Legislature(2019 - 2020)BARNES 124

04/08/2019 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 102 RENTAL VEHICLE BY PRIVATE OWNER TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 103 STATE GAMING COMMISSION; CARD ROOMS TELECONFERENCED
<Bill Hearing Canceled>
+= HB 91 NATUROPATHS: LICENSING; PRACTICE TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 30 WORKERS' COMP: DEATH; PERM PARTIAL IMPAIR TELECONFERENCED
Moved CSHB 30(L&C) Out of Committee
-- Public Testimony --
             HB 102-RENTAL VEHICLE BY PRIVATE OWNER                                                                         
                                                                                                                                
3:41:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the next order  of business would                                                               
be  HOUSE BILL  NO. 102,  "An  Act relating  to rental  vehicles;                                                               
relating to  vehicle rental networks;  relating to  liability for                                                               
vehicle rental taxes; and providing for an effective date."                                                                     
                                                                                                                                
3:42:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX opened public testimony.                                                                                        
                                                                                                                                
3:42:39 PM                                                                                                                    
                                                                                                                                
ETHAN WILSON,  Government Relations Manager/Legal  Counsel, Turo,                                                               
stated that  Turo is an  internet-based peer-to-peer  car sharing                                                               
platform.   He  expressed  Turo's  opposition to  HB  102 in  its                                                               
current  form, adding  that they  are, however,  willing to  help                                                               
develop  a legislative  solution that  works for  Alaska and  its                                                               
citizens,  protects  consumers,  and recognizes  an  individual's                                                               
personal property  right to  share his or  her car  without undue                                                               
burdens or barriers to entry.   He offered his belief that HB 102                                                               
takes  a  one-sided  approach   to  regulating  peer-to-peer  car                                                               
sharing  that   is  an  "antiquated,  complex,   and  corporately                                                               
manipulated" attempt at  regulating and taxing the  industry.  He                                                               
reiterated that the peer-to-peer  car sharing industry is willing                                                               
to engage  with Alaska's lawmakers  to create a "smart,  new, and                                                               
innovative  regulatory structure  for the  sharing economy."   He                                                               
contended that  it is  consumers, not  rental car  companies, who                                                               
pay sales  and excise  taxes to  rent cars.   He  further alleged                                                               
that rental cars,  hotels, lodging, and resorts  are targeted for                                                               
excise taxes due  to their high rate of  consumption by travelers                                                               
from  out  of state,  adding  that  "by taxing  peer-to-peer  car                                                               
sharing  in  the same  manner  as  big rental,  the  legislature,                                                               
albeit inadvertently,  is not capturing the  economic activity of                                                               
out  of state  actors -  rather,  it would  be capturing  locally                                                               
sourced economic activity."  He  reported that while peer-to-peer                                                               
car sharing platforms take 25  percent of the overall transaction                                                               
cost, Alaskans  that share their  cars keep  up to 75  percent of                                                               
the gross  revenue of that  transaction.   He opined that  HB 102                                                               
treats Turo and peer-to-peer car sharing as an enemy.                                                                           
                                                                                                                                
3:50:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS asked  if Turo is the  equivalent of Airbnb                                                               
for renting vehicles.                                                                                                           
                                                                                                                                
MR. WILSON stated  that it's an asset sharing economy,  not a gig                                                               
sharing economy,  adding that  the very nature  and use  of [cars                                                               
and houses] are inherently different.                                                                                           
                                                                                                                                
REPRESENTATIVE FIELDS  offered that both [companies]  are digital                                                               
platforms  that enable  property owners  to rent  their property.                                                               
He asked if Mr. Wilson agreed.                                                                                                  
                                                                                                                                
MR. WILSON answered yes.                                                                                                        
                                                                                                                                
REPRESENTATIVE  FIELDS  asked  if  Mr. Wilson  is  familiar  with                                                               
Airbnb's payment of occupancy taxes around the world.                                                                           
                                                                                                                                
MR. WILSON replied that he is  not an expert in public policy for                                                               
Airbnb.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  FIELDS  explained  that  Airbnb  negotiates  with                                                               
jurisdictions  to  pay occupancy  taxes  around  the world.    He                                                               
disputed the  idea that  no one from  the legislature  offered to                                                               
work with Turo,  adding that he had asked  the company's lobbyist                                                               
to review their equitable tax proposal.                                                                                         
                                                                                                                                
REPRESENTATIVE FIELDS  asked how  much money  Turo has  earned in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR. WILSON said he is unsure of the exact number.                                                                               
                                                                                                                                
3:51:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  asked if  Mr.  Wilson  was aware  of  the                                                               
Department  of Revenue's  inquiries to  determine how  much money                                                               
Turo has earned in Alaska.                                                                                                      
                                                                                                                                
MR. WILSON said he is not familiar with those specifics.                                                                        
                                                                                                                                
REPRESENTATIVE FIELDS asked if he  would be sharing the amount of                                                               
money Turo has earned in Alaska with the committee today.                                                                       
                                                                                                                                
MR WILSON replied that he would try.                                                                                            
                                                                                                                                
REPRESENTATIVE  FIELDS  stated   that  the  legislature  received                                                               
letters from  Alaskans suggesting that  HB 102 would  prohibit or                                                               
ban peer-to-peer  vehicle sharing.   He asked if Turo  was behind                                                               
those "misleading" letters.                                                                                                     
                                                                                                                                
MR. WILSON said he's not familiar with any misleading letters.                                                                  
                                                                                                                                
REPRESENTATIVE FIELDS  asked if  Turo has  suggested that  HB 102                                                               
would somehow prohibit peer-to-peer vehicle sharing in Alaska.                                                                  
                                                                                                                                
MR. WILSON  answered that he  has not  and was not  familiar with                                                               
the communications being referred to.                                                                                           
                                                                                                                                
3:53:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   STUTES  asked   for  the   location  of   Turo's                                                               
headquarters.                                                                                                                   
                                                                                                                                
MR.  WILSON  relayed that  they  are  located in  San  Francisco,                                                               
California.                                                                                                                     
                                                                                                                                
REPRESENTATIVE STUTES  questioned whether Turo makes  revenue off                                                               
the vehicle rentals.                                                                                                            
                                                                                                                                
MR.  WILSON answered  yes,  adding that  they  generally take  25                                                               
percent of the gross revenue of each transaction.                                                                               
                                                                                                                                
REPRESENTATIVE STUTES asked  why it's okay to have  a business in                                                               
Alaska that doesn't pay any of Alaska's business taxes.                                                                         
                                                                                                                                
MR.  WILSON  maintained that  Turo  is  not anti-tax  or  against                                                               
creating  a  tax that  is  designed  to  capture aspects  of  the                                                               
sharing  economy.   He reiterated  the  desire to  work with  the                                                               
legislature  on establishing  what the  taxation framework  would                                                               
look like.                                                                                                                      
                                                                                                                                
3:54:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  presumed that  if there were  to be  a tax                                                               
increase on  Turo rental vehicles, that  it would be paid  by the                                                               
renter rather than the vehicle owner.                                                                                           
                                                                                                                                
MR.  WILSON acknowledged  that [the  tax]  would be  paid by  the                                                               
consumer of  the transaction, noting  that it would  increase the                                                               
cost of  the total transaction.   He contended  that peer-to-peer                                                               
transactions   are   inherently   different   than   rental   car                                                               
transactions  because   peer-to-peer  transactions   are  locally                                                               
sourced.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  STUTES questioned  whether Turo  has any  bricks-                                                               
and-mortar stores in Alaska.                                                                                                    
                                                                                                                                
MR.  WILSON replied  that there  are  over 700  Alaskan hosts  on                                                               
their platform; however, no stores are in the state.                                                                            
                                                                                                                                
REPRESENTATIVE   STUTES  asked   if   they   offer  any   vehicle                                                               
maintenance  or  if   they  just  collect  25   percent  of  each                                                               
transaction.                                                                                                                    
                                                                                                                                
MR. WILSON explained that Turo  establishes the framework for the                                                               
platform.   He noted that  all the  rental vehicles are  owned by                                                               
individual  Alaskans in  a dispersed  ownership model,  which "is                                                               
the beauty of the sharing economy."                                                                                             
                                                                                                                                
REPRESENTATIVE STUTES questioned whether  Turo is involved in any                                                               
other businesses aside from the vehicle sharing.                                                                                
                                                                                                                                
MR. WILSON  answered no.   He said to  the best of  his knowledge                                                               
they are a peer-to-peer car sharing platform.                                                                                   
                                                                                                                                
3:57:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked how many  states Turo operates in and                                                               
how many states they are paying tax revenue in.                                                                                 
                                                                                                                                
MR. WILSON stated  that they operate in 49 states  and are paying                                                               
tax revenue in Maryland after  working with the state legislature                                                               
to create  a tax framework that  is separate from the  rental car                                                               
framework.                                                                                                                      
                                                                                                                                
3:57:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked what the  peer-to-peer tax rate is in                                                               
Maryland.                                                                                                                       
                                                                                                                                
MR.  WILSON  replied that  every  state's  taxation framework  is                                                               
different.   He  offered his  understanding that  Maryland has  a                                                               
combination of both a statewide sales  tax and an excise tax.  He                                                               
further  noted that,  in Maryland,  peer-to-peer  car sharing  is                                                               
subject to an excise tax that  is less than the rental car excise                                                               
tax.                                                                                                                            
                                                                                                                                
REPRESENTATIVE HANNAN asked  if Mr. Wilson was  aware of Alaska's                                                               
sales tax.                                                                                                                      
                                                                                                                                
MR. WILSON  shared his understanding  that there is  no statewide                                                               
sales tax; however,  municipalities have the option  to collect a                                                               
city sales  tax.  He added  that there is a  statewide excise tax                                                               
on rental cars.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  HANNAN  asked  if  Mr.  Wilson  was  informed  of                                                               
Alaska's  locally sourced  rental  car companies,  which have  no                                                               
affiliation  to  national corporations.    She  pointed out  that                                                               
those companies are fully culpable for state rental car taxes.                                                                  
                                                                                                                                
MR. WILSON  suggested that  those transactions  are taxable  as a                                                               
rental car transaction as they are rental car companies.                                                                        
                                                                                                                                
REPRESENTATIVE  HANNAN inquired  as to  how many  rental days  it                                                               
would  take to  establish the  arrangement as  a business  rather                                                               
than a peer-to-peer transaction.                                                                                                
                                                                                                                                
MR.  WILSON  said  that  would  be  a  policy  decision  for  the                                                               
legislative body.                                                                                                               
                                                                                                                                
4:00:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  addressed the  taxes and  "other fees"  that Mr.                                                               
Wilson  said the  rental companies  charge to  recoup the  amount                                                               
they  have expended  in collecting  taxes.   She  asked what  the                                                               
"other fees" are.                                                                                                               
                                                                                                                                
MR. WILSON offered his understanding  that it is a "cost recovery                                                               
mechanism" that is  statutory and related to an  estimate on what                                                               
the  rental  car  company's expenses  would  be  for  registering                                                               
vehicles every  year.   He further  alleged that  the fee  is one                                                               
dollar and thirteen cents per day per transaction.                                                                              
                                                                                                                                
CO-CHAIR LEDOUX sought clarification  on how peer-to-peer vehicle                                                               
rental  concerns in-state  people, whereas  car rental  companies                                                               
deal with out-of-state people.                                                                                                  
                                                                                                                                
MR.   WILSON  asserted   that   the   way  peer-to-peer   vehicle                                                               
transactions  are sourced  helps to  facilitate "locally-sourced"                                                               
transactions due to the dynamic of the app platform.                                                                            
                                                                                                                                
CO-CHAIR LEDOUX  asked if there  are any statistics  that support                                                               
that statement.                                                                                                                 
                                                                                                                                
MR. WILSON said  he did not have those figures.   Nonetheless, he                                                               
pointed  out that  there are  14,000  people in  Alaska that  are                                                               
active on the Turo platform.                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  sought clarification  on how Turo's  ideal piece                                                               
of legislation would be different than the current bill.                                                                        
                                                                                                                                
MR.  WILSON replied  that there  is certain  language they  would                                                               
include that  is conducive  and friendly  to the  sharing economy                                                               
that defines it distinctly from  the rental vehicle business.  He                                                               
emphasized  the  importance of  making  sure  there are  consumer                                                               
protections  and  adequate  insurance  protections,  and  a  fair                                                               
taxable framework.                                                                                                              
                                                                                                                                
4:05:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL   sought  clarification   on  the   definition  of                                                               
"sharing" when it involves a monetary transaction.                                                                              
                                                                                                                                
MR. WILSON  explained that the  ownership of that vehicle  is the                                                               
relevant aspect.   He offered his belief that sharing  is when an                                                               
individual has  bought a  car for personal  use and  lets someone                                                               
else drive it in exchange for financial remuneration.                                                                           
                                                                                                                                
4:06:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL,  referencing Airbnb,  said that an  individual can                                                               
stay at a  private residence that is lived in  by someone else in                                                               
exchange for financial  remuneration.  He asked if  that could be                                                               
considered sharing.                                                                                                             
                                                                                                                                
MR. WILSON acknowledged  that, yes, if a  residence is personally                                                               
owned and "shared" with someone  else then it would be considered                                                               
sharing.                                                                                                                        
                                                                                                                                
CO-CHAIR  WOOL  suggested  that  if  Mr.  Wilson  came  from  San                                                               
Francisco to Alaska  to testify he might be armed  with data.  He                                                               
asked  for last  year's  gross  revenue from  the  Turo hosts  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR. WILSON answered, on average, 300 dollars per month.                                                                         
                                                                                                                                
CO-CHAIR WOOL asked how much revenue Turo grossed in 2018.                                                                      
                                                                                                                                
MR. WILSON said he did not know that exact number.                                                                              
                                                                                                                                
CO-CHAIR WOOL asked if Turo is a multinational company.                                                                         
                                                                                                                                
MR. WILSON affirmed that.                                                                                                       
                                                                                                                                
4:12:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  inquired as to  whether Turo had  paid any                                                               
taxes to  the state of Alaska  for the vehicle rentals  that they                                                               
enable through a digital platform.                                                                                              
                                                                                                                                
BRANDON  SPANOS, Deputy  Director,  Tax  Division, Department  of                                                               
Revenue, noted  that, normally,  he would not  be able  to answer                                                               
that  question  due  to  specific  statutes  on  confidentiality;                                                               
however, in the  case of this new industry, he  said he can state                                                               
that the division has not  received revenue from any peer-to-peer                                                               
car sharing company.                                                                                                            
                                                                                                                                
REPRESENTATIVE FIELDS asked if it's  the division's position that                                                               
[peer-to-peer  vehicle  sharing] does  represent  a  form of  car                                                               
rental and  that either  the company, the  customers, or  the car                                                               
owners should be paying vehicle rental taxes.                                                                                   
                                                                                                                                
MR. SPANOS  answered yes, they  would define  it as a  rental, in                                                               
which case the statute clearly states that a tax is due.                                                                        
                                                                                                                                
REPRESENTATIVE FIELDS stated that,  under current law, individual                                                               
Alaska  car owners  are "on  the  hook" for  paying these  taxes;                                                               
however, if  this bill  passed, it  would clarify  that customers                                                               
would be  paying the  taxes.   He asked if  that was  an accurate                                                               
understanding.                                                                                                                  
                                                                                                                                
MR. SPANOS clarified that the  renter of the vehicle, the Alaskan                                                               
resident putting their  vehicle available for rent,  would be the                                                               
taxpayer.  He  noted that there is a question  as to whether Turo                                                               
would also be a taxpayer,  as they previously testified that they                                                               
are collecting 25 percent of the revenue.                                                                                       
                                                                                                                                
4:18:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   STUTES  calculated   that  Turo   is  generating                                                               
approximately  2.5 million  dollars  from their  rentals here  in                                                               
Alaska, of  which they are netting  650,000.  She asked  what the                                                               
taxes on that would be.                                                                                                         
                                                                                                                                
MR.  SPANOS said  250,000 dollars,  which  is 10  percent of  the                                                               
transaction.                                                                                                                    
                                                                                                                                
4:19:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked how much  revenue Alaska made in 2018                                                               
from rental car taxes.                                                                                                          
                                                                                                                                
MR. SPANOS answered 10.5 million dollars.                                                                                       
                                                                                                                                
REPRESENTATIVE  HANNAN   questioned  whether  the   Tax  Division                                                               
verifies  business  licenses,  liability insurance,  and  vehicle                                                               
registration.                                                                                                                   
                                                                                                                                
MR. SPANOS  stated that it depends  on the tax type,  adding that                                                               
in the  case of the  vehicle rental  tax they simply  collect the                                                               
tax and do audits to verify that the gross receipts were valid.                                                                 
                                                                                                                                
REPRESENTATIVE  HANNAN  asked  how   many  businesses  that  rent                                                               
vehicles in Alaska pay taxes to the state.                                                                                      
                                                                                                                                
MR.  SPANOS relayed  that in  FY18 there  were 142  taxpayers, of                                                               
which they received 514 quarterly tax returns.                                                                                  
                                                                                                                                
4:21:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO  questioned whether there  are incentives                                                               
built into the rental vehicle statute  or if is a flat 10 percent                                                               
for cars and 3 percent for recreational vehicles (RVs).                                                                         
                                                                                                                                
MR. SPANOS shared that there  are certain credits available, such                                                               
as discounts for state business.                                                                                                
                                                                                                                                
REPRESENTATIVE  TALERICO   asked  if  rental  company   cars  are                                                               
considered private vehicles for rent.                                                                                           
                                                                                                                                
MR.  SPANOS  explained  that  the   statute  refers  to  them  as                                                               
"passenger  vehicles,"  adding   that  they  don't  differentiate                                                               
private from corporate owned.                                                                                                   
                                                                                                                                
4:22:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL asked how much  revenue Alaska made from rental car                                                               
taxes in years prior to 2018.                                                                                                   
                                                                                                                                
MR. SPANOS reported  11.9 million in FY17, 10.5  million in FY16,                                                               
and 9.7 million in FY15.                                                                                                        
                                                                                                                                
4:23:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX  sought  clarification  on  the  Tax  Division's                                                               
attempt to subpoena records from peer-to-peer companies.                                                                        
                                                                                                                                
MR.  SPANOS  explained  that  there  are  technicalities  in  the                                                               
statute  that  must  be  changed  in order  to  enforce  the  tax                                                               
subpoena  on out-of-state  companies; therefore,  they could  not                                                               
obtain records from those companies.                                                                                            
                                                                                                                                
CO-CHAIR LEDOUX  questioned whether it's common  for companies to                                                               
voluntarily open their records.                                                                                                 
                                                                                                                                
MR.  SPANOS  said  it  happens often,  adding  that,  usually,  a                                                               
subpoena isn't necessary.                                                                                                       
                                                                                                                                
CO-CHAIR  LEDOUX asked  if Turo  is paying  the corporate  income                                                               
tax.                                                                                                                            
                                                                                                                                
MR. SPANOS replied  that can't speak to  that for confidentiality                                                               
reasons.                                                                                                                        
                                                                                                                                
4:26:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  offered  support for  the  [peer-to-peer]                                                               
business  model.   Nonetheless,  he shared  his  belief that  the                                                               
company's refusal  to pay taxes is  insulting.  He asked  for the                                                               
market capitalization of Turo.                                                                                                  
                                                                                                                                
MR. WILSON said he was unsure.                                                                                                  
                                                                                                                                
REPRESENTATIVE  FIELDS,  referencing "public  sources",  asserted                                                               
that the market capitalization of  Allstate, Turo, and Getaround,                                                               
which  are  three  peer-to-peer  car  sharing  companies,  totals                                                               
approximately 32  billion dollars.   He further noted  that there                                                               
is a difference  between innovation and rent  seeking, the latter                                                               
being  when you  manipulate laws  to find  a tax  advantage.   He                                                               
opined that innovation should be supported rather then rent-                                                                    
seeking behavior that distorts marketplaces.                                                                                    
                                                                                                                                
4:28:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN inquired  as to how Turo  verifies that the                                                               
cars being  rented through their  app are legally  registered and                                                               
carry the proper insurance.                                                                                                     
                                                                                                                                
MR. WILSON explained that Turo  has partnered with Liberty Mutual                                                               
to provide  "robust" insurance  protections on  every transaction                                                               
that takes  place on their platform.   He noted that  they always                                                               
offer  the  state  mandated  minimums  for  the  driver  of  each                                                               
vehicle.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  HANNAN   questioned  whether  a   Liberty  Mutual                                                               
inspector looks at each vehicle prior to it being "shared."                                                                     
                                                                                                                                
MR. WILSON answered no.                                                                                                         
                                                                                                                                
REPRESENTATIVE HANNAN asked  how Turo knows that  each vehicle is                                                               
legally registered and safe to drive in Alaska.                                                                                 
                                                                                                                                
MR.  WILSON replied  that there  is a  self-regulating aspect  in                                                               
that all the vehicles are  personally owned and should already be                                                               
legally registered  if it's being  driven around by the  owner in                                                               
the first place.                                                                                                                
                                                                                                                                
4:31:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN established  a scenario  in which  someone                                                               
places their  vehicle that has a  bald tire up for  "sharing" and                                                               
the consumer  rents it, drives  away, and  gets into a  major car                                                               
crash with substantial injuries.  She asked who would be liable.                                                                
                                                                                                                                
MR.  WILSON shared  his understanding  that it  would have  to be                                                               
litigated  by attorneys  afforded  by the  insurance provider  to                                                               
determine who was at fault and whether there was any negligence.                                                                
                                                                                                                                
REPRESENTATIVE  HANNAN questioned  whether  Turo  would have  any                                                               
responsibility in the court.                                                                                                    
                                                                                                                                
MR.  WILSON relayed  that  Turo assumes  the  liability of  their                                                               
hosts, adding that the drivers'  culpability is determined by the                                                               
court.                                                                                                                          
                                                                                                                                
4:33:32 PM                                                                                                                    
                                                                                                                                
WILLIAM  BAILEY disclosed  that  he  is an  operator  of Turo  in                                                               
Anchorage.   He expressed his  opposition to  HB 102.   He opined                                                               
that  when   innovative  industries  offer  cheaper   and  better                                                               
alternatives   the   large   corporations  feel   threatened   by                                                               
competition and  possible loss of  revenue.  He stated  that Turo                                                               
offers a  more personal  experience than renting,  as well  as an                                                               
option when rental companies are low on inventory.                                                                              
                                                                                                                                
4:36:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS  asked what  a reasonable tax  amount would                                                               
be for vehicles being "shared."                                                                                                 
                                                                                                                                
MR. BAILEY opined that a reasonable tax would be 5-7 percent.                                                                   
                                                                                                                                
4:37:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  asked what  kind  of  vehicle Mr.  Bailey                                                               
"shares" and how much he charges.                                                                                               
                                                                                                                                
MR. BAILEY  said he  shares his Jeep  Wrangler for  anywhere from                                                               
40-60 dollars per day, depending on the time of year.                                                                           
                                                                                                                                
REPRESENTATIVE HANNAN inquired  as to how Mr.  Bailey reports the                                                               
revenue that he generates through Turo on his income taxes.                                                                     
                                                                                                                                
MR. BAILEY  stated that he  reports it  as a secondary  source of                                                               
income.                                                                                                                         
                                                                                                                                
REPRESENTATIVE HANNAN asked if Mr.  Bailey should have to carry a                                                               
business  license if  he  shares his  vehicle  for a  substantial                                                               
amount of time.                                                                                                                 
                                                                                                                                
MR.  BAILEY answered  no, "because  I'm not  the one  running the                                                               
business."                                                                                                                      
                                                                                                                                
4:39:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked what percentage  of his renters are from in                                                               
state versus out of state.                                                                                                      
                                                                                                                                
MR. BAILEY  surmised that  75-80 percent are  in state  and 20-25                                                               
percent are out of state.                                                                                                       
                                                                                                                                
4:40:10 PM                                                                                                                    
                                                                                                                                
ROSE   FELICIANO,  Regional   Director,  Internet   Associations,                                                               
informed  the  committee  that Internet  Associations  represents                                                               
more  than 40  of the  world's leading  internet companies.   She                                                               
expressed her  opposition to  HB 102, stating  that they  are not                                                               
opposed to ensuring  the vehicles are safe  and properly insured;                                                               
however, she said, they believe  the tax structure should be more                                                               
appropriate for their business model.                                                                                           
                                                                                                                                
4:45:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  asked   where  Internet  Associations  is                                                               
located.                                                                                                                        
                                                                                                                                
MS. FELICIANO said  they have headquarters in  Washington, DC and                                                               
several other offices across the country.                                                                                       
                                                                                                                                
REPRESENTATIVE  STUTES asked  if  Internet  Associations has  any                                                               
branches in Alaska.                                                                                                             
                                                                                                                                
MS. FELICIANO answered no.                                                                                                      
                                                                                                                                
4:46:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN asked  which internet  businesses Internet                                                               
Association  represents  aside   from  peer-to-peer  car  sharing                                                               
companies.                                                                                                                      
                                                                                                                                
MS.  FELICIANO said  that they  represent  Airbnb, Zillow,  Yelp,                                                               
Uber, Lyft, Postmates, Quicken Loans, Groupon, and others.                                                                      
                                                                                                                                
REPRESENTATIVE  HANNAN questioned  whether Internet  Associations                                                               
objects  to  those  companies paying  statewide  sales  taxes  in                                                               
states they operate in.                                                                                                         
                                                                                                                                
MS.  FELICIANO  offered  her  belief   that  the  tax  should  be                                                               
appropriate.  She  referenced two of the  companies that Internet                                                               
associations represents,  Amazon and  Etsy, adding that  they now                                                               
pay  state taxes  after  the Supreme  Court  decision ruled  that                                                               
remote sellers are required to pay them.                                                                                        
                                                                                                                                
REPRESENTATIVE  HANNAN,   referencing  Ms.   Feliciano's  written                                                               
testimony, asked why HB 102  would make it "impossible" for peer-                                                               
to-peer vehicle sharing to operate in Alaska.                                                                                   
                                                                                                                                
MS. FELICIANO  stated that  there is  a fundamental  concern from                                                               
the   peer-to-peer   vehicle   sharing   category   about   being                                                               
categorized as a rental car company.                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
2019.HB102.Sponsor Statement.pdf HL&C 4/8/2019 3:15:00 PM
HB 102
HB 102.Bill Version U.pdf HL&C 4/8/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HL&C 4/22/2019 3:15:00 PM
HB 102
2019.HB102.Sectional.pdf HL&C 4/8/2019 3:15:00 PM
HB 102
HB 102.Fiscal Note DOR.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HL&C 4/22/2019 3:15:00 PM
HB 102
HB 102.Fiscal Note DOL.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HL&C 4/22/2019 3:15:00 PM
HB 102
HB 102.Backup Opposition Alliance of Automobile Manufacturers.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HL&C 4/22/2019 3:15:00 PM
HB 102
HB 102.Backup Support Letter Enterprise.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 102
HB 102.Backup Opposition Letters 4.8.19.pdf HL&C 4/8/2019 3:15:00 PM
HB 102
HB 102.Backup Internet Association Opposition.pdf HL&C 4/8/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 102
HB 30.Sponsor Statement.pdf HL&C 3/25/2019 3:15:00 PM
HL&C 4/5/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 30
HB 30.Bill Version S DRAFT.pdf HL&C 4/5/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 30
HB 30.Fiscal Note DOLWD.pdf HL&C 4/8/2019 3:15:00 PM
HB 30
HB 30.Backup PPI Cost Increase Estimate.pdf HL&C 3/25/2019 3:15:00 PM
HL&C 4/5/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 30
HB 30.Backup PPI By State.pdf HL&C 3/25/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 30
HB 30.Backup Similar Legislation.pdf HL&C 4/8/2019 3:15:00 PM
HB 30
HB 30.Backup Workers Comp Benefits.pdf HL&C 3/25/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 30
HB 30.Backup Insurance Pay Outs.pdf HL&C 4/8/2019 3:15:00 PM
HB 30
HB 91.Sponsor.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Bill Version M.PDF HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Sectional.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Fiscal.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Naturopathic Regulation.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Naturopathic Perscriptive Authority.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Naturopathic Medicine Background.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Naturopath One-Pager.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Naturopathic Concerns and Answers.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Education and Scope Comparison.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Perscriptive Authority Comparison.pdf HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Support Letters UPDATED 4.8.19.pdf HL&C 4/8/2019 3:15:00 PM
HB 91
HB 91.Backup Response to Committee Questions.pdf HL&C 4/8/2019 3:15:00 PM
HB 91