UMTA\u27s Privatization Directive: Legal and Regulatory Obstacles Barring Opportunities for the Private Sector to Serve Transit Demand in Southwestern Pennsylvania

A recent policy statement issued by the United States Department of Transportation Urban Mass Transportation Administration (UMTA), which has become known as the Privatization Directive, attempts to encourage public transit providers to fully and fairly consider the potential of private enterprise in providing mass transportation services by revitalizing three provisions of the Urban Mass Transportation Act of 1964, as amended (UMT Act). The author assesses the merits of this policy by identifying the various legal and regulatory obstacles barring opportunities for the private sector to serve mass transportation demands in the southwestern Pennsylvania region. By examining existing federal and state legislation governing private sector involvement in public transit operations, the writer identifies the legal and regulatory impediments to increased opportunities for private enterprise and recommends legislative reforms which may be necessary for public transit agencies to comply with UMTA\u27s private sector participation policy