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PSV

Voluntary Sector & Charitable Organisations

Introduction
Under the Transport Act 1985, a Public Service Vehicle (PSV) Operators licence is required by establishments running their own vehicles, where any payment is made towards the cost of those being carried (i.e. where it is used for "hire or reward"). Drivers of such vehicles also require a PCV (passenger carrying vehicle) entitlement on their driving licence.
Non-profit making organisations may be able to operate under a Section 19 Permit rather than a PSV Operators licence, provided certain conditions are met.

Hire or Reward is where any payment in cash or kind, which is directly or indirectly for the carrying of passengers and gives a right to be carried. The payment may be considered for "hire or reward" even though it is not directly related to particular journeys. Examples of this are if the payment is;

Vehicles adapted to carry 9 or more passengers for "hire or reward" are treated as public service vehicles and need a PSV Operators licence.

There are two types of permit structures related to this particular subject and there are links provided from this page explaining both. These permits are referred to as Section 19 and section 22 permits. A brief explanation concerning permits and requirements is laid out below.

Why are Permits necessary?
Vehicles that carry paying passengers are called Public Service Vehicles (PSVs). Ordinarily, any organisation that accepts any sort of payment for providing transport to passengers must obtain a PSV Operator's licence from the relevant Traffic Commissioner. In most cases, drivers of such vehicles will also require a Passenger Carrying Vehicle (PCV) entitlement on their driving licence.
Under the Section 19 permit scheme, non-profit making organisations can make a charge to passengers for providing transport without the need to obtain a PSV Operator's Licence and, in most cases, without having to comply with PCV driver licensing requirements. However, Section 19 permits cannot be used to provide services to the general public or on journeys outside the UK.

What qualifies as a non-profit making body?
Those applying for a Section 19 permit must satisfy the issuing body that the bus services are not run with a view to profit nor incidentally to an activity which is itself carried on for profit. Organisations that are registered as charities usually qualify. However, any profitmaking business would not usually qualify regardless of how it applies its profits or income surpluses.

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What is meant by 'Payment for Providing Transport'?
If no charge is made for the use of the bus at all, no permit is required. However a charge covers more than just the payment of a fare. Any payment which gives a person a right to be carried on a vehicle (the legal term for this being "hire or reward") would require the operator to hold either a Section 19 permit or PSV Operator's Licence.
Hire or reward takes place if the journey is organised in a way that goes beyond the bounds of mere social kindness. Hire or reward would include, for example, someone who provided frequent school transport for his/her children and friends in return for contributions to running costs. The payment can be made by the person himself or on his behalf by someone else. The payment may be direct (such as a fare) or indirect (as would be the case for example where a membership subscription to a club or a payment for a hotel room includes the right to use the bus). Although indirect payments are usually made in respect of other services (rather than specifically for the transport) they are still viewed by the courts as hire or reward because anyone who had not made the payment would have no right to be carried.

Drivers Hours Rules
The EC drivers' hours and tachograph rules do not apply to drivers of minibuses with less than 17 passenger seats when operated solely within the UK, but they do apply to drivers of minibuses with 9 or more passenger seats when undertaking an international journey. These rules prescribe maximum limits on driving time and minimum requirements for breaks and rest periods, as well as requiring the fitting and use of tachographs.

Minibuses with less than 17 passenger seats normally fall within the scope of the UK domestic drivers' hours rules, unless they are being used for private use or they are being driven by volunteer drivers. There are no record keeping requirements under these rules.

It is important to note here that all voluntary drivers should be aware of the risks to passenger safety which can result from driving when tired. It is not sensible to embark on a long trip after a full day's work, whether that work involves driving or not. Breaks should be built into journey planning - with the aim being to have a break from driving of at least 10 minutes every two hours.

Vehicle Maintenance
Even if buses operate under a permit they are still PSVs and subject to spot checks by Vehicle Inspectorate examiners on their roadworthiness. It is imperative that all vehicles have regular maintenance checks. If the vehicle is found to be unfit, a Prohibition Notice could be issued to prevent it being driven. Failure to obey such a notice is against the law and could lead to a heavy fine.
In the event of persistent infringements on maintenance, the organisation (or individual) involved would run the risk of losing permit(s) allocated to it.

Legal Responsibility
It is the responsibility of the individual (or organisation) to ensure that services operate within the law and prosecution can follow if they do not. Traffic Area Offices can provide general guidance on the eligibility for a permit, but not the legality of individual operations under the permit. It is therefore imperative that independent legal advice is sought if there is any doubt about the legal status of an operation. Operating without the appropriate licence can also invalidate insurance.

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