NEWPORT – Rainbow Cab Co. has had its license to operate suspended for three months for doing business outside its permitted area, according to the Newport Daily News.
The Newport-based cab company also faces a $90,000 fine from the R.I. Division of Public Utilities and Carriers.
The company, which is limited to operating only on Aquidneck Island, picked up passengers off of the island 94 times in July and August 2011.
The company failed to properly log trip information 81 of the 94 times, according to the news source.
The state – which was acing on a complaint from a competing cab company – told the paper that the violations began a day after it rescinded a fine in June 2011. The state rescinded the fine because Rainbow Cab agreed to adhere to its permit restrictions.
Rainbow, which says the penalties are excessive, is appealing the decision in Superior Court.
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