CPUC Rules and Regulations
on Passenger Carriers
TRANSPORTATION ENFORCEMENT SECTION
CONSUMER PROTECTION AND SAFETY DIVISION
California Public Utilities Commission (CPUC)
TES – General Info
Mission Statement
 To ensure that passenger and household goods
carriers operate in conformance with
consumer protection and safety requirements
and compete fairly in the marketplace by
investigating and prosecuting carriers who
violate the law.
PUC Investigators status
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Designated under Penal Code Section 830.11
May exercise the powers of arrest
Serve search warrants
Receive criminal history information from the
Department of Justice.
2CPUC
CPSD/STL
Who Do We Regulate?
 Passenger carriers
 Limousines, airport shuttles, sightseeing
services, charter and scheduled bus
operators.
 Household Goods Carriers (commonly
referred to as "movers" or "moving companies."
 Transport used household goods and
personal effects (residential moves)
(Note: office moves only – DMV jurisdiction)
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3CPUC
CPSD/STL
Carriers Population
 Northern Unit
 Passenger Carriers
 4,475 (All Status)
 2,230 (Active and Suspended)
 Moving Companies
 889 (All Status)
 454 (Active and Suspended)
 Southern Unit
 Passenger Carriers
 7,961 (All Status)
 3,534 (Active and Suspended)
 Moving Companies
 1,138 (All Status)
 524 (Active and Suspended)
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4CPUC
CPSD/STL
PASSENGER STAGE
CORPORATION (PSC)
 Operates on a fixed route,
scheduled service (scheduled
bus operators), or an on-call,
door-to-door "share-the-ride"
service [airport shuttles]
 Provides transportation
service to the general public on
an individual fare basis.
 File tariffs setting forth their
fares, the level of which is
subject to Commission’s
oversight.
 Waybills are not required.
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5CPUC
CPSD/STL
Sample PSC certificate (CPCN)
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6CPUC
CPSD/STL
Sample PSC certificate (CPCN)
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7CPUC
CPSD/STL
Sample PSC certificate (CPCN)
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8CPUC
CPSD/STL
Sample PSC certificate (CPCN)
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9CPUC
CPSD/STL
CHARTER-PARTY
CARRIER (TCP)
 Limos, airport shuttles,
tour buses, sightseeing
services, charters, party
buses.
 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.
 Level of charges is not
regulated by PUC.
 Waybills are required.
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10CPUC
CPSD/STL
Sample
of TCP
authority
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11CPUC
CPSD/STL
Types of TCP
 6 types of authorities – subject to renewal ($100) every 3 years.
 Certificates - A, B, C (transferable)
 Class A – statewide. No restrictions on seating capacity. Can charge
individual fare only when performing round trip-sightseeing service.
 Class B – restricted to 125 air-miles from terminal only if using a vehicle
that does not meet definition of a bus (seating capacity of 11 or more).
 Class C – transportation is incidental to commercial balloon operations,
commercial river rafting or skiing.
 Permits - P, S, Z (non-transferable)
 Class P – restricted to vehicles under 15-passenger seating capacity
(i.e.14 passengers plus driver).
 Class S – round trip sightseeing only. Passengers must be brought back
to point of origin. Can charge individual fare (per head).
 Class Z – specialized transportation services not offered to the general
public [incidental to another business, under contract w/industrial &
business firms, governmental agencies, & private schools; and
transportation of agricultural workers to and from farms].
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12CPUC
CPSD/STL
5353 Exemptions from TCP requirement
(a) Transportation service rendered wholly within the corporate limits of
a single city or city and county (SF) and licensed or regulated by
ordinance.
(b) Transportation of school pupils conducted by or under contract with
the governing board of any school district entered into pursuant to
the Education Code.
(d) Transportation by employer of farm employees to and from farms, or
by a nonprofit agricultural cooperative association, and at no cost to
employees.
(f) Passenger vehicles carrying passengers on a noncommercial (nonprofit) enterprise basis.
(i) Vehicles used exclusively to provide medical transportation,
including vehicles employed to transport developmentally disabled
persons for regional centers.
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13CPUC
CPSD/STL
5353 Exemptions from TCP requirement
(k) Subject to CVC § 34507.6, transportation service provided
by rental car operator to shuttle its customers to or from
its facility:
 vehicles owned or leased by that operator
 at no charge other than the automobile rental charges
(l) Subject to CVC §34507.6, transportation service provided
by hotel, motel operator to shuttle its guests :
 between its facility and an air, rail, water, bus passenger terminal,
any place of entertainment or commercial attraction, including, but
not limited to, facilities providing snow skiing.
 vehicles owned or leased by hotel/motel operator
 without charge other than as may be included in lodging charges
 Cannot provide any round trip sightseeing service without a
permit, as required by subdivision (c) of Section 5384.
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14CPUC
CPSD/STL
5353 Exemptions from TCP requirement
(n) (1) Transportation services incidental to operation of a youth
camp that are provided by either a nonprofit organization that
qualifies for tax exemption under Section 501(c)(3) of the
Internal Revenue Code or an organization that operates an
organized camp, as defined in Section 18897 of the Health and
Safety Code, serving youth18 years of age or younger.
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Register as a private carrier pursuant to Section 4005.
Participate in a pull notice system (CVC §1808.1)
Undergo annual bus terminal inspection with CHP (CVC §34501).
Carry general liability insurance coverage for vehicles
Minimum range from $500K to $5M depending on seating capacity
and whether youth camp or organized camp
15CPUC
CPSD/STL
Licensing Requirements
 Filing fee ($1,000 per authority except Class A - $1,500)
 File evidence of public liability (PLPD) insurance
coverage. Minimum required (excluding driver):
 7 passengers or less
- $ 750,000
 8 thru 15 passengers
- $ 1.5 million
 16 passengers or more - $ 5 million
 File evidence of workers’ compensation (WKCP)
insurance coverage if engage workers.
 Participate in the DMV Employer Pull-Notice System.
 Participate in the PUC's (or FED’s - 16 seats) drug and
alcohol testing program.
 Undergo a CHP safety inspection (vehicle seating 11 or
more including the driver.)
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16CPUC
CPSD/STL
Regulatory Authorities
 Public Utilities Code
 Charter-Party Carriers’ Act (§§ 5351-5420)
 §5411 – any violation of this act is a misdemeanor.
 provides criminal, civil, and Commission-imposed
administrative penalties for a violation, or aiding in the
violation, of the Act.
 penalties per offense ranges between $1,000 and $5,000
(administrative, civil or criminal)
 misdemeanor offenses also provide for imprisonment in
county jail (3 months - 1 year)
 Passenger Stage Corporations (§§ 1031–1045)
 § 1037 – any violation of this chapter is a misdemeanor.
 Other provisions of law provides for penalties of $500 to
$20,000 per offense for any public utility, which include PSC
(§ 2107).
 Household Goods Carriers’ Act (§§ 5101-5335)
 Commission General Orders (115-F; 157-A; 157-D)
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17CPUC
CPSD/STL
Waybill
Requirement
(TCP only – GO 157-D)
§ 5371.4(h) - Driver shall show waybill
to any PUC or airport enforcement
officer, or any official of city, county, or
city & county authorized to inspect
waybills
 GO 157-D - Part 3.01 - Waybill shall
show:
1.
2.
3.
4.
5.
6.
7.
8.
9.
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Carrier Name and TCP number.
Vehicle License plate number.
Driver’s name.
Name & address of person
requesting or arranging charter.
Time & date charter was
arranged.
How charter was arranged
[phone or written contract].
Number of persons in charter.
Name of 1 passenger or traveling
party.
Origin and Destination.
18CPUC
CPSD/STL
Vehicle ID
(GO 157-D/158-A)
Part 4.03 - Carrier’s name
& vehicle number shall be
displayed on each side of
vehicle, readable at 50
feet in daylight.
Exception: Vehicle leased
< 30 days OR seats not
more than 15 including
driver. [PSC–no exception
provision on seating
capacity]
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19CPUC
CPSD/STL
TCP/PSC Number
(GO 157-D/158-A)
Part 4.04 – PSC/TCP#
(with/Suffix) shall be
shown in full on each
side of vehicle readable
at 50 feet in daylight.
Exception for TCP only:
Vehicle seats not more
than 15 including driver,
shall display on front &
rear bumpers.
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20CPUC
CPSD/STL
Decal
Requirement
(GO 157-D)
Part 4.05 – Decals shall
be displayed on lower
right hand corner of rear
bumper for vehicle seats
not more than 8 persons
including the driver.
Vehicle seats 9-15
persons, including driver
may display decal.
No decal requirement
for PSC.
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21CPUC
CPSD/STL
Livery Plate
Requirement
TCP only- (GO 157-D)
Part 4.06 – Livery plates shall
be displayed in lieu of decals
for any sedan or sport utility
vehicle, of either standard or
extended length, with seating
capacity of not more than 10
including driver [§ 5371.4(i)].
Carrier shall remove plate &
surrender to PUC upon
cancellation, suspension or
revocation of permit.
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22CPUC
CPSD/STL
Temporary Livery
Plate Letter
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Temporary Decal Letter
23CPUC
CPSD/STL
Enforcement Tools
 Administrative Actions
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Cease and Desist Letter
Official Notice
Overcharge Letter
Administrative Citation (up to $20,000 fine assessed)
Order Instituting Investigation / Order To Show Cause
(OII/OSC)
 Civil Actions
 Temporary Restraining Order / Injunction
 Telephone Disconnection
 Criminal Prosecutions
 Joint efforts with law enforcement & regulatory agencies
 Joint inspection at airports and major area of interests
 Sting operations
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24CPUC
CPSD/STL
License Status Check
http://www.cpuc.ca.gov
 Transportation Tab; Passenger carriers
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25CPUC
CPSD/STL
License Status Check
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26CPUC
CPSD/STL
Evidence required to charge
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Waybills (take picture)
Business cards
Picture of driver, vehicle, driver CDL
Vehicle information (License Plate, VIN#)
Evidence of compensation (receipt, credit card slip)
First hand observation of money exchanging hands (if possible)
Narrative of interview of driver and passenger
Fare charge/paid; Method of payment
Pickup point
Relationship between driver/passenger
Who does driver work or drive for?
27CPUC
CPSD/STL
Vehicle Impound - § 5411.5
Provides that when a peace officer [as defined in Chapter 4.5 (commencing
with Section 830) of Title 3 of Part 2 of the Penal Code]
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(a) arrests a person for operation of a charter-party carrier of
passengers without a valid certificate or permit, the officer may
impound and retain possession of the vehicle.
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(d) vehicle shall immediately be returned to the owner if the infraction
or violation is not prosecuted or is dismissed, the owner is found not
guilty of the offense, or it is determined that the vehicle was used in
violation of § 5411 without owner’s knowledge and consent. Vehicle
shall be returned to owner upon payment of any fine ordered by the
court. If vehicle is seized due to a violation of a person other than owner
of vehicle, the vehicle shall be returned to owner after all impoundment
fees are paid.
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(f) No peace officer may impound any vehicle owned or operated by a
nonprofit organization exempt pursuant to Section 501(c)(3) of the
Internal Revenue Code, or a rented motor vehicle that is being operated
by a hired driver of a charter-party carrier of passengers that is
providing hired driver service.
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28CPUC
CPSD/STL
Bus Impound - § 5387
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(a) Unlawful for owner of a TCP carrier to permit operation of vehicle without
PUC authority.
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(c) (1) PUC shall permanently revoke authority or bar a carrier from receiving
authority if carrier commits any of these:
(A) Operates a bus without TCP authority.
(B) Operates a bus with a suspended TCP for CHP suspension [§ 5378.5].
(C) Cited for 3 or more public liability insurance violation within 2yr period.
(D) Operates a bus w/suspended TCP & lapse in public liability insurance.
(E) Knowingly employs a bus driver w/no valid CDL of proper class,
passenger vehicle endorsement or required certificate.
(F) Has 1 or more buses improperly registered w/DMV.
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(d) CHP officer may impound bus of TCP for 30 days [CVC 14602.9] if officer
determines any of the following violations occurred while bus driver was
operating bus:
(1) Driver was operating bus without TCP authority.
(2) Driver was operating bus w/ suspended TCP authority.
(3) Driver was operating bus without current & valid CDL of proper class, a
passenger vehicle endorsement or required certificate.
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29CPUC
CPSD/STL
Statutes to cite
Operations – all citations should also cite § 5411 – any
violation of the Public Utilities Code is a misdemeanor
 Never held a permit with PUC
 § 5371 – charter-party carriers
 § 1031 – passenger stage corporation
 Permit is suspended, revoked, expired or denied.
 § 5379 – charter-party carriers [TCP]
 § 1045 – passenger stage corporation [PSC]
Advertising without a permit [Unlicensed, suspended,
revoked, expired, denied].
 § 5414.5 [TCP]
 § 1034.5 [PSC]
 Forms of advertisements
 Business cards, waybills, flyers, websites, vehicles
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30CPUC
CPSD/STL
Serving of alcohol - § 5384.1.
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The driver shall ascertain whether any passenger is under the age of 21 years.
If any passenger is <21 years old, the driver shall read to the passengers a
statement:
 consumption of any alcoholic beverage in the vehicle is unlawful
 alcoholic beverage may not be transported in the passenger compartment of
vehicle
 alcoholic beverage is required to be carried in the trunk or other locked
compartment
 if during the course of ride any minor is found or have been consuming any
alcoholic beverage, contract will be terminated,& customer will be brought
back to the point of origin of the ride.
Driver shall require every passenger <21 years old to sign the statement.
Limousine operator shall retain the signed statement for 3 years.
Any failure of a driver to comply with this section that results in the conviction
of the driver of a violation of CVC §23225, shall be subject to the penalties
prescribed in PUC §5384.5.
Notwithstanding any other provision of law, this section does not apply to the
driver of any bus, taxicab, or van, and it does not prohibit a parent or legal
guardian from consuming alcoholic beverages in a limousine for hire while
accompanied by his or her minor children.
31CPUC
CPSD/STL
TCP Z vs Private Carrier
□ Company providing transportation
incidental to its primary business, in which
it receives compensation directly or
indirectly :
□ For Profit – TCP Z
□ Non profit – Private carrier
[Non profit – exempt for TCP requirements - § 5353 (f) Passenger
vehicles carrying passengers on a noncommercial enterprise basis]
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32CPUC
CPSD/STL
What is a Private Carrier?
Private Carriers of Passengers Registration Act [§ 4000]
□ A not-for-hire motor carrier, as defined in § 408 of the
Vehicle Code, who transports passengers and is
required to obtain a carrier identification number
pursuant to § 34507.5 of the Vehicle Code, but does not
include persons providing transportation services
specified in subdivision (k) or (l) of § 5353 of the Public
Utilities Code [§ 4001]
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33CPUC
CPSD/STL
Types of Complaints - PSG
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Unlicensed operations (border, airport, intercity)
Advertisement
Solicitation
Workers’ Compensation
No Airport permit
Underinsured vehicles
Service
General Order (GO 157/158) violations
34CPUC
CPSD/STL