Measure calls for limiting new licenses and legislative
CARSON CITY, Nev. — A bill aimed at slowing the
growth of the chauffeured transportation industry in Las
Vegas was signed by Gov. Kenny Guinn.
The measure restricts the number of new livery
licenses that can be approved by the Transportation
Services Authority, which governs all Nevada ground
transportation except for taxicabs in Las Vegas.
The TSA will not be allowed to grant more than two new
vehicle licenses per company during the next year.
Applications that were on file with the TSA before the
measure was signed are exempt.
The measure also calls for a one-year study into the
limousine market in Las Vegas. It will “determine
whether or not an allocation system [for licenses] is
necessary or appropriate,” said Keith Sakelhide,
attorney for the TSA.
The study will be conducted by a legislative committee
and its findings will determine the life of the two-vehicle
The new law also imposes a $100 a year fee for each
livery vehicle or limousine in service, with the money
going to the TSA.
The amendment was added after another measure
that would have required operators to pay an additional
licensing fee of $400 per year (April 2003, page 20)
failed to gain legislators approval, Sakelhide said.
The size of the limousine market in Las Vegas –
Sakelhide estimated that there are nearly 850
limousines and about 30 operators in Las Vegas –
concerns some operators.
The Las Vegas limo market, according to Steve
Cunningham of Fox Limousines, “is exclusively driven
by incoming unsuspecting consumers. If you have an
open market, you can have some predatory gypsies
[who might take] advantage of people.”
The local tourism industry could get “a black eye if
tourists receive bad service,” he added.
At least one operator disagreed with the measure,
calling it “another attempt by the big guys to squeeze
out the little guys.”
“It is a fallacy to presume that prohibition (even if
temporary) of growth or expansion within an industry
will provide a stabilizing influence,” A.R. “Bob” Fairman,
of Carson City-based No Stress Express, wrote in a
letter to the Nevada Legislature. “To the contrary,
impeding competition will neither serve the public
good, not will it offer economic longevity.”