ORLANDO, Fla. Even though the nine-month-old revamped federal charter rule was supposed to end confusion about public transit agencies providing charter bus service, confusion still reigns.

And, judging by the questions raised and the issues discussed at an education session at UMA Motorcoach Expo, much of the confusion is with private bus operators.

A panel on transit agency relations attempted to sort out specific issues for attendees and provide accurate information about the rule that went into effect April 30.

The rule limits public transit agencies ability to perform charter work, instructs them on what to do when they get a request for charter service, and gives the Federal Transit Administration authority to rule on alleged violations.

"The charter regulation is designed to strike a balance between profitable and community service work," said Linda Lasley, FTA assistant chief counsel for legislation and regulation, and one of the architects of the revised rule. "The FTA is often in the middle of the negotiations, and its not a place we like to be in," she said.

Private bus operators must register online with the FTA to receive e-mails from transit authorities about charter work they have been contacted about or are interested in performing.

Lasley stressed that its critical for private operators to contact a potential customer right way after learning about a charter job from a public transit agency. "It shows due diligence in the FTAs eyes," she said.

Ken Presley, UMA vice president of industry relations, said some operators mistakenly think that when they are contacted by a public transit agency about a charter job that the transit agency wants to contract out the work to the private operator. Thats not whats going on.

The e-mail from the transit authority is informing the private operator that the work is available and the transit agency may perform it if no private operator responds to the notice. That makes it critically important to respond to the e-mails, said Presley.

Lasley noted that transit authorities are under no obligation to tell the potential charter customer that an e-mail is being sent to private operators, informing them about the charter work.

"You might have a surprised (potential) customer" when you call them, she said.

Also, transit authorities are under no obligation to tell operators about a potential job if the authority is not interested.

Both situations can cause resentment among private operators, but they just have to live with it. Thats the way the process works.

Another point to remember is that transit authorities cannot negotiate for or on behalf of the potential charter customer, or require private operators to follow a specific agreement, such as a certain price, a certain number of buses, or that all buses have wheelchair lifts.

In response to questions, Lasley said a subsidy paid by the sponsor of an event or a fare above the normal fixed rate charged by a transit agency qualifies the service as a charter.

Free service, without a subsidy, is not a charter. Payment for a bus shelter, for example, qualifies the job as a charter.

And, as long as a transit authority is following the rule, it can operate a "charter department" and advertise. But it must follow the rule and give first crack at all charter jobs to private operators.

Service to senior, low-income and disabled citizens can be an exception to the charter service rule. In some cases charitable events dont qualify under the rule. Exceptions must be reported to the FTA quarterly, according to Lasley.

Key elements of the revised charter rule tighten the definition of a charter and spell out the issuance of a "cease-and-desist order" by the FTA, halting a public transit agency from providing charter service.

"Before (the revised rule was adopted), if they committed a violation, nothing happened," said Presley. "Now they can lose funding."