MINUTES OF THE
BUSINESS AND LABOR INTERIM COMMITTEE
Wednesday, May 16, 2018 • 1:15 p.m. • 210 Senate Building


Members Present:
Sen. Curtis S. Bramble, Chair
Rep. James A. Dunnigan, Chair
Sen. Gene Davis
Sen. Karen Mayne
Sen. Jerry W. Stevenson
Sen. Todd Weiler
Rep. Susan Duckworth
Rep. Gage Froerer
Rep. Timothy D. Hawkes
Rep. John Knotwell
Rep. Michael K. McKell
Rep. Val K. Potter
Rep. Marc K. Roberts
Rep. Scott D. Sandall
Rep. R. Curt Webb
Rep. Mark A. Wheatley
Rep. Mike Winder

Members Absent:
Sen. Ralph Okerlund
Rep. Mike Schultz

Staff Present:
Mr. Adam J. Sweet, Policy Analyst
Ms. Christine R. Gilbert, Associate General Counsel
Ms. Amy L. West, Associate General Counsel
Mr. Joshua M. Weber, Administrative Assistant

Note: A copy of related materials and an audio recording of the meeting can be found at www.le.utah.gov.

1. Committee Business
2. Long-Term Planning
Mr. Sweet discussed an item submitted by the Labor Commission as part of the committee's long-term planning emphasis.
3. Interim Planning and Study Item Approval
MOTION: Rep. Potter moved to add the amusement ride safety and liability concerns to the interim study guide. The motion passed with a vote of 12-0-7.
Yeas - 12Nays-0Abs-7
Sen. C. Bramble
Rep. S. Duckworth
Rep. J. Dunnigan
Rep. G. Froerer
Rep. T. Hawkes
Rep. J. Knotwell
Rep. V. Potter
Rep. S. Sandall
Sen. J. Stevenson
Rep. R. Webb
Rep. M. Wheatley
Rep. M. Winder
Sen. G. Davis
Sen. K. Mayne
Rep. M. McKell
Sen. R. Okerlund
Rep. M. Roberts
Rep. M. Schultz
Sen. T. Weiler
MOTION: Rep. Dunnigan moved to add the Labor Commission study item to the interim study guide. The motion passed with a vote of 12-0-7.
Yeas - 12Nays-0Abs-7
Sen. C. Bramble
Rep. S. Duckworth
Rep. J. Dunnigan
Rep. G. Froerer
Rep. T. Hawkes
Rep. J. Knotwell
Rep. V. Potter
Rep. S. Sandall
Sen. J. Stevenson
Rep. R. Webb
Rep. M. Wheatley
Rep. M. Winder
Sen. G. Davis
Sen. K. Mayne
Rep. M. McKell
Sen. R. Okerlund
Rep. M. Roberts
Rep. M. Schultz
Sen. T. Weiler
MOTION: Rep. Duckworth moved to adopt the interim study list as amended. The motion passed with a vote of 12-0-7.
Yeas - 12Nays-0Abs-7
Sen. C. Bramble
Rep. S. Duckworth
Rep. J. Dunnigan
Rep. G. Froerer
Rep. T. Hawkes
Rep. J. Knotwell
Rep. V. Potter
Rep. S. Sandall
Sen. J. Stevenson
Rep. R. Webb
Rep. M. Wheatley
Rep. M. Winder
Sen. G. Davis
Sen. K. Mayne
Rep. M. McKell
Sen. R. Okerlund
Rep. M. Roberts
Rep. M. Schultz
Sen. T. Weiler
MOTION: Rep. Sandall moved to allow the chairs to open committee bill files. The motion passed with a vote of 13-0-6.
Yeas - 13Nays-0Abs-6
Sen. C. Bramble
Rep. S. Duckworth
Rep. J. Dunnigan
Rep. G. Froerer
Rep. T. Hawkes
Rep. J. Knotwell
Rep. V. Potter
Rep. S. Sandall
Sen. J. Stevenson
Rep. R. Webb
Sen. T. Weiler
Rep. M. Wheatley
Rep. M. Winder
Sen. G. Davis
Sen. K. Mayne
Rep. M. McKell
Sen. R. Okerlund
Rep. M. Roberts
Rep. M. Schultz
MOTION: Rep. Hawkes moved to approve the minutes. The motion passed with a vote of 13-0-6.
Yeas - 13Nays-0Abs-6
Sen. C. Bramble
Rep. S. Duckworth
Rep. J. Dunnigan
Rep. G. Froerer
Rep. T. Hawkes
Rep. J. Knotwell
Rep. V. Potter
Rep. S. Sandall
Sen. J. Stevenson
Rep. R. Webb
Sen. T. Weiler
Rep. M. Wheatley
Rep. M. Winder
Sen. G. Davis
Sen. K. Mayne
Rep. M. McKell
Sen. R. Okerlund
Rep. M. Roberts
Rep. M. Schultz
4. Payroll Tax Fraud
Mathew Capece, Representative of the General President, United Brotherhood of Carpenters and Joiners of America, spoke to the issue.
Patrick Bieker, Lead Representative, Southwest Regional Council of Carpenters, discussed issues surrounding payroll tax fraud and labor law violations in the state.
Greg Letey, CEO, Daw Construction Group, spoke to the issue.
Mike Skalla, Manager, Daw Construction Group, spoke to the issue.
Barry Conover, Executive Director, State Tax Commission, spoke to the issue.
Scott Johnson, Criminal Investigation Division, Internal Revenue Service, spoke to the issue.
Chris Hill, Deputy Commissioner, Labor Commission, discussed issues the Labor Commission has encountered in their investigations of payroll tax fraud.
Brendan Call, Section Chief, Office of the Attorney General, discussed the role of the Attorney General's Office in the investigations of payroll tax fraud.
Todd Kiser, Commissioner, Insurance Department, discussed the department's role in payroll tax fraud.
Scott Westra, Senior Vice President and Chief Financial Officer, WCF Insurance, discussed the resources that WCF Insurance provides in reporting and investigating payroll tax fraud.
5. Peer-to-Peer Rentals: Vehicle Rentals
Lou Bertuca, Senior Manager Government Relations, Turo, gave an overview of the Turo and its role in peer-to-peer vehicle rentals. He responded to questions from the committee.
Mike Taylor, Vice President, Budget Rent a Car; President, Car and Truck Rental and Leasing Association, discussed why peer-to-peer vehicle rental services should be taxed the same as car rental companies. He responded to questions from the committee.
Jesse Hubbard, President, Rugged Rental and Sales, discussed some of the challenges that car and truck rental companies are facing and how those challenges can be addressed through taxation.
Howard Headlee, President and Chief Executive Officer, Utah Bankers Association, described the association's role and consumer protection within the car rental industry and peer-to-peer vehicle rentals.
Shule Bishop, Utah Credit Union Association, discussed car rental insurance liability and how it relates to peer-to-peer vehicle rentals.
Eric Erickson, CEO, Bear River Insurance, discussed the complications with insurance coverage and consumer protection for users of peer-to-peer vehicle rental services. He responded to questions from the committee.
Lou Bertuca answered questions from the committee.
Todd Kiser responded to questions from the committee.
6. Other Items/Adjourn
MOTION: Sen. Davis moved to adjourn. The motion passed with a vote of 8-0-11.
Yeas - 8Nays-0Abs-11
Sen. C. Bramble
Sen. G. Davis
Rep. J. Dunnigan
Rep. J. Knotwell
Rep. V. Potter
Rep. R. Webb
Rep. M. Wheatley
Rep. M. Winder
Rep. S. Duckworth
Rep. G. Froerer
Rep. T. Hawkes
Sen. K. Mayne
Rep. M. McKell
Sen. R. Okerlund
Rep. M. Roberts
Rep. S. Sandall
Rep. M. Schultz
Sen. J. Stevenson
Sen. T. Weiler