Jan 25, 2015 11:16 AM by News Staff
SACRAMENTO, Calif. (AP) - The California Department of Motor Vehicles has retracted an advisory requiring anyone who transports people for money to commercially register their vehicles.
The Sacramento Bee reports the DMV's move on Saturday comes amid an outcry by rideshare companies who say such a requirement would threaten their business, and by state lawmakers who say the department was applying outdated rules to a new kind of business.
Ride-for-hire companies Uber and Lyft had argued that lawmakers and the California Public Utilities Commission already recognized their "transportation network business" as distinct from other commercial transportation businesses, such as taxicabs.
The DMV said it "jumped the gun" on issuing the advisory earlier this month, and that the department will further review the issue.
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