Uber, Lyft face regulatory hurdles before they begin actual operation
The day ride-hailing company fans have been waiting for — and taxi company owners and their drivers have been dreading — is fast approaching.
But even if Uber and Lyft are approved to operate by the Nevada Transportation Authority on Monday as expected, it’s still unclear when those companies will actually begin transporting customers in Southern Nevada.
That’s because of a governmental conundrum the state, the companies and Clark County will have to resolve in the days ahead.
The Transportation Authority is meeting Friday to consider regulations that have been reviewed by the three-member board as well as the Legislative Commission, which pre-approved them last month.
For the state, the last step of the process is for the authority board to conduct a public hearing and adopt the regulations, which is scheduled to occur at the end of the meeting that begins at 9 a.m., at the Grant Sawyer Building.
Assuming the regulations are approved as expected, the board will return to the same location Monday at 9:30 a.m. to consider approval of the licenses for Uber, operating under Rasier LLC, and Lyft.
Throughout the regulatory process, lawmakers have stressed that they want transportation network companies to begin operating as quickly as possible, presumably because they want to put that on their legislative resumes for their constituents to see or because they want to begin collecting the 3 percent tax that will fund the state’s highway fund and a new medical school at the University of Nevada, Las Vegas.
The authority board has complied, scheduling hearings and meetings as quickly as they could within the bounds of open meeting law posting requirements.
If Uber and Lyft are licensed Monday, it starts the clock for when they must begin operating.
According to regulations that would be approved Friday, licensed companies must begin operations within 30 days of approval. Section 23 of the regulations say, “Unless otherwise authorized by the Authority, each applicant for a permit or for the transfer of a permit whose application has been granted must commence operations within 30 days after the date on which the permit was issued or transferred or the applicant forfeits the rights granted.”
That means Uber and Lyft must be running by Oct. 15 or they’d lose the license.
And that’s a problem.
The Clark County Business License Department has asked the Clark County Commission to expedite an ordinance spelling out the process for transportation network companies to obtain county licensure.
In the best-case scenario, the companies wouldn’t be able to begin operations in the county until early November with the commission scheduled to conduct a hearing on Oct. 20 and approve an ordinance on Nov. 3.
Clark County Business License Director Jacqueline Holloway has said that it would be illegal for transportation network companies to operate in the county unless they have a county business license.
Can’t the state just delay approving licenses for Uber and Lyft?
Not without violating another section of the regulations.
Section 17 of the proposed regulations say, “Upon receipt of a completed application and upon a determination by the Authority that an applicant meets the requirements for the issuance of a permit, the Authority shall issue a permit to the applicant within 30 days after receipt of the application and the determination by the Authority.”
Uber and Lyft submitted their applications in mid-August, which means the authority must act quickly — which is why the special meeting was set for Monday.
Authority officials say Uber and Lyft could operate within the regulations by setting up an office somewhere — anywhere — within the state and running at least one vehicle as contracted driver.
There’s also a possible loophole in Section 23 that could solve the problem since it includes the phrase, “Unless otherwise authorized by the Authority … “
How it plays out when Uber and Lyft will be allowed to operate should be known by Monday.
Contact reporter Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
