Survey of Laws and Regulations of Airport Commercial Ground Transportation (2008)

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64 ILLINOIS Statewide Regulations The State of Illinois generally regulates commercial transportation within the state. Illinois requires vehicles to be registered and drivers to be licensed. 625 ILCS 5/6-101 (2007). Contact the Secretary of State’s office for general information regarding licensing and registration at (800) 252-8980 or http://www.cyberdriveillinois.com. The Illinois Commerce Commission (ICC) is charged with promoting and ensuring “public safety and consumer protection programs with regard to commercial motor carriers.” In addition, the ICC awards the right to provide shuttle bus service from ORD to downtown Chicago. 220 ILCS 5/14-105 (2007). Case History The “plaintiffs brought a class action seeking a declaration that the defendant's imposition of an airport departure tax on plaintiffs' ground transportation services violated 49 U.S.C.S. § 14505(2)” (Supp. II). The Appellate Court disagreed and held that the imposition of an airport departure tax on a ground transportation service did not violate 49 U.S.C.S. § 14505(2), even when the ground transportation ended outside of Illinois. Tri State Coach Lines v. Metro. Pier & Exposition Auth., 315 Ill. App. 3d 179, 732 N.E.2d 1137, 247 Ill. Dec. 805 (2000). The Airport Departure Tax Ordinance “imposed an occupation tax on all commercial vehicle operators departing from a metropolitan airport.” Plaintiffs brought a class action suit alleging that the tax violated their due process rights. The Appellate Court determined that an occupation tax on all commercial vehicle operators is constitutional. “The Court noted that operators directly benefited from the project, the taxation plan was a workable method to tax those who benefited, [and the plan] was reasonably related to its goal.” Terry v. Metro. Pier & Exposition Auth., 271 Ill. App. 3d 446, 648 N.E.2d 1047, 208 Ill. Dec. 125 (1995). The “plaintiff transportation businesses brought a class action against [the MPEA] challenging the constitutionality of the airport departure tax.” The Appellate Court found that the airport departure tax was not a violation of the Equal Protection Clause, nor did it violate the Uniformity Clause of the Illinois Constitution. Ill. Const. art. IX, § 4(a). Allegro v. Metro. Pier & Exposition Auth., 172 Ill. App. 2d 243, 665 N.E.2d 1246, 216 Ill. Dec. 689 (1996). Illinois—Chicago Airports O’Hare International Airport (ORD) and Midway International Airport (MDW) Overview ORD and MDW are owned and operated by the City of Chicago. Both airports are regulated by the City of Chicago Municipal Code under the authority of the airport commissioner. ORD publishes Landside Operations Regulations, which MDW uses verbatim for its ground transportation. To do business at ORD or MDW, a business may have to be licensed by the City of Chicago. License requirements vary depending on the type of business. Most commercial ground transporters will be required to hold at least a Limited Business License. To apply for a license, contact the City of

65 Chicago Department of Business Affairs and Licensing at (312) 744-6249 or through the City of Chicago Web site (http://www.cityofchicago.org/businessaffairs). ORD and MDW are open systems. Local Public vehicles, taxicabs, and livery services are closely regulated by several sources of local regulation including the City of Chicago and the O’Hare Airport Administrator. Landside Operations Regulations These rules are taken from the Ground Transportation Operator’s Manual. The Manual is published by the ORD Landside Operations Department under the Airport Administrator’s authority. The Manual also applies at MDW. Chicago, Ill., Municipal Code ch. 10-36-260 (2007). Commercial Vehicle Holding Area (CVHA) The CVHA is an unsecured staging area for commercial vehicles that relieves congestion, facilitates regulation and tax collection, and expedites loading and unloading. Commercial vehicles (except city taxis) depart for the airport on schedule or when passengers arrive for pickup. On-demand vehicles are dispatched as needed by city personnel to taxi lanes and the airport Hilton Hotel. Curbside operations Curbside drop-offs and pickups are limited to taxis, liveries, on-site rental car courtesy vans, charter buses, vendor delivery trucks, and airline small package pickups. The operating zones are diagrammed in the Ground Transportation Operations Manual (Ops. Manual). Vehicles arrive in designated lanes to pick up passengers after release from the staging area. Prearranged livery may park in a parking lot and meet passengers on foot under certain circumstances. Terminal 5 operations differ slightly from the other terminals; operators should consult the Ops. Manual. Buses and Shuttles The Bus/Shuttle Center is a centralized loading and unloading area for: 1. Hotel courtesy vans, 2. Rental car courtesy vans (off-site), 3. Parking lot courtesy vehicles, 4. Regional buses, and 5. All other commercial vehicles.

66 Public Transit The airport is served by Chicago commuter trains and buses (CTA) and the suburban bus network (PACE). City Licenses and Taxes Cited as: Municipal Codes ch. x-xx-xxx (2007) Department of Consumer Services The City of Chicago Department of Consumer Services provides guidance and oversight of all public passenger vehicles registered with the city. Taxicab Medallion Holders Regulations— Noncity taxis may pick up and drop off passengers; however, they may not solicit rides within the city. Taxis picking up passengers in the city must possess a medallion and comply with the department’s rules. Municipal Code ch. 2-24-040 (2007). Licenses that the city may require: 1. Public Chauffeur License—Municipal Code ch. 9-104 (2007). 2. Livery License—Municipal Code ch. 9-112 (2007). 3. Charter Bus License—Municipal Code ch. 9- 112 (2007). Ground Transport Tax Noncity vehicles pay a per-day tax to pick up passengers. The tax, unofficially known as the “Wheel Tax,” will vary based on the size of the vehicle, number of passengers, and type of transportation. Taxicabs registered in the City of Chicago pay a flat monthly fee. All other vehicles are charged per diem. The fee and per diem are collected by the Department of Revenue. Municipal Code ch. 346 (2007). Employer’s Expense Tax The tax applies to businesses that “employ 50 or more full-time workers or employees that perform 50% or more of their work service per calendar quarter in the City of Chicago.” Municipal Code ch. 3-20 (2007). Motor Vehicle Lessor Tax There is a per-day tax for vehicles leased for use within the City of Chicago. Municipal Code ch. 3-48 (2007). Vehicle Fuel Tax “The Vehicle Fuel Tax imposes a tax on the sale of vehicle fuel to a retailer doing business in

67 Chicago, or who purchases fuel for use in Chicago, for which the tax has not been paid.” Municipal Code ch. 3-52 (2007). The Metropolitan Pier and Expansion Authority Act formed a municipal corporation (Metropolitan Pier and Exposition Authority) (MPEA) with the authority to tax taxicabs at O’Hare Airport. 70 ILCS 210 (2007). MPEA Airport Departure Tax Registration Companies must register with the Chicago Department of Consumer Services before accepting passengers for hire. The department records plate numbers, ownership, address and phone numbers, vehicles, taximeters, insurance, and other information. In order to bring a taxicab, livery, charter vehicle, or any other vehicle transporting persons to or from ORD and MDW, the vehicle must be registered. 70 ILCS 210/13 (f) (2007). Suburban vehicles must display their MPEA Registration Cards; City of Chicago taxis only need to display their city registration. Id. Tax Stamps A tax stamp must be submitted every time a vehicle leaves the airport with a passenger. The stamps are collected by Department of Aviation personnel. Exempt vehicles include: 1. Public carriers, 2. Not-for-hire taxis, and 3. Vehicles not transporting persons while on airport property. 70 ILCS 210/13 (f) (2007). Collections MPEA taxes are collected by the City of Chicago Department of Revenue. 70 ILCS 210/13 (f) (2007). ORD has considered introducing an electronic vehicle tag and collection system, but there is no implementation plan. Id. Penalties and Appeals Charges against City of Chicago vehicles are handled by the Department of Consumer Services. Charges against noncity vehicles are handled in accordance with MPEA procedures. Hearings are heard in front of a Hearing Officer; the accused violator has several rights and obligations under the MPEA Act.

68 Appeals are heard by the Chief Executive Officer of the MPEA. 70 ILCS 210/13 (f) (2007). Federal Jurisdiction Vehicles carrying passengers with immediate prior or subsequent movement by air and staying within a 25-mi radius of ORD and MDW are exempt from FMCSA regulations. 49 C.F.R. § 372.117 (2007). Transportation within the municipal limits of Chicago is exempt. 49 U.S.C.S. § 13506 (2007). In addition, the FMCSA regulations describe a specific exempt zone around Chicago: Within the corporate limits: Chicago, Evanston, Oak Park, Cicero, Berwyn, River Forest, Willow Springs, Bridgeview, Hickory Hills, Worth, Homewood, Lansing, and part of Burr Ridge IL (see 49 CFR Appendix F Sec. 2 for a specific delineation); and Hammond, Whiting, East Chicago, and Gary, IN. Within Niles, Maine, Leyden, Norwood Park, Proviso, Lyons, Riverside, Stickeny, Worth, Calumet, Bremen and Thorton Townships; Cook County; and then parts of Downers Grove Township in DuPage County (see 49 CFR Appendix F Sec. 2 for a specific delineation). Within Indiana: north of U.S. Highway 30 and west of U.S. Highway 49 49 C.F.R. 399 app. F (2007). Contact Information Airport Operations (773) 838-0625 Landside Operations (773) 894-2085 Dept. of Revenue—Enforcement (312) 747-0659 Department of Business Affairs (312) 744-6249 O’Hare Customer Service (773) 686-2200 MPEA (312) 791-7500