Appendix B to Part 604 - Reasons for Removal
49:188.8.131.52.184.108.40.206.32 : Appendix B
Appendix B to Part 604 - Reasons for Removal
The following is guidance on the terms contained in section
604.26(d) concerning reasons for which FTA may remove a registered
charter provider or a qualified human service organization from the
FTA charter registration Web site.
What is bad faith?
Bad faith is the actual or constructive fraud or a design to
mislead or deceive another or a neglect or refusal to fulfill a
duty or contractual obligation. It is not an honest mistake.
Black's Law Dictionary, Revised Fourth Edition, West Publishing
Company, St. Paul, Minn., 1968.
For example, it would be bad faith for a registered charter
provider to respond to a recipient's notification to registered
charter providers of a charter service opportunity stating that it
would provide the service with no actual intent to perform the
charter service. It would also be bad faith if the registered
charter provider fails to contact the customer or provide a quote
for charter service within a reasonable time. Typically, if a
registered charter provider fails to contact a customer or fails to
provide a price quote to the customer at least 14 business days
before an event, then FTA may remove the registered charter
provider from the registration Web site, which would allow a
transit agency to step back in to provide the service because the
registered charter provider's response to the email would no longer
be effective because it is not registered.
Further, it would be bad faith for a registered charter provider
to submit a quote for charter services knowing that the price is
three to four times higher because of the distance the registered
charter provider must travel (deadhead time). In those situations,
FTA may interpret such quotes as bad faith because they appear to
be designed to prevent the local transit agency from providing the
On the other hand, FTA would not interpret an honest mistake of
fact as bad faith. For example, if a registered charter provider
fails to provide charter service in response to a recipient's
notification when it honestly mistook the date, place or time the
service was to be provided. It would not be bad faith if the
registered charter provider responded affirmatively to the email
notification sent by the public transit agency, but then later
learned it could not perform the service and provided the transit
agency reasonable notice of its changed circumstances.
What is fraud?
Fraud is the suggestion or assertion of a fact that is not true,
by one who has no reasonable ground for believing it to be true;
the suppression of a fact by one who is bound to disclose it; one
who gives information of other facts which are likely to mislead;
or a promise made without any intention of performing it. Black's
Law Dictionary, Revised Fourth Edition, West Publishing Company,
St. Paul, Minn., 1968.
Examples of fraud include but are not limited to: (1) A
registered charter provider indicates that it has a current state
or Federal safety certification when it knows that it does not in
fact have one; (2) a broker that owns no charter vehicles registers
as a registered charter provider; or (3) a qualified human service
organization represents that its serves the needs of the elderly,
persons with disabilities, or lower-income individuals, but, in
fact, only serves those populations tangentially.
What is a lapse of insurance?
A lapse of insurance occurs when there is no policy of insurance
is in place. This may occur when there has been default in payment
of premiums on an insurance policy and the policy is no longer in
force. In addition, no other policy of insurance has taken its
place. Black's Law Dictionary, Revised Fourth Edition, West
Publishing Company, St. Paul, Minn., 1968.
What is a lapse of other documentation?
A lapse of other documentation means for example, but is not
limited to, failure to have or loss or revocation of business
license, operating authority, failure to notify of current company
name, address, phone number, email address and facsimile number,
failure to have a current state or Federal safety certification, or
failure to provide accurate Federal or state motor carrier
identifying number. Black's Law Dictionary, Revised Fourth Edition,
West Publishing Company, St. Paul, Minn., 1968.
What is a complaint that does not state a claim that warrants an
investigation or further action by FTA?
A complaint is a document describing a specific instance that
allegedly constitutes a violation of the charter service
regulations set forth in 49 CFR 604.28. More than one complaint may
be contained in the same document. A complaint does not state a
claim that warrants investigation when the allegations made in the
complaint, without considering any extraneous material or matter,
do not raise a genuine issue as to any material question of fact,
and based on the undisputed facts stated in the complaint, there is
no violation of the charter service statute or regulation as a
matter of law. Based on Federal Rules of Civil Procedure, Rule
Examples of complaints that would not warrant an investigation
or further action by FTA include but are not limited to: (1) A
complaint against a public transit agency that does not receive FTA
funding; (2) a complaint brought against a public transit agency by
a private charter operator that is neither a registered charter
provider nor its duly authorized representative; (3) a complaint
that gives no information as to when or where the alleged
prohibited charter service took place; or (4) a complaint filed
solely for the purpose of harassing the public transit agency.
[73 FR 44931, Aug. 1, 2008]