Summary: In the innovation economy, entrants often confront increased regulatory hurdles, particularly on a state level, as they enter the marketplace and disrupt previously tightly regulated industries, such as hospitality and transportation. In California, for example, legislators have proposed rigorous insurance requirements, drug testing, and new background checks on Uber and Lyft drivers that traditional taxicab drivers do not face. Airbnb faces scrutiny in New York, with critics accusing it of violating rent control laws by creating an underground rental market, threatening public safety and driving up rental prices. In New Jersey, Tesla sales have been shut down after licensing restrictions prevented direct-to-consumer sales of electric vehicles, bypassing franchised dealers. While the entrants contend that these restrictions only serve to restrain competition and protect special entrenched interests, the critics maintain that consumer protection and maintaining a level playing field are the true goals in their regulatory policies. What’s the proper balance between innovation and regulation? Will these new entrants incentivize innovation or will existing regulatory capture only succeed in maintaining the status quo? Are state regulations the greatest impediment to innovation, or do federal regulations also impede progress? -- This panel was part of the 2015 Annual Western Chapters Conference held on January 24, 2015, at the Ronald Reagan Presidential Library in Simi Valley, CA. -- Featuring: Evan Baehr, Co-founder, Outbox and Co-founder, Able Lending; Prof. Jordan Barry, Herzog Endowed Scholar and Professor of Law, University of San Diego School of Law; Katie Biber Chen, Senior Counsel, Airbnb; Andrea Ambrose Lobato, Policy Counsel, Lyft; and Prof. Stephen Miller, University of Idaho School of Law. Moderator: Hon. Carlos Bea, U.S. Court of Appeals, 9th Circuit. Introduction: Mr. David DeGroot, Special Counsel, Sheppard Mullin Richter & Hampton LLP and President, San Francisco Lawyers Chapter.
