That statement too contradicts itself.
I did find this which seems to say the signs on the bus are wrong-
38.105 Each vehicle shall contain sign(s)
which indicate that seats in the front
of the vehicle are priority seats for persons
with disabilities, and that other
passengers
should make such seats
available to those who wish to use
them. At least one set of forward-facing
seats shall be so designated.
(b) Each securement location shall
have a sign designating it as such.
http://www.gpo.gov/fdsys/pkg/CFR-2011-title49-vol1/pdf/CFR-2011-title49-vol1-part38.pdf
And from the section you quoted
(j)(1) When an individual with a disability
enters a vehicle, and because of
a disability, the individual needs to sit
in a seat or occupy a wheelchair securement
location, the entity shall ask
the following persons to move in order
to allow the individual with a disability
to occupy the seat or securement
location:
(i) Individuals, except other individuals
with a disability or elderly persons,
sitting in a location designated as
priority seating for elderly and handicapped
persons (or other seat as necessary);
(ii) Individuals sitting in or a folddown
or other movable seat in a wheelchair
securement location.
Am I reading it correctly that even for tiedown locations, a person with a disability should not be asked to move?