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Uber Facing $7.3 Million Fine or Getting Booted Off California

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A California subsidiary of Uber is being told to cough up $7.3 million in regulatory fines or hit the road.

Rasier-CA, which runs the parent company’s Uber X budgeting service, owes money to the California Public Utilities Commission for failing to submit a number of reports for 2014.

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Under California law, Uber and similar services such as Lyft must provide the agency with annual reports on accessibility, driver availability, and safety information. Rasier was the only such company that failed to comply in 2014.

Rasier has the options of paying, ceasing business in California, or appealing the rule within 30 days. The company told CNN Money that it will proceed with the later.

“This ruling — and the associated fine — are deeply disappointing," the company told CNN Money in an e-mail statement.

The commission said Rasier has failed to provide raw numbers of customers requesting special vehicles such as wheel-chair accessible cars. Nor has it provided adequate information on driver incidents and payments to insurance companies.

"Going further risks compromising the privacy of individual riders as well as driver-partners,” Uber said in the email. “CPUC requests are also beyond the authority of the Commission and will not improve public safety."

UberX will continue to operate throughout the appeal process, according to a company spokesperson.  

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