* Background is here if you need it. Greg Hinz…

A high-stakes veto battle over how to regulate the car-sharing business is shaping up in Springfield.

Yesterday Gov. Bruce Rauner rejected a measure approved by the General Assembly this spring that would require companies that connect individuals who want to lease their cars to others via a phone app to generally follow the same regulations and pay the same taxes as traditional companies.

The action likely sets off round two of a high-stakes lobbying battle, pitting new-economy firms such as Turo against long-time rentals companies like Enterprise. With a gubernatorial election set to occur before any votes are taken, the outcome is uncertain. […]

Bill advocates have not yet commented on the governor’s veto, which the Legislature can now accept or vote to override. If nothing happens, the bill dies. But given that some Republicans voted for the original bill, including Senate GOP Leader Bill Brady and House Republican Leader Jim Durkin, those override votes may be within reach.

Good point on Brady and Durkin.

* From the company which helped push the bill to Rauner’s desk…

“Why the Governor would veto bipartisan legislation that exempts peer-to-peer car rental providers from basic requirements is beyond comprehension,” [Enterprise Rent-A-Car] told Ars. “Ensuring vehicle safety, offering transparent pricing, and collecting essential state and municipal fees is just common sense. If peer-to-peer doesn’t pay taxes or fees, cities/municipalities will have to find ways to make up for lost revenue. That will only hurt local businesses and citizens while peer-to-peer companies get a free pass. We are confident the Legislature will right this wrong.”

* Allstate…

“Gov. Rauner’s amendatory veto will enable car sharing to significantly lower the cost of personal transportation in Illinois. Every household will have the opportunity to redirect thousands of dollars per year from idle cars to education, paying off debts or saving for retirement,” said Allstate Chairman, President and CEO Tom Wilson. “The governor’s proposed changes will foster the innovation necessary to make car sharing a reality and should be supported by the legislature as a vote for family economic wellbeing.”

* General Motors is in the car-sharing business and sent this release…

General Motors supports Governor Rauner’s decision to veto SB 2641 and seek a reasonable legislative compromise that protects consumers and allows innovative mobility platforms to operate in the State of Illinois. His actions today recognize that peer-to-peer car sharing can provide mobility solutions and economic opportunities for both vehicle owners and program users.

* From the governor’s economist…

“It’s a telling symbol of Illinois’ unique reputation for politics that a one-sided and rushed effort to shut down new competition failed everywhere else but succeeded here,” said Mischa Fisher, chief economist and advisor to Governor Rauner. In the statement released along with the veto, Governor Rauner returned the bill to the Illinois Senate with a list of changes that would protect the operations of the car-sharing companies.

“It’s easy for even an active follower of tech and startups to think that the constant marginal progress we see is automatic,” Fisher told Ars. “But what nearly happened in Illinois is a reminder that the legal rules matter, and if we want to have competitive marketplaces that produce new goods and services in any state, we don’t want incumbent players authoring their competitors’ rules without any oversight or feedback.”