Over a span of a few days, Kimberly Maxson-Rushton went from being one of three Transportation Services Authority commissioners, to being the transportation representative of the reformatted Public Utilities Commission, back to the three-person TSA as its chairwoman.
The quick turnover was more about political wrangling than anything that had to do with the small state agency that regulates commercial transportation. Maxson-Rushton, daughter of former UNLV President Bob Maxson, didn't even have to call in any moving vans — one of the industries the TSA regulates.
She was appointed to the TSA in 2003 by Gov. Kenny Guinn after spending five years in the Nevada attorney general's office and five years in the Clark County district attorney's office.
Maxson-Rushton served as a deputy district attorney for the county before joining the gaming division of the attorney general's office and eventually moving up to regional chief deputy attorney general.
A darkhorse candidate for the upcoming opening on the state Gaming Control Board, Maxson-Rushton said that she'd accept an appointment from the governor but that she would also be content in her role as head of the TSA.
Maxson-Rushton talked with In Business Las Vegas about the role of the TSA and its work with businesses.
Question: The Transportation Services Authority may be one of the state's most misunderstood agencies because there's some crossover in the regulation of taxis. What exactly does the TSA do, and do you think your responsibilities resonate with the public?
Answer: Our primary responsibility as set forth by the Nevada Legislature is to regulate and oversee all forms of commercial transportation except for those under the jurisdiction of the Taxicab Authority. The Taxicab Authority has primary jurisdiction over taxicabs that operate exclusively in Clark County. We serve as the oversight board with respect to matters that are filed on appeal. We don't do anything pertaining to their day-to-day operations and simply serve as an appellate board and are the final arbitrator there.
As it pertains to our agency, we regulate all commercial transportation. That includes limousines, taxis outside of Clark County, moving companies, charter buses that operate exclusively on an intrastate basis. We do work with the Department of Transportation on charter buses that have interstate operations. We have a cooperative agreement with them. Lastly, we oversee tow trucks and non-emergency medical vehicles.
I see the primary responsibility of the TSA is to ensure safety of the traveling public. Because we are primarily a tourism-based state, we must ensure the safety of people who come to Las Vegas, whether they're chartering a bus or hiring a limousine, whether it be for professional purposes, convention purposes or personal purposes, we make sure all those vehicles are safe and operators know how to operate a commercial vehicle and passengers are not subject to any price gouging or inflated prices simply because of the fact that it's the peak time of the year.
The Taxicab Authority oversees taxis in Clark County and your office oversees them in the rest of the state. Isn't this a duplication of resources?
There's a uniqueness between our oversight of taxicabs and what the Taxicab Authority does. Clearly, there are hundreds of taxicabs that operate in and around the Las Vegas area, and it's a highly competitive business. They have primary responsibility for issuing medallions, setting rates and ensuring that the public has transportation. How we're separate from them, which is why we don't duplicate their efforts, is that in different parts of the state, taxicab service is not so much a competitive business, but a service to the citizens in the respective communities. In the rural communities, there's limited public transportation; most of the smaller rural areas don't have any public transportation, so the smaller taxi companies really do serve as a method to go shopping or to the regional airport. For those reasons, we don't set the rates.
In Las Vegas, they're set by the Taxicab Authority. We monitor the taxicab meters to be sure they are accurate and protect the traveling public. And, unlike what they do in other parts of the state, the Taxicab Authority has exclusive owner-operators, whereas we have lease agreements. There are independent contractors and individual taxicab drivers who lease their vehicles. We review those lease agreements and review the tariffs that are filed by the owner-operators to ensure that they are experienced for the overall safety of the public.
Taxi drivers and limousine drivers are constantly at odds over issues involving customer pickups and staging at resorts. How do you resolve issues when taxis are regulated by a different agency?
We have a full division pursuant to the administrative code that we operate under. The code prohibits limousine drivers from staging within 40 feet of a taxi stand. This is old Las Vegas history, to tell you the truth. What happened was that when the industry became so wildly popular, there was such infighting — out and out boxing matches and fistfights. There was a meeting between the Taxicab Authority and the Public Services Commission, which is what the TSA derived from. They decided that in order to maintain the balance and the uniqueness of the two industries — remember, limousines are perceived to be a luxury ride while taxis are for point-to-point destinations — the staging limitations were established. In addition to that, because the TSA and the TA are both part of the Department of Business and Industry, I have a good working relationship with the administrator of the TA — they have a solid board with good regulatory experience. Based on the soundness of the statutes we operate under, I believe that the balance has been made.
What are the biggest issues facing the state's limousine industry today? How is the TSA attacking those issues?
In 2003, following the legislative session, there were significant reports about how volatile the commercial transportation market was as a result of fluctuations in service. I say that by way of background, because what we've experienced since that time in late '03 was a saturation of the market. It's not my position as a regulator — this is just a personal philosophy — that regulators should dictate the economics of the industry they oversee. But at that time, Dr. Keith Schwer, a renowned economist from UNLV, was hired by a legislative subcommittee to do an independent study of the limousine market. He found that when the market is saturated, there is a declining level of safety because the smaller companies have to compete for business, there are more limos on the road and insurance prices increase. The first thing that would decline would be safety measures, such as covering insurance, quality checks on the vehicles and background checks on drivers.
What we have seen since 2003 has been a good, steady increase in the number of tourists and that has helped the otherwise suffering market. We saw a severe decline at that point and as a result of that, we considered and entertained an idea of setting a moratorium. Right now, we've reached a position of stability. What we're seeing is the hope that some of the concerns raised by the Department of Homeland Security and possible terrorist threats that name Las Vegas as a possible target have resulted in awareness. Tourists feel they're safe here.
I would be comfortable in saying that the limousine industry right now is very healthy, although oil and gas prices have caused them to have additional expenses, but for the most part, I think it's healthy.
What are the biggest issues facing the state's charter bus industry today? How is the TSA addressing those issues?
The charter bus industry, because it is partially deregulated, has had an ongoing dialogue with the TSA as to what jurisdictions the TSA has under what's called the Transportation Equity Act of the 21st Century. In 1997, Congress passed the TEA-21 (Transportation Equity Act for the 21st Century). It basically limited states to only regulate safety and insurance on charter buses. We were on the front end of that in working with Congress so we focused on safety and insurance, but it's a hands-off approach on everything else. So rates and service are left to the carriers themselves and we oversee safety and insurance.
It seems to be a clear line as to what the responsibilities of the TSA are, but we are constantly being questioned, both by the Legislature and our carriers. Recently, there was a District Court action filed in Federal Court in Washoe County in which it questioned the jurisdiction of the TSA coming in to do random operational assessments. Again, we only look at safety. Are the vehicles being maintained in accordance with all the applicable standards? Are they maintaining their insurance at the requisite $5 million amount?
From the perspective of the TSA, I don't believe there are any issues with charter buses. For the most part, there are very easy regulatory obligations on safety and insurance. They're critical, but not as complex as when the industry was fully regulated. But we're always questioned about whether or not we have overstepped our authority. I'd like to think that with the education we've done we've put that matter to rest.
What are the biggest issues facing the state's moving company industry today? How is the TSA tackling those issues?
Our biggest problem with respect to the moving companies are illegal operators, and it's a simple matter of consumer protection. For years, we had a number of illegal operators, and every time, the staff were either responding to a consumer complaint or responding to a complaint from a competitor or they actually just happened to be in a neighborhood and saw an illegal moving company. Now, fortunately, with the housing market settling down a little bit, it's not as bad. But a year ago at this time, when the housing market was going through a steady incline and we were seeing hundreds of thousands of new residents, especially in the Las Vegas Valley, they were everywhere. We would receive complaints of extortion — people would literally come in and load up a van and then call the individuals back and say, "You either give us an additional $200 or we're not giving your property back." People were getting victimized and we were getting calls from legislators and other interested in parties saying, "Something's got to be done."
The first thing we did was put out several public service announcements, warning consumers to look for the certificate of public convenience and necessity sticker on the vehicle. It's mandated that all carriers have that in their advertising. We talked to the publishers of the phone book and asked them to put a TSA notice in the phone book in the moving section. Only those carriers that have a certificate of public convenience and necessity are licensed to operate in the state of Nevada. I went on the various news channels and talked to consumer reporters to look for that and ask the right questions and we put a tip sheet on our Web site.
We have seen a wonderful decline in the number of illegal operators. One of them, we entered into a global settlement with after we filed a complaint in Justice Court because he was a repeat offender and was administered fines that were not being paid and he continued to operate. We filed the matter in court, which imposed a long, consecutive sentence unless he filed an application (to become a legal operator) or paid a fine and went out of business. If he didn't do that, he was looking at jail time. Another one was actually required to file an application and he's now an excellent certificated carrier. So we've had great success in that area and I think over time that the general public is a lot better protected.
And, finally, what are the issues facing the state's tow-truck industry?
Not as severe, but to a small degree we had illegal operators. Usually these are housed out of a garage and most often they pleaded a lack of understanding or awareness that they were required to have a license. So we have small incidents like that. But really, the biggest problem has been the interpretation of exactly what the jurisdiction of the TSA is. We have worked with AAA in assuring that they are not required because they are interstate operators. It's not a commercial business in the sense that they go out and elicit contracts. What they do is have personal contracts for people who sign up for AAA, and so we work with certain carriers and tow-truck operators and explain to them compliance. (AAA Nevada spokesman) Michael Geeser on behalf of AAA has done an incredible job in working with us, and when we adopted the specifics of TEA-21, the towing industry was right there. Quality Towing and Ewing Bros. were all here working with us to ensure that there was a balance between our oversight and protecting the industry.
If public citizens have a complaint against any of the industries you regulate, how do they make them?
The TSA's Web site has a complaint form. Initially, we were getting a lot of anonymous complaints from the Web site and the problem with that is you can't call the individual back to verify information, so it was difficult to actually act on that because there were holes in the report.
We also have a complaint form that individuals can come in and fill out with the help of our receptionist. Also, pursuant to a legislative audit we had in 2004 consistent with the TA, the Legislature mandated that all carriers under our jurisdiction have complaint packets in their vehicles or sent with bills. So the public can use those for complaints, or for commendations. We get several of those. I think we get more commendations from people saying they had a wonderful experience here.
Let's talk a little about the agency itself. How many are on the TSA staff? How many investigators do you have and what policing authority do they have?
We currently have a staff of 23 employees. We are Category 2 peace officers, limited under Nevada Revised Statutes in terms of jurisdiction. We have the ability to regulate whether a vehicle had insurance or registration. We currently have 12 enforcement officers, three of whom are nonsworn peace officers. Those three individuals are more forensic auditors — they go out and review files to make sure that insurance is being maintained. Anytime an enforcement matter arises or we require a citation, it's turned over to our enforcement division. We have nine of them statewide, six in Las Vegas and three in our northern office. We are currently without a manager of transportation, but hope to have one soon.
You chair a three-member board. Last year, there was some discussion about restructuring the commission. What happened to that?
As a result of a last-minute amendment that was put onto the bill that would have reduced the number of commissioners down to one commissioner, who would have returned to the Public Utilities Commission. That commissioner would have been identified as the transportation commissioner and would have heard matters similar to what we do on a day-to-day basis as hearing officers. The commissioner would have heard applications, violations and other pertinent matters on transportation and would have made a recommendation to the full Public Utilities Commission. That matter was deliberated and determined by the Legislature to be in the best interests of the state and, at the last minute, an amendment was added that dealt with diversion and kickbacks going to strip club owners and the gentlemen's clubs in and around the Las Vegas area. The cab drivers took offense to that and threatened to strike and as a result, the governor, always wanting to protect business and wanting to insure that this strong work force, the taxicab drivers, did not suffer any economic consequences, vetoed the bill after the conclusion of the session. Thus, the TSA was left intact.
Are there any issues regarding kickbacks to limousine drivers?
No. We know it takes place because of the fact that every once in a while our investigators will stage at the strip clubs, primarily for the purposes of serving illegal operators, especially during peak times of the year. They'll stage there and we know that kickbacks take place. We do have the authority to write a citation because we have a regulation that prohibits a driver from taking any form of compensation or gratuity other than from their employer or from the patron. Our primary obligation is protecting the public.
Do you foresee any scenario in which the Taxicab Authority and the TSA are merged?
Around this time every year, we see proposals. Some group has an interest in it and they've gone to some legislator. Truthfully speaking, I don't see it happening. The reason why is that our regulatory oversight is so unique compared with what the Taxicab Authority does. Because of the number of taxicabs Clark County has compared with what we have. It's so well regulated with Administrator (Richard) Land and the sophistication of the Taxicab Authority, they really do an excellent job of protecting the public and ensuring what's best for the riding public. For that reason, I don't believe there is any interest in merging from within the industry. I don't believe the regulators have any interest. You can't hastily throw together two state agencies and hope that it will work itself out and, if not, we'll come back in two years. That's not effective government.
What's next in your personal career? Do you have any desire to move into any other government service?
In my professional career I've had the incredible experience of working under two great Nevadans, Gov. Kenny Guinn and former Attorney General Frankie Sue Del Papa. Gov. Guinn's leadership and commitment to the state of Nevada has been amazing and serving under him has been the most rewarding aspect of my professional career. As for my future plans, I love this state and would be happy to continue my service to the citizens of Nevada in any way possible.