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Turo car sharing, under fire elsewhere, greases Toni Atkins machine

Auditors fight for honesty in City of San Diego and SDSU

Turo, Inc., a controversial peer-to-peer car-sharing company based in San Francisco, gave $7500 on January 31 to the ballot measure committee run by termed-out state Senator Toni Atkins.
Turo, Inc., a controversial peer-to-peer car-sharing company based in San Francisco, gave $7500 on January 31 to the ballot measure committee run by termed-out state Senator Toni Atkins.

Rent-a-pol

Turo, Inc., a controversial peer-to-peer car-sharing company based in San Francisco, gave $7500 on January 31 to the ballot measure committee run by termed-out state Senator Toni Atkins, who is seeking to become the state’s next lieutenant governor. Last summer, Turo went on a Hawaiian political spending spree, “donating thousands of dollars to Hawaii candidates ranging from Honolulu City Council Chair Tommy Waters to gubernatorial front-runner Lt. Gov. Josh Green,” according to an August 22, 2022, account by Honolulu Civil Beat.

Toni Atkins, targeted by Turo.

“Both the city and the Legislature have recently been considering bills that would clarify regulations covering companies like Turo.” On the island of Maui, airport goers complained of losing their parking spots to Turo-owned vehicles, per a December 29, 2022, account by Maui Now. “’Yes, parking is a hassle and, yes, I got a $40 ticket’ for parking outside of a stall,” Maui pilot Kim Anderson is quoted as saying. “Turo renters shouldn’t be able to park cars in the lot.” Maui Now adds, “State Department of Transportation Maui District Airports Manager Marvin Moniz said state officials met Wednesday to discuss language for new legislation that would crack down on businesses operating without a permit or license in state airport public parking lots.”

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Turo has also drawn fire in Texas, where the Dallas Morning News reported August 8, 2022, that the big international airport there sued the company to block its expansion. “San Francisco-based Turo, which filed for an IPO in January, has moved from a service where people share their own cars to a network of ‘hosts’ that own several cars, sometimes dozens, and can make a profit of more than $1000 a month per new vehicle, the company said. Turo’s net revenue nearly tripled last year to $330 million, although it’s still operating at a steep loss, common for tech startups.”

The paper quoted Dallas-Fort Worth Airport lawyer Paul Tomme as saying, “We have a problem with illegal commercial activities, specifically, professional car renters who own fleets of vehicles and rent cars online and have them delivered here to the airport. They don’t have a permit with the airport to do so even though the code requires them to have one, they don’t pay airport fees, they don’t collect state rental car taxes or local rental car taxes and remit them to the state.”

Back in California, Turo has done better, inking a deal with the San Jose Mineta Airport to make “Turo vehicle exchanges available in designated areas at SJC,” according to a February 2 report by SFGate.com. In a June 4, 2022, op-ed piece for The Hill, Jarrett Skorup, senior director of marketing and communications at the Mackinac Center for Public Policy, argues that state legislatures should take a generally hands-off approach to the problem.

“Requiring insurance and ensuring that insurance companies know what their coverage is being used for is fair. Some minimal disclosure rules for companies make sense. But taxes should be low and fair for the whole industry. And there is little reason for state lawmakers to try to get involved when it comes to airports or other places where cars are dropped off or picked up — the hosts and guests can work that out themselves.” Last year. Turo paid Sacramento-based lobbying outfit Miller Cespedes & Associates LLC $230,000, according to state disclosure filings....San Diego County Supervisor Nathan Fletcher, reelected to a four-year term in 2022, continues to collect major money for his 2024 bid for state Senate. The San Manuel Band of Mission Indians, operator of a big casino, gave $5500 on January 30, according to state disclosure filings.

Crash and burn

A host of auditors continue their never-ending quest to keep local government honest. A January 18 report by San Diego City Auditor Andy Hanau says that “an allegation of a City employee concealing damage caused to a City vehicle was investigated and determined to be substantiated. The department took the appropriate corrective action with respect to the identified employee.” Hanau also reports that “an allegation of abuse of discretion regarding data reporting was investigated and closed based on the proactive corrective actions taken by the department to ensure that data will be collected and reported accurately.”

Andy Hanau: plaudits for the audits.

Meanwhile, the United States Government Accountability Office in a February 2 report to Congress, calls out a critical lack of childcare for military families here. “Officials said that the [Department of Defense] childcare program has encountered challenges in supplying sufficient childcare spaces to meet demand — particularly in certain geographic areas,” per the February 2 audit. “Officials identified the following areas as having DOD’s greatest childcare need: Norfolk, Virginia; San Diego, California; San Antonio, Texas; Hawaii; and the Washington, D.C. area. These challenges include capacity shortfalls, staffing shortages, and a lack of eligible childcare providers for DOD’s fee assistance program.”

San Diego State University was also an auditing target. “In general, we found that the campus had an appropriate framework for the administration of recognized student organizations. However, we found that student organization banking training materials lacked appropriate levels of cash-handling procedures, and student officers who were required to complete this training did not always do so,” says a January 19 report by Vlad Marinescu, Vice Chancellor, and Chief Audit Officer of the California State University System. “We also found that general release waivers were not collected in one instance when required for student organization events that involved travel.” Adds the auditor, “At San Diego State University, there are more than 300 recognized student organizations representing various categories, including academic or professional specialties, cultural and identity, leadership, recreation, and service.”

— Matt Potter

(@sdmattpotter)

The Reader offers $25 for news tips published in this column. Call our voice mail at 619-235-3000, ext. 440, or sandiegoreader.com/staff/matt-potter/contact/.

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Turo, Inc., a controversial peer-to-peer car-sharing company based in San Francisco, gave $7500 on January 31 to the ballot measure committee run by termed-out state Senator Toni Atkins.
Turo, Inc., a controversial peer-to-peer car-sharing company based in San Francisco, gave $7500 on January 31 to the ballot measure committee run by termed-out state Senator Toni Atkins.

Rent-a-pol

Turo, Inc., a controversial peer-to-peer car-sharing company based in San Francisco, gave $7500 on January 31 to the ballot measure committee run by termed-out state Senator Toni Atkins, who is seeking to become the state’s next lieutenant governor. Last summer, Turo went on a Hawaiian political spending spree, “donating thousands of dollars to Hawaii candidates ranging from Honolulu City Council Chair Tommy Waters to gubernatorial front-runner Lt. Gov. Josh Green,” according to an August 22, 2022, account by Honolulu Civil Beat.

Toni Atkins, targeted by Turo.

“Both the city and the Legislature have recently been considering bills that would clarify regulations covering companies like Turo.” On the island of Maui, airport goers complained of losing their parking spots to Turo-owned vehicles, per a December 29, 2022, account by Maui Now. “’Yes, parking is a hassle and, yes, I got a $40 ticket’ for parking outside of a stall,” Maui pilot Kim Anderson is quoted as saying. “Turo renters shouldn’t be able to park cars in the lot.” Maui Now adds, “State Department of Transportation Maui District Airports Manager Marvin Moniz said state officials met Wednesday to discuss language for new legislation that would crack down on businesses operating without a permit or license in state airport public parking lots.”

Sponsored
Sponsored

Turo has also drawn fire in Texas, where the Dallas Morning News reported August 8, 2022, that the big international airport there sued the company to block its expansion. “San Francisco-based Turo, which filed for an IPO in January, has moved from a service where people share their own cars to a network of ‘hosts’ that own several cars, sometimes dozens, and can make a profit of more than $1000 a month per new vehicle, the company said. Turo’s net revenue nearly tripled last year to $330 million, although it’s still operating at a steep loss, common for tech startups.”

The paper quoted Dallas-Fort Worth Airport lawyer Paul Tomme as saying, “We have a problem with illegal commercial activities, specifically, professional car renters who own fleets of vehicles and rent cars online and have them delivered here to the airport. They don’t have a permit with the airport to do so even though the code requires them to have one, they don’t pay airport fees, they don’t collect state rental car taxes or local rental car taxes and remit them to the state.”

Back in California, Turo has done better, inking a deal with the San Jose Mineta Airport to make “Turo vehicle exchanges available in designated areas at SJC,” according to a February 2 report by SFGate.com. In a June 4, 2022, op-ed piece for The Hill, Jarrett Skorup, senior director of marketing and communications at the Mackinac Center for Public Policy, argues that state legislatures should take a generally hands-off approach to the problem.

“Requiring insurance and ensuring that insurance companies know what their coverage is being used for is fair. Some minimal disclosure rules for companies make sense. But taxes should be low and fair for the whole industry. And there is little reason for state lawmakers to try to get involved when it comes to airports or other places where cars are dropped off or picked up — the hosts and guests can work that out themselves.” Last year. Turo paid Sacramento-based lobbying outfit Miller Cespedes & Associates LLC $230,000, according to state disclosure filings....San Diego County Supervisor Nathan Fletcher, reelected to a four-year term in 2022, continues to collect major money for his 2024 bid for state Senate. The San Manuel Band of Mission Indians, operator of a big casino, gave $5500 on January 30, according to state disclosure filings.

Crash and burn

A host of auditors continue their never-ending quest to keep local government honest. A January 18 report by San Diego City Auditor Andy Hanau says that “an allegation of a City employee concealing damage caused to a City vehicle was investigated and determined to be substantiated. The department took the appropriate corrective action with respect to the identified employee.” Hanau also reports that “an allegation of abuse of discretion regarding data reporting was investigated and closed based on the proactive corrective actions taken by the department to ensure that data will be collected and reported accurately.”

Andy Hanau: plaudits for the audits.

Meanwhile, the United States Government Accountability Office in a February 2 report to Congress, calls out a critical lack of childcare for military families here. “Officials said that the [Department of Defense] childcare program has encountered challenges in supplying sufficient childcare spaces to meet demand — particularly in certain geographic areas,” per the February 2 audit. “Officials identified the following areas as having DOD’s greatest childcare need: Norfolk, Virginia; San Diego, California; San Antonio, Texas; Hawaii; and the Washington, D.C. area. These challenges include capacity shortfalls, staffing shortages, and a lack of eligible childcare providers for DOD’s fee assistance program.”

San Diego State University was also an auditing target. “In general, we found that the campus had an appropriate framework for the administration of recognized student organizations. However, we found that student organization banking training materials lacked appropriate levels of cash-handling procedures, and student officers who were required to complete this training did not always do so,” says a January 19 report by Vlad Marinescu, Vice Chancellor, and Chief Audit Officer of the California State University System. “We also found that general release waivers were not collected in one instance when required for student organization events that involved travel.” Adds the auditor, “At San Diego State University, there are more than 300 recognized student organizations representing various categories, including academic or professional specialties, cultural and identity, leadership, recreation, and service.”

— Matt Potter

(@sdmattpotter)

The Reader offers $25 for news tips published in this column. Call our voice mail at 619-235-3000, ext. 440, or sandiegoreader.com/staff/matt-potter/contact/.

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