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Minutes for HB2019 - Committee on Transportation
Short Title
Establishing conditions for when a driver is an independent contractor for a transportation network company.
Minutes Content for Wed, Mar 15, 2023
Chairperson Petersen called the meeting to order at 8:32 a.m. and opened the hearing on HB2019.
Assistant Revisor Adam Siebers briefed the Committee on the bill (Attachment 1). He explained that the bill establishes the conditions for when a transportation network company (TNC) driver is an independent contractor for a TNC and not considered an employee: no specific hours, not limited from driving for other TNCs, not limited from working other jobs, and having a written statement that the driver is an independent contractor.
Harry Hartfield, Uber Technologies, testified as a proponent for the bill (Attachment 2). He outlined the process for becoming a Uber driver and stated that the bill enshrines rideshare drivers' ability to work when, where, and on what rideshare platform they want. He commented that the bill mirrors laws in more than 20 states with a focus that covers only TNCs like Uber and Lyft and does not change how other businesses may interact with independent contractors. He cited studies and social surveys to illustrate the values offered by rideshare, and he commented that the bill removes any uncertainty about the status of TNC drivers.
Mr. Hartfield responded to members' questions:
- Missouri has the same law being proposed by HB2019.
- The lawsuit in California was decided in Uber's favor by an appeals court.
- A driver is free to accept or reject any ride offer, and he/she knows what the charge will be before accepting the job.
- Eighty percent of drivers work fewer than 20 hours a week.
The chair noted one written-only testimony supporting the bill:
- Steven Greenhut, Senior Fellow, Western Region Director, R Street Institute (Attachment 3).
Matt Hall, Political Coordinator, Teamsters Joint Council 56, spoke in opposition to the bill (Attachment 4). He said the bill erodes labor rights and gives special preference to one industry at the expense of other other companies in Kansas. He said the bill initiates a "slippery slope" that will entice other companies to seek a special advantage.
Members offered several comments:
- Because rideshare is a mostly unregulated industry, there is a concern that they can be free to exploit workers.
- The rideshare industry is a free-market enterprise with drivers who are subject to Social Security payments and other obligations.
- The possibility of the bill initiating a slippery slope seems to justify concerns about the bill.
- The bill is not a "carve-out," but simply clarifies the status of rideshare drivers.
The Chair referenced written-only testimony in opposition to the bill:
- Joe Hudson, Regional Political Director, Mid-America Carpenters Regional Council (Attachment 5).
The Chair closed the hearing on HB2019.
