The Michigan Department of Transportation issues Motor Bus Certificate of Authorities to persons/entities that operate buses for-hire on Michigan roads and highways.

New!  Applications for these tasks are submitted and paid for online through the Michigan Business One Stop portal.

A. NAME OF PERMIT OR APPROVAL:

Motor Bus Certificate of Authority

B. STATUTORY AUTHORITY:

Motor Bus Transportation Act, Public Act 432 of 1982, as amended.MCL 474.101-139

C. APPLICABLE REGULATION:

Rules

Regulations: MCL 474.131 adopts certain Federal Motor Carrier Safety Regulations being 49 C.F.R. parts 382, 387, 390-393, 395-397 including appendices C, D, E, and G.

D. SUMMARY OF PERMIT/APPROVAL PROCESS:

 1.  Applicability (activities that require the permit)

The Motor Bus Transportation Act 432 PA 1982, as amended, requires any person engaged in the transportation by motor bus for hire upon the public highways of this state, either directly or through any device or arrangement, to first obtain a certificate from the Department of Transportation. A motor bus is defined as a self-propelled motor vehicle designed or used to transport more than 15 passengers and their baggage for hire upon any public highway of this state.

Some examples of operations generally requiring an intra-state bus authority:

• Charter and Tour operators.
• "For-Hire" school bus contractors hauling any type of passengers not going to or from school or home. (fieldtrips, summer camps, sporting events)
• Bus operators under contract to transport employees of another company.
• Regular Route Scheduled operations.
• Churches that use their buses to transport passengers that are not their members.
• Carriers that operate under contract to a government entity.
• Limousine companies that operate vehicles that seat more than 15 passengers including the driver.

Exemption of those that do not need an authority:

• Churches, private schools, civic organizations, scout groups, and other organizations that may purchase or lease buses for the private transportation of their respective groups.
• Companies that purchase and operate buses to transport their own employees.
• Professional musicians who use buses for concert tours.
• Buses operating by a transit or governmental agency, including school buses.

 2.  Pre-Application Requirements

Although some applicants choose to hire consultant assistance, it is a relatively easy for an individual to complete the process.

Carriers should first form a legal business entity by obtaining either a d.b.a. business license from a county or a corporate structure from the Michigan Department of Labor and Economic Growth at http://www.michigan.gov/dleg/0,1607,7-154-35299_35413_35426---,00.html

 3.  Application Submission Requirements

The following steps must be completed correctly in order to obtain a Certificate of Authority to operate as a motor carrier of intrastate passengers in the State of Michigan. Following completion of these steps and a passed safety inspection, a Certificate of Authority will be issued.

A. Applicant Information, part 1 The applicant must completely fill out the Applicant Information. Failure to provide the requested information may result in the return of your application. This application must include the following: 1) Certified copy of applicant's Articles of Incorporation or Articles of Organization or Certificate to Conduct Business under an Assumed Name, or Articles of Copartnership (as applicable). 2) Certified copy of applicant's Certificate to Conduct Business in Michigan (if incorporated in a state other than Michigan). If needed, please contact the Corporations & Securities Bureau at (517) 241-6400.

B. Equipment Vehicle Roster Submit an Equipment Vehicle Roster (form attached) listing the equipment to be operated by the applicant under the issued authority. Annual safety inspections conducted by other states/provinces may be used for carriers physically located outside the state of Michigan. Please call (517) 335-2574 for the current listing and instructions. Photocopies of current equipment inspections from the Michigan State Police (yellow and black school buses only) will be accepted. If the applicant's equipment has not been inspected by one of the above, upon receipt of (1) the letter of application, (2) equipment vehicle roster, (3) certificate of insurance, and (4) applicant filing fees, the applicant will be contacted by a MDOT safety inspector to arrange an appointment for the vehicle inspection. All revenue vehicles to be operated by the carrier must be listed on the vehicle roster and pass a state inspection before a certificate of authority will be granted.

C. Certificate of Insurance You must request your insurance company to submit an MDOT form No. 3007, Certificate of Insurance, to MDOT, certifying bodily injury and property damage protection of $5 million combined, as well as Michigan basic no-fault coverage. The name appearing on your insurance certificate must be identical to the legal name as shown on your application. Your insurance company may obtain blank 3007 forms from MDOT, by contacting this office at (517) 335-2574. Filings must be signed by the insurance company or authorized branch representative. The signature of an insurance agent or insurance agency personnel is not acceptable. NO OTHER TYPE CERTIFICATE OF INSURANCE FORM WILL BE ACCEPTED.

D. Applicant Filing Fees Submit a check made out to the "State of Michigan" for: A. Original applicant fee in the amount of $300. B. Annual registration fees for each motor bus listed on the equipment vehicle roster in the amount of $25 each. C. Modification or change to an existing certificate of authority in the amount of $25. Any of the above fees may be combined in one check.

 4.  Procedures and Time-Frame for Obtaining Permit or Approval

Processing of a completed application usually takes from 1 to 2 weeks. A carrier may not commence intrastate operations until the certificate and decals are issued. To avoid processing delays, please insure that all questions are answered, required documents are included, and the application is properly signed and verified.

 5.  Operational Requirements

Every motor carrier who holds a certificate of authority shall pay to MDOT an annual renewal fee equal to $25.00 times the number of motor buses used exclusively by the carrier between January 1 and the last day of February.

Each motor bus operated by the motor carrier shall pass an annual safety inspection which meets the department's specifications for safe operating character and condition.

Each motor carrier thru their insurance provider shall maintain and provide continuous insurance coverage as required by MCL 474.109.

 6.  Fees

New applications - $300.00 plus $25.00 per motor bus to be operated.

Annual Renews - $25.00 per motor bus to be operated provided there is a current valid safety inspection on file with the department.

Reinstated applications during the same calendar year - $300.00

 7.  Appeal Process

If the department denies an application for a certificate of authority, the department shall notify the applicant in writing of the reason(s) for the denial, and the applicant shall have 30 days form the date of denial to correct and deficiency and reapply without payment of additional application fee.

 8.  Public Input Opportunities

None

E. Contact Information:

Contact Us

Creation/Revision Date:

September 13, 2010