How to get a TCP permit in California

If you carry passengers for hire on a prearranged basis, on public roads, on trips that begin and end in California, you need charter-party (TCP) authority from the California Public Utilities Commission. Trips that cross a state line fall under the federal Motor Carrier Safety Administration instead; if you do both, you may need both. The Commission issues six kinds of TCP authority, and choosing the wrong one means applying, and paying, again.

Is it charter-party service?

• The chartering party controls the trip: when and where it starts and ends, and the itinerary between. You charge by vehicle mileage, time of use, or both, not by individual fare (round-trip sightseeing is the exception).
• Every trip is prearranged. No street hails, and no taxi meters or top lights on the vehicle (General Order 157-E, Rule 3.03).
• Some transportation is outside the law entirely (Public Utilities Code 5353), including taxis licensed by a city or county, school-district pupil transportation, publicly owned transit, and vehicles used exclusively for medical transportation. To rely on an exemption, all of your transportation has to fit it.

Choose the authority

• P permit. Chartered service anywhere in California, in vehicles seating fewer than 16 including the driver. The usual choice for sedan, SUV and limousine operators. Not transferable.
• B certificate. Chartered service in vehicles of any size. Vehicles seating 10 or fewer, including the driver, may not pick up passengers more than 125 air miles from your home terminal. Transferable.
• A certificate. Chartered service in vehicles of any size, anywhere in the state, plus round-trip sightseeing with individual fares. Transferable.
• S permit. Round-trip sightseeing tours, where you set the itinerary and may charge individual fares. Not transferable.
• Z permit. Specialized carriers who do not serve the public: service only under contract with businesses, government agencies or private schools, transporting agricultural workers, or transportation incidental to another business. Not transferable.
• C certificate. Transportation incidental to commercial balloon, river rafting or ski operations, with no separate charge for the ride.

Line these up before you apply

1. The legal entity. Authority is issued to a specific individual, partnership, corporation or LLC. For a corporation or LLC, have the Articles and a current Statement of Information from the Secretary of State. Vehicles must be registered commercial or limousine to that entity, or to someone the Commission accepts on its behalf, such as a corporate officer.
2. A vehicle you can operate soon. Unless every trip will be run by licensed subcarriers, you need a vehicle before authority issues. The Commission advises not applying until you are sure you will be ready to operate within three months.
3. DMV Employer Pull Notice enrollment. Authority will not issue without your DMV requester code, and the DMV can take weeks. Start this first. See the Employer Pull Notice guide.
4. A drug and alcohol testing program through a consultant the Commission has accepted, unless every driver will be covered by federal testing rules. See the testing guide.
5. Insurance filed by your insurer with the Commission, at the level set by your largest vehicle's seating capacity, plus workers' compensation coverage or a statement that you have no employees. See the insurance guide.
6. Vehicle paperwork and inspections. An equipment list (form PL 664) with each vehicle's VIN, plate and seating capacity. Every vehicle except buses and modified limousines needs a 19-point inspection at a Bureau of Automotive Repair licensed facility before it enters service (Rule 4.05). Buses and modified limousines need a CHP carrier number (CHP 362) before you apply and a CHP inspection before authority issues. See CHP BIT inspections.

Fees

• New P permit, B certificate or C certificate: $1,000. New A certificate: $1,500 (Public Utilities Code 5373.1). Filing fees are not refundable, including when you change your mind about the type of authority or entity.
• Buses add a $15 per-vehicle fee for the CHP terminal inspection.
• Renewal is $100 for every type, every three years. A renewal the Commission receives after the authority has expired is not accepted, and you refile at the full new-application fee.
• A, B and C certificates can be transferred to another entity; P, S and Z permits cannot, so a sole proprietor who later incorporates applies again.

Filing

Apply online through the CPUC TCP portal. Before issuing authority the Commission must find you fit and financially responsible (Public Utilities Code 5374): able to follow CHP safety rules, committed to hours-of-service limits, running a preventive maintenance program, checking driver records, training drivers, carrying workers' compensation, and providing an office or terminal address where records can be inspected. Expect deficiency letters, and answer each by its date.

The day authority is issued

• Mark every vehicle with your TCP number. See TCP number display rules.
• File equipment-list changes within 10 days of putting a vehicle into or out of service (Rule 4.01).
• Carry a waybill on every trip and keep trip, maintenance, driver and complaint records for at least three years (Rules 3.01 and 6.01). Answer written complaints within 15 days (Rule 7.01).
• File PUCTRA every quarter, including zero-revenue quarters. See PUCTRA fees.
• File the renewal at least three months before expiration (Rule 3.05). See renewing a TCP permit.