Nevada Administrative Code Chapter 706B - TRANSPORTATION AUTHORITY
Overview of NAC Chapter 706B (Context)
Chapter 706B governs how the Nevada Transportation Authority (NTA) regulates transportation services such as:
Tow car operators
Charter buses
Limousines
Airport transfer services
Certain passenger carriers
The chapter focuses on permits, compliance, safety, rates, enforcement, and discipline.
Case 1: Permit Application Denial for a Tow Car Company
Scenario
A new tow truck company applies for a certificate of public convenience and necessity to operate in Clark County.
What NAC 706B Requires
Proof of financial responsibility (insurance)
Evidence of fitness, willingness, and ability to operate legally
Vehicles must meet safety and equipment standards
Owners must have acceptable background and compliance history
What Happens
The NTA discovers:
The owner previously operated an unlicensed tow service
One vehicle fails inspection
Insurance documentation is incomplete
Result
The Authority denies the permit application, citing failure to demonstrate fitness and compliance.
Key Principle
NAC 706B allows the NTA to protect the public by denying entry to operators who show a pattern of noncompliance or unsafe practices.
Case 2: Rate Violation by a Licensed Tow Operator
Scenario
A licensed tow company charges a motorist $600 for a non-consensual tow after a parking violation.
What NAC 706B Requires
Tow operators must follow approved rate schedules
Non-consensual tows have maximum allowable charges
Rates must be clearly disclosed and filed with the NTA
What Happens
A consumer files a complaint.
The NTA audits the invoice and compares it to the approved rate tariff.
Result
The company is found to have overcharged
The operator is fined
The company must refund the excess amount
Key Principle
NAC 706B ensures price transparency and consumer protection, especially in situations where customers have no choice (non-consensual tows).
Case 3: Failure to Maintain Required Insurance
Scenario
A charter bus company allows its insurance policy to lapse for 10 days but continues operating.
What NAC 706B Requires
Continuous insurance coverage
Immediate notification to the NTA of changes or lapses
Suspension of operations if insurance is not active
What Happens
The NTA receives notice from the insurer and conducts an investigation.
Result
Immediate suspension of operating authority
Administrative fines
Operations may resume only after proof of insurance and penalties are satisfied
Key Principle
Insurance is considered non-negotiable under NAC 706B because it protects passengers and the public from financial harm.
Case 4: Unsafe Vehicle Condition and Driver Conduct
Scenario
A limousine is stopped during a roadside inspection.
What NAC 706B Requires
Vehicles must pass periodic inspections
Drivers must comply with safety and conduct standards
Vehicles must carry required safety equipment
What Happens
Inspectors find:
Bald tires
Inoperative brake lights
Driver without required documentation
Result
Vehicle is placed out of service
The company receives a citation
Reinspection is required before the vehicle can return to service
Key Principle
NAC 706B prioritizes preventive enforcement to stop unsafe vehicles before accidents occur.
Case 5: Unauthorized Operation (Illegal Carrier)
Scenario
An airport shuttle service operates without NTA authority, advertising rides online and picking up passengers at the airport.
What NAC 706B Requires
Proper operating authority before transporting passengers for hire
Display of NTA identification
Compliance with jurisdictional rules
What Happens
NTA enforcement conducts a sting operation and confirms illegal operations.
Result
Significant administrative fines
Cease-and-desist order
Possible vehicle impoundment
Bar from obtaining future authority for a defined period
Key Principle
Operating without authority is treated as a serious violation, not a minor paperwork issue.
Case 6: Complaint-Driven Investigation and Hearing
Scenario
Multiple passengers complain about a charter bus company canceling trips without refunds.
What NAC 706B Requires
Fair business practices
Compliance with filed tariffs and refund policies
Cooperation with NTA investigations
What Happens
The NTA opens a formal investigation
Evidence is gathered (contracts, complaints, bank records)
A hearing is scheduled
Result
The Authority orders customer refunds
Imposes fines
Places the company on probation with heightened oversight
Key Principle
NAC 706B allows the NTA to act as a quasi-judicial body, resolving disputes and enforcing compliance through hearings.
Case 7: Repeated Violations Leading to Revocation
Scenario
A tow company repeatedly violates rules over several years:
Overcharging
Failure to report accidents
Ignoring compliance orders
What NAC 706B Allows
Progressive discipline
Consideration of past violations
Revocation of authority when corrective efforts fail
What Happens
After multiple fines and suspensions, the NTA initiates revocation proceedings.
Result
Operating authority is revoked
Company must cease operations entirely
Vehicles and permits are no longer valid
Key Principle
NAC 706B is designed not just to punish, but to remove chronically noncompliant operators from the transportation market.
Summary of Core Purposes of NAC Chapter 706B
Protect public safety
Ensure fair pricing
Regulate who may operate transportation services
Enforce accountability through inspections, fines, and hearings
Maintain integrity of Nevada’s transportation system
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