STARS Group Travel Process
FTA’s Charter Service Regulations (49 CFR Part 604), which implement 49 U.S.C. 5323(d), protect private charter operators from unauthorized competition from FTA grant recipients. In essence, the charter regulations were implemented to ensure that transit
agencies, subsidized with federal money, do not unfairly compete with privately owned bus companies. Under the charter rules, with limited exceptions, local transit agencies are restricted from operating chartered services.
Charter service means, but does not include demand response service to individuals:
• 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. The following features may be characteristic of charter service:
o A third party pays the transit provider a negotiated price for the group;
o Any fares charged to individual members of the group are collected by a third party;
o The service is not part of the transit provider’s regularly scheduled service, or is offered for a limited period of time; or
o A third party determines the origin and destination of the trip as well as scheduling; or
• Transportation provided by a recipient to the public for events or functions that occur on an irregular basis or for a limited duration and:
o A premium fare is charged that is greater than the usual or customary fixed route fare; or
o The service is paid for in whole or in part by a third party.
In general, public transit agencies are prohibited from providing charter service in certain circumstances. In accordance with these regulations, STARS Group Travel will be considered under the following circumstances:
1. When a deviation of regular bus routes can serve the transportation needs of a group, STARS will allow a deviation with at least 30-days advanced notice.
2. When the travel is requested by an official government entity or for governmental- related purposes
3. When travel is requested by a Qualified Human Service Organizations (QHSO) registered on the Charter Bus Service Registration Website (see references).
*** Please note that only QHSO’s that serve elderly, persons with disabilities, and low-income individuals will be able to utilize this exception. Please note that STARS does not determine if an organization meets the requirements as a “Qualified Human Services Organization.”
a. How can an organization qualify as a “Qualified Human Services Organization?” Visit https://ftawebprod.fta.dot.gov/CharterRegistration/Default.aspx to submit an application.
b. In order to receive charter service from a public transit agency in a particular geographic service area, an organization must be registered as a QHSO at least 60 days before the date of the requested charter service.
c. Can we apply to become a QHSO prior to needing charter service? Yes, and STARS recommends that agencies that foresee needing access to charter bus service complete an application now.
If none of the above provisions apply, STARS is not likely to be able to provide charter service. Contact the Director of External Affairs Director for more information:
Jamie Forbes
jforbes@saginaw-stars.com
References
Regulations: https://www.transit.dot.gov/regulations-and-guidance/access/charter-bus- service/charter-bus-service-registration
Charter Bus Service Registration: https://ftawebprod.fta.dot.gov/CharterRegistration/Default.aspx
