Legislature(2019 - 2020)BARNES 124

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

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Audio Topic
03:20:49 PM Start
03:22:02 PM Confirmation Hearing(s):|| Board of Nursing|| Board of Social Work Examiners
03:50:01 PM HB102
05:03:27 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor's Appointees: Board of TELECONFERENCED
Nursing
-- Public Testimony --
+ Consideration of Governor's Appointees: Board of TELECONFERENCED
Social Work Examiners
+= HB 102 RENTAL VEHICLE BY PRIVATE OWNER TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 97 TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS TELECONFERENCED
Scheduled but Not Heard
+ HB 29 INSURANCE COVERAGE FOR TELEHEALTH TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         April 15, 2019                                                                                         
                           3:20 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Gabrielle LeDoux, Co-Chair                                                                                       
Representative Adam Wool, Co-Chair                                                                                              
Representative Zack Fields                                                                                                      
Representative Sara Hannan                                                                                                      
Representative Louise Stutes                                                                                                    
Representative Josh Revak                                                                                                       
Representative Dave Talerico                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S):                                                                                                        
                                                                                                                                
Board of Nursing                                                                                                              
                                                                                                                                
     Marisha Dieters - Eagle River                                                                                              
     Wendy Monrad - Anchorage                                                                                                   
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
Board of Social Work Examiners                                                                                                
                                                                                                                                
     Mindy Swisher - Fairbanks                                                                                                  
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
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."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 97                                                                                                               
"An Act relating to the prescription of drugs by a physician                                                                    
assistant without physical examination."                                                                                        
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
HOUSE BILL NO. 29                                                                                                               
"An Act relating to insurance coverage for benefits provided                                                                    
through telehealth; and providing for an effective date."                                                                       
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 102                                                                                                                  
SHORT TITLE: RENTAL VEHICLE BY PRIVATE OWNER                                                                                    
SPONSOR(s): REPRESENTATIVE(s) WOOL                                                                                              
                                                                                                                                
03/20/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/20/19       (H)       L&C, FIN                                                                                               
04/03/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/03/19       (H)       Heard & Held                                                                                           
04/03/19       (H)       MINUTE(L&C)                                                                                            
04/08/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/08/19       (H)       Heard & Held                                                                                           
04/08/19       (H)       MINUTE(L&C)                                                                                            
04/15/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
NANCY SANDERS                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions from the committee                                                                    
regarding the Board of Nursing.                                                                                                 
                                                                                                                                
BRIAN ROTHERY, Government and Public Affairs Vice President                                                                     
Enterprise Holdings                                                                                                             
Sacramento, California                                                                                                          
POSITION STATEMENT:  Testified in support of HB 102.                                                                          
                                                                                                                                
MICHELLE FANG, Chief Legal Officer                                                                                              
Turo                                                                                                                            
San Francisco, California                                                                                                       
POSITION STATEMENT:  Answered questions during the hearing on HB                                                              
102.                                                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:20:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR ADAM WOOL  called the House Labor  and Commerce Standing                                                             
Committee  meeting  to  order  at   3:20  p.m.    Representatives                                                               
Talerico, Fields,  Revak, Stutes,  Hannan, LeDoux, and  Wool were                                                               
present at the call to order.                                                                                                   
                                                                                                                                
^CONFIRMATION HEARING(S):                                                                                                       
^Board of Nursing                                                                                                               
^Board of Social Work Examiners                                                                                                 
                    CONFIRMATION HEARING(S):                                                                                
                        Board of Nursing                                                                                    
                 Board of Social Work Examiners                                                                             
                                                                                                                              
3:22:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  announced that the  first order of  business would                                                               
be confirmation hearings  for appointees to the  Board of Nursing                                                               
and the Board of Social Work Examiners.                                                                                         
                                                                                                                              
3:22:16 PM                                                                                                                    
                                                                                                                                
NANCY  SANDERS, informed  the  committee that  she  was a  former                                                               
board member, chair, and executive  administrator to the Board of                                                               
Nursing.                                                                                                                        
                                                                                                                                
CO-CHAIR WOOL  questioned whether  it is  appropriate to  have an                                                               
advanced   practice  registered   nurse  (APRN)   serving  in   a                                                               
registered nurse (RN) seat on the Board of Nursing.                                                                             
                                                                                                                                
MS.  SANDERS pointed  out that  the process  of becoming  an APRN                                                               
requires  being a  RN  first.   She noted  that  the statute  [AS                                                               
08.68.010]  states, "two  members shall  be registered  nurses at                                                               
large who  are currently engaged  in registered nursing  and have                                                               
practiced  for   at  least   four  years   immediately  preceding                                                               
appointment."  She said it will  be up to the committee to decide                                                               
whether   the  appointee   in   question   meets  the   statute's                                                               
requirements.                                                                                                                   
                                                                                                                                
CO-CHAIR WOOL  offered his understanding of  the 7-member board's                                                               
composition.    He listed  two  registered  nurses, one  advanced                                                               
practice  registered nurse,  one registered  nurse educator,  two                                                               
public  members, and  one  licensed practical  nurse  (LPN).   He                                                               
asked if this was correct.                                                                                                      
                                                                                                                                
MS. SANDERS answered yes.                                                                                                       
                                                                                                                                
CO-CHAIR WOOL asked if Ms. Sanders had a background in nursing.                                                                 
                                                                                                                                
MS.  SANDERS replied  that  she was  on the  board  as the  nurse                                                               
educator.                                                                                                                       
                                                                                                                                
3:29:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  sought to clarify  Ms. Sanders' position  on the                                                               
board as either the current chair or executive [administrator].                                                                 
                                                                                                                                
MS. SANDERS stated that  she is no longer on the  board and is no                                                               
longer  the   executive  administrator,  adding  that   there  is                                                               
currently no one filling that position.                                                                                         
                                                                                                                                
3:30:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked when  Ms. Sanders left  her position                                                               
as executive [administrator] to the board.                                                                                      
                                                                                                                                
MS. SANDERS replied three and a half years ago.                                                                                 
                                                                                                                                
REPRESENTATIVE HANNAN asked about  the problems and opportunities                                                               
that could  be created by having  many new members on  a board as                                                               
complex as the Board of Nursing.                                                                                                
                                                                                                                                
MS. SANDERS acknowledged that it is  a complex board.  She opined                                                               
that  it   will  take  the   six  new  members  time   to  become                                                               
knowledgeable about  the workings  of the board  and some  of the                                                               
important topics.   she reflected  on her experience as  chair of                                                               
the board  when five  of the  seven members  were replaced.   She                                                               
said they  had a long-serving executive  administrator who helped                                                               
educate the new  members and got them  up to speed.   She said it                                                               
will be difficult for the board to be effective right away.                                                                     
                                                                                                                                
3:32:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  restated Representative Wool's  question, asking                                                               
if it is appropriate to have an APRN serving in a RN board seat.                                                                
                                                                                                                                
MS.  SANDERS indicated  that  it would  be  more advantageous  to                                                               
follow the statute and have a RN fill the RN seat.                                                                              
                                                                                                                                
3:33:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL  asked if  RNs  are  the predominant  category  of                                                               
nurses.                                                                                                                         
                                                                                                                                
MS.  SANDERS replied  yes,  RNs makeup  the  largest category  of                                                               
nurses.  She  noted that the board also  oversees certified nurse                                                               
aids (CNAs) who are supervised by both RNs and the LPN.                                                                         
                                                                                                                                
CO-CHAIR WOOL  offered his  understanding that  the board  is not                                                               
supposed to be political.                                                                                                       
                                                                                                                                
MS. SANDERS acknowledged  that.  Nonetheless, she  alluded to the                                                               
appointment process and that the  board members are chosen by the                                                               
administration.                                                                                                                 
                                                                                                                                
CO-CHAIR WOOL asked Ms. Sanders if she had any further comments.                                                                
                                                                                                                                
MS. SANDERS offered  her belief that the Board  of Nursing should                                                               
not  be issuing  an opinion  on  abortion or  any other  divisive                                                               
topics. She remarked that the purpose  of the board is for public                                                               
protection and to license qualified nurses and CNAs.                                                                            
                                                                                                                                
3:38:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL closed public testimony.                                                                                          
                                                                                                                                
3:39:21 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:40:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX  sought  clarification on  which  appointee  was                                                               
potentially overqualified  to fill  the RN seat  on the  Board of                                                               
Nursing.                                                                                                                        
                                                                                                                                
CO-CHAIR WOOL answered, Marisha Dieters.                                                                                        
                                                                                                                                
3:41:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  opined that because Ms.  Dieters was still                                                               
working as a  RN at the time of her  testimony, she could support                                                               
her filling  the RN seat  right now; however, after  three years,                                                               
as she gains more experience working  as an APRN, it would not be                                                               
appropriate.                                                                                                                    
                                                                                                                                
3:44:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX   reminded  members  that  if   Ms.  Dieters  is                                                               
confirmed she will fill the RN  seat for 3 years while working as                                                               
an APRN, which doesn't fulfill the statutes intent.                                                                             
                                                                                                                                
CO-CHAIR WOOL  agreed.  He  stated that the  statute specifically                                                               
defines the  composition of the  board.   He noted that  it makes                                                               
sense to  have two  registered nurses on  the board  because they                                                               
makeup up the majority of nurses in the state.                                                                                  
                                                                                                                                
3:46:11 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX made  a motion  to advance  the confirmation  of                                                               
Marisha  Dieters and  Wendy Monrad,  appointees to  the Board  of                                                               
Nursing, to  the joint session  for consideration.   She reminded                                                               
the committee that signing the  reports regarding appointments to                                                               
boards  and commissions  in no  way reflects  individual members'                                                               
approval or  disapproval of the  appointees, and  the nominations                                                               
are merely forwarded to the  full legislature for confirmation or                                                               
rejection.   There  being no  objection,  the confirmations  were                                                               
advanced.                                                                                                                       
                                                                                                                                
3:46:48 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX made  a motion  to advance  the confirmation  of                                                               
Mindy Swisher, appointee  to the Board of  Social Work Examiners,                                                               
to  the  joint  session  for consideration.    She  reminded  the                                                               
committee  that signing  the  reports  regarding appointments  to                                                               
boards  and commissions  in no  way reflects  individual members'                                                               
approval or  disapproval of the  appointees, and  the nominations                                                               
are merely forwarded to the  full legislature for confirmation or                                                               
rejection.    There  being no  objection,  the  confirmation  was                                                               
advanced.                                                                                                                       
                                                                                                                                
3:47:17 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:47 to 3:50 p.m.                                                                            
                                                                                                                                
[Co-Chair Wool passed the gavel to Co-Chair LeDoux.]                                                                            
                                                                                                                                
             HB 102-RENTAL VEHICLE BY PRIVATE OWNER                                                                         
                                                                                                                                
3:50:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced that the  final 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."                                                                     
                                                                                                                                
                                                                                                                                
CO-CHAIR LEDOUX reminded committee  members that public testimony                                                               
was left open from the bill's previous hearing.                                                                                 
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:51:15 PM                                                                                                                    
                                                                                                                                
BRIAN  ROTHERY, Government  and  Public  Affairs Vice  President,                                                               
Enterprise  Holdings,  informed  the  committee  that  Enterprise                                                               
Holdings is a privately held,  family owned company that operates                                                               
the Enterprise, National,  and Alamo car rental brands.   He gave                                                               
a  brief background  on Enterprise's  history  in Alaska,  adding                                                               
that in 2018 they generated more  than 5.8 million dollars in tax                                                               
revenue to  the state  of Alaska.   He  expressed support  for HB                                                               
102,  adding that  enacting  fair rules  will  result in  greater                                                               
choice for  consumers; more competition within  the industry; and                                                               
allow private  car owners the  ability to  make extra money.   He                                                               
opined  that rules  should be  clear and  fair for  customers and                                                               
service  providers  alike.   He  suggested  that  all  for-profit                                                               
companies competing  for the  same demand  using the  same supply                                                               
should be treated the same under the law.                                                                                       
                                                                                                                                
3:57:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  asked  how   many  car  rental  companies                                                               
currently exist in Alaska.                                                                                                      
                                                                                                                                
MR. ROTHERY approximated more than a dozen.                                                                                     
                                                                                                                                
REPRESENTATIVE  FIELDS  questioned   whether  larger  car  rental                                                               
companies  are  looking  at  digital   platforms  to  rent  their                                                               
vehicles.                                                                                                                       
                                                                                                                                
MR. ROTHERY  affirmed that.   He  said Enterprise  Holdings views                                                               
this  as  a   new  source  of  supply  in   an  existing  market;                                                               
nonetheless, it is  still car rental.  He added  that the digital                                                               
platform  is  an  opportunity  to  get cars  into  the  hands  of                                                               
customers in an efficient way.                                                                                                  
                                                                                                                                
4:00:34 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL touched on car  rental competition, asking if there                                                               
is  any research  on the  peer-to-peer market  and their  pricing                                                               
structure.                                                                                                                      
                                                                                                                                
MR. ROTHERY  noted that  it would be  inappropriate to  answer in                                                               
specifics.   Nonetheless, he indicated  that the  internet allows                                                               
companies the  ability to monitor  their competition in  terms of                                                               
prices offered to customers.   He stated that Enterprise Holdings                                                               
looks at all rental transactions regardless of service provider.                                                                
                                                                                                                                
4:05:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   FIELDS   mentioned    that   he   had   received                                                               
approximately 40  letters of opposition  to HB 102  that appeared                                                               
to  be generated  by an  email  blast.   He asked  who wrote  the                                                               
letters and how they were generated.                                                                                            
                                                                                                                                
4:06:03 PM                                                                                                                    
                                                                                                                                
MICHELLE  FANG,  Chief  Legal Officer,  Turo,  stated  that  Turo                                                               
notified  their  community  about  HB 102  and  communicated  the                                                               
company's  opposition  to  the  bill.   They  invited  people  to                                                               
"engage  in the  democratic  process" by  contacting their  state                                                               
representative to  let them know  their opinion  on HB 102.   She                                                               
alleged  that  each  person  drafted their  own  email  and  were                                                               
offered  "talking  points" to  include  that  were based  on  the                                                               
company's reaction to HB 102.                                                                                                   
                                                                                                                                
REPRESENTATIVE FIELDS  read several of the  "talking points" that                                                               
appeared in many of the emails.   He asked Ms. Fang how she could                                                               
feel   comfortable  disseminating   false  talking   points  that                                                               
question the integrity  of the legislature.  He  pointed out that                                                               
this is  the third public hearing  for HB 102, adding  that it is                                                               
inaccurate to say this bill  "is being pushed through with little                                                               
to no public hearings" -  a statement that repeatedly appeared in                                                               
the emails.                                                                                                                     
                                                                                                                                
MS.   FANG  contended   that  she   was  disconcerted   with  the                                                               
"mischaracterization" of what transpired.   She said that she was                                                               
"very comfortable"  advising their community about  the company's                                                               
opinion towards  the current bill,  adding that it  behooves them                                                               
to inform  people of laws  that will affect the  peer-to-peer car                                                               
sharing communities  - especially  when the industry  hasn't been                                                               
included in the  conversation.  She maintained  that the [emails]                                                               
were not  drafted by Turo  and that  each person chose  what they                                                               
wanted to include in the message.                                                                                               
                                                                                                                                
4:10:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  asked how many  people share their cars  on Turo's                                                               
platform in Alaska.                                                                                                             
                                                                                                                                
MS.  FANG replied  that there  are approximately  700 users  that                                                               
have  listed their  cars  in Alaska,  which  doesn't account  for                                                               
those  who have  de-listed their  cars.   She estimated  that the                                                               
actual number  of active  users in Alaska  is most  likely around                                                               
300-400.                                                                                                                        
                                                                                                                                
CO-CHAIR  WOOL said  he finds  it  interesting that  there is  no                                                               
clear answer as to how many people  rent their car out on Turo in                                                               
a month  or a  year.   He sought  clarification on  the insurance                                                               
that Turo provides.                                                                                                             
                                                                                                                                
MS.  FANG   stated  that  Liberty  Mutual   provides  third-party                                                               
liability insurance,  which covers all  trips that take  place in                                                               
Alaska.   She  explained that  car  owner hosts  who share  their                                                               
vehicles  automatically receive  one  million  dollars in  third-                                                               
party liability coverage, while the  guests who book cars receive                                                               
the  state-mandated  minimum with  the  choice  to upgrade  their                                                               
protection package.                                                                                                             
                                                                                                                                
CO-CHAIR WOOL asked  if that is comparable to renting  a car from                                                               
Enterprise.                                                                                                                     
                                                                                                                                
MS. FANG countered that it's  "slightly dissimilar."  She offered                                                               
her  understanding   that  rental  car  companies   don't  always                                                               
automatically provide insurance in many states.                                                                                 
                                                                                                                                
CO-CHAIR WOOL questioned whether Turo  should be obligated to pay                                                               
municipal or state taxes like Airbnb does in Alaska.                                                                            
                                                                                                                                
MS. FANG  offered that Turo does  not oppose a fair  and balanced                                                               
tax structure for  peer-to-peer car sharing companies  that is on                                                               
par with what the transportation network companies (TNCs).                                                                      
                                                                                                                                
4:18:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  pointed out  that the  ride-sharing bill  [HB 132]                                                               
implemented a  tax-structure for TNCs  to pay local  sales taxes.                                                               
He  noted that  this is  comparable to  what HB  102 attempts  to                                                               
establish for  peer-to-peer car companies,  except they  would be                                                               
paying the state car rental tax.                                                                                                
                                                                                                                                
MS. FANG  reiterated that Turo  is committed to working  with the                                                               
legislature  to  create  regulations  for  the  peer-to-peer  car                                                               
sharing industry  in Alaska.   She argued  that by  treating TNCs                                                               
differently than Taxis, and Airbnb  differently than hotels there                                                               
is an acknowledgment that each  unique industry should have their                                                               
own tax  model, regulations, and  insurance requirements  in this                                                               
state.    She reiterated  that  they  oppose  HB 102  because  it                                                               
regulates peer-to-peer car  sharing as if it were  the car rental                                                               
industry.                                                                                                                       
                                                                                                                                
4:20:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked for the  tax rate on peer-to-peer car                                                               
Sharing in the state of Maryland.                                                                                               
                                                                                                                                
MS. FANG offered  her understanding that it  is approximately 8.5                                                               
percent  for peer-to-peer  car  sharing and  11  percent for  car                                                               
rental companies,  adding that the  two industries  are regulated                                                               
differently.                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked if  there is a  verification process                                                               
for [hosts] to  prove that their cars are  legally compliant with                                                               
state law at the time the car is shared.                                                                                        
                                                                                                                                
MS.  FANG related  that  they have  a general  set  of rules  not                                                               
specific to  any one state that  say all cars must  be registered                                                               
and licensed to  drive.  She maintained that they  would be happy                                                               
to have a  conversation about the correct  safety requirements to                                                               
regulate peer-to-peer car sharing in Alaska.                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN questioned whether Turo  has a limit on the                                                               
amount of days a vehicle can be shared.                                                                                         
                                                                                                                                
MS.  FANG replied  that  they do  not create  a  limit for  their                                                               
customers, adding  that 96 percent  of hosts in Alaska  share two                                                               
or fewer cars and most customers  are not listing them 365 days a                                                               
year.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  HANNAN asked  for the  average number  of days  a                                                               
host shares their vehicle in Alaska.                                                                                            
                                                                                                                                
MS.  FANG answered,  "significantly  less than  180  days."   She                                                               
further noted that the average trip in Alaska is 5.5 days.                                                                      
                                                                                                                                
4:27:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX  sought  clarification  on  whether  Turo's  one                                                               
million dollars of liability insurance  offered by Liberty Mutual                                                               
covers the [car owner] or the driver.                                                                                           
                                                                                                                                
MS. FANG  explained that during  the reservation  period, Liberty                                                               
Mutual provides  insurance for three people:  one million dollars                                                               
for  the  car  owner  in third-party  liability  coverage;  state                                                               
minimums up to  one million dollars for the driver  and an option                                                               
to upgrade  the protection  package; and  one million  dollars to                                                               
Turo in case they are sued.                                                                                                     
                                                                                                                                
CO-CHAIR  LEDOUX  surmised  that   Turo  is  providing  liability                                                               
coverage of  50,000 to 100,000  dollars for the driver,  which is                                                               
the state mandated  amount, unless the driver has his  or her own                                                               
policy.  She asked if that was correct.                                                                                         
                                                                                                                                
MS. FANG  answered, "only  sometimes."   She continued  by saying                                                               
that  the  state's  mandated insurance  amount  is  automatically                                                               
included for  the driver,  adding that  he or  she can  choose to                                                               
upgrade the protection package to the million-dollar option.                                                                    
                                                                                                                                
4:34:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  asked why  a driver should  be exempt  from paying                                                               
the 10  percent rental tax to  the state of Alaska  regardless of                                                               
whether  they rented  from a  bricks-and-mortar facility  or they                                                               
used a  car sharing  app.   He asked why  Turo should  be treated                                                               
differently than other car rental companies.                                                                                    
                                                                                                                                
MS. FANG restated that they are  not opposed to taxation on peer-                                                               
to-peer car sharing.                                                                                                            
                                                                                                                                
CO-CHAIR  WOOL interjected,  asking why  [peer-to-peer companies]                                                               
should get a special rate.                                                                                                      
                                                                                                                                
MS. FANG said in the state of  Alaska rental cars are taxed at 10                                                               
percent, RVs are  taxed at 3 percent, and TNCs  are taxed locally                                                               
at  different percentage  rates.   She  remarked  that there  are                                                               
different taxes for different industries,  and they would like to                                                               
discuss the  appropriate tax for  the [peer-to-peer  car sharing]                                                               
industry.   She  further alleged  that rental  car companies  are                                                               
charging  customers in  Alaska for  their  own vehicle  licensing                                                               
fees (VLFs)  and after recouping  those costs continue  to charge                                                               
the same  fees and pocket  the difference.   She added  that when                                                               
cars  are   shared  there  are  fewer   cars  manufactured,  less                                                               
greenhouse  gases, and  lower oil  consumption, which  is a  "net                                                               
good" for Alaska.                                                                                                               
                                                                                                                                
4:40:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES   sought  clarification  on   whether  the                                                               
[guest] pays Turo or the individual sharing the car.                                                                            
                                                                                                                                
MS. FANG  replied that Turo  processes the payment and  takes out                                                               
their own  fees while remitting  the bulk, typically  70 percent,                                                               
to the host.                                                                                                                    
                                                                                                                                
MS.  FANG, in  a follow-up  question from  Representative Stutes,                                                               
addressed her assertion that the  rental car companies are taking                                                               
advantage of Alaskans by charging them  to pay for their VLFs and                                                               
then, once recouped, profiting off it.                                                                                          
                                                                                                                                
4:45:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS asked  Mr.  Rothery to  speak  on the  VLF                                                               
allegation.                                                                                                                     
                                                                                                                                
4:45:18 PM                                                                                                                    
                                                                                                                                
MR. ROTHERY  acknowledged that Enterprise is  permitted by Alaska                                                               
law to  charge a VLF, which  is 1.13 dollars per  day, in attempt                                                               
to recover  costs that incur each  year.  He rejected  the notion                                                               
that car rental companies are using  that fee as a profit center,                                                               
adding  that  he would  be  happy  to substantiate  that  through                                                               
numbers.   He  stated  that the  entire amount  of  all fees  are                                                               
disclosed  to their  customers upfront  and  the suggestion  that                                                               
they are recovering  their money the first third of  the year and                                                               
then profiting  the second two-thirds  of the year  is "blatantly                                                               
false and frankly,  inappropriate for a chief legal  officer of a                                                               
company to suggest  on a sort of hypothetical basis  that this is                                                               
occurring without any evidence."                                                                                                
                                                                                                                                
4:47:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  asked how much  the state of Alaska  charges for                                                               
vehicle licensing.                                                                                                              
                                                                                                                                
MR. ROTHERY  explained that 1.13  dollars per day was  arrived at                                                               
by  taking the  total costs  incurred in  getting a  vehicle road                                                               
ready that are  paid to a state  agency or entity.   He said they                                                               
spread the total cost over  the anticipated number of rental days                                                               
for that particular vehicle.                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX sought  clarification on  whether the  intent of                                                               
the fee is to reimburse the  amount that it costs to license each                                                               
vehicle.  She asked if maintenance fees are included.                                                                           
                                                                                                                                
MR. ROTHERY answered no.  He  said the litmus test for applicable                                                               
fees for this type of recovery  are limited to those fees paid to                                                               
a state agency  that relate to the operation of  the vehicle.  He                                                               
asserted that under  no circumstance is this a  profit center for                                                               
Enterprise Rent-A-Car.                                                                                                          
                                                                                                                                
CO-CHAIR LEDOUX asked how much Alaska charges in licensing fees.                                                                
                                                                                                                                
MR.  ROTHERY replied  that he  was  not prepared  to answer  that                                                               
question;  however, he  would follow  up with  the answer  by the                                                               
following day.                                                                                                                  
                                                                                                                                
4:51:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES questioned whether  1.13 dollars per day is                                                               
a standard rate or if it changes for each vehicle.                                                                              
                                                                                                                                
MR. ROTHERY stated  that it is an average of  all vehicle classes                                                               
across the entire fleet.  He  added that the rate is periodically                                                               
revisited  throughout the  year  to ensure  that the  anticipated                                                               
number  of rental  days remains  accurate and  that they  are not                                                               
over collecting.                                                                                                                
                                                                                                                                
4:54:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked what  earnings Turo is  obligated to                                                               
report to the federal government.                                                                                               
                                                                                                                                
MS. FANG said a 1099-K.                                                                                                         
                                                                                                                                
MS.  FANG, in  a follow-up  question from  Representative Hannan,                                                               
stated that Turo complies with  all the requirements of the 1099-                                                               
K under federal law.                                                                                                            
                                                                                                                                
4:57:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL asked if Alaskans can share their RVs on Turo.                                                                    
                                                                                                                                
MS. FANG answered no.                                                                                                           
                                                                                                                                
CO-CHAIR WOOL said he is interested  in finding out how many cars                                                               
have been  rented through Turo in  Alaska over the past  year and                                                               
how many  drivers there are.   He mentioned a woman  in Fairbanks                                                               
who bought her third  car to share on Turo, none  of which is the                                                               
car she drives regularly for personal  use.  He asked Mr. Rothery                                                               
how many rental cars Enterprise has in Alaska.                                                                                  
                                                                                                                                
4:59:46 PM                                                                                                                    
                                                                                                                                
MR. ROTHERY said 1900.                                                                                                          
                                                                                                                                
4:59:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  reiterated  his request  for  information                                                               
from Mr. Wilson  who testified on behalf of Turo  at the previous                                                               
bill hearing for HB 102.                                                                                                        
                                                                                                                                
MS. FANG  replied that Turo  is a private  company and is  not at                                                               
liberty to  disclose the answers  to all the questions  that were                                                               
posed to Mr. Wilson.   Nonetheless, she offered the following: 96                                                               
percent of Alaska  hosts share two or fewer  vehicles; there have                                                               
been just over 27,000 sharing  days in Alaska; last month, nearly                                                               
70 percent  of the  trips were in-state;  and the  average Alaska                                                               
host earns about 300 dollars per month.                                                                                         
                                                                                                                                
5:01:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    FIELDS   asked    how   much    Turo's   market                                                               
capitalization is and how much the company is worth.                                                                            
                                                                                                                                
MS. FANG pointed out that a  market cap doesn't exist for private                                                               
companies.                                                                                                                      
                                                                                                                                
5:02:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX closed public testimony.                                                                                        
                                                                                                                                
5:03:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX ADJOURNMENT                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
[5:03] p.m.                                                                                                                     

Document Name Date/Time Subjects
Wendy Monrad_Redacted.pdf HL&C 4/5/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HLC Letters of Support Wendy Monrad.pdf HL&C 4/5/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
Marisha Dieters_Redacted.pdf HL&C 4/5/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HLC Letters of Opposition Marisha Deiters.pdf HL&C 4/5/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HLC.Mindy Swisher Resume.pdf HL&C 4/15/2019 3:15:00 PM
2019.HB102.Sponsor Statement.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/15/2019 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.docx HL&C 4/15/2019 3:15:00 PM
HL&C 4/22/2019 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 Letter of Opposition Drift.docx 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 Articles of Opposition.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 102
HB 102 Additional Letters of Opposition.pdf HL&C 4/3/2019 3:15:00 PM
HL&C 4/15/2019 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 97.Sponsor.pdf HL&C 4/15/2019 3:15:00 PM
HB 97
HB 97.Bill Version U.PDF HL&C 4/15/2019 3:15:00 PM
HB 97
HB 97.Fiscal DCCED.pdf HL&C 4/15/2019 3:15:00 PM
HB 97
HB 97.Sectional.pdf HL&C 4/15/2019 3:15:00 PM
HB 97
HB 97.Summary of Changes Version A to Version U.pdf HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document AK State Medical Bd Roster.pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document AAPA general overview.pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document AK State Medical Bd PA scope of practice.pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document DEA Drug Schedules.pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document HRSA -HPSA Underserved Primary Care Areas.pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document Medically Underserved Areas HRSA.pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document PA guidelines AK State Medical Bd.pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document PA Prescriptive Authority (AAC).pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB097 Supporting Document Letters of Support for companion legislation SB44.pdf HHSS 3/26/2019 3:00:00 PM
HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
SFIN 4/9/2019 9:00:00 AM
HB 97
SB 44
HB0097 Support Document--Orion BH Emails of Support.pdf HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document Letter of support from ACOA 3.27.2019.pdf HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document Letter of support from AK Policy Forum 3.27.2019.pdf HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB0097 Supporting Document Letter of support from Dietrich (OBHS) 3.27.2019.pdf HHSS 3/28/2019 3:00:00 PM
HL&C 4/15/2019 3:15:00 PM
HB 97
HB 97.Backup Support Letter ASHNHA.pdf HL&C 4/15/2019 3:15:00 PM
HB 97
HB 29.Sponsor.pdf HL&C 4/15/2019 3:15:00 PM
HB 29
HB 29.Bill Version A.PDF HL&C 4/15/2019 3:15:00 PM
HB 29
HB 29.Sectional.pdf HL&C 4/15/2019 3:15:00 PM
HB 29
HB 29.Fiscal Note.pdf HL&C 4/15/2019 3:15:00 PM
HB 29
HB 29.Backup Letters of Support.pdf HL&C 4/15/2019 3:15:00 PM
HB 29
HB 29.Backup ADN Article.pdf HL&C 4/15/2019 3:15:00 PM
HB 29
HB 29.Presentation.pdf HL&C 4/15/2019 3:15:00 PM
HB 29
HB 102 Index with Letters of Opposition 4.11.19.pdf HL&C 4/15/2019 3:15:00 PM
HB 102