Nevada’s Law on Allowing No Competition b/w Limo Services is Crazy

Nevada’s Law on Allowing No Competition b/w Limo Services is Crazy

For businesses looking to expand and create more jobs in the field of limo services, it is bad news for them if doing so in the state of Nevada, as the rule present over there allows no competition to run between limo companies so as to remain at the fair level all the time. Crazy you could say, but that depends on you, how crazy other laws you might have seen or know about.

According to the existing law, the Nevada Transportation Authority has the power to deny purchase of additional vehicles by smaller companies if they are looking to expand their business. The reason is that expanding their fleets would increase or create unnecessary competition between motor transportations. Or for better understanding, if the fleet is increased by small companies then it would force big companies to expand their fleet too making intense competition. Nice free market place, don’t you think.

Earlier in 2015, Republican Gov. Brian Sandoval had vetoed a bill for stopping this practice based upon safety measures. But he did that only after signing a bill that allowed Uber and Lyft to operate in the state.

Anastasia Boden (attorney challenging anti-competitive occupational licensing laws), had earlier told that one of the smaller operators sued the state for upholding their constitutional rights to earn a free living in Nevada. Reno city residents Ron and Danell Perlman operate seven limousines in Nevada, and have nine limos used in California but they want to increase their fleet due to the rising demand. But they were not allowed to do that, as Boden said. Perlman’s application was protested by an already existing business stating that new competition would harm their business. Their application was rejected as they couldn’t prove that the market would be assisted by adding any additional limousines anywhere. And this problem is of market satisfaction not of the NTA.

The 2017 Legislature may help this rule to be halted through Assembly Bill 240, says Boden. She said that the bill includes all current existing safety regulations that also gets rid of old provisions allowing big companies to protest against new applications. Also the bill requires NTA to give licenses to qualified applicants (smaller companies) to do business satisfactorily, otherwise why were they granted acceptances to do business in the first place.

This Legislature would stand up against protectionism law, says Boden. Only now the bill needs to be put on Gov. Sandoval’s desk needing his signing to make AB 240 into law.

It is good that other states do not have laws like these, says well known chauffeur provider Raj Limo (of Limo Service San JoseSan Francisco Airport Limo Service and Limo Service San Jose Airport, shuttle service in san joseshuttle service san jose to san francisco airport), and adds that the bill 240 will take over the woes of the Nevada law.


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