A quick disclaimer, Laws and regulations can change often and without notice (and we often don’t update our information right away), you’ll want to confirm the requirements to make sure Texas has not changed the requirements for For-Hire passenger transportation. Also, while we believe the information we receive is accurate, we make no guarantees and you’ll want to independently confirm. As of this post’s writing, here are the requirements for a Texas intrastate (in state).
If your bus is designed or used to transport over 15 passengers (including driver), albeit carriers 25 or less passengers (plus a driver, for a total of 26), the minimum insurance required to receive an intrastate TXMDV active number is $500,000. This amount is VERY likely too small for most bus operators due to the nature of hauling that many people and the size of the vehicle, albeit the state minimum reflects what the state requires.
If you have a bigger bus, one that is designed or used to transport 26 or more passengers (plus a driver), the insurance requirements are much higher at $5 million for commercial liability.
These amounts don’t include coverage for the bus (the State of Texas doesn’t care if you lose your bus) called physical damage. Nor does it include General Liability coverage (for when the bus isn’t moving and/or when a person is at your office or other location owned by the business).
Texas is one of the few (if only) states that doesn’t require workers’ compensation insurance, albeit given the nature of the job, an employer will most likely want to have this coverage to protect against liability if the employee gets hurt on the job.
The steps to get and register your bus business is to first obtain a valid USDOT number from the Federal Motor Carrier Safety Administration (often referred to as simply FMCSA). You can get a USDOT number at https://fmcsa.dot.gov/registration or you can call 800-832-5660
Once you have a USDOT, you can apply for a TxDMV Certificate number online at https://txdmv.gov/elinc
Both the FMCSA and the TxDMV information must match each other in order to complete the Texas authority application process.
Once you have your Texas Party Bus Operating Authority, you’re also required to maintain records to stay in compliance with Texas regulations.
As an intrastate motor carrier, you’re required to prepare and maintain complete and accurate records that verify your operations for a period of not less than two years and keep them available at your principal place of business. (Your driver’s time cards and logs must be maintained and retained for a period of no less than six months.)
Record Contents:
- Operational logs, insurance certificates (we can provide the certificates for you), documents to verify your operations, and proof of registration fee payments
- Records of services performed
- All certificate of title documents, weight tickets, permits for oversize or overweight vehicles and loads, dispacth records, or any other document that would verify the operations of the vehicle to determine the actual weight, insurance coverage, size, and/or capacity of the vehicle, and
- The original certificate of registration and registration listing, if applicable.
A notable exemption is if the vehicle is used to transport passengers and is operated by an entity whose primary function is not to transport passengers (ie – hotel shuttles, daycare cents, nursing home shuttles)