Gov. Sam Brownback has vetoed a bill that may have driven Uber Technologies Inc. out of the state. Uber allows users to request a car service via mobile app. It has drawn criticism from cab companies because Uber drivers are not licensed. Advocates argue it offers a cheaper alternative to cab service, which benefits consumers.
In his veto message to the Kansas legislature, the Governor said:
I appreciate the legislature’s hard work on this legislation, I believe
this bill is premature. To overregulate or improperly regulate an
emerging industry before the marketplace actors make proper arrangements
is to invite more, problems, not less.
should be known as a state that embraces economic growth and
innovation. The jobs created by this new industry can bring opportunity
to many Kansas families. An open and free marketplace often results in
higher quality products at a more affordable price.
will allow companies like Uber to continue and expand operations in
Kansas, where they otherwise would not be able to do so.
applaud the discussions that have taken place nationally between the
emerging ride-sharing industry and insurance companies. Similar
discussions now need to take place with the banking community, which
understandably wants to ensure its financial interests are also
“I also applaud
the legislature’s interest in protecting the safety of our citizens. I
strongly support background checks for ride-sharing drivers. However,
the ride-sharing industry believes the background requirement as
currently written, weakens rather than strengthens, the level of
scrutiny placed on its potential drivers.
I believe more time, more collaboration, and more discussion will
ultimately result in a better public policy product for Kansas. In the
meantime, local municipalities will regulate the ride-sharing industry
just as they have always done with traditional passenger transportation
companies. At this moment in time, they are better equipped to
understand the unique and emerging challenges and opportunities the
ride-sharing industry brings to their communities.
I am vetoing this bill, I am also calling upon ride-sharing companies,
insurers, banks and credit unions, to work with our legislature to
resolve their differences. These discussions have already begun among
Uber and many major insurances companies. The same should begin with
banks and credit unions. I look forward to reviewing a new bill that
results from these conversations.
"Pursuant to Article 2, Section 14(a) of
the Constitution of the State of Kansas, I hereby veto House Substitute
for Senate Bill 117."