The Sharing Economy : State and Local Regulatory Coordination Needed
The article argues that uniform statewide regulations of the sharing economy should be rejected in favor of a coordinated state and local government regulatory approach. Governmental fragmentation at the local level in the United States results in the imposition of diverse regulations upon sharing economy activities taking place in a metropolitan area. States should resist the pressure to establish uniform statewide regulations over transactions that require municipal oversight due to their direct impact upon local residents such as congestion caused by picking up and dropping off ride-sharing passengers in heavily trafficked areas. States should empower municipalities to regulate the adverse externalities caused by the sharing economy in areas where regulatory uniformity is not necessary. State legislation can also establish minimum standards and authorize municipalities to supplement the minimum standards as they see fit. Another approach would be joint state and local agreements defining each party’s role in regulating certain sectors of the sharing economyThe article suggests that a coordinated state and local approach could entail the implementation of sharing economy regulations on a metropolitan-wide or regional basis through (1) cooperative arrangements; (2) creation of a separate sharing economy coordinating entity with representatives from affected municipalities; (3) coordination through neighborhood councils or other civic associations; or (4) metropolitan planning organization (MPO) coordination, especially when the sharing economy activities affect a region’s transportation system