Proposal to limit number of limos suffers setback

Thursday, Aug. 26, 2004 | 10:46 a.m.

CARSON CITY -- A move to set up a system to limit the number of limousines operating in Clark County as one way to solve a myriad of problems has suffered a major setback.

The Legislative Commission on Wednesday refused on a split vote to reconsider its May 24 decision against recommending the state's Transportation Services Authority go forward with its study in setting up an allocation system.

An allocation system, already in place in the regulation of Clark County taxicabs, would establish a maximum number of vehicles a company could operate. The Nevada Taxicab Authority's allocation system is elaborately designed, with some vehicles allowed to operate only during certain times of the day and others restricted to within established geographic boundaries.

The Taxicab Authority assigns a certain number of "medallions," or permits for the operation of vehicles, with some being time- or geographically restricted. Every company in operation is entitled to the same number of medallions, with some smaller companies unable to place the maximum number of vehicles allowed on the road.

During major conventions, the Taxicab Authority allows additional special medallions to accommodate the increased number of tourists in the city.

Meanwhile, the Transportation Services Authority is to go before the Legislative Interim Finance Committee on Sept. 15 to ask for $50,000 to conduct the study on how to set up the allocation system.

Kimberly Maxson-Rushton, a member of the TSA, told the Legislative Commission that it would be "difficult" to get the emergency allocation without the support of the Legislative Commission.

The 2003 Legislature directed a study on whether an allocation system should be established. There was testimony at the session that there was price gouging, payoffs and unsafe limousines operating in Clark County.

The Legislative Commission named a subcommittee to do the study. The subcommittee recommended the TSA go forward toward developing a plan to restrict the number of limousines. But the parent Legislative Commission rejected the recommendation of its subcommittee.

But the TSA voted a month later to move forward with an independent study on the strengths and weaknesses of a potential allocation system in Clark County. Assembly Speaker Richard Perkins, D-Henderson, asked the Legislative Commission to reconsider its vote. But the motion for reconsideration died with the 6-6 deadlock.

Sen. Terry Care, D-Las Vegas, opposed reconsideration. He said the Legislature "abdicated" its authority to say whether there should be an allocation system. He said he didn't see the relationship between limiting the number of limousines and controlling the conduct of the operators. "It should be a free market," he said.

But Assemblyman William Horne, D-Las Vegas, said there is a problem with the limousine industry in Southern Nevada. He said, "If we shut it down now, we don't get the answers," in advocating the Legislative Commission reverse its position.

The authority wants to contract with the Tennessee Transportation & Logistics Foundation of St. Louis, Mo., for delivery of a study on a potential allocation system in Clark County.

Maxson-Rushton said the TSA would still have to come back to the 2005 Legislature to get final approval for any allocation system since it would need to raise the fees from $100 on each limousine to $600 on each limousine to pay back the $50,000 and to have additional staff for regulation.

Sen. Maggie Carlton, D-North Las Vegas, said the allocation was brought by the industry, not the TSA. She said she did not see how an allocation system would solve the problems on the street.

Carlton said she supported the fee increase to hire more people to control the problems on the street.

An intense competition has developed between the limousine and taxicab industries. And there has been testimony that California limousines that are not licensed in Nevada come into Nevada during the busy weekends to siphon off some of the business.

Brent Bell of Whittlesea-Bell Transportation Co. told the Legislative Commission that the subcommittee found that an allocation system was "better than what we have now." He said the 2005 Legislature would still make the final decision if the TSA were allowed to hire the private contractor.

There are an estimated 1,100 limousines on the streets in Clark County. There have been complaints that limousine drivers vie at hotel-casinos with taxicab drivers for customers. There are allegations of payoffs to doormen to direct customers to limousines. And the background of limo drivers is not investigated as is required by cab drivers.