I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Private Sector Com5 petition in Microtransit Act’’. 

6 SEC. 2. FINDING. 

7 Congress finds that fostering competition and innova8 tion in microtransit services benefits the public by improvVerDate Sep 11 2014 03:27 Oct 04, 2024 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H9756.IH H9756

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1 ing efficiency, service quality, and options for transpor2 tation users. 

3 SEC. 3. PURPOSE. 

4 The purpose of this Act is to promote private sector 

5 engagement in microtransit services funded by Federal 

6 grants to State or local governments. 

7 SEC. 4. PROHIBITION ON CERTAIN DIRECT PROVISION OF 

8 MICROTRANSIT SERVICES. 

9 (a) PROHIBITION.—No State or local government 

10 shall be eligible to receive Federal funds to be used for 

11 microtransit services unless the recipient contracts out the 

12 provision of such services to private sector entities through 

13 a competitive procurement process. 

14 (b) COMPETITIVE PROCUREMENT PROCESS.— 

15 (1) TRANSPARENT PROCEDURES.—The com16 petitive procurement process required under sub17 section (a) shall— 

18 (A) adhere to fair and transparent proce19 dures; and 

20 (B) allows private sector companies to sub21 mit bids for the provision of microtransit serv22 ices. 

23 (2) CRITERIA.—The criteria for selection under 

24 such process shall prioritize— 

25 (A) efficiency; 


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1 (B) cost-effectiveness; and 

2 (C) overall quality of service. 

3 (3) PRIORITY.—In selection a private sector 

4 company under such process, a State or local gov5 ernment shall prioritize small or disadvantaged busi6 nesses. 

7 (4) PREFERENCE.—All competitive procure8 ment processes under this subsection shall give pref9 erence to any award to local operators able to meet 

10 the needs of the State or local government. 

11 (5) WAIVER.—Upon request by a State or local 

12 government, the Secretary of Transportation may 

13 waive the local requirement under paragraph (4) to 

14 allow the State or local government to enter into a 

15 contract with an operator not located in the jurisdic16 tion of the State or local government. 

17 (6) PROVISION OF SERVICES.—A contract 

18 awarded to a vendor in under this section— 

19 (A) may not be solely for providing soft20 ware or technology capabilities; 

21 (B) shall be for operation of the micro22 transit services; and 

23 (C) may only be awarded to entities with 

24 a proven history of directly providing micro25 transit services. 


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1 SEC. 5. REPORTING REQUIREMENTS. 

2 (a) CERTIFICATION.—Each State and local govern3 ment that receives Federal funds to provide microtransit 

4 services shall certify to the Secretary of Transportation 

5 that such State or local government has contracted out 

6 the provision of such services to private sector entities in 

7 accordance with this Act. 

8 (b) ANNUAL REPORT.—The Secretary of Transpor9 tation shall submit to Congress an annual report detailing 

10 the extent to which State and local governments have com11 plied with the requirements of section 4, including infor12 mation on the competitive procurement process and out13 comes. 

14 SEC. 6. NONCOMPLIANCE PENALTIES. 

15 (a) NOTIFICATIONS.—If the Secretary of Transpor16 tation finds that a State or local government is in violation 

17 of the provisions outlined in section 4, the Secretary of 

18 Transportation shall notify the State or local government 

19 of the noncompliance and provide a reasonable period of 

20 time for corrective action. 

21 (b) GRANT SUSPENSION.—In the event of continued 

22 noncompliance after such period, the Secretary may sus23 pend or withhold Federal funds allocated for microtransit 

24 services until such time as the government demonstrates 

25 compliance with this Act. 


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1 SEC. 7. DEFINITION OF MICROTRANSIT. 

2 In this Act, the term ‘‘microtransit’’ means a flexible, 

3 on-demand public transportation option that uses smaller 

4 vehicles, such as vans or shuttles, to transport passengers 

5 along dynamic or fixed routes within a specific service 

6 area. 

7 SEC. 8. RULEMAKING AUTHORITY. 

8 The Secretary of Transportation may issue such rules 

9 and regulations as are necessary to implement this Act. 

10 SEC. 9. EFFECTIVE DATE. 

11 This Act shall take effect 180 days after the date of 

12 enactment of this Act. 

Æ 


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