"Commercial bus" means every motor vehicle designed or used for carrying passengers and their personal baggage and express for compensation, except:
(1) Taxicabs that:
(a) Are passenger vehicles with a passenger seating capacity that does not exceed five;
(b) Carry passengers for hire where destination and route traveled may be controlled by a passenger and the fare is calculated on the basis of any combination of an initial fee, distance traveled or waiting time;
(c) Are operated under a current license or permit issued by a city, county or other unit of local government where a permit or license is required for the operation of a taxicab; and
(d) Transport persons or property, or both, between points in Oregon.
(2) Vehicles commonly known and used as private passenger vehicles and not operated for compensation except in the transportation of students to or from school. [1983 c.338 §32; 1985 c.16 §12]