INTRASTATE MOTOR TRANSPORTATION BROKER Bond - Statewide in Texas

Brief Summary

If you arrange freight in Texas without your own motor carrier registration or federal broker authority, Texas law requires a bond of at least $10,000 on file with TxDMV before you act as a broker. A surety bond meets that requirement for an annual premium, and brokering without it is a criminal offense.

Texas Transportation Code section 646.003 requires a motor transportation broker to provide a bond of at least $10,000 to the Texas Department of Motor Vehicles before acting as a broker. The bond must be written by a bonding company authorized in Texas, be payable to the state or to a person the broker serves, and be conditioned on performance of the transportation contract. Brokers registered as motor carriers under chapter 643 or holding a federal permit under Title 49 are outside chapter 646.

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How to Apply for a INTRASTATE MOTOR TRANSPORTATION BROKER Bond:

• Check section 646.002 first. Chapter 643 motor carrier registration or a federal permit under Subtitle IV, Title 49 takes you outside chapter 646.
• Choose the bond amount. The statute sets a floor of $10,000.
• Legal business name and address exactly as they will appear on the TxDMV filing.
• Owner name, home address and Social Security number for the surety's credit review.
• Pay the premium and receive the executed bond.
• Provide the bond to TxDMV before arranging any shipment, with any bond review fee the department charges.

Detailed Information About the Texas INTRASTATE MOTOR TRANSPORTATION BROKER Bond:

Check the exception first

Transportation Code section 646.002 says chapter 646 does not apply to a broker that is registered as a motor carrier under chapter 643, or that holds a permit issued under Subtitle IV, Title 49, United States Code. If neither applies to you, the bond does.

Who counts as a broker

Section 646.001 defines a motor transportation broker as a person who sells, offers for sale, provides or negotiates for the transportation of cargo by a motor carrier operated by another person, or who aids or abets someone doing those things.

Amount and conditions

Section 646.003 sets the bond at no less than $10,000. TxDMV's rule at 43 Texas Administrative Code section 218.41 repeats that floor and spells out the conditions. The bond covers the faithful performance of the contracts or agreements of transportation and the honest and faithful performance of the broker in that capacity. Proceeds are payable to the State of Texas or to a person to whom the broker provides services. The statute also lets TxDMV charge a bond review fee that does not exceed the cost of the review.

Cancellation and penalties

The bond cannot expire or be cancelled until the 30th day after written notice is served on the principal and the department, either personally or by certified mail. Failing to provide the bond is a Class C misdemeanor under section 646.004.

Eligibility and Requirements for a Texas INTRASTATE MOTOR TRANSPORTATION BROKER Bond:

• Bond of at least $10,000.
• Bonding company authorized to do business in Texas.
• Payable to the State of Texas or to a person the broker provides services to.
• Conditioned on faithful performance of the transportation contracts and honest performance as a broker.
• No expiration or cancellation until 30 days after written notice to the principal and TxDMV.

Texas INTRASTATE MOTOR TRANSPORTATION BROKER Bond FAQs:

Official and Additional Resources for the Texas INTRASTATE MOTOR TRANSPORTATION BROKER Bond: