August
25, 2014
To
the Honorable Members of the
Illinois
House of Representatives, 98th General Assembly:
In
accordance with Article IV, Section 9(b), of the Illinois Constitution, I
hereby veto House Bill 5331 from the 98th General Assembly.
The
principle of home rule is an important one. In ratifying the current Illinois
Constitution in 1970, the people of our State endorsed home rule for units of
local government. This transformational approach to reallocating the balance
of power towards local government and away from the State is perhaps the most
significant innovation of the Constitution of 1970. Under Article VII, any
home rule unit of government is authorized to: “exercise any power and perform
any function pertaining to its government and affairs including, but not
limited to, the power to regulate for the protection of the public health,
safety, morals and welfare; to license; to tax; and to incur debt.” Illinois
Constitution of 1970, Article VII, Section 6 (a).
House
Bill 5331 establishes a framework whereby the State of Illinois will regulate
“commercial ridesharing arrangements,” a new legal category of for-hire private
transportation service. House Bill 5331 would, if enacted, mandate certain
standards, requirements and consumer protections on a statewide basis, and thus
limit the ability of home rule units of government to adopt alternative
approaches. The legislation is a response to the regulatory and consumer
protection challenges associated with the increasing utilization of a new
technology that has given private vehicle operators the opportunity to offer
rides on a for-hire basis to potential passengers they encounter through a
virtual marketplace that both drivers and passengers access through a smart
phone.
Notably,
the City of Chicago, as a home rule municipality, has already enacted an
ordinance, scheduled to take effect on August 26, 2014, that addresses many of
the same concerns that this bill is designed to address.
Other
units of local government may also wish to adopt consumer protections and other
regulations to ensure a level playing field for all market participants. Such other
units of local government may – or may not – follow the approach that the City
of Chicago will adopt.
Given
how new the technology is and that the City of Chicago’s new ordinance has not
yet even taken effect, it would be premature – and perhaps counterproductive –
to enact a rigid statewide regulatory model at this time. It would be more
prudent to carefully monitor the City of Chicago's experience and the success
and challenges it faces in enforcing its new ordinance. Similarly, lawmakers
and the general public will also benefit from observing the experiences of
other units of government that adopt their own innovative approaches to
regulating mobile device-enabling ridesharing.
A
statewide regulatory framework should only be considered when it is clear that
it is not possible to address the problem at the local level. At this point,
there is not yet enough evidence to make a judgment about the effectiveness of
local ordinances in dealing with the challenges of ridesharing technologies.
To
rush into a whole new statewide regulatory network before the need for one is
clear would not only stifle innovation, it would be a disservice to consumers
who utilize the service while setting a troubling precedent for the future.
Accordingly, I must
return this bill without my approval. Therefore, pursuant to Article IV,
Section 9(b) of the Illinois Constitution of 1970, I hereby return House Bill 5331,
entitled “AN ACT concerning regulation.”, with the foregoing objections, vetoed
in its entirety.
Sincerely,
PAT
QUINN
Governor
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