Charter-party carriers are required to file for the TCP. The TCP meaning is Transportation Carrier Permit. If you own a business in which you charter out your vehicles for the dedicated use to an individual person or group for any given amount of time, you fall into the category of a charter-party carrier and hence are required to have this permit. For example, if you have a business in which you allow people to charter a bus for a sporting event or a limousine to a red carpet, you count as a charter-party carrier and require the CA TCP license. If you plan to be a rideshare driver with services like Lyft or Uber, you are required to have a TCP license. However, according to the state of California’s Public Utilities Commission, there are some more specific business models who count as charter-party carriers and are required to have the TCP that you may not expect. These are:
- Businesses providing a round-trip sightseeing service,
- Businesses providing transportation incidental to another business,
- Businesses providing transportation per a contract with another business. a government agency, or a private school,
- Businesses providing transportation services for agricultural workers to and from a farm.
Letter Certifications
When it comes to filing for the CA TCP license, there are three different main letter certification authorities available to different businesses. You are required to be filed under at least one of the following:
- “A” Certificate (PUC §§5371.1 and 5383):
- Chartered service,
- Allows for operation of vehicles of any seating capacity,
- Allows for operation from any point to any point within California,
- Also allows for the business to conduct round-trip sightseeing and may charge individual fares in doing so,
- Aside from round-trip sightseeing, all charges must be based on vehicle mileage, time of use, or combination of both for any form of use,
- Able to be transferred to another business (fee: $300).
- “B” Certificate (PUC §§5371.2 and 5383):
- Chartered service,
- Allows for operation of vehicles of any seating capacity,
- Does not allow for pick-up of 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,
- All charges must be based on vehicle mileage, time of use, or a combination of the two,
- Able to be transferred to another business (fee $300).
- “C” Certificate (PUC §§5371.3 and 5383):
- Allows for transportation services to provide 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, you will require a different permit),
- Allows for operation from any point to any point within California,
- Able to be transferred to another business (fee $300).
Letter Permits
Additionally separate permits can either be obtained in lieu of the above certifications, or in conjunction with the above certifications.
- “P” Permit (PUC §5384(b)):
- Chartered service
- Allows for the operation of vehicles only seating fewer than 16 people, including the driver,
- Allows for operation from any point to any point within California,
- All charges must be based on vehicle mileage, time of use, or a combination of the two,
- NON-TRANSFERABLE
- “S” Permit (PUC §5384(c)):
- For carriers operating a “round-trip sightseeing service,”
- Allows for the operation of vehicles of any seating capacity,
- Allows for operation from any point to any point within California,
- Allows for individual fares to be charged; however, also allows for all charges to be based on vehicle mileage, time of use, or a combination of the two,
- NON-TRANSFERABLE
- “Z” Permit (PUC §5384(a)):
- For specialized carriers who do not conduct business with the general public but instead:
- Under a contract, provide services to industrial and business firms, government agencies, and private schools,
- Transport agricultural workers to and from farms for compensation, OR
- Conduct transportation services, which are incidental to another business.
- NOTE: If the transportation is incidental to either commercial balloon operations, commercial river rafting, or skiing, the business will actually need the “C” certificate.
- For specialized carriers who do not conduct business with the general public but instead:
There are also specific TCP permits that are for rideshare drivers and hired drivers. This means you can obtain a TCP number that is specifically, for example, a TCP license for Uber.
Before You Apply, You Need:
- Insurance
- Application fee ready ($2,475 total for all permits, except the USDOT Number and CA Number)
- Inspection fee ready (if you will operate a bus, limousine, etc. Price varies per vehicle)
- Drug and alcohol testing
- Employer Pull Notice filing (can take up to six (6) weeks to obtain)
- DMV weight certificate
- Secretary of State filings (if you plan to apple for a LLC, LP, or Corporation)
- Airport licensing (if you intend to ever operate at an airport. For example, if you plan to be a TCP operating from LAX)
- Motor Carrier account with CHP (if you will operate a vehicle requiring an inspection)
Additional Filings
Please note that you may need other filings if you are a charter-party carrier. The most important other filing is the USDOT Number. If the vehicle you operate is designed and/or used to transport 8 or more passengers (including the driver) for pay, you are required to have the USDOT Number. If your vehicle is designed and/or used to transport 15 or more passengers (including the driver), but not for pay, then you are required to have the USDOT Number as well. Learn more about the USDOT Number HERE! If you operate as a charter-party carrier within California, you are required to have a CA Number. Learn more about the CA Number HERE!
Get your business ready for passengers! Call us today at (888) 669-4383 to learn more about the TCP and get your filing started!