Charter Party Carriers

Charter-Party Carriers (TCPs) charter their vehicles for the exclusive use of an individual or group. Examples are a group charter of a bus to go to a sporting event or charter of a limousine for a wedding Also falling under the charter-party category are some specialized types of passenger carrier services:

• Round-trip sightseeing service
• Transportation incidental to another business
• Transportation under contract to a business, government agency, or private school
• Transportation of agricultural workers to and from farms

Types of Authorities

Below are the types of authorities available to TCPs:

Certificates:

• "A" Certificate (PUC §§5371.1 and 5383):
  • Chartered service
  • May operate vehicles of any seating capacity
  • May operate from any point to any point within California
  • May also conduct round-trip sightseeing and may charge individual fares in doing so.
  • Except for round-trip sightseeing, charges must be based on vehicle mileage, time of use, or combination of both.
  • May be transferred (fee: $300)
• "B" Certificate (PUC §§5371.2 and 5383):
  • Chartered service
  • May operate vehicles of any seating capacity
  • May not pick up passengers more than 125 air miles from the carrier's home terminal. This mileage restriction applies only to vehicles seating 10 or fewer, including the driver.
  • Charges based on vehicle mileage, time of use, or combination.
  • May be transferred (fee $300)
• "C" Certificate (PUC §§5371.3 and 5383):
  • Provide transportation services incidental to commercial balloon operations, commercial river rafting, or skiing where no additional compensation is provided for the transportation. (If you will perform transportation that is incidental to a business other than these three, a "Z” permit, below, is the appropriate authority.)
  • Commercial balloon operations: see exemption under the "Charter-Party Exemptions" link below.
  • May operate from any point to any point within California
  • May be transferred (fee $300)

Permits:

• "P" Permit (PUC §5384(b)):
  • Chartered service
  • May operate only vehicles seating fewer than 16, including the driver. If you will operate one vehicle 16 or more, even occasionally, you may not do so with a "P" permit.
  • May operate from any point to any point within California
  • Charges based on vehicle mileage, time of use, or combination
  • May not be transferred
  • NOTE: Even if you do not intend to operate any vehicle seating 16 or more in the near future, if you think you may do so later, consider applying for a "B" certificate instead.
• "S" Permit (PUC §5384(c)):
  • This is for carriers conducting "round-trip sightseeing service."  See section below on "Round-trip Sightseeing".
  • May operate vehicles of any seating capacity
  • May operate from any point to any point within California
  • May charge individual fares.  May also base charges on vehicle mileage, time of use, or combination. (The "A" certificate is the only other type of TCP authority that allows individual charges, only when conducting roundtrip sightseeing service.)
  • May not be transferred.
• "Z" Permit (PUC §5384(a)):
  • These are "specialized carriers", who do not hold themselves out to serve the general public, but only:
    • provide service under contract with industrial and business firms, governmental agencies, and private schools OR
    • transport agricultural workers to and from farms for compensation OR
    • conduct transportation services, which are incidental to another business. (However, note that if the transportation is incidental to either commercial balloon operations, commercial river rafting, or skiing, the appropriate authority is a "C" certificate, above.)

Other:

• Rideshare (PUC §5353(h)):
  • Transportation of persons between home and work locations or person having a common work-related trip used for the purpose of ridesharing is excluded from Charter-Party Carrier authority.  However, if the vehicle seating capacity is more than 15 passengers, the rideshare operator must do the follow to meet the exemption with the CPUC:
    • Register for the exemption with the CPUC, certifying that you meet the conditions of exemption.
    • File evidence of liability insurance protection with the CPUC in the amount and manner required by Commission General Order (GO) 101.
    • Pay a one-time filing fee of $75
    • Submit to and pass a CHP vehicle safety inspection, initially and annually.
• Hired Drivers (PUC §5360):
  • Hired Drivers are carriers that operate a hired driver services when a rental motor vehicle is operated by a hired driver. Hired Drivers must submit a Charter-Party Carrier (TCP) application and apply for the TCP authority applicable to their business operations. Include a letter stating that you will be engaging in Hired Driver operations.

Charter-Party Carrier Exemptions (PUC §5353)