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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Private Sector Com-
petition in Microtransit Act’’. 
SEC. 2. FINDING. 
Congress finds that fostering competition and innova-
tion in microtransit services benefits the public by improv-
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ing efficiency, service quality, and options for transpor-
tation 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 com-
petitive procurement process required under sub-
section (a) shall— 
(A) adhere to fair and transparent proce-
dures; and 
(B) allows private sector companies to sub-
mit bids for the provision of microtransit serv-
ices. 
(2) CRITERIA.—The criteria for selection under 
such process shall prioritize— 
(A) efficiency; 
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(B) cost-effectiveness; and 
(C) overall quality of service. 
(3) PRIORITY.—In selection a private sector 
company under such process, a State or local gov-
ernment shall prioritize small or disadvantaged busi-
nesses. 
(4) PREFERENCE.—All competitive procure-
ment processes under this subsection shall give pref-
erence 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 jurisdic-
tion 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 soft-
ware or technology capabilities; 
(B) shall be for operation of the micro-
transit services; and 
(C) may only be awarded to entities with 
a proven history of directly providing micro-
transit services. 
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SEC. 5. REPORTING REQUIREMENTS. 
(a) CERTIFICATION.—Each State and local govern-
ment 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 Transpor-
tation shall submit to Congress an annual report detailing 
the extent to which State and local governments have com-
plied with the requirements of section 4, including infor-
mation on the competitive procurement process and out-
comes. 
SEC. 6. NONCOMPLIANCE PENALTIES. 
(a) NOTIFICATIONS.—If the Secretary of Transpor-
tation 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 sus-
pend or withhold Federal funds allocated for microtransit 
services until such time as the government demonstrates 
compliance with this Act. 
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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. 
Æ 
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