(a) Except as provided in subdivision (b), the district may operate charter bus service, subject to all of the following limitations:

1. (1) Bus equipment that is designed solely for charter service shall not be purchased. A bus equipped with a toilet or underfloor baggage compartment shall be deemed to be bus equipment that is designed solely for charter service.
2. (2) The board shall hold a public hearing before adopting a charter rate schedule or any amendment to the charter rate schedule. Notice of the hearing shall be mailed to each charter-party carrier operating within the district at least 30 days before the date of the hearing. The notice shall include the proposed charter rate schedule. At the close of the public hearing, the board may adopt charter rate schedules, which shall not be less than the average for the three largest private charter-party carriers operating similar service in the district.
3. (3) Charter service operations by the district shall originate and terminate within the area served by the district, unless a private charter-party carrier requests the district to provide service beyond that area.

(b)

1. (1) The district may provide charter bus service for the 2026 FIFA World Cup during the period from June 1, 2026, to July 31, 2026, inclusive, in the County of Los Angeles if all of the following conditions are met:

   1. (A) The district establishes a schedule of rates for charter bus services that are incidental to the holding of the 2026 FIFA World Cup in the County of Los Angeles subject to the following requirements:

      1. (i) The rates for charter-party bus services established under this paragraph are sufficient to pay all marginal costs related to those charter bus services and contribute financially to the reduction of deficits incurred by the district in the operation of scheduled route services.
      2. (ii) The rates are at least equal to the average of the lowest rates charged by the three largest private charter-party carriers operating similar service in the County of Los Angeles.
      3. (iii) The schedule of rates are effective from June 1, 2026, to July 31, 2026, inclusive.
   2. (B) The district provides charter bus service for the events to the extent that private charter-party carriers are not capable of providing that service.
   3. (C) The district provides charter bus service in compliance with paragraphs (1) and (3) of subdivision (a).
2. (2) Other public transportation providers, operating under contract with the district, may provide charter bus service under this subdivision in the County of Los Angeles for the 2026 FIFA World Cup.
3. (3) This subdivision does not override any collective bargaining agreement between the district or a public transportation provider operating under contract with the district and a labor organization that represents employees of those entities, as applicable, and does not authorize the district or a public transportation provider operating under contract with the district to provide charter bus service via contracting with private entities. Any charter bus service provided pursuant to this subdivision shall be operated by the district, or a public transportation provider operating under contract with the district, with employees of the entity providing the charter service.
4. (4) For purposes of this subdivision, “not capable of providing that service” includes, but is not limited to, the inability to meet requirements including, but not limited to, requirements with regard to unique equipment, fuel type, number of doors, frequency, public safety, accommodations for standing passengers, handicap accessibility, or the nature of the service.
5. (5) This subdivision shall become inoperative on January 1, 2027.