Jane Stiles and Thomas Stiles-Acquisition of Control-Safe-Way Bus Co. and Safe-Way Wisconsin, Inc.
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Abstract
On March 28, 2022, Jane Stiles and Thomas Stiles (each an Applicant and, collectively, Applicants), both noncarriers, each acquired a 50% ownership interest in both Safe-Way Bus Co. (Safe-Way Bus) and Safe-Way Wisconsin, Inc. (Safe-Way Wisconsin), each an interstate motor carrier of passengers, without Board authority (the Transaction). On April 6, 2026, Applicants filed an application for after-the-fact Board authority for the Transaction, to rectify what they describe as an inadvertent oversight. The Board is tentatively approving and authorizing the Transaction after the fact, and, if no opposing comments are timely filed, this notice will be the final Board action.
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<title>Federal Register, Volume 91 Issue 87 (Wednesday, May 6, 2026)</title>
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[Federal Register Volume 91, Number 87 (Wednesday, May 6, 2026)]
[Notices]
[Pages 24634-24636]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08776]
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SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21148]
Jane Stiles and Thomas Stiles--Acquisition of Control--Safe-Way
Bus Co. and Safe-Way Wisconsin, Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving and authorizing finance
transaction.
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SUMMARY: On March 28, 2022, Jane Stiles and Thomas Stiles (each an
Applicant and, collectively, Applicants), both noncarriers, each
acquired a 50% ownership interest in both Safe-Way Bus Co. (Safe-Way
Bus) and Safe-Way Wisconsin, Inc. (Safe-Way Wisconsin), each an
interstate motor carrier of passengers, without Board authority (the
Transaction). On April 6, 2026, Applicants filed an application for
after-the-fact Board authority for the Transaction, to rectify what
they describe as an inadvertent oversight. The Board is tentatively
approving and authorizing the Transaction after the fact, and, if no
opposing comments are timely filed, this notice will be the final Board
action.
DATES: Comments may be filed by June 22, 2026. If any comments are
filed, Applicants may file a reply by July 6, 2026. If no opposing
comments are filed by June 22, 2026, this notice shall be effective on
June 23, 2026.
ADDRESSES: Comments may be filed with the Board either via e-filing or
in writing addressed to: Surface Transportation Board, 395 E Street SW,
Washington, DC 20423-0001. In addition, send one copy of comments to
Applicants' representative: Edward Fishman, Hogan Lovells US LLP,
Columbia Square, 555 Thirteenth Street NW, Washington, DC 20004-1109.
FOR FURTHER INFORMATION CONTACT: Jonathon Binet at (202) 915-4348. If
you require an accommodation under the Americans with Disabilities Act,
please call (202) 245-0245.
SUPPLEMENTARY INFORMATION: According to the application, Jane Stiles
(Jane) is an individual resident of Minnesota and U.S. citizen. Jane is
not a motor carrier and does not hold individual operating authority.
Jane owns 50% of the shares of Safe-Way Bus and serves as its Co-
President and Secretary. Jane also owns 50% of the shares of Safe-Way
Wisconsin and serves as its Co-President and Secretary. (Appl. 3.)
Thomas Stiles (Thomas) is an individual resident of Wisconsin, a U.S.
citizen, and a brother of Jane. Thomas is not a motor carrier and does
not hold individual operating authority. Thomas owns 50% of the shares
of Safe-Way Bus and serves as its Co-President and Treasurer. Thomas
also owns 50% of the shares of Safe-Way Wisconsin and serves as its Co-
President and Treasurer. (Id. at 4.)
Prior to the Transaction, each Applicant owned 33% of the shares in
Safe-Way Bus and Safe-Way Wisconsin. On March 28, 2022, each Applicant
acquired additional shares in Safe-Way Bus and Safe-Way Wisconsin
through the settlement of the estate of their late brother, Daniel
Stiles. As a result, each Applicant holds 50% of the shares in Safe-Way
Bus and Safe-Way Wisconsin. (Id.)
The Application describes Safe-Way Bus as a Minnesota corporation
that was incorporated on February 25, 1970, in Inver Grove Heights,
Minn. Safe-Way Bus was formed by Jane and Thomas's parents, who owned
and operated the company as a school bus provider in the Twin Cities
area of Minnesota. Ownership was transferred after their deaths to
their three children (Jane, Thomas, and Daniel Stiles). (Id.)
The Application states that Safe-Way Bus provides service out of
its Inver Grove Heights terminal in the Twin Cities region of Minnesota
and its terminal in Hudson, Wis. (Id. at 11.) Safe-Way Bus is
authorized to operate as an interstate motor carrier of passengers
subject to the jurisdiction of the FMCSA pursuant to authority issued
in Docket No. MC-362288; U.S. DOT No. 813377. Safe-Way Bus also has
intrastate operating authority as a motor carrier of passengers from
the Minnesota DOT pursuant to Minnesota DOT # 142460.
Safe-Way Bus provides school transportation service under contract
to two school districts in the Twin Cities, Minn. area (Inver Grove
Heights Public Schools district ISD 199 and South St. Paul Public
Schools district/SSD 6) as well as to the Hudson, Wis. public school
district. (Id. at 5-6.) The Application states that, until June 2023,
Safe-Way Bus also provided school transportation service under contract
to the St. Paul Public Schools district ISD 625. (Id. at 5.)
According to the Application, the Inver Grove Heights Public
Schools district consists of approximately five public schools. The
district has approximately 3,500 students and the service area
encompasses approximately 30 square miles. The contract service that
Safe-Way Bus provides for the Inver Grove Heights Public Schools
district involves approximately 23 full-sized school buses that are
used for transporting regular education students to and from school and
conducting extracurricular trips. (Id.)
[[Page 24635]]
According to the Application, the South St. Paul Public Schools
district consists of approximately five public schools. The district
has approximately 3,100 students and the service area encompasses
approximately six square miles. The contract service that Safe-Way Bus
provides for the South St. Paul Public Schools district involves
approximately seven full-sized school buses that are used for
transporting regular education students to and from school and
conducting extracurricular trips. Safe-Way Bus also utilizes
approximately seven smaller buses to transport preschool and special-
needs students. (Id. at 5-6.)
According to the Application, the Hudson Public Schools district
consists of approximately eight public schools and one private school.
The district has approximately 5,300 students and the service area
encompasses approximately 77 square miles. The contract service that
Safe-Way Bus provides for the Hudson Public Schools District involves
approximately 42 full-sized school buses that are used for transporting
regular education students to and from school and conducting extra-
curricular trips. Safe-Way also utilizes approximately 12 smaller buses
and four vans/SUVs to transport pre-K and special-needs students. (Id.
at 6.)
According to the Application, Safe-Way Bus provides after-school
trips as part of its contracts with the relevant school districts in
the Twin Cities area. On limited occasions, these services involve
transportation across state lines into neighboring states including
Wisconsin. (Id.) Safe-Way Bus also provides charter bus service for
university and youth groups, transporting them to sporting events and
similar activities within the state of Minnesota and across state
lines, primarily into Wisconsin. (Id.)
The Application states that, in the past 12 months, Safe-Way Bus
has conducted approximately 334 interstate trips and approximately
2.11% of its overall revenue is derived from these interstate trips.
Safe-Way Bus does not conduct regularly scheduled motorcoach service in
interstate commerce. The Safe-Way Bus terminal in Inver Grove Heights
has a fleet of approximately 51 school buses. Safe-Way Bus operates its
student transportation services out of its terminal in Inver Grove
Heights. That terminal has approximately 50 employees, including 45
drivers and five other employees. The terminal in Hudson has
approximately 64 employees, including 58 drivers and six other
employees. (Id. at 6-7.)
The Application describes Safe-Way Wisconsin as a Wisconsin
corporation that was incorporated on May 30, 2006, and that has its
principal business address in Somerset, Wis. Safe-Way Wisconsin is
authorized to operate as an interstate motor carrier of passengers
subject to the jurisdiction of the FMCSA pursuant to authority issued
in Docket No. MC-1471781; U.S. DOT No. 3923185. Safe-Way Wisconsin also
has intrastate operating authority from the Wisconsin Department of
Transportation to operate as a common carrier of passengers pursuant to
PC221. (Id. at 7.)
According to the Application, Safe-Way Wisconsin provides service
out of its terminal in Somerset, Wis., and from a terminal in Balsam
Lake, Wis. (Id. at 10.) Safe-Way Wisconsin is a school transportation
operator, providing general and special education transportation to and
from school on regular routes under contract to the Somerset Public
Schools district in Somerset, and the Unity School District in Balsam
Lake. The Somerset Public Schools district consists of three public
schools and one non-public school. The district has approximately 1,500
students and encompasses a service area of approximately 95 square
miles. The contract service that Safe-Way Wisconsin provides for the
Somerset Public Schools district involves running approximately 19 full
sized school buses that are used for transporting regular education
students to and from school and for extracurricular trips. (Id. at 7-
8.)
According to the Application, the Unity School District consists of
three public schools in the towns of Balsam Lake, Milltown, and
Centuria, Wis. The district has approximately 945 students and
encompasses a service area of approximately 140 square miles. The
contract service that Safe-Way Wisconsin provides for the Unity Public
Schools district involves running approximately 15 full-sized school
buses that are used for transporting regular education students to and
from school and for extracurricular trips. Safe-Way Wisconsin also
utilizes approximately one smaller bus and three vans that transport
preschool and special-needs students within the Unity Public School
district. (Id. at 8.)
The Application states that Safe-Way Wisconsin employs
approximately 19 school bus drivers and has 22 total employees at the
Somerset terminal. In addition, Safe-Way Wisconsin employs
approximately 18 school bus drivers and has 21 total employees at the
Balsam Lake terminal. Safe-Way Wisconsin has serviced the Somerset
Public Schools district continually since 2006, and the Unity School
District since 2023. (Id.)
According to the Application, Safe-Way Wisconsin provides after-
school trips as part of its contract with Somerset Public Schools and
the Unity School District for extracurricular activities and other
special events within Wisconsin. On limited occasions, these services
involve transportation across state lines into neighboring states
including Minnesota. Safe-Way Wisconsin provides charter bus service
for university and youth groups, transporting them to sporting events
and similar activities within the state of Wisconsin and across state
lines, primarily into Minnesota. (Id. at 8-9.)
According to the Application, Safe-Way Wisconsin does not conduct
regularly scheduled motorcoach service in interstate commerce. It
operates from its terminals in Somerset and Balsam Lake. It conducts
approximately 111 interstate trips per year between those terminals, a
number that, according to the Application, is minimal in comparison to
Safe-Way Wisconsin's overall intrastate school transportation
operations. According to the Application, approximately 2.01% of Safe-
Way Wisconsin's overall revenue is from interstate operations. (Id. at
9.)
The Application states that, since the Transaction in 2022, both
Safe-Way Bus and Safe-Way Wisconsin have continued to operate under
their same names. (Id.) In addition, both Safe-Way Bus and Safe-Way
Wisconsin have provided substantially the same services under the co-
ownership and control of the Applicants as they did before the
Transaction. (Id.) The territories that are primarily served by Safe-
Way Bus and Safe-Way Wisconsin do not overlap, as those territories are
located approximately 30 miles apart from one another in different
states. (Id. at 10.)
According to the Application, Safe-Way Wisconsin's main competitors
for student transportation services include Kobussen Buses LTD and Go-
Riteway Transportation Group. Safe-Way Bus's main competitors for
student transportation services in the greater Twin Cities area and in
the Hudson area include First Student Transportation, Schmitty & Sons
Transportation, Transit Team, Voigt's School Service Inc., Billie Bus
Transportation, and American Student Transportation. There are
approximately five other direct competitors in each of the service
areas, and the competitive landscape has not materially changed since
the Transaction in 2022. Both Safe-Way Wisconsin and Safe-Way Bus
generally face competition from national, regional
[[Page 24636]]
and local bus providers operating within their respective service
areas. In addition, both companies face considerable competition for
transportation services from other modes of transportation including
ride sharing services and local bus service operated by transit
agencies. (Id.) Other than Safe-Way Bus and Safe-Way Wisconsin, there
are no other affiliated carriers with Board-regulated interstate
passenger operations within Applicants' control. (Id. at 11.)
Applicants state that they now understand that a control
application should have been filed with the Board prior to their 2022
acquisition of control of the Carriers. Applicants thus seek after-the-
fact authority for the Transaction. (Id. at 10-11). See 49 U.S.C.
14303(a)(5).
Under 49 U.S.C. 14303(b), the Board must approve and authorize a
transaction that it finds consistent with the public interest, taking
into consideration at least (1) the effect of the proposed transaction
on the adequacy of transportation to the public, (2) the total fixed
charges that result from the proposed transaction, and (3) the interest
of affected carrier employees. Applicants have submitted the
information required by 49 CFR 1182.2, including information to
demonstrate that the transaction is consistent with the public interest
under 49 U.S.C. 14303(b), see 49 CFR 1182.2(a)(7), and a jurisdictional
statement under 49 U.S.C. 14303(g) that the aggregate gross operating
revenues of the involved carriers exceeded $2 million during the 12-
month period immediately preceding the filing of the application, see
49 CFR 1182.2(a)(5). (See Appl. 11.)
Applicants state that the Transaction has not resulted in any
significant changes to the nature or scope of the general operations
conducted by Safe-Way Bus and Safe-Way Wisconsin. (Id. at 12.)
Applicants assert that the Transaction has not produced adverse
competitive effects in any relevant geographic market and has not
impaired the adequacy of transportation to the public. (Id. at 13-14.)
According to the Applicants, the school transportation services that
Safe-Way Bus and Safe-Way Wisconsin provide are under contract to
different school districts in different service areas that are 30 miles
apart, and there is no overlap in the school district service areas or
routes served by Safe-Way Bus and Safe-Way Wisconsin. (Id. at 12.)
Furthermore, both carriers face substantial competition for student
transportation services from other bus providers, including national,
local and regional, and from numerous other modes of transportation.
(Id.)
Applicants state that the Transaction did not result in fixed
charges that adversely affected the ability of the Safe-Way Bus and
Safe-Way Wisconsin to continue to provide safe and quality
transportation service and that Applicants did not use debt funding or
incur fixed charges in their acquisition of control of Safe-Way Bus and
Safe-Way Wisconsin. (Id. at 13.) Applicants assert that the Transaction
has not had any material adverse effect on employee or labor
conditions. (Id.) Applicants state that there have been no substantial
layoffs at Safe-Way Bus or Safe-Way Wisconsin since the Transaction,
and Applicants are not aware of adverse changes to wages, benefits, or
working conditions as a result of the Transaction. In fact, according
to Applicants, Safe-Way Wisconsin has hired additional drivers and
employees to serve the Unity School District contract. (Id.)
The Board finds that the Transaction as described in the
application is consistent with the public interest and should be
tentatively approved and authorized after the fact. If any opposing
comments are timely filed, these findings will be deemed vacated, and,
unless a final decision can be made on the record as developed, a
procedural schedule will be adopted to reconsider the application. See
49 CFR 1182.6. If no opposing comments are filed by the expiration of
the comment period, this notice will take effect automatically and will
be the final Board action in this proceeding.
This action is categorically excluded from environmental review
under 49 CFR 1105.6(c).
Board decisions and notices are available at <a href="http://www.stb.gov">www.stb.gov</a>.
It is ordered:
1. The Transaction is approved and authorized after-the-fact,
subject to the filing of opposing comments.
2. If opposing comments are timely filed, the findings made in this
notice will be deemed vacated.
3. This notice will be effective June 23, 2026, unless opposing
comments are filed by June 22, 2026. If any comments are filed,
Applicants may file a reply by July 6, 2026.
4. A copy of this notice will be served on: (1) the U.S. Department
of Transportation, Federal Motor Carrier Safety Administration, 1200
New Jersey Avenue, SE, Washington, DC 20590; (2) the U.S. Department of
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, NW,
Washington, DC 20530; and (3) the U.S. Department of Transportation,
Office of General Counsel, 1200 New Jersey Avenue, SE, Washington, DC
20590.
5. This notice will be published in the Federal Register.
Decided: April 27, 2026.
By the Board, Board Members Fuchs, Hedlund, and Schultz.
Eden Besera,
Clearance Clerk.
[FR Doc. 2026-08776 Filed 5-5-26; 8:45 am]
BILLING CODE 4915-01-P
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