* 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.