Code of Massachusetts Regulations
540 CMR - REGISTRY OF MOTOR VEHICLES
Title 540 CMR 23.00 - Licensing, Certification and Operating Requirements for Professional Driving School Instructors; and Others
Section 23.04 - Qualification Requirements and Terms of Certification for Driver Education Providers

Universal Citation: 540 MA Code of Regs 540.23

Current through Register 1531, September 27, 2024

(1) Certification Requirements. No person or entity shall own or operate an establishment to conduct Instruction for Hire unless licensed by the Registrar in accordance with either M.G.L. c. 90, § 32G and § 32GU. Applicants shall comply with any applicable DOE requirements prior to engaging in instructional activity.

(2) Qualifications for a Driver Education Provider Certificate. In addition to the conditions specified in either M.G.L. c. 90, § 32G and § 32GV2 (as applicable), and requirements contained in other sections of 540 CMR 23.00, applicants for a driving school license must satisfy the following requirements. Unless otherwise noted, the requirements apply to both the initial license and any renewal license.

(a) Application. An applicant for a Driver Education Provider certificate shall complete and submit an application in a form prescribed by the Registrar and:
1. Pay all required non-refundable fees;

2. Apply for and successfully pass an inspection of the driver education premises conducted by the Registrar or his or her designee;

3. Submit a copy of the program of instruction that meets or exceeds the minimum program standards established by the Registrar. At the time of application, an applicant for a driving school certificate shall submit a written course curriculum describing the classroom and behind the wheel instruction to be used. The curriculum must demonstrate that it includes such minimum standards as established by the Registrar. The curriculum shall include a description of each of the skills/techniques required to be taught and an explanation of the method and sequence by which they will be taught. Once approved by the Registrar, a driver training program shall not materially alter a program of instruction, including the curriculum, without prior written approval from the Registrar.

4. Submit written proof of insurance as required by 540 CMR 23.04(3)(c).

5. Provide a performance bond, acceptable to the Registrar in the amount of $10,000 for a Driver Education Provider with one location; $25,000 for a Driver Education Provider with up to three locations; and $50,000 for a Driver Education Provider with more then three locations. The performance bond shall be held to provide reimbursement to students and/or parents in the event that the program ceases to function and fails to provide or complete the contracted instruction.

(b) Criminal Record Check. Each applicant, and any officer, director, stockholder, partner, employee, or any other person directly or indirectly who has a financial interest in the business, shall be subject to a criminal record check. A driving school certificate shall be denied if the applicant or any person who has a direct or indirect financial interest in the business has been convicted of, pleaded guilty to, or engaged in any conduct proscribed by M.G.L. c. 90, § 32G or § 32G1/2, as applicable.

(c) Business Information.
1. If the applicant is a corporation, limited liability company or limited liability partnership, a copy of the applicable Articles of Organization, Certificate of Organization, or Registration, including registration as a Foreign Corporation doing business in Massachusetts, required to be filed with the Secretary of State for the Commonwealth, must be submitted.

2. If the applicant is either an individual or entity (including a corporation) conducting business under a trade name, a copy of the business certificate issued by the municipality where the applicant conducts business or will be conducting business must be submitted.

3. Each applicant must submit the employer's federal tax identification number (FID/EIN).

(3) Terms for Maintaining a Driver Education Provider Certificate.

(a) Renewal. In order to maintain licensure, a Driver Education Provider must annually submit a renewal application and any required fee.

(b) Inspection. Each provider shall cooperate fully with the requests of an RMV inspector and shall make available any and all records upon request. Each school shall provide RMV inspectors with an opportunity to observe any classroom or behind the wheel instruction as requested.

(c) Insurance Coverage. Each provider shall at all times maintain current insurance coverage that meets or exceeds the coverage requirements set by M.G.L. c. 90, § 34A including, but not limited to, the vehicle liability policy, motor vehicle liability bond and personal injury protection minimums. All such documentation shall be subject to review by the Registrar, RMV inspectors, the Commissioner of Insurance and current or prospective customers.

(d) Changes in Business Name, Address or Ownership. The Principal Administrator shall notify the Registrar, in writing, within 30 calendar days of any of the following:
1. A change in the name or address of the business;

2. A transfer of the business or a change of ownership, including a change in the form or ownership; except that a transfer of less than a majority interest in a corporation shall not be considered a change in ownership.

3. The dissolving of the business or the ceasing of regular business activity, except that if the program has taken full or partial payment for student instruction it will not be providing, or if the program has not provided students who have completed the program with the required certificate of completion, the program's Principal Administrator shall inform the Registrar, prior to or immediately upon cessation of business, of the names and addresses of students who are owed refunds and the amounts owed to each and the names and addresses of the students who have completed the program but have not received the certificate of completion. The Program Administrator shall also provide a list of each student who has not completed the program indicating the number of hours of classroom and behind the wheel instruction the student has not completed or is required to complete for certification.

(e) Performance Bond Required. A Professional Driving School and a Driver Skills Development Program shall maintain a performance bond, acceptable to the Registrar as described above relative to the application process.

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