Legislature(2003 - 2004)
03/02/2004 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
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+ teleconferenced
= bill was previously heard/scheduled
HB 423-TAXICAB DRIVER LIABILITY [Contains discussion of HB 68.] Number 0960 CHAIR WEYHRAUCH announced that the next order of business was HOUSE BILL NO. 423, "An Act relating to accidents involving the vehicle of a person under the influence of an alcoholic beverage; and providing for an effective date." Number 0985 JIM SHINE JR., Staff to Representative Tom Anderson, Alaska State Legislature, presented HB 423 on behalf of Representative Anderson, sponsor. Mr. Shine read his testimony as follows: House Bill 423 is a "Good Samaritan" bill for taxicab operators who transport intoxicated persons or who drive an intoxicated person's motor vehicle to their home or another directed location. This legislation would create a deterrent for those who might otherwise drive impaired if unable to find an alternative method of transportation. It grants taxicab companies legal immunity in the event that an accident occurs, except in the case of recklessness, gross negligence, or intentional misconduct. MR. SHINE, in response to a question from Chair Weyhrauch, confirmed that the order of committee referral was reversed from how it shows on the bill; therefore, the House State Affairs Standing Committee is the first committee of referral and the House Judiciary Standing Committee is the second. He continued reading his testimony as follows: There are times when Alaskans find themselves in an "end-of-evening dilemma" - they are over the .08 blood alcohol limit and shouldn't drive, but are worried and reluctant to leave their car unattended overnight. HB 423 resolves this dilemma by allowing a taxicab operator to drive an intoxicated person home while a second operator follows them home in their vehicle. This legislation would allow the intoxicated person and his or her vehicle to get home safely without the taxicab operator fearing liability. HB 423 promotes responsible behavior and encourages people to do the right thing and not drive while intoxicated. While annual alcohol-related traffic fatalities have decreased by more than 33 percent over the past few decades, the latest statistics show a recent increase with more than 17,400 people killed and more than half a million others injured in alcohol-related crashes in 2002 in the United States. Alaska had 87 traffic deaths, of which 35 were alcohol-related, [which equated to] 40 percent in 2002. The previous year, there were 47 alcohol-related deaths out of the 89 deaths, which equated to 53 percent. In order for this program to be successful, cab companies and liquor establishments must work and communicate closely. These establishments will implement the following strategies and policies: Place signs near pay phones, direct lines to cab companies, and other conspicuous areas of the establishment, such as restrooms and exits; train the establishment staff on the availability of this program and how to inform patrons, and how to implement the process; make public service announcements at closing time to help influence patrons to use the program; pay a portion of the cab fare cost agreed upon by establishments and program officials; and track program usage to assess effectiveness to promote and or improve the program. MR. SHINE noted that the Checker Cab Company in Anchorage has set some guidelines for the program. He shared those written guidelines, which read as follows [some punctuation changed]: A minimum of six designated taxi drivers on duty every night to be available for this program. A flat $40 fee per car delivery made from any licensed establishment to one destination in the Anchorage area, for both the patron and his/her vehicle. Every car delivery that is done will be logged into a logbook in the dispatch office, to ease in the tracking of the progress of this program and how well it is working to benefit the community. Training of taxicab drivers and dispatch employees so designated drivers will be able to cover the car deliveries safely. Promote, with all the taxi drivers' help, how this program is available to all customers heading to any drinking establishment in the Anchorage area. It is a convenient way to enjoy all [licensed] establishments without worrying about retrieving a vehicle the next day. MR. SHINE continued reading his testimony as follows: This service will be free to the consumer. The cab companies will receive $40 for each trip they make. It's a reduced flat rate for transportation anywhere in the Anchorage bowl area. This legislation is supported by Mother's Against Drunk Drivers (MADD), and there is a letter of support in your bill packet. This bill is identical to House Bill 68, which unanimously passed the House in the 22nd legislature by a vote of 37-0. In the Senate, it passed through the [Senate Transportation Standing Committee], but stalled in the [Senate Judiciary Standing Committee] and was never heard. MR. SHINE noted that Darwin Biwer was available to testify. He said he would answer questions from the committee, but would defer any technical questions to Mr. Biwer. Number 1256 DARWIN BIWER, Board Member, Cabaret Hotel Restaurant & Retailers Association (CHARR), explained the formation of HB 423, stating that it was a concept brought forth by two CHARR board members, Rod Pfleiger and John Pattee. He said that HB 423 was another example of the liquor industry trying to promote safe driving; CHARR had supported previous, similar legislation that stalled in the Senate. He said that HB 423 was a "housekeeping" bill, so the liability [insurance] for taxicab companies would be lower. He reiterated that there would be no costs to the consumer with the passage of HB 423; those costs would be [paid] by the liquor companies and [through] donations. Number 1395 REPRESENTATIVE HOLM first complimented CHARR, specifically in Anchorage, for bringing forth HB 423. He indicated that he had witnessed the successful implementation of a similar process in Canada, where a connection has been made between taxicab companies and liquor establishments. REPRESENTATIVE HOLM, noting that [drinking and driving] is a statewide problem, and HB 423 is enacting a statewide policy, asked Mr. Biwer how CHARR was interacting with the other communities in Alaska. MR. BIWER stated that there is a pilot program enacted in Anchorage, and CHARR wanted to implement the program, work the bugs out, and then take it to other communities within the state. REPRESENTATIVE HOLM thanked Mr. Biwer and stated that he thought that HB 423 was a very responsible thing that establishment owners did to take care of the public. Number 1509 REPRESENTATIVE BERKOWITZ asked if there was a "sunset date" on the Anchorage pilot program, and he said, if not, CHARR should think about implementing one or going statewide from the start. He also asked who would bear the costs if there was an accident as a result of negligence on the part of a taxi driver. MR. BIWER stated that he wasn't the person to talk about insurance rates, but he thought that there was a representative from Allstate Insurance that was present, who would be able to answer that question. He stated that the purpose of HB 423 is to reduce the insurance rates for the taxicab companies to give them incentive to participate in the program. REPRESENTATIVE BERKOWITZ asked if there have been any assurances from the insurance companies that rates will go down with the passage of HB 423. MR. BIWER said that the rates for a taxi would be somewhere around $1000 a month if HB 423 was not passed. He cited that as one of the reasons that HB 423 was introduced; so rates would go down and the pilot program could be implemented. CHAIR WEYHRAUCH cited the earlier testimony from Mr. Biwer, when he said there would be no costs to the consumer, and asked what costs were involved. MR. BIWER responded that the cost would be for the cab ride and the two cab drivers. He said that the Anchorage taxicab companies have set a flat rate of $40, regardless of distance, within the Anchorage bowl area. REPRESENTATIVE WEYHRAUCH asked for an annual estimate for expenses that would be required industry-wide. MR. BIWER said that CHARR was going to apply for federal grants, and has had financial commitments from liquor distributors, so there really is no fiscal note. In response to further questions, he stated that many establishments already bear some costs because they pay for cab rides for their patrons. He said that CHARR felt that HB 423 was a better way to go about doing that. He made the comment that this was a pilot program and CHARR doesn't have all the answers to those questions yet. Number 1737 REPRESENTATIVE GRUENBERG asked what position Frank Dahl held in CHARR. MR. BIWER responded that Mr. Dahl is on the Board of Directors of Anchorage CHARR. Number 1800 REPRESENTATIVE SEATON noted that in HB 423 there was no mention if the vehicle driven already had insurance. He stated that this may be a situation where [the legislature] is giving liability for negligence to a driver of an uninsured vehicle who then gets into an accident. He said that it would seem like there will be some fallback to the people who are paying for the driver. He stated that he didn't think that the legislature was to the point where it would grant someone total immunity just to get an intoxicated person's car home. He stated that it is risking a victims injuries without someone being liable. He asked Mr. Biwer to think about that and address that issue when the committee next discusses HB 423. [HB 423 was heard and held.]
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