Gary Smith (SB 476) Act No. 307
New 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 fail 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.
Requires the surety bond furnished to be delivered to and filed with OMV.
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.
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.
Provides for the procedure in which a cease and desist order may be issued.
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.
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.
Provides that DPSC shall promulgate rules necessary to aid in the implementation and
enforcement of this Section, in accordance with the APA.
Effective August 1, 2014.
(Adds R.S. 40:1462 and 1463)