1. (a) This section applies only to a school bus that:

   1. (1) is owned by a motor carrier required to be registered under Subchapter B;
   2. (2) is in compliance with the requirements of Chapter 548; and

   3. (3) is operated exclusively within the boundaries of a municipality by a person who:

      1. (A) holds a driver's license or commercial driver's license of the appropriate class required for the operation of the school bus; and
      2. (B) meets the requirements of Section 521.022.
2. (b) The owner of a school bus shall maintain liability insurance in the amount of at least $500,000 combined single limit.
3. (c) In this section, "school bus" means a motor vehicle that is operated by a motor carrier and used to transport preprimary, primary, or secondary school students on a route between the students' residences and a public, private, or parochial school or day-care facility.

Added by Acts 2005, 79th Leg., Ch. 144 (H.B. 1018), Sec. 2, eff. May 24, 2005.