Passenger Carrier Frequently Asked Questions

Please click on the Question links below to reveal the answers.

What are the insurance requirements to be licensed or registered with the PUC?

Carriers are required to file evidence of one or more types of insurance coverage to secure and maintain active operating authority or registration. All carriers are required to file evidence of liability coverage. Minimum limits vary by type of carrier and other factors. Please see Insurance E-Filing for more information.

Any for-hire passenger carrier that employs workers in its operation must file evidence of workers' compensation coverage by filing either (1) a certificate of insurance (Commission form TL-938) or (2) a certificate of consent to self-insure issued by the Department of Industrial Relations.

Minimum insurance coverage limits and other requirements are set forth in Commission general orders. You may view a table that shows the General Order applicable to each type of carrier and coverage (for example, charter-party carrier liability coverage = General Order 115). From there you may view any insurance-related general order in its entirety.

What is the meaning of the letters "PSG" that appear with my permit number on notices issued by the License Section?

These are designations in the License Section computer system for motor carriers of passengers (PSG). They are used only for internal record keeping purposes. Carriers should use the designations TCP (charter-party carriers), PSC (passenger stage corporations), or VCC (vessel common carriers) with their permit or certificate number on vehicles, in advertising, or for any other carrier identification purpose.

Do I need to obtain a license from the PUC to transport passengers on a for-hire basis within California?

In most cases the transportation of passengers for compensation requires operating authority from the PUC. However, the law provides some exceptions. Two major ones are taxicab service, which is subject to local regulation by cities and counties, and medical transportation vehicles. All of the exceptions are set forth in Public Utilities Code Sections 226 and 5353.

Is there more than one kind of for-hire passenger carrier license issued by the Commission?

Yes. The PUC issues passenger stage corporation (PSC) certificates and charter-party carrier (TCP) permits and certificates. There are distinct differences in the manner in which PSCs and TCPs operate:

• A PSC provides transportation service to the general public on an individual-fare basis. Most PSCs operate a fixed route, scheduled service, or an on-call, door-to-door airport shuttle-type service.
• A TCP charters a vehicle, on a prearranged basis, for the exclusive use of an individual or group. Charges are based on mileage or time of use, or a combination of both. Also falling under the TCP category are round-trip sightseeing services, and certain specialized services not offered to the general public, such as transportation incidental to another business and transportation under contract to a governmental agency, an industrial or business firm, or a private school.

What is the difference between a TCP certificate and a TCP permit?

The law provides three types of certificates and three types of permits. These operating authorities and the services they authorize are:

• Class A certificate - Charter service between any points in the state; round-trip sightseeing service.
• Class B certificate - Charter service between any point within a radius of 125 air miles of the carrier's home terminal to any other point in the state. (Per federal law, the mileage limitation may not apply to transportation provided in vehicles that seat more than ten, including the driver.)
• Class C certificate - Transportation services incidental to commercial balloon operations, commercial river rafting or skiing.
• "P" permit - Charter services using only vehicles with a passenger seating capacity of 15 or fewer.
• "S" permit - Round-trip sightseeing services.
• "Z" permit - Specialized services not offered to the general public, namely, transportation incidental to another business; transportation under contract with industrial and business firms, governmental agencies, and private schools; and transportation of agricultural workers to and from farms.

How do I apply for a PSC?

Applicants for a PSC certificate must file a formal application in accordance with the Commission's Rules of Practice and Procedure. (Note in particular the requirements for certificate applications contained in Rule 3.3.) Certificates are granted by a formal decision of the Commission. The decision granting a certificate will typically give the applicant 120 days to make various required filings with the License Section (posting proof of insurance via efile insurance online, drug and alcohol testing information, etc.). Once these requirements are met, the applicant is sent a letter advising that operations may commence.