FTA proposes new charter rules
Proposal seeks to end years of fighting between motorcoach operators, transit agencies.
In a 55-page Notice of Proposed Rulemaking issued in February, the FTA has recommended a major overhaul of the regulations that prohibit public transit agencies from providing charter bus services.
The proposal signals the end of a long process to determine a new set of rules that will hopefully put an end to the frequent disputes between public transit agencies and private bus operators.
Much of the new provisions were developed in monthly meetings of the Charter Bus Negotiated Rulemaking Advisory Committee, which took place between May and December 2006. However, the committee was unable to come to an agreement on a few major factors, including what trips and services constitute charter services.
Picking up where that committee left off, the FTA and its attorneys drafted proposed regulations that will make the process more transparent; streamline the complaint, hearing and appeals process; and give the FTA the discretion to determine the best solution when the rules are violated.
“The process was long but fair,” said Clyde Hart, senior vice president for government affairs at the American Bus Association. “All of the issues were discussed by all members of the committee, and having all sides in the room promoted a lot of education about what the public and private sectors do. The FTA now has a great understanding of both sides of the issue, which really informed the proposed rule that they put out.”
Some of the highlights of the proposal include:
The definition of charter service. The FTA’s proposal says that three elements must be present to be considered charter service: the transportation of a group of persons pursuant to a single contract with a third party; a fixed charge; and an itinerary determined by someone other than the agency. Services that are not considered charter, include adding equipment or days to an existing route; extending service hours on an existing route; and demand-response service that is part of a coordinated public service by the agency.
FTA charter registration Website. The FTA will establish a Website that will require charter operations to complete a registration process if they want to be considered for charter work. The site will also serve as a clearinghouse for requests received by public transit agencies. For its part, if a public transit agency cannot provide the services under one of the exceptions, it must decline the opportunity and direct the client to the Website.
A more streamlined complaint process. Citing its inability to enforce cease-and-desist orders, the FTA’s proposal eliminates the provision and creates an easier process that establishes timelines throughout the entire process. The proposed rules also give the FTA the power to make an initial ruling or to refer the matter to a neutral decision maker when a complaint is filed.
To view the entire document, visit http://www.fta.dot.gov/regional_offices_federal_register.html, under the “Charter Service Notice of Proposed Rulemaking” heading.
More Management
Building Stronger Leaders, More Resilient Transit Teams
Dr. Carol Parker Walsh discusses leadership development, employee retention, workplace culture, and preparing transit’s workforce for AI and automation.
Read More →
APTA 2026 TRANSform & EXPO Kicks Off in Chicago
After 45 years, APTA returns to Chicago with a focus on next-generation fleets, AI, connected transit networks, and the funding strategies shaping public transportation’s future.
Read More →
New York MTA Warns Federal Tariffs Could Add $1 Billion to Rolling Stock Costs
The agency said tariffs on specialized imported components could reduce the purchasing power of its $23 billion investment in new subway cars, railcars, and buses.
Read More →
From the Show Floor: What’s Happening at APTA TRANSform & EXPO 2026
Follow the latest product launches, partnerships, technology updates, and transit industry announcements coming out of APTA TRANSform & EXPO in Chicago.
Read More →
How Valley Metro Is Balancing Transit Growth With the Rider Experience
The APTA award-winning agency is pairing rapid system expansion with investments in workforce, safety, technology, and the fundamentals of transit service.
Read More →
Bus Tech Talk: Keeping Transit Technicians Ahead of the Technology Curve
In this episode of Bus Tech Talk, Complete Coach Works’ Business Development Manager Mark Hollenbeck and METRO’s Executive Editor Alex Roman sit down with Obed Mejia, Senior Technical Trainer for Bus Maintenance, at LA Metro to discuss how rapidly evolving bus technology is changing the maintenance shop — and the skills technicians need to keep pace.
Read More →
Michael Schneider Joins Paslay Group to Expand Transportation Practice
The longtime transportation executive will help Paslay Group grow its advisory and program management work across transit, highway, and other infrastructure sectors.
Read More →
People Movement: Connectpoint Expands Leadership Team, Stadler Names New Group CEO, and More
In this edition, we also spotlight recent personnel moves at Burns, UZURV, and more, highlighting the people taking on new roles across the transportation industry.
Read More →
More Than a Summer Job: Building the Next Generation of Transit Talent
The Delaware River Port Authority and PATCO have transformed their internship program into a hands-on professional development experience that introduces students to the breadth of transportation careers — and creates a pipeline for future employees.
Read More →
LA Metro Board Awards 220 Battery-Electric Bus Contract to ENC
The contract, which is the largest base award of battery-electric buses by a U.S. transit agency, will be built in Southern California, sustaining good jobs as LA prepares to welcome the world in 2028
Read More →