Bill limiting limo industry advances

Monday, June 2, 2003 | 11:20 a.m.

CARSON CITY -- A bill to slow down the growth of limousines and hopefully to bring some order to the transportation turmoil in Clark County has been approved by a Senate-Assembly Conference Committee.

"We're approaching 1,000 limousines and it's getting out of control," said Assemblywoman Vonne Chowning, D-North Las Vegas.

Chowning, chairwoman of the Assembly Conference Committee, said Assembly Bill 518 also cracks down on unlicensed household goods movers and tow trucks. It would allow the Transportation Services Authority to impound a vehicle if it is operating illegally.

The bill initially called for a moratorium on permits for new limousines in Southern Nevada. There were complaints that limo drivers were paying off doormen at hotels to direct tourists to limos, rather than taxicabs.

There were allegations the limousines were undercutting the prices of the taxis.

The Senate rejected the moratorium. Instead it agreed that those companies that have applications already filed would be allowed to process them before the TSA. Those companies that file new applications after Sunday would be limited to two limousines.

Chowning said it takes the TSA six to eight months to process an application so this would slow down the new limousines on the street.

The slowdown language is in the final bill. And it calls for a study, to be financed by the industry, on setting up an allocation system of limousines, much like is in effect in the taxicab industry.

The study would be completed within a year and the TSA would then make a decision whether to impose the allocation system.

The bill also imposes a new $100 a year fee on each limousine in service with the money going to hire additional investigators for the TSA.

Chowning said a new amendment was included in the conference report to tighten the law governing unlicensed household movers and tow trucks. She said these illegal operations often use a "bait and switch" scheme.

They tell the customer one price and then charge an inflated amount when the furniture is delivered or the car is towed to its destination. If the consumer objects, Chowning said they hold the household goods or auto "hostage" until the added price is paid.

She said these unlicensed tow trucks "sit out on I-15 on weekends near Silverton" waiting for people to break down. One complaint she received came from a consumer who said he was charged $500 for a tow by an unlicensed operator.

AB518 now gives the TSA the authority to issue a cease and desist order involving unlawful advertising found in the Yellow Pages and other places and to order the telephone number in the advertisement disconnected.

If the telephone number is a paging service, the TSA can ask the service to change the number of any beeper or disconnect it.

The Assembly accepted the conference report Sunday and the Senate is expected to follow suit today and send the bill to Gov. Kenny Guinn.