97-16126. Charter Services Demonstration Program  

  • [Federal Register Volume 62, Number 120 (Monday, June 23, 1997)]
    [Proposed Rules]
    [Pages 33793-33798]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-16126]
    
    
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    DEPARTMENT OF TRANSPORTATION
    
    Federal Transit Administration
    
    49 CFR Part 604
    
    [Docket No. FTA-97-2624]
    RIN 2132-AA58
    
    
    Charter Services Demonstration Program
    
    AGENCY: Federal Transit Administration, DOT.
    
    ACTION: Notice of proposed rulemaking; request for comments and 
    recommendations.
    
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    SUMMARY: Section 3040 of the Intermodal Surface Transportation 
    Efficiency Act (ISTEA) directed the Federal Transit Administration 
    (FTA) to issue regulations establishing a demonstration program that 
    would permit transit operators to provide charter services for the 
    purpose of meeting the transit needs of the government, civic, 
    charitable, and other community activities which otherwise would not be 
    served in a cost effective and efficient manner. Section 3040 required 
    FTA to consult with a board representing public transit operators and 
    privately owned charter services. Section 3040 also required FTA to 
    submit a report to Congress evaluating the effectiveness of the charter 
    demonstration program and providing recommendations for improving the 
    current charter service regulations. Today's Notice of Proposed 
    Rulemaking (NPRM) presents results and conclusions drawn from the 
    charter demonstration program, and seeks comments and recommendations 
    regarding improvements to the charter service regulations.
    
    DATES: Comments must be received by August 22, 1997.
    
    ADDRESSES: Comments should be submitted to U.S. Department of 
    Transportation, Central Docket Office, PL-401, 400 Seventh Street, SW., 
    Washington, DC 20590.
    
    FOR FURTHER INFORMATION CONTACT: Rita Daguillard or Regina Martin, 
    Federal Transit Administration, 202/366-1936.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
    A. FTA's Charter Service Requirements
    
        On April 13, 1987, the Federal Transit Administration (FTA), then 
    the Urban Mass Transportation Administration (UMTA), revised its 
    charter service regulation, 49 CFR Part 604. The principle behind this 
    regulation is that federally funded equipment and facilities may not be 
    used to compete unfairly with private charter operators, in keeping 
    with 49 U.S.C. 5323(d) and 5302(a)(7) of the Federal transit laws. When 
    the regulation went into effect on May 13, 1987, it was subject to five 
    limited exceptions, set out in 49 CFR 604.9. Under these exceptions, a 
    recipient of Federal funds may provide charter services if: (1) There 
    are no willing and able private operators; (2) the private charter 
    operator does not have the capacity needed for a particular charter 
    trip; (3) the private charter operator is unable to provide equipment 
    accessible to the elderly and persons with disabilities; (4) in non-
    urbanized areas, the charter service that would be provided would 
    result in a hardship on users; or, (5) private charter operators are 
    not capable of providing service for special events.
        On December 22, 1987, the President signed the Department of 
    Transportation and Related Agencies Appropriations Act, 1988 (Pub. L. 
    100-202, 101 Stat. 1329; hereinafter the ``FY 1988 Act''). In the 
    Conference Report accompanying the FY 1988 Act, FTA was directed to 
    amend its charter service regulation to ``permit non-profit social 
    service agencies to seek bids for charter service from publicly funded 
    operators.'' (Conf. Rept., Committee Print accompanying Department of 
    Transportation and Related Agencies Act, 1988, 100th Cong., 1st Sess. 
    62). This report suggested that ``(t)hese non-profit agencies * * * be 
    limited to government entities subject to sections 501(c) 1, 3, 3 (sic) 
    and 19 of the Internal Revenue Code.'' The report recommended that 
    ``(i)n such cases, the public operator * * * be required to
    
    [[Page 33794]]
    
    identify to the chartering organizations any private operator that has 
    notified it of its willingness and ability to provide comparable 
    charter service.''
        Further to this congressional directive, FTA amended its charter 
    regulation on December 30, 1988, to provide three additional exceptions 
    to the general prohibition on the use of federally funded equipment and 
    facilities for charter service (53 FR 53348).
        The first exception allows the use of FTA-funded equipment and 
    facilities for direct charter service with non-profit social service 
    agencies that are governmental entities or organizations exempt from 
    taxation under Internal Revenue Code 501(c) (1), (3), (4) and (19), 
    provided that the agency is contracting for service for persons with 
    disabilities; is a recipient of funds under certain U.S. Department of 
    Health and Human Services (``USDHHS'') programs; or has been State-
    certified according to the procedure set forth in Sec. 604.9(b)(5)(iii) 
    of the Charter Service Regulation.
        The second exception provides an additional exemption for non-
    urbanized areas by allowing FTA-funded equipment and facilities 
    operated by recipients in such areas to be used incidentally in direct 
    charter service for social services agencies that are governmental 
    entities or organizations exempt under Internal Revenue Code 501(c) 
    (1), (3), (4) and (19), provided that the agency is contracting for 
    service for elderly persons.
        The third exception allows FTA-funded equipment and facilities to 
    be used on an incidental basis in any particular charter service for 
    which the FTA recipient and the local private operators have reached an 
    agreement as part of the willing and able determination allowing the 
    recipient to provide such service.
    
    B. Section 3040 of ISTEA
    
        On December 18, 1991, the President signed the Intermodal Surface 
    Transportation Efficiency Act of 1991 (ISTEA). Section 3040 of ISTEA 
    directed FTA to issue regulations implementing a charter services 
    demonstration program in not more than 4 states. Under this 
    demonstration program, transit operators would be permitted to provide 
    charter service for the purpose of meeting the transit needs of the 
    government, civic, charitable, and other community activities which 
    otherwise would not be served in a cost effective and efficient manner. 
    Section 3040 provided that in developing such regulations, FTA should 
    consult with a board equally represented by public transit operators 
    and privately owned charter services. FTA was directed to transmit to 
    Congress, not later than 3 years after the date of enactment of the 
    Federal transit laws, a report containing an evaluation of the 
    effectiveness of the demonstration program regulations established 
    under this section and to issue recommendations for improving the 
    current charter services regulation.
        The Conference Report accompanying ISTEA, (H.R. Rep. No. 404, 102nd 
    Cong., 1st Sess. 424 (1991)), explained that the demonstration program 
    had been mandated in response to concerns expressed by local transit 
    operators regarding the existing charter service regulation. The Report 
    stated that the implementing regulations should be designed to enable 
    public transit operators to provide charter services to government, 
    civic, charitable and other community organizations that serve a public 
    purpose and help address unmet transit needs. According to the Report, 
    it was intended that these regulations would grant public transit 
    operators additional flexibility that was not afforded under the 
    existing charter regulations, without creating undue competition for 
    privately owned charter operators. The Report indicated that the 
    results of the demonstration program should provide Congress and FTA 
    with data to determine the most effective method for providing charter 
    services to local communities, and whether the current regulations are 
    in need of modification. The Report recommended that FTA select the 
    state of Michigan as a participant in the program.
    
    II. The Charter Services Demonstration Program
    
        Pursuant to the congressional directive, FTA established a Federal 
    Advisory Committee (FAC), effective March 16, 1992, comprised of 
    individuals equally representing public and private operators, to 
    assist FTA in implementing regulations establishing the charter service 
    demonstration. After consulting with the FAC, FTA issued a notice of 
    proposed rulemaking (NPRM) in the Federal Register on October 28, 1992, 
    describing FTA's proposed charter demonstration program, including 
    provisions to allow public transit operators in the selected 
    demonstration sites additional flexibility in the development of a 
    local charter policy to meet local circumstances.
        A State Department of Transportation (DOT) or Metropolitan Planning 
    Organization (MPO) in each of the selected demonstration sites was 
    empowered to determine the charter services that the public operator 
    actually provided during the demonstration. The State DOT or MPO 
    appointed a local advisory panel, composed of four to six persons, 
    equally represented by public transit operators or local business 
    organizations and representatives of local private charter operators. 
    The DOT or MPO adopted the local charter policy that was recommended by 
    the local advisory board.
        The NPRM solicited proposals from interested public transit 
    agencies to participate in the demonstration. After consultation with 
    the FAC, FTA selected the following public transit operators in four 
    states encompassing large and medium sized cities, as well as rural 
    areas:
         Monterey-Salinas Transit (MST), Monterey, California.
         Central Oklahoma Transportation and Parking Authority 
    (COTPA), Oklahoma City, Oklahoma.
         Bi-State Development Agency (Bi-State), St. Louis, 
    Missouri.
         Michigan Department of Transportation (MDOT), with four 
    unnamed sites within the state.
         Yolo County Transit Authority (YCTA), Yolo, California.
        MDOT subsequently selected the four sites for participation in 
    demonstration in Michigan:
         Isabella County Transportation Commission (ICTC), Isabella 
    County.
         Capital Area Transit Authority (CATA), Lansing.
         Marquette County Area Transportation Authority (MarqTran), 
    Marquette.
         Muskegon Area Transit System (MATS), Muskegon.
        The final rule, issued July 9, 1993, incorporated the provisions of 
    the NPRM, identified the eight demonstration sites, and authorized the 
    demonstration period from August 9, 1993, through August 9, 1994.
        Few of the demonstration participants were able to implement the 
    demonstration locally by August 1993. The process of informing the 
    private operators, establishing and convening the local advisory 
    committee, and reaching a consensus on the local charter policy spanned 
    several months. As a result of the initial delays, FTA extended the 
    charter demonstration through October 31, 1994 to allow for a full year 
    of demonstration activity. However, many public operators continued to 
    express concern that the length of the demonstration did not provide 
    sufficient time to implement the local charter policy and accurately 
    evaluate the effects of the demonstration. In response to the concerns, 
    FTA extended the
    
    [[Page 33795]]
    
    demonstration through October 31, 1995.
        Most of the local demonstrations were implemented in the fall of 
    1993. However, Marquette County did not initiate its demonstration 
    until January 1995.
    
    III. Demonstration Methodology
    
    A. Structure of the Demonstration
    
        The ISTEA mandate for the charter demonstration required the 
    Secretary of Transportation to transmit to Congress a report containing 
    an evaluation of the effectiveness of the demonstration program 
    regulations and make recommendations to improve current charter service 
    regulations. The objective of the evaluation was to assess the 
    effectiveness of the demonstration program. The evaluation focused 
    specifically on:
         The impact on the public operators
         The impact on customers
         The impact on private operators
         The effectiveness of local decisionmaking process
        The evaluation addressed each of the eight demonstration sites 
    individually and presented a summary of all sites. The evaluation was 
    based on the charter information provided by the public operators for 
    the demonstration and pre-demonstration periods, the results of the 
    customer surveys, and discussions with the public and private 
    operators. Because private operator data was not received from at least 
    three private operators in any of the sites, except Yolo County, FTA 
    only presented an analysis of the private operator data for Yolo 
    County.
        FTA analyzed the public operators' charter service in terms of 
    quantity of service provided, the groups served, and the consistency of 
    the service with the local charter policy. FTA analyzed the impact on 
    the individual public operators' operations based on the quantity of 
    service provided, the charter revenue generated, the change in level of 
    service from the pre-demonstration, and comparison of charter service 
    to overall operations.
        Congress mandated the demonstration in response to public transit 
    agencies' concerns about the unmet needs of specific types of 
    organizations, including the government, civic, charitable, and 
    community groups. The evaluation assessed the extent to which the 
    public operators provided charter service to meet the needs of these 
    groups during the demonstration. FTA classified the charters performed 
    by the public operator into categories including private groups and 
    individuals, community, government, subcontracts to private operators, 
    convention, and university. FTA analyzed the impact on customers by the 
    changes in the level of service provided to each group.
        FTA analyzed the impact on private operators based on the total 
    charter revenue hours and revenue earned by the public operator, 
    changes in the level of service provided by the public operator, and 
    changes in private operator service, where reported, results of the 
    customer surveys, and comments provided by the private operators during 
    the demonstration.
        FTA assessed the effectiveness of the local decision-making process 
    based upon the development of the local advisory committee, development 
    of the local charter policy, communication among the committee members, 
    and proper reporting of charter activities.
    
    B. General Public Comments
    
        On September 12, 1996, FTA held a charter bus demonstration review 
    meeting to present the results of the charter demonstration. The 
    meeting was also intended as a forum in which the public could make 
    comments and suggestions regarding the draft final report of the 
    evaluation of the charter bus demonstration. Many of those attending 
    the meeting had been members of the FAC that assisted FTA in 
    establishing the demonstration. FTA also received some written comments 
    on the report. These comments and a transcript of the September 12, 
    1996, public meeting have been filed in the docket.
        Generally, the comments indicated that public operators felt that 
    public transit authorities should be allowed a great latitude in 
    chartering buses directly with anyone having the need for a chartered 
    bus within their service areas. In essence, the public operators 
    objected to the requirement of being precluded from providing charter 
    service if there is at least one local ``willing and able'' private 
    operator. They expressed the view that many private operators 
    determined ``willing and able'' under the current definition of the 
    charter regulation were actually unwilling and unable to provide needed 
    charter services in their communities.
        On the other hand, private operators felt that the demonstration 
    did not support the claims by the public operators of unmet 
    transportation needs. Therefore, they supported minor, if any, changes 
    to the current charter regulations. However, there was support among 
    the private operators to establish a massive outreach program by FTA to 
    better educate public operators on the current charter requirements. 
    They also advocated promoting cooperative efforts between both the 
    private and public operators in meeting local charter needs.
    
    IV. Results of the Charter Demonstration Program
    
        The data gathered as a result of the charter demonstration program 
    did not support the public operators' claims of unmet needs for the 
    groups for which the demonstration was primarily intended: government, 
    civic, charitable and other community activities. Although the public 
    operators in each area identified groups that would not be otherwise 
    served in a cost effective manner, including those for which the 
    demonstration was intended and those particular to each site, the 
    charter service provided during the demonstration did not serve a 
    significant number of these groups or significantly increase the level 
    of service to these groups.
        Based on these results, the demonstration did not indicate the need 
    for FTA to significantly alter its current service regulations. 
    However, the demonstration did indicate that there may be a need for 
    some minor changes to the charter service regulations in order to 
    improve the ability of public operators to utilize the existing 
    exceptions to the charter regulations in providing needed charter 
    service.
    
    V. FTA'S Current Charter Service Exceptions
    
        Pursuant to 49 CFR Part 604, recipients of Federal funds are 
    prohibited from providing charter service using federally funded 
    equipment or facilities except on an incidental basis if there is at 
    least one private charter operator willing and able to provide the 
    service. The charter regulations provide several exceptions under which 
    a recipient of FTA funds may operate charter service. While these 
    exceptions generally provide FTA recipients with sufficient flexibility 
    in meeting charter needs that cannot be met by private operators, the 
    results of the demonstration suggest that some minor modification is 
    necessary to meet certain needs not addressed by the current 
    exceptions.
        The following are the types of charter service that FTA recipients 
    may provide under the seven current exceptions to the charter service 
    regulations:
        1. Direct service to customers when there are no willing and able 
    private charter operators.
        A public operator may provide incidental charter service if it 
    determines on an annual basis that there are no private charter 
    operators willing and able to provide the service. The
    
    [[Page 33796]]
    
    public operator must conduct an annual public participation process. If 
    at least one willing and able private charter operator exists, the 
    public operator cannot provide charter service under this exception.
        2. Under contract to provide FTA-funded vehicles or service to a 
    private operator to satisfy a capacity need or a need for accessible 
    equipment.
        The public operator must enter into an agreement with the private 
    charter operator for the service--not directly with the charter 
    customer. The public operator may not have an exclusive arrangement 
    with only one private operator; the public operator must respond 
    equitably to requests from all private operators.
        3. In a non-urbanized area, direct service to customers when the 
    service provided by a willing and able operator(s) creates a hardship 
    on the customer due to minimum duration requirements or distance 
    between the charter origin and operator location.
        The public operator must petition the FTA Regional Administrator 
    for approval. The public operator must provide notice of its request 
    for an exception to all willing and able private operators.
        4. Direct service to customers for special events where private 
    operators are not capable of providing the service.
        A public operator may petition the FTA Regional Administrator to 
    provide charter service directly to customers for special events, at 
    least 90 days prior to the event. The petition must describe the event, 
    explain how it is special, and specify the amount of charter service 
    that the private operators cannot provide.
        5. Under contract to private, non-profit organization serving 
    persons with disabilities or with a government entity that is a 
    qualified social service agency receiving Federal funds, or receiving 
    welfare assistance funds.
        A public operator may provide charter service directly to a 
    government entity or private, non-profit organization if one of the 
    following conditions apply: a significant number of disabled persons 
    will be passengers on the trip; the organization is a qualified social 
    service agency; or the entity is eligible to receive directly or 
    indirectly from a state or local government body public welfare 
    assistance funds for purposes that may require transportation.
        6. In a non-urbanized area, under contract to a government entity 
    or a private, non-profit organization that certifies that more than 50 
    percent of the passengers will be elderly.
        7. Direct service to customers through formal agreements with all 
    private charter operators.
        A public operator may provide charter service directly to a 
    customer, if an agreement has been reached with all willing and able 
    private operators. The public operator must provide for an annual 
    participation process to identify all ``willing and able'' private 
    operators. The formal agreement must specify the type of charter 
    service allowed under the agreement.
    
    VI. FTA'S Recommended Action
    
        The results of the demonstration program indicate that while no 
    major overhaul of the charter regulations is required, some minor 
    changes may be needed to provide public operators with additional 
    flexibility in providing charter service to their communities. 
    Therefore, FTA proposes the following actions, and seeks comments from 
    interested parties.
    
    A. Amendment of the Definition of ``Willing and Able'' Private 
    Operators (49 CFR 604.5(p)) and FTA Review of the ``Willing and Able'' 
    Determination Process (49 CFR 604.13(e))
    
        Under 49 CFR 604.5, any private operator having one bus or one van 
    and licensed to provide charter service may be determined ``willing and 
    able'', thereby precluding an FTA recipient from providing charter 
    service for at least one full calendar year. As a result, some FTA 
    recipients have maintained that they are often unable to provide needed 
    charter service to their communities when ``willing and able'' private 
    operators do not have the desire or capability to provide certain 
    trips. In response to this perception that ``willing and able'' is too 
    broadly defined, FTA proposes to modify the definition to exclude 
    operators who may in actual fact be incapable of providing service 
    within a recipient's service area. FTA believes that as a general rule, 
    only private operators located within a reasonable distance of a 
    particular service area are likely to provide reliable and cost-
    effective service to users in that area. Therefore, FTA proposes to 
    amend 49 CFR 604.5 to define a ``willing and able'' operator as having 
    one bus or one van, possessing legal authority, including the necessary 
    safety certifications, licenses and other legal prerequisites, to 
    provide charter service, and located within a 125 mile radius of the 
    recipients service area. FTA believes that this geographic limitation 
    will narrow the definition of ``willing and able'' sufficiently to 
    include only those private operators who are able to provide service 
    within reasonable time limits and at a reasonable cost.
        An organization representing private operators suggested that an 
    FTA recipient could be permitted to look behind evidence that a private 
    charter operator is ``willing and able'' to provide the requested 
    service if it has valid reasons to believe that the operator is unable 
    to effectively serve local charter needs. In these instances, the FTA 
    recipient would be required to inform FTA of its basis for concluding 
    that a private operator responding to its annual notification is 
    unwilling or unable to provide the service specified. FTA could then 
    make a determination based on the recipient's submittal and on 
    information from the private operator in question. FTA believes that 
    this proposed change may allow recipients additional flexibility in 
    situations where a private operator technically meets the ``willing and 
    able'' criteria, but is unlikely, either due to chronic lack of vehicle 
    capacity or to an unwillingness to provide trips of a certain type or 
    duration, to meet all local charter needs. FTA thus proposes to amend 
    section 604.13(e) accordingly.
        FTA seeks comments on its proposed amendment of 49 CFR 604.5(p) and 
    49 CFR 604.13(e)).
    
    B. Extension of Non-urbanized Area Hardship Exception (49 CFR 
    604.9(b)(3))to Small Urbanized Areas (50,000 to 200,000 Population)
    
        Under 49 CFR 604.9(b)(3), an FTA recipient may petition FTA for an 
    exception to provide charter service directly to the customer in non-
    urbanized areas (population under 50,000) if the charter service 
    provided by the ``willing and able'' private charter operator(s) would 
    create a hardship on the customer due to state-imposed minimum duration 
    requirements. Some public sector participants in the demonstration 
    program suggested that this exception be extended to small urbanized 
    areas, many of which also lack readily available and reasonably priced 
    charter services. In response to these comments, FTA proposes to extend 
    the non-urbanized hardship exception at 49 CFR 604.9(b)(3) to small 
    urbanized areas having populations between 50,000 to 200,000. FTA 
    believes that this amendment may provide recipients in small urbanized 
    areas with additional flexibility in providing charter service to their 
    communities.
        FTA seeks comments on its proposed amendment of 49 CFR 604.9(b)(3).
    
    [[Page 33797]]
    
    C. Amendment of the Exception for Formal Agreements (49 CFR 604.9(b)(7) 
    With All Private Charter Operators
    
        Under 49 CFR 604.9(b)(7), if an FTA recipient obtains a formal 
    agreement with all ``willing and able'' private operators, it can 
    provide certain specified types of charter service directly to the 
    customer. Section 604.9(b)(7) requires an FTA recipient to complete the 
    ``willing and able'' determination process for all private operators 
    responding to its charter notice, and to obtain written agreements from 
    each of these operators. Some FTA recipients maintain that they are 
    unable to make use of this exception because of the impracticability of 
    obtaining agreements from all local private operators. They note that 
    it is often impossible to obtain unanimous consenus from a large number 
    of organizations having varying interests and divergent views. Thus, 
    they state, while this exception is effective in theory in allowing 
    recipients to meet certain charter needs, it is unworkable in actual 
    fact.
        One participant in the September 12, 1996 charter demonstration 
    review meeting suggested that instead of requiring unanimity, the 
    regulation should provide that only a \2/3\ majority of all local 
    private operators would be required for a formal charter agreement. FTA 
    believes that providing for a majority rather than a unanimous vote on 
    the formal agreement will facilitate the use of this exception by more 
    FTA recipients, thereby allowing them to provide a wider range of 
    needed services to their communities.
        FTA seeks comments on its proposed amendment of 49 CFR 604.9(b)(7).
    
    D. Implementation of an Outreach Program to Foster a Better 
    Understanding of the Charter Regulations and Exceptions
    
        The demonstration program revealed that many public and private 
    operators have an incomplete understanding of FTA's charter 
    requirements and how to use them effectively to serve the charter needs 
    in their communities. Therefore, FTA proposes to implement an outreach 
    program for public and private operators to provide them with a better 
    understanding of how to better utilize the charter regulations and 
    exceptions. The outreach program would include the distribution of 
    brochures and literature to public and private operators describing the 
    charter bus regulations and exceptions, and examples of how to best 
    utilize the exception process. FTA also proposes to sponsor seminars 
    and information sessions on the charter requirements at meetings and 
    conferences sponsored by various industry groups. FTA believes that the 
    establishment of an outreach program would not only minimize the 
    ongoing misunderstanding between some of the public and private 
    operators, but would also serve as a resource to other operators 
    entering the charter business.
        This proposed effort was supported by the majority of participants 
    in the September 12, 1996, meeting as a useful tool in improving the 
    understanding and utilization of the existing exceptions to the charter 
    regulations. FTA seeks additional suggestions for implementing its 
    education and outreach program.
    
    VII. Regulatory Impacts
    
    A. Regulatory Process Matters
    
        The proposed rule is considered to be a nonsignificant rulemaking 
    under DOT Regulatory Policies and Procedures, 44 FR 11034. It is also a 
    nonsignifant rule for the purposes of Executive Order 12866. The 
    Department certifies, under the Regulatory Flexibility Act, that the 
    NPRM, if adopted, would not have a significant economic effect on a 
    substantial number of small enities. The NPRM would not impose any 
    costs or burdens on regulated entities. The rule has also been analyzed 
    in accordance with the principles and criteria contained in Executive 
    Order 12612, and it has been determined that it does not have 
    sufficient federalism implications to warrant the preparation of a 
    Federalism Assessment.
    
    B. Paperwork Reduction Act
    
        This rule contains no information collection requirements under the 
    Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.
    
    C. Unfunded Mandates Reform Act of 1995
    
        The Department has determined that the requirements of Title II of 
    the Unfunded Mandates Reform Act of 1995 do not apply to this 
    rulemaking.
    
    List of Subjects in 49 CFR Part 604
    
        Administrative practice and procedure, Buses, Grant programs--
    transportation, Mass transportation, Reporting and recordkeeping 
    requirements.
    
    Proposed Amendment to 49 CFR Part 604
    
        Accordingly, for the foregoing reasons, Title 49, Code of Federal 
    Regulations, Part 604, Charter Service, is proposed to be amended as 
    follows:
    
    PART 604--CHARTER SERVICE
    
        1. The authority citation for part 604 continues to read as 
    follows:
    
        Authority: 49 U.S.C. 5323(d); 23 U.S.C. 103(e)(4); 142(a); and 
    142(c); and 49 CFR 1.51.
    
        2. Section 604.5 is proposed to be amended by revising paragraph 
    (p) to read as follows:
    
    
    Sec. 604.5  Definitions.
    
    * * * * *
        (p) Willing and able means having the desire, having the physical 
    capability of providing the categories of revenue vehicles requested, 
    including the necessary safety certifications, licenses, and other 
    legal prerequisites, to provide charter service, and located within a 
    125-mile radius of the area in which it is proposed to be provided.
        3. Section 604.9 is proposed to be amended by revising paragraphs 
    (b)(3) and (b)(7) to read as follows:
    
    
    Sec. 604.9  Charter service.
    
    * * * * *
        (b) * * *
        (3) A recipient in a non-urbanized or small urbanized area may 
    petition FTA for an exception to provide charter service directly to 
    the customer if the charter service provided by the willing and able 
    private charter operator or operators would create a hardship on the 
    customer because:
        (i) The willing and able private charter operator or operators 
    impose minimum duration's pursuant to State regulation and the desired 
    trip length is shorter than the mandatory trip length; or
        (ii) The willing and able private operator or operators are located 
    too far from the origin of the charter service.
    * * * * *
        (7) A recipient may provide charter service directly to the 
    customer where a formal agreement has been executed between the 
    recipient and a two-thirds (2/3) majority of all private charter 
    operators it has determined to be willing and able in accordance with 
    this part, provided that:
        (i) The agreement specifically allows the recipient to provide the 
    particular type of charter trip;
        (ii) The recipient has provided for such an agreement in its annual 
    charter notice published pursuant to this part before undertaking any 
    charter service pursuant to this exception;
        (iii) If a recipient has received several responses to its annual 
    charter notice but ceased its review process after determining that one 
    private operator was willing and able, it must, before concluding a 
    formal charter agreement
    
    [[Page 33798]]
    
    under this section, complete the review process to ensure that a two-
    thirds (\2/3\) majority of the willing and able private operators are 
    valid parties to the agreement.
    * * * * *
        4. Section 604.13 is proposed to be amended by revising paragraph 
    (e) to read as follows:
    
    
    Sec. 604.13  Reviewing evidence submitted by private charter operators.
    
    * * * * *
        (e) A recipient may look behind the evidence submitted by a private 
    charter operator only if the recipient has reasonable cause to believe:
        (1) That some or all of the evidence has been falsified; or
        (2) That the private operator may not be capable of providing 
    certain specified types of charter service.
        (i) A recipient believing that it has reasonable cause to determine 
    that a private operator or operators is/are not willing and able 
    pursuant to this paragraph (e)(2), may petition the FTA Regional 
    Administrator for a determination. The recipient must send a copy of 
    its petition to the private operator or operators in question. The 
    private operator or operators may submit evidence opposing the petition 
    to the FTA Regional Administrator within 30 days of receipt of a copy 
    of the recipient's petition.
        (ii) The FTA Regional Administrator will rule on the recipient's 
    petition within 60 days of receipt.
    * * * * *
        Issued on: June 16, 1997.
    Gordon J. Linton,
    Administrator.
    [FR Doc. 97-16126 Filed 6-20-97; 8:45 am]
    BILLING CODE 4910-57-U
    
    
    

Document Information

Published:
06/23/1997
Department:
Federal Transit Administration
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking; request for comments and recommendations.
Document Number:
97-16126
Dates:
Comments must be received by August 22, 1997.
Pages:
33793-33798 (6 pages)
Docket Numbers:
Docket No. FTA-97-2624
RINs:
2132-AA58: Charter Services Demonstration Program
RIN Links:
https://www.federalregister.gov/regulations/2132-AA58/charter-services-demonstration-program
PDF File:
97-16126.pdf
CFR: (3)
49 CFR 604.5
49 CFR 604.9
49 CFR 604.13