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

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11 Benefits and Costs Benefits: • Balances the need for airport control with the costs of overseeing a regulatory system. • Strict regulatory schemes are expensive to maintain. A semi-closed system can provide revenue for the airport, and provide practical quality control. • The costs of enforcing the system are not as high as in a fully closed system. • The lower barriers to entry make it easier for competitors to replace a poorly performing operator. Costs: • Without proper oversight, the system can become unruly. • An airport must strictly enforce its policies to maintain the benefits of a semi-closed system. If the rules put in place by the airport are not enforced, then airport revenue and/or customer service are likely to suffer. Examples of Airports Atlanta-Hartsfield International Airport (ATL) San Diego International Airport (SAN) OVERVIEW OF FEDERAL REGULATION The federal government generally regulates commercial transportation in the United States through the U.S. Department of Transportation (USDOT). The Federal Motor Carrier Safety Administration (FMCSA) and the National Highway Traffic Safety Administration (NHTSA) specifically address via regulation and rule making commercial ground transportation at U.S. airports. Title 49 of the United States Code (U.S.C.) grants these administrations the authority to regulate transportation. Federal Motor Carrier Safety Administration The FMCSA was created in 1999 by the Motor Carrier Safety Improvement Act.1 The stated purpose of the FMCSA is to reduce crashes, injuries, and fatalities involving commercial vehicles. Records and Permits Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce must be registered with the FMCSA and must have a USDOT Number. 49 C.F.R. § 391 (2007). The following states require a USDOT number for all carriers, even those that only operate intrastate: 1 106 Pub. L. No. 159, 113 Stat. 1748.

12 Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Iowa, Kansas, Kentucky, Maine, Michigan, Minnesota, Missouri, New York, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Washington, West Virginia, Wisconsin, and Wyoming. Companies that operate as “for hire” carriers (for a fee or other compensation) that transport passengers or federally regulated commodities, or arrange for their transport, in interstate commerce are also required to have interstate operating authority. 49 C.F.R. § 392.9a (2007). Drivers must be licensed in order to operate a motor vehicle, and may not possess more than one driver’s license at one time. 49 C.F.R. § 383.21, 23 (2007). Fees will be assessed to apply for motor carrier registration and insurance. 49 C.F.R. § 360.3 (2007). Vehicle Operations Commercial vehicles must be inspected, repaired, and maintained on a regular basis in order to remain in operating condition. 49 C.F.R. § 396.3 (2007). FMCSA establishes federal motor vehicle safety standards to be met for all functioning aspects of motor vehicles. 49 C.F.R. § 571 (2007). Driver Rules Drivers may not operate vehicles while impaired by drugs, alcohol, fatigue, or illness. 49 C.F.R. § 392.3-5 (2007). Suspensions and Appeals Operators may have their permit suspended or revoked for failure to adhere to FMCSA, state, or local regulations. 49 C.F.R. § 385.421 (2007). Operators may appeal suspensions of operating authority pursuant to 49 C.F.R. § 385.423 (2007). Exemptions Vehicles carrying passengers with immediate prior or subsequent movement by air and staying within a 25-mi radius of U.S. airports are exempt from FMCSA regulations. 49 C.F.R. § 372.117 (2007). Transportation within the municipal limits in which the airport is located is also exempt. 49 United States Code Service (U.S.C.S.) § 13506 (2007). The following locations contain special commercial zones that are exempt from FMCSA regulation:

13 1. New York, N.Y. 2. Chicago, Ill. 3. St. Louis, Mo.–East St. Louis, Ill. 4. Washington, D.C. 5. Los Angeles, Cal., and contiguous and adjacent municipalities. 6. Philadelphia, Pa. 7. Cincinnati, Ohio. 8. Kansas City, Mo.–Kansas City, Kan. 9. Boston, Mass. 10. Davenport, Iowa; Rock Island and Moline, Ill. 11. Commercial zones of municipalities in N.J. within 5 mi of New York, N.Y. 12. Commercial zones of municipalities in Westchester and Nassau Counties, N.Y. 13. Tucson, Ariz. 14. Albuquerque, N.M. 15. Ravenswood, W. Va. 16. Lake Charles, La. 17. Syracuse, N.Y. 18. Baltimore, Md. 19. Cleveland, Ohio. 20. Detroit, Mich. 21. Seattle, Wash. 22. Albany, N.Y. 23. Minneapolis-St. Paul, Minn. 24. New Orleans, La. 25. Pittsburgh, Pa. 26. Portland, Ore. 27. Vancouver, Wash. 28. Charleston, S.C. 29. Charleston, W. Va. 30. Memphis, Tenn. 31. Houston, Tex. 32. Pueblo, Colo. 33. Warren, Ohio. 34. Louisville, Ky. 35. Sioux City, Iowa. 36. Beaumont, Tex. 37. Metropolitan Government of Nashville and Davidson County, Tenn. 38. Consolidated City of Indianapolis, Ind. 39. Lexington–Fayette Urban County, Ky. 49 C.F.R. § 399 app. F (2007). Contact Information General Information (800) 832-5660 Licensing (202) 366-9805 Web site: http://www.fmcsa.dot.gov

14 National Highway Traffic Safety Administration NHTSA is granted authority by the USDOT. 49 U.S.C. ch. 501 (2007). The stated mission of NHTSA is to save lives, prevent injuries, and reduce economic costs due to road traffic crashes through education, research, safety standards, and enforcement activity. NHTSA prescribes motor vehicle safety standards for vehicles involved in interstate commerce and conducts safety research and development. 49 U.S.C. ch. 301 (2007). Motor Vehicle Safety NHTSA implements and regulates the safety standard requirements for vehicles operating on U.S. highways. The standards apply to areas including but not limited to, emissions, air bags, child safety seats, and seat belts. 589 C.F.R. § 301 (2007). Highway Safety NHSTA establishes guidelines and regulates the implementation of state highway safety programs. 23 U.S.C. § 402 (2007). NHSTA provides grants to states to implement programs to reduce drunk driving and increase general highway safety. It also conducts research and development of highway safety. 23 U.S.C. § 405-7 (2007). The NHSTA Advisory Committee advises, consults, and recommends actions to the Secretary of Transportation on matters regarding highway safety. 23 U.S.C. § 404 (2007). National Driver Register The National Driver Register (NDR) is a computerized database of information about drivers who have had their licenses revoked or suspended, or who have been convicted of serious traffic violations such as driving while impaired by alcohol or drugs. 49 U.S.C. ch. 303 (2007). Employers of motor vehicle operators may request an NDR file check on a current or prospective employee if he or she is seeking employment or is employed as a driver. 49 U.S.C. ch. 303 (2007). Contact Information General Information 1-888-327-4236 Web site: http://www.nhtsa.gov

15 Real Interstate Driver’s Equity Act The Real Interstate Driver’s Equity (RIDE) Act provides for the constitutional exercise of federal control over intrastate transportation. 49 U.S.C. § 14501 (2008). As a practical matter, RIDE has little direct effect upon airport ground transportation. While RIDE generally prohibits states and their political subdivisions from imposing fees on operators providing prearranged ground transportation, airport operators are specifically exempt. 49 U.S.C. § 14501(d)(3)(B) (2008). Passenger Motor Carriers States and their political subdivisions may not enact any rule or law affecting carriers regulated by federal law regarding: 1. Scheduling of interstate or intrastate transportation; 2. Rate changes; and 3. Authority to provide intrastate or interstate charter bus transportation. 49 U.S.C. § 14501(a) (2008). Prearranged Ground Transportation Two or more states may not enact any rules or agreements having the force of law that affect prearranged ground transportation if the carrier: 1. Meets the registration requirements of 49 U.S.C. § 13901 for interstate transportation of passengers, or 2. Meets all intrastate licensing requirements of the operator’s domicile state. 49 U.S.C. § 14501(d) (2008). Exemptions Airport operators are broadly exempt from the requirements of § 14501(d) and may provide preferential access to one or more providers of pre-arranged ground transportation service. Transportation in the State of Hawaii is broadly exempted from the requirements of the RIDE Act. § 14501(a)-(d).