(a) Application. An application for licensure as a
driver education provider must be made on forms prescribed by the
department, and be accompanied by the appropriate fees. An application
for a branch driver education provider license must not have the same
physical address as the primary provider. A license application is
valid for one year from the date it is filed with the department.
(b) Bond requirements. In the case of an original or
a change of owner application, an original bond must be provided.
In the case of a renewal application, an original bond or a continuation
agreement for the approved bond currently on file must be submitted.
The bond or the continuation agreement must be executed on the form
provided by the department.
(c) Verification of driver education provider ownership.
In the case of an original or change of owner application for a driver
education provider, the owner must provide verification of ownership
to the department.
(d) Change of ownership of a driver education provider.
A change of ownership occurs when there is a change in the control
of the provider. The control of a provider is considered to have changed:
(1) in the case of ownership by an individual, when
more than 50 percent of the provider has been sold or transferred;
(2) in the case of ownership by a partnership or a
corporation, when more than 50 percent of the provider, or of the
owning partnership or corporation has been sold or transferred; or
(3) when the board of directors, officers, shareholders,
or similar governing body has been changed to such an extent as to
significantly alter the management and control of the provider.
(e) Purchase of a driver education provider.
(1) A person who purchases a licensed driver education
provider must obtain an original license or branch location license
as applicable.
(2) The purchaser must assume all refund liabilities
incurred by any former owner as well as the liabilities, duties, and
obligations under the enrollment contracts between the students and
any former owner before the transfer of ownership.
(f) New location or change of address.
(1) The department must be notified in writing of any
change of address at least fifteen (15) working days before the move.
(2) The driver education provider must submit the appropriate
change of address fee prior to the actual move.
(3) If a student is not willing or able to change locations,
a pro-rata refund (without deducting any administrative expense) must
be made to the student.
(g) Renewal of driver education provider license. An
application for the renewal of a license for a driver education provider
must be submitted before the expiration of the license and include
the following:
(1) the renewal fee;
(2) a current list of instructors at the school, if
applicable;
(3) an executed bond or executed continuation agreement
for the bond, currently approved by and on file with the department;
and
(4) if applicable, a current list of all motor vehicles
used for instruction.
(h) Denial, revocation, or conditional license. The
authority to operate a branch location ceases if a primary driver
education provider license is denied or revoked. The operation of
a branch location license may be subject to any conditions placed
on the continued operation of the primary driver education provider.
A driver education provider license for a branch location may be denied,
revoked, or conditioned separately from the license for the primary
location.
(i) Driver education provider closure.
(1) The driver education provider owner must notify
the department at least fifteen (15) business days before the anticipated
provider closure. In addition, the driver education provider owner
must provide written notice of the actual discontinuance of the operation
on the day of cessation of classes. A driver education provider must
make all records available for review to the department upon department
request.
(2) The department may declare a driver education provider
to be closed:
(A) when the provider no longer has the facilities,
vehicles, instructors, or equipment to provide training pursuant to
this chapter;
(B) when the provider has stopped delivering instruction
and training in driver education and has failed to fulfill contractual
obligations to its students;
(C) when the provider informs the department in writing
of its intention to no longer deliver instruction or training in driver
education and returns all unissued driver education certificates or
certificate numbers; or
(D) when the provider owner allows the license to expire.
(3) If a branch location closes and a student is not
willing or able to complete the training at the primary location,
a pro-rata refund (without deducting any administrative expense) must
be made to the student.
(j) A driver education provider must not state or imply
that a driver's license, permit, or DE-964 is guaranteed or assured
to any student or individual who will take or complete any instruction,
or enroll, or otherwise receive instruction from any driver education
provider.
(k) Contract site. An in-person driver education provider
may conduct a course at a contract site, upon execution of a legal
written agreement between the licensed driver education provider and
an authorized representative for the contract site to provide driver
education instruction. The course is subject to the same rules that
apply to the licensed driver education provider, including inspections
by department representatives. An on-site inspection is not required
prior to use of the site. The written agreement is subject to the
recordkeeping requirements under §84.81.
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