2009 California Vehicle Code - Section 11100-11114 :: Chapter 1. Driving Schools And Driving Instructors

VEHICLE CODE
SECTION 11100-11114

11100.  (a) No person shall own or operate a driving school or give
driving instruction for compensation, unless a license therefor has
been secured from the department.
   (b) This section does not apply to the ownership or operation of
any school, or the giving of instruction, for the driving of
motortrucks of three or more axles which are more than 6,000 pounds
unladen weight.

11100.1.  No person who instructs others in the operation of
all-terrain vehicles shall represent that the instruction given
satisfies the requirements of Sections 38503 and 38504, and no
certificate shall be issued or awarded for participation in
all-terrain vehicle safety instruction unless the instruction is
conducted by a licensed all-terrain vehicle safety instructor who is
sponsored by an all-terrain vehicle safety training organization.
   This section shall become operative on July 1, 1988.

11100.5.  Whenever it is necessary for a driving school or
independent driving instructor to be certified by the Department of
Education, or any agency thereof, in order to participate in any
state or federal program directed at training or retraining persons
in occupational skills, licensing or certification by the Department
of Motor Vehicles pursuant to this chapter may operate to fully
qualify such school or instructor to participate in the program.
   Costs incurred by the department in exercising its functions
pursuant to this section shall be borne by the applicant for
licensing or certification, and the department may charge the
applicant a reasonable fee therefor.

11101.  (a) This chapter does not apply to any of the following:
   (1) Public schools or educational institutions in which driving
instruction is part of the curriculum.
   (2) Nonprofit public service organizations offering instruction
without a tuition fee.
   (3) Nonprofit organizations engaged exclusively in giving
off-the-highway instruction in the operation of motorcycles, if the
course of instruction is approved by the National Highway Traffic
Safety Administration and is not designed to prepare students for
examination by the department for an M1 or M2 drivers license or
endorsement.
   (4) Commercial schools giving only off-the-highway instruction in
the operation of special construction equipment, as defined in this
code.
   (5) Vehicle dealers or their salesmen giving instruction without
charge to purchasers of motor vehicles.
   (6) Employers giving instruction to their employees.
   (7) Commercial schools engaged exclusively in giving
off-the-highway instruction in the operation of racing vehicles or in
advanced driving skills to persons holding valid drivers' licenses,
except whenever that instruction is given to persons who are being
prepared for examination by the department for any class of driver's
license.
   (b) For purposes of this section, "racing vehicle" means a motor
vehicle of a type that is used exclusively in a contest of speed and
that is not intended for use on the highways.
   (c) (1) Nothing in this chapter shall be construed to direct or
restrict courses of instruction in driver education offered by
private secondary schools or to require the use of credentialed or
certified instructors in driver education courses offered by private
secondary schools.
   (2) For the purposes of this section, private secondary schools
are those subject to Sections 33190 and 48222 of the Education Code.

11102.  (a) A driving school owner, or the principal in an
all-terrain vehicle safety training organization, shall meet all of
the following requirements:
   (1) Maintain an established place of business open to the public.
No office or place of business shall be situated within 500 feet of
any building used by the department as an office, unless the owner
was established at that location on or before January 1, 1976.
   (2) Have the proper equipment necessary to give instruction in the
operation of the class of vehicles for which the course is designed,
which shall include, but not be limited to, training vehicles
equipped with all of the following:
   (A) An additional functional foot brake affixed to the right side
of the front floor.
   (B) A rearview mirror placed on the inside of the windshield on
the right side, which is additional to the factory-installed mirror
in the center of the windshield.
   (3) Procure and file with the department a bond of ten thousand
dollars ($10,000) executed by an admitted surety insurer and
conditioned that the applicant shall not practice any fraud or make
any fraudulent representation that will cause a monetary loss to a
person taking instruction from the applicant.
   (4) Meet the requirements of Section 11105.2 and, if the person is
the owner of a driving school, meet the requirements of Section
11102.5. If the owner is not the operator of the driving school, the
owner shall designate an operator who shall meet the requirements of
Section 11102.5.
   (5) (A) File with the department an instrument, in writing,
appointing the director as the agent of the applicant upon whom a
process may be served in any action commenced against the applicant
arising out of any claim for damages suffered by any person by the
applicant's violation of any provision of this code or any condition
of the bond.
   (B) The applicant shall stipulate in the instrument that any
process directed to the applicant, when personal service cannot be
made in this state after due diligence, may be served upon the
director or, if the director is absent from the office, upon any
employee in charge of the office of the director, in which case the
service is of the same effect as if served upon the applicant
personally. The applicant shall further stipulate, in writing, that
the agency created by the instrument shall continue during the period
covered by the license and so long thereafter as the applicant may
be made to answer in damages for a violation of this code or any
condition of the bond.
   (C) The instrument appointing the director as agent for the
applicant for service of process shall be acknowledged by the
applicant before a notary public.
   (D) If the licensee is served with process by service upon the
director, one copy of the summons and complaint shall be left with
the director or in the director's office in Sacramento or mailed to
the office of the director in Sacramento. A fee of five dollars ($5)
shall also be paid to the director at the time of service of the copy
of the summons and complaint.
   (E) The service on the director is a sufficient service on the
licensee if the plaintiff or the plaintiff's attorney also, on the
same day, sends notice of the service and a copy of the summons and
complaint by registered mail to the licensee. A copy of the summons
and complaint shall also be mailed by the plaintiff or his or her
attorney to the surety of the applicant's bond at the address of the
surety given in the bond, postpaid and registered with request for
return receipt.
   (F) The director shall keep a record of all process served upon
the director under this paragraph showing the day and hour of
service, and the director shall retain the summons and complaint
served on file.
   (G) If the licensee is served with process by service thereof upon
the director, the licensee has 30 days after that service within
which to answer any complaint or other pleading filed in the cause.
For purposes of venue, if the licensee is served with process by
service upon the director, the service is deemed to have been made
upon the licensee in the county in which the licensee has or last had
the licensee's established place of business.
   (b) The qualifying requirements referred to in this section shall
be met within one year from the date of application for a license, or
a new application, examination, and a fee shall be required.

11102.1.  If a deposit is given instead of the bond required by
Section 11102:
   (a) The director may order the deposit returned at the expiration
of three years from the date a driving school licensee has ceased to
do business, or three years from the date a licensee has ceased to be
licensed, if the director is satisfied that there are no outstanding
claims against the deposit. A judge of a superior court may order
the return of the deposit prior to the expiration of three years upon
evidence satisfactory to the judge that there are no outstanding
claims against the deposit.
   (b) If either the director, department, or state is a defendant in
any action instituted to recover all or any part of the deposit, or
any action is instituted by the director, department, or state to
determine those entitled to any part of the deposit, the director,
department, or state shall be paid reasonable attorney fees and costs
from the deposit. Costs shall include those administrative costs
incurred in processing claims against the deposit.

11102.5.  (a) A driving school operator shall meet all of the
following requirements:
   (1) Within three attempts, pass an examination that the department
requires on traffic laws, safe driving practices, operation of motor
vehicles, teaching methods and techniques, driving school statutes
and regulations, and office procedures and recordkeeping.
   (2) Pay the department a fee of one hundred dollars ($100), which
shall entitle the applicant to three examinations.
   (3) Be 21 years of age or older.
   (4) Have worked for an established licensed California driving
school as a driving instructor for a period of not less than 2,000
hours of actual behind-the-wheel teaching and, on and after July 1,
1973, have satisfactorily completed a course in the teaching of
driver education and driver training acceptable to the department,
except that the operator, including an owner who is also the
operator, of a driving school that exclusively teaches motorcycle
driving may, in lieu of the behind-the-wheel teaching requirement,
have worked for an established licensed California driving school as
a motorcycle driving instructor for not less than 300 hours of actual
motorcycle range and street teaching, have taught 300 hours of
actual motorcycle range and street instruction under the guidance of
the Motorcycle Safety Foundation, or have given comparable training
instruction that is acceptable to the department. This paragraph does
not apply to any person who is certified by the State Department of
Education as fully qualified to teach driver education and driver
training and has taught those subjects in the public school system
for not less than 1,000 hours.
   (b) The qualifying requirements referred to in this section shall
be met within one year from the date of application for a license, or
a new application, examination, and a fee shall be required.

11103.  A driving school owner and an independent instructor
licensed under Section 11105.5 shall maintain bodily injury and
property damage liability insurance on motor vehicles while being
used in driving instruction, insuring the liability of the driving
school, the driving instructor, and any person taking instruction in
at least the following amounts: one hundred fifty thousand dollars
($150,000) for bodily injury to or death of one person in any one
accident and, subject to the limit for one person, three hundred
thousand dollars ($300,000) for bodily injury to or death of two or
more persons in any one accident, and the amount of fifty thousand
dollars ($50,000) for damage to property of others in any one
accident.
   The owner or instructor shall file evidence of that insurance
coverage in the form of a certificate from the insurance carrier with
the department, and the certificate shall stipulate that the
insurance shall not be canceled except upon 30 days' prior written
notice to the department.

11103.1.  An all-terrain vehicle safety training organization shall
maintain bodily injury and property damage liability insurance on
motor vehicles while being used in all-terrain vehicle safety
instruction, insuring the liability of the organization, the
instructors, and any person taking instruction in at least the
following amounts:
   (a) One hundred fifty thousand dollars ($150,000) for bodily
injury to or death of one person in any one accident.
   (b) Subject to the limit specified in paragraph (1) for one
person, three hundred thousand dollars ($300,000) for bodily injury
to or death of two or more persons in any one accident.
   (c) Fifty thousand dollars ($50,000) for damage to property of
others in any one accident.
   This section shall become operative on July 1, 1988.

11103.2.  A driving school owner who employs one or more driving
instructors or other employees shall sign, under penalty of perjury,
a statement in a form determined and retained by the department
stating that the owner is in compliance with worker's compensation
requirements set forth in Section 3700 of the Labor Code.

11104.  (a) Every person, in order to qualify as a driving
instructor, as defined in Section 310.4, shall meet all of the
following requirements:
   (1) On and after July 1, 1973, have a high school education or its
equivalent and have satisfactorily completed a course in the
teaching of driver education and driver training acceptable to the
department.
   (2) Within three attempts, pass an examination that the department
requires on traffic laws, safe driving practices, operation of motor
vehicles, and teaching methods and techniques.
   (3) Be physically able to safely operate a motor vehicle and to
train others in the operation of motor vehicles.
   (4) Hold a valid California driver's license in a class
appropriate for the type of vehicle in which instruction will be
given.
   (5) Not be on probation to the department as a negligent operator.
   (6) Have a driving record that does not have an outstanding notice
for violating a written promise to appear in court or for willfully
failing to pay a lawfully imposed fine, as provided in Section 40509.
   (7) Be 21 years of age or older.
   (b) If an applicant cannot meet the requirements of paragraphs (3)
and (4) of subdivision (a) because of a physical disability, the
department may, at its discretion, issue the applicant a driving
school instructor's license restricted to classroom driver education
instruction only.
   (c) The qualifying requirements referred to in this section shall
be met within one year from the date of application for a license, or
a new application, examination, and a fee shall be required.

11104.3.  (a) An all-terrain vehicle safety instructor shall meet
all of the following requirements:
   (1) Be a person who has not been convicted of a crime involving an
act of dishonesty, fraud, or deceit with the intent to benefit
himself or herself or another substantially, or to injure another
substantially; or has not committed any act which, if done as an
all-terrain vehicle safety instructor, would be grounds for the
suspension or revocation of the all-terrain vehicle safety instructor'
s license. A conviction after a plea of nolo contendere shall be
deemed to be a conviction within the meaning of this section.
   (2) Have a high school education or its equivalent and have
satisfactorily completed a course of instruction training in
all-terrain vehicle safety as approved by the Off-Highway Vehicle
Safety Education Committee.
   (3) Within three attempts, pass the examination that the
department requires on off-highway vehicle laws, safe driving
practices, operation of all-terrain vehicles, and teaching methods
and techniques.
   (4) Be physically able to safely operate a motor vehicle and to
train others in the operation of all-terrain vehicles.
   (5) Hold a valid driver's license issued by this state or any
contiguous state.
   (6) Not be on probation to the department as a negligent operator
or the equivalent of that in the state that issued the driver's
license.
   (7) Have a driver record which does not have an outstanding notice
for violating a written promise to appear in court or for willfully
failing to pay a lawfully imposed fine, as provided in Section 40509
or 40509.5 or as provided in equivalent statutes in the state that
issued the driver's license.
   (8) Be 18 years of age or older.
   (9) Be sponsored by an all-terrain vehicle safety training
organization.
   (b) The qualifying requirements in this section shall be met
within one year from the date of application for a license, or a new
application, examination, and a fee shall be required.

11104.5.  Each applicant for a license as a driving school owner,
driving school operator, or driving instructor shall submit an
application to the department on the forms prescribed by the
department. The applicant shall provide the department with any
information concerning the applicant's character, honesty, integrity,
and reputation which the department may consider necessary.

11104.6.  Each applicant for a license or for renewal of a license
under this chapter shall submit an application to the department on
the forms prescribed by the department. The applicant shall provide
the department any information concerning the applicant's character,
honesty, integrity, and reputation which the department considers to
be necessary.
   This section shall become operative on July 1, 1988.

11105.  (a) The department shall issue a license certificate to each
driving school owner and to each driving school operator when it is
satisfied that the owner has met the qualifications required under
this chapter. The license shall be for a period of one year from
midnight of the last day of the month of issuance unless canceled,
suspended, or revoked by the department.
   (b) The license shall be renewed annually. The department shall
require all of the following for the renewal of the license:
   (1) Compliance with the provisions of Sections 11102 and 11105.2
for renewal of a driving school owner's license or Section 11102.5,
except paragraph (2) of subdivision (a) of Section 11102.5, for
renewal of a driving school operator's license.
   (2) Satisfactory completion of an examination as provided in
Section 11102.5 at least once during each succeeding three-year
period after the initial issuance of a license certificate.
   In lieu of any examination for renewal of the license, the
department may accept submission by the licensee of evidence of
continuing professional education. Professional education, as used in
this subdivision, means satisfactory completion of courses related
to traffic safety, teaching techniques, or the teaching of driver
instruction acceptable to the department or participation in
professional seminars approved by the department.
   (c) The department may issue a probationary license and
certificate subject to conditions to be observed by the licensee in
the exercise of the privilege granted. The conditions to be attached
to the exercise of the privilege shall not appear on the face of the
license or certificate but shall be such as may, in the judgment of
the department, be in the public interest and suitable to the
qualifications of the applicant as disclosed by the application and
investigation by the department of the information contained therein.
   (d) Upon notification of death of a driving school licensee the
department may issue a certificate of convenience to the executor,
executrix, administrator or administratrix of the estate of a
deceased holder of a validly outstanding certificate to conduct a
driving school, or if no executor, executrix, administrator or
administratrix has been appointed, and until a certified copy of an
order making such appointment is filed with the department, to the
surviving spouse or other heir otherwise entitled to conduct the
business of the deceased, permitting such person to conduct the
driving school for a period of one year from and after the date of
death, and necessary one-year renewals thereafter pending, but not
later than, disposal of the business and qualification of the vendee
of the business or such surviving spouse or heir for a license
certificate to conduct a driving school under the provisions of this
division. The department may restrict or condition the certificate
and attach to the exercise of the privilege thereunder such terms and
conditions as in its judgment the protection of the public requires.
   (e) The department shall not issue or renew a license certificate
unless it determines that the driving school owner has complied with
Section 11103.2.

11105.1.  (a) The department shall issue a license certificate to
each driving school instructor and to each all-terrain vehicle safety
instructor when it is satisfied that the person has met the
qualifications required under this chapter. The original instructor's
license and any instructor's license renewed pursuant to
subdivisions (b) and (c) is valid for three years from the date
issued unless canceled, suspended, or revoked by the department.
   (b) A licensee may apply for the renewal of an instructor's
license prior to the expiration date of the license. In no event
shall an instructor renew the license after the date of expiration.
   (c) The department shall require all of the following for the
renewal of the instructor's license:
   (1) Compliance with Section 11104, except subdivision (c) thereof,
for a driving school instructor, or compliance with Section 11104.3,
except paragraph (3) of subdivision (a) thereof, for an all-terrain
vehicle safety instructor, and, for either, compliance with Section
11105.2.
   (2) Satisfactory completion of an examination as provided in
Section 11104 or 11104.3, as applicable, at least once during each
succeeding three-year period after the initial issuance of an
instructor license certificate.
   In lieu of any examination for renewal of the license, the
department may accept submission by the licensee of evidence of
continuing professional education as defined in paragraph (2) of
subdivision (b) of Section 11105.
   (d) The department may issue a probationary instructor's license
and certificate subject to conditions to be observed by the licensee
in the exercise of the privilege granted. The conditions to be
attached to the exercise of the privilege shall not appear on the
face of the license or certificate, but shall be such as may, in the
judgment of the department, be in the public interest and suitable to
the qualifications of the applicant as disclosed by the application
and investigation by the department of the information contained
therein.
   (e) This section shall become operative on July 1, 1988.

11105.2.  (a) The fee for a license issued to a driving school owner
or to an all-terrain vehicle safety training organization shall be
as follows:
   (1) For the original license, or an ownership change which
requires a new application, except as provided by Section 42231, a
nonrefundable fee of one hundred fifty dollars ($150).
   (2) For the annual renewal of a license, a fee of fifty dollars
($50).
   (3) If an alteration of an existing license is caused by a firm
name change, a change in corporate officer structure, address change,
or the addition of a branch location, a fee of seventy dollars
($70).
   (4) For replacement of the license when the original license is
lost, stolen, or mutilated, a fee of fifteen dollars ($15).
   (b) The fee for a license issued to a driving school operator
shall be as follows:
   (1) For the original license a nonrefundable fee of one hundred
dollars ($100).
   (2) For the annual renewal of a license, a fee of one hundred
dollars ($100).
   (3) If an alteration of an existing license is caused by a change
in school name or location, or the addition of a branch location, a
fee of fifteen dollars ($15).
   (4) For replacement of the license when the original license is
lost, stolen, or mutilated, a fee of fifteen dollars ($15).
   (c) The fee for a license issued to a driving school instructor or
to an all-terrain vehicle safety instructor shall be as follows:
   (1) For the original license, except as provided by Section 42231,
a nonrefundable fee of thirty dollars ($30).
   (2) For the triennial renewal of a license, a fee of thirty
dollars ($30).
   (3) If an alteration of an existing license is caused by a change
in the instructor's employing school's name or location, or transfer
of the instructor's license to another employing school, a fee of
fifteen dollars ($15).
   (4) For the replacement of the instructor's license when the
original license is lost, stolen, or mutilated, a fee of fifteen
dollars ($15).
   (d) This section shall become operative on July 1, 1988.

11105.3.  Any school owner, operator, or instructor required to be
licensed under this chapter who fails to renew the license prior to
the expiration of the license in accordance with Sections 11105 and
11105.1 and whose license was not canceled, suspended, or revoked by
the department at the time of expiration, may reapply for an original
license pursuant to Section 11102, 11102.5, 11104, or 11104.3.
   This section shall become operative on July 1, 1988.

11105.5.  The department shall issue an independent driving
instructor's license to permit instruction in any city with a
population of less than 50,000, which does not have within it an
established licensed driving school, to any person who meets the
requirements of this chapter relating to instructor's and independent
instructor's licenses, even though such person is not an employee
of, or otherwise associated with or instructing through, a driving
school, except that no independent driving instructor's license shall
be issued to a person to instruct in counties with a population in
excess of 400,000. In addition, an independent instructor must at all
times be employed as an accredited teacher of automobile driver
education or automobile driver training under the provisions of the
Education Code.

11105.6.  (a) The department shall issue a license to an all-terrain
vehicle safety training organization when the department is
satisfied that the organization has met the qualifications required
under this chapter and has been approved and certified by the
Off-Highway Vehicle Safety Education Committee. The license shall be
valid for a period of one year from midnight of the last day of the
month of issuance unless canceled, suspended, or revoked by the
department.
   (b) The license shall be renewed annually. The department shall
require compliance with Sections 11102 and 11105.2 for the renewal of
the license.
   (c) This section shall become operative on July 1, 1988.

11106.  (a) Until the department is satisfied that the applicant has
met the requirements under this chapter, it may issue a temporary
permit to any person applying for a license issued pursuant to this
chapter. The temporary permit authorizes the operation of a school or
the giving of instruction for a period not to exceed 120 days while
the department is completing its investigation and determination of
all facts relative to the qualifications of the applicant for the
license.
   (b) A temporary permit valid for 30 days may be issued to any
applicant for an original instructor's license pending satisfactory
completion of the course required by subdivision (b) of Section 11104
or paragraph 2 of subdivision (a) of Section 11104.3, as applicable.
This subdivision does not extend the period of validity of any
temporary permit issued pursuant to subdivision (a).
   (c) The department may cancel a temporary permit when it has
determined, or has reasonable cause to believe, that the application
is incorrect or incomplete or the temporary permit was issued in
error. A temporary permit is invalid when canceled or when the
applicant's license has been issued or refused.
   (d) This section shall become operative on July 1, 1988.

11107.  (a) The department may refuse to issue a license certificate
under this chapter to any applicant to own or operate a school or to
any instructor when it finds and determines any of the following to
exist:
   (1) The applicant has not met the qualifications required under
this chapter.
   (2) The applicant was previously the holder of a license under
this chapter which was revoked or suspended, which was never reissued
by the department after revocation, or which was never reinstated
after suspension.
   (3) The applicant was previously the holder of an occupational
license issued by another state, authorizing the same or similar
activities of a license issued under this division; and that license
was revoked or suspended for cause and was never reissued, or was
suspended for cause, and the terms of suspension have not been
fulfilled.
   (4) The applicant has done any act or series of acts which would
be a cause for suspension or revocation under Section 11110.
   (5) If the applicant is a business, a business representative was
the holder of a revoked or suspended license previously issued under
this chapter which was never reissued after revocation or which was
never reinstated after suspension, or a business representative,
though not previously the holder of a license, has done any act or
series of acts which would be a cause for revocation or suspension
under Section 11110.
   (6) By reason of the facts and circumstances relating to the
organization, control, and management of the business, it is likely
that the policy or operation of the business will be directed,
controlled, or managed by a business representative who, by reason of
any act, series of acts, or conduct described in paragraph (4) or
(5), would be ineligible for a license and that, by licensing the
business, the purposes of this division would be defeated.
   (7) The applicant has knowingly made a false statement or
knowingly concealed a material fact in applying for a license.
   (8) The applicant, or one of the business representatives if the
applicant is a business, has been convicted of a crime, or has
committed any act or engaged in conduct involving moral turpitude,
which is substantially related to the qualifications, functions, or
duties of the licensed activity. A conviction after a plea of nolo
contendere is a conviction within the meaning of this section.
   (b) Upon refusal of the department to issue a license, the
applicant may demand, in writing, a hearing before the director or
the director's representative within 60 days after notice of refusal.
   The hearing shall be conducted pursuant to Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
   (c) A person whose license has been revoked, or whose application
for a license has been refused, may reapply for the license after a
period of not less than one year has elapsed from the effective date
of the decision revoking the license or refusing the application.

11108.  (a) Every person licensed under this chapter shall keep a
record showing all of the following:
   (1) The name and address and license number of the school.
   (2) The name and address of each person given instruction.
   (3) Excepting all-terrain vehicle safety training organizations,
the instruction permit number or driver's license number of every
person given instruction in the driving of a motor vehicle.
   (4) Excepting all-terrain vehicle safety training organizations,
the date any instruction permit was issued.
   (5) The name and instructor's license number of each instructor.
   (6) The particular type of instruction given and the date of the
instruction.
   (7) The amount of time devoted to each type of instruction.
   (8) The total number of hours of instruction.
   (9) The total cost to the student of the instruction.
   (b) The records shall be retained for at least three years and
shall be open to the inspection of the department at all reasonable
times, but shall be only for the confidential use of the department.
   (c) Whenever the licensee suspends or terminates the licensed
activity, the licensee shall surrender the records to the department
for examination not later than the end of the third day, excluding
Saturdays, Sundays, and legal holidays, after the date of suspension
or termination. The department may duplicate or make a record of any
information contained in the licensee's records. All of the licensee'
s records shall be returned to the licensee not later than 30 days
after the date of surrender.
   (d) Every all-terrain vehicle safety training organization shall
maintain records for all-terrain vehicle safety instructors who are
authorized to offer that organization's courses of instruction.
   (e) Each all-terrain vehicle safety instructor shall report the
information required under this section to the all-terrain vehicle
safety training organization no later than the 15th day of the month
following the date instruction was provided. Instructors shall notify
the organization, which shall, in turn, notify the department at
least 30 days in advance of providing a course of instruction, of the
time, date, location, and type of instruction to be given.
   (f) This section shall become operative on July 1, 1988.

11108.5.  (a) Every school owner licensed pursuant to this chapter
shall notify the department within 10 days of any change in the
ownership or corporate structure of the licensee.
   (b) Every school owner licensed pursuant to this chapter shall
immediately notify the department upon changing the site or location
of the school's established place of business.
   (c) Every school operator and every instructor licensed pursuant
to this chapter shall report to the department every change of
residence address within five days of the change.
   (d) This section shall become operative on July 1, 1988.

11109.  Every licensee under this chapter shall maintain all
vehicles used in driver training in safe mechanical condition at all
times.

11110.  (a) The department, after notice and hearing, may suspend or
revoke a license issued under this chapter if any of the following
occurs:
   (1) The department finds and determines that the licensee fails to
meet the requirements to receive or hold a license under this
chapter.
   (2) The licensee fails to keep the records required by this
chapter.
   (3) The licensee (A) permits fraud or engages in fraudulent
practices either with reference to an applicant for a driver's
license or an all-terrain vehicle safety certificate from the
department, or (B) induces or countenances fraud or fraudulent
practices on the part of an applicant.
   (4) The licensee fails to comply with this chapter or regulation
or requirement of the department adopted pursuant thereto.
   (5) The licensee represents himself or herself as an agent or
employee of the department or uses advertising designed to create the
impression, or that would reasonably have the effect of leading
persons to believe, that the licensee is in fact an employee or
representative of the department; or the licensee makes an
advertisement, in any manner or by any means, that is untrue or
misleading and that is known, or that by the exercise of reasonable
care should be known, to be untrue or misleading.
   (6) The licensee, or an employee or agent of the licensee,
solicits driver training or instruction or all-terrain vehicle safety
instruction in, or within 200 feet of, an office of the department.
   (7) The licensee is convicted of violating Section 14606, 20001,
20002, 20003, 20004, 20006, 20008, 23103, 23104, 23105, 23152, or
23153 of this code or subdivision (b) of Section 191.5 or subdivision
(c) of Section 192 of the Penal Code. A conviction, after a plea of
nolo contendere, is a conviction within the meaning of this
paragraph.
   (8) The licensee teaches, or permits a student to be taught, the
specific tests administered by the department through use of the
department's forms or testing facilities.
   (9) The licensee conducts training, or permits training by an
employee, in an unsafe manner or contrary to safe driving practices.
   (10) The licensed school owner or licensed driving school operator
teaches, or permits an employee to teach, driving instruction or
all-terrain vehicle safety instruction without a valid instructor's
license.
   (11) The licensed school owner does not have in effect a bond as
required by Section 11102.
   (12) The licensee permits the use of the license by any other
person for the purpose of permitting that person to engage in the
ownership or operation of a school or in the giving of driving
instruction or all-terrain vehicle safety instruction for
compensation.
   (13) The licensee holds a secondary teaching credential and
explicitly or implicitly recruits or attempts to recruit a pupil who
is enrolled in a junior or senior high school to be a customer for a
business licensed pursuant to this article that is owned by the
licensee or for which the licensee is an employee.
   (b) In the interest of the public's safety, as determined by the
department, the department may immediately suspend the license of a
licensee for an alleged violation under this chapter and shall
conduct a hearing of the alleged violation within 30 days of the
suspension.

11110.1.  Any of the causes specified in this chapter as a cause for
refusal to issue a license under this chapter is cause to suspend or
revoke a license under this chapter.

11110.2.  The license issued to a school owner shall be
automatically canceled upon the happening of any of the following:
   (a) The abandonment of the established place of business or the
change thereof without notice to the department pursuant to Section
11108.5.
   (b) The failure to maintain an adequate bond or to procure and
file another bond, as required by Section 11102, prior to the
effective date of the termination by the surety of any existing bond.
   (c) The voluntary or involuntary surrender of the license, except
that a surrender or cessation of business by the licensee, or the
suspension or revocation of the corporate status of the licensee,
does not preclude the department from filing an accusation for
revocation or suspension of the surrendered license, as provided in
Section 11110, or affect the department's decision to suspend or
revoke the license.
   (d) Notification to the department that the person designated as
licensee has changed.
   (e) Suspension or revocation of the corporate status of the
licensee.

11110.5.  The department may cancel any license issued under this
chapter when that license has been issued in error or voluntarily
surrendered to the department for cancellation. Whenever a driving
school operator's license or an instructor's license is canceled, it
shall be without prejudice and shall be surrendered to the
department. Any person whose license has been canceled may
immediately apply for a license, and the application may be accepted
without additional fee or examination under rules and regulations
adopted by the department.
   This section shall become operative on July 1, 1988.

11110.7.  (a) The department, after notice and hearing, on an
interim basis, may refuse to issue or may suspend a license issued
under this chapter when the applicant or licensee, or a business
representative if the applicant or licensee is a business, has been
convicted of a crime involving moral turpitude which is substantially
related to the qualifications, functions, or duties of the licensed
activity, if an appeal of the conviction is pending or the conviction
has otherwise not become final. A conviction after a plea of nolo
contendere is a conviction within the meaning of this section.
   (b) If a conviction, upon which an interim refusal to issue or
suspension under subdivision (a) is based, is affirmed on appeal or
otherwise becomes final, the refusal to issue or the suspension shall
automatically become effective as a denial or revocation, as the
case may be, of the license. If the interim refusal to issue or the
suspension was stayed under probationary terms and conditions, the
subsequent automatic denial or revocation shall also be stayed under
the same terms and conditions for a term not to exceed the original
term of probation for the interim refusal to issue or suspension.
   (c) If a conviction, upon which an interim refusal to issue or
suspension under subdivision (a) is based, is reversed on appeal, the
department shall set aside immediately that refusal or suspension.

11111.  (a) Every licensee under this chapter is entitled to notice
and hearing prior to cancellation, suspension, or revocation of the
license by the department, except that the department shall
immediately cancel the license without a hearing for failure of the
licensee to meet and maintain the requirements of paragraph (1), (3),
or (4) of subdivision (a) of Section 11102, or Section 11103 or
11103.1, or paragraph (4), (5), or (6) of subdivision (a) of Section
11104, or paragraph (4), (5), or (6) of subdivision (a) of Section
11104.3, or Section 11110.2.
   (b) The notice and hearings provided for in this chapter shall be
pursuant to Chapter 5 (commencing with Section 11500) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (c) Any action of the department in suspending, canceling, or
revoking, or failing to renew a license may be reviewed by any court
of competent jurisdiction.
   (d) The department may, pending a hearing, temporarily suspend the
license or permit of any person licensed under this chapter for not
more than 30 days if the director finds that the action is required
in the public interest. In that case, a hearing shall be held and a
decision issued within 30 days after notice of the temporary
suspension.
   (e) The suspension, expiration, or cancellation of a license
issued under this chapter does not preclude the filing of an
accusation for the revocation or suspension of the suspended,
expired, or canceled license as provided in Section 11110, and does
not invalidate or otherwise preclude a decision by the department to
suspend or revoke the license. That determination may be considered
in granting or refusing to grant any subsequent license authorized by
this chapter to the same licensee, or to any partner, officer,
director, or stockholder of the same licensee.

11111.2.  Any owner licensed under this chapter who has closed his
or her established place of business or any operator or instructor
currently or previously licensed under this chapter who no longer
resides at the address last filed with the department, may be served
with process issued pursuant to Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code by
registered mail at that place of business, in the case of an owner,
or at that residence, in the case of an operator or instructor,
unless the person has notified the department in writing of another
address where service may be made.

11111.5.  (a) After the filing of an accusation under this chapter,
the director may enter into a stipulated compromise settlement
agreement with the consent of the licensee on terms and conditions
mutually agreeable to the director, the respondent licensee, and the
accuser without further hearing or appeal. The agreement may include,
but is not limited to, a period of probation or monetary penalties,
or both. The monetary penalty shall not exceed one thousand dollars
($1,000) for driving school owners or for a principal in an
all-terrain vehicle safety training organization or five hundred
dollars ($500) for driving school operators or for driving
instructors or all-terrain vehicle safety instructors for each
violation, and the monetary penalty shall be based on the nature of
the violation and the effect of the violation on the purposes of this
chapter.
   (b) A compromise settlement agreement may be entered before,
during, or after the hearing, but is valid only if executed and filed
pursuant to subdivision (d) before the proposed decision of the
hearing officer, if any, is adopted or the case is decided.
   (c) The department shall adopt, by regulation, a schedule of
maximum and minimum amounts of monetary penalties, the payment of
which may be included as a term or condition of a compromise
settlement agreement entered under subdivision (a). Any monetary
penalty included in a compromise settlement agreement shall be within
the range of monetary penalties in that schedule.
   (d) Any compromise settlement agreement entered under this section
shall be signed by the director, the respondent licensee, and the
accuser, or by their authorized representatives. The director shall
file, or cause to be filed, the agreement with the Office of
Administrative Hearings, together with the department's notice of
withdrawal of the accusation or statement of issues upon which the
action was initiated.
   (e) If the respondent licensee fails to perform all of the terms
and conditions of the compromise settlement agreement, the agreement
is void and the department may take any action authorized by law
notwithstanding the agreement, including, but not limited to,
refiling the accusation or imposing license sanctions.
   (f) This section shall become operative on July 1, 1988.

11112.  Upon refusal of the department to issue a license, the
applicant shall be entitled to demand in writing a hearing before the
director or his representative within 60 days after notice of
refusal.
   The hearing shall be conducted pursuant to Chapter 5 (commencing
at Section 11500), Part 1, Division 3, Title 2 of the Government
Code.

11113.  (a) The director may prescribe rules and regulations for
driving schools regarding the conduct of courses of driver education
and driver training, including curriculum, facilities, and equipment.
The rules and regulations regarding curriculum shall require both of
the following:
   (1) A component relating to the dangers involved in consuming
alcohol or drugs in connection with the operation of a motor vehicle.
   (2) A component examining driver attitude and motivation that
focuses on the reduction of future driving violations, with
particular emphasis on aggressive driving behavior and behavior
commonly known as "road rage."
   (b) The director may also prescribe rules and regulations for the
conduct of driving instructor training courses required by Sections
11102.5 and 11104, including curriculum, facilities, and equipment.
The department shall monitor instruction given by driving schools.

11113.3.  The rules and regulations adopted pursuant to Section
11113 regarding the curriculum shall include, but are not limited to,
the rights and duties of a motorist as they relate to traffic laws
and traffic safety.

11113.5.  The department shall establish rules and regulations
prescribing standards for the licensing and control, as provided in
this chapter, of owners, operators, and instructors and the courses
of driver education and driver training for driving schools providing
training courses for class 1 and class 2 licensed drivers. The
standards shall provide for requirements of licensing, training, and
control to assure that the owners, operators, and instructors are
qualified to provide the type of training needed by drivers for safe
operation of large commercial vehicles on the highway.

11114.  The department may require any person licensed under this
chapter to submit to a reexamination of his qualifications when there
is reasonable cause to believe that the licensee does not have the
ability to give driving instruction. If the licensee refuses or fails
to submit to such reexamination, the department may peremptorily
suspend his license until such time as the licensee shall have
submitted to reexamination. The suspension shall be effective upon
notice.


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