CARSON CITY -- The limousine industry is out of control in Southern Nevada with an excessive number of limos, payoffs and unsafe vehicles, a parade of witnesses told a Senate committee Tuesday.
Representatives of limousine and taxicab companies urged the Senate Transportation Committee to impose a two-year moratorium on allowing additional limousines to operate in Clark County.
Mike Sullivan, a lobbyist representing Whittlesea-Bell, said, "The industry is in dire need of this bill," Assembly Bill 518. He said the moratorium was needed to allow a study to determine if there should be a system started to restrict the number of limos in operation.
Gary Milliken, representing Yellow-Checker-Star Cab Co., said there are a lot of complaints from cab drivers. "Sometimes it's less expensive to get a limousine than a cab," he said.
In recent years there were three taxis to one limousine. Now there are 1 1/2 cabs to one limousine, Milliken said.
Brent Bell of Whittlesea-Bell said in 2001 there were 23 companies operating limousines and only eight were profitable. There were 20 more companies operating in 2002, he said. While he did not have figures on profits for last year, he suggested they would be lower than 2001.
Other witnesses testified that limousine drivers make payoffs to doormen at hotels to steer customers away from cabs and into limousines.
Norman Hilbrecht, a Las Vegas attorney representing the Frias Holding Co., said the statistics gathered by the Transportation Service Authority were alarming. He said there was an increase of improperly maintained vehicles and lapses in insurance coverage. But Sen. Maggie Carlton, D-Las Vegas, disputed claims the area is flooded with limousines. She said she tried to hire a limousine to take her daughter to a prom. She said she could not get any to come to her house.
"They don't like to leave the Strip," said Carlton who ended up driving six kids to the prom.
Committee Chairman Sen. Ray Shaffer, R-North Las Vegas, said the limousine companies want to stop any new competition immediately.
"That doesn't look good," said Shaffer. He said people who want to participate in the industry would "have to forget about it" because this bill would become effective upon passage and approval of the governor.
John Mendoza representing Double Down Charter Bus Co. urged the committee to allow those applications before the Transportation Services Authority to be processed. He said Double Down wants three limousines and is ready to go to a hearing. There has not been any opposition to the application, he said.
Carlton also didn't like the makeup of the proposed study committee of three members of the Transportation Services Authority and three members who own limousines. She suggested there be an independent study to determine if there should be an allocation system to limit the number of limousines in operation.
Shaffer said the committee would decide whether to process AB518 on Thursday.
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