Las Vegas Sun

March 28, 2024

Limousine regulation issue again tackled by Nevada regulators

In what some see as a test case over the maintenance of limousine monopolies in Nevada, a judge ordered the state Transportation Services Authority to hold a hearing for a man who sought a license to drive a limo in Las Vegas more than two years ago.

District Court Judge Mark Denton instructed the TSA to conduct a hearing for John West, who initially sought a certificate of public convenience and necessity to drive a limo in September 1997.

State regulations require prospective limousine drivers to submit to various background checks before they can be certified. Regulators check driving records, criminal backgrounds, insurability and financial records as well as vehicle safety.

The TSA dismissed a hearing for West because officials said the application was incomplete. West has said some of the information sought by the agency could give competitors an advantage if it became public. Under licensing procedures, competitors have the ability to comment on whether a new applicant could adversely affect companies already licensed.

Under Denton's order, the TSA will be required to conduct the hearing based on information West and intervenors have submitted and can't include information gathered since the initial filing.

Commission Chairman Paul Christensen said last week a prehearing conference is planned Thursday. He said the commission still doesn't have the information it sought when the application was dismissed and that commissioners were frustrated by West's delays in getting information to them on which to base a decision.

West said that during the application process he asked for a delay because he feared he didn't have all the information the TSA needed after watching a colleague go through hearings.

The West case has been the focus of a philosophical debate over Nevada's limousine licensing regulations. The Washington-based Institute for Justice has provided legal help for West, who currently works in Albuquerque, N.M., as a mechanic.

The Institute for Justice, an organization that advocates free-market positions for companies regulated by government agencies, has pledged to battle on behalf of independent limousine operators against the state's regulations.

The organization believes it is unfair for the state to require financial disclosures that could help competitors.

The Institute for Justice said West spent hundreds of hours and about $20,000 to complete his application and had to hire a lawyer and an accountant to respond to the TSA's requests for information.

"You should not need to hire a lawyer and an accountant and spend $20,000 just trying to get a license to drive one limousine," said Dana Berliner, a senior attorney with the Institute for Justice and West's lawyer.

Berliner said last week that she expects the TSA to approve West's license.

"If John has a clean background, a good driving record, insurance and his vehicle is safe, the presumption should be that he will get a license," Berliner said.

But Christensen indicated it's not that simple.

"We're not mad at him or anything and we have no preconceived ideas about the application," Christensen said. "But we felt the application was incomplete when it was submitted and we're not going to be adding to the record. So I really don't know what else we're going to get at this hearing."

Even the judge's order referenced the likelihood that West's application would be denied.

"As the motion to dismiss the application was based upon the failure to timely submit the additional financial information, once (West) indicated that he would stand on his application without such additional financial information, the motion should have been denied and a hearing held on (West's) application notwithstanding the authority's understandable frustration with (his) history of delay in the proceedings," Denton's order said.

West, who moved to Albuquerque about seven months ago to work as an auto mechanic at an independent repair shop, said he would move back to Las Vegas if his license is approved.

"I had to close the business and go to work here, but I'll be back for sure when the license is approved," West said by telephone. "It's my dream."

West said his attorney and accountant have assured him that the financial information needed by the TSA is included in the current application. West and Berliner said the TSA's financial officers told them the application was complete.

"Besides," Berliner said, "what difference does it make to a passenger in a limousine whether the driver has $4,000 in his checking account or $6,000?"

West said if his application is denied, he would go back for another judicial review because he is confident he is qualified under state statute to be certified.

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