AMERICAN BUS ASS'N, INC. v. Rogoff

717 F. Supp. 2d 73, 2010 U.S. Dist. LEXIS 56823, 2010 WL 2302364
CourtDistrict Court, District of Columbia
DecidedJune 9, 2010
DocketCivil Action 10-686 (ESH), 10-701(ESH)
StatusPublished
Cited by1 cases

This text of 717 F. Supp. 2d 73 (AMERICAN BUS ASS'N, INC. v. Rogoff) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMERICAN BUS ASS'N, INC. v. Rogoff, 717 F. Supp. 2d 73, 2010 U.S. Dist. LEXIS 56823, 2010 WL 2302364 (D.D.C. 2010).

Opinion

MEMORANDUM OPINION

ELLEN SEGAL HUVELLE, District Judge.

The above-captioned cases involve suits by charter bus trade associations against the Federal Transit Administration (“FTA” or “the agency”), a division of the Department of Transportation (“DOT”), and/or Peter M. Rogoff, the FTA Administrator. Because both plaintiffs allege identical constitutional violations of the First and Fifth Amendments and of the doctrine of separation of powers, the Court will address plaintiffs’ claims in one Memorandum Opinion.

At the heart of this dispute are the regulations in 49 C.F.R. Part 604, known as the “Charter Rule,” which was designed to effectuate the goal of 49 U.S.C. § 5323(d) of preventing local governmental authorities that receive federal transportation financial assistance from providing charter bus service if a private charter *76 operator is willing and able to provide such service. Plaintiffs request that the Court declare unconstitutional section 172 of the Consolidated Appropriations Act of 2010 (“Appropriations Act”), Pub. L. No. Ill— 117, § 172, 123 Stat. 3034, 3065-66 (Dec. 16, 2009), also known as the “Murray Amendment,” because it singles out Washington state’s King County Department of Transportation Metro Transit Division (“KCM”) as the sole federally funded transit agency against whom FTA may not enforce the Charter Rule, to the detriment of private charter operators in the King County area.

This matter initially came before the Court on plaintiffs’ applications for a preliminary injunction, but the Court subsequently consolidated the applications hearing with a trial on the merits, which was conducted on June 3, 2010. (See Order, May 14, 2010.) Based on the entire record, the arguments of counsel at the hearing on June 3, and the relevant law, and for the reasons discussed herein, the Court will grant judgment in favor of plaintiffs and issue the requested relief.

BACKGROUND

American Bus Association (“ABA”) and United Motorcoach Association (“UMA”), both organized as not-for-profit corporations, are national trade associations representing the charter bus industry. (ABA Compl. ¶ 3; UMA Compl. ¶ 3.) Plaintiffs’ members are private entities that provide passenger services, including charter bus service. A number of these members provide charter bus service between various states and within King County, Washington, which includes the city of Seattle. (ABA Compl. ¶ 4; UMA Compl. ¶ 4.) One such member of both ABA and UMA is Starline Luxury Coaches, a division of Transportation Demand Management, Inc., which does business as Starline Transportation (collectively “Starline”). (UMA’s Reply in Supp. of Mot. for Prelim. Inj. (“UMA Reply”), Ex. B (“Gillis Aff.”) ¶ 2; see also UMA’s Mem. of P. & A. in Supp. of Mot. for Prelim. Inj. (“UMA Mem.”), Ex. A (“Presley Aff.”) ¶ 9; ABA’s Reply in Supp. of Mot. for Prelim. Inj. (“ABA Reply”), Suppl. Aff. Of Peter Pantuso (“2nd Pantuso Aff.”) ¶ 5.) According to Starline’s chief executive officer, Gladys Gillis, Starline is “a woman-owned State of Washington Corporation engaged in transportation services in the Puget Sound Region, including charter service,” and it is “the largest privately owned and operated motorcoach carrier in Seattle.” (Gillis Aff. ¶¶ 2, 4.)

I. THE ADMINISTRATIVE SCHEME

Under the Federal Transit Act, 49 U.S.C. §§ 5301-5340, the FTA Administrator oversees the federal government’s funding of state and local public transportation systems throughout the United States, including charter services. See generally 49 U.S.C. § 5301(f); 49 C.F.R. §§ 1.45, 1.51 (delegating authority to the FTA Administrator). Under the regulatory scheme, “recipients” are entities receiving FTA-distributed federal funds, whether directly or indirectly as “subrecipients.” 49 C.F.R. § 604.3(r). “Charter service” is defined as including (1) “[tjransportation provided by a recipient at the request of a third party for the exclusive use of a bus or van for a negotiated price” and (2) “[transportation provided by a recipient to the public for events or functions that occur on an irregular basis or for a limited duration” and either a premium fare is charged or a third party pays in whole or in part for the service. Id. § 604.3(c). It is undisputed that at all relevant times, KCM has been a transit service operated by the State of Washington, that it has received financial assistance from the *77 FTA, and that it has provided “charter service” as defined by FTA regulations.

In order to ensure that state or local governments do not use federal funds “to foreclose a private operator from providing intercity charter bus service if the private operator can provide the service,” a recipient that is a governmental authority (or an entity operating public transportation on that authority’s behalf) cannot “provide charter bus transportation service outside the urban area in which it provides regularly scheduled public transportation service.” 49 U.S.C. § 5323(d)(1). This serves to “protect[ ] private charter operators from unauthorized competition from recipients of Federal financial assistance .... ” 49 C.F.R. § 604.1(a) (implementing 49 U.S.C. § 5323(d)).

The Charter Rule, 49 C.F.R. §§ 604.1-604.50, sets forth the comprehensive protections given to private charter operators. 1 One such protection is the requirement that recipients enter a “Charter Service Agreement” as a condition of receiving FTA funds for the acquisition or operation of public transportation equipment or facilities. See 49 C.F.R. § 604.4(a). Under that agreement,

[t]he recipient agrees that it, and each of its subrecipients, and third party contractors at any level who use FTA-funded vehicles, may provide charter service using equipment or facilities acquired with Federal assistance authorized under the Federal Transit Laws only in compliance with the regulations set out in 49 CFR 604, the terms and conditions of which are incorporated herein by reference.

Id. § 604.4(b); see also 49 U.S.C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

AMERICAN BUS ASS'N v. Rogoff
649 F.3d 734 (D.C. Circuit, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
717 F. Supp. 2d 73, 2010 U.S. Dist. LEXIS 56823, 2010 WL 2302364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-bus-assn-inc-v-rogoff-dcd-2010.