(a) From the effective date a rural transit district begins providing a public transportation service, another person or private corporation may not operate a local public passenger transportation service in the rural transit district, except as provided by Subsection (b).
(b) Subsection (a) does not apply to:
(1) the operation of:
(A) a taxicab; or
(B) a bus owned or operated by a corporation or organization exclusively for a purpose of the corporation or organization and for the use of which a fee or fare is not charged;
(2) an intercity passenger rail service;
(3) an intercity bus carrier; or
(4) a rural public transportation provider operating under an agreement entered into under this chapter that provides local public passenger transportation service.