Section 41.22. Motor carrier passenger transportation services by municipal corporations or State instrumentalities—statement of policy

(a) General rule. As a general rule, passenger transportation services are not subject to Commission jurisdiction when provided by any of the following:

(1) State instrumentalities.

(2) Municipal authorities.

(3) Municipal corporations within their corporate limits. The geographic limitation applicable to municipal corporations will be satisfied as long as the passenger transportation service provided by a municipal corporation is restricted to residents of the municipality, regardless of whether the actual service is provided within the corporate limits of the municipality.

(b) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise:

Municipal authority—An authority created or organized by a municipality in accordance with the laws of the Commonwealth for the purpose of rendering service similar to that of a public utility.

Municipal corporation—The term as defined in 66 Pa.C.S. § 102 (relating to definitions).

Public transportation authority—An authority created or organized under the laws of the Commonwealth for the purpose of rendering public transportation service.

State instrumentality—

(i) The Commonwealth, its agencies, boards, offices, commissions, councils, departments, bureaus and authorities.

(ii) The term includes independent agencies of the Commonwealth and State affiliated entities such as the State System of Higher Education.

Substantial ongoing control—The act of setting or affirmatively approving the rates, routes, schedules, terms and conditions of service, and the monitoring and enforcement of a contractor’s compliance with them.

(c) Evidence of substantial ongoing control. Substantial ongoing control is evidenced through:

(1) The terms of a written contract between the third party and the contracting entity.

(2) A statute, regulation, ordinance or other provision of law that the third party contractor must comply with in the provision of the transportation services.

(3) Written audits or inspection reports of the contractor’s compliance with the contract and relevant provisions of law.

(d) Exemptions.

(1) State instrumentalities. Passenger transportation services provided by third parties under contract to State instrumentalities, and their subcontractors, are not subject to Commission jurisdiction when the following conditions are present:

(i) The State instrumentality’s enabling legislation does not expressly require the third party to obtain a certificate of public convenience from the Commission when providing the service.

(ii) The service is subject to substantial ongoing control by the State instrumentality as to the following:

(A) The rates charged to passengers for the service.

(B) The routes for the service.

(C) The schedule of the service.

(D) The terms and conditions of the service, including who is eligible to be a passenger.

(2) Municipal authorities. Passenger transportation services provided by third parties under contract to municipal authorities, and their subcontractors, are not subject to Commission jurisdiction when the following conditions are present:

(i) The service would be nonjurisdictional if provided by the municipal authority itself.

(ii) The service is subject to substantial ongoing control by the municipal authority as to the following:

(A) The rates charged to passengers for the service.

(B) The routes for the service.

(C) The schedule of the service.

(D) The terms and conditions of the service, including who is eligible to be a passenger.

(3) Municipal corporations. Passenger transportation service provided by third parties under contract to municipal corporations, and their subcontractors, are not subject to Commission jurisdiction when the following conditions are present:

(i) The service would be nonjurisdictional if provided by the municipal corporation itself.

(ii) The service is subject to substantial ongoing control by the municipal corporation as to the following:

(A) The rates charged to passengers for the service.

(B) The routes for the service.

(C) The schedule of the service.

(D) The terms and conditions of the service, including who is eligible to be a passenger.

(4) Public transportation authorities. When a public transportation authority’s enabling legislation exempts it from Commission jurisdiction, passenger transportation services provided by third parties under contract to the public transportation authority are not subject to the Commission’s jurisdiction when the following conditions are present:

(i) The public transportation authority’s enabling legislation expressly authorizes it to contract with third parties to provide passenger transportation services.

(ii) The service is subject to substantial ongoing control by the public transportation authority as to the following:

(A) The rates charged to passengers for the service.

(B) The routes for the service.

(C) The schedule of the service.

(D) The terms and conditions of the service, including who is eligible to be a passenger.

(5) Cooperative agreements. Passenger transportation services provided under a cooperative agreement between municipal corporations or authorities, which permit them to operate in each other’s geographic service areas, are not subject to Commission jurisdiction. Passenger transportation services provided by third parties under contract to the contracting municipal corporation or authority are not subject to Commission jurisdiction so long as the services are subject to the substantial ongoing control of the contracting municipal corporation or authority, or both, as to the following:

(i) The rates charged to passengers for the service.

(ii) The routes for the service.

(iii) The schedule of the service.

(iv) The terms and conditions of the service, including who is eligible to be a passenger.

The provisions of this § 41.22 adopted May 24, 2013, effective May 25, 2013, 43 Pa.B. 2852.