N.Y. Vehicle & Traffic Law § 394: Drivers' schools

§ 394. Drivers' schools. 1. Definitions. As used in this section:

(a) "Drivers' school" means the business of giving instruction for

hire in driving motor vehicles or motorcycles.

(b) "Person" includes an individual, firm, corporation, partnership,

joint venture, joint adventurer or association.

(c) "Place of business" means a designated location at which the

business of a drivers' school is transacted and its records kept.

2. License. No person shall engage in the business of conducting a

drivers' school without being the holder of a license for such purpose

issued by the commissioner. An application for license under this

section shall be filed with the commissioner and shall contain such

information as he shall prescribe. Every such application shall be

accompanied by an application fee of fifty dollars, which shall in no

event be refunded. If an application is approved by the commissioner,

the applicant upon the payment of an additional fee of five dollars for

each month or fraction thereof from the date of issuance to the date of

expiration prescribed by the commissioner, but in no event more than a

total of fifty dollars, shall be granted a license which shall be valid

until such date of expiration. The annual fee for renewal thereof shall

be fifty dollars. Upon renewal, the commissioner may in his discretion

issue a license which shall be valid for up to a two-year period. The

fee for a two-year renewal shall be one hundred dollars. Fees for

renewal of a license valid for a period of less than two years shall be

prorated on a quarterly basis and any portion of a quarter shall be

considered a quarter. The commissioner shall issue a license certificate

to each licensee, which certificate shall be conspicuously displayed in

the place of business of the licensee. In case of the loss, mutilation

or destruction of a license certificate, the commissioner shall issue a

duplicate thereof upon proof of the facts and payment of a fee of two

dollars.

3. Place of business. (a) No license shall be issued, nor shall any

renewal of a license be made, for conducting a drivers' school in a city

having a population of two hundred fifty thousand or more according to

the latest federal census, unless the place of business of such school

is located in a store, office or portion of a building devoted

exclusively to nonresidential use.

(b) No license shall be issued, nor shall any renewal of a license be

made for conducting a drivers' school in a city having a population of

fifty thousand or more according to the latest federal census, if the

place of business of such school or branch thereof, is within fifteen

hundred feet of a building owned or leased by the state, the county or a

city, in which motor vehicle registrations or licenses to drive motor

vehicles are issued to the public. The said distance of fifteen hundred

feet shall be measured along the public streets by the nearest route

from such place of business, or branch thereof, to such building.

4. Refusal to issue a license. The commissioner may deny the

application of any person for a license, if, in his discretion, he

determines that:

(a) Such applicant has made a material false statement or concealed a

material fact in connection with his application;

(b) Such applicant, any officer, director, stockholder or partner, or

any other person directly or indirectly interested in the business was

the former holder, or was an officer, director, stockholder or partner,

in a corporation or partnership which was the former holder of a

drivers' school license which was revoked or suspended by the

commissioner;

(c) Such applicant or any officer, director, stockholder, partner,

employee, or any other person directly or indirectly interested in the

business has been convicted of a felony, or of any crime involving

violence, dishonesty, deceit, indecency, degeneracy or moral turpitude;

(d) Such applicant has failed to furnish satisfactory evidence of good

character, reputation and fitness;

(e) Such applicant does not have a place of business as required by

this section;

(f) Such applicant is not the true owner of the drivers' school.

5. Suspension, revocation and refusal to renew a license. The

commissioner, or any employee of the department of motor vehicles

deputized by him, may suspend or revoke a license or refuse to issue a

renewal thereof for any of the following causes:

(a) the conviction of the licensee or any partner, officer, agent or

employee of such licensee, of a felony, or of any crime involving

violence, dishonesty, deceit, indecency, degeneracy or moral turpitude;

(b) where the licensee has made a material false statement or concealed

a material fact in connection with his application for a license or a

renewal thereof; (c) where the licensee has failed to comply with any of

the provisions of this section or any of the rules and regulations of

the commissioner made pursuant thereto: (d) where the licensee or any

partner, officer, agent or employee of such licensee has been guilty of

fraud or fraudulent practices in relation to the business conducted

under the license, or guilty of inducing another to resort to fraud or

fraudulent practices in relation to securing for himself or another a

license to drive a motor vehicle or motorcycle. The term "fraudulent

practices" as used in this section shall include, but shall not be

limited to, any conduct or representation on the part of the licensee,

or any partner, officer, agent, or employee of a licensee, tending to

induce another or to give the impression that a license to operate a

motor vehicle or motorcycle, or any other license, registration or

service granted by the commissioner, may be obtained by any means other

than the ones prescribed by law, or furnishing or obtaining the same by

illegal or improper means, or requesting, accepting, exacting or

collecting money for such purpose.

Notwithstanding the renewal of a license, the commissioner may revoke

or suspend such license for causes and violations, as prescribed by this

section, occurring during the two license periods immediately preceding

the renewal of such license.

The commissioner, or any person deputized by him, in addition to or in

lieu of revoking or suspending a license to conduct a driving school in

accordance with the provisions of this section, may by order require the

licensee to pay to the people of this state a penalty in a sum not

exceeding five hundred dollars for each violation, and upon the failure

of such licensee to pay such penalty within twenty days after the

mailing of such order, postage prepaid, registered or certified, and

addressed to the last known place of business of such licensee, unless

such order is stayed by a court of competent jurisdiction or in

accordance with the provisions of article three-A of this chapter, the

commissioner may revoke the license of such licensee or may suspend the

same for such period as he may determine. Civil penalties assessed under

this subdivision shall be paid to the commissioner for deposit into the

state treasury, and unpaid civil penalties may be recovered by the

commissioner in a civil action in the name of the commissioner. In

addition, as an alternative to such civil action, and provided that no

proceeding for judicial review shall then be pending and the time for

initiation of such proceeding shall have expired, the commissioner may

file with the county clerk of the county in which the licensee is

located a final order of the commissioner containing the amount of the

penalty assessed. The filing of such final order shall have the full

force and effect of a judgment duly docketed in the office of such clerk

and may be enforced in the same manner and with the same effect as that

provided by law in respect to executions issued against property upon

judgments of a court of record.

6. Hearing. Except where a refusal to issue a license or renewal, or

revocation or suspension, is based solely on a court conviction or

convictions, a licensee or applicant shall have an opportunity to be

heard, such hearing to be held at such time and place as the

commissioner shall prescribe. Provided, however, upon a written notice

of temporary suspension delivered by certified mail to the licensee, a

license may be temporarily suspended pending a hearing. Any such notice

of temporary suspension shall provide that the suspension is effective

seventy-two hours after mailing of such notice and shall provide that a

hearing be scheduled within ten days after the effective date of the

temporary suspension.

A licensee or applicant entitled to a hearing shall be given due

notice thereof. The sending of a notice of a hearing by registered mail

to the last known address of a licensee or applicant ten days prior to

the date of the hearing shall be deemed due notice. The commissioner, or

the person deputized by him to conduct a hearing, shall have power to

subpoena witnesses, administer oaths to witnesses and take testimony of

any person or cause his deposition to be taken. A subpoena issued under

this section shall be regulated by the civil practice law and rules.

Officers or employees in the department of taxation and finance, making

service of such subpoenas are not entitled to fees and mileage.

7. Supervision; records. The commissioner shall approve the form of

contract used by all licensees, and may prescribe reasonable rules

governing the terms which may be included in such contracts. Every

licensee shall keep such records as the commissioner may by regulation

require. The records of the licensee shall be open to the inspection of

the commissioner or his representatives at all times during reasonable

business hours. The commissioner shall prescribe such reasonable rules

and regulations as he may deem necessary to carry out the provisions of

this section.

7-a. Certification of driving time. The commissioner shall establish

by regulation a certification process by drivers' schools of the amount

of time a holder of a learner's permit has spent operating a motor

vehicle or motorcycle while under the immediate supervision of a driving

instructor holding an instructor's certificate issued pursuant to

subdivision eight of this section. A certificate issued pursuant to this

section shall be deemed to be proof of all or a portion of the

supervised driving experience required under certification pursuant to

paragraph (d) of subdivision two of section five hundred two of this

chapter.

8. Instructors. (a) No person shall be employed by a licensee as a

driving instructor, nor shall any person give instructions for hire in

the operation of motor vehicles or motorcycles unless such person is the

holder of a driver's license valid for operation in this state and an

instructor's certificate issued by the commissioner. Such certificates

shall be issued only to persons of good reputation and moral character,

whose driving records, as determined by the commissioner, qualify them

as instructors in the operation of motor vehicles or motorcycles. An

application for an instructor's certificate must identify the driving

school or schools in which the applicant is to act as an instructor and

shall contain such other information as the commissioner shall

prescribe. Each such application shall be accompanied by a fee of ten

dollars which shall in no event be refunded. Such certificate shall be

issued without payment of any additional fee and shall be limited to use

in connection with the business of the specified driving school or

schools. Such certificate shall be valid until the date of expiration

prescribed by the commissioner and may be validated for use in

connection with the business of other driving schools without payment of

any additional fee. The fee for annual renewal thereof shall be ten

dollars. Upon renewal, the commissioner may, in his discretion, issue a

renewal which shall be valid for up to a two-year period. The fee for a

two-year renewal shall be twenty dollars. Fees for renewal of a

certificate valid for a period of less than two years shall be prorated

on a quarterly basis and any portion of a quarter shall be considered a

quarter.

(b) The commissioner or any employee of the department of motor

vehicles deputized by him, may suspend or revoke an instructor's

certificate for any of the following causes: (1) expiration, suspension

or revocation of the required license of such instructor; (2) the

commissioner has determined that the driving record of such instructor

indicates that such instructor does not possess the qualities or

competence necessary or desirable for a driving instructor; (3) such

instructor has failed to comply with the rules and regulations

prescribed by the commissioner; (4) conviction of such instructor of a

felony or any crime involving violence, dishonesty, deceit, indecency,

degeneracy or moral turpitude; and (5) such instructor has been guilty

of fraud or fraudulent practices.

8-a. Fees; deposited. Fees assessed under this section shall be paid

to the commissioner for deposit to the general fund.

9. Employees. A licensee may employ, in connection with a driving

school a person who has been convicted of a crime, in accordance with

article twenty-three-A of the correction law.

10. Judicial review. The action of the commissioner in refusing to

issue or renew, or revoking or suspending a license or instructor's

certificate may be reviewed in a proceeding under article seventy-eight

of the civil practice law and rules.

11. Penalties. (a) A violation of any of the provisions of this

section shall constitute a misdemeanor.

(b) During the pendency of any criminal prosecution based upon a

violation of this section or if any such prosecution has been terminated

and the defendant has been sentenced to pay a fine as provided in this

chapter, no proceeding to recover civil penalties under this section

shall be commenced and any such pending proceeding shall be stayed.

12. Unlicensed operation; procedures and penalties. (a) The

commissioner or any person deputized by him shall hear and determine any

allegation that a person has operated a drivers' school without being

licensed as required by subdivision two of this section. Upon a

determination that a person has so operated, the commissioner or person

deputized by him shall assess civil penalties as provided in paragraphs

(b) and (c) of this subdivision.

(b) Except as provided in paragraph (c) of this subdivision, any

person who operates a drivers' school without being licensed shall be

required to pay to the people of this state a civil penalty in the sum

of one thousand dollars. However, any such person against whom such

penalty has been assessed may avoid all but five hundred dollars of such

penalty by obtaining a license as required by this section, provided

that application for such license is made not more than ten days after

the imposition of such penalty.

(c) (i) Any person who operates a drivers' school while his drivers'

school license is revoked or suspended, shall pay to the people of this

state a civil penalty in the sum of one thousand dollars. Such civil

penalty may not be avoided.

(ii) Any person who operates a drivers' school without being licensed

as required by subdivision two of this section who has previously had a

civil penalty assessed for unlicensed operation shall pay to the people

of this state a civil penalty in the sum of one thousand dollars. Such

civil penalty may not be avoided.

(d) Civil penalties assessed under this section shall be paid to the

commissioner for deposit into the state treasury, and unpaid civil

penalties may be recovered by the commissioner in a civil action in the

name of the commissioner. In addition, as an alternative to such civil

action, and provided that no proceeding for judicial review shall then

be pending and the time for initiation of such proceeding shall have

expired, the commissioner may file with the county clerk of the county

in which the licensee is located a final order of the commissioner

containing the amount of the penalty assessed. The filing of such final

order shall have the full force and effect of a judgment duly docketed

in the office of such clerk and may be enforced in the same manner and

with the same effect as that provided by law in respect to executions

issued against property upon judgments of a court of record.