LARA Shuts Down MBS Taxi, a Limousine Carrier in Midland for Operating Without Insurance
Media Contact: LARA Communications 517-373-9280
October 10, 2018 - LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) issued a cease and desist order and has summarily suspended the limousine carrier registration of MBS Taxi and owner Mark D. Witkop of Midland, MI, for operating as a limousine carrier without having the insurance coverage required under Michigan’s Limousine, Taxicab, and Transportation Network Company Act. The insurance policy expired on January 24, 2018.
“All transportation providers including limousine services must operate lawfully and that includes maintaining the required level of insurance,” 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 insurance coverage of a ride provider and its State of Michigan registration to operate, prior to using that carrier’s services.”
The Order also notifies the respondent of the right to request a hearing within 30 days in response to the order. The Order of Summary Suspension will remain in place until the respondent successfully petitions to dissolve the Order or provides CSCL with proof of adequate insurance coverage. If LARA does not receive a timely request for a hearing or proof of insurance, then the Cease and Desist Order, and Summary Suspension become final.
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.
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.