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(c) Maintain a standard liability insurance of not less than $500,000.
(d) File certification of insurance with the department.
(e) Require the insurance carrier to notify the department not less than 30 days before the policy expires or is materially changed or canceled.
(2)The schools shall file a bond or acceptable alternative based on size and performance. The size of the school and points assessed during the last previous license period shall be used to calculate the bond amount.
CALCULATIONS
(3)Customer shall apply to bond company if obligations of the training contract cannot be met.
(4)Points are assessed based on violation frequency and severity. Points are assessed based on the system specified in s. Trans 105.11.
(5)Certification of the bond must be filed with the department at renewal of the school license.
History: CR 06-089: cr. Register December 2006 No. 612, eff. 1-1-07.
Trans 105.11Driver school point system.
(1)The department may assess points against a driver school or instructor that has violated any provision in ss. 343.60 to 343.72, Stats., or rules interpreting ss. 343.60 to 343.72, Stats., that constitute grounds for the suspension or revocation of their license. The department shall provide a licensee or applicant written notice of a point assessment. Written notice of a point assessment shall specify the reasons for the point assessment. All points assessed by the department shall remain in effect for the duration for the next 24 months, and any new point assessments shall be added to the existing point total for that licensee throughout the next 24 months.
(2)The department shall use the points assessed to determine the amount of bond required for the next licensing period.
(3)The department may take licensing action under the system of progressive enforcement described in s. Trans 105.12, based on the number of points assessed. If applicable, the written notice specified in sub. (1) may include the issuance of a complaint to revoke or suspend a license, a written stipulation to a conditional license, a civil forfeiture complaint, or notice of denial of a license.
(4)Points shall be assessed according to the following scale:
(a) Six points are assessed for any of the following:
1. Having one’s school or instructor license withdrawn.
2. Having 6 or more substantiated customer complaints within a license period.
3. Providing documentation or information to the department on any matter regulated by subch. VI of ch. 343, Stats., or this chapter which contains a false statement as to any material matter.
4. Permitting actions that could harm the customer physically or financially.
5. Performing work duties after consuming any alcohol or controlled substance or other drug that impairs ability to drive a motor vehicle.
6. Failing to comply with DMV warning letter.
7. Substantiated complaint from a parent, legal guardian or customer of inappropriate conduct or actions with the customer.
8. Violating ss. 343.60 to 343.72, Stats., that significantly harm highway safety.
9. Instructing at a driver training school without the proper license.
(b) Four points are assessed for any of the following:
1. Not complying with renewal criteria within 30 days of written request by DMV.
2. Having 5 substantiated customer complaints in a license period.
3. Continuing to use a vehicle that is out of service for driver training.
4. Having not filed school insurance and/or bond with the department.
5. Failing to resolve audit violations or discrepancies in time specified.
6. Filing complaints about another school that are not substantiated.
7. Soliciting complaints or providing training prior to licensure.
8. Insolvency or bankruptcy.
9. Failing to timely pay debts owed the state.
10. Violating ss. 343.60 to 343.72, Stats., that result in unfair advantage to a school or harms another school.
(c) Two points are assessed for any of the following:
1. Having 4 substantiated customer complaints within a license period.
2. Not filing required vehicle inspections with the department.
3. Not notifying the department when students are no longer enrolled.
4. Having a significant discrepancy in business records.
5. Providing a student with a signed MV3001 document prior to receipt of a signed contract or agreement.
6. Violating ss. 343.60 to 343.72, Stats., that do not harm the customer or impact highway safety.
(d) One point is assessed for either of the following:
1. Three substantiated customer complaints within a license period.
2. Violation of s. 343.61 (4) (b), Stats., relating to office location and facility locations.
History: CR 06-089: cr. Register December 2006 No. 612, eff. 1-1-07; correction in (4) (d) 2. made under s. 13.92 (4) (b) 7., Stats., Register March 2012 No. 675.
Trans 105.12Progressive enforcement actions.
(1)Before recording points, the department shall notify the school or the instructor of the reason for the proposed action. The school or instructor may respond within 10 days. Upon due consideration the department shall act. The department may:
(a) Record points assessed to driver schools under s. Trans 105.11.
(b) Record points assessed to instructors, including points assessed by a driver school the instructor has worked for or owned previously. Points assessed to instructor may also be assessed to a school.
(c) Issue a conditional license when appropriate.
(d) Record less than the assessed points.
(2)Based on the points assessed to driver schools and instructors under s. Trans 105.11 in the past 24 months, the following enforcement actions shall apply:
(a) Level one enforcement action – one point assessed. An advisory letter may be sent to the driver school or instructor, asking for corrective action.
(b) Level two enforcement action – one to 3 points assessed. The department may conduct an on-site inspection or audit. An advisory letter shall be sent. If a situation is unresolved after time specified in the advisory letter, the department may issue a conditional license under s. 343.61 or 343.62, Stats., restricted to classroom instruction only. Vehicles used by the driver school may also be ordered out of service, if the violation is related to the vehicle inspection. The restricted license may remain in effect until situation is resolved.
(c) Level three enforcement action – 4 to 6 points assessed. A warning letter may be sent. The licenses issued under s. 343.61 or 343.62, Stats., may be revoked, suspended, or denied for 90 days.
(d) Level four enforcement action – 6 or more points assessed. The licenses issued under s. 343.61 or 343.62, Stats., shall be revoked, suspended, or denied for 4 months to one year, based on point accumulation.
(3)All points assessed, administrative licensing suspensions, revocations, denials, or conditional licenses issued may be appealed under ch. 227, Stats.
History: CR 06-089: cr. Register December 2006 No. 612, eff. 1-1-07.
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Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.