WASHINGTON, D.C. (May 6, 2008) — Four provisions designed to increase the protection of private charter bus companies from undue competition from public agencies receiving federal funds went into effect last week governing the types of charter service that can be provided by public transit agencies.

49 CFR Part 604, published as a final rule on Jan. 14, began its revisions with the passage of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users (SAFETY-LEU) in August 2005. The National School Transportation Association negotiated a Charter Service Agreement with the Federal Transportation Administration and public transit agencies that provided for flexible penalties when transit agencies violate either federal charter bus or school bus rules. The previous law allowed only for withholding of all of a transit agency’s federal funding. The new law will allow withholding of a portion of a transit agency’s formula apportionment. In addition, FTA is required to investigate complaints rather than having the discretion to investigate or not investigate.

In addition to a new definition of charter service, the new federal charter rule issues requirements for private bus companies wishing to register as federally-certified charter providers, replacing the old “willing and able” process. Private companies must also meet a set of requirements for filing complaints regarding registration on the FTA Web site. The new rule also allows private companies to request cease and desist orders be issued to any transit agency thought to be in violation of the charter service agreement, and it establishes more detailed complaint, hearing and appeal procedures.

More information on the rules is available online.