EDITORIAL: Sandoval’s puzzling veto

GOP Gov. Brian Sandoval worked closely with majority Republicans in the Legislature this year; he vetoed just six bills and signed almost 550. By and large, lawmakers didn’t send the governor legislation he wouldn’t sign.

That record of cooperation made Gov. Sandoval’s veto of Senate Bill 183 all the more surprising and disappointing.

SB183 would have reformed the protectionist Nevada Transportation Authority, which denies small limousine companies the ability to increase their fleets if their competitors disapprove. You read that correctly: Under current law, a company’s competitors can deny it new business if they say it hurts them. It’s one of the worst policies in the state. Competition keeps costs down and benefits consumers.

The bill would have allowed existing limousine companies to challenge a carrier’s bid to increase its fleet on safety grounds, but not competitive concerns. But Gov. Sandoval cited safety concerns as the reason for last week’s veto: “The Nevada Transportation Authority’s ability to consider the economic viability of a motor carrier operator is an important factor in evaluating whether that operator has the necessary resources to transport members of the public safely and can maintain industry safety standards.” Nothing in SB183 would have undermined the authority’s safety measures.

The veto message was even more puzzling considering Gov. Sandoval signed into law bills that will allow transportation network companies such as Uber to operate in Nevada. The taxi and limousine industries’ arguments against allowing such businesses were based on public safety, primarily the backgrounds of contracted drivers and the reliability of their personal vehicles. But the governor had no problem signing those pro-competition, pro-consumer bills. Where did that disconnection come from?

The veto came across as a consolation to large limousine operators who’ll likely lose business to Uber as soon as regulations are written and the company can re-launch service in Nevada. However, the veto will punish small businesses that have an opportunity to grow but can’t because their competitors won’t let them. Ron Perlman, co-owner of Reno-Tahoe Limousine, said the company has lost more than $45,000 a year because it can’t add more cars to serve the week-long American Century Celebrity Golf Championship held at Lake Tahoe.

Here’s hoping a court challenge brought by the Pacific Legal Foundation on behalf of another Reno limousine company succeeds in overturning existing law on due process grounds. It’s unfortunate that Gov. Sandoval passed on a chance to right such a wrong.