Regulations

Regulators To Hold Show Cause Hearings For TNCs Dec. 11

Posted on November 18, 2014 by - Also by this author - About the author

[UPDATE 11/18/14]

SAN FRANCISCO — The agency charged with regulating limousine services and Transportation Network Companies in California has scheduled Show Cause hearings for UberX and Lyft on Thursday, Dec. 11 in San Francisco.

The California Public Utilities Commission will hold the UberX hearing at 9:30 a.m. and the Lyft hearing at 1 p.m. Both will be held in the Commission Hearing Room at CPUC headquarters at 505 Van Ness Ave.

The CPUC Show Cause Orders on Nov. 7 against UberX and Lyft. The ordersrequire the TNCs to show cause why the companies should not be found in contempt, why fines and penalties should not be imposed, and why their licenses to operate should not be revoked or suspended for violating TNC reporting requirements.

FULL TEXT OF CPUC SHOW CAUSE ORDER HERE

UBERX ADMINISTRATIVE LAW JUDGE ORDER HERE

LYFT ADMINISTRATIVE LAW JUDGE ORDER HERE

[Resume orginal LCT article posted Nov. 12]:

According to the document, signed by CPUC Commissioner Michael R. Peevey: “On Sept. 19, 2014, UberX and Lyft both submitted annual report information. The Safety and Enforcement Division SED analyzed the information submitted by both UberX and Lyft and alleges that both companies failed to comply with some of the reporting requirements set forth in D.13-09-045.”

The document concludes: “As part of the Order to Show Cause, UberX and Lyft will be given an opportunity to be heard and to explain why they should not be found in contempt, why fines and penalties should not be imposed, and why their licenses to operate should not be revoked or suspended for allegedly violating some of the reporting requirements in D.13-09-045.”

The reporting requirements at issue were approved on Sept. 19, 2013 as part of a CPUC decision creating a new charter party carrier category for TNCs that spelled out rules that TNCs must follow in order to legally operate in California.

The Greater California Livery Association, which represents chauffeured transportation services, contends the rules are inadequate, giving TNCs a lighter regulatory load than limousine operations. The GCLA has been pursuing legislative and administrative remedies to ensure limousines and TNCs follow the same rules across the board.

UberX and Lyft rides are priced lower than those of Uber, which is the primary black car service based on a mobile application customer platform that connects with independently participating drivers.

In California, the CPUC, which regulates all for-hire charter party carriers, categorizes UberX, Lyft and Sidecar as  Transportation Network Companies (TNCs). This category is separate from luxury limousine services, private shuttle services, and other forms of ground transportation.

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