Private Sector Competition in Microtransit Act

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9756 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 9756

  To require that any State or local government that receive Federal 
 funds to operate microtransit services enters into a contract with a 
   private entity for the operation of such services, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 2024

 Ms. Boebert introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
  To require that any State or local government that receive Federal 
 funds to operate microtransit services enters into a contract with a 
   private entity for the operation of such services, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Private Sector Competition in 
Microtransit Act''.

SEC. 2. FINDING.

    Congress finds that fostering competition and innovation in 
microtransit services benefits the public by improving efficiency, 
service quality, and options for transportation users.

SEC. 3. PURPOSE.

    The purpose of this Act is to promote private sector engagement in 
microtransit services funded by Federal grants to State or local 
governments.

SEC. 4. PROHIBITION ON CERTAIN DIRECT PROVISION OF MICROTRANSIT 
              SERVICES.

    (a) Prohibition.--No State or local government shall be eligible to 
receive Federal funds to be used for microtransit services unless the 
recipient contracts out the provision of such services to private 
sector entities through a competitive procurement process.
    (b) Competitive Procurement Process.--
            (1) Transparent procedures.--The competitive procurement 
        process required under subsection (a) shall--
                    (A) adhere to fair and transparent procedures; and
                    (B) allows private sector companies to submit bids 
                for the provision of microtransit services.
            (2) Criteria.--The criteria for selection under such 
        process shall prioritize--
                    (A) efficiency;
                    (B) cost-effectiveness; and
                    (C) overall quality of service.
            (3) Priority.--In selection a private sector company under 
        such process, a State or local government shall prioritize 
        small or disadvantaged businesses.
            (4) Preference.--All competitive procurement processes 
        under this subsection shall give preference to any award to 
        local operators able to meet the needs of the State or local 
        government.
            (5) Waiver.--Upon request by a State or local government, 
        the Secretary of Transportation may waive the local requirement 
        under paragraph (4) to allow the State or local government to 
        enter into a contract with an operator not located in the 
        jurisdiction of the State or local government.
            (6) Provision of services.--A contract awarded to a vendor 
        in under this section--
                    (A) may not be solely for providing software or 
                technology capabilities;
                    (B) shall be for operation of the microtransit 
                services; and
                    (C) may only be awarded to entities with a proven 
                history of directly providing microtransit services.

SEC. 5. REPORTING REQUIREMENTS.

    (a) Certification.--Each State and local government that receives 
Federal funds to provide microtransit services shall certify to the 
Secretary of Transportation that such State or local government has 
contracted out the provision of such services to private sector 
entities in accordance with this Act.
    (b) Annual Report.--The Secretary of Transportation shall submit to 
Congress an annual report detailing the extent to which State and local 
governments have complied with the requirements of section 4, including 
information on the competitive procurement process and outcomes.

SEC. 6. NONCOMPLIANCE PENALTIES.

    (a) Notifications.--If the Secretary of Transportation finds that a 
State or local government is in violation of the provisions outlined in 
section 4, the Secretary of Transportation shall notify the State or 
local government of the noncompliance and provide a reasonable period 
of time for corrective action.
    (b) Grant Suspension.--In the event of continued noncompliance 
after such period, the Secretary may suspend or withhold Federal funds 
allocated for microtransit services until such time as the government 
demonstrates compliance with this Act.

SEC. 7. DEFINITION OF MICROTRANSIT.

    In this Act, the term ``microtransit'' means a flexible, on-demand 
public transportation option that uses smaller vehicles, such as vans 
or shuttles, to transport passengers along dynamic or fixed routes 
within a specific service area.

SEC. 8. RULEMAKING AUTHORITY.

    The Secretary of Transportation may issue such rules and 
regulations as are necessary to implement this Act.

SEC. 9. EFFECTIVE DATE.

    This Act shall take effect 180 days after the date of enactment of 
this Act.
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