(a) This section applies only to a school bus that:
(1) is owned by a motor carrier required to be registered under Subchapter B;
(2) is in compliance with the requirements of Chapter 548; and
(3) is operated exclusively within the boundaries of a municipality by a person who:
(A) holds a driver's license or commercial driver's license of the appropriate class required for the operation of the school bus; and
(B) meets the requirements of Section 521.022.
(b) The owner of a school bus shall maintain liability insurance in the amount of at least $500,000 combined single limit.
(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.