Legislature(2017 - 2018)SENATE FINANCE 532

02/15/2017 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 9 MILITARY FACILITY ZONES TELECONFERENCED
Moved CSSB 9(FIN) Out of Committee
+ SB 14 TRANSPORTATION NETWORK COMPANIES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 15, 2017                                                                                          
                         9:00 a.m.                                                                                              
                                                                                                                                
9:00:48 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair MacKinnon called the Senate Finance Committee                                                                          
meeting to order at 9:00 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Mike Dunleavy                                                                                                           
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Chad Hutchinson, Staff, Senator Coghill.                                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
James Harris, Owner, Juneau Taxi, Juneau; Sam Moore, Self,                                                                      
Anchorage.                                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 9      MILITARY FACILITY ZONES                                                                                               
                                                                                                                                
          CSSB 9(FIN) was REPORTED out of committee with no                                                                     
          recommendation and with a previously published                                                                        
          zero fiscal note: FN 1 (MVA).                                                                                         
                                                                                                                                
SB 14     TRANSPORTATION NETWORK COMPANIES                                                                                      
                                                                                                                                
          SB 14 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 9                                                                                                             
                                                                                                                                
     "An Act relating to military facility zones."                                                                              
                                                                                                                                
9:02:09 AM                                                                                                                    
                                                                                                                                
CHAD  HUTCHINSON,  STAFF,   SENATOR  COGHILL,  presented  an                                                                    
overview of the  legislation. He stated that  the bill would                                                                    
maximize  the  benefit  to  Alaskans  in  areas  surrounding                                                                    
military installations. The bill  would create a streamlined                                                                    
process to  obtain military facility zone  designations from                                                                    
the Department  of Military and  Veterans Affairs  (DMVA) by                                                                    
making it  easier for local  municipalities and  boroughs to                                                                    
have  a  quicker application  process.  He  stated that  the                                                                    
military facility  zones were  important, because  the zones                                                                    
allowed  for lower  interest  rates,  credits, and  property                                                                    
reclassifications. The  actions could  occur as long  as the                                                                    
underlying interest  supported the  military mission  on the                                                                    
military instillation. He felt  that the bill was beneficial                                                                    
to national security and the military mission.                                                                                  
                                                                                                                                
Vice-Chair  Bishop   MOVED  to   REPORT  CSSB   9(FIN)  with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CSSB  9(FIN)   was  REPORTED  out   of  committee   with  no                                                                    
recommendation and  with a previously published  zero fiscal                                                                    
note: FN 1 (MVA).                                                                                                               
                                                                                                                                
9:03:53 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:07:47 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
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.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:17:55 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:17 a.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 14 - Opposition Letter - Brennan.pdf SFIN 2/15/2017 9:00:00 AM
SB 14
SB 9 DMVA Follow-up 021317.pdf SFIN 2/15/2017 9:00:00 AM
SB 9
SB 14 - Testimony - AML.pdf SFIN 2/15/2017 9:00:00 AM
SB 14