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Regular Session, 2014 ENROLLED
SENATE BILL NO. 476
BY SENATOR GARY SMITH
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 fail 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
bond, the obligation of the surety shall remain in full force and effect. A private18
driving school with multiple locations shall furnish only a single forty thousand19
dollar surety bond.20
B. The surety bond furnished as required in this Section shall be21
delivered to and filed with the Department of Public Safety and Corrections,22
office of motor vehicles.23
§1463. Cease and desist orders24
A. It shall be unlawful for any person to operate a driving school or to25
ACT No. 307 SB NO. 476 ENROLLED
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offer instruction as a driving school instructor unless both the school and the1
instructor are currently licensed as a driving school by the department, or for2
a licensed driving school to engage in any prohibited activity.3
B. For the purpose of this Section, "prohibited activity" means:4
(1) Activity normally conducted by a driving school such as classroom5
instruction, behind the wheel instruction, issuing certificates of successful6
completion to be used by an applicant to apply for a driver's license, advertising7
as a licensed, authorized, or approved driving school, or holding oneself out as8
an authorized or approved driving school or instructor without a license,9
authorization, or approval by the department.10
(2) Activity conducted by a driving school or an instructor, whether11
licensed or not, in which a student of the school is requested to go to, or is taken12
to, a hotel room, a private residence, or any other location not appropriate for13
a person of the student's age.14
C. The Department of Public Safety and Corrections, office of motor15
vehicles may issue a cease and desist order to any person or business which is16
operating in violation of this Section. Any such cease and desist order shall be17
served either by regular mail with a proof of mailing issued by the United States18
Postal Service, or by hand delivery by a representative of the department. If the19
cease and desist order is served by mail with proof of mailing, it shall be deemed20
delivered on the seventh calendar day after the date affixed by the post office21
on the certificate or proof of mailing. The presumption of delivery in this22
Subsection shall not apply if the postal service returns the cease and desist order23
as undeliverable.24
D. If the person or business subject to the cease and desist order in this25
Section cannot be served, or does not comply with the cease and desist order,26
the department may file a petition for injunctive relief as provided in the Code27
of Civil Procedure in district court. There shall be no suspensive appeal or stay28
of an order or judgment of the district court granting the department a29
preliminary or permanent injunction.30 SB NO. 476 ENROLLED
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E. The department shall promulgate rules as it determines are necessary1
to aid in the implementation and enforcement of this Section, in accordance2
with the Administrative Procedure Act.3
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: