 (H) TRA AT 1:30 PM BARNES 124
03/07/17 (H) Moved CSHB 132(TRA) Out of Committee
03/07/17 (H) MINUTE(TRA)
03/08/17 (H) TRA RPT CS(TRA) 1DP 4NR 2AM
03/08/17 (H) DP: WOOL
03/08/17 (H) NR: SULLIVAN-LEONARD, NEUMAN, DRUMMOND,
STUTES
03/08/17 (H) AM: CLAMAN, KOPP
03/10/17 (H) L&C AT 3:15 PM BARNES 124
03/10/17 (H) Heard & Held
03/10/17 (H) MINUTE(L&C)
03/17/17 (H) L&C AT 3:15 PM CAPITOL 106
03/17/17 (H) Heard & Held
03/17/17 (H) MINUTE(L&C)
03/18/17 (H) L&C AT 12:30 AM CAPITOL 106
03/18/17 (H) -- Continued from 3/17/17 --
03/22/17 (H) L&C AT 3:15 PM BARNES 124
03/22/17 (H) Heard & Held
03/22/17 (H) MINUTE(L&C)
03/24/17 (H) L&C AT 3:15 PM BARNES 124
03/24/17 (H) Heard & Held
03/24/17 (H) MINUTE(L&C)
05/12/17 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
LAURA STIDOLPH, Staff
Representative Adam Wool
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the changes that would be made
under the proposed CS to HB 132, Version T, on behalf of
Representative Wool, prime sponsor.
ACTION NARRATIVE
3:28:26 PM
CHAIR SAM KITO called the House Labor and Commerce Standing
Committee meeting to order at 3:28 p.m. Representatives
Sullivan-Leonard, Stutes, Birch, Josephson, Wool, and Kito were
present at the call to order.
HB 132-TRANSPORTATION NETWORK COMPANIES
3:29:08 PM
CHAIR KITO announced that the only order of business would be
HOUSE BILL NO. 132, "An Act relating to transportation network
companies and transportation network company drivers." [Before
the committee, adopted as a working document on 3/22/17, was the
proposed committee substitute (CS) for HB 132, Version 30-
LS0522\R.1, Wallace, 3/21/17.]
3:29:24 PM
REPRESENTATIVE WOOL moved to adopt the proposed committee
substitute (CS) for HB 132, Version 30-LS0522\T, Wallace,
5/8/17, as a working document.
3:29:36 PM
CHAIR KITO objected for the purpose of discussion.
3:29:54 PM
The committee took a brief at-ease at 3:30 p.m.
3:30:41 PM
LAURA STIDOLPH, Staff, Representative Adam Wool, Alaska State
Legislature, explained the changes that would be made under the
proposed CS to HB 132, Version T, on behalf of Representative
Wool, prime sponsor. She brought attention to a handout in the
committee packet, labeled "Work Draft for CS for HB 132 ver R to
Work Draft for CS for HB 132 ver T Explanation of Changes,"
which read as follows [original punctuation provided, with some
formatting changes]:
This work draft CS incorporates changes made to the
companion legislation which was passed by the other
body. There was also some clean up and clarification
to the amendments that passed in the other body.
Additionally, a few other changes have been made which
will be explained later.
Section 6:
Page 5, Line 7, remove "international airport
regulations and arrangements"
Page 5, Line 10, remove "Except as provided in (b) of
this section,"
These two changes were made to simply move this
language to a later part of Section 6.
Page 9, Line 6, add
"(b) This section does not apply to AS 23.20 if the
transportation network company is owned or operated by
the state, a municipality, a federally recognized
tribe, or an entity that is exempt from federal
taxation under 26 U.S.C. 501(c)(3) (Internal Revenue
Code).
This change was by request of the US Department of
Labor, Employment and Training Administration, to the
Alaska Department of Labor and Workforce Development
for conformity to Federal unemployment compensation
(UC) law. In order to preserve the tax credits now
available to Alaska employers, this provision needed
to be added to make it clear that the state
unemployment tax must be paid for all employees of
state and local governments, Indian tribes, and non-
profit organization. Any exclusion from the definition
of employment must not apply to these entities.
Pages 10, Line 1, add
"(b) A transportation network company may not allow a
driver to accept trip requests through its digital
network if the driver
1) has, in the past three years,
(A) been convicted of or forfeited bail for
a third or subsequent moving traffic violation;
B) been convicted of
(i) driving while license canceled,
suspended, revoked, or in violation of a limitation
under AS 28.15.291;
(ii) failure to stop at the direction
of a peace officer under AS 28.35.182;
(iii) reckless or negligent driving
under AS.28.35.400 or 28.35.41; or
(iv) a law or ordinance of another
jurisdiction having similar elements to an offense
listed in (i) (iii) of this subparagraph;
(2) has, in the past seven years, been convicted
of
(A) any offense that is an unclassified,
class A, or class B felony in this or another
jurisdiction; or
(B) a misdemeanor involving
(i) a crime under AS 28.33.030, AS
28.35.030, or 28.35.032
(ii) a crime under AS 28.35.050 or
28.35.060
(iii) a crime against a person under AS
11.41; or
(iv) a law or ordinance of another
jurisdiction having similar elements to an offense
listed in (i) (iii) of this subparagraph;
(3) is listed on the United States Department of
Justice National Sex Offender Public Website; or
(4) is under 21 years of age.
(c) A transportation network company driver may not
(1) provide a prearranged ride unless the
transportation network company rider has been matched
to the driver through the digital network of the
transportation network company;
(2) solicit a rider or accept a street hail
request for a ride; or
(3) solicit or accept cash payments for a fare
from a rider"
This addition was made to clean up language in the
three year driving history look-back, and seven year
criminal history look-back that was in the companion
version passed by the other body. If a person has
committed a violent crime, either felony or
misdemeanor, in the past seven years they may not
drive for a [transportation network company] (TNC). A
conviction of any unclassified, class A, or class B
felony in the past seven year will also disqualify a
person as a driver. The new language makes it clear
that a driver on the US DOJ National Sex Offender list
may not drive for a TNC. Also, if a person has been
convicted of driving under the influence while
operating a vehicle or watercraft in the past seven
years they may not drive for a TNC.
A driver must be 21 years of age. This change was made
due to state statute regarding alcohol and marijuana,
so if either substance was left in the car after a
rider had disembarked the driver wouldn't be breaking
state law by being in possession.
The final language in this subsection was added to
make clear that TNC drivers may only accept rides from
the TNC platform, that they do not operate like other
for-hire vehicles by soliciting riders or accepting
street hails, and that the payment is through a
cashless system. Payment in this section does not
include tips, which can be cash.
Page 11, line 3, add
"Sec. 28.23.105 Transportation network company
vehicles. (a) Before a transportation network company
allows an individual to accept trip requests through
its digital network and before a personal vehicle may
be used to provide transportation network company
services, the transportation network company shall
conduct, or confirm satisfactory completion of, a
safety inspection of the individual's personal
vehicle. The safety inspection required under this
subsection must include an inspection of the following
components of the personal vehicle:
(1) foot brakes;
(2) parking brakes;
(3) steering mechanism;
(4) windshield;
(5) rear window and other glass;
(6) windshield wipers;
(7) headlights;
(8) taillights;
(9) brake lights;
(10) front seat adjustment mechanism;
(11) doors;
(12) turn signal lights;
(13) horn;
(14) speedometer;
(15) bumpers;
(16) muffler and exhaust system;
(17) tires, including tread depth;
(18) interior and exterior mirrors;
(19) safety belts
(b) A motor vehicle that is used by a transportation
network company driver for transportation network
company purposes may not be more than 12 years of age.
This language, which is standard terms of services for
major companies like Uber and Lyft, was added to
statute so that every TNC operating in Alaska will be
held to a high standard for vehicle safety and
quality.
Page 12, Line 16, add "Sec 28.23.130. International
airports. The Department of Transportation and Public
Facilities may, under AS 02.15, enter into a contract,
lease, or other arrangement with a transportation
network company for use of an international airport
owned or operated by the state. A contract, lease, or
arrangement under AS 02.15 must be consistent with
this chapter."
This change was made in a different version of the
bill but was moved to its own subsection at the end of
Section 6. As explained previously, this change was
made in a committee substitute work draft in this
committee after the bill sponsor had been approached
by DOT about inserting language into statute regarding
international airports.
Section 8 Page 14, Lines 10-13, add
"(c) Notwithstanding AS 28.01.010 or (a) of this
section, a municipality may by ordinance ratified by
the voters in a regular municipal election prohibit
transportation network companies from conducting
activities under AS 28.23 within the municipality."
This language was added to add a local opt-out option
by a decision of the people as to whether or not they
want transportation network companies operating in
their municipality.
Add Section 9
Page 14, Line 20 add
"This Act takes effect immediately under AS 01.10.070
(c)."
Conforms this bill to the companion bill which passed
in the other body giving it an immediate effective
date.
MS. STIDOLPH, in response to Representative Stutes, clarified
that local municipalities would need an ordinance to opt out,
but local authorities, such as a borough assembly, would not
have that authority; it would be left to a vote of the people.
3:37:04 PM
CHAIR KITO removed his objection to the motion to adopt the
proposed CS for HB 132, Version 30-LS0522\T, Wallace, 5/8/17, as
a working document. There being no further objection, Version T
was before the committee.
3:37:25 PM
REPRESENTATIVE JOSEPHSON opined that HB 132 is "getting better."
He said he would not object to moving HB 132 out of committee;
however, he thinks it could be improved. He stated that his
feelings about the proposed legislation are "colored by the fact
that the principle company that has been so successful has just
been really unimpressive," in terms of its public relations. He
continued, "Its stock is really low with me, ... while it's high
on the market." He said he still finds [TNC drivers] are quasi-
employees under case law and some components of the Internal
Revenue Service's (IRS's) definition of what it means to be an
independent contractor. He indicated that passengers make up
the majority of those who would be impacted by HB 132, and he
opined that they "will have their lives improved." Conversely,
he said in terms of drivers' experiences, there is "a little bit
of a race to the bottom." He added that a person could say,
"Well, then they don't have to do it," but he said that is not
how he operates. He acknowledged that there is much public
enthusiasm about HB 132, but he reiterated that the bill could
be improved. He ventured, "Maybe Uber or Lyft would say, 'We're
not going to operate there,' but I think other TNCs would." He
said he is amazed at how much [HB 132] accommodates the
industry; however, he said he appreciates that the work draft
"goes a little closer to the middle."
3:39:51 PM
REPRESENTATIVE WOOL expressed appreciation for the comments by
Representative Josephson. He said he thinks HB 132 would
provide a more convenient way for people to transport themselves
throughout Alaska. He said he thinks drivers will be able to
work "on and off" to "pick up a few dollars" to pay for a new
car, for example, and they will have the flexibility to work
three or four hours and then go home and take care of a child,
for example. A taxi driver, by contrast, may work a 12-hour day
for 5 to 6 days a week. He said whether it is worth someone's
time [to become a TNC operator] remains to be determined.
REPRESENTATIVE WOOL said he thinks the opt-out provision is
helpful for a community that doesn't want to allow TNCs, because
the governing body could put the matter to a vote of the people.
He said he cannot speak to "the moral standing of the largest
TNC." He said hopefully "things will improve or they'll lose
market share." He concluded that there are other companies that
are doing better, are popular, and wish to come to Alaska, "so,
hopefully we'll have choices."
3:41:50 PM
REPRESENTATIVE STUTES moved to report CS for HB 132, Version 30-
LS0522\T, Wallace, 5/8/17, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHB 132(L&C) was reported out of the House Labor
and Commerce Standing Committee.
3:42:22 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:42 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB132 Draft Proposed Blank CS ver T 5.9.17.pdf |
HL&C 5/12/2017 3:15:00 PM |
HB 132 |
| CSHB132 (LAC) ver T Work Draft Explanation of Changes 5.9.17.pdf |
HL&C 5/12/2017 3:15:00 PM |
HB 132 |
| CSHB132 ver T Work Draft Sectional Analysis 5.12.17.pdf |
HL&C 5/12/2017 3:15:00 PM |
HB 132 |