[Federal Register Volume 90, Number 124 (Tuesday, July 1, 2025)]
[Rules and Regulations]
[Pages 28223-28227]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-12142]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

49 CFR Part 605

[Docket No. FTA-2025-0004]
RIN 2132-AB53


School Bus Operations

AGENCY:  Federal Transit Administration (FTA), Department of 
Transportation (DOT).

ACTION:  Final rule.

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SUMMARY:  The Federal Transit Administration (FTA) is revising its 
regulations governing school bus operations to update outdated 
information and harmonize the regulation with current statutory 
language and existing practice.

DATES: This final rule is effective on July 1, 2025.

FOR FURTHER INFORMATION CONTACT: Heather Ueyama, Office of Chief 
Counsel, (202) 366-7374 or [email protected]. Office hours are 
from 8:30 a.m. to 5 p.m., Monday through Friday, except Federal 
holidays.

SUPPLEMENTARY INFORMATION:

I. Purpose and Summary of Regulatory Action

    This final rule amends FTA's regulations regarding school bus 
operations at 49 CFR part 605. On April 1, 1976, FTA (then the Urban 
Mass Transportation Administration) initially adopted the regulations 
at part 605 (41 FR 14127). The regulations implemented section 109(a) 
of the National Mass Transportation Assistance Act of 1974 (NMTAA) 
(Pub. L. 93-503) and section 164(b) of the Federal-Aid Highway Act of 
1973 (Pub. L. 93-87). These provisions directed an applicant for 
Federal financial assistance for the construction or operation of 
facilities and equipment for use in providing public mass 
transportation service must agree not to engage in school bus 
operations, exclusively for the transportation of students and school 
personnel, in competition with private school bus operators, unless 
certain exceptions were met.
    Since the regulations were first codified in 1976, the statute 
governing the prohibition on school bus service has been superseded by 
49 U.S.C. 5323(f). However, FTA has not updated part 605 since it was 
initially adopted. Accordingly, FTA is revising part 605 to remove 
outdated provisions and bring the regulation into alignment with 
current statutes. These revisions will increase clarity for the public 
by removing obsolete language from the Code of Federal Regulations and 
reflect FTA's existing practice.

II. Section-by-Section Analysis

Authority Citations

    FTA has revised the authority citations to reflect that that the 
statute regarding school bus operations has been superseded by 49 
U.S.C. 5323(f). FTA also revised other authority citations for 
accuracy.

Subpart A--General

Section 605.1 Purpose
    FTA revised this section to remove and replace obsolete language. 
This section provided a lengthy discussion of section 109(a) of NMTAA 
and section 164(b) of the Federal Aid Highway Act of 1973, which have 
been superseded by 49 U.S.C. 5323(f). FTA replaced this with current 
statutory language at 49 U.S.C. 5323(f).
Section 605.2 Scope
    FTA revised this section to align with the current governing 
statute at 49 U.S.C. 5323(f). The section now states that the 
regulations apply to all recipients of Federal financial assistance 
under 49 U.S.C. chapter 53 for a capital project, or to operate public 
transportation equipment or a public transportation facility.
605.3 Definitions
    FTA has revised this section throughout to reflect that the Federal 
Mass Transit Act of 1964 been superseded by 49 U.S.C. chapter 53. FTA 
made minor, non-substantive revisions throughout the section for 
clarity.
    In addition, FTA revised ``mass transportation'' and ``mass 
transit'' to ``public transportation'' throughout this section to 
remove outdated terminology. Similarly, it revised the term ``grantee'' 
to ``recipient,'' and replaced the term ``applicant,'' with 
``recipient'' throughout the regulation. These are non-substantive 
changes that reflect existing law and FTA's existing practice. FTA made 
corresponding revisions throughout part 605 to reflect these 
terminology changes.
    FTA removed several definitions from this section. It removed the 
definition for the term ``Act,'' as FTA has replaced all instances of 
this term throughout part 605 with relevant citations. It removed the 
terms ``Grant contract,'' and ``Government,'' as these terms are no 
longer used in the regulations and therefore are unnecessary. It 
removed the term ``Agreement'' because the meaning of this term is 
self-evident. It removed the term ``urban area'' because it is no 
longer used in 49 U.S.C. 5323(f).
    FTA updated the definition of ``incidental'' to remove the 
reference to the Opinion of the Comptroller General from December 7, 
1966. FTA included this reference as contextual information to explain 
how it adopted the definition pursuant to the opinion letter. However, 
the definition of ``incidental'' is found in numerous FTA Circulars, 
and readers can understand its meaning without referencing the letter. 
Furthermore, this

[[Page 28224]]

letter references outdated terminology that FTA seeks to revise in this 
action, such as ``mass transportation,'' and relies on the now-
superseded Federal Mass Transit Act of 1964. It therefore is 
unnecessary and superfluous to cite this letter in the definition. FTA 
updated the term ``reasonable rates'' to clarify and simplify the 
definition.
605.4 Public Hearing Requirement
    FTA is removing and reserving this section. This section reflected 
the requirement in section 3(d) of the Federal Mass Transit Act of 1964 
that imposed a public hearing requirement on recipients to take public 
comment, for every application for federal assistance, on the economic, 
social, or environmental effects of their requested Federal financial 
assistance. This hearing requirement is obsolete and has been 
superseded by procedures under the National Environmental Policy Act 
(NEPA) and FTA's planning requirements.

Subpart B--School Bus Agreements

605.10 Purpose
    FTA is removing and reserving this section. The purpose of the 
subpart is self-evident, and it is unnecessary to include this section 
in the regulation.
605.11 Exemptions
    FTA revised this section to align the list of exemptions with 
current statutory language in 49 U.S.C. 5323(f). It also deleted 
paragraph (c), as these grandfathering provisions are obsolete.
605.12 Use of Project Equipment
    FTA made minor, non-substantive edits in this section for clarity 
and to update outdated terminology.
605.13 Tripper Service
    FTA revised this section to cross-reference section 605.12. This 
edit will not change any existing requirements and will increase 
clarity for readers.
605.14 Agreement
    FTA updated this section to reflect FTA's current practice. The 
agreement FTA makes with recipients regarding school bus operations is 
executed via FTA's annual Certifications and Assurances for Grants and 
Cooperative Agreements (Certifications and Assurances). Specifically, 
recipients must certify to Category 4 (Private Sector Protections) in 
the Certifications and Assurances. This change has no substantive 
impact on the status quo and merely conforms the regulation to existing 
requirements.
605.15 Content of Agreement
    FTA is removing and reserving this section. As discussed above, 
FTA's existing practice is to execute agreements with recipients 
regarding school bus operations through the annual Certifications and 
Assurances. The provisions in 605.15, which discuss requirements for 
agreements, are obsolete and do not reflect existing requirements. FTA 
does not rely on them and removing them from the regulation will have 
no substantive impact on the status quo.
605.16 Notice
    FTA amended this section to remove outdated information and reflect 
existing practice. As noted above, FTA's practice is for recipients to 
certify compliance with the school bus requirements through the annual 
Certifications and Assurances. They do not submit this information in 
their applications. Accordingly, FTA has removed the reference to the 
recipient's application from this section and revised the term 
``statement'' to ``certification.'' FTA also removed the word ``urban'' 
because this term is no longer used in the statute.
    FTA has removed paragraph (a)(2) and (b)(3), as the requirement to 
publish a statement in a newspaper of general circulation originated in 
section 3(d) of the Federal Mass Transit Act of 1964, which is obsolete 
and no longer in effect. FTA made other minor revisions for clarity and 
to reflect the revised numbering structure of the section.
    FTA added paragraph (a)(4), which states the required notice must 
include a statement that private school bus operators may file written 
comments on a recipient's proposed or existing school bus operations. 
This reflects existing requirements and is not a change to the status 
quo.
605.17 Certification In Lieu of Notice
    FTA edited this section to update outdated terminology and remove a 
reference to the recipient's application. As discussed above, these 
edits conform the regulation to FTA's existing practice, which is for 
recipients to make an agreement with FTA regarding school bus 
operations through the annual Certifications and Assurances. FTA also 
removed language regarding publishing notice in a newspaper of general 
circulation, as this reflects an obsolete provision from the Federal 
Mass Transit Act of 1964, which is no longer in effect. These edits do 
not impact existing requirements and merely harmonize the regulation 
with the status quo.
605.18 Comments by Private School Bus Operators
    FTA is removing and reserving this section. FTA has moved the 
requirements regarding comments by private school bus operators to 
section 605.16. This aligns the regulation with current practice. Under 
current FTA practice, a recipient must inform school bus operators that 
they may file written comments on the recipient's proposed or existing 
school bus operations via the notice required in section 605.16.
605.19 Approval of School Bus Operations
    FTA is removing and reserving this section, as it is outdated and 
no longer reflects FTA's existing practice.

Subpart C--Modification of Prior Agreements and Amendment of 
Applications for Assistance

    Subpart C is removed and reserved due to sections 605.20 and 605.21 
being removed.
605.20 Modification of Prior Agreements
    FTA is removing this section, which discusses agreements that were 
in effect prior to the initial adoption of part 605 in 1976. These 
agreements are now handled through FTA's Certification and Assurances. 
It therefore is unnecessary to retain this section in the regulation.
605.21 Amendment of Applications for Assistance
    FTA is removing this section, which discussed applications upon 
which public hearings have been held pursuant to section 3(d) if the 
Federal Mass Transit Act of 1964. This statutory provision is obsolete 
and no longer in effect. Accordingly, FTA is deleting this section as 
outdated.

Subpart D--Complaint Procedures and Remedies

605.30 Filing a Complaint
    FTA revised this section to reflect that the current governing 
statute is 49 U.S.C. 5323(f). It also made minor, non-substantive 
revisions for clarity.
605.31 Notification to the Respondent
    FTA made minor, non-substantive revisions to this section for 
clarity and to update outdated terminology.
605.32 Accumulation of Evidentiary Material
    FTA made minor, non-substantive revisions to this section for 
clarity.

[[Page 28225]]

605.33 Adjudication
    FTA made minor, non-substantive edits to paragraph (b) for clarity.
605.34 Remedy Where There Has Been a Violation of the Agreement
    FTA revised this section to reflect that the current governing 
statute is 49 U.S.C. 5323(f). It also made minor, non-substantive 
revisions for clarity and to update outdated terminology.
605.35 Judicial Review
    FTA made minor, non-substantive revisions to this section to update 
outdated terminology.
Appendix A to Part 605
    FTA is removing Appendix A to part 605 in its entirety. The 
appendix contained an Opinion of the Comptroller General from December 
7, 1966. FTA included this document as contextual information to 
explain its reasoning for adopting the definition of ``incidental'' in 
section 605.3. The definition of ``incidental'' is provided in several 
recent FTA Circulars, and it is not necessary to include the opinion in 
the regulation for a reader to understand the definition. The opinion 
letter also is publicly available through the Government Accountability 
Office's website, so it is unnecessary to reproduce it in part 605. 
Furthermore, this letter references outdated terminology that FTA seeks 
to revise in this action, such as ``mass transportation,'' and relies 
on the now-superseded Federal Mass Transit Act of 1964. Accordingly, 
FTA is removing the letter from the regulation as superfluous and 
unnecessary.

III. Good Cause for Dispensing With Notice and Comment and Delayed 
Effective Date

    Under the Administrative Procedure Act (APA) (5 U.S.C. 553(b)(B)), 
an agency may dispense with notice and comment if it finds, for good 
cause, that they are impracticable, unnecessary, or contrary to the 
public interest. Additionally, 5 U.S.C. 553(d) provides that an agency 
may waive the 30-day delayed effective date upon finding of good cause. 
This rule revises part 605 to remove outdated information regarding 
FTA's requirements regarding school bus operations. These changes have 
no substantive impact on the status quo and merely bring the regulation 
up to date since it was last updated nearly fifty years ago. 
Furthermore, the statutory references underlying part 605 have been 
superseded by 49 U.S.C. 5323(f). Seeking comment on obsolete provisions 
is unnecessary, and FTA would not be able to make any substantive 
changes in response to comments received on these provisions. For the 
same reasons, FTA finds that a delayed effective date is unnecessary. 
Accordingly, FTA finds good cause under 5 U.S.C. 553(b)(B) and (d)(3) 
to waive notice and opportunity for comment and a delayed effective 
date.

IV. Regulatory Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review) and Executive 
Order 13563 (Improving Regulation and Regulatory Review)

    Executive Order (E.O.) 12866 (``Regulatory Planning and Review''), 
as supplemented by E.O. 13563 (``Improving Regulation and Regulatory 
Review''), directs Federal agencies to assess the benefits and costs of 
regulations and to select regulatory approaches that maximize net 
benefits when possible. It also directs the Office of Management and 
Budget (OMB) to review significant regulatory actions, including 
regulations with annual economic effects of $100 million or more. OMB 
has determined the rule is not significant within the meaning of E.O. 
12866 and has not reviewed the rule under that order.
    The rule removes outdated statutory references from FTA school bus 
operations regulations. Although the changes do not affect requirements 
for regulated entities, improving the accuracy of the references may 
reduce the time needed for regulated entities to understand the 
statutory requirements, resulting in minor cost savings.

Executive Order 14192 (Deregulatory Action)

    E.O. 14192 (``Unleashing Prosperity Through Deregulation'') 
requires that for ``each new [E.O. 14192 regulatory action] issued, at 
least ten prior regulations be identified for elimination.'' 
Implementation Guidance for E.O. 14192, issued by OMB (Memorandum M-25-
20, March 25, 2025) defines an E.O. 14192 deregulatory action as ``an 
action that has been finalized and has total costs less than zero.'' 
This proposed rule, if finalized, is expected to have total costs less 
than zero, and therefore is expected to be an E.O. 14192 deregulatory 
action.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601 et seq.) 
requires Federal agencies to assess the impact of a regulation on small 
entities unless the agency determines that the regulation is not 
expected to have a significant economic impact on a substantial number 
of small entities.
    FTA has determined that the rule will not have a significant effect 
on a substantial number of small entities. The rule removes outdated 
statutory references but does not change requirements for regulated 
entities.

Unfunded Mandates Reform Act of 1995

    FTA has determined that this final rule does not impose unfunded 
mandates, as defined by the Unfunded Mandates Reform Act of 1995 (Pub. 
L. 104-4). This final rule does not include a Federal mandate that may 
result in the expenditure by State, local, and Tribal governments, in 
the aggregate, or by the private sector of $100 million or more in 1995 
dollars (adjusted for inflation) in any one year.

Executive Order 13132 (Federalism Assessment)

    E.O. 13132 requires agencies to assure meaningful and timely input 
by State and local officials in the development of regulatory policies 
that may have a substantial direct effect on the States, on the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. This action has been analyzed in accordance with the 
principles and criteria contained in E.O. 13132 and FTA determined this 
action will not have a substantial direct effect or sufficient 
federalism implications on the States. FTA also determined this action 
will not preempt any State law or regulation or affect the States' 
ability to discharge traditional State governmental functions.

Executive Order 12372 (Intergovernmental Review)

    The regulations implementing E.O. 12372 regarding intergovernmental 
consultation on Federal programs and activities do not apply to this 
rulemaking.

Paperwork Reduction Act

    FTA has analyzed this rule under the Paperwork Reduction Act and it 
does not impose additional information collection requirements for the 
purposes of the Act above and beyond existing information collection 
clearances from OMB.

National Environmental Policy Act

    FTA has analyzed this rule for the purposes of the National 
Environmental Policy Act of 1969 (NEPA). In accordance with 42 U.S.C. 
4336 and DOT NEPA Order 5610.1C, FTA has determined that this rule is 
categorically excluded pursuant to 23 CFR 771.118(c)(4), ``[p]lanning 
and

[[Page 28226]]

administrative activities that do not involve or lead directly to 
construction, such as: [p]romulgation of rules, regulations, and 
directives.'' This rulemaking is not anticipated to result in any 
environmental impacts, and there are no unusual or extraordinary 
circumstances present in connection with this rulemaking.

Executive Order 13175 (Tribal Consultation)

    FTA has analyzed this rule under E.O. 13175 (``Consultation and 
Coordination with Indian Tribal Governments''), and it will not have 
substantial direct effects on one or more Indian tribes; will not 
impose substantial direct compliance costs on Indian tribal 
governments; and will not preempt tribal laws. Therefore, a tribal 
summary impact statement is not required.

Executive Order 13211 (Energy Effects)

    FTA has analyzed this action under E.O. 13211, Actions Concerning 
Regulations That Significantly Affect Energy Supply, Distribution, or 
Use. FTA has determined this action is not a significant energy action 
under that order and is not likely to have a significant adverse effect 
on the supply, distribution, or use of energy. Therefore, a Statement 
of Energy Effects is not required.

Privacy Act

    Anyone can search the electronic form of all comments received into 
any of our dockets by the name of the individual submitting the comment 
(or signing the comment, if submitted on behalf of an association, 
business, labor union, etc.). You may review DOT's complete Privacy Act 
Statement in the Federal Register at 65 FR 19477 (April 11, 2000).

Regulation Identifier Number

    A Regulation Identifier Number (RIN) is assigned to each regulatory 
action listed in the Unified Agenda of Federal Regulations. The 
Regulatory Information Service Center publishes the Unified Agenda in 
April and October of each year. The RIN contained in the heading of 
this document can be used to cross-reference this final rule with the 
Unified Agenda.

List of Subjects in 49 CFR Part 605

    Administrative practice and procedure, Buses, Mass transportation.

0
In consideration of the foregoing, and under the authority of 49 U.S.C. 
5323(f) and 5334, and the delegation of authority at 49 CFR 1.91, the 
Federal Transit Administration revises and republishes 49 CFR part 605 
to read as follows:

PART 605--SCHOOL BUS OPERATIONS

Subpart A--General
Sec.
605.1 Purpose.
605.2 Scope.
605.3 Definitions.
605.4 [Reserved]
Subpart B--School Bus Agreements
605.10 [Reserved]
605.11 Exemptions.
605.12 Use of project equipment.
605.13 Tripper service.
605.14 Agreement.
605.15 [Reserved]
605.16 Notice.
605.17 Certification in lieu of notice.
605.18-605.19 [Reserved]
Subpart C--[Reserved]
Subpart D--Complaint Procedures and Remedies
605.30 Filing a complaint.
605.31 Notification to the respondent.
605.32 Accumulation of evidentiary material.
605.33 Adjudication.
605.34 Remedy where there has been a violation of the agreement.
605.35 Judicial review.
Subpart E--Reporting and Records
605.40 Reports and information.

    Authority:  49 U.S.C. 5323(f); 49 U.S.C. 5334; and 49 CFR 1.91.

Subpart A--General


Sec.  605.1  Purpose.

    The purpose of this part is to prescribe policies and procedures to 
implement the prohibition in 49 U.S.C. 5323(f) regarding the provision 
of school bus transportation service that exclusively transports 
students and school personnel in competition with a private school bus 
operator.


Sec.  605.2  Scope.

    These regulations apply to all recipients of Federal financial 
assistance under 49 U.S.C. chapter 53 for a capital project, or to 
operate public transportation equipment or a public transportation 
facility.


Sec.  605.3  Definitions.

    (a) Except as otherwise provided, terms defined in 49 U.S.C. 
chapter 53 are used in this part as so defined.
    (b) For purposes of this part--
    Administrator means the Federal Transit Administrator or his or her 
designee.
    Adequate transportation means transportation for students and 
school personnel which the Administrator determines conforms to 
applicable safety laws; is on time; poses a minimum of discipline 
problems; is not subject to fluctuating rates; and is operated 
efficiently and in harmony with state educational goals and programs.
    Assistance means Federal financial assistance for the purchase of 
buses and the construction or operation of facilities and equipment for 
use in providing public transportation services under 49 U.S.C. chapter 
53, but does not include research, development and demonstration 
projects.
    Incidental means the transportation of school students, personnel 
and equipment in charter bus operations during off peak hours which 
does not interfere with regularly scheduled service to the public.
    Interested party means an individual, partnership, corporation, 
association, or public or private organization that has a financial 
interest which is adversely affected by the act or acts of a recipient 
with respect to school bus operations.
    Reasonable Rates means rates found by the Administrator to be fair 
and equitable taking into consideration the conditions in the local 
surrounding area.
    Recipient means a recipient of assistance under 49 U.S.C. chapter 
53.
    School bus operations means transportation by bus exclusively for 
school students, personnel and equipment in Type I and Type II school 
vehicles as defined in Highway Safety Program Guideline No. 17.
    Tripper service means regularly scheduled public transportation 
service which is open to the public, and which is designed or modified 
to accommodate the needs of school students and personnel, using 
various fare collections or subsidy systems. Buses used in tripper 
service must be clearly marked as open to the public and may not carry 
designations such as ``school bus'' or ``school special.'' These buses 
may stop only at a recipient or operator's regular service stop. All 
routes traveled by tripper buses must be within a recipient's or 
operator's regular route service as indicated in their published route 
schedules.


Sec.  605.4  [Reserved]

Subpart B--School Bus Agreements


Sec.  605.10  [Reserved]


Sec.  605.11  Exemptions.

    A recipient may not engage in school bus operations in competition 
with private school bus operators unless it demonstrates to the 
satisfaction of the Administrator that:

[[Page 28227]]

    (a) It operates a school system in the area to be served and also 
operates a separate and exclusive school bus program for that school 
system; and
    (b) Private school bus operators are unable to provide adequate 
transportation that complies with applicable safety standards at 
reasonable rates.


Sec.  605.12  Use of project equipment.

    No recipient or operator of project equipment shall engage in 
school bus operations using buses, facilities or equipment funded under 
49 U.S.C. chapter 53. A recipient or operator may, however, use such 
buses, facilities and equipment for the transportation of school 
students, personnel and equipment in incidental charter bus operations. 
Such use of project equipment is subject to part 604 of this title.


Sec.  605.13  Tripper service.

    The prohibition in Sec.  605.12 shall not apply to tripper service.


Sec.  605.14  Agreement.

    Except as provided in Sec.  605.11, no assistance shall be provided 
under 49 U.S.C. chapter 53 unless the recipient has executed the 
Private Sector Protections category of the current annual 
Certifications and Assurances confirming that the recipient will not 
engage in school bus operations exclusively for the transportation of 
students and school personnel in competition with private school bus 
operators.


Sec.  605.15  [Reserved]


Sec.  605.16  Notice.

    (a) Each recipient who engages or wishes to engage in school bus 
operations shall include a certification that it has provided written 
notice to all private school bus operators operating in the area to be 
served of its application for assistance and its proposed or existing 
school bus operations.
    (b) The notice required by paragraph (a) of this section shall 
include the following information:
    (1) A description of the area to be served by the recipient.
    (2) An estimation of the number of each type of bus which will be 
employed on the proposed school bus operations, and the number of 
weekdays those buses will be available for school bus operations.
    (3) A statement setting forth reasons the recipient feels it should 
be allowed to engage in school bus operations under Sec.  605.11.
    (4) A statement that private school bus operators may file written 
comments on a recipient's proposed or existing school bus operations.
    (c) Copies of the application for assistance and notice required by 
paragraph (a) shall be available for inspection during the regular 
business hours at the office of the recipient.


Sec.  605.17  Certification in lieu of notice.

    If there are no private school bus operators operating in the 
recipient's service area, the recipient may so certify in lieu of 
meeting the requirements of Sec.  605.16.


Sec.  Sec.  605.18-605.19  [Reserved]

Subpart C--[Reserved]

Subpart D--Complaint Procedures and Remedies


Sec.  605.30  Filing a complaint.

    Any interested party may file a complaint with the Administrator 
alleging a violation of 49 U.S.C. 5323(f) or the terms of an agreement 
under Sec.  605.14 (``Complaint''). A complaint must be in writing, 
must specify in detail the action claimed to violate the agreement, and 
must be accompanied by sufficient evidence to enable the Administrator 
to make a preliminary determination as to whether there is probable 
cause that a violation has taken place.


Sec.  605.31  Notification to the respondent.

    On receipt of any complaint under Sec.  605.30, or on the 
Administrator's own motion if at any time he or she shall have reason 
to believe that a violation may have occurred, the Administrator will 
provide written notification to the recipient (``Respondent'') that a 
violation has probably occurred. The Administrator will inform the 
respondent of the conduct which constitutes a probable violation of the 
agreement.


Sec.  605.32  Accumulation of evidentiary material.

    The Administrator will allow the respondent not more than 30 days 
to show cause, by submission of evidence, why no violation occurred. A 
like period shall be allowed to the complainant, if any, during which 
the complainant may submit evidence to rebut the evidence offered by 
the respondent. The Administrator may undertake such further 
investigation, as deemed necessary, including the holding of an 
evidentiary hearing or hearings.


Sec.  605.33  Adjudication.

    (a) After reviewing the results of such investigation, including 
hearing transcripts, if any, and all evidence submitted by the parties, 
the Administrator will make a written determination as to whether the 
respondent has engaged in school bus operations in violation of the 
terms of the agreement.
    (b) If the Administrator determines that there has been a violation 
of the agreement, the Administrator will order remedial measures as 
deemed appropriate.
    (c) The determination by the Administrator will include an analysis 
and explanation of his or her findings.


Sec.  605.34  Remedy where there has been a violation of the agreement.

    If the Administrator determines, pursuant to this subpart, that 
there has been a violation of the terms of the agreement or 49 U.S.C. 
5323(f)(2), he or she may bar a recipient or operator from the receipt 
of further financial assistance for public transportation.


Sec.  605.35  Judicial review.

    The determination of the Administrator pursuant to this subpart 
shall be final and conclusive on all parties, but shall be subject to 
judicial review pursuant to 5 U.S.C. 701-706.

Subpart E--Reporting and Records


Sec.  605.40  Reports and information.

    The Administrator may order any recipient or operator for the 
recipient, to file special or separate reports setting forth 
information relating to any transportation service rendered by such 
recipient or operator, in addition to any other reports required by 
this part.

    Issued in Washington, DC, under authority delegated in 49 CFR 
1.91.
Tariq Bokhari,
Acting Administrator.
[FR Doc. 2025-12142 Filed 6-27-25; 4:15 pm]
BILLING CODE 4910-57-P