[Code of Federal Regulations]
[Title 49, Volume 6]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR605.15]

[Page 21-22]
 
                        TITLE 49--TRANSPORTATION
 
                             TRANSPORTATION
 
PART 605--SCHOOL BUS OPERATIONS--Table of Contents
 
                    Subpart B--School Bus Agreements
 
Sec. 605.15  Content of agreement.

    (a) Every grantee who is not authorized by the Administrator under 
Sec. 605.11 of this part to engage in school bus operations shall, as a 
condition of assistance, enter into a written agreement required by Sec. 
605.14 which shall contain the following provisions:
    (1) The grantee and any operator of project equipment agrees that it 
will not engage in school bus operations in competition with private 
school bus operators.
    (2) The grantee agrees that it will not engage in any practice which 
constitutes a means of avoiding the requirements of this agreement, part 
605 of the Federal Mass Transit Regulations, or section 164(b) of the 
Federal-Aid Highway Act of 1973 (49 U.S.C. 1602a(b)).
    (b) Every grantee who obtains authorization from the Administrator 
to engage in school bus operations under Sec. 605.11 of this part shall, 
as a condition of assistance, enter into a written agreement required by 
Sec. 605.14 of this part which contains the following provisions:
    (1) The grantee agrees that neither it nor any operator of project 
equipment will engage in school bus operations in competition with 
private school bus operators except as provided herein.
    (2) The grantee, or any operator of project equipment, agrees to 
promptly notify the Administrator of any changes in its operations which 
might jeopardize the continuation of an exemption under Sec. 605.11.
    (3) The grantee agrees that it will not engage in any practice which 
constitutes a means of avoiding the requirements of this agreement, part 
605 of the Federal Transit Administration regulations or section 164(b) 
of the Federal-Aid Highway Act of 1973 (49 U.S.C. 1602a(b)).
    (4) The grantee agrees that the project facilities and equipment 
shall

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be used for the provision of mass transportation services within its 
urban area and that any other use of project facilities and equipment 
will be incidental to and shall not interfere with the use of such 
facilities and equipment in mass transportation service to the public.