[Federal Register Volume 90, Number 5 (Wednesday, January 8, 2025)]
[Proposed Rules]
[Pages 1406-1419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30970]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
49 CFR Part 604
[Docket No. FTA-2024-0017]
RIN 2132-AB38
Charter Service
AGENCY: Federal Transit Administration (FTA), Department of
Transportation (DOT).
ACTION: Notice of proposed rulemaking (NPRM).
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SUMMARY: The Federal Transit Administration (FTA) is proposing to amend
regulations that govern the provision of charter service by recipients
of Federal financial assistance. The proposed changes will remove the
Federal Financial Assistance Programs listed in an appendix and the
guidance in additional appendices and make non-substantive technical
edits throughout to remove outdated citations and provide clarity.
DATES: Comments should be filed by March 10, 2025. FTA will consider
comments received after that date to the extent practicable.
ADDRESSES: You may send comments, identified by docket number FTA-2024-
0017, by any of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov.
Follow the instructions for sending comments.
Fax: (202) 493-2251.
Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Avenue SE, West Building Ground Floor,
Room W12-140, Washington, DC 20590-0001.
Hand Delivery/Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and
5 p.m. ET, Monday through Friday, except Federal holidays.
Instructions: All submissions received must include the agency name
and docket number or Regulatory Information Number (RIN) for this
rulemaking. All comments received will be posted without change to
https://www.regulations.gov, including any personal information
provided. Docket: For access to the docket to read background documents
or comments received, go to https://www.regulations.gov. Background
documents and comments received may also be viewed at the U.S.
Department of Transportation, 1200 New Jersey Ave. SE, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, Washington,
DC 20590-0001, between 9 a.m. and 5 p.m. EST, Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: For program matters, Danielle Nelson,
Office of Program Management, (202) 366-2160 or
[email protected]. For legal matters, contact Mark Montgomery,
Office of Chief Counsel, (202) 366-1017 or [email protected].
Office hours are from 8:30 a.m. to 5 p.m., Monday through Friday,
except Federal holidays.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Executive Summary
A. Purpose and Summary of Regulatory Action
B. Statutory Authority
C. Summary of Major Provisions
D. Benefits and Costs
II. Section-by-Section Analysis
III. Regulatory Analyses and Notices
I. Executive Summary
A. Purpose and Summary of Regulatory Action
FTA is proposing to amend regulations which govern the provision of
charter service by recipients of Federal financial assistance. The
charter service regulation protects private charter operators from
unauthorized competition from FTA grant recipients. Under the charter
rules, with limited exceptions, local transit agencies are restricted
from operating chartered service. One of those exceptions applies to
charter service provided to a qualified human service organization
(QHSO) for the purpose of serving persons with mobility limitations
related to advanced age, disability, or low income. Under the current
rule, QHSOs receiving funding from one of the Federal programs under
appendix A are exempt from the charter registration requirements of the
regulation. This appendix, created in 2008, is outdated. Through this
rulemaking, FTA proposes to remove appendix A and keep the list of
qualifying Federal programs for the QHSO exception current on its
website, which will reduce the administrative
[[Page 1407]]
burden of charter registration for many QHSOs.
B. Statutory Authority
FTA has a statutory mandate to prohibit charter service under 49
U.S.C. 5323(d). The proposed revisions do not make substantive changes
to the existing regulations implementing this statutory provision.
C. Summary of Key Provisions
FTA proposes to remove the outdated list of Federal programs in
appendix A. Under the current regulation, QHSOs receiving funding from
one of the Federal programs under appendix A are exempt from the
charter registration requirements of Sec. 604.15. Appendix A is based
on a list of programs from the Coordinating Council on Access and
Mobility (CCAM), which is a Federal interagency council that works to
coordinate funding and provide expertise on human services
transportation for people with disabilities, older adults, and
individuals with low income. CCAM established the CCAM Program
Inventory, which identifies 130 Federal programs that provide funding
for human services transportation for these targeted populations. In
2018 and 2019, CCAM agency representatives determined which programs to
include in the CCAM Program Inventory through internal agency program
validation efforts and the CCAM Program Analysis Working Sessions. CCAM
continually updates this inventory to include new Federal funding
sources.
D. Benefits and Costs
The proposed rule would relocate supplemental information in the
appendices of the Charter Service regulation to the FTA website. The
rule would change no requirements for regulated entities and therefore
has no expected economic effect. FTA has also determined that the
proposed rule would not have a significant effect on a substantial
number of small entities.
II. Section-by-Section Analysis
Subpart A--General Provisions
Section 604.1 Purpose
FTA does not propose changes to this section.
Section 604.2 Applicability
FTA proposes to update the applicability section of the regulation
to remove programs repealed by statute. Specifically, FTA proposes to
remove references to the Over the Road Bus Accessibility Program, the
Job Access and Reverse Commute Program, and the New Freedom Grant
Program, which were repealed under the Moving Ahead for Progress in the
21st Century (MAP-21), Public Law 112-141, on October 1, 2012.
604.3 Definitions
FTA proposes to remove a reference to a provision repealed by
statute and amend a statutory citation. Throughout the regulation, FTA
proposes to utilize the term ``website'' rather than the outdated ``Web
site.'' Further, FTA proposes to revise the existing definitions of
``program purposes'' for clarity. FTA also proposes to revise the
existing definition of ``qualified human service organization'' to more
closely align with the definition of ``transportation-disadvantaged''
under Executive Order 13330, Human Service Transportation Coordination
(February 24, 2004), which is the Executive order that created CCAM.
These amendments do not impact existing requirements.
604.4 Charter Service Agreement
FTA does not propose changes to this section.
Subpart B--Exceptions
Section 604.5 Purpose
FTA proposes to remove the undefined term ``community-based'' from
this section for clarity. The term ``charter service'' is defined under
Sec. 604.3 and does not need that qualifier. This change would not
impact existing requirements.
Section 604.6 Government Officials on Official Government Business
FTA does not propose changes to this section.
Section 604.7 Qualified Human Service Organizations
FTA proposes to remove the outdated list of Federal programs in
appendix A and clarify in this section that QHSOs receiving funding
under one or more of the programs in the CCAM Program Inventory are not
required to register on the FTA charter service website to receive
charter service from a recipient.
Section 604.8 Leasing FTA Funded Equipment and Drivers
FTA does not propose changes to this section.
Section 604.9 When No Registered Charter Provider Responds to Notice
From a Recipient
FTA does not propose changes to this section.
Section 604.10 Agreement With Registered Charter Providers
FTA does not propose changes to this section.
Section 604.11 Petitions to the Administrator
FTA adds clarifying language to this section that does not impact
existing requirements.
Section 604.12 Reporting Requirements for All Exceptions
FTA removes an outdated reference that does not impact existing
requirements.
Subpart C--Procedures for Registration and Notification
Section 604.13 Registration of Private Charter Operators
FTA proposes to add clarifying language and remove an outdated web
address. These amendments do not impact existing requirements.
Section 604.14 Recipient's Notification to Registered Charter Providers
FTA proposes to remove an outdated web address. The amendment does
not impact existing requirements.
Subpart D--Registration of Qualified Human Service Organizations and
Duties for Recipients With Respect to Charter Registration Website
Section 604.15 Registration of Qualified Human Service Organizations
FTA proposes to add language that clarifies that only QHSOs that do
not receive funding from one of the programs in the CCAM Program
Inventory are required to register on the FTA charter service website.
This amendment maintains the existing eligibility for QHSOs to receive
charter service from an FTA recipient.
Section 604.16 Duties for Recipients With Respect to Charter
Registration Website
FTA does not propose changes to this section.
Subpart E--Advisory Opinions and Cease and Desist Orders
Section 604.17 Purpose
FTA does not propose changes to this section.
Section 604.18 Request for an Advisory Opinion
FTA does not propose changes to this section.
[[Page 1408]]
Section 604.19 Processing of Advisory Opinions
FTA proposes a grammatical change that does not impact existing
requirements.
Section 604.20 Effect of an Advisory Opinion
FTA does not propose changes to this section.
Section 604.21 Special Considerations for Advisory Opinions
FTA does not propose changes to this section.
Section 604.22 Request for a Cease and Desist Order
FTA proposes to amend a typographical error that does not impact
existing requirements.
Section 604.23 Decisions by the Chief Counsel Regarding Cease and
Desist Orders
FTA proposes to reorder existing Sec. Sec. 604.23 and 604.24 for
clarity.
Section 604.24 Effect of a Cease and Desist Order
FTA proposes to remove paragraph (b) of existing Sec. 604.23 as
duplicative with paragraph (b) of existing Sec. 604.24.
Subpart F--Complaints
Section 604.25 Purpose
FTA does not propose changes to this section.
Section 604.26 Complaints and Decisions Regarding Removal of Private
Charter Operators or Qualified Human Service Organizations From
Registration List
FTA does not propose changes to this section.
Section 604.27 Complaints, Answers, Replies, and Other Documents
FTA proposes to combine paragraphs (f) and (h) of this section for
clarity. The amendment does not impact existing requirements.
Section 604.28 Dismissals
FTA does not propose changes to this section.
Section 604.29 Incomplete Complaints
FTA does not propose changes to this section.
Section 604.30 Filing Complaints
FTA does not propose changes to this section.
Section 604.31 Service
FTA does not propose changes to this section.
Subpart G--Investigations
FTA does not propose changes to this subpart.
Subpart H--Decisions by FTA and Appointment of a Presiding Official
(PO)
Section 604.34 Chief Counsel Decisions and Appointment of a PO
FTA proposes to make a clarifying edit that does not impact
existing requirements.
Section 604.35 Separation of Functions
FTA does not propose changes to this section.
Subpart I--Hearings
FTA does not propose changes to this subpart.
Subpart J--Appeal to Administrator and Final Agency Orders
Section 604.48 Appeal From Chief Counsel Decision
FTA does not propose changes to this section.
Section 604.49 Administrator's Discretionary Review of the Chief
Counsel's Decision
FTA proposes non-substantive edits to this section. The amendments
do not impact existing requirements.
Subpart K--Judicial Review
FTA does not propose changes to this subpart.
Appendix A--Listing of Human Service Financial Assistance Programs
FTA proposes to remove this appendix.
Appendix B--Reasons for Removal
FTA proposes to remove this appendix.
Appendix C--Frequently Asked Questions
FTA proposes to remove this appendix.
Appendix D--Table of Potential Remedies
FTA proposes to remove this appendix.
III. Regulatory Analyses and Notices
Executive Order 12866 (Regulatory Planning and Review) and Executive
Order 13563 (Improving Regulation and Regulatory Review)
Executive Order 12866 (``Regulatory Planning and Review''), as
supplemented by Executive Order 13563 (``Improving Regulation and
Regulatory Review'') and Executive Order 14094 (``Modernizing
Regulatory Review''), directs Federal agencies to assess the benefits
and costs of regulations, to select regulatory approaches that maximize
net benefits when possible, and to consider economic, environmental,
and distributional effects. It also directs the Office of Management
and Budget (OMB) to review significant regulatory actions, including
regulations with annual economic effects of $200 million or more. OMB
has determined the proposed rule is not significant within the meaning
of Executive Order 12866 and has not reviewed the rule under that
order.
The proposed rule would make non-substantive conforming edits and
remove supplemental information in the appendices to the Charter
Service regulation listing Federal financial assistance programs and
frequently asked questions. The proposed rule would change no
requirements for regulated entities and therefore has no expected
economic effect.
Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601 et seq.)
requires Federal agencies to assess the impact of a regulation on small
entities unless the agency determines that the regulation is not
expected to have a significant economic impact on a substantial number
of small entities.
The proposed rule would make non-substantive conforming edits to
the regulation and remove supplemental information from the appendices
but would not change requirements for regulated entities. FTA has
therefore determined that the proposed rule would not have a
significant effect on a substantial number of small entities.
Unfunded Mandates Reform Act of 1995
FTA has determined that this proposed rule does not impose unfunded
mandates, as defined by the Unfunded Mandates Reform Act of 1995 (Pub.
L. 104-4, March 22, 1995). This proposed rule does not include a
Federal mandate that may result in the expenditure by State, local, and
Tribal governments, in the aggregate, or by the private sector of $100
million or more in 1995 dollars (adjusted for inflation) in any one
year. Additionally, the definition of ``Federal mandate'' in the
Unfunded Mandates Reform Act excludes financial assistance of the type
in which State, local, or Tribal governments have authority to adjust
their participation in the program in accordance with changes made in
the program by the Federal Government.
[[Page 1409]]
The Federal Transit Act permits this type of flexibility.
Executive Order 13132 (Federalism Assessment)
Executive Order 13132 requires agencies to assure meaningful and
timely input by State and local officials in the development of
regulatory policies that may have a substantial direct effect on the
States, on the relationship between the National Government and the
States, or on the distribution of power and responsibilities among the
various levels of government. This action has been analyzed in
accordance with the principles and criteria contained in Executive
Order 13132, dated August 4, 1999, and FTA determined this action will
not have a substantial direct effect or sufficient federalism
implications on the States. FTA also determined this action will not
preempt any State law or regulation or affect the States' ability to
discharge traditional State governmental functions.
Executive Order 12372 (Intergovernmental Review)
The regulations implementing Executive Order 12372 regarding
intergovernmental consultation on Federal programs and activities apply
to this rulemaking.
Paperwork Reduction Act
In compliance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.), and OMB implementing regulation at 5 CFR 1320.8(d), FTA
is seeking approval from OMB for a currently approved information
collection, OMB control number 2132-0543, that is associated with the
existing regulation. FTA believes there will be no change in burden
hours per submission resulting from this rulemaking.
National Environmental Policy Act
Federal agencies are required to adopt implementing procedures for
the National Environmental Policy Act (NEPA) that establish specific
criteria for, and identification of, three classes of actions: (1)
Those that normally require preparation of an Environmental Impact
Statement, (2) those that normally require preparation of an
Environmental Assessment, and (3) those that are categorically excluded
from further NEPA review (40 CFR 1507.3(b)). This rule qualifies for
categorical exclusions under 23 CFR 771.118(c)(4) (planning and
administrative activities that do not involve or lead directly to
construction). FTA has evaluated whether the proposed rule will involve
unusual or extraordinary circumstances and has determined that it will
not.
Executive Order 12630 (Taking of Private Property)
FTA has analyzed this proposed rule under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights. FTA does not believe this proposed rule affects a
taking of private property or otherwise has taking implications under
Executive Order 12630.
Executive Order 12988 (Civil Justice Reform)
This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.
Executive Order 13045 (Protection of Children)
FTA has analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. FTA certifies that this action will not cause an environmental
risk to health or safety that might disproportionately affect children.
Executive Order 13175 (Tribal Consultation)
FTA has analyzed this proposed rule under Executive Order 13175,
dated November 6, 2000, and believes that it will not have substantial
direct effects on one or more Indian Tribes; will not impose
substantial direct compliance costs on Indian Tribal governments; and
will not preempt tribal laws. Therefore, a Tribal summary impact
statement is not required.
Executive Order 13211 (Energy Effects)
FTA has analyzed this action under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. FTA has determined that this action is not a
significant energy action under that order and is not likely to have a
significant adverse effect on the supply, distribution, or use of
energy. Therefore, a Statement of Energy Effects is not required.
Executive Order 12898 (Environmental Justice)
Executive Order 12898 (Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations) and DOT
Order 5610.2(a) (77 FR 27534, May 10, 2012) \1\ require DOT agencies to
achieve environmental justice (EJ) as part of their mission by
identifying and addressing, as appropriate, disproportionately high and
adverse human health or environmental effects, including interrelated
social and economic effects, of their programs, policies, and
activities on minority and low-income populations. All DOT agencies
must address compliance with Executive Order 12898 and the DOT Order in
all rulemaking activities. On August 15, 2012, FTA's Circular 4703.1
became effective, which contains guidance for recipients of FTA
financial assistance to incorporate EJ principles into plans, projects,
and activities.\2\
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\1\ Department of Transportation Updated Environmental Justice
Order 5610.2(a): Actions to Address Environmental Justice in
Minority Populations and Low-Income Populations, 77 FR 27534 (May
10, 2012). https://www.transportation.gov/transportation-policy/environmental-justice/department-transportation-order-56102a.
\2\ Federal Transit Administration (February 2020).
``Environmental Justice Policy Guidance for Federal Transit
Administration Recipients.'' https://www.transit.dot.gov/regulations-and-guidance/fta-circulars/environmental-justice-policy-guidance-federal-transit.
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FTA has evaluated this action under the Executive order, the DOT
Order, and the FTA Circular and has determined that this action will
not cause disproportionately high and adverse human health and
environmental effects on minority or low-income populations.
Regulation Identifier Number
A Regulation Identifier Number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda in
April and October of each year. The RIN contained in the heading of
this document can be used to cross-reference this proposed rule with
the Unified Agenda.
List of Subjects in 49 CFR Part 604
Administrative practice and procedure, Buses, Grant programs--
transportation, Mass transportation, Reporting and recordkeeping
requirements.
Veronica Vanterpool,
Acting Administrator.
In consideration of the foregoing, and under the authority of 49
U.S.C. 5323(d), and the delegation of authority at 49 CFR 1.91, the
Federal Transit Administration proposes to revise and republish 49 CFR
part 604 to read as follows:
[[Page 1410]]
PART 604--CHARTER SERVICE
Subpart A--General Provisions
Sec.
604.1 Purpose.
604.2 Applicability.
604.3 Definitions.
604.4 Charter service agreement.
Subpart B--Exceptions
604.5 Purpose.
604.6 Government officials on official government business.
604.7 Qualified human service organizations.
604.8 Leasing FTA funded equipment and drivers.
604.9 When no registered charter provider responds to notice from a
recipient.
604.10 Agreement with registered charter providers.
604.11 Petitions to the Administrator.
604.12 Reporting requirements for all exceptions.
Subpart C--Procedures for Registration and Notification
604.13 Registration of private charter operators.
604.14 Recipient's notification to registered charter providers.
Subpart D--Registration of Qualified Human Service Organizations and
Duties for Recipients With Respect to Charter Registration Website
604.15 Registration of qualified human service organizations.
604.16 Duties for recipients with respect to charter registration
website.
Subpart E--Advisory Opinions and Cease and Desist Orders
604.17 Purpose.
604.18 Request for an advisory opinion.
604.19 Processing of advisory opinions.
604.20 Effect of an advisory opinion.
604.21 Special considerations for advisory opinions.
604.22 Request for a cease and desist order.
604.23 Decisions by the Chief Counsel regarding cease and desist
orders.
604.24 Effect of a cease and desist order.
Subpart F--Complaints
604.25 Purpose.
604.26 Complaints and decisions regarding removal of private charter
operators or qualified human service organizations from registration
list.
604.27 Complaints, answers, replies, and other documents.
604.28 Dismissals.
604.29 Incomplete complaints.
604.30 Filing complaints.
604.31 Service.
Subpart G--Investigations
604.32 Investigation of complaint.
604.33 Agency initiation of investigation.
Subpart H--Decisions by FTA and Appointment of a Presiding Official
(PO)
604.34 Chief Counsel decisions and appointment of a PO.
604.35 Separation of functions.
Subpart I--Hearings
604.36 Powers of a PO.
604.37 Appearances, parties, and rights of parties.
604.38 Discovery.
604.39 Depositions.
604.40 Public disclosure of evidence.
604.41 Standard of proof.
604.42 Burden of proof.
604.43 Offer of proof.
604.44 Record.
604.45 Waiver of procedures.
604.46 Recommended decision by a PO.
604.47 Remedies.
Subpart J--Appeal to Administrator and Final Agency Orders
604.48 Appeal from Chief Counsel decision.
604.49 Administrator's discretionary review of the Chief Counsel's
decision.
Subpart K--Judicial Review
604.50 Judicial review of a final decision and order.
Authority: 49 U.S.C. 5323(d); 49 CFR 1.51.
Subpart A--General Provisions
Sec. 604.1 Purpose.
(a) The purpose of this part is to implement 49 U.S.C. 5323(d),
which protects private charter operators from unauthorized competition
from recipients of Federal financial assistance under the Federal
Transit Laws.
(b) This subpart specifies which entities shall comply with the
regulations in this part; defines terms used in this part; explains
procedures for an exemption from this part; and sets out the contents
of a charter service agreement.
Sec. 604.2 Applicability.
(a) The requirements of this part shall apply to recipients of
Federal financial assistance under the Federal Transit Laws, except as
otherwise provided in paragraphs (b) through (g) of this section.
(b) The requirements of this part shall not apply to a recipient
transporting its employees, other transit system employees, transit
management officials, transit contractors and bidders, government
officials and their contractors and official guests, to or from transit
facilities or projects within its geographic service area or proposed
geographic service area for the purpose of conducting oversight
functions such as inspection, evaluation, or review.
(c) The requirements of this part shall not apply to the non-FTA
funded activities of private charter operators that receive, directly
or indirectly, FTA financial assistance under any of the following
programs: 49 U.S.C. 5307, 49 U.S.C. 5309, 49 U.S.C. 5310, or 49 U.S.C.
5311.
(d) The requirements of this part shall not apply to a recipient
transporting its employees, other transit system employees, transit
management officials, transit contractors and bidders, government
officials and their contractors and official guests, for emergency
preparedness planning and operations.
(e) The requirements of this part shall not apply to a recipient
that uses Federal financial assistance from FTA, for program purposes
only, under 49 U.S.C. 5310 or 49 U.S.C. 5311.
(f) The requirements of this part shall not apply to a recipient,
for actions directly responding to an emergency declared by the
President, governor, or mayor or in an emergency requiring immediate
action prior to a formal declaration. If the emergency lasts more than
45 days, the recipient shall follow the procedures set out in part 601,
subpart D, of this chapter.
(g) The requirements of this part shall not apply to a recipient in
a non-urbanized area transporting its employees, other transit system
employees, transit management officials, and transit contractors and
bidders to or from transit training outside its geographic service
area.
Sec. 604.3 Definitions.
All terms defined in 49 U.S.C. 5301 et seq. are used in their
statutory meaning in this part. Other terms used in this part are
defined as follows:
Administrator means the Administrator of the Federal Transit
Administration or his or her designee.
Charter service means, but does not include demand response service
to individuals:
(1) Transportation provided by a recipient at the request of a
third party for the exclusive use of a bus or van for a negotiated
price. The following features may be characteristic of charter service:
(i) A third party pays the transit provider a negotiated price for
the group;
(ii) Any fares charged to individual members of the group are
collected by a third party;
(iii) The service is not part of the transit provider's regularly
scheduled service, or is offered for a limited period of time; or
(iv) A third party determines the origin and destination of the
trip as well as scheduling; or
(2) Transportation provided by a recipient to the public for events
or functions that occur on an irregular basis or for a limited duration
and:
(i) A premium fare is charged that is greater than the usual or
customary fixed route fare; or
(ii) The service is paid for in whole or in part by a third party.
[[Page 1411]]
Charter service hours means total hours operated by buses or vans
while in charter service including:
(1) Hours operated while carrying passengers for hire; plus
(2) Associated deadhead hours.
Chief Counsel means the Chief Counsel of FTA and his or her
designated employees.
Days means calendar days. The last day of a time period is included
in the computation of time unless the last day is a Saturday, Sunday,
or legal holiday, in which case, the time period runs until the end of
the next day that is not a Saturday, Sunday, or legal holiday.
Demand response means any non-fixed route system of transporting
individuals that requires advanced scheduling by the customer,
including services provided by public entities, nonprofits, and private
providers.
Exclusive means service that a reasonable person would conclude is
intended to exclude members of the public.
Federal Transit Laws means 49 U.S.C. 5301 et seq. and includes 23
U.S.C. 142(a) and 142(c), when used to provide assistance to public
transit agencies for purchasing buses and vans.
FTA means the Federal Transit Administration.
Geographic service area means the entire area in which a recipient
is authorized to provide public transportation service under
appropriate local, State, and Federal law.
Government official means an individual elected or appointed at the
local, State, or Federal level.
Interested party means an individual, partnership, corporation,
association, or other organization that has a financial interest that
is affected by the actions of a recipient providing charter service
under the Federal Transit Laws. This term includes States, counties,
cities, and their subdivisions, and Tribal Nations.
Pattern of violations means more than one finding of unauthorized
charter service under this part by FTA beginning with the most recent
finding of unauthorized charter service and looking back over a period
not to exceed 72 months.
Presiding Official means an official or agency representative who
conducts a hearing at the request of the Chief Counsel and who has had
no previous contact with the parties concerning the issue in the
proceeding.
Program purposes means transportation that serves the needs of
either qualified human service organizations or targeted populations
(elderly, individuals with disabilities, and or low-income
individuals); this does not include exclusive service for other groups
formed for purposes unrelated to the special needs of the targeted
populations identified in this definition.
Public transportation has the meaning set forth in 49 U.S.C.
5302(15).
Qualified human service organization means an organization that
serves persons who qualify for federally conducted or federally
assisted transportation-related programs or services due to disability,
income, or advanced age. This term is consistent with the President's
Executive order (E.O.) on Human Service Transportation Coordination
(E.O. 13330).
Recipient means an agency or entity that receives Federal financial
assistance, either directly or indirectly, including subrecipients,
under the Federal Transit Laws. This term does not include third-party
contractors who use non-FTA funded vehicles.
Registered charter provider means a private charter operator that
wants to receive notice of charter service requests directed to
recipients and has registered on FTA's charter registration website.
Registration list means the current list of registered charter
providers and qualified human service organizations maintained on FTA's
charter registration website.
Special transportation means demand response or paratransit service
that is regular and continuous and is a type of ``public
transportation.''
Violation means a finding by FTA of a failure to comply with one of
the requirements of this part.
Sec. 604.4 Charter service agreement.
(a) A recipient seeking Federal assistance under the Federal
Transit Laws to acquire or operate any public transportation equipment
or facilities shall enter into a ``Charter Service Agreement'' as set
out in paragraph (b) of this section.
(b) A recipient shall enter into a Charter Service Agreement if it
receives Federal funds for equipment or facilities under the Federal
Transit Laws. The terms of the Charter Service Agreement are as
follows: ``The recipient agrees that it, and each of its sub-
recipients, and third party contractors at any level who use FTA-funded
vehicles, may provide charter service using equipment or facilities
acquired with Federal assistance authorized under the Federal Transit
Laws only in compliance with the regulations set out in 49 CFR part
604, the terms and conditions of which are adopted herein by
reference.''
(c) The Charter Service Agreement is contained in the
Certifications and Assurances published annually by FTA for applicants
for Federal financial assistance. Once a recipient receives Federal
funds, the Certifications and Assurances become part of its Grant
Agreement or Cooperative Agreement for Federal financial assistance.
Subpart B--Exceptions
Sec. 604.5 Purpose.
The purpose of this subpart is to identify the limited exceptions
under which recipients may provide charter services.
Sec. 604.6 Government officials on official government business.
(a) A recipient may provide charter service to government officials
(Federal, State, and local) for official government business, which can
include non-transit related purposes, if the recipient:
(1) Provides the service in its geographic service area;
(2) Does not generate revenue from the charter service, except as
required by law; and
(3) After providing such service, records the following:
(i) The government organization's name, address, phone number, and
email address;
(ii) The date and time of service;
(iii) The number of passengers (specifically noting the number of
government officials on the trip);
(iv) The origin, destination, and trip length (miles and hours);
(v) The fee collected, if any; and
(vi) The vehicle number for the vehicle used to provide the
service.
(b) A recipient that provides charter service under this section
shall be limited annually to 80 charter service hours for providing
trips to government officials for official government business.
(c) A recipient may petition the Administrator for additional
charter service hours only if the petition contains the following
information:
(1) Date and description of the official government event and the
number of charter service hours requested;
(2) Explanation of why registered charter providers in the
geographic service area cannot perform the service (e.g., equipment,
time constraints, or other extenuating circumstances); and
(3) Evidence that the recipient has sent the request for additional
hours to registered charter providers in its geographic service area.
(d) FTA shall post the request for additional charter service hours
under this section in the Government Officials Exception docket, docket
number FTA-2007-0020 at https://www.regulations.gov. Interested parties
[[Page 1412]]
may review the contents of this docket and bring questions or concerns
to the attention of the Ombudsman for Charter Services. The written
decision of the Administrator regarding the request for additional
charter service hours shall be posted in the Government Officials
Exception docket and sent to the recipient.
Sec. 604.7 Qualified human service organizations.
(a) A recipient may provide charter service to a qualified human
service organization (QHSO) for the purpose of serving persons:
(1) With mobility limitations related to advanced age;
(2) With disabilities; or
(3) With low income.
(b) If an organization serving persons described in paragraph (a)
of this section receives funding, directly or indirectly, from any of
the human services Federal financial assistance programs listed in the
Program Inventory of the Coordinated Council on Access and Mobility
(CCAM) located on FTA's charter service website, the QHSO shall not be
required to register on the FTA charter registration website.
(c) If a QHSO serving persons described in paragraph (a) of this
section does not receive funding from any of the programs listed in the
CCAM Program Inventory, the QHSO shall register on the FTA charter
registration website in accordance with Sec. 604.15.
(d) A recipient providing charter service under this section,
whether or not the QHSO receives funding from any of the programs
listed in the CCAM Program Inventory, and after providing such charter
service, shall record:
(1) The QHSO's name, address, phone number, and email address;
(2) The date and time of service;
(3) The number of passengers;
(4) The origin, destination, and trip length (miles and hours);
(5) The fee collected, if any; and
(6) The vehicle number for the vehicle used to provide the service.
Sec. 604.8 Leasing FTA funded equipment and drivers.
(a) A recipient may lease its FTA-funded equipment and drivers to
registered charter providers for charter service only if the following
conditions exist:
(1) The private charter operator is registered on the FTA charter
registration website;
(2) The registered charter provider owns and operates buses or vans
in a charter service business;
(3) The registered charter provider received a request for charter
service that exceeds its available capacity either of the number of
vehicles operated by the registered charter provider or the number of
accessible vehicles operated by the registered charter provider; and
(4) The registered charter provider has exhausted all of the
available vehicles of all registered charter providers in the
recipient's geographic service area.
(b) A recipient leasing vehicles and drivers to a registered
charter provider under this section shall record:
(1) The registered charter provider's name, address, telephone
number, and email address;
(2) The number of vehicles leased, types of vehicles leased, and
vehicle identification numbers; and
(3) The documentation presented by the registered charter provider
in support of paragraphs (a)(1) through (4) of this section.
(c) In accordance with Sec. 604.26, if a registered charter
provider seeking to lease vehicles has filed a complaint requesting
that another registered charter provider be removed from the FTA
charter registration website, then the registered charter provider
seeking to lease vehicles is not required to exhaust the vehicles from
that registered charter provider while the complaint is pending before
leasing vehicles from a recipient.
Sec. 604.9 When no registered charter provider responds to notice
from a recipient.
(a) A recipient may provide charter service, on its own initiative
or at the request of a third party, if no registered charter provider
responds to the notice issued in Sec. 604.14:
(1) Within 72 hours for charter service requested to be provided in
less than 30 days; or
(2) Within 14 calendar days for charter service requested to be
provided in 30 days or more.
(b) A recipient shall not provide charter service under this
section if a registered charter provider indicates an interest in
providing the charter service set out in the notice issued pursuant to
Sec. 604.14 and the registered charter provider has informed the
recipient of its interest in providing the service.
(c) After providing the service, a recipient shall record:
(1) The group's name, address, phone number, and email address;
(2) The date and time of service;
(3) The number of passengers;
(4) The origin, destination, and trip length (miles and hours);
(5) The fee collected, if any; and
(6) The vehicle number for the vehicle used to provide the service.
Sec. 604.10 Agreement with registered charter providers.
(a) A recipient may provide charter service directly to a customer
consistent with an agreement entered into with all registered charter
providers in the recipient's geographic service area.
(b) If a new charter provider registers in the geographic service
area subsequent to the initial agreement, the recipient may continue to
provide charter service under the previous agreement with the other
charter providers up to 90 days without an agreement with the newly
registered charter provider.
(c) Any of the parties to an agreement may cancel the agreement at
any time after providing the recipient a 90-day notice.
Sec. 604.11 Petitions to the Administrator.
(a) A recipient may petition the Administrator for an exception to
the regulations in this part to provide charter service directly to a
customer for:
(1) Events of regional or national significance;
(2) Hardship (only for non-urbanized areas under 50,000 in
population or small urbanized areas under 200,000 in population); or
(3) Unique and time sensitive events (e.g., funerals of local,
regional, or national significance) that are in the public's interest.
(b) The petition to the Administrator shall include the following
information:
(1)(i) The date and description of the event;
(ii) The type of service requested and the type of equipment;
(iii) The anticipated number of charter service hours needed for
the event; and
(iv) The anticipated number of vehicles and duration of the event;
and
(2) For an event of regional or national significance, the petition
shall include a description of how registered charter providers were
consulted, how registered charter providers will be utilized in
providing the charter service, a certification that the recipient has
exhausted all of the registered charter providers in its geographic
service area, and submit the petition at least 90 days before the first
day of the event described in paragraph (b)(1)(i) of this section;
(3) For a hardship request, a petition is only available if the
registered charter provider that has indicated an interest in providing
the charter service set out in the notice issued pursuant to Sec.
604.14 has a deadhead time that exceeds total trip time from initial
pickup to final drop-off, including wait time. The petition shall
describe how the
[[Page 1413]]
registered charter provider's minimum duration would create a hardship
on the group requesting the charter service; or
(4) For unique and time sensitive events, the petition shall
describe why the event is unique or time sensitive and how providing
the charter service would be in the public's interest.
(c) Upon receipt of a petition that meets the requirements set
forth in paragraph (b) of this section, the Administrator shall review
the materials and issue a written decision denying or granting the
request in whole or in part. In making this decision, the Administrator
may seek such additional information as the Administrator deems
necessary. The Administrator's decision shall be filed in the Petitions
to the Administrator docket, number FTA-2007-0022 at https://www.regulations.gov and sent to the recipient.
(d) Any exception granted by the Administrator under this section
shall be effective only for the event identified in paragraph (b)(1)(i)
of this section.
(e) A recipient shall send its petition to the Administrator by
email to [email protected].
(f) A recipient shall retain a copy of the Administrator's approval
for a period of at least three years and shall include it in the
recipient's quarterly report posted on the charter registration
website.
Sec. 604.12 Reporting requirements for all exceptions.
(a) A recipient that provides charter service in accordance with
one or more of the exceptions contained in this subpart shall maintain
the required notice and records in an electronic format for a period of
at least three years from the date of the service or lease. A recipient
may maintain the required records in other formats in addition to the
electronic format.
(b) In addition to the requirements identified in paragraph (a) of
this section, the records required under this subpart shall include a
clear statement identifying which exception the recipient relied upon
when it provided the charter service.
(c) A recipient providing charter service under the exceptions in
this subpart shall post the records required under this subpart on the
FTA charter registration website 30 days after the end of each calendar
quarter (i.e., January 30th, April 30th, July 30th, and October 30th).
A single document or charter log may include all charter service trips
provided during the quarter.
(d) A recipient may exclude specific origin and destination
information for safety and security reasons. If a recipient excludes
such information, the record of the service shall describe the reason
why such information was excluded and provide generalized information
instead of providing specific origin and destination information.
Subpart C--Procedures for Registration and Notification
Sec. 604.13 Registration of private charter operators.
(a) To be considered a registered charter provider, private charter
operators shall register on FTA's charter registration website by
providing the following information:
(1) Company name, address, phone number, email address, and
facsimile number;
(2) Federal and, if available, State motor carrier identifying
number;
(3) The geographic service areas of public transit agencies, as
identified by the transit agency's zip code, in which the private
charter operator intends to provide charter service;
(4) The number of buses or vans the private charter operator owns;
(5) A certification that the private charter operator has valid
insurance; and
(6) Whether the private charter operator is willing to provide free
or reduced rate charter services to registered qualified human service
organizations.
(b) A private charter operator that provides valid information in
this subpart is a ``registered charter provider'' for purposes of this
part and shall have standing to file a complaint consistent with
subpart F of this part.
(c) A recipient, a registered charter provider, or their duly
authorized representative may challenge a registered charter provider's
registration and request removal of the private charter operator from
FTA's charter registration website by filing a complaint consistent
with subpart F of this part.
(d) FTA may refuse to post a private charter operator's information
if the private charter operator fails to provide all of the required
information required by paragraph (a) of this section.
(e) A registered charter provider shall provide current and
accurate information on FTA's charter registration website and shall
update that information no less frequently than every two years.
Sec. 604.14 Recipient's notification to registered charter
providers.
(a) Upon receiving a request for charter service, a recipient may:
(1) Decline to provide the service, with or without referring the
requestor to FTA's charter registration website;
(2) Provide the service under an exception provided in subpart B of
this part; or
(3) Provide notice to registered charter providers as provided in
this section and provide the service pursuant to Sec. 604.9.
(b) If a recipient is interested in providing charter service under
the exception contained in Sec. 604.9, then upon receipt of a request
for charter service, the recipient shall provide email notice to
registered charter providers in the recipient's geographic service area
in the following manner:
(1) E-mail notice of the request shall be sent by the close of
business on the day the recipient receives the request unless the
recipient received the request after 2 p.m., in which case the
recipient shall send the notice by the close of business the next
business day;
(2) E-mail notice sent to the list of registered charter providers
shall include:
(i) Customer name, address, phone number, and email address (if
available);
(ii) Requested date of service;
(iii) Approximate number of passengers;
(iv) Whether the type of equipment requested is (are) bus(es) or
van(s); and
(v) Trip itinerary and approximate duration; and
(3) If the recipient intends to provide service that meets
paragraph (2) of the definition of charter service under Sec. 604.3,
the email notice must include the fare the recipient intends to charge
for the service.
(c) A recipient shall retain an electronic copy of the email notice
and the list of registered charter providers that were sent email
notice of the requested charter service for a period of at least three
years from the date the email notice was sent.
(d) If a recipient receives an ``undeliverable'' notice in response
to its email notice, the recipient shall send the notice via facsimile.
The recipient shall maintain the record of the undeliverable email
notice and the facsimile sent confirmation for a period of three years.
Subpart D--Registration of Qualified Human Service Organizations
and Duties for Recipients With Respect to Charter Registration
Website
Sec. 604.15 Registration of qualified human service organizations.
(a) Qualified human service organizations (QHSO) that seek free or
[[Page 1414]]
reduced rate services from recipients, and do not receive funds from
human services Federal financial assistance programs listed in the CCAM
Program Inventory located on FTA's charter service website, but serve
individuals described in Sec. 604.7 (i.e., individuals with low
income, advanced age, or with disabilities), shall register on FTA's
charter registration website by submitting the following information:
(1) Name of organization, address, phone number, email address, and
facsimile number;
(2) The geographic service area of the recipient in which the
qualified human service organization resides;
(3) Basic financial information regarding the qualified human
service organization and whether the qualified human service
organization is exempt from taxation under section 501(c) (1), (3),
(4), or (19) of the Internal Revenue Code, and whether it is a unit of
Federal, State, or local government;
(4) Whether the qualified human service organization receives funds
directly or indirectly from a State or local program, and if so, which
program(s); and
(5) A narrative statement describing the types of charter service
trips the qualified human service organization may request from a
recipient and how that service is consistent with the mission of the
qualified human service organization.
(b) A qualified human service organization is eligible to receive
charter services from a recipient if it:
(1) Receives funds from at least one of the human services Federal
financial assistance programs listed in the CCAM Program Inventory; or
(2) Registers on the FTA website in accordance with paragraph (a)
of this section at least 60 days before the date of the requested
charter service and verifies FTA's receipt of its registration by
viewing its information on the FTA charter registration website.
(c) A registered charter provider may challenge a QHSO's
eligibility under paragraph (b)(2) of this section to receive charter
services from a recipient by requesting removal of the QHSO from FTA's
charter registration website by filing a complaint consistent with
subpart F of this part.
(d) A QHSO eligible under paragraph (b)(2) of this section to
receive charter services from a recipient shall provide current and
accurate information on FTA's charter registration website and shall
update that information no less frequently than every two years.
Sec. 604.16 Duties for recipients with respect to charter
registration website.
Each recipient shall ensure that its affected employees and
contractors have the necessary competency to effectively use the FTA
charter registration website.
Subpart E--Advisory Opinions and Cease and Desist Orders
Sec. 604.17 Purpose.
The purpose of this subpart is to set out the requirements for
requesting an advisory opinion from the Chief Counsel's Office. An
advisory opinion may also request that the Chief Counsel issue a cease
and desist order, which would be an order to refrain from doing an act
which, if done, would be a violation of this part.
Sec. 604.18 Request for an advisory opinion.
(a) An interested party may request an advisory opinion from the
Chief Counsel on a matter regarding specific factual events only.
(b) A request for an advisory opinion shall be submitted in the
following form:
[Date]
Chief Counsel, Federal Transit Administration, 1200 New Jersey
Ave. SE, Room E55- 302, Washington, DC 20590
Re: Request for Advisory Opinion
The undersigned submits this request for an advisory opinion
from the FTA Chief Counsel with respect to [the general nature of
the matter involved].
A. A full statement of all facts and legal points relevant to
the request
B. An affirmation that the undersigned swears, to the best of
his/her knowledge and belief, this request includes all data,
information, and views relevant to the matter, whether favorable or
unfavorable to the position of the undersigned, which is the subject
of the request.
C. The following certification: ``I hereby certify that I have
this day served the foregoing [name of document] on the following
interested party(ies) at the following ad- dresses and email or
facsimile numbers (if also served by email or facsimile) by [specify
method of service]:
[list persons, addresses, and email or facsimile numbers]''
Dated this xx day of xx, 20xx. [Signature]
[Printed name]
[Title of person making request] [Mailing address]
[Telephone number] [email address]
(c) The Chief Counsel may request additional information, as
necessary, from the party submitting the request for an advisory
opinion.
(d) A request for an advisory opinion may be denied if:
(1) The request contains incomplete information on which to base an
informed advisory opinion;
(2) The Chief Counsel concludes that an advisory opinion cannot
reasonably be given on the matter involved;
(3) The matter is adequately covered by a prior advisory opinion or
a regulation; and
(4) The Chief Counsel otherwise concludes that an advisory opinion
would not be in the public interest.
Sec. 604.19 Processing of advisory opinions.
(a) A request for an advisory opinion shall be sent to the Chief
Counsel at [email protected] and filed electronically in
the Charter Service Advisory Opinion/Cease and Desist Order docket
number FTA-2007-0023 at https://www.regulations.gov or sent to the
dockets office located at 1200 New Jersey Ave. SE, West Building Ground
Floor, Room W12-140, Washington, DC 20590, for submission to that
docket.
(b) The Chief Counsel shall make every effort to respond to a
request for an advisory opinion within ten days of receipt of a request
that complies with Sec. 604.18(b). The Chief Counsel shall send his or
her decision to the interested party, the docket, and the recipient, if
appropriate.
Sec. 604.20 Effect of an advisory opinion.
(a) An advisory opinion represents the formal position of FTA on a
matter, and except as provided in Sec. 604.25, obligates the agency to
follow it until it is amended or revoked.
(b) An advisory opinion may be used in administrative or court
proceedings to illustrate acceptable and unacceptable procedures or
standards, but not as a legal requirement and is limited to the factual
circumstances described in the request for an advisory opinion. The
Chief Counsel's advisory opinion shall not be binding upon a Presiding
Official conducting a proceeding under subpart I of this part.
(c) A statement made or advice provided by an FTA employee
constitutes an advisory opinion only if it is issued in writing under
this section. A statement or advice given by an FTA employee orally, or
given in writing, but not under this section, is an informal
communication that represents the best judgment of that employee at the
time but does not constitute an advisory opinion, does not necessarily
represent the formal position of FTA, and does not bind or otherwise
obligate or commit the agency to the views expressed.
Sec. 604.21 Special considerations for advisory opinions.
Based on new facts involving significant financial considerations,
the
[[Page 1415]]
Chief Counsel may take appropriate enforcement action contrary to an
advisory opinion before amending or revoking the opinion. This action
shall be taken only with the approval of the Administrator.
Sec. 604.22 Request for a cease and desist order.
(a) An interested party may also request a cease and desist order
as part of its request for an advisory opinion. A request for a cease
and desist order shall contain the following information in addition to
the information required for an advisory opinion:
(1) A description of the need for the cease and desist order, a
detailed description of the lost business opportunity the interested
party is likely to suffer if the recipient performs the charter service
in question, and how the public interest will be served by avoiding or
ameliorating the lost business opportunity. A registered charter
provider must distinguish its loss from that of other registered
charter providers in the geographic service area.
(2) A detailed description of the efforts made to notify the
recipient of the potential violation of the regulations in this part.
Include names, titles, phone numbers or email addresses of persons
contacted, date and times contact was made, and the response received,
if any.
(b) A request for a cease and desist order may be denied if:
(1) The request contains incomplete information on which to base an
informed decision on a cease and desist order;
(2) The Chief Counsel concludes that a cease and desist order
cannot reasonably be given on the matter involved;
(3) The matter is adequately covered by a prior a cease and desist
order; or
(4) The Chief Counsel otherwise concludes that a cease and desist
order would not be in the public interest.
(c) A recipient who is the subject of a request for a cease and
desist order shall have three business days to respond to the request.
The response shall include a point-by-point rebuttal to the information
included in the request for a cease and desist order.
(d) The time period for a response by the recipient begins once a
registered charter provider files a request in the Advisory Opinions/
Cease and Desist Orders docket (FTA-2007-0023 at https://www.regulations.gov) or with the FTA Chief Counsel's Office, whichever
date is sooner.
Sec. 604.23 Decisions by the Chief Counsel regarding cease and
desist orders.
(a) The Chief Counsel may grant a request for a cease and desist
order if the interested party demonstrates, by a preponderance of the
evidence, that the planned provision of charter service by a recipient
would violate this part.
(b) In determining whether to grant the request for a cease and
desist order, the Chief Counsel shall consider the specific facts shown
in the signed, sworn request for a cease and desist order, applicable
statutes, regulations, agreements, and any other information that is
relevant to the request.
Sec. 604.24 Effect of a cease and desist order.
Issuance of a cease and desist order against a recipient shall be
considered as an aggravating factor in determining the remedy to impose
against the recipient in future findings of noncompliance with this
part, if the recipient provides the service described in the cease and
desist order issued by the Chief Counsel.
Subpart F--Complaints
Sec. 604.25 Purpose.
This subpart describes the requirements for filing a complaint
challenging the registration of a private charter operator or qualified
human service organization on the FTA charter registration website and
filing a complaint regarding the provision of charter service by a
recipient. Note: To save time and expense for all concerned, FTA
expects all parties to attempt to resolve matters informally before
beginning the official complaint process.
Sec. 604.26 Complaints and decisions regarding removal of private
charter operators or qualified human service organizations from
registration list.
(a) A recipient, a registered charter provider, or its duly
authorized representative, may challenge the listing of a registered
charter provider or qualified human service organization on FTA's
charter registration website by filing a complaint that meets the
following:
(1) States the name and address of each entity who is the subject
of the complaint;
(2) Provides a concise but complete statement of the facts relied
upon to substantiate the reason why the private charter operator or
qualified human service organization should not be listed on the FTA
charter registration website;
(3) Files electronically by submitting it to the Charter Service
Removal Complaints docket number FTA-2007-0024 at https://www.regulations.gov;
(4) Serves by email or facsimile if no email address is available,
or by overnight mail service with receipt confirmation, and attaches
documents offered in support of the complaint, upon all entities named
in the complaint;
(5) Files within 90 days of discovering facts that merit removal of
the registered charter provider or qualified human service organization
from the FTA Charter Registration website; and
(6) Contains the following certification:
I hereby certify that I have this day served the foregoing [name
of document] on the following persons at the following addresses and
email or facsimile numbers (if also served by email or facsimile) by
[specify method of service]:
[list persons, addresses, and email or facsimile numbers]
Dated this xx day of xxxx, 20xx. [signature], for [party].
(b) The registered charter provider or qualified human service
organization shall have 15 days to answer the complaint and shall file
such answer, and all supporting documentation, in the Charter Service
Removal Complaint docket number FTA-2007-0024 at https://www.regulations.gov and email such answer to
[email protected].
(c) A recipient, qualified human service organization, or a
registered charter provider, or its duly authorized representative,
shall not file a reply to the answer.
(d) FTA shall determine whether to remove the registered charter
provider or qualified human service organization from the FTA charter
registration website based on a preponderance of the evidence of one or
more of the following:
(1) Bad faith;
(2) Fraud;
(3) Lapse of insurance;
(4) Lapse of other documentation; or
(5) The filing of more than one complaint, which on its face, does
not state a claim that warrants an investigation or further action by
FTA.
(e) FTA's determination whether or not to remove a registered
charter provider or qualified human service organization from the
registration list shall be sent to the parties within 30 days of the
date of the response required in paragraph (b) of this section and
shall state:
(1) Reasons for allowing the continued listing or removal of the
registered charter provider or qualified human service organization
from the registration list;
(2) If removal is ordered, the length of time (not to exceed three
years) the private charter operator or qualified human service
organization shall be barred from the registration list; and
(3) The date by which the private charter operator or qualified
human
[[Page 1416]]
service organization may re-apply for registration on the FTA charter
registration website.
Sec. 604.27 Complaints, answers, replies, and other documents.
(a) A registered charter provider, or its duly authorized
representative (``complainant''), affected by an alleged noncompliance
of this part may file a complaint with the Office of the Chief Counsel.
(b) Complaints filed under this subpart shall:
(1) Be titled ``Notice of Charter Service Complaint'';
(2) State the name and address of each recipient that is the
subject of the complaint and, with respect to each recipient, the
specific provisions of this part that the complainant believes were
violated;
(3) Be served in accordance with Sec. 604.31, along with all
documents then available in the exercise of reasonable diligence,
offered in support of the complaint, upon all recipients named in the
complaint as being responsible for the alleged action(s) or omission(s)
upon which the complaint is based;
(4) Provide a concise but complete statement of the facts relied
upon to substantiate each allegation (complainant must show by a
preponderance of the evidence that the recipient provided charter
service and that such service did not fall within one of the exemptions
or exceptions set out in this part);
(5) Describe how the complainant was directly and substantially
affected by the things done or omitted by the recipients;
(6) Identify each registered charter provider associated with the
complaint; and
(7) Be filed within 90 days after the alleged event giving rise to
the complaint occurred.
(c) Unless the complaint is dismissed pursuant to Sec. 604.28 or
Sec. 604.29, FTA shall notify the complainant, respondent, and State
recipient, if applicable, within 30 days after the date FTA receives
the complaint that the complaint has been docketed. Respondent shall
have 30 days from the date of service of the FTA notification to file
an answer.
(d) The complainant may file a reply within 20 days of the date of
service of the respondent's answer.
(e) The respondent may file a rebuttal within 10 days of the date
of service of the reply.
(f) The answer, reply, and rebuttal shall, like the complaint,
contain a concise but complete statement of the facts relied upon to
substantiate the answers, admissions, denials, or averments made and be
accompanied by the supporting documentation upon which the submitter
relies.
(g) The answer shall deny or admit the allegations made in the
complaint or state that the entity filing the document is without
sufficient knowledge or information to admit or deny an allegation and
shall assert any affirmative defense.
(h) The respondent's answer may include a motion to dismiss the
complaint, or any portion thereof, with a supporting memorandum of
points and authorities.
(i) The complainant may withdraw a complaint at any time after
filing by serving a ``Notification of Withdrawal'' on the Chief Counsel
and the respondent.
Sec. 604.28 Dismissals.
Within 20 days after the receipt of a complaint described in Sec.
604.27, the Office of the Chief Counsel shall provide reasons for
dismissing a complaint, or any claim in the complaint, with prejudice,
under this section if:
(a) It appears on its face to be outside the jurisdiction of FTA
under the Federal Transit Laws;
(b) On its face it does not state a claim that warrants an
investigation or further action by FTA; or
(c) The complainant lacks standing to file a complaint under
subpart B, C, or D of this part.
Sec. 604.29 Incomplete complaints.
If a complaint is not dismissed under Sec. 604.28, but is
deficient as to one or more of the requirements set forth in Sec.
604.27, the Office of the Chief Counsel may dismiss the complaint
within 20 days after receiving it. Dismissal shall be without prejudice
and the complainant may re-file after amendment to correct the
deficiency. The Chief Counsel's dismissal shall include the reasons for
the dismissal without prejudice.
Sec. 604.30 Filing complaints.
(a) Filing address. Unless provided otherwise, the complainant
shall file the complaint with the Office of the Chief Counsel, 1200 New
Jersey Ave. SE, Room E55-302, Washington, DC 20590 and file it
electronically in the Charter Service Complaint docket number FTA-2007-
0025 at https://www.regulations.gov or mail it to the docket by sending
the complaint to 1200 New Jersey Ave. SE, West Building Ground Floor,
Room W12-140, Washington, DC 20590.
(b) Date and method of filing. Filing of any document shall be by
personal delivery, U.S. mail, or overnight delivery with receipt
confirmation. Unless the date is shown to be inaccurate, documents to
be filed with FTA shall be deemed filed on the earliest of:
(1) The date of personal delivery;
(2) The mailing date shown on the certificate of service;
(3) The date shown on the postmark if there is no certificate of
service; or
(4) The mailing date shown by other evidence if there is no
certificate of service and no postmark.
(c) Electronic service. A document sent by email shall not
constitute service as described in Sec. 604.31.
(d) Number of copies. Unless otherwise specified, an executed
original shall be filed with FTA.
(e) Form. Documents filed with FTA shall be typewritten or legibly
printed. In the case of docketed proceedings, the document shall
include a title and the docket number, as established by the Chief
Counsel or Presiding Official, of the proceeding on the front page.
(f) Signing of documents and other papers. The original of every
document filed shall be signed by the person filing it or the person's
duly authorized representative. Subject to the enforcement provisions
contained in this subpart, the signature shall serve as a certification
that the signer has read the document and, based on reasonable inquiry,
to the best of the signer's knowledge, information, and belief, the
document is:
(1) Consistent with this part;
(2) Warranted by existing law or that a good faith argument exists
for extension, modification, or reversal of existing law; and
(3) Not interposed for any improper purpose, such as to harass or
to cause unnecessary delay or needless increase in the cost of the
administrative process.
Sec. 604.31 Service.
(a) Designation of person to receive service. The initial document
filed by the complainant shall state on the first page of the document
for all parties to be served:
(1) The title of the document;
(2) The name, post office address, telephone number; and
(3) The facsimile number, if any, and email address(es), if any.
(4) If any of the items in paragraphs (a)(1) through (3) of this
section change during the proceeding, the person shall promptly file
notice of the change with FTA and the Presiding Official, if
appropriate, and shall serve the notice on all other parties to the
proceeding.
(b) Docket numbers. Each submission identified as a complaint under
this part
[[Page 1417]]
by the submitting party shall be filed in the Charter Service Complaint
docket FTA-2007-0025.
(c) Who must be served. Copies of all documents filed with FTA
shall be served by the entity filing them on all parties to the
proceeding. A certificate of service shall accompany all documents when
they are tendered for filing and shall certify concurrent service on
FTA and all parties. Certificates of service shall be in substantially
the following form:
I hereby certify that I have this day served the foregoing [name
of document] on the following persons at the following addresses and
email or facsimile numbers (if also served by email or facsimile) by
[specify method of service]:
[list persons, addresses, and email or facsimile numbers]
Dated this xx day of xxxx, 20xx. [signature], for [party]
(d) Method of service. Except as otherwise provided in Sec.
604.26, or agreed by the parties and the Presiding Official, as
appropriate, the method of service is personal delivery or U.S. mail.
(e) Presumption of service. There shall be a presumption of lawful
service:
(1) When acknowledgment of receipt is by a person who customarily
or in the ordinary course of business receives mail at the address of
the party or of the person designated under this section; or
(2) When a properly addressed envelope, sent to the last known
address has been returned as undeliverable, un-claimed, or refused.
Subpart G--Investigations
Sec. 604.32 Investigation of complaint.
(a) If, based on the pleadings, there appears to be a reasonable
basis for investigation, FTA shall investigate the subject matter of
the complaint.
(b) The investigation may include a review of written submissions
or pleadings of the parties, as supplemented by any informal
investigation FTA considers necessary and by additional information
furnished by the parties at FTA request. Each party shall file
documents that it considers sufficient to present all relevant facts
and argument necessary for FTA to determine whether the recipient is in
compliance.
(c) The Chief Counsel shall send a notice to complainant(s) and
respondent(s) once an investigation is complete, but not later than 90
days after receipt of the last pleading specified in Sec. 604.27 was
due to FTA.
Sec. 604.33 Agency initiation of investigation.
(a) Notwithstanding any other provision under this part, FTA may
initiate its own investigation of any matter within the applicability
of this part without having received a complaint. The investigation may
include, without limitation, any of the actions described in Sec.
604.32.
(b) Following the initiation of an investigation under this
section, FTA sends a notice to the entities subject to investigation.
The notice will set forth the areas of FTA's concern and the reasons;
request a response to the notice within 30 days of the date of service;
and inform the respondent that FTA will, in its discretion, invite good
faith efforts to resolve the matter.
(c) If the matters addressed in the FTA notice are not resolved
informally, the Chief Counsel may refer the matter to a Presiding
Official.
Subpart H--Decisions by FTA and Appointment of a Presiding Official
(PO)
Sec. 604.34 Chief Counsel decisions and appointment of a PO.
(a) After receiving a complaint consistent with Sec. 604.27, and
conducting an investigation, the Chief Counsel may:
(1) Issue a decision based on the pleadings filed to date;
(2) Appoint a PO to review the matter; or
(3) Dismiss the complaint pursuant to Sec. 604.28.
(b) If the Chief Counsel appoints a PO to review the matter, the
Chief Counsel shall send out a hearing order that sets forth the
following:
(1) The allegations in the complaint, or notice of investigation,
and the chronology and results of the investigation preliminary to the
hearing conducted in accordance with subpart I of this part;
(2) The relevant statutory, judicial, regulatory, and other
authorities;
(3) The issues to be decided;
(4) Such rules of procedure as may be necessary to supplement the
provisions of this part;
(5) The name and address of the PO, and the assignment of authority
to the PO to conduct the hearing in accordance with the procedures set
forth in this part; and
(6) The date by which the PO is directed to issue a recommended
decision.
Sec. 604.35 Separation of functions.
(a) Proceedings under this part shall be handled by an FTA
attorney, except that the Chief Counsel may appoint a PO, who may not
be an FTA attorney.
(b) After issuance of an initial decision by the Chief Counsel, the
FTA employee or contractor engaged in the performance of investigative
or prosecutorial functions in a proceeding under this part shall not,
in that case or a factually related case, participate or give advice in
a final decision by the Administrator or his or her designee on written
appeal, and shall not, except as counsel or as witness in the public
proceedings, engage in any substantive communication regarding that
case or a related case with the Administrator on written appeal.
Subpart I--Hearings
Sec. 604.36 Powers of a PO.
A PO may:
(a) Give notice of, and hold, pre-hearing conferences and hearings;
(b) Administer oaths and affirmations;
(c) Issue notices of deposition requested by the parties;
(d) Limit the frequency and extent of discovery;
(e) Rule on offers of proof;
(f) Receive relevant and material evidence;
(g) Regulate the course of the hearing in accordance with the rules
of this part to avoid unnecessary and duplicative proceedings in the
interest of prompt and fair resolution of the matters at issue;
(h) Hold conferences to settle or to simplify the issues by consent
of the parties;
(i) Dispose of procedural motions and requests;
(j) Examine witnesses; and
(k) Make findings of fact and conclusions of law and issue a
recommended decision.
Sec. 604.37 Appearances, parties, and rights of parties.
(a) Any party to the hearing may appear and be heard in person and
any party to the hearing may be accompanied, represented, or advised by
an attorney licensed by a State, the District of Columbia, or a
territory of the United States to practice law or appear before the
courts of that State or territory, or by another duly authorized
representative. An attorney, or other duly authorized representative,
who represents a party shall file according to the filing and service
procedures contained in Sec. Sec. 604.30 and 604.31.
(b) The parties to the hearing are the respondent(s) named in the
hearing order, the complainant(s), and FTA, as represented by the PO.
(c) The parties to the hearing may agree to extend for a reasonable
period of time the time for filing a document under this part. If the
parties agree, the PO shall grant one extension of time to
[[Page 1418]]
each party. The party seeking the extension of time shall submit a
draft order to the PO to be signed by the PO and filed with the hearing
docket. The PO may grant additional oral requests for an extension of
time where the parties agree to the extension.
(d) An extension of time granted by the PO for any reason extends
the due date for the PO's recommended decision and for the final agency
decision by the length of time in the PO's extension.
Sec. 604.38 Discovery.
(a) Permissible forms of discovery shall be within the discretion
of the PO.
(b) The PO shall limit the frequency and extent of discovery
permitted by this section if a party shows that:
(1) The information requested is cumulative or repetitious;
(2) The information requested may be obtained from another less
burdensome and more convenient source;
(3) The party requesting the information has had ample opportunity
to obtain the information through other discovery methods permitted
under this section; or
(4) The method or scope of discovery requested by the party is
unduly burdensome or expensive.
Sec. 604.39 Depositions.
(a) For good cause shown, the PO may order that the testimony of a
witness may be taken by deposition and that the witness produce
documentary evidence in connection with such testimony. Generally, an
order to take the deposition of a witness is entered only if:
(1) The person whose deposition is to be taken would be unavailable
at the hearing;
(2) The deposition is deemed necessary to perpetuate the testimony
of the witness; or
(3) The taking of the deposition is necessary to prevent undue and
excessive expense to a party and will not result in undue burden to
other parties or in undue delay.
(b) Any party to the hearing desiring to take the deposition of a
witness according to the terms set out in this subpart, shall file a
motion with the PO, with a copy of the motion served on each party. The
motion shall include:
(1) The name and residence of the witness;
(2) The time and place for the taking of the proposed deposition;
(3) The reasons why such deposition should be taken; and
(4) A general description of the matters concerning which the
witness will be asked to testify.
(c) If good cause is shown in the motion, the PO in his or her
discretion may issue an order authorizing the deposition and specifying
the name of the witness to be deposed, the location and time of the
deposition, and the general scope and subject matter of the testimony
to be taken.
(d) Witnesses whose testimony is taken by deposition shall be sworn
or shall affirm before any questions are put to them. Each question
propounded shall be recorded and the answers of the witness transcribed
verbatim. The written transcript shall be subscribed by the witness,
unless the parties by stipulation waive the signing, or the witness is
ill, cannot be found, or refuses to sign. The reporter shall note the
reason for failure to sign.
Sec. 604.40 Public disclosure of evidence.
(a) Except as provided in this section, the hearing shall be open
to the public.
(b) The PO may order that any information contained in the record
be withheld from public disclosure. Any person may object to disclosure
of information in the record by filing a written motion to withhold
specific information with the PO. The person shall state specific
grounds for nondisclosure in the motion.
(c) The PO shall grant the motion to withhold information from
public disclosure if the PO determines that disclosure would be in
violation of the Privacy Act, would reveal trade secrets or privileged
or confidential commercial or financial information, or is otherwise
prohibited by law.
Sec. 604.41 Standard of proof.
The PO shall issue a recommended decision or shall rule in a
party's favor only if the decision or ruling is supported by a
preponderance of the evidence.
Sec. 604.42 Burden of proof.
(a) The burden of proof of noncompliance with this part,
determination, or agreement issued under the authority of the Federal
Transit Laws is on the registered charter provider.
(b) Except as otherwise provided by statute or rule, the proponent
of a motion, request, or order has the burden of proof.
Sec. 604.43 Offer of proof.
A party whose evidence has been excluded by a ruling of the PO,
during a hearing in which the respondent had an opportunity to respond
to the offer of proof, may offer the evidence on the record when filing
an appeal.
Sec. 604.44 Record.
(a) The transcript of all testimony in the hearing, all exhibits
received into evidence, all motions, applications requests and rulings,
and all documents included in the hearing record shall constitute the
exclusive record for decision in the proceedings and the basis for the
issuance of any orders.
(b) Any interested person may examine the record by entering the
docket number at https://www.regulations.gov or after payment of
reasonable costs for search and reproduction of the record.
Sec. 604.45 Waiver of procedures.
(a) The PO shall waive such procedural steps as all parties to the
hearing agree to waive before issuance of an initial decision.
(b) Consent to a waiver of any procedural step bars the raising of
this issue on appeal.
(c) The parties may not by consent waive the obligation of the PO
to enter a recommended decision on the record.
Sec. 604.46 Recommended decision by a PO.
(a) The PO shall issue a recommended decision based on the record
developed during the proceeding and shall send the recommended decision
to the Chief Counsel for ratification or modification not later than
110 days after the referral from the Chief Counsel.
(b) The Chief Counsel shall ratify or modify the PO's recommended
decision within 30 days of receiving the recommended decision. The
Chief Counsel shall serve his or her decision, which is capable of
being appealed to the Administrator, on all parties to the proceeding.
Sec. 604.47 Remedies.
(a) If the Chief Counsel determines that a violation of this part
occurred, he or she may take one or more of the following actions:
(1) Bar the recipient from receiving future Federal financial
assistance from FTA;
(2) Order the withholding of a reasonable percentage of available
Federal financial assistance; or
(3) Pursue suspension and debarment of the recipient, its
employees, or its contractors.
(b) In determining the type and amount of remedy, the Chief Counsel
shall consider the following factors:
(1) The nature and circumstances of the violation;
(2) The extent and gravity of the violation (``extent of deviation
from regulatory requirements'');
(3) The revenue earned (``economic benefit'') by providing the
charter service;
(4) The operating budget of the recipient;
[[Page 1419]]
(5) Such other matters as justice may require; and
(6) Whether a recipient provided service described in a cease and
desist order after issuance of such order by the Chief Counsel.
(c) The Chief Counsel office may mitigate the remedy when the
recipient can document corrective action of alleged violation. The
Chief Counsel's decision to mitigate a remedy shall be determined on
the basis of how much corrective action was taken by the recipient and
when it was taken. Systemic action to prevent future violations will be
given greater consideration than action simply to remedy violations
identified during FTA's inspection or identified in a complaint.
(d) In the event the Chief Counsel finds a pattern of violations,
the remedy ordered shall bar a recipient from receiving Federal transit
assistance in an amount that the Chief Counsel considers appropriate.
(e) The Chief Counsel may make a decision to withhold Federal
financial assistance in a lump sum or over a period of time not to
exceed five years.
Subpart J--Appeal to Administrator and Final Agency Orders
Sec. 604.48 Appeal from Chief Counsel decision.
(a) Each party adversely affected by the Chief Counsel's office
decision may file an appeal with the Administrator within 21 days of
the date of the Chief Counsel's issued his or her decision. Each party
may file a reply to an appeal within 21 days after it is served on the
party. Filing and service of appeals and replies shall be by personal
delivery consistent with Sec. Sec. 604.30 and 604.31.
(b) If an appeal is filed, the Administrator reviews the entire
record and issues a final agency decision based on the record that
either accepts, rejects, or modifies the Chief Counsel's decision
within 30 days of the due date of the reply. If no appeal is filed, the
Administrator may take review of the case on his or her own motion. If
the Administrator finds that the respondent is not in compliance with
this part, the final agency order shall include a statement of
corrective action, if appropriate, and identify remedies.
(c) If no appeal is filed, and the Administrator does not take
review of the decision by the office on the Administrator's own motion,
the Chief Counsel's decision shall take effect as the final agency
decision and order on the twenty-first day after the actual date the
Chief Counsel's decision was issued.
(d) The failure to file an appeal is deemed a waiver of any rights
to seek judicial review of the Chief Counsel's decision that becomes a
final agency decision by operation of paragraph (c) of this section.
Sec. 604.49 Administrator's discretionary review of the Chief
Counsel's decision.
(a) If the Administrator takes review on the Administrator's own
motion, the Administrator shall issue a notice of review by the twenty-
first day after the actual date of the Chief Counsel's decision that
contains the specific findings of fact and conclusions of law in the
decision subject to review by the Administrator.
(b) Parties may file one brief on review to the Administrator or
rely on their post-hearing briefs to the Chief Counsel's office. Briefs
on review shall be filed not later than 10 days after service of the
notice of review. Filing and service of briefs on review shall be by
personal delivery consistent with Sec. Sec. 604.30 and 604.31.
(c) The Administrator shall issue a final agency decision and order
within 30 days of the due date of the briefs on review. If the
Administrator finds that the respondent is not in compliance with this
part, the final agency order shall include a statement of corrective
action, if appropriate, and identify remedies.
(d) If the Administrator takes review on the Administrator's own
motion, the decision of the Chief Counsel is stayed pending a final
decision by the Administrator.
Subpart K--Judicial Review
Sec. 604.50 Judicial review of a final decision and order.
(a) A person may seek judicial review in an appropriate United
States District Court of a final decision and order of the
Administrator as provided in 5 U.S.C. 701-706. A party seeking judicial
review of a final decision and order shall file a petition for review
with the Court not later than 60 days after a final decision and order
is effective.
(b) The following do not constitute final decisions and orders
subject to judicial review:
(1) FTA's decision to dismiss a complaint as set forth in Sec.
604.29;
(2) A recommended decision issued by a PO at the conclusion of a
hearing; or
(3) A Chief Counsel decision that becomes the final decision of the
Administrator because it was not appealed within the stated timeframes.
[FR Doc. 2024-30970 Filed 1-7-25; 8:45 am]
BILLING CODE 4910-57-P