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UPDATE 5:05 PM
Here is further clarification. LARA’s press release clearly indicates that the Order prohibits A2B from operating as a taxicab carrier “until a certificate of registration from LARA is obtained.” Today, A2B obtained that certificate of registration from the State of Michigan Dept. of Licensing and Regulatory Affairs, Corporations, Securities and Commercial Licensing Division in Lansing, so A2B may proceed in operating as a taxicab carrier. LARA’s Licensing Division staff have directed Mr. Chambers at A2B, to call LARA’s Regulatory Compliance Division for further instructions as to how to respond to the Order.
1:15pm Tuesday, December 18, 2018–A2B Transportation owner Russell Chambers confirmed that he has been contacted by LARA of the state of Michigan and issued a cease and desist order. Chambers said he contacted his drivers to tell them to stop operating but expects that the issue with state will be resolved very soon, hopefully today. The problem, Chambers said, centered around paperwork that had not been received by the state but that he has the necessary documentation and proof of licensing. Chambers is working with LARA to get the order lifted as quickly as possible. We will bring you updates as they become available.
December 18, 2018 – LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) issued a cease and desist order against A2B Transportation (identified as A2B Cab in LARA’s press release), Russell Chambers, owner (respondent), in Laurium for operating as a taxicab carrier without having registered with LARA, as required under Michigan’s Limousine, Taxicab, and Transportation Network Company Act. The order is effective immediately. LARA has also made a criminal referral to appropriate law enforcement authorities.
“All transportation providers including taxicab and limousine services must operate lawfully and that includes obtaining a certificate of registration from LARA,” said CSCL Director Julia Dale. “Our bureau will take appropriate regulatory actions to protect the health, safety and welfare of the public. Consumers should always ask to see proof of a carrier’s State of Michigan registration to operate and proof of insurance coverage of a ride provider, prior to using that carrier’s services.”
The Cease and Desist Order prohibits the respondent from operating as a taxicab carrier, until a certificate of registration from LARA is obtained and notifies the respondent of the right to request a hearing within 30 days in response to the Order. If LARA does not receive a timely request for a hearing, then the Order becomes final. If a hearing is not requested, within 60 days of the Order becoming final, the respondent must pay a fine of $302.56 to LARA.
A limousine carrier, taxicab carrier, or TNC or an officer or agent of any of the three who requires or knowingly permits a driver to drive or operate a limo, taxicab or personal vehicle in violation of the law is guilty of a misdemeanor punishable by a fine of not more than $1,000 per violation or imprisonment for not more than 90 days or both. LARA may also assess a fine against the respondent for violating the Act that covers the actual cost to the department of the investigation and enforcement of the violations, including attorney fees. If a limousine carrier, taxicab carrier, or transportation network company violates a cease and desist order issued by the department, the attorney general may apply to a court of competent jurisdiction to restrain and enjoin, temporarily or permanently, that limo carrier, taxicab carrier, or transportation network company from further violating the cease and desist order.
The Limousine, Taxicab, and Transportation Network Company Act (PA 345), which became effective March 21, 2017, moved the regulation of taxicab carriers from local to state jurisdiction, and moved the regulation of limousine carriers (less than eight passengers) from the Michigan Department of Transportation to LARA. Michigan joined more than three dozen states that have similar laws in place.
