Charter services may be provided with 5307, 5310, 5311, and 5339 federally funded programs if it is for program purposes or demand responsive service for the aging, disabled or low-income individuals. Providing charter services not allowed under the charter rule exceptions is a local policy matter and subject to Federal procedures and regulations.
Unfair Competition: FTA’s Charter Bus Service Rule protects private‐charter operators from unauthorized competition from FTA‐funded recipients. Any recipient of FTA Federal funds should review 49 CFR 604 before agreeing to proceed with any charter operations.
Vehicle-Operating Subcontractors: If the transit system has subcontractors operating FTA‐funded vehicles as part of the transit service, the subcontractor is covered by the FTA Charter Rule in the same manner as the transit system.
Exemptions: Recipients of 5310 and 5311 funds may have exemptions based on the decision tree included in Attachment 1302‐1.
- The service is for official government business, which can include non‐transit purposes and does not exceed 80 hours.
- The service is provided for a qualified Human Service Organization that provides human services programs for aging, disabled or low-income individuals.
- Equipment and drivers may be leased under certain conditions involving the private operator contracted to provide a charter service.
- No registered charter provider responds to a notice within 72 hours or 14 days depending on the time of the request before the event.
- All registered charter providers within the transit system's geographic service area have an agreement to allow the system to provide the charter service.
- An exception may be requested from the FTA Administrator for events of regional or national significance. Regional applies to a portion of the United States, not a portion of the State of North Carolina. Requests for charter services for local fairs, festivals, or other events must go thru the FTA notification process to registered private providers.
OPSTATS Reporting: Charter trips are considered “incidental service.”
Reporting: Federal reporting requirements for charter service will be enforced by Integrated Mobility Division (IMD) and submitted to FTA.
Required Documents and Policies:
- Subrecipients should have a charter service policy that describes any service restrictions or limitations, after hours safety procedures, and cost of service details etc., if they choose to provide charter service.