TRANSIT: California shuts down luxury bus service, cites lack of permit

May 22, 2015

Leap Transit is forced to halt all operations after California Public Utilities Commission order.

Not two weeks ago, Roads & Bridges reported on the launch of luxury bus service in the San Francisco area by Leap Transit, a move that was being greeted by commuters are both a welcome alternative and a divisive mode that seemed to segregate the wealthy from their blue-collar counterparts. Now, it looks like, at least for now, disagreements over the necessity and viability of the service have been mooted.

The California Public Utilities Commission (CPUC) served Leap Transit, the company in charge of the luxury bus service, with a cease-and-desist order ordering it to halt all operations until it has secured the proper permitting.

Before the order was issued, Leap was in the process of obtaining a permit from the commission, and while the company was recently granted an “authority to operate”—a precursor to an official license, the operation of its route between the Marina district and the Financial District without a full license was determined by regulators to be in violation of the law.

The cease-and-desist order came directly on the heels of an article that appeared in The Chronicle illuminating the legal gray area in which Leap operates. At that time, the CPUC said that Leap technically falls under city regulation pending the approval of its state permit, while the city said that it had already handed over regulatory authority to the commission. Now, however, the CPUC has decided authority of Leap falls to the state even before its license is finalized.

Service was temporarily suspended this week, while the licensing process goes on. Leap has faced criticism for removing wheelchair accessibility for its buses, which is required by federal law. To receive its permit, the article said, Leap must comply with several state requirements, including filing proof of insurance and drug and alcohol testing for drivers.

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