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Minutes for SB435 - Committee on Commerce

Short Title

Providing for the use of personal package delivery devices on sidewalks and crosswalks, exempting such devices from motor vehicle regulation and preempting additional municipal regulation.

Minutes Content for Wed, Mar 11, 2020

Chairperson Lynn opened the hearing on SB 435 and requested Assistant Revisor Charles Reimer to provide an overview of the bill.

Senator Doll asked whether cities have the right to use local control to prevent the use of these devices.  Mr. Reimer replied the bill preempts local control. 

Chairperson Lynn recognized Jennie Massey, Amazon, who presented testimony in support of the bill.  Amazon launched Scout - a fully electric, autonomous delivery system in January 2019.  The device is the size of a cooler and operates at about the same speed as the average person walks.  Scout has been designed for safety and accessibility and is able to stop, or safely navigate around pedestrians, pets, and obstacles.  Scout will provide visual and audio cues to alert people sharing the sidewalk of its presence.  Scout will instantly stop if something crosses in front of it.  (Attachment 1)

SB 435 would allow Amazon Scout, and other personal delivery device operators, to bring new technology and innovation to Kansas and can serve as a model for other states in promoting innovation in last-mile delivery.

Senator Doll asked Ms. Massey whether Amazon would be opposed to an amendment that would return local control to the local communities.  Ms. Massey responded an openness to reviewing such an amendment.   

Senator Suellentrop noted the use of scooters in communities and said it would seem the personal delivery devices would be less of a safety hazard than the scooters being used.  He asked about the level of insurance coverage provided by Amazon for the devices and Ms. Massey responded $100,000 property damage coverage. 

Senator Holland said since the bill would appear to exempt local governments from registering the devices, he asked how there would be payment for the infrastructure being used by the devices.  Ms. Massey responded Scout is designed to use sidewalks just like pedestrians use sidewalks.  

Senator Sykes asked Ms. Massey to speak about the cyber security of the devices.  Ms. Massey responded Scout's design includes security measures, including the prevention of hacking.  

Senator Rucker asked whether Amazon was currently paying municipal taxes for the utilization of sidewalks for package delivery.  Ms. Massey responded Amazon was not paying for the use of sidewalks. 

Senator Olson asked if there had been any accidents in the communities in which Scout has been utilized.  Ms. Massey responded there had not been any accidents.

Senator Sykes asked for a cost and time comparison of the use of the standard delivery truck concept versus the Scout delivery method.  Ms. Massey responded she would need to research the data before responding.

Senator Baumgardner asked Ms. Massey for information concerning the number of jobs that have been added due to this new technology's manufacture and upkeep.  

Chairperson Lynn inquired about the types of jobs which would be added if Kansas passes this legislation. 

No written only testimony in support of the bill was provided.

Chairperson Lynn recognized Erik Sartorius, The League of Kansas Municipalities, who presented testimony in opposition to the bill.  While there may be a business plan for using personal delivery devices, the legislation is lacking in attention to public safety.  He questioned how much cargo weight the device could carry, which is a component of the force a personal delivery device will inflict on any persons, vehicles, or other objects it hits.  No provision exists to require reporting of any such damage or require reporting if the device gets stuck in the public right of way.  If in a neighborhood without sidewalks, the devices are allowed unlimited access to "public highways" but may "not reasonably interfere with motor vehicles or traffic".  (Attachment 2)

No penalties exist for ignoring provision of this statute.  The preemption of cities in regulating these devices does not only apply to ordinances that might be created specific to them, but also states municipalities "shall not enforce an ordinance or resolution relating to ... the operations of personal delivery devices ..."  This calls into question whether any ordinance or laws could be applied to personal delivery devices. 

In an emergency situation, public safety officials need to be able to minimize distracting elements without delay.  How does one get the attention of a personal delivery device in an emergency situation? 

If the Committee works the bill, the League will request an amendment having the state indemnify cities from lawsuits resulting from accidents, property damage, or deaths due to the actions of these devices.

Senator Alley asked Mr. Sartorious whether he had been in contact with Amazon to discuss his concerns.  Mr. Sartorius responded he had not yet had contact with Amazon but was willing to work with them on the issues. 

Senator Doll asked whether Mr. Sartorius would be more inclined to support the bill if New Section 3 (a), (b) and (c) were removed from the bill.  Mr. Sartorius responded he thought the Legislature would want to make certain the laws that have been passed about motor ways, public highways and sidewalks and pedestrians would be enforced.  

Senator Suellentrop noted some of the issues being raised about the safety of the personal delivery devices could be raised about children in neighborhoods driving their motorized small vehicles.  

Senator Rucker indicated he did not necessarily agree with Mr. Sartorius's comment that the city would have no power to control the zoning of buildings to be utilized to store the delivery devices.  Senator Rucker noted Amazon is not currently being taxed to use streets and sidewalks for package delivery.  

Ms. Massey indicated Amazon's willingness to work with Mr. Sartorius on an amendment.  

Written only testimony in opposition to the bill was submitted by:

 - Jay Hall, Legislative Policy Director and General Counsel, Kansas Association of Counties  (Attachment 3)

 - Trevor Stiles, City of Overland Park  (Attachment 4)

 - Matt Hall, Business Agent, Teamsters Local Union 696  (Attachment 5)  

No neutral testimony was submitted.

Chairperson Lynn left the hearing on SB 435 open pending further discussion.

The meeting adjourned at 9:27 a.m.  The next meeting is scheduled for March 12, 2020.