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92_SB0720gms
State of Illinois
OFFICE OF THE GOVERNOR
Springfield, Illinois 62706
George H. Ryan
GOVERNOR
July 18, 2001
To the Honorable Members of
The Illinois Senate
92nd General Assembly
Pursuant to Article IV, Section 9 (b) of the Illinois
Constitution of 1970, I hereby veto and return Senate Bill
720 entitled, "AN ACT in relation to broadcasting."
Senate Bill 720 purports to create the Broadcast Industry
Free Market Act. However, this legislation actually attempts
to interfere with the free-market conditions of the
broadcasting industry. This Act provides that no television,
radio, or cable station may require an employee, or
prospective employee, to agree as a condition of an
employment contract, to refrain from obtaining employment in
a specific geographic area for a specific period of time
after termination of employment.
Supporters of Senate Bill 720 are attempting to direct
the outcome of independent broadcast industry contract
negotiations and would awkwardly push the State of Illinois
into the role of private party contract negotiator. It is
inappropriate for the State of Illinois to dictate to any
employee or employer the negotiated terms of their employment
arrangement. In all other industries, including the sports
and entertainment industries, limitations as to whether
employees can pursue future employment with a competitor are
determined by the demands of the market place and competitive
bargaining rather than the dictates of State government.
Furthermore, Senate Bill 720 would not be effective in
meeting its goals of thorough prohibition of non-compete
clauses since Illinois State law holds authority only over
those agreements finalized within this State. Many
broadcasting companies have offices outside the State of
Illinois and could simply require that all employment
contracts be entered in non-Illinois locations and thus not
subject to this proposed legislation.
Finally, Senate Bill 720 as it is currently drafted,
attempts to effect current broadcast industry contracts. By
enacting this legislation in its present form it would force
broadcast companies to rewrite contracts that have already
been negotiated and executed. Such an undertaking would be a
violation of both the United States and Illinois
Constitutions. The Contract Clause of the United States
Constitution commands that "{n}o State shall...pass any...
Law impairing the Obligation of Contracts." U.S. Const. Art.
I, Par. 10, c1. 1. The Illinois Constitution echoes this
dictate: "No...law impairing the obligation of
contracts...shall be passed." Ill. Const., 1970 Art. 1, Par.
16. The United State Supreme Court has held that where a
state statute impairs a contractual relationship, it is void
for violating the contract Clause unless the statute passes a
two-part test: it must be both "reasonable and necessary to
serve an important public purpose." United States Trust Co.,
431 U.S. at 25, 97 S. Ct. at 1519. Senate Bill 720 does not
meet the requirements of this test.
For these reasons, I hereby veto and return Senate Bill
720.
Sincerely,
George H. Ryan
GOVERNOR