LARA Shuts Down ACE Medical Transportation LLC in Dearborn for Multiple Violations

Media Contact: LARA Communications 517-335-LARA (5272)
Email: mediainfo@michigan.gov

August 2, 2019 - LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) issued a Cease and Desist Order (order) and has summarily suspended the limousine carrier registration of ACE Medical Transportation LLC (ACE) in Dearborn for multiple violations of Michigan’s Limousine, Taxicab, and Transportation Network Company Act (Act). The suspension is effective July 19, 2019.  

The order, issued after a routine audit of ACE’s records, alleges several violations of the Act, including:

• Not maintaining copies of driver applications and not annually conducting criminal background checks nor obtaining driver history reports for its drivers.
• Not developing nor implementing a zero-tolerance policy for drug or alcohol use for its drivers and not providing notice of it to passengers.
• Not adopting a policy of nondiscrimination with respect to passengers and potential passengers nor providing notice of the policy to its drivers.
• No proof of required insurance coverage.

The order also orders ACE to stop violating the Act by either providing documentary proof of its correction of the noted violations or providing written notice to CSCL that it ceased all operations, and the date it ceased operations. It further orders the payment of a $507.95 administrative fine. Based on the allegations in the order, particularly the lack of insurance and no proof of criminal background checks demonstrating an imminent threat to the public health, safety, or welfare, ACE’s registration was also summarily suspended.

ACE has 30 days from July 19 to request a formal administrative hearing in response to the order, or it becomes final. The summary suspension will remain in place until ACE successfully petitions to dissolve the order.

“All transportation providers, including limousine carriers, must operate lawfully and that includes maintaining the required level of insurance and annually conducting local and national criminal background checks on its drivers,” 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 verify the driver’s credentials prior to using that carrier’s services.”

A limousine carrier, taxicab carrier or transportation network company, 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’s fine assessed against ACE for violating the Act covers the actual cost to the department of the investigation and enforcement of the violations.

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.