TCP License: Identifying the Different License Types

What is a TCP license type?

“Transportation Charter Party” or TCP, is a license required for any company that operates charter vehicles in the state of California. When applying for a TCP license you are required to select the license type you want to operate under. There are six different TCP license types to select from, type A, type B, type C, type P, type S, and type Z. Each TCP license type has its own rules and regulations mandated by the California Public Utilities Commission (CPUC). These rules and regulations include seating restrictions, mileage restrictions, and type of transportation services such as public transportation, private transportation, wine tours, sightseeing tours and so on.

Why is the TCP license type important?

Selecting the right TCP license type that best fits the transportation you plan to perform is crucial for your growing business. Once the TCP license type is selected and TCP application is submitted, CPUC does not allow you to change your TCP license type. You must take into consideration how you plan on operating and growing your business in the future to ensure that the TCP license type you select falls in line with how you will manage your business. If you need to change your TCP license type for any reason you will need to reapply for a new TCP and pay the government fee to CPUC again. 

What is the fee for the different types of licenses?

Each TCP license type has its own government fee.

• Type A: $1,500
• Type B: $1,000
• Type C: $1,000
• Type P: $1,000
• Type S: $1,000
• Type Z: $1,000

This government fee is paid directly to the CPUC when submitting the application. It is a one time fee if your application is approved. If for any reason the application is denied, you will need to reapply for a new application and pay this fee again. A TCP license is active for three years at a time. After three years you will need to file a renewal, however, the renewal fee is only $100, regardless of which license type you have.

What are the different TCP license types?

Each TCP license type has its own rules and regulations that must be followed. TCP license type A is more expensive than the remaining five because it has fewer restrictions and limitations which allow you to grow your business however you would like. However, each license type has its own advantages that will benefit you depending on the type of transportation you plan on performing.

• TCP License Type A:
  • Chartered service
  • You may operate vehicles of any seating capacity.
  • You may operate from any point to any point within California.
  • You may also conduct round-trip sightseeing tours and charge individual fares in doing so. A round-trip sightseeing tour means you can pick up passengers from one point, provide a tour and drop them back off at the same point.
  • Except for round-trip sightseeing, charges must be based on vehicle mileage, time of use, or a combination of both.
  • You may transfer your TCP to another company with a fee of $300.
• TCP License Type B:
  • Chartered service
  • You may operate vehicles of any seating capacity.
  • You may not pick up passengers more than 125 air miles (roughly 144 driven miles) away from your home terminal address. This mileage registration applies only to vehicles seating 10 or fewer passengers, including the driver. You may drop off passengers to any distance within California but you are restricted to how far you may drive to pick up your passengers.
  • You may transfer your TCP to another company with a fee of $300.
• TCP License Type C:
  • This license type only applies to you if you provide transportation services incidental to commercial balloon operations, commercial river rafting, or skiing where no additional compensation is provided for the transportation.
  • You may operate from any point to any point within California.
  • You may transfer your TCP to another company with a fee of $300.
• TCP License Type P:
  • Chartered service
  • You may operate only vehicles seating fewer than 16, including the driver. None of the vehicles you operate are allowed to seat over 16 passengers including the driver.
  • You may operate from any point to any point within California.
  • Charges based on vehicle mileage, time of use, or a combination.
  • You may not transfer your TCP with this license type.
• TCP License Type S:
  • This license type applies to you if you plan on only conduction round-trip sightseeing service. You are not permitted to provide a pickup / drop off service under this license type.
  • You may operate vehicles of any seating capacity.
  • You may operate from any point to any point within California.
  • You may charge individual fares as well as base charges on vehicle mileage, time of use, or a combination.
  • You may not transfer your TCP with this license type.
• TCP License Type Z:
  • This license type applies to you if you are considered a ‘specialized carrier’ and are not open to serve the general public, instead you 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. (Excluding commercial balloon operations, commercial river rafting or skiing).
  • You may operate vehicles of seating capacity.
  • You may operate from any point to any point within California.
  • You may not transfer your TCP with this license type.

Conclusion

When selecting the license type it is important to take into consideration how you will operate, the type of vehicles you will operate and the distances you plan on driving. License type C, S, and Z are specific license types that only apply to certain types of businesses. However, type A, B, and P are catered to a more traditional type of transportation business that allow you to provide pick-up / drop-off services.