FTA charter regulations

[Myrtone]

A whlie ago a learn from a discussion on another ralifan forum that that US has a federal law restricting transit companies from offering charter services, whether on roads or rails. The regulation was there to stop trasnit bus who benefit from federal funding and tax exemptions from competing with for-profit private bus operators.
Apparently if say a high school is going on a excusion on a chartered vehicle, let's say it can be done by streetcar, and a private carrier can also do so by bus, then the high school may be denied the rail option all because of a regulation that was originally passed to stop federally funded bus operators from competing with private charter services.

[R36 Combine Coach]

Refer to 49 CFR 604. 49 CFR 604 Subpart A includes general rules and provisions.

Brief summary: The FTA charter rules are intended to protects private charter carriers from unauthorized competition by federally funded transportation agencies and carriers.

Any FTA program recipient agency must enter into a “Charter Service Agreement”, with terms of the Agreement as follows: “The recipient agrees that it, and each of its subrecipients, 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 604, the terms and conditions of which are incorporated herein by reference.”

Exemptions under Subpart B include government officials, qualified human service organizations (low income and disabled transportation), lease of FTA-funded vehicles to a private carrier that exceeds its available capacity and upon petition for major events or hardship. 49 CFR 604 rules are waived for use in the event of an officially declared emergency.

These rules apply to "bus or van" transportation only, and not rail services. For example, NJ Transit offers charter excursion trains (but not buses).