House passes ride-hailing bill with limits to fines by PUC

Pennsylvania House lawmakers on Wednesday unanimously approved legislation that grants permanent authority for ridehailing companies such as Uber, Lyft and zTrip to operate in Pennsylvania.

And the legislation contains an extra win for companies: The state Public Utility Commission will be required to scale back any fines that it issues to such companies that spurn its authority in the future.

The stipulation to the bill — which for the first time establishes a state regulatory framework governing so-called transportation network companies — is a clear rebuke of $11.4 million penalty that the commission issued and affirmed this year on San Francisco-based Uber for operating for several months in 2014 without a Pennsylvania license.

Passage of the bill by the House on Wednesday is a long-sought victory for the increasingly popular smartphone apps, which connect drivers in their own vehicles with people in need of a ride. The three companies are each operating under temporary, experimental licenses that were set to expire early next year.

When Uber and Lyft first launched in Pennsylvania in early 2014, they gave thousands of rides without any oversight from state regulators before receiving a temporary license. The dispute led to lengthy, contentious cases before the Public Utility Commission. While Lyft settled with the commission for $250,000 last year, Uber did not reach a settlement.

In April, the commission levied an unprecedented $11.4 million fine on Uber, calling the magnitude of its violations historic.

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