In re Petition of Golden Plains Servs. Transp.
297 Neb. 105
| Neb. | 2017Background
- Golden Plains Services Transportation, Inc. (Golden Plains) is a Nebraska-certified "open class" carrier. The Nebraska Public Service Commission (PSC) alleged Golden Plains operated "on a taxi basis" and ordered it to cease such operations.
- Golden Plains sought a declaratory ruling on whether 291 Neb. Admin. Code, ch. 3, § 010.01C (Rule 010.01C) permits open class carriers to provide on-demand for-hire service or is limited to prearranged service.
- The PSC declined a declaratory ruling, opened an investigative proceeding as authorized by its rules, and issued an interpretation holding open class carriers may provide only prearranged transportation and not on-demand service.
- Golden Plains appealed the PSC’s interpretation to the Nebraska Supreme Court, arguing the PSC’s reading was inconsistent with the plain text of Rule 010.01C and with prior agency practice; Golden Plains also raised a "grandfathering/color of right" argument for past operations.
- The Supreme Court reviewed de novo, found Rule 010.01C’s text does not limit open class carriers to prearranged trips, and concluded the PSC’s contrary interpretation effectively created a new rule unsupported by the regulation’s language.
- The Court reversed and vacated the PSC’s order interpreting Rule 010.01C; it declined to rely on rule history but noted historical agency comments and contrasting rule language for limousines supported the Court’s textual conclusion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 010.01C limits open class carriers to prearranged service only | Golden Plains: Rule 010.01C’s plain language does not restrict on-demand service; thus open class may operate on-demand | PSC: Rule 010.01C should be interpreted to allow only prearranged service (no on-demand) | Court held: Rule 010.01C does not restrict open class carriers to prearranged service; PSC interpretation was not supported by the rule text and was vacated |
| Whether the PSC’s interpretation was within its authority to interpret regulations | Golden Plains: PSC exceeded authority by effectively creating a new restriction not found in the rule | PSC: § 75-118.01 authorizes the PSC to determine scope and meaning of regulations | Court held: PSC may interpret regulations, but here it read a restriction into the rule that the text did not support, effectively creating a new rule without required rulemaking |
| Whether agency history or prior practice supports PSC’s interpretation | Golden Plains: prior PSC comments and distinctions (e.g., limousine rule) show open class can be prearranged or on-demand; PSC has limited when it intends to | PSC: relied on its investigative interpretation and authority to define meanings | Court held: agency history, where considered, tended to support Golden Plains; but decision rested on plain text showing no restriction |
| Whether Golden Plains is entitled to grandfathering/color-of-right protection for past operations | Golden Plains: past service history should protect its operations | PSC: did not apply grandfathering; enforcement action followed investigation | Court held: Court did not squarely decide grandfathering in the opinion; reversal rests on invalidation of the PSC’s textual restriction |
Key Cases Cited
- Chase 3000, Inc. v. Nebraska Pub. Serv. Comm., 273 Neb. 133, 728 N.W.2d 560 (2007) (agency may interpret rules under statutory authority)
- Utelcom, Inc. v. Egr, 264 Neb. 1004, 653 N.W.2d 846 (2002) (rules are given their plain and ordinary meaning; construction only if ambiguous)
- In re Proposed Amendments to Title 291, 264 Neb. 298, 646 N.W.2d 650 (2002) (agency interpretation of undefined regulatory terms upheld as interpretation rather than new rule)