FTA’s New Charter RulesPresented by:
Ohio Department of Transportation/Office of TransitPresenter:
Rich Garrity, Senior Associate
RLS & Associates, Inc.
April 24, 2008
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Session Objectives
1. Define Key Terms and Applicability1. Define Key Terms and Applicability
2. Review Exceptions to Rule 2. Review Exceptions to Rule
3. Review New Registration Process3. Review New Registration Process
4. Understand Challenges and Complaints 4. Understand Challenges and Complaints
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Target Audience
This Session is Designed for: Rural Transit Agencies Human Service Agencies Private Charter Operators Specialized Providers That May
Enter the Rural Public Program
Key Definitions and Applicability
Module 1
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Effective Date
Final Rule Issued on January 14, 2008
There are Significant Changes Rule Goes Into Effect on April
30, 2008
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Significant Changes
New Definition of “Charter” Categorical Exemption for Section
5311 if Service is for “Program Purposes”
Other New Exemptions New Exceptions Registration Process Replaces
Transit System Solicitation of “Willing and Able” Operators
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Definition: Charter Service
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
Or…
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Definition: Charter Service Transportation Provided By a
Recipient To The Public for Events or Functions That Occur on An Irregular Basis or For a Limited Duration and: A Premium Fare Is Charged That Is
Greater Than The Usual or Customary Fixed Route Fare; or
The Service Is Paid For In Whole Or In Part By A Third Party
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Definition: Charter Service Key Characteristics of Charter Service
A Third Party Pays the Transit Provider a Negotiated Price For the Group
Any Fares Charged To Individual Members of the Group Are Collected By a Third Party
The Service Is Not Part of the Transit Provider’s Regularly Scheduled Service, or Is Offered For a Limited Period Of Time;
A Third Party Determines the Origin and Destination and Trip Schedule
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Definition: Charter Service
Service Provided to Individuals in Demand Response Mode is Not Charter Service Under the New Regs
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Applicability
New Rule Applies to Recipients of FTA Financial Assistance Also Applies to Subrecipients and
Third Party Contractors That Utilize FTA Funded Equipment
Charter Certification Still Required
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Exemptions from the Regulations
There are Some Clear Exemptions From the Regulations
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Exemptions from the Regulations: Transportation of Employees Transportation of Employees of
the Transit System To/From Transit Facilities Within the Service Area Other Transit System Employees,
Bidders or Contractors, or Other Governmental Officials Fall Under this Exemption
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Exemptions From the Regulations: Emergency Preparedness Transportation of Employees
of the Transit System To/From Emergency Preparedness Planning and Operation
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Exemptions from the Regulations: Rural Training
Nonurbanized Areas Transit Systems May Transport Their Own Employees, Other Transit System Employees, Transit Management Officials, and Transit Contractors and Bidders To/From Transit Training Outside Its Geographic Service Area
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Exemptions from the Regulations: Private Sector Receiving FTA Funds If a Private Charter Operator
Receives FTA Funding, Directly or Indirectly, Is Not Subject to the Rules on Its Non-FTA Funded Activities
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Exemptions from the Regulations: National, State, and Local Emergencies Service Provided in Direct Response
to an Emergency Declared By the President, a Governor, or a Mayor
Service Provided in Direct Response to an Emergency Requiring Immediate Action Prior to a Formal Declaration
Exemption Applies for 45 Days Beyond 45 Days, Permission Must be
Granted by the FTA Administrator
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Exemptions From the Regulations: Program Exemptions The Following FTA Programs are
Exempt From the Regulations Section 5310 (Elderly and Persons
with Disabilities Program) Section 5311 (Nonurbanized Area
Program) Section 5316 (JARC Program) Section 5317 (New Freedom Program)
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Exemptions From the Regulations: Program Exemptions This Exemption Only Applies if
the System is Transporting Groups for “Program Purposes”
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Exemptions From the Regulations: Program Exemptions Program Purposes Means
Transportation That Serves the Needs of Either Human Service Agencies or Targeted Populations (Elderly, Individuals With Disabilities, and/or Low Income Individuals)
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Exemptions From the Regulations: Program Exemptions Program Purposes Does Not
Include Exclusive Service For Other Groups Formed for Purposes Unrelated to the Special Needs of the Targeted Populations
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FTA Ombudsman
Crystal FrederickOmbudsman for Charter ServicesFederal Transit Administration, 1200 New Jersey Ave., SE. Room E54–410
Washington, DC 20590
(202) 366–4063
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Review FTA Questions and Responses
Exceptions to the Regulations
Module 2
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General If the Exemptions Listed in the
Previous Module Do Not Apply, Your Organization is Subject to the Charter Regulations
There are Also “Exceptions” to the Regulations
Many Exceptions are Continuations of Exceptions in the Former Rule
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Exceptions: Government Officials New Exception A Transit System May Provide
Charter Service to Government Officials for Official Governmental Business
Conditions Within Service Area Trip Does Not Generate Revenue Limited to 80 Hours Per Year
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Exceptions: Government Officials
Recordkeeping Required (See Appendix B of Guidebook)
Transit System May Petition FTA Administrator Seeking Permission to Exceed 80 Hours Petitions Get Posted to a New
Docket for Comment
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Exceptions: Qualified Human Service Organization (QHSO) New Concept
An Organization That Serves Persons Who Qualify For Human Service Program Funding (See Appendix A to the Regulation)
An Organization That Provides Human Services to Individuals with Disabilities Individuals with Low Income Individual with Advanced Age (Elderly)
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Exceptions: Qualified Human Service Organization (QHSO) A Human Service Agency is
Categorically Assumed to be a QHSO if it Receives Funding Under the Standard List of Federal Programs Found in Appendix A of the Regulation
If the Organization Does Not Receive Such Funding, Then it Must Register on a New FTA Website as a QHSO
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Exceptions: Qualified Human Service Organization (QHSO)
A Transit System May Provide Charter Service to a QHSO
Recordkeeping Requirements
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Exceptions: Leasing of Equipment/ Drivers A Transit System May Lease Its FTA
Funded Equipment and Provide Drivers to a Registered Charter Provider
Conditions Provider is Registered Provider Owns and Operates Buses and Vans
in a Charter Business Provider Received a Request that Exceeds Its
Capacity Provider Has Exhausted All Available
Vehicles From Other Registered Private Charter Operators
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Exceptions: Leasing of Equipment/ Drivers Recordkeeping Requirements Similar Information But Also
Includes System Retention of the Private Charter Operator’s Documentation That the Four Conditions are Met
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Exceptions: Agreements with Registered Private Charter Operators A Transit System May Negotiate with
Registered Providers To Seek Permission to Provide Certain Charter Trips
Agreements Must be Reached With All Providers
If a New Provider Registers, the Transit System May Continue to Operator Under the Current Agreements With Operators An Agreement Must be Reached with the
New Operator in 90 Days
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Exceptions: Agreements with Registered Private Charter Operators A Transit System May Negotiate with
Registered Providers To Seek Permission to Provide Certain Charter Trips
Agreements Must be Reached With All Providers
If a New Provider Registers, the Transit System May Continue to Operator Under the Current Agreements With Operators An Agreement Must be Reached with the
New Operator in 90 Days
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Exceptions: Petitions to the FTA Administrator A Transit System May Submit
Requests (Petitions) to the FTA Administrator to Provide Charter Service Under Three Scenarios Events of Regional or National
Significance Hardships (Nonurbanized Areas Only) Unique and Time Sensitive
Events (e.g., Funerals of Local, Regional, or General Public Interest
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Exceptions: Petitions to the FTA Administrator Petitions Are One-Time Events Petitions Must Indicate
Date and Description of the Event Type of Service Requested and the
Type of Equipment Anticipated Number of Charter
Service Hours Needed For the Event Anticipated Number of Vehicles and
Duration of The Event
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Exceptions: Petitions to the FTA Administrator National Events
Super Bowl Democratic National Convention Presidential Addresses
System Must Also Provide A Description of How Registered Charter Providers Were Consulted Will Be Utilized
System Must Certify That It Has Exhausted All of the Registered Charter Providers In Its Geographic Service Area
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Exceptions: Petitions to the FTA Administrator Hardships
Designed for Nonurbanized Areas Situations Where a Charter Operator
Would Impose Minimum Duration or Similar Charges That Would Make the Cost Prohibitive to the Chartering Party
This Exception Has Been Extended to Small Urbanized Areas (Under 200,000)
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Exceptions: No Response To Notice A Transit System Is Permitted to
Provide A Requested Charter Service If, After Providing Notice to All Registered Private Operators, There is No Response or Interest in Providing the Service Requests for Service Within 30 Days
Response From Operators Due in 72 Hours Requests for Service Beyond 30 Days
Response From Operators Due in 14 Calendar Days
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Exceptions: No Response To Notice Notices Must Follow Prescribed
Process Recordkeeping Requirements
(See Appendix B to the Guidebook)
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Recordkeeping New Electronic Reporting Requirement
Quarterly Submission Effective July 30, 2008 Reports Filed at FTA Website
All Charter Activity Records Retention Requirement: Three Years Electronic, But No Specific Format
Specified A Single Log May Suffice
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Recordkeeping If Any Charter Service Was
Provided in the Quarter, a Clear Statement Identifying Which Exception The System Relied Upon When It Provided the Charter Service Must be Submitted to FTA
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Review FTA Questions and Responses
FTA Registration Process
Module 3
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Registration Process
A New, Web-Based Registration Process Replaces the Old Requirement for a Transit System to Annually Solicit the Interest of Willing and Able Operators
Two Entities Register Private Charter Operators Qualified Human Service
Organizations
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Registration Home Page
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Private Charter Operator Registration
Website Address
http://www.fta.dot.gov/laws/leg_reg_179.html
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Private Charter Operator Registration
Website Options Register Amend a Previous Registration Search Private Charter Operators
Database Search Qualified Human Service
Organizations Database
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Private Charter Operator Registration
Self-Certification Process For Example, Proof of Insurance
is Not Required Civil and Criminal Penalties,
However, For Filing a False Registration
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Private Charter Operator Registration
Information Company Contact Information Federal and State Motor Carrier Numbers The Geographic Service Areas (Organized by
Public Transit Agencies) In Which the Private Charter Operator Intends to Provide Charter Service
The Number of Buses/Vans the Private Charter Operator Owns
A Certification Regarding Valid Insurance Statement Regarding Whether the Operator is W to
Provide Free or Reduced Rate Charter Service to Registered Qualified Human Service Organizations
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Private Charter Operator Registration
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Private Charter Operator Registration
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Private Charter Operator Registration
Challenges A Transit Agency Another Private Charter Operator Representatives of these
Organizations Challenges Filed Through a
Complaint Process
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Private Charter Operator Registration
Website Must Be Updated Whenever There is a Change, But No Less Frequently Than Once Every Two Years
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Qualified Human Service Organization (QHSO) Registration
A Human Service Agency That Receives Funding Under Any One of the Federal Programs Listed in Appendix A of the Regulation Does Not Have to Register
If the Agency Does Not Receive Such Funding, But Serves the Elderly, Persons with Disabilities or Persons with Low Income, They Should Register If They Need Charter Services from a Public Transit System
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Qualified Human Service Organization (QHSO) Registration Information
Agency Contact Information The Geographic Service Areas (Organized by
Public Transit Agencies) In Which the Agency Serves A Copy of the Most Recent Financial Statement Statement Indicating If the Agency is Organized as a
Section 501(c) (1),(3), (4), or (19) Corporation of the Internal Revenue Code
Statement Regarding Funding, Directly or Indirectly From a Federal or State Agency
A Statement Describing the Charter Service Required and How That Service is C With the Mission of the Agency
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Qualified Human Service Organization (QHSO) Registration
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Qualified Human Service Organization (QHSO) Registration
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Qualified Human Service Organization (QHSO) Registration
Challenges A Transit Agency Another Private Charter Operator Representatives of these
Organizations Challenges Filed Through a
Complaint Process
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Qualified Human Service Organization (QHSO) Registration
Website Must Be Updated Whenever There is a Change, But No Less Frequently Than Once Every Two Years
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How Public Transit Systems Use the Registration Database
If An Organization Qualifies as a QHSO, Then the Transit Agency, Upon Request to Provide a Charter Service, Should Verify the Agency’s QHSO Status on the Website
If Registered, Then the Transit Agency May Provide the Service Pursuant to the Exception Allowed Under 49 CFR part 604.7
Must Maintain Records
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How Public Transit Systems Use the Registration Database
Why Do We Need the Database? Section 5311 Systems Will Be Able to
Serve Qualified Human Service Organizations Under The Exemption in 49 CFR part 604.2(e)
Other FTA Recipients (e.g., Urban Formula Funds (Section 5307)) Will Use This Database
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Decision Tree, Part 1
Yes?
Transit System Receives FTA
Financial Assistance
No?
FTA Charter Regs Do Not Apply
Section 5310, 5311, 5316, or
5317?No?
Yes?
Program Purpose?
FTA Charter Regs Do Not Apply
Yes?
No?
Other Exemption Apply?*
Transport of Employees for Transit BusinessTransport of Employees for Emergency PreparednessTransport of Nonurbanized Area System Employees for TrainingNational, State or Local EmergenciesPrivate Operators that Receive FTA Funding on Non-FTA Activities
Yes?
FTA Charter Regs Do Not Apply
No?
Other Exemptions*
Next Page
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Decision Tree, Part 2
Yes?
No?
Service is Eligible Public
Transportation
Proposed Service Fit Within Any
Exception*No?
Government Officials
Send Notice to Registered
Private Charter Operators
Does the Proposed Service
Meet the Definition of
“Charter”
Qualified Human Service
Organizations
Leasing of Vehicles/Drivers
File E-Mail Notice with Registered
Charter Operators
Provide Service
Keep Required Records
Agreements with Registered Providers
Yes?
Private Operator Interest in Providing Service?
No?
Yes?
Public Transit Agency
Prohibited from Providing
Service, Even If Private Charter
Operators Do Not Reach Agreement with Requesting Party to Provide
the Charter
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Review FTA Questions and Responses
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Group Exercise Exercise – Can We Provide Charter
Service?
Review the Various Scenarios and Determine if The Transit Agency Can Provide the Requested Charter Service
Complaints and Enforcement
Module 4
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Overview New SAFETEA-LU Mandated
Enforcement Mechanisms
Registration Challenges Advisory Opinions Cease and Desist Orders Violation Complaints
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Registration Challenges – Private Operators Challenging a Private Charter
Operator Registration Required Information
State the name and address of each entity who is the subject of the complaint; and
A Concise Statement of Why the Private Charter Operator Should Not Be Listed
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Registration Challenges – Private Operators Filing a Complaint is Electronic
Process Filed to the Charter Service
Removal Complaint docket number FTA–2007– 0024 at:
http://www.regulations.gov Complaints Can Also Be Filed
on Paper
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Registration Challenges - QHSO Challenging a Qualified Human
Service Organization Required Information
State the name and address of each entity who is the subject of the complaint; and
A Concise Statement of Why the QHSO Should Not Be Listed
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Registration Challenges - QHSO Filing a Complaint is Electronic
Process Filed to the Charter Service
Removal Complaint docket number FTA–2007– 0024 at:
http://www.regulations.gov Complaints Can Also Be Filed
on Paper
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Registration Challenges - QHSO Certification Required by
Complainant Challenges Must be Filed Within 90
Days of the Complaining Party Discovering Facts That Merit Removal of the Registered Charter Provider from the FTA Charter Registration Website
Agency Response Due in 15 Days After Challenge
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Registration Challenges - FTA FTA Will Rule, Based on
Preponderance of Evidence Bad Faith Fraud Lapse of Insurance Lapse of Other Documentation Repetitive Filing of Unsubstantiated
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Registration Challenges - FTA FTA Will Rule Within 30 Days of
Filing of Challenge Response Permit Registrant to Remain on
List and Why Length of Time Off List if
Removed (Up to Three Years)
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Advisory Opinions A Written Statement Issued By
the FTA Chief Counsel Regarding Whether A Service Is Being Provided In Compliance Or Not In Compliance With FTA Charter Rules
A First Step That Establishes a Basis for Further Action, If Any
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Advisory Opinions Represent Formal Position of
FTA on Matter Advisory Opinions May be
Accompanied by Issuance of a “Cease and Desist” Order
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Advisory Opinions Requesting an Advisory Opinion
Statement of Facts Affirmation
Requests Filed Electronically Charter Service Advisory
Opinion/Cease and Desist Order docket number FTA–2007– 0023 at:
http://www.regulations.gov
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Cease and Desist Orders A Written Order Issued By FTA
Mandating That The Service In Question Provided By the Transit System Be Stopped Immediately
ODOT Will Treat Advisory Opinions and Cease and Desist Orders as Compliance Items
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Cease and Desist Orders Requests for Orders Must Contain:
A Description of the Need for the Order
A Detailed Description of the Lost Business Opportunity
A Description of How The Public Interest Will Be Served
A Detailed Description of the Efforts Made to Notify the Transit System of the Potential Violation
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Cease and Desist Orders – Transit System Response Response Required in Three
Business Days Point-by-Point Rebuttal Should
be Supplied
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Violation Complaints Formal Process
Private Operator Complaint Transit System Answer Private Operator Reply Transit System Rebuttal
Specified Timelines for Each Step in Process
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Violation Complaints
6/3 - 6/2320 Days
6/23 - 7/310 Days
5/4 - 6/330 Days
4/4 - 5/430 Days
1/5 - 4/490 Days
1/1/08 7/31/08
1/5/08Date of Alleged Violation
5/4/08FTA Notifies System
6/3/08Transit System Answer
6/23/08Charter Operator Reply
7/3/08Transit System Rebuttal
4/4/08Deadline for Filing Complaint
Complaint Answer Reply Rebuttal
Transit System Action Private Charter Operator Action FTA Action
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Violation Complaints FTA May Dismiss a Complaint
Outside FTA’s Jurisdiction Complaint Deemed Unwarranted Lack of Legal Standing of
Complainant Party
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Violation Complaints - Investigation FTA, If Merit is Found in the
Violation Complaint, Will Conduct Investigation
FTA May Seek Additional Facts from Both Parties
FTA May Initiate an Investigation Without a Formal Complaint
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Violation Complaints - Investigation FTA May Appoint a “Presiding
Officer” to Oversee the Complaint Investigation and to Conduct Formal Hearings on the Matter
Judicial Rights Accorded to Both Parties Legal Representation Right to Have a Hearing Right to Present Testimony
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Violation Complaints - Investigation Presiding Officer (PO) Submits
Findings and Recommendations to FTA Chief Counsel Within 110 Days of Referral
Requested Extensions May Delay Ruling
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Violation Complaints - Appeals A Party May Appeal the Chief
Counsel’s Decision by Filing Notice of Appeal Within 21 Days
FTA Administrator Rules Within 30 Days of Appeal
FTA Administrator Has Discretionary Authority to Review All Decisions
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Violation Complaints - Appeals If An Appeal Is Not Filed, the
Chief Counsel’s Decision Takes Effect as FTA’s Final Decision and Order 21 Days After the Date of the Chief Counsel’s Decision
Failure to File an Appeal Is Deemed a Waiver of Any Rights to Seek Judicial Review of the Chief Counsel’s Decision
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Violation Complaints - Remedies Violation Complaints, if
Substantiated, May Result in Serious Penalties Imposed on Transit System Bar Transit System From Receiving
Future FTA Financial Assistance Withholding of a Percentage of
FTA Financial Assistance Suspension/Debarment
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Additional Resources 49 CFR part 604 Appendix B to 49 CFR part 604
Basis for Removal From Charter Registration Website
Appendix B to 49 CFR part 604 Charter Service Questions and
Answers
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Additional Resources Transit Agency Fact Sheet
http://www.fta.dot.gov/documents/Fact_Sheet-
_Charter_Service_Final_Rule.ppt
Private Charter Operators Fact Sheethttp://www.fta.dot.gov/documents/
Charter_Final_Rule-Private_Operator_Fact_Sheet.ppt
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Review FTA Questions and Responses
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Adjourn
Good Luck in Using This Information at Your Own Transit Programs
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Presenter
Richard Garrity, Senior AssociateRLS & Associates, Inc.
3131 S. Dixie Highway, Suite 545Dayton, OH 45439
(937) 299-5007
Direct Line: (910) [email protected]