NY Veh & Traf L § 394 (2021)
2021 New York Laws VAT - Vehicle and Traffic Title 3 - Safety Responsibility; Financial Security; Equipment; Inspection; Size and Weight; and Other Provisions Article 12 - Other Provisions 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.