WASHINGTON -- The private bus industry achieved its most significant legislative gains in more than 20 years last week when President Bush signed the $286.4 billion federal highway and public transportation reauthorization bill.

The massive legislation contains nearly two dozen key provisions that will impact the industry -- and every operator in it -- for years to come.

It is unquestionably the most far-reaching legislation since deregulation of motor carriers a generation ago. Among other things, the bill:

o Significantly alters the federal charter service rules that apply to public transit agencies

o Requires churches and other nonprofits to have insurance on their buses just like private, for-profit operators

o Revamps the medical registry program

o Gives the private sector bus industry full participation in public transit planning

o Extends Federal Motor Carrier Safety Regulations to all interstate 15-passenger van operators

o Provides axle-weight exemption for private motorcoaches through 2009

o Provides tens of millions of dollars to pay for intermodal terminals

o Extends 13(c) labor protections for six years

o Does away with the Single State Registration System

"There's an incredible amount of good stuff in there," said Victor Parra, president and CEO of the United Motorcoach Association. "We won a bunch."

Becky Bentson Weber, managing director of a Washington lobbying firm that represents the National School Transportation Association, said that "overall, the bill is a victory for the private school bus industry with many advances made for the private sector in planning and provision of public transit services."

And the American Bus Association noted the legislation "includes a long list of financial support and positive changes for the motorcoach industry."

But while Congress adopted a score of legislative priorities that had been advocated by the private bus industry, there were a handful of disappointments.

The most significant is a provision that requires a negotiated rulemaking to determine if public transit agencies should be allowed to provide charter bus service for local government units and private nonprofit agencies.

That issue was the focus of months of negotiations between the American Public Transportation Association, which represents hundreds of public transit agencies, and the Coalition of Private Transportation Associations, an ad hoc group formed last year to push private-sector ground transportation initiatives on Capitol Hill and to negotiate the charter service issue with APTA.

The coalition is composed of representatives from UMA, ABA, NSTA, International Motorcoach Group, Trailways, California Bus Association and nearly a dozen other national, regional and state groups that represent private bus, shuttle, taxicab and limousine operators.

The protracted negotiations with APTA failed to produce a concrete agreement on how much charter service, if any, public transit agencies should be allowed to provide to local governments and nonprofit organizations. APTA negotiators took the position that transit agencies should be allowed to provide extensive charter service to these groups.

The best the Coalition of Private Transportation Associations could come up with in its talks with APTA was the idea of a negotiated rulemaking. Language calling for the rulemaking was inserted into the highway bill just days before it was passed by Congress.

Even though they agreed to it, the negotiated rulemaking provision is causing considerable consternation among top motorcoach industry executives. They worry that the rulemaking process could be full of pitfalls and landmines. "This certainly remains a dangerous situation in which APTA is very likely to end up with some charter authority," said David Brown, chairman of UMA.

It's expected that members of the Coalition of Private Transportation Associations, including UMA and ABA, will send out strong appeals to their members in the months ahead requesting examples of charter rules violations by public transit agencies. This information will be invaluable during the rulemaking.

"This (negotiated rulemaking) could be a long and difficult process . . .," said Parra. "The support of the entire industry to help arm us with data to support our positions through the negotiating process will be vital."

Here is a section-by-section look at those elements of the highway bill with the biggest impact on the private bus industry, particularly the motorcoach sector:

Charter Bus Rules
The new law provides for flexible penalties when transit agencies violate either federal charter bus or school bus rules. The previous law allowed only for full withholding of a transit agency's federal funding. The new law will allow withholding of a portion of a transit agency's so-called formula apportionment, making it more likely that the penalty will be invoked.

Upon receiving a complaint about a violation, the new law says the Secretary of Transportation "shall" investigate and decide whether a violation has occurred. If secretary decides a violation has occurred, the secretary shall correct the violation. The law it replaces says the secretary "may" correct the violation.

The negotiated rulemaking will consider other potential changes and improvements to the federal charter rules.

Private Enterprise Participation
This provision of federal transit law was modified to state that public transit authorities must encourage the participation of the private sector to the maximum extent feasible "as determined by local policies, criteria and decision-making."

"This is a big one as well," said Parra.

Planning Provisions
Related to the Private Enterprise Participation provision, this change repeals section 5305(e) which discriminated against private operators in the planning process. The bill rewrites the entire planning section and removes 5305(e) so the private sector has full participation in the transit planning process.

"Unfortunately, private transportation providers have been largely excluded from the public transportation planning table," said Parra. "Decisions as to how best to serve the transportation needs of a given community are being made almost exclusively by transit operators, even though we have the capacity to fill in as needed. Now, we'll be at the table and hopefully part of the solutions as needs are identified and met."

13(c) Labor Protection
The new law codifies what is known as the "Las Vegas" decision, which was a victory for the private sector. That U.S. Department of Labor ruling found that in a change of contractor situation, section 13(C) of federal labor law does not require the employees be guaranteed jobs with the new contractor, or that their labor contract be carried over to the new contractor. That is, the incoming contractor need not hire the workforce of the predecessor or honor its labor agreement.

The exception would be if there was an acquisition of a mass transit system, which is financed with federal funds.

Employees could still file 13(c) claims if layoffs occur in the transition from one contractor to another, but to prevail on the claims they need to show that their dismissal or displacement was caused by a federal project.

"This is important," said Parra, "because private contractors are reluctant to take over a contract if they are required to inherit existing, very costly labor contracts. Now, that won't necessarily be the case."

Two new transit programs, Transit in the Parks and the New Freedom Initiative will not require 13(c) labor protection agreements - another victory for the private sector.

Insurance coverage for nonprofits
Churches and other nonprofits will have to insure their buses and passengers just like private operators.

"This important provision helps level the playing field," said Parra. "This is a particularly important issue in the South and Southeast, where many religious organizations essentially operate tour and charter services."

Unified carrier registration system
The current Single State Registration System, which allows companies to obtain operating authority in the 38 participating states by registering in any one state, is to be done away with. Replacing it will be a new registration system that will cover all 50 states.

"This is something the United Motorcoach Association has been been fighting for for years, and we finally got it," said Parra. "There are two important issues here: First, there's no push back from the states because the change keeps them whole by bringing private carriers into the registration process. In other words, state revenues stay pretty much at the same levels.

"But, because the cost burden, if you will, is being spread among a larger base, motorcoach operators will pay less than under the current SSRS program," said Parra.

Medical registry program
Medical providers who examine drivers will need to be certified that they are qualified and understand the requirements for driver physical fitness as outlined in the Federal Motor Carrier Safety Regulations.

"This is a major victory," said Parra. "This is . . . a direct result of the horrific New Orleans crash on Mother's Day 1999 (when 22 people were killed). The FMCSA will maintain a current registry of medical examiners qualified to examine drivers."

Passenger Van Safety
The bill contains a provision that says Federal Motor Carrier Safety Regulations that apply to interstate operations of commercial motor vehicles designed to transport between 9 and 15 passengers (including the driver) shall apply to all interstate operations of such carriers regardless of the distance traveled.

Axle-Weight Exemption
Over-the-road buses now have the same axle-weight exemption as transit buses.

Data Quality
This provision requires the USDOT to report to Congress within one year on how it intends to revise and improve its safety fitness rating program, including linking FMCSA data with state commercial vehicle registration and licensing systems.

"This has been the big rap against DOT," said Parra. "They make decisions to improve safety based on poor data. This will assure that when an operator comes up for state licensing and tag renewal, the safety fitness of the carrier will be reviewed at the same time, thus enabling states to deny renewal or hold-up operating authority for bad operators."

Bad Apples
The new law allows the USDOT to shut down carriers if a company officer has engaged in a pattern or practice of avoiding compliance or concealing noncompliance. Also, operating authority can be denied to operators with a history of unsafe operations.

Diabetic Drivers
Qualifications are eased for insulin-dependent diabetic drivers who are seeking a waiver to hold a commercial drivers license.

Electronic Records Check
Allows operators to electronically check the safety records of prospective drivers.

Financial Responsibility
Minimum financial responsibility standards are to be set for all private operators.

Destination Inspections
Provisions in the law are designed to discourage enforcement officers from conducting roadside inspections of buses. Instead, it encourages much safer destination inspections.

Wheelchair Lift Funding
A total of $39 million in federal funds for wheelchair lifts during the life of the law.

Intermodal Terminal Projects
Funded at $35 million a year for five years, including the intercity bus portion of such projects.

Private Sector Access to Funding
For the Transit in the Parks Program, private contractors can provide that service under normal contracting rules.

Rural Funding
A total of $239 million in federal money for the rural over-the-road bus program.

Transit Competition
New language designed to prevent transit agencies from linking together to perform regional intercity bus services.

Not everything about the new law was favored by members of the Coalition of Private Transportation Associations. Two aspects disappointed various coalition members:

· Continuing to allow a limited number of tolls on existing interstate highways.

· A provision (402 Highway Safety Grant) requiring states to have a program to discourage use of 15-passenger vans for transportation of school children was not included.

Finally, the trucking industry and the FMCSA sought to have the new hours-of-service rules adopted last year for truckers codified in the highway law. The move was designed to block a federal appeals court from requiring the FMCSA to revise the hours rules for truckers -- again.

Congress failed to act on the trucking industry and FMCSA request. That means that barring another legislative extension, the FMCSA will be forced to issue revised hours-of-service rules for truckers. The agency's temporary reprieve from the court order runs out Sept. 30.

This sword hanging over the FMCSA and the trucking industry has truckers extremely worried, and there may be reason for the motorcoach industry to be concerned as well. Because the hours-of-service rulemaking process is such a can of worms, no one knows what will happen when it is opened again and if the coach industry might get dragged into the process.