Legislature(2023 - 2024)BARNES 124
03/07/2024 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB376 | |
| SSCR8|| EXECUTIVE ORDER 131 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 376 | TELECONFERENCED | |
| *+ | HB 332 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | SSCR 8 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 7, 2024
1:03 p.m.
MEMBERS PRESENT
Representative Kevin McCabe, Chair
Representative Sarah Vance, Vice Chair
Representative Tom McKay
Representative Craig Johnson
Representative Jesse Sumner
Representative Louise Stutes
Representative Genevieve Mina
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 376
"An Act relating to transportation network and delivery network
companies."
- HEARD & HELD
SENATE SPECIAL CONCURRENT RESOLUTION NO. 8
Disapproving Executive Order No. 131.
- CONSIDERED
EXECUTIVE ORDER 131
- HEARD
HOUSE BILL NO. 332
"An Act relating to the sale of the Alaska Railroad; and
providing for an effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 376
SHORT TITLE: DELIVERY NETWORK COMPANIES
SPONSOR(s): TRANSPORTATION
02/20/24 (H) READ THE FIRST TIME - REFERRALS
02/20/24 (H) TRA, L&C
03/07/24 (H) TRA AT 1:00 PM BARNES 124
BILL: SSCR 8
SHORT TITLE: DISAPPROVE EO 131
SPONSOR(s): RULES
02/12/24 (S) READ THE FIRST TIME - REFERRALS
02/12/24 (S) TRA
02/22/24 (S) TRA AT 1:30 PM BUTROVICH 205
02/22/24 (S) Moved SSCR 8 Out of Committee
02/22/24 (S) MINUTE(TRA)
02/23/24 (S) TRA RPT 1DP 2NR
02/23/24 (S) NR: KAUFMAN, MYERS
02/23/24 (S) DP: TOBIN
02/23/24 (S) TRANSMITTED TO (H)
02/23/24 (S) VERSION: SSCR 8
02/26/24 (H) READ THE FIRST TIME - REFERRALS
02/26/24 (H) TRA
03/04/24 (H) TRA WAIVED PUBLIC HEARING NOTICE, RULE
23(A) WITH EO 131
03/07/24 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
JULIE MORRIS, Staff
Representative Kevin McCabe
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 376 on behalf of
Representative McCabe, prime sponsor.
RYAN ANDERSON, Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Introduced EO 131.
ANDY MILLS, Legislative Liaison
Office of the Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Gave the sectional analysis for EO 131.
MORGAN GRIFFIN, Assistant Attorney General
Labor and State Affairs Section
Department of Law
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on EO
131.
ACTION NARRATIVE
1:03:58 PM
CHAIR KEVIN MCCABE called the House Transportation Standing
Committee meeting to order at 1:03 p.m. Representatives Sumner,
McKay, Vance, Stutes, Mina, and McCabe were present at the call
to order. Representative C. Johnson arrived as the meeting was
in progress.
HB 376-DELIVERY NETWORK COMPANIES
1:04:54 PM
CHAIR MCCABE announced that the first order of business would be
HOUSE BILL NO. 376, "An Act relating to transportation network
and delivery network companies."
1:05:39 PM
JULIE MORRIS, Staff, Representative Kevin McCabe, Alaska State
Legislature, introduced HB 376 on behalf of Representative
McCabe, prime sponsor. She paraphrased the sponsor statement
[included in the committee packet], which read as follows
[original punctuation provided]:
I am proud to introduce House Bill 376, which aims to
address critical aspects of labor regulations
concerning transportation network companies (TNCs) and
delivery network companies (DNCs) in the state of
Alaska. This bill seeks to clarify the classification
of workers within these industries, ensuring that they
are treated fairly and equitably under the law.
Over the past decade, the rise of transportation and
delivery network companies has transformed the way
people and goods are transported and delivered. These
companies provide valuable services that enhance
mobility, convenience, and accessibility for
individuals and businesses alike. However, as the gig
economy has expanded, questions have arisen regarding
the classification of workers and their rights and
protections under existing labor laws.
House Bill 376 addresses these concerns by refining
the classification of workers within the TNC and DNC
sectors. It ensures that individuals who provide
prearranged rides or delivery services through digital
networks are properly classified as independent
contractors, provided they meet specific criteria
outlined in the bill.
This bill will address policy inconsistencies and
improve the working standards of delivery drivers in
Alaska. This legislation aims to align the status of
delivery drivers with that of rideshare drivers,
recognizing them all as essential contributors to the
digital marketplace. The current distinction between
rideshare and delivery drivers in relation to workers'
compensation does not reflect the fluid nature of
their roles, where drivers often switch between
passenger transportation and goods delivery. This
creates needless uncertainty and potential
inconsistency in the application of our laws,
undermining the flexibility and supplemental income
opportunities that platform workers rely on.
Furthermore, this bill seeks to ensure Alaska stays in
line with developments in other states where
marketplace platform workers across all platforms are
treated uniformly. Such consistency is paramount in
fostering fairness, understanding, and avoiding legal
ambiguities in this fast-growing digital space.
Similar to other states, Alaska should establish a
policy environment that attributes equal regulatory
treatment to all platform workers, regardless of their
chosen platform. This will not only demonstrate
Alaska's commitment to valuing all digital platform
workers but will also encourage a fair and inclusive
digital marketplace.
1:08:41 PM
MS. MORRIS gave the sectional analysis for HB 376 [included in
the committee packet], which read as follows [original
punctuation provided]:
Section 1: This section amends AS 23.30.230(a) by
delineating individuals who are not covered by certain
labor regulations. It specifies exemptions for various
categories of workers, including part-time
babysitters, cleaning persons, harvest help, sports
officials, entertainers, commercial fishermen, taxicab
drivers, participants in the Alaska temporary
assistance program, professional hockey players or
coaches, and qualified real estate licensees.
Additionally, it introduces an exemption for a
delivery network company courier who provides delivery
services or is otherwise logged onto the digital
network of a delivery network company under AS
28.23.080.
Section 2: This section amends AS 28.23.080(a) to
establish that transportation network companies (TNCs)
and delivery network companies (DNCs) are not
employers of TNC drivers or DNC couriers under certain
labor laws. It clarifies that TNC drivers and DNC
couriers are independent contractors and not employees
of the respective companies, provided that certain
conditions are met, such as not imposing specific
hours of work, allowing drivers to use multiple
digital networks, not restricting drivers from
engaging in other occupations, and entering into a
written agreement declaring the independent contractor
status.
Section 3: This section amends AS 28.23.180(1) to
define "digital network" as any online-enabled
application, software, website, or system used by
transportation network companies or delivery network
companies to facilitate prearrangement of rides or
offers for delivery services.
Section 4: This section amends AS 28.23.180 by adding
new definitions related to delivery network companies,
including "company," "delivery network company,"
"delivery network company courier" or "courier,"
"delivery services," and "offer." These definitions
clarify the roles and operations of delivery network
companies and couriers within the digital network
system.
1:11:33 PM
CHAIR MCCABE asserted that definitions would be needed for the
various couriers.
1:12:19 PM
REPRESENTATIVE STUTES asked whether the main purpose of the bill
was for definitions.
CHAIR MCCABE confirmed that for the most part it was, and he
gave an example of a situation with a delivery driver.
CHAIR MCCABE announced that HB 376 was held over.
^Executive Order 131
SSCR 8-DISAPPROVE EO 131
Executive Order 131
1:13:21 PM
CHAIR MCCABE announced that the next order of business would be
SENATE SPECIAL CONCURRENT RESOLUTION NO. 8, Disapproving
Executive Order No. 131. [The committee simultaneously heard
testimony related to Executive Order 131.]
1:13:56 PM
RYAN ANDERSON, Commissioner, Department of Transportation &
Public Facilities, introduced Executive Order (EO) 131. He gave
examples of how the governor supported the Alaska Marine Highway
System (AMHS) and he stressed the importance of the AMHS
operations board. He stated that reliability and service must
continue to improve in the ferry system, and he acknowledged
that the Department of Transportation and Public Facilities
(DOT&PF) had been behind in its planning and continued to make
decisions without short- and long-term plans in place. He said
the bill requires that all board members are appointed by the
governor.
1:17:07 PM
ANDY MILLS, Legislative Liaison, Office of the Commissioner,
Department of Transportation & Public Facilities, gave the
sectional analysis for EO 131 [included in the committee packet]
which read as follows [original punctuation provided]:
Section 1. The uncodified law of the State of Alaska
is amended by adding a new section to read:
FINDINGS. As governor, I find that it is in the
best interests of efficient administration to
reorganize the membership of the Alaska Marine Highway
Operations Board.
* Sec. 2. AS 19.65.120(a) is amended to read:
(a) The board is composed of the deputy
commissioner of transportation and public facilities
assigned to the Alaska marine highway system and the
following eight public members, each of whom must be a
resident of the state:
(1) one representative, who may be retired,
of a recognized union that represents employees of the
Alaska marine highway system, appointed by the
governor;
(2) one representative of an Alaska Native
organization or tribe who is from a community served
by the Alaska marine highway system, appointed by the
governor;
(3) six public members
[(A)] who collectively have experience in
enterprise, architecture, business operations,
financial management, risk management, logistics,
supply chain management, engineering, project
management and controls, marine operations, strategy,
regulatory compliance, ship maintenance, construction,
and repair, quality management, continuous
improvement, sales, marketing, communications,
customer interface, or experience management, [;
(B) TWO OF WHOM ARE] appointed by the
governor [, TWO OF WHOM ARE APPOINTED BY THE SPEAKER
OF THE HOUSE OF REPRESENTATIVES AND WHO SERVE AT THE
PLEASURE OF THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES, AND TWO OF WHOM ARE APPOINTED BY THE
PRESIDENT OF THE SENATE AND WHO SERVE AT THE PLEASURE
OF THE PRESIDENT OF THE SENATE].
* Sec. 3. AS 19.65.120(c) is amended to read:
(c) The members of the board, except for the
deputy commissioner of transportation and public
facilities, shall serve staggered six-year terms. If a
vacancy arises on the board, the governor [, THE
PRESIDENT OF THE SENATE, OR THE SPEAKER OF THE HOUSE
OF REPRESENTATIVES, AS APPLICABLE,] shall, within 30
days after the vacancy arises, appoint a person to
serve the balance of the unexpired term. A person
appointed to fill the balance of an unexpired term
shall serve on the board from the date of appointment
until the expiration of the term.
* Sec. 4. The uncodified law of the State of
Alaska is amended by adding a new section to read:
TRANSITION. The terms of the current members of
the Alaska Marine Highway Operations Board terminate
on the effective date of this Order. The governor may
appoint to the Alaska Marine Highway Operations Board
a person who served on the board as it existed before
the effective date of this Order and who meets the
qualifications of AS 19.65.120(a), as amended by sec.
2 of this order. The terms of persons initially
appointed to the Alaska Marine Highway Operations
Board under AS 19.65.120(a), as amended by sec. 2 of
this Order, must be set as provided in AS 19.65.120(c)
so as to establish the staggering of terms.
* Sec. 5. This Order takes effect July 1, 2024.
1:21:49 PM
REPRESENTATIVE VANCE, noting the various differences in boards
and commissions that give recommendations to departments, asked
whether some carry a fiscal responsibility of recommendations
more so than others.
MR. MILLS agreed and stated that DOT&PF has looked at the amount
of staff hours put in to generating activities for the board,
and many of the statutory requirements of HB 63 come with a
significant effort needed for AMHS to have a long- and short-
term plan. He noted the integrated and coordinated roles of
AMHS and DOT&PF.
1:24:07 PM
REPRESENTATIVE VANCE pointed out that she was a part of crafting
the bill, and one of the reasons it was formed was due to the
fiscal responsibility and the amount of money needed to maintain
the ferry system. An area of reflection was the two ferries
that were rebuilt but did not fit the docks and costed "millions
more." She explained that she felt if there was something in
place to anticipate changes that the department might miss, then
those costs could be avoided in the future. She asked Mr. Mills
whether he saw a burden of responsibility that the other
commissions and boards were dealing with on the same level as
AMHS.
MR. MILLS replied that that highlighted an important question,
and one of the areas he would want more from the board would be
that there is a section in HB 63 that spoke to recommendations
and business to enhance revenue and reduce costs; however, he
stated those were not areas the department had largely seen a
focus on, but he looked forward to having conversations on
advice and recommendations for cost efficiency or revenue
generation for AMHS. He further related the need to be creative
and to think about different ways that the ferry system can
provide the service the public expects but in ways not done
before.
1:28:40 PM
REPRESENTATIVE STUTES offered her understanding that the
enactment was expected to be a collaborative effort between the
department and board to work in unison to look to the future and
make AMHS more sustainable and cost-effective with an
understanding that it would always have to be subsidized. She
expressed her confusion as to why EO 131 even exists, and that
it is not good timing due to AMHS working collaboratively for
the good of the state and for the good of the ferry system as a
whole in making it more efficient and effective.
1:31:36 PM
MORGAN GRIFFIN, Assistant Attorney General, Labor and State
Affairs Section, Department of Law, joined the discussion and
stated her intention was to provide the committee with the
Department of Law's (DOL's) understanding of the Constitution of
the State of Alaska. She mentioned "a bit of a dispute" as to
whether it was a violation of the constitution to allow another
branch of government to appoint members to an executive branch.
1:35:19 PM
MS. GRIFFIN explained separation of powers as it pertains to the
constitution and provided an explanation of the three
governmental branches being legislative, executive, and
judicial. She gave examples of how a violation might occur as a
result of attempting to carry out a function of one branch from
another.
1:38:19 PM
CHAIR MCCABE remarked that when the board was constructed, it
was envisioned to be more advisory in nature.
1:39:23 PM
MS. GRIFFIN stated that she brought up the advisory nature
because it is not an aspect of the legal analysis; the question
was whether it really violated the separation of powers. She
added examples of legal authority and following guidance that is
set in statute.
1:42:15 PM
CHAIR MCCABE interjected that "we are in the weeds" in terms of
what the body really needed, and he expressed appreciation for
Ms. Griffin's analysis.
MS. GRIFFIN provided a scenario of the power to appoint and the
power to remove in relation to the governor following the law
and how it could raise constitutional concerns.
1:44:04 PM
REPRESENTATIVE VANCE noted that the same governor signed the
bill thus agreeing to the creation of the board as written in
statute. She questioned why, if there were a separation of
powers issue, it had not been brought up when the bill was
originally before the governor.
1:45:36 PM
MR. MILLS conceptualized that part of the legal argument is that
"this is like a business" where employees have no say over
conduct, performance, or anything else. In relation to the
governor signing the bill, he opined that AMHS needed
collaborative partnerships to move forward. Knowing there is an
issue and DOT&PF has no say over it has presented an issue that
the EO 131 seeks to solve, he said.
1:48:52 PM
REPRESENTATIVE STUTES observed that that legislation went
through DOL before it was enacted into law. She said she was
alarmed to hear there was no control over board members. She
opined that it is beneficial to have a board comprised of
individuals who have different ideas and can collaborate rather
than one in which every member thinks the same. She indicated
that Legislative Legal Services may offer the opposite view that
this is not an infringement on the different parts of the
state's government. She expressed her concern as to what has
motivated EO 131 and opined that the board has been doing well.
1:51:10 PM
CHAIR MCCABE announced that the committee has held a hearing on
SSCR 8 as required by Uniform Rule 49 and the resolution will
move to joint session when scheduled for such a session.
1:52:07 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 1:52
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SSCR08.VerA.3.4.24.pdf |
HTRA 3/7/2024 1:00:00 PM |
SSCR 8 |
| ExecutiveOrder131.3.4.24.pdf |
HTRA 3/7/2024 1:00:00 PM |
|
| HB0376A.3.6.24.pdf |
HTRA 3/7/2024 1:00:00 PM |
HB 376 |
| HB 376 Sponsor Statement.3.6.24.pdf |
HTRA 3/7/2024 1:00:00 PM |
HB 376 |
| HB 376 Sectional Analysis.3.6.24.pdf |
HTRA 3/7/2024 1:00:00 PM |
HB 376 |
| HB376.Fiscal Note DOLWD.3.1.24.pdf |
HTRA 3/7/2024 1:00:00 PM |
HB 376 |
| HB376 Support Letter DeliveryNetworkCo 3.05.24.pdf |
HTRA 3/7/2024 1:00:00 PM |
HB 376 |