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Auto, Transportation & Dealer Bonds

Texas Intrastate Motor Transportation Broker Bond

State
Texas
Bond Type
Transportation Broker Bond

Overview

Texas keeps its own registration system for brokers who arrange intrastate freight: Chapter 646 of the Transportation Code prohibits a person from acting as a motor transportation broker — one who sells, offers for sale, or arranges transportation of cargo over Texas public roads for compensation — unless the person has registered with the state and filed a $10,000 bond. The statute conditions the bond on the broker performing its contracts, and the Texas Department of Motor Vehicles administers the registration through its motor carrier operations. Interstate brokerage is a separate, federal matter; Chapter 646 governs the in-Texas trade.

Who Needs This Bond?

You need this bond if you arrange transportation of cargo between points within Texas for compensation without hauling it yourself — the classic broker role, matching Texas shippers with Texas carriers. Chapter 646 defines a motor transportation broker as a person who sells or arranges for transportation over public roads for a profit, and it makes the registration-plus-bond combination the legal entry ticket to that business. Freight forwarders and brokers operating purely in interstate commerce fall under federal FMCSA rules instead; the Texas requirement covers the intrastate side.

What is this Bond For?

The statutory condition is contract performance: the bond is payable to the state and conditioned on the broker performing the contracts the broker enters for transportation services. If a broker takes payment to arrange a shipment and the contracted service is not performed — leaving a shipper or carrier holding the loss — the bond provides the financial recourse. It is protection for the people who do business with the broker, backed by the state's registration system; it is not insurance protecting the broker's own operation.

When is it Required?

The bond is due at registration: Chapter 646 bars acting as a motor transportation broker without the registration and the accompanying $10,000 bond on file, so the bond must be executed before brokerage activity begins. It then has to stay in force for the registration to remain valid — a cancelled or lapsed bond takes the broker out of compliance with the chapter and out of the legal brokerage business until security is restored.

Where Does it Apply?

The requirement applies to motor transportation brokerage of cargo moving over public roads within Texas and is administered statewide through the Texas Department of Motor Vehicles' motor carrier registration operations. It is uniform across the state — no county or city variation — and it sits alongside, not in place of, the federal registration and bonding regime that applies if the same business also brokers interstate freight.

How to Buy Online

Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. The bond is written at the $10,000 amount Chapter 646 requires. Complete the short application, review the documents, and pay online; your executed bond is ready to file with your Texas motor transportation broker registration.

Why Bond Titan?

Bond Titan is powered by The Southern Agency, a licensed surety agency, and the statutory basis for this bond — the definition, the registration duty, and the $10,000 figure — is linked in the Official Sources section below to the Texas Legislature's official statutes site. Read Chapter 646 yourself, then complete your purchase online in minutes.

Official Sources

The requirements described on this page are verified against the official sources below.

Frequently Asked Questions

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