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*** UPDATED x6 *** Quinn vetoes ridesharing bill

Monday, Aug 25, 2014

* The taxi companies were expecting an AV. Nope. Full-on veto. From a press release…

Governor Pat Quinn today vetoed House Bill 4075, also known as the “Uber bill.” The bill would have imposed statewide regulations on commercial ridesharing and prevented local governments across Illinois from adopting rules that fit their respective communities. Today’s action is part of Governor Quinn’s agenda to protect consumers, create jobs and drive Illinois’ economy forward.

“The principle of home rule is an important one,” Governor Quinn said. “I am vetoing this legislation because it would have mandated a one-size-fits-all approach to a service that is best regulated at the local level.”

While transportation services are traditionally regulated at the local government level, House Bill 4075 would have limited the ability of home rule units of government to adopt alternative approaches that best fit local needs.

For example, the city of Chicago passed an ordinance that will go into effect Aug. 26, 2014 which establishes a comprehensive set of regulations to ensure ridesharing companies maintain public safety including regulations on licensure, insurance, background checks, vehicle inspections and operating hours for drivers. The ordinance – which is in the process of being implemented – will help ensure these transportation services maintain public safety while keeping the regulation at the appropriate and traditional level of government.

Commercial ridesharing services are provided by drivers who use their personal automobiles to provide transportation services to the public. Customers use an application on their smart phones to order rides offered through these companies such as Uber X, Lyft, Sidecar and others.

Governor Quinn today also vetoed House Bill 5331, which contained related ridesharing regulations.

*** UPDATE 1 *** An hour before this press release was issued, the taxi drivers sent out a media advisory saying “hundreds” of taxi drivers would be demonstrating at the Thompson Center at 11:15 this morning to demand that Quinn sign the bill. Too late, it turns out.

…Adding… And, of course, Bruce Rauner has been urging Quinn to veto the bill for the past month.

The veto message is here. It uses the line “stifle innovation,” which is similar to Rauner’s claim that the bill would stifle competition.

*** UPDATE 2 *** The House sponsor, Rep. Mike Zalewski, responds…

“I’m disappointed that the two bills I worked on this spring to put consumer safety first and provide a fair marketplace for the ridesharing services were vetoed. I disagree with the contention that this should be decided only locally, as these services stretch across city and county lines and the bills would provide important baseline protections that local governments could build upon. Both the main bill and trailer bill received overwhelming support in the House and Senate in the spring. I will now talk with my colleagues and evaluate the best path for moving forward. It is clear to me we need to provide consumers with the assurances they will get to their destinations safely when they use these services.”

*** UPDATE 3 *** Rauner response…

Bruce Rauner campaign spokesman Mike Schrimpf issued the following statement regarding Pat Quinn’s decision to veto the anti-ridesharing bill:

“One month after Bruce urged Governor Quinn to veto the anti-ridesharing legislation Pat Quinn finally did the right thing. It’s too bad that Pat Quinn refused to follow Bruce’s lead on term limits and getting rid of the Quinn-Madigan tax hike.”

*** UPDATE 4 *** Mayor Rahm Emanuel…

“I want to thank Governor Quinn for his thoughtful approach to regulating an emerging industry so that new transportation options can flourish in Chicago while consumers are ensured a safe and reliable experience. Beginning next week, the City will implement the commonsense ordinance that passed City Council in May so that rideshare is no longer operating in a regulatory vacuum.”

*** UPDATE 5 *** Lyft…

By vetoing HB 4075 and HB 5551, Governor Quinn has sent a strong message in support of Illinois residents who want access to the convenient and safe transportation options that ridesharing provides. Lyft’s peer-to-peer model enables communities to enjoy affordable and reliable transportation alternatives while creating new economic opportunities for residents.

The legislation – designed to protect entrenched industries and maintain the status quo – would have stifled innovation and reduced consumer choice. We applaud Governor Quinn’s leadership in standing up for consumers’ right to choose ridesharing, which has forged a path for other governors across the country to follow. We look forward to seeing Lyft grow and thrive in Illinois.

*** UPDATE 6 *** Uber…

The veto of anti-ridesharing legislation today by Governor Quinn shows not only his commitment to affordable transportation choices for Illinois consumers, but his commitment to the thousands of drivers who rely on ridesharing to pay their bills and invest in their communities.

The people of Illinois overwhelmingly support ridesharing – this veto is a victory for them against the influence of Big Taxi. It’s a victory for the more than 85,000 Illinois residents who signed the petition to save ridesharing. It’s a victory for those in underserved neighborhoods who can finally get a ride. And it’s a victory for the teachers, military veterans, college students and thousands of other driver partners who use the Uber platform.

HB 4075 was intended to limit competition and protect the profits of taxi company owners. It would have done nothing to improve the safety of Illinois’ streets and would have limited the growth of transportation alternatives across the state.

Governor Quinn’s embrace of innovation adds to a growing chorus of leaders who understand the benefits of this new industry: higher incomes for drivers, choices for residents and visitors who need a ride, lower DUI rates, service in neighborhoods that have been ignored by taxi companies for decades, and economic opportunities in cities of all sizes.

- Posted by Rich Miller        


21 Comments
  1. - Cassiopeia - Monday, Aug 25, 14 @ 8:54 am:

    So Governor Rauner is already calling the shots?


  2. - DuPage Rep - Monday, Aug 25, 14 @ 8:56 am:

    Haha. Governor reformer turns out to be a panderer and not a very good one at that.


  3. - Commander Norton - Monday, Aug 25, 14 @ 9:04 am:

    It’s a smart move, whatever you may think of its substance. It takes the teeth out of Rauner’s attack on him over ridesharing and “stifling competition,” but Quinn bases the veto on home rule and thus leaves the door open for future state-level regulation. And he doesn’t weigh in on the merits of either side’s arguments.


  4. - North Shore Joe - Monday, Aug 25, 14 @ 9:05 am:

    He really had no choice on this one.


  5. - wndycty - Monday, Aug 25, 14 @ 9:05 am:

    In typical Republican fashion I expect Rauner to issue a press release criticizing Quinn for vetoing this bill even though he wanted him to.


  6. - Levi - Monday, Aug 25, 14 @ 9:08 am:

    Rich, can you remind us whether these passed with enough votes to override a veto?


  7. - Leroy - Monday, Aug 25, 14 @ 9:10 am:

    Always fun to watch a protected class in Illinois lose it’s protection….especially this rapidly.

    Remember kids, government gets to pick winners and losers! I hope you get picked as a winner!


  8. - A guy... - Monday, Aug 25, 14 @ 9:29 am:

    Every now and then we get it right.


  9. - Carl Nyberg - Monday, Aug 25, 14 @ 9:41 am:

    Is Illinois going to allow individuals to compete in the market or just big companies?


  10. - Carl Nyberg - Monday, Aug 25, 14 @ 9:41 am:

    Is Illinois going to allow individuals to compete in the market or just big companies?


  11. - MarginOfEra - Monday, Aug 25, 14 @ 9:45 am:

    Good thing our roads do not cross municipal boundaries.


  12. - Snucka - Monday, Aug 25, 14 @ 9:58 am:

    It did pass with veto-proof majorities. However, I believe that Rich indicated last week that the Speaker may not be interested in overriding the veto.


  13. - Rahm's Parking Meter - Monday, Aug 25, 14 @ 10:26 am:

    Good move by Quinn. The problem is, a lot of the city voters who vote for the Governor do use Uber, Lyft, etc… It is a simple vote calculation. Why would you anger the voters you need to turn out in the city for you, i.e. YOUNGER PROFESSIONALS who lean Democratic for the most part.


  14. - Yellow Dog Democrat - Monday, Aug 25, 14 @ 10:44 am:

    Tricky.

    Jack Lavin, Rahm Emanuel and Uber v. Teamsters, Citizen Action, and the taxi companies

    When in doubt, side with the mayor.


  15. - Skeptic - Monday, Aug 25, 14 @ 11:39 am:

    Way to throw in that non sequitor there Bruce…


  16. - kj - Monday, Aug 25, 14 @ 11:51 am:

    Only mistake in this was timing. If the veto happens a month ago, the Governor looks like a fighter on the issue. Now, it would be safe to argue that he is just me tooing Rauner out of fear.


  17. - Ghost - Monday, Aug 25, 14 @ 12:41 pm:

    Actually I think his reasoning on letting the locasl handle it makes a lot of sense. If you have an area where its hard to get taxi service (say springfield), the locals may want to be less restrictive and encourage ride sharing services; the reverse in a heavily carpeted area like chicago.


  18. - Anonymous - Monday, Aug 25, 14 @ 12:41 pm:

    Uber spent gazillions of $$$ for this for this veto! At the same time, it started to pay the Chicago UberX drivers an effective rate of $0.72/paid mile, the lowest rate in the country! The cabs in Chicago are meters at $1.80/mile, the lowest rate of ANY major city in the country!
    I urge all Ride-sharing drivers to visit http://UberPeople.Net to unite in bringing an end to their exploitation


  19. - Demoralized - Monday, Aug 25, 14 @ 12:46 pm:

    I’ve yet to see any rational argument as to how this stifles competition. There may be other good arguments against this but that isn’t one of them.


  20. - Gator - Monday, Aug 25, 14 @ 2:34 pm:

    Great veto. What goes unreported is the fact that this bill also deregulates taxi rates across the state!!!

    I believe Illinois would have been the first state to deregulate taxi rates in the nation. Regarding the consumer protections, the Chicago ordinance does a good job of covering it.


  21. - GraduatedCollegeStudent - Monday, Aug 25, 14 @ 6:28 pm:

    ===Is Illinois going to allow individuals to compete in the market or just big companies? ===

    I dunno. To me Uber’s just as big a company as Big Taxi. Don’t let the veneer of “disruptive innovation” confuse you.


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