02/02/2017 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB14 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 14 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 2, 2017
1:30 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Shelley Hughes, Vice Chair
Senator Kevin Meyer
Senator Gary Stevens
Senator Berta Gardner
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 14
"An Act relating to transportation network companies and
transportation network company drivers."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 14
SHORT TITLE: TRANSPORTATION NETWORK COMPANIES
SPONSOR(s): SENATOR(s) COSTELLO
01/09/17 (S) PREFILE RELEASED 1/9/17
01/18/17 (S) READ THE FIRST TIME - REFERRALS
01/18/17 (S) L&C, FIN
02/02/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
WESTON EILER, Staff
Senator Mia Costello
POSITION STATEMENT: Presented a sectional analysis of SB 14.
NANCY ALLRED, Senior Regulatory Counsel
Uber Technologies Inc.
POSITION STATEMENT: Testified in support of SB 14.
MITCHEL MATTHEWS, Senior Operations Manager
Uber in the Northwest
POSITION STATEMENT: Testified in support of SB 14.
MARIE MARX, Director
Division of Workers' Compensation
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 14.
FRED PARADY, Deputy Commissioner
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified that DCCED's concern with SB 14 is
the unresolved question of coverage under personal and
commercial automobile insurance.
NIKKI ROSE, representing herself
Sand Lake, Alaska
POSITION STATEMENT: Testified in support of SB 14.
RYAN KENNEDY, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 14.
WILLIAM WEATHERBY, representing himself
King Salmon, Alaska
POSITION STATEMENT: Testified in support of B 14.
STAN ECKMAN, Yellow Cab
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 14.
KEVIN RUSTON, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 14.
RYAN MCKEE, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in support of SB 14.
DAVE O'MALLEY, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 14.
BRONSON FRYE representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 14.
ERIC GRANT representing himself
Seattle, Washington
POSITION STATEMENT: Testified in support of SB 14.
MAURICE BROWN, representing herself
Seattle, Washington
POSITION STATEMENT: Testified in support of SB 14.
KELSEY PULZZINSKI, representing herself, Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 14.
JIM BRENNAN, Attorney
representing elements of the taxicab industry
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 14 and
questioned the fairness of the public testimony process in the
context of the bill.
ROSS BIELING, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 14.
JEREMY PRICE, State Director, Americans for Prosperity
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 14.
BETH GOLDMAN, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 14.
MARISA FREEMAN, representing herself
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 14.
ACTION NARRATIVE
1:30:08 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:30 p.m. Present at the call to
order were Senators Gardner, Meyer, Hughes, Stevens and Chair
Costello.
SB 14-TRANSPORTATION NETWORK COMPANIES
1:30:42 PM
CHAIR COSTELLO announced the consideration of SB 14. She noted
that she and Senator MacKinnon are sponsors.
1:31:03 PM
SENATOR ANNA MACKINNON, Alaska State Legislature* cosponsor of
SB 14, stated that she represents one of the many communities in
the state that has been disadvantaged by unmet transportation
needs. She opined that including transportation network
companies within state statute will provide needed
transportation and work opportunities. She said that for more
than 25 years the residents of Eagle River and Chugiak have
tried to access traditional means of transportation, but it
hasn't worked out. The bus route from the Municipality of
Anchorage to these communities is always the first to be cut and
it is not economically advantageous for taxicab drivers to
provide service to and from this area. Efforts by the Anchorage
Assembly to institute a chauffeur license to provide rides to
and from the communities of Eagle River, Chugiak and Peters
Creek and the airport hasn't worked out either. She opined that
many communities statewide are similarly underserved.
She stated that SB 14 provides job opportunities for single
parents and people in transition, which offers an opportunity
for economic growth. Allowing transportation network companies
could also reduce commuters on the highway and increase safety
and reliability for riders. She shared that her experience using
rideshare companies has been positive. "It was very nice, it was
on time and there was a feeling of safety available for those
who were accessing the ride because you were in control of that
opportunity." She noted the letter of support in the packets
from the Chugiak-Eagle River Chamber of Commerce.
1:36:05 PM
At ease
1:38:07 PM
CHAIR COSTELLO reconvened the meeting and pointed out that SB 14
is in context with the economic presentations the committee has
heard this session. This includes the need for diversification,
the need for more jobs during the recession, and the need to
expand opportunities for people to make a living. She cited a
recent survey by the Department of Commerce, Community and
Economic Development (DCCED) that found that Alaskans believe
that economic development is the overwhelming factor in making
Alaska a better place to live. She opined that allowing ride-
share companies in Alaska will move the economy forward through
innovation.
She stated her intention to hear the bill, take members'
questions, take public testimony, and hold the bill in committee
for further review.
1:39:57 PM
WESTON EILER, Staff, Senator Mia Costello, provided introductory
comments on SB 14, paraphrasing the following sponsor statement:
Senate Bill 14, the Let's Ride Alaska Act, improves
transportation and economic opportunity through
innovation. The bill provides clarity in state law to
allow for Rideshare companies to operate in Alaska.
Rideshare (sometimes known as "Transportation Network
Companies") is a relatively new concept with a simple
premise - use technology to connect Alaskans, helping
get from here to there. During the past decade
companies like Uber, Lyft, and Sidecar have
revolutionized how people travel in cities worldwide.
Using a simple smart phone application, these
companies have created a platform that connects
private drivers with people looking for a ride. The
result is quick, cashless transportation solutions.
Drivers and riders self-select each other through the
app, make their trip, and digitally rate their
experience.
Senate Bill 14 authorizes their use in Alaska by
providing clarity to Alaska's insurance and workers
compensation statutes. Rideshare drivers are
classified as independent contractors and are exempted
from workers' compensation similar to taxi drivers.
The bill also requires safety background checks, zero
tolerance substance policies, and numerous other
safeguards.
Diversification is key to growing our state's economy.
Enabling Rideshare through Senate Bill 14 is an
innovative way to create jobs for Alaskans and improve
transportation and public safety in our state.
1:43:11 PM
He highlighted that Uber previously operated in Anchorage,
providing a flexible work platform for independent contractors
who average less than 10 hours driving per week. He related that
transportation network companies have also been shown to
increase public safety through reduced DUI and DWI convictions.
He reviewed the safety standards that transportation network
companies provide including accreditation through the National
Association of Professional Background Screeners. He noted that
an Uber representative would demonstrate the insurance coverage
for both the driver and passenger.
1:45:32 PM
MR. EILER reviewed the following sectional analysis for SB 14:
Section 1. Describes the legislative intent for the
bill.
Section 2. Amends AS 21.96 by adding a new section, AS
21.96.018, relating to transportation network company
insurance provisions. This section allows insurers who
write automobile insurance in the state to exclude
coverage while a driver provides a prearranged ride.
However, nothing in the section precludes an insurer
from providing coverage for the personal vehicle of a
transportation network company driver.
Section 3. Amends AS 23.30.230(a) to exclude
transportation network company drivers from the Alaska
Worker's Compensation Act.
Section 4. Amends AS 23.30.230(c) by adding the
definitions for "digital network," "prearranged ride,"
"transportation network company," and "transportation
network company driver."
Section 5. Amends AS 28 by adding chapter 23, titled
"Transportation Network Companies and Driver."
AS 28.23.010 - Provides that a transportation
network company or driver may not provide taxicab or
for-hire services and that they may not be required to
register as a commercial or for-hire vehicle.
AS 28.23.020. Requires that transportation
network companies comply with AS 43.70 and maintain an
agent.
AS 28.230.030. Relates to fares collected by
transportation network companies for services.
AS 28.23.040. Governs identification required for
by transportation network vehicles and drivers.
As 28.23.050. Requires electronic receipts.
AS 28.23.060. Sets insurance requirements for
transportation network companies and drivers.
AS 28.23.070. Requires transportation network
companies to provide automobile insurance disclosures
to drivers.
AS 28.23.080. Provides that transportation
network companies are not employers and that drivers
are independent contractors, not employees.
AS 28.23.090. Requires implementation of a zero
tolerance drug and alcohol policy.
AS 28.23.100. Sets transportation network company
driver requirements.
AS 28.23.110. Relates to mandatory rules and
policies governing nondiscrimination and
accessibility.
AS 28.23.120. Provides for maintenance of
records.
AS 28.23.180. Provides for definitions for the
chapter.
AS 28.23.190. States that the short title of the
chapter may be cited as the "Transportation Network
Companies Act."
CHAIR COSTELLO noted who was on line to respond to questions.
1:52:28 PM
SENATOR STEVENS asked for clarification of the statement that
rideshare companies will create more jobs and improve the
economy. "Does it really create more jobs if you're taking jobs
away from somebody and giving them to somebody else? Does it
really improve the economy if you're taking money away from a
cab and giving it to Uber?"
MR. EILER said a study in Portland looked at the effect
rideshare companies have on the cab industry and it showed that
they grew the pie. He offered to provide that study and other
information that looks at the cause and effect of having
rideshare companies introduced into an economy.
SENATOR STEVENS said he looks forward to receiving the
information.
CHAIR COSTELLO offered her understanding that being a driver for
a rideshare company is one of the few jobs that an active duty
military person can hold.
1:55:29 PM
SENATOR MEYER asked how this bill differs from the one that was
introduced several years ago.
MR. EILER replied the current bill contains model language and
strikes the right nexus for insurance companies to define these
drivers as independent contractors. He described this as a
growing model that is creating more solutions. "You're seeing it
start to compliment even some of the reforms that Anchorage is
doing with its own taxi market," he said.
SENATOR MEYER said he doesn't recall that taxicab drivers
complained that they were losing business when Uber conducted a
trial program in Anchorage, but he did receive calls asking what
happened to Uber when it no longer operated in the state. He
asked for an explanation.
MR. EILER explained that Uber arrived in Anchorage in September
2014 and ultimately decided to pause operations until state laws
were amended to clarify the issues of workers' compensation and
insurance. SB 14 was introduced to provide that clarity for
state and local governments and the industry.
1:59:55 PM
SENATOR GARDNER referred to the description of need that Senator
MacKinnon articulated and asked if an Uber driver can refuse to
pick up a fare between the Mat-Su Valley and downtown Anchorage
or the airport.
MR. EILER deferred the question to an Uber representative.
Speaking to the statement of need, he explained that a taxicab
driver would have to deadhead back to Anchorage to resume
commerce if he/she agreed to take a fare to Chugiak, whereas the
rideshare model would allow a passenger to connect with someone
who is commuting to or from Anchorage and Chugiak. That's a
benefit of this model, he said.
SENATOR GARDNER said she'd like to hear Uber discuss whether a
driver can decline a fare or not. She offered her perspective
that the remaining issue is workers' compensation and
unemployment insurance. She asked for some discussion from the
Department of Labor or the sponsor about what distinguishes an
independent contractor from an employee, absent defining it in
statute.
2:03:08 PM
MR. EILER said the concept of SB 14 is that rideshare drivers
are independent contractors in that they operate their own
vehicles, work on their own time, and may work for one or more
companies. The only direction they take from the rideshare
company is to meet their standards for safety and customer
service. He explained that these are technology companies that
provided the platform to connect a driver and a rider. At the
end of the fare, 80 percent goes to the driver and 20 percent to
the rideshare company as a technology fee.
SENATOR GARDNER pointed out that the price of the ride is set by
the rideshare company and it can fluctuate depending on need and
time of day.
MR. EILER deferred the discussion about pricing to Uber.
2:05:01 PM
SENATOR HUGHES shared her personal experience using both Lift
and Uber and opined that SB 14 will help people in the Mat-Su
Valley get to and from the airport and will be a cost savings.
She offered her perspective that these drivers won't be sitting
and waiting for a fare. Rather, it will be someone headed to
Costco, to a job, or to the Fifth Avenue mall. Her experience is
that drivers typically have another job and they drive less than
ten hours a week. She pointed out that the need for this
platform is growing and stated agreement with the statement that
allowing rideshare companies will grow the pie.
She asked if drivers could carry their proof of insurance
coverage in electronic form. She noted she supports that option.
MR. EILER deferred the question to legislative legal services.
SENATOR GARDNER added that an electronic form would be more
likely to be up to date.
MR. EILER said the industry supports digitized information.
2:09:33 PM
At ease
2:11:07 PM
CHAIR COSTELLO reconvened the meeting.
2:11:21 PM
NANCY ALLRED, Senior Regulatory Counsel, Uber Technologies Inc.,
explained that Uber is a technology company that digitally
connects drivers with riders. The independent contractor drivers
value the flexibility the platform provides; some 80 percent
give that as the reason they work for Uber. She reviewed the
history of the company that was founded in 2009. It currently
operates in 47 states and 541 cities worldwide.
She said she is speaking in support of SB 14. It provides
appropriate safeguards for consumers and provides predictability
to launch their product in Alaska. It includes insurance
language that has been adopted in over 40 states and has been
approved by the National Conference of Insurance Legislators
(NCOIL). Background checks are performed by a third party that
has been approved by the National Association of Background
Screeners. This involves a motor vehicle check and a review of
the national sex offender website. She opined that this will be
a benefit for residents and tourists alike. She noted that over
60,000 people in Alaska have opened the Uber app in the last
year looking for a ride.
2:14:07 PM
MITCHEL MATTHEWS, Senior Operations Manager, Uber in the
Northwest, displayed a video to demonstrate the features of the
Uber app. Riders see screens that show the product description
and the prices, type of vehicles, driver contact and trip
details, including share status and payment information. The
rider also receives information about the driver and where the
car is en route.
2:17:44 PM
CHAIR COSTELLO said a feature she enjoyed is that there is no
fumbling for your wallet or purse once you reach your
destination. A good safety feature is that the driver and rider
each give the other a star rating based on the experience.
SENATOR MEYER asked if the rating is a five-star scale.
MR. MATTHEWS answered yes. Responding to a further question, he
confirmed that the rider could reject a driver based on the star
rating.
SENATOR HUGHES asked about wait times, how rates are calculated,
and if the technology works equally well in rural areas where
there are fewer drivers and riders.
MR. MATTHEWS explained that the Uber product is shaped by the
community, but it works equally well in both urban and rural
communities. The wait times vary according to the number of
drivers on the app and where they are relative to the rider.
Addressing pricing, he explained that Uber drivers receive per
minute per mile base fare information, so they understand the
compensation they will receive for a trip as well as the
associated commission and rate structure. Riders receive an
estimated fare up front. Feedback from riders is they appreciate
the fare transparency and up-front pricing, although that does
change during periods of high demand. That is built into the
technology.
CHAIR COSTELLO asked him to describe Uber kids and Uber women
and if he foresees them being in Alaska should the bill pass.
MR. MATTHEWS explained that Uber teen is a pilot where
individuals who are 13-18 years of age can take trips and the
parent can see where their child is en route and confirmation
that they arrived at the destination. The one million women
pledge is to provide a business opportunity for one million
women. He noted that a lot of military use the app to bridge
income gaps. Uber also has drivers from the hearing-impaired
community. Enhanced features in the driver app inform riders
that they will be picked up by someone who has a hearing
disability. He emphasized that all these drivers own their own
business; they set their own schedules, receive a 1099 at the
end of the year, and use their own vehicles and equipment.
2:24:07 PM
SENATOR GARDNER asked how Uber price fluctuations compare to
taxicab price fluctuations.
MR. MATTHEWS explained that pricing generally depends on the
time of day and how the community shapes the product. When there
is more demand for the drivers, the price generally increases.
It's also a component of how Uber grows the pie to complement
other transportation networks within the community.
SENATOR GARDNER asked if drivers are free as independent
contractors to refuse a fare.
MR. MATTHEWS answered yes, drivers are free to decline a ride
any time they choose to do so, even after they have arrived at
the pick-up point.
SENATOR GARDNER asked if Uber drivers have a business license.
MR. MATTHEWS replied they do in some jurisdictions.
2:27:02 PM
SENATOR STEVENS questioned whether this really grows the pie and
improves the economy. "It makes sense to me that if you give a
job to one person and take it away from someone else, you're not
creating more jobs. If you give money to someone and take it
away from somebody else, you aren't putting more money in the
economy."
MR. MATTHEWS related that when Uber enters a market, traditional
taxicab drivers also use the for-hire app. He explained that
Uber grows the pie by enhancing services and opportunities by
bringing in interesting platforms and products to underserved
demographics or underserved areas of the community via Uber teen
or working with restaurant or hotel partners or care facilities.
2:28:58 PM
At ease
2:30:42 PM
CHAIR COSTELLO reconvened the meeting and welcomed Marie Marx
who would answer questions related to workers' compensation.
2:31:02 PM
SENATOR GARDNER asked her to talk about the difference between
an employee and an independent contractor.
2:31:26 PM
MARIE MARX, Director, Division of Workers' Compensation,
Department of Labor and Workforce Development (DOLWD), said she
could only talk about the definition in the context of workers'
compensation. She explained that every employer that has one or
more employees is obligated to cover those employees for
workplace injuries, and every employee injured on the job is
entitled to benefits. Workers' compensation provides that
framework, and without it the employer is open to lawsuits and
the employee is potentially subject to substantial medical bills
if they don't have personal coverage.
Whether or not an individual should be considered an employee is
a case-by-case determination, she said. Under current law it is
a six-factor balancing test and no one factor is determinative.
If a dispute arises after a workplace injury about whether an
individual is in fact an employee, the matter goes before the
Alaska Workers' Compensation Board. The board looks at factors
such as who controlled the work, who provided the primary tools
for the job, who set the hours, and how the individual was paid.
Then they make a determination on whether the individual is an
employee.
SENATOR GARDNER asked if the manner of compensation is a factor.
She noted the committee had been told that Uber drivers never
touch the money, whereas taxi drivers collect the fare.
MS. MARX said one factor that's considered in the workers'
compensation context is how the person is paid for the work and
who controls the payment. She related that the Alaska Board of
Workers' Compensation has never made a determination on the
issue of employee status for Uber or similar technology
companies. She offered her understanding that drivers pay a set
rate to access the dispatch service in the taxi driver
structure, whereas the Uber platform doesn't have a set fee to
access the app. The Uber driver is paid for each ride he/she
gives.
SENATOR GARDNER asked if she agrees that the bill identifies
Uber and other technology company drivers as independent
contractors by virtue of definition.
MS. MARX said the division is still reviewing SB 14, but as
currently written it doesn't call those drivers independent
contractors or employees. Rather, it exempts rideshare drivers
from the Alaska Workers' Compensation Act. She explained that
the division does not exempt business types, but it currently
exempts ten categories of individuals from the Act. "It doesn't
mean they're employees. It doesn't mean they're independent
contractors. The Act just does not apply to them." She related
that commercial fishermen are one category of individuals the
Act doesn't apply to. If an injury were to occur, the fisher
would not be entitled to workers' compensation benefits.
SENATOR GARDNER asked if an Uber driver would be expected to pay
those benefits on his/her own.
MS. MARX replied the Alaska Workers' Compensation system isn't
involved when it's an exempt category of individuals. Her
understanding is that most states have liability legislation
relating to rideshare technology companies, but she doesn't know
how many have addressed the tricky issue of independent
contractor status.
2:38:33 PM
SENATOR STEVENS asked if this really is workforce development.
MS. MARX said the administration has not taken a position on the
economic impact of this legislation. The division has focused on
the labor aspect looking at whether these individuals would be
completely exempt from the Alaska Workers' Compensation Act.
CHAIR COSTELLO noted that the Department of Commerce, Community
and Economic Development representative would testify next and
he could address the question.
SENATOR STEVENS said he wouldn't ask it again.
2:40:33 PM
At ease
2:41:33 PM
CHAIR COSTELLO reconvened the meeting and welcomed Deputy
Commissioner Parady.
2:41:54 PM
FRED PARADY, Deputy Commissioner, Department of Commerce,
Community and Economic Development (DCCED), stated that the
department believes that SB 14 provides necessary provisions to
protect consumers from an insurance perspective. It clarifies
the commercial insurance necessary for a transportation network
company and allows insurers to exclude coverage offered under
personal vehicle policies. He reported that insurers in Alaska
and other states have filed endorsements in their automobile
lines that specifically exclude coverage for drivers when they
are signed into a transportation network company platform.
MR. PARADY said the Division of Insurance has not received
filings to add transportation network coverage for Alaska
drivers under either personal or commercial auto insurance
because TNCs are not expressly authorized. Similarly, no
insurers have filed advising the division they are adopting the
currently approved authorized insurance service office (ISO).
Should the bill pass, those steps likely will occur, he said.
Transportation network drivers will then need to make sure their
auto insurance coverage complies with Alaska requirements and
that they understand their insurance exclusions.
MR. PARADY concluded that SB 14 will have no fiscal impact on
the Division of Insurance. The only concern with the bill is
resolving the question of coverage under personal and commercial
automobile insurance.
2:45:22 PM
SENATOR STEVENS asked how someone would know that either a
taxicab driver or an Uber driver has insurance.
MR. PARADY read the portion of SB 14 that specifically requires
a TNC driver or the company on behalf of the driver to carry
proof of insurance coverage.
2:46:41 PM
CHAIR COSTELLO opened public testimony on SB 14.
2:47:12 PM
NIKKI ROSE, representing herself, Sand Lake, Alaska, testified
in support of SB 14. She related her personal experience using
Uber when she lived in Seattle and opined that she would be both
a driver and rider if this platform were available in Anchorage.
2:52:07 PM
RYAN KENNEDY, representing himself, Anchorage, Alaska, testified
in support of SB 14. He said he follows issues in the transit
market in Anchorage closely and believes that TNCs would be very
beneficial to the area.
2:55:37 PM
WILLIAM WEATHERBY, representing himself, King Salmon, Alaska,
testified in support of SB 14. He related several instances when
taxicabs were not available in his rather rural area and offered
his opinion that TNCs could fill the gaps nicely.
2:58:27 PM
STAN ECKMAN, representing Yellow Cab in Anchorage, testified in
opposition to SB 14. He described the history of the taxicab
market since Anchorage became a municipality and refuted the
idea that TNCs will grow the pie. He maintained they would turn
his 30-year career into a hobby. If the taxicab industry is
decimated, he asked what will happen if Uber fails or decides to
leave. He questioned the insurance scheme for Uber drivers and
the assertion that they are independent contractors.
3:01:30 PM
KEVIN RUSTON, representing himself, Anchorage, Alaska, testified
in opposition to SB 14. He said he is a Yellow Cab driver in
Anchorage and he does not believe that Uber and other TNCs have
been good corporate citizens. They hold themselves above the
law. He said they have decimated the existing taxicab industry,
they underserve certain populations, and they do not create new
jobs.
3:04:26 PM
RYAN MCKEE, representing himself, Wasilla, Alaska, testified in
support of SB 14. His experience is that Uber does a good job of
ensuring that their drivers are well identified. He said a lot
of people do not use taxicabs because they are too expensive or
there aren't enough to meet the demand. Sometimes this results
in people driving home drunk, he said. He highlighted that
Mothers Against Drunk Drivers has said that DUI rates have
dropped dramatically in cities that allow TNCs. Having Uber in
Alaska will be a benefit to the state, he said.
3:06:42 PM
DAVE O'MALLEY, representing himself, Anchorage, Alaska,
testified in support of SB 14. He related that he has been
openly critical of the dysfunction in the taxicab industry in
Anchorage. He shared that he was also the first Uber driver in
Anchorage in 2015. He maintained that keeping the status quo in
the taxicab industry is at odds with the best interests of the
state, the municipality, the public and the industry in general.
TNCs will force competition which is what the people want. He
emphasized that being an Uber driver is a better deal for the
driver than working for a taxicab company.
3:09:28 PM
BRONSON FRYE representing himself, Anchorage, Alaska, testified
in opposition to SB 14. He said the concept of Uber has value,
but he has concerns about the business model because it
classifies the drivers as independent contractors. He maintained
it violates tax and employment laws as well as the rights of
employees. He said worker misclassification has been the subject
of widespread litigation nationwide and he doesn't believe Uber
drivers are actually independent contractors. They don't set
fares, they can't accept tips, they must accept riders when
they're logged into the app, and they must buy or lease a car
that meets Uber specifications. He said misclassification is
such a problem in the construction industry that the governor
introduced a bill to address the problem. It doesn't make sense
to pass a bill that would potentially create that same problem
in another industry, he said.
3:15:26 PM
ERIC GRANT representing himself, Seattle, Washington, testified
in support of SB 14. He has been an independent contractor with
Rideshare for two and one-half years and it has been an economic
benefit for his family. He suggested the committee look at both
the economic boost TNCs will give to a community and the
opportunity they will provide for people to earn more income. He
said TNCs naturally grow the pie. Someone sitting at home in a
remote area could turn on the app and learn that someone nearby
was looking for a ride. That person may not want to wait more an
hour for a taxi to show up. He regularly drives drunk people,
elderly people, and school age children. All rides are tracked
so there is no safety issue. He drives full time, but it is a
part-time model that is designed to allow people to make extra
income.
3:19:36 PM
MAURICE BROWN, representing herself, Seattle, Washington,
testified in support of SB 14. He has been an Uber driver for
over two years and it has given him an opportunity to be self-
employed and provide for his family. He relayed a personal
experience that demonstrates ride safety and benefit to the
community. He believes that TNCs will diversify the economy of a
community.
3:24:17 PM
KELSEY PULZZINSKI, representing herself, Anchorage, Alaska,
testified in support of SB 14. She believes authorizing TNCs
will be good for Alaska and will level the playing field. It
will make it easier for veterans, low-income workers, and
students to earn some extra cash at a transitional stage of
their lives.
3:25:29 PM
JIM BRENNAN, Attorney, Anchorage, Alaska, said he has been
representing elements in the taxicab industry for over 30 years.
He described the current committee process as a travesty. Uber
was allowed to monopolize the testimony leaving little to no
time for people like himself and other Alaskans to testify. He
emphasized that the State of Alaska should not engage in the
regulation of an industry that has traditionally been regulated
by individual municipalities. He said that how to allow TNCs to
come in and play by the same rules as regulated taxicab
companies is a very involved question. Municipalities like
Anchorage have wrangled with this issue and it varies from city
to city. "You should not do this on a statewide basis," he
emphasized.
3:27:11 PM
ROSS BIELING, representing himself, Anchorage, Alaska, testified
in support of SB 14. He said his first experience with Uber was
wonderful. He believes that the crux of the matter is that "we
don't like competition in Anchorage." Uber provides a very
unique service and the taxicab industry needs to wake up and
realize that things are changing, he said.
3:28:19 PM
JEREMY PRICE, State Director, Americans for Prosperity,
Anchorage, Alaska, testified in support of SB 14. He said that
TNCs will benefit Alaska in any number of ways. They will
provide competition and improve the service of taxicab
companies. He said there should be no fear about changing and
increasing innovation.
CHAIR COSTELLO noted that Senator MacKinnon, cosponsor of SB 14,
had rejoined the committee.
3:29:55 PM
BETH GOLDMAN, representing herself, Anchorage, Alaska, testified
in support of SB 14. She said she was an Uber driver in
Anchorage at the same time as Mr. O'Malley. It allowed her to
earn much needed income, so she could live near her
grandchildren. The platform is needed statewide.
3:30:57 PM
MARISA FREEMAN, representing herself, Anchorage, Alaska,
testified in support of SB 14. She knows from first-hand
experience that competition is healthy.
CHAIR COSTELLO said she welcomed written testimony.
[CHAIR COSTELLO held SB 14 in committee.]
3:32:21 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 14.PDF |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Sectional Analysis.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Fiscal Note - DMV.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Fiscal Note - DOL&WD WCD.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Fiscal Note - DCCED.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Fiscal Note - DOL&WD.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Support Letter - Chugiak Eagle River Chamber of Commerce.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Background - Uber 101.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Backgroudn - Uber Safety.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Background - Safety with Uber.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Background - Uber Small Businesses.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Background - Insurance White Paper.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Background - Working with Uber.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |
| SB 14 - Sponsor Statement.pdf |
SL&C 2/2/2017 1:30:00 PM |
SB 14 |