What standards apply to charter bus operators in California?

What the Law Says

California law imposes strict licensing, safety, and operational standards on charter bus operators to protect passengers and the public.

Charter bus operators in California must obtain a Certificate of Public Convenience and Necessity (CPCN) from the California Public Utilities Commission (CPUC) before offering service. This applies to any motor carrier transporting passengers for compensation on a charter or contract basis.

Operators must maintain vehicles in safe operating condition, with inspections required at least every 12 months by a CPUC-certified inspector. Drivers must be at least 21 years old, hold a valid commercial driver’s license (CDL) with passenger endorsement, and pass a Department of Transportation (DOT)-required physical examination.

Liability insurance is mandatory: charter bus carriers must carry a minimum of $5 million in combined single-limit liability coverage for bodily injury and property damage arising from each accident.

Statutory Text

No person shall operate as a charter-party carrier of passengers without first having obtained a certificate of public convenience and necessity from the commission.

— Public Utilities Code, § 3901 — Charter-party carriers; certificate required

Statutory Text

Each charter-party carrier of passengers shall maintain liability insurance… in an amount not less than five million dollars ($5,000,000)… for bodily injury to or death of persons and for injury to property arising from a single accident.

— Public Utilities Code, § 3920 — Liability insurance; minimum amount

Statutory Text

Every motor carrier subject to this division shall cause each motor vehicle used by it to be inspected at least once every 12 months by an inspector certified by the commission.

— Public Utilities Code, § 3925 — Vehicle inspection

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