Commission rejects plan for allocation of limousines

Tuesday, May 25, 2004 | 9:17 a.m.

CARSON CITY -- Despite reports of a Las Vegas-area limousine oversupply, a panel of state lawmakers declined to ask the Transportation Services Authority (TSA) to create a limousine allocation system.

A recommendation from the legislative commission against the proposed change is instead going to the TSA.

The Legislative Commission on Monday voted 7-5 to reject a recommendation from its study committee that an allocation system be developed as a way to prevent the problems and fights between limo and taxicab drivers in Southern Nevada.

Assemblywoman Vonne Chowning, D-North Las Vegas, who headed the study committee and supported the adoption of an allocation system, said the failure of the commission to act would mean tourists will continue to lack protection against price gouging or being taken on less direct -- and more expensive -- routes.

Chowning said that with no change, there still won't be any background investigations of drivers and the problems of the past six years would continue.

Sen. Terry Care, D-Las Vegas, however, said he did not see a relationship between the problems created by the drivers and curtailing the number of limousines.

"I don't see the connection between conduct and allocation," he said.

He said the Transportation Services Authority could regulate limousine drivers and said he had no problem with increasing the staff of the TSA and raising the annual fee on limousines from $100 to $600 a vehicle, as proposed by the study committee.

Sen. Maggie Carlton, D-North Las Vegas, said the problems could be handled through the existing regulatory system.

There are presently 24 companies with 1,100 limousines on the street in Clark County. There have been complaints that limousine drivers compete for customers with taxicab drivers, cutting their prices to do so, as well as reports of payoffs to doormen to direct customers to limousines.

And the backgrounds of limo drivers are not investigated; such checks are required for cabbies.

The commission was told there was a "flood" of limousines in Clark County now.

Four companies have voluntarily surrendered their permits because of a lack of business, and the TSA has impounded 14 limousines because they lacked insurance or their vehicles were not properly maintained. The study committee had recommended that the TSA start devising an allocation system and keep its moratorium on issuing new permits in effect for another six months. That would give the TSA time to have public hearings and determine how many limousines should be allowed and how many each company should receive.

The law, approved by the 2003 Legislature, said the Legislative Commission must make a recommendation to the TSA by May 28 whether it should establish by regulation a system of allocations for limousines.

The TSA would then announce by June 15 whether it will devise the system.

The study committee recommended the temporary moratorium be extended until the allocation system was in place. The present moratorium that expires July 1 allows each company to request two additional limos.

Assemblyman Bernie Anderson, D-Sparks, said the TSA needs to do something to solve the problems. Chowning said the company owners were in favor of the allocation system.

"We are not hammering the licensed owners over the head," she said.

But Care argued that a new company with enough money and experience would not be able to get a state permit to operate in Clark County under the moratorium and the allocation system "because you have frozen it for all time."

The TSA said it needed authority from the Legislature to do background investigations on drivers, and said it needed approval of the Legislature to raise fees to enable it to hire more staff, a change that can't come until the 2005 session.