(i) A public transportation system may accept a per passenger payment from a human service agency in lieu of collecting a fare from a human service agency client. Also, the public transportation system may charge the human service agency a fare higher than the fare charged to other riders in those circumstances where accommodating the travel demand of an agency requires the system to operate a level of service which exceeds available Federal and State mass transportation operating assistance and the local match to that assistance.

(ii) Where a human service agency's transportation needs are met by a public transportation system, such system shall continue, to the extent necessary, to use human service agency program funds to cover that portion of the costs of specialized transportation services not covered by fare-box, Federal and State mass transportation operating assistance and the local match to that assistance.

(iii) If Federal operating assistance is available, it must be included as a source of revenue to cover the costs of the specialized service in at least the same proportion as it covers the costs of the services to the general public. In urbanized areas, the use of Federal assistance must be approved by the area's Metropolitan Planning Organization in the Transportation Improvement Program. Voluntary local assistance (in excess of STOA match requirements) may be substituted for available Federal operating assistance.

(i) Where it is necessary to establish procedures for prioritizing service delivery in order to allocate scarce resources, the prioritizing procedures must be fully documented and may not give preference to any client group.

(i) A specialized service plan must be developed. Service is to be provided in accordance with a specialized service plan, which details appropriate justification for the operation of service by other than the principal operator and includes comments of the principal operator. The service plan should document service area; eligibility; hours of service; fares; service characteristics; restrictions; prioritization; and advance reservation requirements; organizational structure; and service agreements. The plan must also specify acceptable arrangements to market the availability of the service to persons who are disabled.

(ii) Such plan is subject to review by the Department to establish eligibility for STOA program funding. A program/report prepared to meet Federal requirements as meeting the plan requirements of this Subpart provided all requirements of this Subpart are included or appended may be acceptable.

(i) Private, for-profit and private, non-profit operators operating in the proposed service area must be afforded an equal opportunity to bid on the proposed contract(s), and contract(s) should be reoffered for bid on a regular basis.

(ii) Eligibility must be limited to an operator (s) (1) whose primary organizational purpose, as stated in its incorporation papers, is as an operator (s) of passenger transportation, (2) who has or is obtaining an operating permit as a common carrier from NYSDOT, and (3) who will subject its vehicles to NYSDOT inspections.

(iii) The public transportation system must substantially control all transportation service components of the specialized transportation service system, including holding of contracts with the operators, marketing, and the compilation of Federal and State reports. The contract for service must insure that the service complies with these regulations including the scheduling and dispatching of operations.