Legislature(2017 - 2018)BARNES 124
03/22/2017 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HJR14 | |
| HB157 | |
| HB119 | |
| HB144 | |
| HB86 | |
| HB79 | |
| HB132 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 132 | TELECONFERENCED | |
| *+ | HB 144 | TELECONFERENCED | |
| + | HB 86 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HJR 14 | TELECONFERENCED | |
| += | HB 157 | TELECONFERENCED | |
| += | HB 119 | TELECONFERENCED | |
| += | HB 79 | TELECONFERENCED | |
HB 132-TRANSPORTATION NETWORK COMPANIES
5:02:05 PM
CHAIR KITO 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."
5:02:29 PM
REPRESENTATIVE WOOL moved to adopt CSHB 132, Version 30-LS0522\R
as the working document.
CHAIR KITO objected for purposes of discussion.
5:03:03 PM
LAURA STIDOLPH, Staff, Representative Adam Wool, Alaska State
Legislature, advised that Version R takes into account
discussions during the last two committee hearings. This
version provides a statewide framework for transportation
network companies (TNC) across Alaska to provide the service
Alaskans desire rather than a multitude of regulations hindering
current "for-hire transportation options," thereby providing
Alaskans with the seamless and relatively inexpensive
transportation deserved. This bill allows for a free market by
providing an extra income to constituents during this unsteady
state's fiscal outlook. The Department of Transportation &
Public Facilities (DOTPF) presented a change having to do with
the regulation of TNCs at airports. She referred to Sec. 6,
page 5, lines 14-18, which added subsection (b), and read as
follows:
(b) The Department of Transportation and Public
Facilities may, under AS 02.15, adopt a regulation or
enter into a contract, lease, or other arrangement
with a transportation network company or driver for
use of an international airport owned or operated by
the state. A regulation or arrangement under AS 02.15
must be consistent with this chapter.
MS. STIDOLPH explained that it allows for the DOTPF to regulate
use of a TNC at an international airport owned and operated by
the state.
5:04:55 PM
MS. STIDOLPH noted that after hearing concerns from committee
members regarding the ability for local control and local
taxation, the sponsor believes it is fair for municipalities to
impose a sales tax on the TNC driver in accordance with how
similar services are taxed in a municipality, and makes clear
that TNCs must follow local traffic ordinances. She referred to
Sec. 8, page 12, lines 3-7, which read as follows:
(b) The prohibition on regulation under (a) of this section
does not include
(1) imposition of a municipal sales tax on a
transportation network company driver that taxes a trip
originating in the municipality in the same manner that other
services are taxed in the municipality;
(2) a municipal traffic ordinance.
MS. STIDOLPH explained THAT the provision allows municipalities
to impose a sales tax and ensures that municipal traffic
ordinances must be followed.
5:06:09 PM
REPRESENTATIVE JOSEPHSON commented that he had heard the TNCs
say "that there was no jurisdiction where a sales tax was
allowed in the United States."
MS. STIDOLPH answered that this was the first time one of the
TNCs has had sales tax mentioned in statewide legislation.
5:06:39 PM
REPRESENTATIVE STUTES asked how sales tax would be collected or
tracked to know that it needed to collect sales tax.
MS. STIDOLPH replied that sales tax will be collected and
remitted with an operational decision between the driver and the
TNC. The tax will come from the rider, the payment, and not
from the driver, she said.
5:07:11 PM
REPRESENTATIVE KNOPP asked how that scenario would work out
since it deals in credit cards and not cash.
MS. STIDOLPH referred to the third party collecting the money
between the TNC and the driver, and said that tax will be
included on top of the fare. The operational decision has not
yet been made and will be worked out between the policymakers of
the companies and the municipalities.
REPRESENTATIVE KNOPP referred to CSHB 132, Sec. 6, beginning
page 5, line 5, wherein Ms. Stidolph testified that the DOTPF
may adopt regulations in its contract, lease, or other
arrangements, and suggested he was unsure "that really provides
anything." He asked why the TNCs would be interested in
leasing from the state if there is no requirement to do so, with
no municipal input. He said this simply authorizes the DOTPF to
lease to a TNC, but there is nothing that says they will even
have the conversation.
5:09:02 PM
JOHN BINDER, Deputy Commissioner of Aviation, Commissioner's
Office, Department of Transportation & Public Facilities,
responded that the issue comes down to the ability to regulate
primarily where the Uber drivers pick up and drop off related to
the airport operations. Airports around the country have had a
significant challenge with this issue prior to having
regulations in place by causing traffic jams and such, he said.
The original language left some ambiguities as to whether
airports would be allowed to stipulate where some of that
activity may take place, he explained.
5:09:41 PM
MR. BINDER agreed with Representative Knopp that the state does
not own all of the airports.
REPRESENTATIVE KNOPP surmised that the state would not have
authority over some of the airports. Except when discussing
authority, "all this is given, adopt, right to enter into a
contract, lease, or other arrangement," but it does not offer
enforcement power to mandate that the drivers utilize a certain
spot, it has to be in cooperation.
MR. BINDER responded that under current policies, certain
regulation related to taxi service, for instance, allows
requiring permits and dictating the drop-off and pick-up
locations, rates, and those sorts of things. This is intended
to at least provide the framework for a similar type of
arrangement with TNCs. Obviously, he said, many of those
details will be worked out as the TNC comes on board or
expresses interest. In the absence of this, the original
language appeared to preclude the airport from having any say in
how its operations took place on the airport, he explained.
5:11:11 PM
REPRESENTATIVE KNOPP referred to city-owned airports, such as
Juneau or Kenai, and said they were not given any local control
and "we wouldn't have any input to what happens at those
airports."
MR. BINDER answered in the affirmative.
5:11:34 PM
REPRESENTATIVE JOSEPHSON referred to the sales tax question and
offered a scenario of taking a TNC from this building to the
airport at a cost of $14.00, and asked whether he would be told
the cost was $14.89 due to a sales tax, and how that would work.
MS. STIDOLPH explained that the manner in which TNCs work, the
passenger would know the exact cost before accepting the ride,
which would include the tax.
5:12:22 PM
REPRESENTATIVE SULLIVAN-LEONARD referred to the sale tax and
asked whether it was applicable that a business license would be
purchased in each city in order to have that sales tax
transaction.
MS. STIDOLPH answered in the affirmative, and explained that a
person purchases a local business license and files quarterly
sales tax.
5:12:58 PM
CHAIR KITO removed his objection to Version R, which put CSHB
Version R before the committee.
REPRESENTATIVE BIRCH commented that he does not have an
objection, due to the discussion and numerous testimonies from
the various TNCs as to the legislation being workable for their
companies, he asked whether this legislation was still workable.
5:13:48 PM
MITCHELL MATTHEWS, Representative, Uber Technologies, responded
that Version R is workable from Uber's perspective.
[HB 132 was held over.]