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Coding: Words which are struck through are deletions from existing law;
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Regular Session, 2014
SENATE BILL NO. 476
BY SENATOR GARY SMITH
COMMERCIAL REGULATIONS. Provides relative to driving school bond requirement
and cease and desist orders. (8/1/14)
AN ACT1
To enact R.S. 40:1462 and 1463, relative to driver training; to provide for bond2
requirements; to provide for cease and desist orders; and to provide for related3
matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 40:1462 and 1463 are hereby enacted to read as follows:6
§1462. Bond requirement7
A. Each private driving school shall execute a good and sufficient surety8
bond with a surety company qualified to do business in Louisiana as surety, in9
the sum of forty thousand dollars, if such surety bond is available for purchase.10
Such bond shall name the Department of Public Safety and Corrections, office11
of motor vehicles, as obligee and shall be subject to the condition that, if the12
private driving school or any of the private driving school's instructors fails to13
perform any services the school agreed to provide to a student or a student's14
parent, that student, or the parent in case the student is a minor, may recover15
the private driving school fees from the bond by filing a claim through the16
department against the bond. If the company fails to meet the conditions of the17 SB NO. 476
SLS 14RS-801 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
bond, the obligation of the surety shall remain in full force and effect. A private1
driving school with multiple locations shall furnish only a single forty thousand2
dollar surety bond.3
B. The surety bond furnished as required in this Section shall be4
delivered to and filed with the office of motor vehicles.5
§1463. Cease and desist orders6
A. It shall be unlawful for any person to operate a driving school or to7
offer instruction as a driving school instructor unless both the school and the8
instructor are currently licensed as a driving school by the department, or for9
a licensed driving school to engage in any prohibited activity.10
B. For the purpose of this Section, "prohibited activity" means:11
(1) Activity normally conducted by a driving school such as classroom12
instruction, behind the wheel instruction, issuing certificates of successful13
completion to be used by an applicant to apply for a driver's license, advertising14
as a licensed, authorized or approved driving school, or holding oneself out as15
an authorized or approved driving school or instructor without a license,16
authorization or approval by the department.17
(2) Activity conducted by a driving school or an instructor, whether18
licensed or not, in which a student of the school is requested to go to, or is taken19
to, a hotel room, a private residence, or any other location not appropriate for20
a person of the student's age.21
C. The office of motor vehicles may issue a cease and desist order to any22
person or business who is operating in violation of this Part. Any such cease23
and desist order shall be served either by regular mail with a proof of mailing24
issued by the United States Post Office, or by hand delivery by a representative25
of the department. If the cease and desist order is served by mail with proof of26
mailing, it shall be deemed delivered on the seventh calendar day after the date27
affixed by the post office on the certificate or proof of mailing. The28
presumption of delivery in this paragraph shall not apply if the post office29 SB NO. 476
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words in boldface type and underscored are additions.
returns the cease and desist order as undeliverable.1
D. If the person or business subject to the cease and desist order in this2
Section cannot be served, or does not comply with the cease and desist order,3
the department may file a petition for injunctive relief as provided in the Code4
of Civil Procedure in district court. There shall be no suspensive appeal or stay5
of an order or judgment of the district court granting the department a6
preliminary or permanent injunction.7
E. The department shall promulgate rules as it determines are necessary8
to aid in the implementation and enforcement of this Section, in accordance9
with the Administrative Procedure Act.10
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Alan Miller.
DIGEST
Gary Smith (SB 476)
Proposed law requires each private driving school to execute a surety bond in the sum of
$40,000, if such surety bond is available for purchase. The bond shall name the Department
of Public Safety and Corrections (DPSC), office of motor vehicles (OMV), as obligee and
shall be subject to the condition that, if the private driving school or any of the private
driving school's instructors fails to perform any services the school agreed to provide to a
student or a student's parent, the private driving school fees may be recovered from the bond
by filing a claim through DPSC against the bond. Private driving schools with multiple
locations shall be required to furnish only a $40,000 surety bond.
Proposed law requires the surety bond furnished to be delivered to and filed with OMV.
Proposed law provides that it shall be unlawful for any person to operate a driving school
or to offer instruction as a driving school instructor unless both the school and the instructor
are currently licensed as a driving school by the department, or for a licensed driving school
to engage in any prohibited activity.
Proposed law defines"prohibited activity" as:
(1)Activity normally conducted by a driving school such as classroom instruction,
behind the wheel instruction, issuing certificates of successful completion to be used
by an applicant to apply for a driver's license, advertising as a licensed, authorized
or approved driving school, or holding oneself out as an authorized or approved
driving school or instructor without a license, authorization or approval by the
department; or
(2)Activity conducted by a driving school or an instructor, whether licensed or not, in
which a student of the school is requested to go to, or is taken to, a hotel room, a
private residence, or any other location not appropriate for a person that age.
Proposed law provides for the procedure in which a cease and desist order may be issued. SB NO. 476
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law requires that the cease and desist order be served either by USPS regular mail
with a proof of mailing, or by hand delivery by a representative of DPSC. If the order is
served by mail with proof of mailing, it is deemed delivered on the seventh calendar day
after postmark. There is no presumption of delivery if the USPS returns the cease and desist
order as undeliverable.
Proposed law provides that if the person or business subject to the cease and desist order
cannot be served, or does not comply with the cease and desist order, DPSC may file a
petition for injunctive relief in district court. Further provides that there shall be no
suspensive appeal or stay of an order or judgment granting the DPSC a preliminary or
permanent injunction.
Proposed law provides that DPSC shall promulgate rules necessary to aid in the
implementation and enforcement of this Section, in accordance with the Administrative
Procedure Act.
Effective August 1, 2014.
(Adds R.S. 40:1462 and 1463)