For years, ABA members have felt the pressure of transit agencies encroaching on their business. There have been reports of transits taking away charter business, in violation of federal laws, and, more recently there have been cases of transits linking up to provide regional intercity bus service. This is a money-losing proposition for private operators and, in our view, a poor use of tax dollars.

ABA recently worked to change the law that allows transits to get away with this. The new laws, included in new federal legislation, require the U.S. Department of Transportation (DOT) to both enforce the rules and impose a significant penalty on transits that break the law.

ABA recently worked to change the law that allows transits to get away with this. Now you need to put the remedy to work for your company. The new laws, included in new federal transportation legislation, SAFETEA-LU require DOT to both enforce the rules and impose a significant penalty on transits that break the law. But we need you to let us know and let the authorities know when you spot a violation. Write to Rick Schweitzer at ABA to seek advice on how to file a complaint or to share a complaint you may have already filed with the offending transit agency. Rick is the ABA General Counsel and is an established expert in this area having helped to negotiate the language that lead to the new law. He is a respected expert on the law and has represented numerous companies facing illegal competiton from transits.

The Law:

What Else and What Next?
The above legislation was enacted in August, 2005 but there is more to be done. First, the law must be promulgated in a rulemaking by the Federal Transit Administration (FTA). Also SAFETEA-Lu contains "report" language (report language conveys the sense/wishes of Congress but does not hold the power of law) which directs FTA to conduct a negotiated rulemaking on a number of industry priorities that may help to further strengthen the charter rules as well as one issue that, if not addressed properly, could create a loophole for transits to pursue more, traditionally private-sector business.

In a nutshell, the negotiated rulemaking (meaning stakeholder groups would be invited to participate in the rulemaking with the FTA) would consider the following issues: 1) Are there potential limited conditions under which public transit agencies can provide community-based charter services directly to local governments and private non-profit agencies that would not otherwise be served in a cost-effective manner by private operators? 2) How can the administration and enforcement of charter bus provisions be better communicated to the public, including use of internet technology? 3) How can the enforcement of violations of the charter bus regulations be improved? And 4) How can the charter complaint and administrative appeals process be improved. The first item was requested by the public transit agencies, the last three items were requested by ABA.

How can I apply the new rules to fight transit competiton?
If you can work out your issue with the transit agency in your area, do. If not, we need you to let us know and let the authorities know when you spot a violation. Especially, now, before the new rules are promulgated because it will help us build a record of violations and make a strong case for swift promulgation of tough rules. Email Rick Schweitzer at ABA to seek advice on how to file a complaint, to share a complaint you may have already filed with the offending transit agency, or, if you choose, to have him file a complaint on your behalf. In some cases, Rick has filed for carriers on behalf of ABA and in some cases he has filed on the carriers behalf. Rick is the ABA General Counsel and is an established expert in this area having helped to negotiate the language that lead to the new law. He is a respected expert on the law and has represented numerous companies facing illegal competition from transits.

Report Unfair Competition from Transit Agencies