Statutory Protections for Private Enterprise

• 49 U.S.C. § 5307 (c)(2) – Public Participation Requirements.  Federal transit laws and regulations require recipients of federal financial assistance to consult with private transportation providers in developing and finalizing a program of projects. 

• 49 U.S.C. § 5323 (a)(1) – General Provisions on Assistance.  FTA funded mass transportation equipment or facilities may operate in competition with transportation service provided by an existing mass transportation company only if the Secretary of Transportation determines that the program provides for the participation of private mass transportation companies to the maximum extent feasible.

• 49 U.S.C. § 5323 (d) – Charter Bus Operations.  Federal transit law prohibits recipients of federal financial assistance from providing charter service, except under certain circumstances.  Any charter service that is provided by FTA recipients must be “incidental.”  This means that the charter service may not interfere with or detract from regularly scheduled mass transportation service or shorten the life of the equipment or facilities.  The charter rule is summarized in a separate brochure available from FTA.  For further information, the complete text of FTA’s Charter Service regulation can be accessed on line at http://www.access.gpo.gov/nara/cfr/waisidx_03/49cfr604_03.html.

• 49 U.S.C. § 5323 (f) – School Bus Operations.  Federal transit laws and regulations limit the use of public transportation to transport students to and from school and school-sponsored activities, or trips in competition with private transportation providers.  In general, recipients of FTA grants cannot provide transportation for students and school personnel if that transportation excludes the general public or competes with private school bus operators.  The school bus rule is summarized in a separate brochure available from FTA.  For further information, the complete text of FTA’s School Bus Operations regulations can be accessed on line at http://www.access.gpo.gov/nara/cfr/waisidx_03/49cfr605_03.html.