United Motorcoach Association, Inc. v. City of Austin, No. 16-50115 (5th Cir. 2017)Annotate this Case
Plaintiff, a national association of charter-bus companies, sought to enjoin regulations affecting their operations enacted by the City of Austin. At issue was whether federal law preempted the City's exercise of its regulatory authority over the intrastate operation of charter buses. The court affirmed the district court's holding that the regulations were not preempted. The arguments about preemption were based on a federal statute captioned "Federal authority over intrastate transportation." See 49 U.S.C. 14501. The court agreed with the district court's conclusion that section 14501(c)(2)(A) may appropriately be considered in interpreting and applying section 14501(a)(2), because both subsections use identical language. The court concluded that the distinctions between sections 14501(a) and (c) do not persuade it to construe "safety regulatory authority" more narrowly in the former than in the latter. The court applied a test that was similar to the Ninth Circuit, concluding that, in light of the permitting regulation's expressed purpose and effect, there was a safety motivation for the ordinance, and there was a nexus between the permitting regulations and the safety concern. Accordingly, the court affirmed the judgment.