Except as provided in subsection (b) of this section, a motor carrier permit is required for a passenger motor vehicle used in the transportation of persons for hire. A motor carrier permit is not required for: a motor vehicle used exclusively for the transportation of pupils to and from public or private schools; a motor vehicle operated for a period of not more than 3 months in any registration year in the transportation of persons employed at a cannery located in a county; taxicabs; public transportation for hire authorized to operate on the boardwalk in Ocean City; a vanpool operation as defined in § 11–175.1 of the Transportation Article; a local public transportation system established under a law enacted by the local governing body of a county or municipal corporation; subject to subsection (c) of this section, a motor vehicle used by a privately owned transportation company exclusively to provide transportation system services under a contract with the governing body of a county or municipal corporation or with a unit of State government; shuttle bus service operated by the University of Maryland, College Park Campus for students enrolled at the University of Maryland, College Park Campus and, in exchange for payment by a municipal corporation in which the University of Maryland, College Park Campus operates shuttle bus service, transportation service on the shuttle bus to residents of the municipal corporation; or transportation services that a nonprofit organization provides through the use of a volunteer driver and the volunteer driver’s personal vehicle. A privately owned transportation company that provides transportation system services under a contract with the governing body of a county or municipal corporation or with a unit of State government shall obtain a motor carrier permit for motor vehicles that the company does not use exclusively to provide transportation system services under a contract with the governing body of a county or municipal corporation or with a unit of State government. The public duties of a common carrier may not be imposed on a person with respect to a vehicle for which a motor carrier permit is required under this section, if the vehicle is not actually engaged in public transportation.

A motor carrier permit may not be issued unless the Commission, after considering the number of vehicles the applicant will use, the rate the applicant will charge, the potential demand, the qualifications of the applicant, and any other factors that the Commission considers relevant, determines that the issuance of a motor carrier permit will be best for the public welfare and convenience.

Subject to subsections (b) and (c) of this section, the Commission may subject a motor carrier permit to terms and conditions that the Commission considers appropriate. The duration of a motor carrier permit may not exceed 20 years. The Commission may authorize seasonal motor carrier permits for a part of the year.

The Commission may suspend, revoke, or subsequently deny a motor carrier permit if the holder violates a provision of this division.

A route or schedule of a motor vehicle for which a motor carrier permit is granted may not be changed or abandoned without written permission from the Commission. The Commission may only grant permission under paragraph (1) of this subsection if the Commission finds that the public welfare and convenience are not prejudiced by the change. Notwithstanding paragraph (1) of this subsection, the holder of a motor carrier permit may temporarily operate substitute or reserve vehicles, when necessary in an emergency, to maintain the required schedules over the holder’s route. This subtitle does not limit the power of a municipal corporation to adopt reasonable traffic regulations, including the power to: designate streets; and prohibit the use of certain streets or the parking of vehicles on those streets if the use or parking may threaten public safety or unduly congest traffic.

The owner and operator of an intrastate motor bus carrier shall prohibit the smoking of tobacco products while the bus is in public service. A person may not smoke tobacco products on a bus of an intrastate motor bus carrier. The Commission may adopt regulations to carry out the provisions of this section. A person who violates a provision of this section is subject to a civil penalty not exceeding $25.

This section applies to a motor carrier providing transportation for hire by or through contract with a public authority, or a federal, State, district, or municipal transportation agency. A motor carrier subject to this section: is also subject to §§ 5–101 and 5–304 of this article; and except as provided in § 9–201(b)(7) of this subtitle, shall obtain a motor carrier permit under § 9–201 of this subtitle. A motor carrier permit issued to a motor carrier subject to this section may be: subject to conditions under § 9–203 of this subtitle; and suspended, revoked, or subsequently denied under § 9–204 of this subtitle. Except as provided in this section, the provisions of this division do not apply to a motor carrier subject to this section.

This section does not apply to a motor coach that is licensed by the Commission to provide transportation of persons for hire. A nonprofit entity that owns and operates a motor coach with a capacity of at least 30 passengers and gross vehicle weight rating of at least 32,000 pounds shall obtain a license for the motor coach from the Commission. The nonprofit entity shall have the motor coach inspected for safety every 12 months by an authorized Maryland inspection station. A motor coach that is licensed under this section and only provides service for or on behalf of a nonprofit entity is not subject to tariffs or rate making under this division.