Date: 04/02/2014
Final
BILL SUMMARY for SB14-125
HOUSE COMMITTEE ON TRANSPORTATION & ENERGY
| Votes: View--> | Action Taken: |
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02:18 PM -- SB 14-125
Representative Tyler stated that there will be witness testimony on Senate Bill 14-125 but that no vote would be taken today and that he is laying over the bill over for action-only at a later date. The committee took a brief recess.
02:32 PM
The committee came back to order. Representative Tyler announced that proponents and opponents would have a total of 2 hours and 15 minutes each to provide public testimony. He said that the committee will vote on the bill on Wednesday, April 9. Representatives Pabon and Szabo, prime sponsors, presented Senate Bill 14-125. The reengrossed bill creates a limited regulatory structure for transportation network companies (TNCs) that use digital networks to connect riders to drivers who provide transportation in their personal vehicles. TNCs are exempt from the regulation for common carriers, contract carriers, and motor carriers but must be permitted by the Public Utilities Commission (PUC) in the Department of Regulatory Agencies as long as they meet certain requirements. These include:
• filing a certificate of insurance with the PUC for $1 million primary liability coverage per occurrence for incidents occurring while a network driver has a rider;
• requiring personal automotive liability insurance for all drivers;
• conducting, or having a certified mechanic conduct, a vehicle safety inspection prior to providing service and at least once per year thereafter;
• obtaining criminal history record checks and driving history reports on prospective drivers;
• prohibiting the use of drivers with certain felony convictions or moving violations; and
• providing prospective drivers and riders with specific disclosures.
Fees for a one-year permit must not exceed a total of $215,000, divided evenly among all TNCs unless the General Assembly determines an increased aggregate amount is necessary. Funds will be deposited into the newly created, and continuously appropriated, Transportation Network Company Account in the PUC Motor Carrier Fund. The PUC may promulgate rules concerning administration, fees, safety requirements, and financial responsibility requirements. After the first year, fees must be set and adjusted by rule to cover the PUC's direct and indirect costs for regulation of TNCs. The PUC may take an enforcement action against a TNC. A TNC that fails to comply with a PUC order, decision, or rule is subject to a penalty of up to $11,000 per offense depending on the violation. The PUC cannot assess a penalty against a TNC driver. The bill clarifies that a prearranged ride provided by a TNC driver is considered a livery conveyance for insurance purposes. The time that a TNC driver is logged into the TNC network but not providing a prearranged ride, is not considered livery conveyance.
Representative Szabo discussed the intent of the bill and gave a brief overview of a typical TNC driver. She commented on insurance coverage. Representative Pabon said that there are few jurisdictions that have engaged the amount of time to get to this point today. He said that the bill is innovative and commented on transportation needs in the state. He said that the bill provides innovative transportation options provided by TNCs. Representative Lee asked for more information about primary coverage for TNC drivers. Representative Szabo said that when a TNC driver has a passenger in the car, there is commercial insurance and explained when other layers of insurance are relevant. Representative Lee expressed concern about the commercial exclusion. Discussion ensued concerning insurance coverage for TNC drivers under certain circumstances.
02:50 PM
Representative Kraft-Tharp expressed concern about insurance coverage and asked if the driver will be responsible for purchasing the commercial policy. Representative Pabon commented on how to use the Uber app and said that the app will know the time and distance from the pick-up vehicle. He commented on commercial coverage for the driver of the vehicle under the contingent liability policy. Representative Coram asked about the difference between a pizza delivery driver's insurance compared to insurance coverage for Uber drivers under the bill. Discussion ensued concerning commercial activity and insurance coverage.
02:58 PM
Discussion ensued concerning contingent liability policies for drivers.
03:07 PM
Representative Peniston said that there is already livery service in Colorado and that there are plenty of rules related to that service. She said that it needs to be fair for current and future drivers. She asked for more information about policy minimums for Uber.
03:12 PM
Representative Ginal asked about medical certificates for drivers and if TNC will drivers have a similar type of qualification. Representative Mitsch Bush asked for more information about why the pre-arranged ride insurance is capped at $1 million. Representative Pabon said the idea was to have a least common denominator and that the sponsors thought it was a good starting point for the discussion. Representative Mitsch Bush asked about surge pricing and how it would work in a resort community. Discussion ensued concerning vehicle safety inspection requirements for TNCs.
03:21 PM
Representative Moreno asked about anti-discrimination standards and whether the sponsors would be open to anti-discrimination standards for TNCs. Representative Kraft-Tharp commented on the issue of workers' compensation.
03:28 PM
Representative Mitsch Bush asked about liens on vehicles and how they are disclosed. Representative Pabon commented on proposed amendments to the bill.
The following people testified on the bill:
03:38 PM -- Jack Finlaw, representing the Governor's Office, testified on the bill. He commented on the importance of protecting public safety. He responded to questions from the committee.
03:45 PM -- Bobbie Baca, representing the Department of Regulatory Agencies, testified on the bill. She commented on loss adjustment costs and intended consequences of the bill's impact on livery services. She responded to questions from the committee.
03:54 PM -- Brittany Cameron, representing Lyft, testified in support of the bill. She commented on the importance of TNCs.
03:59 PM -- Marissa Newhouse, representing herself, testified in support of the bill. She gave an overview of her experience using Lyft. Representative Moreno asked if there are any drivers that work with Lyft on a full-time basis. Representative Szabo said that the average Lyft driver drives five to ten hours per week.
04:04 PM -- David Estrada, representing Lyft, testified in support of the bill. He commented on his Lyft experience. He said that opponents to the bill are worried about competition. Representative Moreno asked why not have a business model that reimburses people for the expense of transporting people places. Mr. Astrada responded to questions about the Lyft business model. Mr. Estrada responded to questions about the Lyft background check. He responded to a question about whether Lyft would approve of non-discrimination language in the bill to respond to concerns that TNC's may not pick up individuals with disabilities, service dogs, on the basis of race, class, gender, and so on. In response to a follow-up question, Mr. Estrada stated that the 5 percent of customers who are not picked up by Lyft are the result of a high demand on drivers and not enough drivers. He discussed the rapid growth of the company and responded to a question about rider rating. Representative Tyler asked a question about the divide Lyft's dependence on credit cards, a Facebook page, and an internet connection.
04:33 PM -- Ali Vazir, representing UberX, testified in support of the bill and distributed a handout to the committee (Attachment G). Mr. Vazir discussed his experience transitioning from a taxi driver to an UberX driver and stated that his experience was similar to emancipation. He stated that the opposition to the bill was fear-mongering, because TNCs represent one of the most exciting developments in transportation. Mr. Vazir discussed the burdensome rate of annual dues at Metro Taxi.
140402 AttachG.pdf
04:49 PM -- Susan Dolph, representing herself, testified in opposition to the bill. She expressed concerns about the bill applying to the American Disabilities Act.
04:53 PM -- Will McCollum, representing UberX, testified in support of the bill. He commented on Uber's insurance practices and safety inspections. Representative Kraft-Tharp commented on Mr. McCollum's testimony and stressed the importance of public safety. She asked about the privacy of information with use of the Uber app. Representative Peniston asked about whether the bill should cover workers' compensation. Representative Everett asked about the impact of the bill on security. Representative Mitsch Bush asked about vehicle safety inspections. Discussion ensued concerning limits on drivers using the Uber app.
05:15 PM -- Larry Stevenson, representing the City and County of Denver, testified on the bill. He commented on the importance of customer service and safety.
05:23 PM -- Fran Lanzar, representing Mothers Against Drunk Driving, testified in support of the bill.
05:27 PM -- Matt Cheroutes, representing the Colorado Cleantech Industry Association, testified in support of the bill.
05:28 PM -- Mark Mulvaney, representing Milliman, testified in support of the bill. He distributed a handout to the committee (Attachment H). He responded to questions from the committee.
140402 AttachH.pdf
05:39 PM -- Bill Kirven, representing UberX, testified in support of the bill. He responded to questions from the committee.
05:53 PM -- Nissa Szabo, representing Colorado Technology Association, testified in support of the bill.
05:56 PM -- Michele Haedrich, representing herself, testified in support of the bill. She responded to questions from the committee.
06:01 PM -- Sherri Flesher, representing herself, testified in support of the bill. She commented on her experience as an Uber driver. She responded to questions from the committee.
06:08 PM -- Altaye Desta, representing UberX, testified in support of the bill.
06:12 PM -- Greg Sopkin, representing UberX, testified in support of the bill. He responded to questions from the committee concerning the cost of Uber and proposed amendments to the bill.
06:25 PM
Representative Pabon said that Will Toor, representing SWEEP, had to leave but that he is in support of the bill. The committee took a brief recess.
06:43 PM
The committee came back to order.
06:44 PM -- Todd Gardner, representing High Mountain Taxi, testified in opposition to the bill. He commented on the TNC market and the seasonal market in Aspen. Representative Lawrence asked if there are other cab companies operating in Aspen. Mr. Gardner said that his company is the only company in Aspen. Discussion ensued concerning surge pricing and the high season in resort areas in the state.
07:03 PM -- Doug Dean, representing the PUC, testified on the bill. He stated that the PUC is neutral on the bill and would like to see amendments to allow TNCs to operate in Colorado. He commented on the insurance gap issue and said that the PUC would like to see certainty where the drivers are protected. He said that a requirement to allow PUC to promulgate rules on the insurance gap issue is crucial. He commented on TNC regulation and said that Colorado has an opportunity to be a model law for other states. He said that currently the bill says that the insurance companies only provide coverage from the moment the driver is electronically hailed to the time it drops off the passenger. He addressed issues that the PUC would like addressed through amendments. He responded to questions from the committee concerning TNC regulation, vehicle safety inspection, and surge pricing.
07:26 PM -- Bob Passmore, representing Property Casualty Insurance of America, testified in opposition to the bill. He commented on his concerns with the bill related to insurance. He responded to questions from the committee.
07:41 PM -- Julie Reiskin, representing the Colorado Cross-Disability Coalition, testified in opposition to the bill.
07:48 PM -- Kyle Brown, representing Metro Taxi, testified in opposition to the bill. He gave a brief overview of his company and commented on the services they offer, including access for seniors and the disabled. Representative Lawrence asked how many taxis that Metro Taxi has in its fleet that can accommodate disabled persons. Representative Coram asked if Metro Taxi does random drug testing for drivers. Discussion ensued concerning Metro Taxi and how it operates.
08:14 PM -- Phil Hayes and Lisa Bolton, representing the Colorado AFL-CIO, testified in opposition to the bill. Mr. Hayes commented on his concerns with the bill and responded to questions from the committee. Ms. Hayes commented on her opposition to the bill.
08:36 PM -- Brad Whittle, representing Yellow Cab, testified in opposition to the bill. Max Sarr, representing Freedom Cab, testified in opposition to the bill.
08:55 PM -- Debra Susan Moore, representing herself, testified in opposition to the bill.
08:57 PM -- Lyle Merrick, representing himself as a Yellow Cab taxi driver, testified in opposition to the bill. K.J. Paradise, representing himself as a Yellow Cab taxi driver, testified in opposition to the bill. Elias Alemayo, representing himself as a Yellow Cab taxi driver, testified in opposition to the bill. Mohamed Abukar, representing himself as a Yellow Cab taxi driver, testified in opposition to the bill.
09:12 PM -- Ed Szmajter, representing himself as a Union Taxi Cooperative taxi driver, testified in opposition to the bill.
09:18 PM -- K.J. Paradise, representing Yello Cab, testified in opposition to the bill.
09:21 PM -- Joshua Gaines, representing ABC Shuttle, testified in opposition to the bill.
09:22 PM -- Jo Ann Vann, representing Boulder Yellow Cab, testified in opposition to the bill.
09:26 PM -- Jamal Said, representing himself as a Union Taxi driver, testified in opposition to the bill.
09:28 PM -- Steve Clemens, representing Colorado West Insurance, testified in opposition to the bill.
09:29 PM
Representative Tyler reminded the committee that the bill would be heard for action only on Wednesday, April 9. The committee adjourned.