Legislature(2017 - 2018)SENATE FINANCE 532
05/16/2017 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB132 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 132 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
May 16, 2017
5:53 p.m.
5:53:54 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 5:53 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Shelley Hughes
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Laura Stidolph, Staff, Representative Adam Wool; Senator
Mia Costello; Anna Latham, Deputy Director, Division of
Insurance, Department of Commerce, Community and Economic
Development.
SUMMARY
CSHB 132(L&C)
TRANSPORTATION NETWORK COMPANIES
CSHB 132(L&C) was REPORTED out of committee with
a "no recommendation" and with two previously
published zero fiscal notes: FN1 (CED) and FN2
(LWF).
CS FOR HOUSE BILL NO. 132(L&C)
"An Act relating to transportation network companies
and transportation network company drivers; and
providing for an effective date."
5:54:56 PM
LAURA STIDOLPH, STAFF, REPRESENTATIVE ADAM WOOL, explained
that HB 132 allowed transportation network companies (TNC)
to operate in Alaska by clarifying the workers'
compensation act by exempting TNC drivers. She reviewed the
Sectional Analysis for version I of the bill (copy on
file):
Section 1: Describes legislative intent of the bill is
to clarify the Alaska Workers' Compensation Act and
its relationship to transportation network company
drivers. No difference.
Section 2: Offers immunity to the state if civil
action is taken against a transportation network
company. No difference.
Section 3: Amends AS 21.96 by adding a new section
21.96.018 relating to transportation network company
insurance provisions. Allows for automobile insurance
writers to exclude any driver who is logged onto the
digital network of a transportation network company or
while a driver provides a ride. No difference.
Section 4: Amends AS 23.30.230(a) to exclude
transportation network company drivers from the Alaska
Workers' Compensation Act. No difference.
Section 5: Amends AS 23.30.230(c) by adding the
definitions for "digital network," "prearranged ride,"
"transportation network company," and "transportation
network company driver." No difference.
Section 6: Amends AS 28 by adding a new chapter,
Chapter 23, Transportation Network Companies and
Drivers. AS 28.23.010. Relates to fares collected by
transportation network companies for services. No
difference. AS 28.23.030. Governs identification
required for transportation network vehicles and
drivers. No difference. AS 28.23.040. Requires
electronic receipts. No difference. AS 28.23.050. Sets
insurance requirements for transportation network
companies and drivers. No difference.
5:58:08 PM
Senator Micciche asked about the "no difference" language.
Co-Chair MacKinnon explained that the bill was a companion
bill and the comparison was between the two pieces of
legislation.
5:59:08 PM
Ms. Stidolph continued addressing the Sectional Analysis:
AS 28.23.060. Requires transportation network
companies to provide automobile insurance disclosures
to drivers. No difference.
AS 28.23.070. Requires that transportation network
companies to file a certificate of insurance with the
division of insurance. No difference.
AS 28.23.080. Provides that transportation network
companies are not employers and that drivers are
independent contractors, not employees. Exempts this
section if TNC is owned or operated by the state, a
municipality, a federally recognized tribe, or entity
that is exempt from federal taxation under 26 U.S.C.
501(c)(3) (Internal Revenue Code). Added language.
This change was by request of the US Department of
Labor, Employment and Training Administration, to the
Alaska Department of Labor and Workforce Development
for conformity to Federal unemployment compensation
(UC) law. In order to preserve the tax credits now
available to Alaska employers, this provision needed
to be added to make it clear that the state
unemployment tax must be paid for all employees of
state and local governments, Indian tribes, and non-
profit organization. Any exclusion from the definition
of employment must not apply to these entities.
AS 28.23.090. Requires implementation of zero
tolerance drug and alcohol policy. No difference.
AS 28.23.100. Sets transportation network company
driver requirements. Requires local and national
criminal background check, multi-state or multi-
jurisdiction criminal records locator, the US Dept. of
Justice National Sex Offender public website (driver
is disqualified if they are listed on this), and
obtaining a driver history report. Disqualifies a
driver if in the past seven years they have been
convicted of: an unclassified, class A, or class B
felony; a DUI while operating a motor vehicle,
watercraft, or aircraft; refusal to submit to a
chemical test; a violent crime against a person; not
rendering assistance after an accident. Disqualifies a
driver if in the past three years if they have been
convicted of or forfeited bail for a third or
subsequent moving traffic violation or been convicted
of: driving without a license; failure to stop at the
direction of a police officer; reckless or negligent
driving. Added and amended language. Cleaned up
language in the three year driving history look-back,
and seven year criminal history look-back that was in
SB14. The language that passed the Senate was very
restrictive and would have prohibited someone who was
found guilty of shoplifting to drive for a TNC. If a
person has committed a violent crime, either felony or
misdemeanor, in the past seven years they may not
drive for a TNC. A conviction of any unclassified,
class A, or class B felony in the past seven year will
also disqualify a person as a driver. The new language
makes it clear that a driver on the US DOJ National
Sex Offender list may not drive for a TNC. Also, if a
person has been convicted of driving under the
influence while operating a vehicle or watercraft in
the past seven years they may not drive for a TNC.
Driver must be 21 years of age. Added language. This
change was made due to state statute regarding alcohol
and marijuana, so if either substance was left in the
car after a rider had disembarked the driver wouldn't
be breaking state law by being in possession due to
being underage.
Driver may not solicit a rider or accept a street
hail, may only provide a prearranged ride through the
TNC platform, or solicit or accept cash payments.
Added language. The final language in this subsection
was added to make clear that TNC drivers may only
accept rides from the TNC platform, they do not
operate like other for-hire vehicles by soliciting
riders or accepting street hails, and that the payment
is through a cashless system. Payment in this section
does not include tips, which can be cash.
6:02:39 PM
Ms. Stidolph continued to address the Sectional Analysis:
AS 28.23.105 19-point safety inspection required.
Driver's car may not be older than 12 years old. Added
language. This language, which is standard terms of
services for major companies like Uber and Lyft, was
added to statute so that every TNC operating in Alaska
will be held to a high standard for vehicle safety and
quality
AS 28.23.110. Relates to mandatory rules and policies
governing non-discrimination and accessibility
protected under AS 18.80.210. No difference.
AS 28.23.120. Provides for maintenance of records.
Changed from one year of recordkeeping to two years.
AS 28.23.030. The Department of Transportation &
Public Facilities may under AS 02.15, enter into a
contract, lease, or other arrangement with a TNC for
use of an international airport owned or operated by
the state. The Department of Transportation approached
the sponsor about this revision which will allow for
DOT to enter into a contract, lease or other
arrangement with TNCs at Ted Stevens International
Airport and Fairbanks International Airport.
AS 29.23.180. Provides definitions for the chapter. No
difference.
AS 28.23.190 States that the short title of the
chapter may be cited as the "Transportation Network
Companies Act." No difference.
6:04:17 PM
Ms. Stidolph addressed the remaining sections of the
Sectional Analysis:
Section 7: Amends AS 29.10.200 to add paragraph (66),
adding AS 29.35.148 (regulation of transportation
network company or drivers) as home rule prohibitions
on acting otherwise. No difference.
Section 8: Amends AS 29.35 by adding AS 29.35.148,
which provides that the authority to regulate
transportation network companies and transportation
network drivers is reserved to the state. Provides
that an imposition of a municipal sales tax may be
applied to a trip originating in the municipality on
TNC drivers. Municipal traffic ordinances must be
followed. Municipalities may by ordinance ratified by
the voters in a regular municipal election prohibit
TNCs from conducting activities. Added language.
Allows for municipalities to impose a sales tax on the
TNC driver. Ensures that municipal traffic ordinances
must be followed. Allows for local-opt out with a vote
of the people in a general election.
Section 9: This Act takes effect immediately. No
difference.
6:05:35 PM
Senator Micciche had a difficult time believing that
Section 8 was enforceable. He asked Ms. Stidolph to provide
greater detail and background regarding the sales tax. He
gave the example of a ride that begins within the
municipality and ends outside the jurisdiction.
Ms. Stidolph articulated that the bill sponsor had spoken
with the major companies involved in the legislation. She
specified that it was possible through technology to
identify where the trip originated and apply appropriate
tax.
Senator Micciche asked if the language clarified that the
point of origin defined the taxability of the fare.
Ms. Stidolph referred to page 14, line 7 of the bill:
...company driver that taxes a trip originating in the
municipality in the same manner that other services
are taxed in the municipality;
6:07:36 PM
Vice-Chair Bishop referred to a section requested by
Department of Transportation and Public Facilities (DOT).
He asked whether the department had indicated the reason
for its request.
Ms. Stidolph considered that the primary concerns of the
department had pertained to the Ted Stevens International
Airport and controls over the traffic flow in the area.
Vice-Chair Bishop stated he would follow up directly with
the department.
6:08:35 PM
Senator Hughes stated she was an early adopter of network
services. She thought that transportation network companies
would be very popular with people from the Palmer area and
wanted to ensure that they could be dropped off close to
the airport.
Ms. Stidolph thought that DOT had not been concerned with
regulating the network. The language was done so that the
department could have some amount of control but not to
restrict it.
Co-Chair MacKinnon asked Vice-Chair Bishop, as the DOT
operating budget subcommittee to enquire regarding Senator
Hughes' question. She mentioned Senator Mia Costello's
legislation regarding similar transport services. She asked
Vice-Chair Bishop to speak with the commissioner on behalf
of the committee to supply the relative regulations.
6:11:15 PM
Senator Micciche referred to page 14, "a municipality may
by ordinance ratified by the voters in a regular municipal
election prohibit transportation network companies from
conducting activities under AS 28.23 within the
municipality." He asked whether that included the terminus
of the trip or whether the service could enter into a
municipality that chose not to have those services.
Ms. Stidolph believed that a driver could drop a passenger
within the municipality, but could not pick up a driver.
Senator Micciche thought it broke out the sales tax but not
the example of a drop-off within a municipality that did
not allow those services.
Co-Chair MacKinnon thought Senator Micciche had made a good
point, and suggested that point of origin versus the drop-
off point could be handled in regulation. She thought it
would be helpful to have a legal opinion on the matter. Her
understanding was that a trip could be dropped off but not
picked up within a municipality that did not allow those
services.
6:13:53 PM
Co-Chair MacKinnon explained that Senator Mia Costello had
a companion bill currently in the House Rules Committee.
SENATOR MIA COSTELLO, remarked that her position on the
bill remained unchanged from her earlier testimony before
the committee.
ANNA LATHAM, DEPUTY DIRECTOR, DIVISION OF INSURANCE,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
discussed the fiscal notes. She communicated that the
Division of Insurance had submitted a zero fiscal note. She
explained that there had been no substantive changes
between the [companion] Senate Bill [SB 14] and HB 132.
Vice-Chair Bishop discussed that FN2 from the Department of
Labor and Workforce Development, (OMB component number 344)
was a zero fiscal note.
Vice-Chair Bishop MOVED to report CSHB 132(L&C) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 132(L&C) was REPORTED out of committee with a "no
recommendation" and with two previously published zero
fiscal notes: FN1 (CED) and FN2 (LWF).
6:17:06 PM
AT EASE
6:19:15 PM
RECONVENED
Co-Chair MacKinnon reviewed the next day's calendar.
ADJOURNMENT
6:20:00 PM
The meeting was adjourned at 6:19 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB14 ver I.A to CS for HB132 ver I Explanation of Changes.pdf |
SFIN 5/16/2017 1:30:00 PM |
HB 132 SB 14 |