Appendix C to Part 604 - Frequently Asked Questions
49:188.8.131.52.184.108.40.206.33 : Appendix C
Appendix C to Part 604 - Frequently Asked Questions (a)
Applicability (49 CFR Section 604.2)
(1) Q: If the requirements of the charter rule are not
applicable to me for a particular service I provide, do I have to
report that service in my quarterly report?
A: No. If the service you propose to provide meets one of the
exemptions contained in this section, you do not have to report the
service in your quarterly report.
(2) Q: If I receive funds under 49 U.S.C. Sections 5310, 5311,
5316, or 5317, may I provide charter service for any purpose?
A: No. You may only provide charter service for “program
purposes,” which is defined in this regulation as “transportation
that serves the needs of either human service agencies or targeted
populations (elderly, individuals with disabilities, and/or low
income individuals) * * *” 49 CFR Section 604.2(e). Thus, your
service only qualifies for the exemption contained in this section
if the service is designed to serve the needs of targeted
populations. Charter service provided to a group, however, that
includes individuals who are only incidentally members of those
targeted populations, is not “for program purposes” and must meet
the requirements of the rule (for example, an individual chartering
a vehicle to take his relatives including elderly aunts and a
cousin who is a disabled veteran to a family reunion).
(3) Q: If I am providing service for program purposes under one
of the FTA programs listed in 604.2.(e), do the human service
organizations have to register on the FTA Charter Registration Web
A: No. Because the service is exempt from the charter
regulations, the organization does not have to register on the FTA
Charter Registration Web site.
(4) Q: What if there is an emergency such as an apartment fire
or tanker truck spill that requires an immediate evacuation, but
the President, Governor, or Mayor never declares it as an
emergency? Can a transit agency still assist in the evacuation
A: Yes. One part of the emergency exemption is designed to allow
transit agencies to participate in emergency situations without
worrying about complying with the charter regulations. Since
transit agencies are often uniquely positioned to respond to such
emergencies, the charter regulations do not apply. This is true
whether or not the emergency is officially declared.
(5) Q: Do emergency situations involve requests from the Secret
Service or the police department to transport its employees?
A. Generally no. Transporting the Secret Service or police
officers for non-emergency preparedness or planning exercises does
not qualify for the exemption under this section. In addition, if
the Secret Service or the police department requests that a transit
agency provide service when there is no immediate emergency, then
the transit agency must comply with the charter service
(6) Q: Can a transit agency provide transportation to transit
employees for an event such as the funeral of a transit employee or
the transit agency's annual picnic?
A: Yes. These events do not fall within the definition of
charter, because while the service is exclusive, it is not provided
at the request of a third party and it is not at a negotiated
price. Furthermore, a transit agency transporting its own employees
to events sponsored by the transit agency for employee morale
purposes or to events directly related to internal employee
relations such as a funeral of an employee, or to the transit
agency's picnic, is paying for these services as part of the
transit agency's own administrative overhead.
(7) Q: Is sightseeing service considered to be charter?
A: “Sightseeing” is a different type of service than charter
service. “Sightseeing” service is regularly scheduled round trip
service to see the sights, which is often accompanied by a
narrative guide and is open to the public for a set price. Public
transit agencies may not provide sightseeing service with federally
funded assets or assistance because it falls outside the definition
of “public transportation” under 49 U.S.C. Section 5302(a) (10),
unless FTA provides written concurrence for that service as an
approved incidental use. While, in general, “sightseeing” service
does not constitute charter service, “sightseeing” service that
also meets the definition of charter service would be prohibited,
even as an incidental use.
(8) Q: If a private provider receives Federal funds from one of
the listed programs in this section, does that mean the private
provider cannot use its privately owned equipment to provide
A: No. A private provider may still provide charter services
even though it receives Federal funds under one of the programs
listed in this section. The charter regulations only apply to a
private provider during the time period when it is providing public
transportation services under contract with a public transit
(9) Q: What does FTA mean by the phrase “non-FTA funded
A: Non-FTA funded activities are those activities that are not
provided under contract or other arrangement with a public transit
agency using FTA funds.
(10) Q: How does a private provider know whether an activity is
FTA-funded or not?
A: The private provider should refer to the contract with the
public transit agency to understand the services that are funded
with Federal dollars.
(11) Q: What if the service is being provided under a capital
cost of contracting scenario?
A: When a private operator receives FTA funds through capital
cost of contracting, the only expenses attributed to FTA are those
related to the transit service provided. The principle of capital
cost of contracting is to pay for the capital portion of the
privately owned assets used in public transportation (including a
share of preventive maintenance costs attributable to the use of
the vehicle in the contracted transit service). When a private
operator uses that same privately owed vehicle in non-FTA funded
service, such as charter service, the preventive maintenance and
capital depreciation are not paid by FTA, so the charter rule does
(12) Q: What if the service is provided under a turn-key
A: To the extent the private charter provider is standing in the
shoes of the public transit agency, the charter rules apply. Under
a turn-key contract, where the private operator provides and
operates a dedicated transit fleet, then the private provider must
abide by the charter regulations for the transit part of its
business. The charter rule would not apply, however, to other
aspects of that private provider's business. FTA also recognizes
that a private operator may use vehicles in its fleet
interchangeably. So long as the operator is providing the number,
type, and quality of vehicles contractually required to be provided
exclusively for transit use and is not using FTA funds to
cross-subsidize private charter service, the private operator may
manage its fleet according to best business practice.
(13) Q: Does FTA's rule prohibit a private provider from
providing charter service when its privately owned vehicles are not
engaged in providing public transportation?
A: No. The charter rule is only applicable to the actual public
transit service provided by the private operator. As stated in 49
CFR 604.2(c), the rule does not apply to the non-FTA funded
activities of private charter operators. The intent of this
provision was to isolate the impacts of the charter rule on private
operators to those instances where they stood in the shoes of a
(14) Q: May a private provider use vehicles whose acquisition
was federally funded to provide private charter services?
A: It depends. A private provider, who is a sub-recipient or
sub-grantee, when not engaged in providing public transit using
federally funded vehicles, may provide charter services using
federally funded vehicles only in conformance with the charter
regulations. Vehicles, whose only federal funding was for
accessibility equipment, are not considered to be federally funded
vehicles in this context. In other words, vehicles, whose lifts are
only funded under FTA programs, may be used in charter service.
(15) Q: May a public transit agency provide “seasonal service”
(e.g., service May through September for the summer beach
A: “Seasonal service” that is regular and continuing, available
to the public, and controlled by the public transit agency meets
the definition of public transportation and is not charter service.
The service should have a regular schedule and be planned in the
same manner as all the other routes, except that it is run only
during the periods when there is sufficient demand to justify
public transit service; for example, the winter ski season or
summer beach season. “Seasonal service” is distinguishable from
charter service provided for a special event or function that
occurs on an irregular basis or for a limited duration, because the
seasonal transit service is regular and continuing and the demand
for service is not triggered by an event or function. In addition,
“seasonal service” is generally more than a month or two, and the
schedule is consistent from year to year, based on calendar or
climate, rather than being scheduled around a specific event.
(b) Definitions (49 CFR Section 604.3)
(16) Q: The definition of charter service does not include
demand response services, but what happens if a group of
individuals request demand response service?
A: Demand response trips provide service from multiple origins
to a single destination, a single origin to multiple destinations,
or even multiple origins to multiple destinations. These types of
trips are considered demand response transit service, not charter
service, because even though a human service agency pays for the
transportation of its clients, trips are scheduled and routed for
the individuals in the group. Service to individuals can be
identified by vehicle routing that includes multiple origins,
multiple destinations, or both, based on the needs of individual
members of the group, rather than the group as a whole. For
example, demand response service that takes all of the members of a
group home on an annual excursion to a baseball game. Some
sponsored trips carried out as part of a Coordinated Human Services
Transportation Plan, such as trips for Head Start, assisted living
centers, or sheltered workshops may even be provided on an
exclusive basis where clients of a particular agency cannot be
mixed with members of the general public or clients of other
agencies for safety or other reasons specific to the needs of the
human service clients.
(17) Q: Is it charter if a demand response transit service
carries a group of individuals with disabilities from a single
origin to a single destination on a regular basis?
A: No. Daily subscription trips between a group living facility
for persons with developmental disabilities to a sheltered workshop
where the individuals work, or weekly trips from the group home to
a recreation center is “special transportation” and not considered
charter service. These trips are regular and continuous and do not
meet the definition of charter.
(18) Q: If a third party requests charter service for the
exclusive use of a bus or van, but the transit agency provides the
service free of charge, is it charter?
A: No. The definition of charter service under 49 CFR Section
604.3(c) (1), requires a negotiated price, which implies an
exchange of money. Thus, free service does not meet the negotiated
price requirement. Transit agencies should note, however, that a
negotiated price could be the regular fixed route fare or when a
third party indirectly pays for the regular fare.
(19) Q: If a transit agency accepts a subsidy for providing
shuttle service for an entire baseball season, is that charter?
A: Yes. Even though there are many baseball games over several
months, the service is still to an event or function on an
irregular basis or for a limited duration for which a third party
pays in whole or in part. In order to provide the service, a
transit agency must first provide notice to registered charter
(20) Q: If a transit agency contracts with a third party to
provide free shuttle service during football games for persons with
disabilities, is that charter?
A: Yes. Even though the service is for persons with
disabilities, the transit agency receives payment from a third
party for an event or function that occurs on an irregular basis or
for a limited duration. In order for a transit agency to provide
the service, it must provide notice to the list of registered
charter providers first.
(21) Q: What if a business park pays the transit agency to add
an additional stop on its fixed route to include the business park,
is that charter?
A: No. The service is not to an event or function and it does
not occur on an irregular basis or for a limited duration.
(22) Q: What if a university pays the transit agency to expand
its regular fixed route to include stops on the campus, is that
A: No. The service is not to an event or function and it does
not occur on an irregular basis or for a limited duration.
(23) Q: What if a university pays the transit agency to provide
shuttle service that does not connect to the transit agency's
regular routes, is that charter?
A: Yes. The service is provided at the request of a third party,
the university, for the exclusive use of a bus or van by the
university students and faculty for a negotiated price.
(24) Q: What if the university pays the transit agency to
provide shuttle service to football games and graduation, is that
A: Yes. The service is to an event or function that occurs on an
irregular basis or for a limited duration. As such, in order to
provide the service, a transit agency must provide notice to the
list of registered charter providers.
(25) Q: What happens if a transit agency does not have fixed
route service to determine whether the fare charged is a premium
A: A transit agency should compare the proposed fare to what it
might charge for a similar trip under a demand response
(26) Q: How can a transit agency tell if the fare is
A: The transit agency should analyze its regular fares to
determine whether the fare charged is higher than its regular fare
for comparable services. For example, if the transit agency
proposes to provide an express shuttle service to football games,
it should look at the regular fares charged for express shuttles of
similar distance elsewhere in the transit system. In addition, the
service may be charter if the transit agency charges a lower fare
or no fare because of a third party subsidy.
(27) Q: What if a transit agency charges a customer an up front
special event fare that includes the outbound and inbound trips, is
that a premium fare?
A: It depends. If the transit agency charges the outbound and
inbound fares up front, but many customers don't travel both
directions, then the fare may be premium. This would not be true
generally for park and ride lots, where the customer parks his or
her car, and, would most likely use transit to return to the same
lot. Under that scenario, the transit agency may collect the
regular outbound and inbound fare up front.
(28) Q: What if a transit agency wishes to create a special pass
for an event or function on an irregular basis or for a limited
duration that allows a customer to ride the transit system several
times for the duration of the event, is that charter?
A: It depends. If the special pass costs more than the fare for
a reasonable number of expected individual trips during the event,
then the special pass represents a premium fare. FTA will also
consider whether a third party provides a subsidy for the
(29) Q: Is it a third party subsidy if a third party collects
the regular fixed route fare for the transit agency?
A. Generally no. If the service provided is not at the request
of a third party for the exclusive use of a bus or van, then a
third party collecting the fare would not qualify the service as
charter. But, a transit agency has to consider carefully whether
the service is at the request of an event planner. For example, a
group offers to make “passes” for its organization and then later
work out the payment to the transit agency. The transit agency can
only collect the regular fare for each passenger.
(30) Q: If the transit agency is part of the local government
and an agency within the local government pays for service to an
event or function of limited duration or that occurs on an
irregular basis, is that charter?
A: Yes. Since the agency pays for the charter service, whether
by direct payment or transfer of funds through internal local
government accounts, it represents a third party payment for
charter service. Thus, the service would meet the definition of
charter service under 49 CFR Section 604.3(c) (1).
(31) Q: What if an organization requests and pays for service
through an in-kind payment such as paying for a new bus shelter or
providing advertising, is that charter?
A: Yes. The service is provided at the request of a third party
for a negotiated price, which would be the cost of a new bus
shelter or advertising. The key here is the direct payment for
service to an event or function. For instance, advertising that
appears on buses for regular service does not make it charter.
(32) Q: Under the definition of “Government Officials,” does the
government official have to currently hold an office in
A: Yes. In order to take advantage of the Government Official
exception, the individual must hold currently a government position
that is elected or appointed through a political process.
(33) Q: Does a university qualify as a QHSO?
A: No. Most universities do not have a mission of serving the
needs of the elderly, persons with disabilities, or low income
(34) Q: Do the Boy Scouts of America qualify as a QHSO?
A: No. The Boy Scouts of America's mission is not to serve the
needs of the elderly, persons with disabilities, or low income
(35) Q: What qualifies as indirect financial assistance?
A: The inclusion of “indirect” financial assistance as part of
the definition of “recipient” covers “subrecipients.” In other
words, “subrecipients” are subject to the charter regulation. FTA
modified the definition of recipient in the final rule to clarify
(c) Exceptions (49 CFR Subpart B)
(36) Q: In order to take advantage of the Government Officials
exception, does a transit agency have to transport only elected or
appointed government officials?
A: No, but there has to be at least one elected or appointed
government official on the trip.
(37) Q: If a transit agency provides notice regarding a season's
worth of service and some of the service will occur in less than 30
days, does a registered charter provider have to respond within 72
hours or 14 days?
A: A transit agency should provide as much notice as possible
for service that occurs over several months. Thus, a transit agency
should provide notice to registered charter providers more than 30
days in advance of the service, which would give registered charter
provider 14 days to respond to the notice. Under pressure to begin
the service sooner, the transit agency could provide a separate
notice for only that portion of the service occurring in less than
(38) Q: Does a transit agency have to contact registered charter
providers in order to petition the Administrator for an event of
regional or national significance?
A: Yes. A petition for an event of regional or national
significance must demonstrate that not only has the public transit
agency contacted registered charter providers, but also demonstrate
how the transit agency will include registered charter providers in
providing the service to the event of regional or national
(39) Q: Where does a transit agency have to file its
A: A transit agency must file the petition with the ombudsman at
[email protected]t.gov. FTA will file all
petitions in the Petitions to the Administrator docket
(FTA-2007-0022) at http://www.regulations.gov.
(40) Q: What qualifies as a unique and time sensitive event?
A: In order to petition the Administrator for a discretionary
exception, a public transit agency must demonstrate that the event
is unique or that circumstances are such that there is not enough
time to check with registered charter providers. Events that occur
on an annual basis are generally not considered unique or time
(41) Q: Is there any particular format for quarterly reports for
A: No. The report must contain the information required by the
regulations and clearly identify the exception under which the
transit agency performed the service.
(42) Q: May a transit agency lease its vehicles to one
registered charter provider if there is another registered charter
provider that can perform all of the requested service with private
A: No. A transit agency may not lease its vehicles to one
registered charter provider when there is another registered
charter provider that can perform all of the requested service. In
that case, the transit vehicles would enable the first registered
charter provider to charge less for the service than the second
registered charter provider that uses all private charter
(43) Q: Where do I submit my reports?
A: FTA has adapted its electronic grants making system, TEAM, to
include charter rule reporting. Grantees should file the required
reports through TEAM. These reports will be available to the public
through FTA's charter bus service Web page at:
State Departments of Transportation are responsible for filing
charter reports on behalf of its subrecipients that do not have
access to TEAM.
(d) Registration and Notification (49 CFR Subpart C)
(44) Q: May a private provider register to receive notice of
charter service requests from all 50 States?
A: Yes. A private provider may register to receive notice from
all 50 States; however, a private provider should only register for
those states for which it can realistically originate service.
(45) Q: May a registered charter provider select which portions
of the service it would like to provide?
A: No. A registered charter provider may not “cherry pick” the
service described in the notice. In other words, if the e-mail
notification describes service for an entire football season, then
a registered charter provider that responds to the notice
indicating it can provide only a couple of weekends of service
would be non-responsive to the e-mail notice. Public transit
agencies may, however, include several individual charter events in
the e-mail notification. Under those circumstances, a registered
charter provider may select from those individual events to provide
(46) Q: May a transit agency include information on “special
requests” from the customer in the notice to registered charter
A: No. A transit agency must strictly follow the requirements of
49 CFR Section 604.14, otherwise the notice is void. A transit
agency may, however, provide a generalized statement such as
“Please do not respond to this notice if you are not interested or
cannot perform the service in its entirety.”
(47) Q: What happens if a transit agency sends out a notice
regarding charter service, but later decides to perform the service
free of charge and without a third party subsidy?
A: If a transit agency believes it may receive the authority to
provide the service free of charge, with no third party subsidy,
then it should send out a new e-mail notice stating that it intends
to provide the service free of charge.
(48) Q: What happens if a registered charter provider initially
indicates interest in providing the service described in a notice,
but then later is unable to perform the service?
A: If the registered charter provider acts in good faith by
providing reasonable notice to the transit agency of its changed
circumstances, and that registered charter provider was the only
one to respond to the notice, then the transit agency may step back
in and provide the service.
(49) Q: What happens if a registered charter provider indicates
interest in providing the service, but then does not contact the
A: A transit agency may step back in and provide the service if
the registered charter provider was the only one to respond
affirmatively to the notice.
(50) Q: What happens if a registered charter provider indicates
interest in providing the service, contacts the customer, and then
fails to provide a price quote to the customer?
A: If the requested service is 14 days or less away, a transit
agency may step back in and provide the service if the registered
charter provider was the only one to respond affirmatively to the
notice upon filing a complaint with FTA to remove the registered
charter provider from the FTA Charter Registration Web site. If the
complaint of “bad faith” negotiations is not sustained by FTA, the
transit agency may face a penalty, as determined by FTA. If the
requested service is more than 14 days away, and the transit agency
desires to step back in, then upon filing a complaint alleging “bad
faith” negotiations that is sustained by FTA, the transit agency
may step back in.
(51) Q: What happens if a transit agency entered into a contract
to perform charter service before the effective date of the final
A: If the service described in the contract occurs after the
effective date of the final rule, the service must be in
conformance with the new charter regulation.
(52) Q: What if the service described in the notice requires the
use of park and ride lots owned by the transit agency?
A: If the transit agency received Federal funds for those park
and ride lots, then the transit agency should allow a registered
charter provider to use those lots upon a showing of an acceptable
incidental use (the transit agency retains satisfactory continuing
control over the park and ride lot and the use does not interfere
with the provision of public transportation) and if the registered
charter provider signs an appropriate use and indemnification
(53) Q: What if the registered charter provider does not provide
quality charter service to the customer?
A: If a registered charter provider does not provide service to
the satisfaction of the customer, the customer may pursue a civil
action against the registered charter provider in a court of law.
If the registered charter provider also demonstrated bad faith or
fraud, it can be removed from the FTA Charter Registration Web
(e) Complaint & Investigation Process
(54) Q: May a trade association or other operators that are
unable to provide requested charter service have the right to file
a complaint against the transit agency?
A: Yes. A registered charter operator or its duly authorized
representative, which can include a trade association, may file a
complaint under section 604.26(a). Under the new rule, a private
charter operator that is not registered with FTA's charter
registration Web site may not file a complaint.
(55) Q: Is there a time limit for making complaints?
A: Yes. Complaints must be filed within 90 days of the alleged
unauthorized charter service.
(56) Q: Are there examples of the likely remedies FTA may impose
for a violation of the charter service regulations?
A: Yes. Appendix D contains a matrix of likely remedies that FTA
may impose for a violation of the charter service regulations.
(57) Q: When a complaint is filed, who is responsible for
arbitration or litigation costs?
A: FTA will pay for the presiding official and the facility for
the hearing, if necessary. Each party involved in the litigation is
responsible for its own litigation costs.
(58) Q: What affirmative defenses might be available in the
A: An affirmative defense to a complaint could state the
applicability of one of the exceptions such as 49 CFR Section
604.6, which states that the service that was provided was within
the allowable 80 hours of government official service.
(59) Q: What can a transit agency do if it believes that a
registered charter provider is not bargaining in good faith with a
A: If a transit agency believes that a registered charter
provider is not bargaining in good faith with the customer, the
transit agency may file a complaint to remove the registered
charter provider from FTA's Charter Registration Web site.
(60) Q: Does a registered charter provider have to charge the
same fare or rate as a public transit agency?
A: No. A registered charter provider is not under an obligation
to charge the same fare or rate as public transit agency. A
registered charter provider, however, must charge commercially
(61) Q: What actions can a private charter operator take when it
becomes aware of a transit agency's plan to engage in charter
service just before the date of the charter?
A: As soon as a registered charter provider becomes aware of an
upcoming charter event that it was not contacted about, then it
should request an advisory opinion and cease and desist order. If
the service has already occurred, then the registered charter
provider may file a complaint.
(62) Q: When a registered charter provider indicates that there
are no privately owned vehicles available for lease, must the
public transit agency investigate independently whether the
representation by the registered charter provider is accurate?
A: No. The public transit agency is not required to investigate
independently whether the registered charter provider's
representation is accurate unless there is reason to suspect that
the registered charter provider is committing fraud. Rather, the
public transit agency need only confirm that the number of vehicles
owned by all registered charter providers in the geographic service
area is consistent with the registered charter provider's
(63) Q: How will FTA determine the remedy for a violation of the
A: Remedies will be based upon the facts of the situation,
including but not limited to, the extent of deviation from the
regulations and the economic benefit from providing the charter
service. See section 604.47 and Appendix D for more details.
(64) Q: Can multiple violations in a single finding stemming
from a single complaint constitute a pattern of violations?
A: Yes. A pattern of violations is defined as 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.
While a single complaint may contain several allegations, the
complaint must allege more than a single event that included
unauthorized charter service in order to establish a pattern of
(65) Q: If a grantee operates assets that are locally funded are
such assets subject to the charter regulations?
A: It depends. If a recipient receives FTA funds for operating
assistance or stores its vehicles in a FTA-funded facility or
receives indirect FTA assistance, then the charter regulations
apply. The fact that the vehicle was locally funded does not make
the recipient exempt from the charter regulations. If both
operating and capital funds are locally supplied, then the vehicle
is not subject to the charter service regulations.
(66) Q: What can a public transit agency do if there is a time
sensitive event, such as a presidential inauguration, for which the
transit agency does not have time to consult with all the private
charter operators in its area?
A: 49 Section 604.11 provides a process to petition the FTA
Administrator for permission to provide service for a unique and
time sensitive event. A presidential inauguration, however, is not
a good example of a unique and time sensitive event. A presidential
inauguration is an event with substantial advance planning and a
transit agency should have time to contact private operators. If
the inauguration also includes ancillary events, the public transit
agency should refer the customer to the registration list.
(67) Q: Are body-on-van-chassis vehicles classified as buses or
vans under the charter regulation?
A: Body-on-van-chassis vehicles are treated as vans under the
(68) Q: When a new operator registers, may recipients continue
under existing contractual agreements for charter service?
A: Yes. If the contract was signed before the new private
operator registered, the arrangement can continue for up to 90
days. During that 90 day period, however, the public transit agency
must enter into an agreement with the new registrant. If not, the
transit agency must terminate the existing agreement for all
registered charter providers.
(69) Q: Must a public transit agency continue to serve as the
lead for events of regional or national significance, if after
consultation with all registered charter providers, registered
charter providers have enough vehicles to provide all of the
service to the event?
A. No. If after consultation with registered charter providers,
there is no need for the public transit vehicles, then the public
transit agency may decline to serve as the lead and allow the
registered charter providers to work directly with event
organizers. Alternatively, the public transit entity may retain the
lead and continue to coordinate with event organizers and
registered charter providers.
(70) Q: What happens if a customer specifically requests a
trolley from a transit agency and there are no registered charter
providers that have a trolley?
A: FTA views trolleys as buses. Thus, all the privately owned
buses must be engaged in service and unavailable before a transit
agency may lease its trolley. Alternatively, the transit agency
could enter into an agreement with all registered charter providers
in its geographic service area to allow it to provide trolley
(71) Q: How does a transit agency enter into an agreement with
all registered charter providers in its geographic service
A: A public transit agency should send an email notice to all
registered charter providers of its intent to provide charter
service. A registered charter provider must respond to the email
notice either affirmatively or negatively. The transit agency
should also indicate in the email notification that failure to
respond to the email notice results in concurrence with the
(72) Q: Can a registered charter provider rescind its
affirmative response to an email notification?
A: Yes. If after further consideration or a change in
circumstances for the registered charter provider, a registered
charter provider may notify the customer and the transit agency
that it is no longer interested in providing the requested charter
service. At that point, the transit agency may make the decision to
step back in to provide the service.
(73) Q: What happens after a registered charter provider submits
a quote for charter services to a customer? Does the transit agency
have to review the quote?
A: Once a registered charter provider responds affirmatively to
an email notification and provides the customer a commercially
reasonable quote, then the transit agency may not step back in to
perform the service. A transit agency is not responsible for
reviewing the quote submitted by a registered charter provider. FTA
recommends that a registered charter provider include in the quote
an expiration date for the offer.
[73 FR 44931, Aug. 1, 2008]