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* 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.”
posted by Rich Miller
Wednesday, Aug 29, 18 @ 3:08 pm
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Previous Post: Pritzker campaign calls Rauner “Governor Veto”
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Turo will probably go the way of AirBNB. Eventually, they’ll have to pay the same taxes/fees that the big car rental companies pay. I am a big fan of Turo, but I get where Enterprise, Avis, etc. are coming from. For years they’ve been subject to some pretty industry-specific taxation. It’s always easier for politicians to levy taxes on hotel, rental cars, tourist destinations, etc. because they’re taxing people that can’t vote.
Comment by California Guy Wednesday, Aug 29, 18 @ 3:13 pm
I wonder how auto insurance companies feel about peer to peer car rentals. I would think they would put more of a damper on Turo than the taxes and regulations.
Comment by Da Big Bad Wolf Wednesday, Aug 29, 18 @ 3:33 pm
So can we add Because Durkin and Because Brady to the chorus now?
Comment by Demoralized Wednesday, Aug 29, 18 @ 3:51 pm
If things continue to go as they are, I wouldn’t want to be any industry relying on the protection of the governor after Nov. 6.
Comment by Milt F Wednesday, Aug 29, 18 @ 3:58 pm
Allstate is for a bill that would facilitate people driving other people’s cars, which they are not familiar with? Weird.
Comment by SAP Wednesday, Aug 29, 18 @ 4:05 pm
I’m finding it all very odd that after years and years of carsharing in Chicago Enterprise is pushing to end it. All they have to do is what they did with I-Go–buy the company and shut it down.
Comment by Cheryl44 Wednesday, Aug 29, 18 @ 4:13 pm
I don’t have a throng position on the bill, but as a car nut have been following the issue. Like a couple other folks, I don’t understand the insurers’ support/passivity. I’ve been reading in the car blogs about a guy who put his Audi R8 super car on Turo and the second renter basically totaled it. No one’s insurance wants to pay, the bank’s collateral is junk, and Turo is MIA.
Comment by Arthur Andersen Wednesday, Aug 29, 18 @ 5:18 pm
I was a satisfied I-Go member but I still haven’t tried Turo or Get Around. I don’t want to drive someone else’s car and I am concerned about insurance–or the lack thereof–if something happens while I have their car.
Comment by Cheryl44 Wednesday, Aug 29, 18 @ 5:34 pm
Illinois has more licensed professions than any other state.
The goal in each is to limit competition.
Comment by Anonymous Wednesday, Aug 29, 18 @ 7:07 pm