An aggressive ticketing policy in the South Side of Chicago has some residents and small-business owners calling enforcement and fines unbalanced in that some lower-income communities appear to be unfairly affected.
“This is a regressive city policy that targets Black and brown communities, keeping them in a cycle of generational debt," the Rev. Tyrone McGowan previously told Southland Marquee.
This is not a new concern in the area, as the matter was the focus of investigative reports in 2018. Those inquiries apparently calmed things down for a while, but the issue has reared its head again.
Sec. 54-391 of the Cook County Code of Ordinances stipulates that the city of Chicago reserves the right to revoke a business license if the holder of the license does not pay pay issued tickets.
The code allows a department or agency to deny renewal, suspend or revoke a general business license. The protocol calls for a notice to be sent to the applicant, with a copy going to the Department of Revenue. The notice is "Prima Facie," meaning the document itself is legally sufficient to deny issuance, deny renewal or suspend a business license. However, a license can only be suspended, denied or revoked after a proper license administration hearing is held, where the applicant is given seven days’ notice. The director of revenue may grant one continuance after a "show of good cause.”
The policy has primarily affected gig workers, such as Uber drivers. The aggressive ticketing and associated fines are of particular concern when the city suspends the business licenses of people who are unable to pay the fines.
Southland Marquee reached out to five aldermen in the area for their comments on the policy.
Pat Dowell (3rd Ward) declined to comment. The others – Stephanie Coleman (16th Ward), David Moore (17th Ward), Howard Brookins Jr. (21st Ward), and Sophia King (4th Ward) – did not respond to repeated requests for comment.
McGowan, a local pastor, called it a “regressive” policy that has negatively impacted communities of color.
“It primarily affects low-income Black households,” McGowan previously told Southland Marquee. “Eight out of the 10 ZIP codes with the most ticket debt are Black ZIP codes.”
A ProPublica analysis of ticket data supports the second part of his comment. Chicago ticket debt piles up disproportionately in the city’s low-income, mostly Black neighborhoods. Eight of the 10 ZIP codes with the most accumulated ticket debt per adult are majority Black, ProPublica reports. Its analysis went back to 2007 and its findings are based on U.S. Census data.
Chicago is the only major U.S. city with a program that deactivates gig workers, primarily ride-share drivers, for their unpaid ticket debts, according to NPR. In 2019 alone, the city's policy required Uber and Lyft to suspend more than 15,500 people, NPR reports.
Additionally, a 2019 WBEZ analysis of data obtained through public records requests proves Chicago's ride-share suspensions have hit the city's majority Black and low-income neighborhoods the hardest.
The ramifications can be far-reaching.
“So many people who are already struggling financially, sink even further into debt as a result of this policy,” McGowan said. “Many go into bankruptcy, which is not an ideal solution, over something as simple as an unpaid ticket.
"The fact that Chicago is the only major U.S. city with this policy is truly unacceptable," McGowan continued. "We are failing so many families and communities with this regressive policy.
It is preventing everyday Chicagoans from making a decent living," he said.
"As a result of the fines, many citizens cannot obtain business licenses with the city," McGowan said. "They cannot be barbers or beauticians. They are not allowed to participate in the ever-expanding ride-share economy and they cannot run for elected office to help try to change regressive policies such as this. The city wants the fines paid, but will not allow citizens to make an honest living to pay the fines. It makes absolutely no sense."
In 2007, about 1,000 Chapter 13 bankruptcy filings were related to unpaid tickets, according to a ProPublica Illinois report. The average debt to the city of Chicago was $1,500. As of last year, there were more than 10,000 Chapter 13 bankruptcy filings, with the average debt around $3,900. From 2007 to 2021, the city increased the cost of ticket fines, license suspensions and advanced the traffic camera program, according to the city's finance department. In 2016, Chicago asked the state to suspend licenses of more than 21,000 ride-share drivers, triple that of 2010, ProPublica Illinois reports.
If a license is denied, suspended or revoked, the Cook County Code calls for the business to be immediately closed.
The applicant can appeal the decision at a License Administration Hearing, but filing an appeal will not stop the business from closing down or the license suspension. If the appeal is denied, the Department of Administrative Hearings administers a notice to the appropriate party, saying the decision is upheld. If the appeal is successful, the department will notify the appropriate party and the business license will be reinstated.
The Department of Revenue can then file an appeal against the Department of Administrative Hearing's rule with Circuit Court.