California Code, Public Utilities Code - PUC § 99209.5

“Operates” for purposes of Sections 99209 and 99215, and “operation” for purposes of paragaraph   1 (1) of subdivision (b) of Section 99289, mean that the operator owns or leases the equipment, establishes routes and frequency of service, regulates and collects fares, and otherwise controls the efficiency and quality of the operation of the system, but does not require that operators of rolling stock be employees of a public agency.