PROPOSED DECISION (Rev. 4)
DECISION ADOPTING RULES AND REGULATIONSTO PROTECT PUBLIC SAFETY WHILE ALLOWING NEW ENTRANTSTO THE TRANSPORTATION INDUSTRYSummary
This decision adopts rules and regulations for New Online EnabledTransportation Services, referred to hereafter as a Transportation NetworkCompany
(TNC), to ensure that public safety is not compromised by theoperation of this new transportation business model. TNCs are not just Lyft,SideCar, InstantCab, and UberX.
This Commission defines a TNC as anorganization whether a corporation, partnership, sole proprietor, or other form,operating in California that provides prearranged transportation services forcompensation using an online-enabled application (app) or platform to connectpassengers with drivers using their personal vehicles.
In the Rulemaking, we referred to these companies as New Online-EnabledTransportation Services (NOETS). We are changing the acronym to TransportationNetwork Company (TNC) for ease of use.
The Commission’s Safety and Enforcement Division issued cease and desist letters
and $20,000 citations against Uber, Lyft, and SideCar for operating without authorityand other violations of state law. However, in 2013, the Safety and EnforcementDivision entered into settlement agreements intended to ensure the public safety ofboth riders and drivers with Uber, Lyft, and SideCar, allowing the companies to operate
while the Commission’s TNC rulemaking is underway.
There are eleven exemptions to the Passenger Charter-
party Carriers’ Act contained in
Public Utilities Code § 5353. Our definition of a TNC does not in any way usurp thoseexisting exemptions. For example, one of the exemptions is passenger vehicles carryingpassengers on a non-commercial enterprise basis. This exception has been defined bythe Commission to mean non-profit organizations. See D.91.-06-
025 (“The term‘noncommercial enterprise basis’ in PU Code Section 5353(f) includes operations
conducted on a not-for-profit, tax-exempt basis, as au
thorized by federal or state law.”).
Another exemption is the rideshare exemption itself, which exempts: Transportation of
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