SB 14-TRANSPORTATION NETWORK COMPANIES  5:16:12 PM CHAIR LEDOUX announced that the first order of business would be CS FOR SENATE BILL NO. 14(FIN) am, "An Act relating to transportation network companies and transportation network company drivers; and providing for an effective date." [Before the committee was HCS CSSB 14(L&C).] 5:16:20 PM REPRESENTATIVE CLAMAN moved to adopt the proposed House committee substitute (HCS) for CSSB 14, Version 30-LS0250\P, Wallace, 4/4/18, as a working document. REPRESENTATIVE EASTMAN objected. REPRESENTATIVE KITO objected. 5:16:38 PM REPRESENTATIVE EASTMAN spoke to his objection. He said he thought "the bill accomplished what I wanted it to last year when we passed it" and he does not want to change it. 5:16:49 PM REPRESENTATIVE KITO spoke to his objection. He said he had not heard about the proposed change until yesterday and had not seen Version P until today. He echoed Representative Eastman's appreciation of the work that had been done on the bill last year [in the House Labor and Commerce Standing Committee] when the issue of sales tax applicability had been vetted. He indicated that the issue is whether or not the legislature may need to provide more provisions for municipalities to be able to implement or collect sales tax through transportation network companies (TNCs). He expressed concern that this topic is being brought up in the last week of legislative session when the issue could have been discussed over the last three months. He further expressed concern that there would be little public involvement regarding the change proposed [under Version P], and he opined this change should go through the full legislative process. 5:18:06 PM A roll call vote was taken. Representatives Claman, Stutes, Chenault, Reinbold, and LeDoux voted in favor of the motion to adopt the proposed HCS for CSSB 14, Version 30-LS0250\P, Wallace, 4/4/18, as a working document. Representatives Kito and Eastman voted against it. Therefore, by a vote of 5-2, Version P was before the committee as a working document. 5:18:50 PM COURTNEY ENRIGHT, Staff, Representative Gabrielle LeDoux, Alaska State Legislature, explained the change proposed under Version P is a technical one that would allow [municipalities to require] TNCs to collect [and pay] a municipal sales tax on behalf of their drivers. 5:19:12 PM REPRESENTATIVE KITO requested the committee hear testimony from representatives of TNCs. CHAIR LEDOUX informed Representative Kito that the committee would not be hearing invited testimony. 5:19:29 PM REPRESENTATIVE CHENAULT asked if municipalities in Juneau or other places in the state collect sales tax on cab fares. 5:19:56 PM MS. ENRIGHT offered her understanding that is correct. 5:20:14 PM REPRESENTATIVE KITO expressed concern about making the proposed change without hearing from people on the record saying that "this is something that they really want." CHAIR LEDOUX indicated there are two letters in the committee packet - one from the City & Borough of Juneau (CBJ) and one from the Alaska Municipal League - "supporting this bill in its current form." REPRESENTATIVE KITO noted that as chair of the House Labor and Commerce Standing Committee, he provides the opportunity for invited testimony, and he requested the opportunity be provided by the House Rules Standing Committee. CHAIR LEDOUX reiterated there would be no invited testimony on SB 14. REPRESENTATIVE KITO asked for public testimony to be offered. CHAIR LEDOUX responded there would be no public testimony today. REPRESENTATIVE KITO posited therefore that there was not adequate feedback to support [Version P]. 5:21:32 PM REPRESENTATIVE EASTMAN asked if Version P would affect the types of taxes that could be collected. He offered his understanding that currently the only type of situation that would create a tax is when a fare originates within a municipality. He asked if that would remain the same under Version P. MS. ENRIGHT answered that she does not know what is allowed currently in terms of generating taxes; however, she said she does know that "nothing in this bill changes the existing requirements." REPRESENTATIVE KITO acknowledged that Juneau is one of the communities he represents, and he said he had not seen the aforementioned letter from CBJ until receiving the committee packet. He stated for the record that CBJ did not contact him prior to the meeting to discuss the issue with him. 5:23:01 PM REPRESENTATIVE EASTMAN expressed that his district had significant transportation issues and was hopeful that passage of the proposed legislation would "permit people to travel in ways that they otherwise wouldn't be able to." He said he would be opposing [Version P] because it would only serve to decrease transportation opportunities for his constituents. 5:23:40 PM REPRESENTATIVE CLAMAN moved to report HCS CSSB 14, Version 30- LS0250\P, Wallace, 4/4/18, out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE KITO objected. 5:23:57 PM A roll call vote was taken. Representatives Reinbold, Claman, Stutes, Chenault, and LeDoux voted in favor of the motion to report HCS CSSB 14, Version 30-LS0250\P, Wallace, 4/4/18, out of committee with individual recommendations and the accompanying fiscal notes. Representatives Kito and Eastman voted against it. Therefore, HCS CSSB 64(RLS) was reported out of the House Rules Standing Committee by a vote of 5-2.