SB-1290, As Passed Senate, September 20, 2006
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1290
A bill to provide for the certification of driver education
providers; to prescribe certain record-keeping and program
requirements for driver education providers; to provide for the
certification of driver education instructors; to prescribe the
powers and duties of certain persons and departments; to prescribe
certain fees; to establish a fund in the state treasury; to
prescribe remedies, sanctions, and penalties; and to repeal acts,
administrative rules, and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"driver education provider and instructor act".
Sec. 3. As used in this act:
(a) "Adult driver training" means instruction that is provided
to a person 18 years of age or older in the operation of a motor
vehicle, other than a commercial motor vehicle as defined in
section 7a of the Michigan vehicle code, 1949 PA 300, MCL 257.7a.
(b) "Behind-the-wheel instruction" means instruction in which
a student is in control of a motor vehicle on a public street or
highway in real and varied traffic situations and a driver
education instructor is the only other occupant in the front
passenger seating area with the student.
(c) "Classroom instruction" means that part of a driver
education course that occurs in a classroom environment that
enables a student to learn through varied instructional methods,
under the direct guidance of a driver education instructor.
(d) "Conviction" means a conviction for a crime or attempted
crime whether under a law of this state, a local ordinance
substantially corresponding to a law of this state, or a law of
another state substantially corresponding to a law of this state.
(e) "Coordinated segment 1 driver education course" means a
segment 1 course provided by 2 or more certified driver education
providers in the use of auxiliary aids and services as that term is
defined in the Americans with disabilities act of 1990, 42 USCA
12102.
(f) "Curriculum" means a written plan that guides the
instruction given in a driver education course and includes
performance objectives, a content outline, detailed learning
activities, and assessment tools.
(g) "Designated representative or coordinator" means the
individual that a driver education provider employs, enlists, or
appoints, or contracts with to supervise, manage, and administer
the day-to-day responsibilities of the provider's driver education
school operation. Often this individual is an owner, partner,
officer, or director of the driver education provider.
(h) "Driver education course" means a program of study offered
by a certified driver education provider, which enables a student
to acquire the basic knowledge, skill, and attitude necessary to
operate a motor vehicle upon a highway transportation system.
(i) "Driver education course certificate of completion" means
a written or electronic authorization issued by a certified driver
education provider to a student who has successfully completed
segment 1 or segment 2 of a driver education course offered by the
provider.
(j) "Driver education instructor" means a person who the
secretary of state certifies has met the instructor qualifications
of this act to instruct a student in a driver education course.
(k) "Driver education instructor certificate" means a written
or electronic authorization issued by the secretary of state to
indicate that a person has met the instructor qualifications of
this act to instruct a student in a driver education course.
Sec. 5. As used in this act:
(a) "Driver education instructor preparation program" means a
program of driver education instructor preparation courses offered
by a college or university or by a person approved by the secretary
of state.
(b) Except as otherwise provided in this act, "driver
education instructor preparation courses" means the courses that
are required to obtain a driver education instructor certificate.
(c) "Driver education provider" or "provider" means a person
who meets the requirements in subparagraph (i), if not excluded
under subparagraph (ii), as follows:
(i) Maintains or obtains the facilities and certified
instructors to give instruction in the driving of a motor vehicle
or maintains or obtains the facilities and certified instructors to
prepare an applicant for an exam given by the secretary of state
for a license as defined in section 25 of the Michigan vehicle
code, 1949 PA 300, MCL 257.25, or a vehicle indorsement issued
under former section 312e of the Michigan vehicle code, 1949 PA
300.
(ii) Driver education provider does not include a person who
provides instruction as follows:
(A) Only for the benefit of its employees if that instruction
is not open to the public.
(B) In the driving or operating of a motorcycle as defined in
section 31 of the Michigan vehicle code, 1949 PA 300, MCL 257.31,
or the preparing of an applicant for an exam given by the secretary
of state for a motorcycle indorsement issued under section 312a of
the Michigan vehicle code, 1949 PA 300, MCL 257.312a.
(C) On an unpaid, casual basis to a relative or friend.
(d) "Driver education provider certificate" means a written or
electronic authorization issued by the secretary of state to
indicate that a person has met the driver education provider
qualifications of this act.
(e) "Educational institution" means a public school, nonpublic
school, or public school academy as those terms are defined in
section 5 of the revised school code, 1976 PA 451, MCL 380.5; a
consortium that is defined to mean a partnership, association, or
alliance of 2 or more school districts in a common venture; a
community college, a 4-year college, a university, or any other
body of higher education.
(f) "Established office location" means a building that meets
all of the following requirements:
(i) Is of a permanent nature where the provider's
communications and notices are received.
(ii) Is heated, lighted, and ventilated and contains
appropriate space to properly store and preserve the information,
records, or other documents required to be maintained under this
act.
(iii) Complies with applicable zoning and municipal
requirements.
(g) "Governmental agency" means an agency of the federal
government, a state government, a county, city, village, or
township, or a combination of any of these entities.
(h) "Graduated driver license" means a license issued by the
secretary of state under section 310e of the Michigan vehicle code,
1949 PA 300, MCL 257.310e.
(i) "Multiple vehicle driving facility" means that part of a
driver education course that enables the driver education
instructor, from a position outside the vehicle, and using
electronic or oral communication, to teach and supervise several
students simultaneously, each of whom is operating a vehicle at an
off-street facility specifically designed for that type of
instruction.
Sec. 7. As used in this act:
(a) "Performance objective" means a certain level of knowledge
and skill a student is expected to acquire to successfully complete
a driver education course.
(b) "Person" means an individual, partnership, corporation,
association, limited liability company, educational institution,
governmental agency or other legal or commercial entity, and their
legal successors.
(c) "Practicum" means classroom and behind-the-wheel
instruction in a driver education course under the direction of an
instructor employed, enlisted, or appointed by a college or
university or by a person approved by the secretary of state and a
cooperating instructor, providing practical application of theory
and experience for a student in an approved driver education
instructor preparation program. As used in this subdivision,
"cooperating instructor" means a driver education instructor
approved by the secretary of state to participate in a practicum
course to mentor an uncertified driver education instructor in the
practicum.
(d) "Professional development requirements" means training
prescribed by the secretary of state to update the instructional
knowledge and skill of a driver education instructor.
(e) "Revocation" means the termination of a driver education
provider's certification or a driver education instructor's
certification.
(f) "Segment 1" means a teen driver education course that
meets the requirements in section 37 of this act.
(g) "Segment 2" means a teen driver education course that
meets the requirements in section 39 of this act.
(h) "Simulator device training" means that part of a driver
education course where a driver education instructor uses
interactive simulator units and programs to reproduce driving
situations likely to occur in actual driving on a street and the
student is required to evaluate risk, make decisions, and respond
to the situations presented.
(i) "Suspension" means the temporary withdrawal of a person's
certification to engage or offer to engage in activities as a
driver education provider or a driver education instructor during
the period of suspension.
(j) "Teen driver training" means driver training instruction
provided through a segment 1 or segment 2 driver education course
that allows a person 17 years of age or less to apply for a level 1
or level 2 graduated driver license.
(k) "Truck driver training" means instruction that is provided
to operate a commercial motor vehicle as that term is defined in
section 7a of the Michigan vehicle code, 1949 PA 300, MCL 257.7a.
Sec. 9. (1) A person may apply to the secretary of state for a
driver education provider certificate in 1 or more of the following
classifications:
(a) Adult driver training.
(b) Teen driver training.
(c) Truck driver training.
(2) The secretary of state shall not grant an original driver
education provider certificate under this act until an
investigation is made of the applicant's qualification.
(3) Except as provided in this act, an applicant must do or
submit evidence that he or she has done or will do, as applicable,
all of the following to be eligible to receive a driver education
provider certificate:
(a) Submit a properly completed application signed by the
applicant.
(b) Maintain an established office location.
(c) Maintain classroom facilities in a public or commercial
setting.
(d) Maintain the surety bond required under this section.
(e) Require each of their designated representatives or
coordinators to complete a criminal history check as described in
section 29.
(f) Provide the name and address of each designated
representative or coordinator of the applicant, if applicable.
(g) Provide the name, address, date of birth, and social
security number of each owner or partner and, if a corporation, of
each of the principal officers.
(h) Provide a statement of the previous history, record, and
associations of the applicant and of each owner, partner, officer,
director, and designated representative or coordinator. The
statement shall be sufficient to establish to the satisfaction of
the secretary of state the business reputation and character of the
applicant.
(i) Provide a statement indicating whether the applicant or
its designated representative or coordinator has ever applied for a
driver education provider certificate in this state or any other
state, and the result of that application.
(j) Provide a statement indicating whether the applicant or
its designated representative or coordinator has ever been denied a
driver education provider certificate or has ever been the holder
of a certificate that was suspended or revoked.
(k) If the applicant is a corporation or partnership, provide
a statement indicating whether a partner, employee, officer,
director, or its designated representative or coordinator has ever
been denied a driver education provider certificate or has ever
been the holder of a certificate that was suspended or revoked.
(l) Certify that the applicant or another person named on the
application is not acting as the alter ego of any other person or
persons in seeking the certificate. For the purpose of this
subdivision, "alter ego" means a person who acts for and on behalf
of, or in the place of, another person for purposes of obtaining a
driver education provider certificate.
(m) Affirm that the established office location meets all
applicable zoning and municipal requirements.
(n) Obtain written or electronic verification from the state
fire marshal or his or her representative that the proposed
classroom facilities have been inspected and approved by the state
fire marshal or his or her representative according to state and
local building code and public occupancy requirements.
(o) Obtain written or electronic verification from an insurer
that the applicant maintains or will maintain bodily injury and
property damage liability insurance on each motor vehicle used in a
driver education course.
(p) Except as otherwise provided in this subdivision, submit a
nonrefundable application processing fee with each application for
a separate established place of business where records will be
maintained as follows:
(i) $225.00 for a driver education provider who offers adult or
teen driver training.
(ii) $360.00 for a driver education provider who offers truck
driver training.
(iii) A fee is not required for an additional location that is
used for the sole purpose of conducting classroom instruction and
at which records are not maintained, enrollments are not made, and
staff is not ordinarily assigned, except for the purpose of
conducting classroom instruction.
(q) Provide a statement indicating whether the applicant will
use a multiple vehicle driving facility in a driver education
course. If a facility will be used, both of the following apply:
(i) The statement shall include a detailed description of the
facility as determined necessary by the secretary of state and its
address.
(ii) A multiple vehicle driving facility review and approval
fee of $125.00 shall accompany the applicant's application for a
driver education provider certificate.
(r) Provide other information and documents as prescribed by
the secretary of state necessary to determine whether the applicant
meets the requirements of this act.
(4) An application for an original driver education provider
certificate shall include a properly executed surety bond or
renewal certificate with the application. If a renewal certificate
is used, the bond is considered renewed for each succeeding year in
the same amount and with the same effect as an original bond. The
bond or certificate shall be maintained continuously without
interruption to protect the contractual rights of students. The
bond or certificate of an adult or teen driver education provider
with 999 or fewer students in a calendar year shall be in the
principal sum of $20,000.00 with good and sufficient surety to be
approved by the secretary of state. The bond or certificate of an
adult or teen driver education provider with 1,000 or more students
in a calendar year shall be in the principal sum of $40,000.00 with
good and sufficient surety to be approved by the secretary of
state. The bond or certificate of a truck driver education provider
shall be in the principal sum of $50,000.00 with good and
sufficient surety to be approved by the secretary of state. The
bond shall indemnify or reimburse a student, financing agency, or
governmental agency for monetary loss caused through fraud,
cheating, or misrepresentation in the conduct of the driver
education provider's business where the fraud, cheating, or
misrepresentation was made by the provider or by an employee,
agent, instructor, or salesperson of the provider. The surety shall
make indemnification or reimbursement for a monetary loss only
after judgment based on fraud, cheating, or misrepresentation has
been entered in a court of record against the provider. The
aggregate liability of the surety shall not exceed the sum of the
bond. The surety on the bond may cancel the bond by giving 30 days'
written or electronic notice to the secretary of state and after
giving notice is not liable for a breach of condition occurring
after the effective date of the cancellation.
(5) A driver education provider who offers adult driver
training, teen driver training, and truck driver training shall
furnish a separate bond for each driver education provider
certificate issued by the secretary of state to the applicant. When
the secretary of state receives written or electronic notice that a
driver education provider's surety bond required under subsection
(4) or insurance coverage required under subsection (10) has been
canceled, the secretary of state shall notify the provider that the
provider's certificate shall be automatically canceled unless the
secretary of state receives a new surety bond or a new insurance
certificate within 30 days or less. If the provider fails to submit
a new surety bond or insurance certificate to the secretary of
state within 30 days or less, the secretary of state may
automatically cancel the provider's certificate. A driver education
provider who changes or terminates the provider's surety bond or
the insurance coverage before the expiration date of the bond or
insurance coverage shall immediately furnish the secretary of state
with written or electronic notice as prescribed by the secretary of
state of that change or termination and proof of a new bond or
insurance coverage.
(6) As a condition precedent to the granting of a certificate,
an applicant shall file with the secretary of state, on a form
prescribed by the secretary of state, an irrevocable written or
electronic stipulation. The stipulation shall be signed by the
applicant and state that the applicant agrees that legal process
affecting the applicant, served on the secretary of state against
the applicant or the applicant's successor in interest for a
violation of this act, a rule promulgated under this act, or an
order issued under this act, has the same effect as if personally
served on the applicant. This appointment remains in force as long
as the provider has any outstanding liability within this state
under this act.
(7) Subsections (3)(d), (g), and (p) and (4) do not apply to
an educational institution or a governmental agency.
(8) Subsection (3)(c) does not apply to a classroom location
currently in use that was approved by the secretary of state in
writing before the effective date of this act.
(9) A classroom facility may not be located in a person's
residence or a structure attached or adjacent to the person's
residence unless the classroom facility was used and approved by
the secretary of state in writing before the effective date of this
act.
(10) A driver education provider shall maintain bodily injury
and property damage liability insurance on a motor vehicle used in
driver education course instruction. The insurance shall insure the
liability of the driver education provider, the driver education
instructors, and a person taking instruction in the amount of
$100,000.00 for bodily injury to or the death of 1 person in 1
accident, and, subject to the limit for 1 person; $300,000.00 for
bodily injury to or the death of 2 or more persons in 1 accident;
and $50,000.00 for damage to the property of others in 1 accident.
The insurer shall be authorized to do insurance business in this
state. The insurer shall not cancel the insurance before its
expiration date unless it gives the secretary of state written or
electronic notice as prescribed by the secretary of state of the
insurer's intent to cancel the insurance at least 30 days before
the cancellation.
(11) The secretary of state shall review and, in writing,
approve or deny the use of a multiple vehicle driving facility
under this act as determined necessary by the secretary of state.
The secretary of state shall approve a facility only if it meets
criteria prescribed by the secretary of state. The secretary of
state shall perform an on-site inspection of a multiple vehicle
driving facility as determined necessary by the secretary of state.
(12) The secretary of state may develop and prescribe an
orientation and education program that a person must complete
before the secretary of state issues that person an original driver
education provider certificate under section 13.
(13) Nonrefundable application processing and multiple vehicle
driving facility review and approval fees collected under this
section shall be deposited into the driver education provider and
instructor fund created in section 83.
Sec. 11. (1) A certified driver education provider may apply
for the renewal of a driver education provider certificate. The
renewal application shall be submitted to the secretary of state
every other year in a format and as prescribed by the secretary of
state. A renewal application shall include all of the following:
(a) A properly completed application signed by the applicant.
(b) A nonrefundable application processing fee as follows:
(i) $225.00 for a driver education provider who offers adult or
teen driver training.
(ii) $360.00 for a driver education provider who offers truck
driver training.
(c) If applicable, either of the following:
(i) A certification that the applicant has used a multiple
vehicle driving facility in a driver education course and that the
facility has not been altered or changed since the secretary of
state inspected that facility after the effective date of this act.
A nonrefundable multiple vehicle driving facility review and
approval fee of $75.00 shall accompany the applicant's application
for a renewal of its driver education provider certificate.
(ii) A statement that the applicant will use a multiple vehicle
driving facility in a driver education course, a detailed
description of the facility as determined necessary by the
secretary of state, and its address. A multiple vehicle driving
facility review and approval fee of $125.00 shall accompany the
applicant's application for a renewal of its driver education
provider certificate.
(d) Other information and documents prescribed by the
secretary of state as needed to determine whether the applicant
meets the requirements of this act.
(2) The designated representative or coordinator of a
certified driver education provider shall complete a criminal
history check as described in section 29 to the satisfaction of the
secretary of state every 4 years on an application to renew the
driver education provider's certificate.
(3) If the secretary of state receives a properly completed
renewal application before the applicant's driver education
provider's current certificate expires, the certificate continues
in full force and effect until the secretary of state either
approves or denies the renewal application. If the secretary of
state does not receive a properly completed renewal application
before the driver education provider certificate expires, the
driver education provider shall not offer to engage or engage in
the activity of a driver education provider until the secretary of
state issues the holder of the expired certificate an original or
renewal driver education provider certificate as provided in this
act.
(4) The secretary of state shall not issue a renewal
certificate more than 30 days after a driver education provider
certificate expires unless the provider has submitted a properly
completed renewal application within 30 days after the
certificate's expiration date. A provider that applies for a
certificate renewal later than 30 days after the certificate
expires shall apply to the secretary of state for an original
driver education provider certificate.
(5) The secretary of state shall review and, in writing,
approve or deny the use of a multiple vehicle driving facility
under this act as determined necessary by the secretary of state.
The secretary of state may only approve a facility that meets
criteria prescribed by the secretary of state. The secretary of
state shall perform an on-site inspection of a multiple vehicle
driving facility as determined necessary by the secretary of state.
(6) Subsection (1)(b) does not apply to an educational
institution or a governmental agency.
(7) Nonrefundable application processing and multiple vehicle
driving facility review and approval fees collected under this
section shall be deposited into the driver education provider and
instructor fund created under section 83.
Sec. 13. (1) The secretary of state may issue an original or
renewal driver education provider certificate if the secretary of
state is satisfied the applicant meets the requirements for that
certificate under this act. The secretary of state may assign an
identifying number to a driver education provider and put that
number on the provider's certificate. The secretary of state may
indicate the adult, teen, or truck driver training classification
applicable on the driver education provider's certificate.
(2) A driver education provider certificate issued under this
act is valid for 2 years. The original expiration date is exactly 2
years from the date the secretary of state issues the provider an
original certificate. A provider's renewal certificate expires 2
years after its issuance on the same day and month that the
original certificate expired.
(3) A person licensed as a driver training school by the
secretary of state under former 1974 PA 369 or who has been
approved for segment 1 and segment 2 driver education course
performance objectives under former 1974 PA 369, and who submits an
original driver education provider certificate application in
accordance with this act to the secretary of state on or before
June 1, 2007, may provide driver education instruction in
accordance with this act while the secretary of state processes the
application. If an application is received after June 1, 2007, the
driver education provider shall not provide instruction until the
secretary of state processes the application and issues the
certificate. The certificate expires exactly 2 years from the date
of issuance.
(4) A person shall not transfer or assign a driver education
provider certificate to another person, and any purported transfer
or assignment is not effective.
Sec. 15. (1) A driver education provider shall immediately
notify the secretary of state in a manner prescribed by the
secretary of state of a change in an owner, partner, officer,
director, or the designated representative or coordinator of the
provider. Immediately upon notifying the secretary of state, the
provider shall also submit a request to the department of state
police for a criminal history check as described in section 29 of
the changed owner, partner, officer, director, or the designated
representative or coordinator of the provider.
(2) A driver education provider shall immediately notify the
secretary of state in a manner prescribed by the secretary of state
of a change of address for the established office location or the
classroom facilities of the provider. The provider shall also
submit with that address change notification any information,
record, report, or other document prescribed by the secretary of
state or required under this act.
(3) A person who stops operating as a driver education
provider or no longer qualifies as a certified driver education
provider shall immediately in a format prescribed by the secretary
of state do all of the following:
(a) Return the certificate issued under section 13 to the
secretary of state.
(b) Prepare a final inventory listing each segment 1 or
segment 2 driver education course certificate of completion that
the secretary of state issued to the provider during the past year.
(c) Return to the secretary of state each segment 1 or segment
2 driver education course certificate of completion in the
provider's possession that the provider did not issue to a student.
(d) Inform the secretary of state of the location where the
information, records, or other documents that the provider is
required to maintain under this act will be stored for no less than
4 years after the provider stops operating as a driver education
provider or fails to qualify for certification as a provider.
(4) A person who fails to immediately comply with subsection
(3)(a), (b), or (c) is guilty of a misdemeanor punishable by
imprisonment for not more than 93 days or a fine of not more than
$2,000.00, or both.
Sec. 17. (1) A person may apply to the secretary of state for
a driver education instructor certificate in 1 or more of the
following classifications:
(a) Adult driver training.
(b) Teen driver training.
(c) Truck driver training.
(2) The secretary of state shall not issue an original driver
education instructor certificate under this act until an
investigation is made of the applicant's qualification under this
act.
(3) The secretary of state may issue a person a driver
education instructor certificate if the person presents
satisfactory evidence to the secretary of state in a format and as
prescribed by the secretary of state that the person meets all of
the following requirements:
(a) Submits a properly completed application signed by the
applicant.
(b) Is not less than 21 years of age on the date of
application.
(c) Provides the applicant's driver license number.
(d) Possesses a valid driver license that has been in
continuous effect for not less than 5 years immediately preceding
the application.
(e) Provides a statement indicating whether the applicant has
ever applied for a driver education instructor certificate in this
state or any other state, and the result of that application.
(f) Provides a statement indicating whether the applicant has
ever been the holder of a driver education instructor certificate
that was revoked or suspended, in this state or any other state.
(g) Completes a criminal history check as described in section
29 to the satisfaction of the secretary of state.
(h) Certifies that the applicant does not have a pending
criminal matter or an outstanding arrest, warrant, or conviction
since submitting a request for a criminal history check under
section 29.
(i) Submits a nonrefundable application processing fee of
$45.00.
(j) Submits a certified medical examination report that is not
older than 90 days and that is prepared by a physician, a
physician's assistant, or a certified nurse practitioner licensed
to practice in this state or in the applicant's state of residence.
The report shall include a statement by the person that certified
the report that the applicant is medically qualified to operate a
motor vehicle and to train others to operate a motor vehicle.
(k) Until December 31, 2007, for an original application for a
driver education instructor certificate for teen driver training,
submits an official transcript from an approved college or
university that currently offers driver education instructor
preparation programs. Beginning January 1, 2008, for an original
application for a driver education instructor certificate for teen
or adult driver training, submits an official transcript from an
approved college, university, or person to verify the completion of
the driver education instructor preparation courses required under
the driver education instructor preparation program described in
section 23. Except for a driver education instructor issued a
temporary approval under the driver education and training schools
act, 1974 PA 369, MCL 256.601 to 256.612, an applicant approved as
a driver education instructor by the secretary of state before
December 31, 2007 is considered to have complied with this
transcript requirement.
(l) An applicant who is not a resident of this state shall
submit an up-to-date certified driving record from the applicant's
state of residence to the secretary of state. The applicant shall
agree in writing or electronically as prescribed by the secretary
of state to submit an up-to-date certified driving record every 60
days for as long as the applicant is not a resident of this state.
(m) Other information and documents prescribed by the
secretary of state to determine an applicant's qualifications for
certification under this section.
(4) As a condition precedent to the granting of a certificate,
an applicant shall file with the secretary of state, on a form
prescribed by the secretary of state, an irrevocable written or
electronic stipulation. The stipulation shall be signed by the
applicant and state the applicant agrees that legal process
affecting the applicant, served on the secretary of state against
the applicant or the applicant's successor in interest for a
violation of this act, a rule promulgated under this act, or an
order issued under this act, has the same effect as if personally
served on the applicant. This appointment remains in force as long
as the applicant has any outstanding liability within this state
under this act.
(5) The secretary of state may require an applicant to submit
a photograph of the applicant, may prescribe the size and format of
the photograph, and may include a reproduction of the photograph on
the driver education instructor certificate. The secretary of state
may receive the applicant's written or electronic permission to use
the image of the applicant captured and retained under section 307
of the Michigan vehicle code, 1949 PA 300, MCL 257.307, on the
driver education instructor certificate.
(6) A person licensed as a driver training school instructor
by the secretary of state or who has been approved as an instructor
for segment 1 and segment 2 driver education performance objectives
under former 1974 PA 369, and who submits an original driver
education instructor certificate application in accordance with
this act to the secretary of state on or before June 1, 2007, may
provide driver education instruction in accordance with this act
while the secretary of state processes the application. If an
application is received after June 1, 2007, the driver education
provider shall not provide instruction until the secretary of state
processes the application and issues the certificate. The
certificate expires exactly 2 years from the date of issuance.
(7) A person who engages or offers to engage in activity as a
driver education instructor before being certified by the secretary
of state is guilty of a misdemeanor punishable by imprisonment for
not more than 93 days or a fine of not more than $2,000.00, or
both.
(8) The secretary of state may develop and prescribe an
orientation and education program that a person must complete
before receiving an original driver education instructor
certificate issued under this act.
(9) Beginning December 31, 2007, an applicant for an original
driver education instructor certificate is required to complete the
driver education instructor preparation courses described in
section 23. This subsection does not apply to an applicant for a
driver education instructor certificate to conduct truck driver
training.
Sec. 19. (1) The secretary of state may issue a person an
original or renewal driver education instructor certificate if the
secretary of state is satisfied that the person meets the
requirements for that certificate under this act. A certificate may
include the following:
(a) The name of the instructor.
(b) An image of the instructor.
(c) An identification number assigned to the instructor.
(d) One or more driver education training classifications.
(e) Other information determined necessary by the secretary of
state.
(2) A driver education instructor shall display the driver
education instructor certificate card issued by the secretary of
state to that instructor at all times while providing instruction
to a student. A driver education instructor shall provide a copy of
his or her certificate to a driver education provider who utilizes
the instructor's services.
Sec. 21. (1) A certified driver education instructor may apply
to the secretary of state for renewal of his or her driver
education instructor certificate. The application shall be in a
format as prescribed by the secretary of state and shall include
all of the following:
(a) A properly completed application signed by the applicant.
(b) A certification that the applicant complies with the
professional development requirements of this act and any
additional verification regarding compliance with the professional
development requirements of this act as prescribed by the secretary
of state.
(c) A nonrefundable application processing fee of $45.00.
(d) Every 2 years, a new certified medical examination report
that is not older than 90 days and that is prepared by a physician,
a physician's assistant, or a certified nurse practitioner licensed
to practice in this state or in the applicant's state of residence.
The report shall include a statement by the person that certified
the report that the applicant is medically qualified to operate a
motor vehicle and to train others to operate a motor vehicle.
(e) Other information and documents prescribed by the
secretary of state.
(2) If the secretary of state receives a properly completed
renewal application before the applicant's driver education
instructor's current certificate expires, the certificate continues
in full force and effect until the secretary of state either
approves or denies the renewal application. If the secretary of
state does not receive a properly completed renewal application
before the driver education instructor certificate expires, the
driver education instructor shall not offer to engage or engage in
the activity of a driver education instructor until the secretary
of state issues the holder of the expired certificate an original
or renewal driver education instructor certificate as provided in
this act.
(3) The secretary of state shall not issue a renewal
certificate more than 30 days after a driver education instructor
certificate expires unless the instructor has submitted a properly
completed renewal application within 30 days after the
certificate's expiration date. An instructor that applies for a
certificate renewal later than 30 days after the certificate
expires shall apply to the secretary of state for an original
driver education instructor certificate.
(4) A certified driver education instructor shall complete a
criminal history check as described in section 29 to the
satisfaction of the secretary of state every 4 years on a renewal
application for a driver education instructor certificate.
(5) A driver education instructor certificate issued under
this act is valid for 2 years. The original expiration date is
exactly 2 years from the date the secretary of state issues the
instructor an original certificate. An instructor's renewal
certificate expires 2 years after its issuance on the same day and
month that the original certificate expired.
(6) A nonrefundable application processing fee collected under
this section shall be deposited into the driver education provider
and instructor fund created under section 83.
Sec. 23. (1) A college or university or a person approved by
the secretary of state may present a driver education instructor
preparation program. A college, university, or person shall not
offer to engage or engage in the activity of presenting a driver
education instructor preparation program without the prior approval
of the secretary of state.
(2) A college, university, or person may apply to the
secretary of state for approval to conduct a driver education
instructor preparation program. A college, university, or person
seeking approval shall present satisfactory evidence to the
secretary of state as prescribed by the secretary of state that the
college's, university's, or person's proposed program meets the
requirements of this section.
(3) The secretary of state shall review and approve a driver
education instructor preparation program that meets the
requirements of this section. The secretary of state shall give the
college, university, or person requesting approval a written notice
of the secretary of state's approval or denial, including the
reason for any denial.
(4) The secretary of state shall prepare a driver education
instructor preparation program guide as a model for how to conduct
a driver education instructor preparation program. The model
program guide shall identify the content of each course identified
in subsection (7).
(5) Beginning September 1, 2007, a driver education instructor
preparation program shall consist of not less than 4 driver
education preparation courses.
(6) A college, university, or person seeking approval of a
driver education instructor preparation course shall present
evidence satisfactory to the secretary of state that the proposed
course meets the requirements of this section. The secretary of
state shall review a driver education instructor preparation course
and determine whether that course meets the requirements of this
act. The secretary of state shall prescribe the administration and
curriculum of a driver education instructor preparation course. The
secretary of state shall give the college, university, or person
requesting approval written notice of the secretary of state's
approval or denial, including the reason for any denial.
(7) A driver education instructor preparation program shall
consist of not less than 4 driver education instructor preparation
courses. The 4 required courses shall each concentrate on only 1 of
the following concepts, and all of the following concepts shall be
covered in the minimum 4 courses required:
(a) Driver task analysis.
(b) Developing classroom and program knowledge.
(c) Developing vehicle operation skills.
(d) Practicum.
(8) A driver education instructor preparation course shall
consist of not less than 2 semester hours per course or the
equivalent of not less than 2 semester hours per course as approved
by the secretary of state. A driver education instructor
preparation course shall extend for not less than 3 weeks.
(9) An instructor who teaches a driver education instructor
preparation course shall meet the following requirements:
(a) Have a master's degree in education from an accredited
college or university.
(b) Hold a valid driver education instructor certificate
issued by the secretary of state.
(c) Any other requirement the secretary of state determines is
necessary to determine instructor qualifications.
(10) A college, university, or person approved by the
secretary of state that offers a driver education instructor
preparation course shall include in the course registration
material information explaining the driver education instructor
qualifications required under this act.
(11) The secretary of state shall review each driver education
instructor preparation program approved under this section at least
once every 3 years.
(12) A driver education preparation course credit earned
through a college, university, or another entity in another state
may be accepted on the same basis as the equivalent credit earned
through a driver education instructor preparation program conducted
by a college or university or by a person approved by the secretary
of state, if approved by the secretary of state. A person seeking
approval of a driver education course credit earned in another
state shall present satisfactory evidence to the secretary of state
that the other state's course substantially meets the requirements
of this state. The secretary of state shall review a driver
education preparation course credit earned in another state and
determine whether that course content meets the requirements of
this act. The secretary of state shall give the person a written
notice of the secretary of state's approval or denial, including
the reason for any denial.
(13) This section does not apply to an applicant for a driver
education instructor certificate that is limited to the truck
driver training classification.
Sec. 25. (1) A person shall not participate in a practicum
course conducted by a college or university or by a person approved
by the secretary of state unless the person possesses a conditional
driver education instructor certificate.
(2) A person shall apply to the secretary of state for a
conditional driver education instructor certificate. The secretary
of state may issue a person a conditional driver education
instructor certificate after the person presents satisfactory
evidence to the secretary of state that the applicant complies with
both of the following:
(a) Meets all of the driver education instructor application
requirements under section 17 except for completion of a practicum
course.
(b) Is enrolled in a practicum course conducted by a college
or university or by a person approved by the secretary of state.
(3) This section does not apply to an applicant for a driver
education instructor certificate that is limited to the truck
driver training classification.
Sec. 27. Beginning January 1, 2008, the secretary of state
shall establish professional development requirements for a
certified driver education instructor. The secretary of state shall
publish the requirements in a format and manner prescribed by the
secretary of state. Professional development requirements shall
provide the following:
(a) The criteria a driver education instructor shall follow to
select an activity to meet the professional development
requirements.
(b) The date by which an instructor shall complete the
professional development requirements.
Sec. 29. (1) A criminal history check required under this act
shall be performed by the department of state police and the
federal bureau of investigation.
(2) A person required to have a criminal history check shall
send a request for a criminal history check to the department of
state police in a format and as prescribed by the department of
state police. The fees required by the department of state police
and the federal bureau of investigation to conduct the criminal
history check shall accompany a request for a criminal history
check.
(3) The department of state police shall conduct a criminal
history check within 45 days after receiving a proper request and
the required fee for a criminal history check under this section.
After conducting the criminal history check and within that same 45
days, the department of state police shall provide the secretary of
state with a report of the criminal history check. The report shall
contain any criminal history record information on the person
maintained by the department of state police.
(4) Except as otherwise provided in this act, the secretary of
state shall not approve an original or renewal driver education
provider or driver education instructor certificate before
receiving and reviewing the applicable criminal history checks from
the department of state police and the federal bureau of
investigation.
(5) The secretary of state shall use criminal history record
information received under this section only for evaluating an
applicant's qualifications to receive a driver education provider
or driver education instructor certificate under this act. The
secretary of state shall discuss the report or its contents only
with staff of the department of state police or a person who was
involved in the prosecution of a criminal matter noted in a report
for purposes of clarifying whether an offense meets 1 of the crimes
described in section 59. A person who uses criminal history record
information in violation of this subsection is guilty of a
misdemeanor punishable by a fine of not more than $10,000.00.
(6) As used in this section, "criminal history record
information" means that term as defined in section 1a of 1925 PA
289, MCL 28.241a.
Sec. 31. (1) A motor vehicle used by a driver education
provider shall:
(a) Comply with the motor vehicle safety standards required
under both federal law and the laws of this state when used as a
driver education vehicle.
(b) Display an identity, in a size and design prescribed by
the secretary of state, that the vehicle is used in a driver
education course.
(c) Display a driver education provider's identity, in a size
and design prescribed by the secretary of state, that uses the
vehicle in a driver education course.
(2) A driver education provider shall not allow a driver
education instructor to use a motor vehicle in a driver education
course with more occupants than the number of safety belts
installed in the vehicle.
(3) A passenger motor vehicle used by a driver education
provider in a driver education course shall be a dual-controlled
vehicle. For the purpose of this subsection, a "dual-controlled
vehicle" means a motor vehicle that is equipped with a duplicate
brake or, if applicable, a duplicate brake and clutch pedal that is
positioned on the right front floorboard of the vehicle.
Sec. 33. A driver education provider issued a driver education
provider certificate that is classified for teen driver training
under this act shall comply with all of the following:
(a) Verify that a person enrolled in a driver education course
complies with the following:
(i) Is 14 years, 8 months of age or older before beginning a
segment 1 curriculum. A student's initial attendance or
participation in a class shall not begin or commence on a date
after the first day of that scheduled class without good cause.
Except as otherwise provided in this subsection, the student being
less than 14 years and 8 months on the first day of class is not
good cause.
(ii) If less than 14 years, 8 months of age, that the secretary
of state has issued the person an approval, as prescribed by the
secretary of state, for a minor restricted driver license under
section 312 of the Michigan vehicle code, 1949 PA 300, MCL 257.312.
(iii) Meets the physical or mental requirements for a motor
vehicle operator's license under section 309 of the Michigan
vehicle code, 1949 PA 300, MCL 257.309.
(b) Provide a driver education course that has been approved
by the secretary of state under this act.
(c) Administer a knowledge test approved by the secretary of
state under this act to each student at the completion of a driver
education course in accordance with the standards prescribed by the
secretary of state under this act.
(d) For a student or customer who is less than 18 years of
age, sign a written agreement with the student or customer or the
student's or customer's parent or legal guardian. The agreement
shall provide that the driver education provider shall have not
less than 2 students in the vehicle used by the student or customer
during behind-the-wheel instruction. A student's or customer's
parent or legal guardian may waive this requirement only in
writing.
Sec. 35. (1) The secretary of state shall prescribe a model
curriculum for teen driver training under this act. After September
1, 2007, a driver education provider classified for teen driver
training shall use the secretary of state's prescribed model
curriculum or may use an alternative curriculum only after it has
been reviewed and approved by the secretary of state. The secretary
of state may approve an alternative curriculum if it substantially
meets or exceeds the standards of the secretary of state's
prescribed model curriculum.
(2) Under a segment 1 curriculum and segment 2 curriculum
combined, each student shall receive no less than 30 hours of
classroom instruction and 7 hours of behind-the-wheel driver
education course experience.
Sec. 37. (1) A segment 1 curriculum shall include both
classroom and behind-the-wheel driver education course experience.
The classroom instruction and behind-the-wheel instruction shall be
integrated, relate to each other, and meet the following
requirements:
(a) Each student shall receive not less than 24 hours of
classroom instruction. Classroom instruction shall be scheduled to
occur as follows:
(i) Classroom instruction shall occur not more than 2 hours per
day.
(ii) Classroom instruction shall occur over the course of 3 or
more weeks.
(iii) Classroom instruction of 4 or more hours shall be received
before the student begins to receive behind-the-wheel instruction.
(iv) Behind-the-wheel instruction of 3 or more hours shall be
completed before classroom instruction terminates.
(b) Each student shall receive not less than 6 hours of
behind-the-wheel instruction or substitute hours permitted under
this subsection. Behind-the-wheel instruction shall be scheduled to
occur as follows:
(i) A student shall receive not more than 1 hour of behind-the-
wheel instruction per day.
(ii) Not more than 1 student shall occupy the front seat of the
vehicle with the instructor.
(iii) A driver education motor vehicle shall contain not more
than 4 students during behind-the-wheel instruction.
(iv) Not later than 3 weeks after the last classroom
instruction has been completed, a student shall complete any
remaining required behind-the-wheel instruction.
(v) Except as otherwise provided in this section, a student
may receive instruction while operating a motor vehicle at a
multiple vehicle driving facility. One hour of instruction received
at a multiple vehicle driving facility may substitute as credit for
1 hour of behind-the-wheel experience. A maximum of 2 hours of
behind-the-wheel experience can be substituted with instruction
received at a multiple vehicle driving facility.
(c) A student shall receive 4 or more hours of behind-the-
wheel observation time.
(2) A driver education provider classified for teen driver
training shall not substitute behind-the-wheel instruction with
multiple vehicle driving facility experience until the secretary of
state gives the provider written approval for that substitution as
provided in this act.
(3) A driver education provider classified for teen driver
training shall not substitute behind-the-wheel driving experience
with simulator device training.
(4) As used in this section:
(a) "Integrated" means classroom and behind-the-wheel
instruction scheduled to include a mix of classroom and behind-the-
wheel instruction throughout the duration of the driver education
course, except as otherwise provided in this section.
(b) "Observation time" means the time a student in a driver
education course sits in the rear seat of a vehicle and observes
another student in the front seat behind the wheel operating the
controls of the vehicle, responding to driving situations, and with
an instructor sitting in the front seat.
Sec. 39. A segment 2 curriculum course provided under this act
Senate Bill No. 1290 (H-3) as amended September 19, 2006
shall meet [both] of the following requirements:
(a) Be offered only to a student who has done all of the
following:
(i) Successfully completed a segment 1 curriculum driver
education course.
(ii) Held a valid level 1 graduated driver license for not less
than 3 continuous months.
(iii) Acquired 30 or more hours driving experience on a level 1
graduated driver license that includes not less than 2 hours of
night driving with a licensed parent or legal guardian, or with the
permission of a parent or legal guardian, with any licensed driver
who is 21 years of age or older.
(b) Contain 6 or more hours of classroom instruction that is
scheduled so the student receives not more than 2 hours of
classroom instruction per day.
[(c) Contain 1 or more hours of behind-the-wheel instruction
and assessment with the student behind the wheel under the guidance
of a driver education instructor. Driving experience using a
multiple vehicle driving facility or a simulator device does not
satisfy this requirement.]
Sec. 41. (1) Except as otherwise provided in this section, a
segment 1 or segment 2 classroom shall not contain more than 36
students when classroom instruction is given.
(2) A segment 2 class size may exceed 36 students with the
prior approval of the secretary of state. The secretary of state
may approve a segment 2 class size to exceed 36 students for up to
60 minutes per day when justified by a special presentation.
(3) The number of students in a class shall not exceed the
number of students allowed by the fire marshal.
Sec. 43. (1) A driver education provider classified to provide
teen driver training shall issue a driver education course
certificate of completion to a student who successfully passes a
written knowledge test prescribed by the secretary of state for
that segment and successfully completes the other course work for
that segment. The secretary of state shall prescribe the knowledge
test administered to a teen student, including establishing a
passing score and the maximum number of times a student may take
the test.
(2) A driver education provider shall not issue a driver
education course certificate of completion for segment 1 if the
student is not eligible for a graduated driver license.
(3) A driver education provider shall not issue a driver
education course certificate of completion for segment 2 to a
student unless the student has been issued a graduated driver
license.
Sec. 45. (1) Before holding a class, a driver education
provider shall file a projected driver education course schedule
report with and as prescribed by the secretary of state. The course
schedule report shall contain:
(a) The name of the school.
(b) The dates and times of the class.
(c) The classroom location.
(d) The names of the instructors.
(e) Any other information the secretary of state determines is
needed to administer this act or ensure the health, safety, and
welfare of a student or the public.
(2) If a change occurs in the information contained in a
report filed under subsection (1), the driver education provider
shall immediately file an updated projected driver education course
report with the secretary of state or later if authorized by the
secretary of state.
(3) Upon completion of a class, a driver education provider
shall file a course completion report with and as prescribed by the
secretary of state. The course completion report shall contain:
(a) The name of the school.
(b) The dates the class was held.
(c) The name, address, and birth date of each student issued a
certificate of completion.
(d) The inventory control number of each certificate of
completion issued to a student.
(e) Any other information the secretary of state determines is
needed to administer this act or ensure the health, safety, and
welfare of a student or the public.
(4) A driver education provider classified for truck driver
training shall file a report with and as prescribed by the
secretary of state on April 15 and October 15 of each year. Each
report shall contain:
(a) The name, address, and driver license number of each
student enrolled since the provider's last report under this
subsection.
(b) The name of each student who completed a training program.
(c) Any other information the secretary of state determines is
needed to administer this act or ensure the health, safety, and
welfare of a student or the public.
(5) A driver education provider shall file a year-end report
with and as prescribed by the secretary of state on or before
January 31 of each year. The year-end report shall contain all of
the following:
(a) The name of the school.
(b) The number of students who passed and failed each type of
instruction given.
(c) A list of the instructors who taught during the year.
(d) A list of classroom locations utilized during the year.
(e) The tuition charged for each type of instruction.
(f) Any other information the secretary of state determines is
needed to administer this act or ensure the health, safety, and
welfare of a student or the public.
(6) A driver education provider shall maintain a record of the
instruction given to a student as prescribed by the secretary of
state. A student instruction record shall contain all of the
following:
(a) The dates and number of hours of classroom and behind-the-
wheel instruction given the student, signed by the instructors that
gave the instruction.
(b) Complete registration and achievement records for the
student.
(c) A list of the student's payments for tuition, fees, and
purchase or rental of supplies or equipment.
(d) A copy of the signed contract between the school and the
student.
(e) The information contained on a course completion report
for the student.
(f) Any other information the secretary of state determines is
needed to administer this act or ensure the health, safety, and
welfare of a student or the public.
(7) The secretary of state shall prescribe the manner and
method that any information, forms, reports, and other documents
required in this act are submitted to the secretary of state,
including electronic submission.
Sec. 47. (1) A driver education provider shall have a written
agreement with each of its students. A driver education provider
shall not give instruction to a student until after the provider
and the student have entered into the written agreement. The
agreement shall be dated and signed by both the provider and the
student. The agreement shall contain all the terms of the agreement
between the provider and the student and include all of the
following:
(a) The student's name, address, birth date, and telephone
number.
(b) If the student is a minor, the parent's or legal
guardian's name, address, and telephone number.
(c) A description of the instruction to be given by that
provider.
(d) The amount of the fee or tuition charged and paid for the
instruction.
(e) A notice statement prescribed by the secretary of state.
(f) Other information prescribed by the secretary of state.
(2) Before instruction begins, the driver education provider
shall give the student a signed copy of the agreement, accompanied
by a copy of all of the provider's applicable policies.
(3) This section does not apply to an educational institution
or a governmental agency that does not charge a student a fee for
driver education instruction.
Sec. 49. (1) The secretary of state may approve the giving of
a coordinated segment 1 driver education course. A driver education
provider shall not give a coordinated segment 1 driver education
course without the prior written approval of the secretary of
state. The provider shall file a request for approval with the
secretary of state in a format as prescribed by the secretary of
state. The secretary of state may review a request on a case-by-
case basis.
(2) A driver education provider shall not give instruction
under this section until after the provider and the student have
entered into a written agreement as provided in this subsection.
The agreement shall be dated and signed by both the provider and
the student. The agreement shall contain all the terms of agreement
between the provider and the student and include all of the
following:
(a) The student's name, address, birth date, and telephone
number.
(b) If the student is a minor, the parent's or legal
guardian's name, address, and telephone number.
(c) The name of each provider that will give instruction.
(d) A description of the instruction that each provider will
give.
(e) A description of the assessment or test to be administered
by each provider.
(f) The amount of the fee or tuition charged and paid for the
instruction.
(g) The name of the provider responsible for issuing a segment
1 driver education course certificate of completion.
(h) A statement of who is responsible for maintaining each
part of the student's records as required under this act.
(i) Other information prescribed by the secretary of state.
(3) Before instruction begins, the driver education provider
shall give the student a signed copy of the agreement.
(4) This section does not apply to an educational institution
or a governmental agency that does not charge a student a fee for
driver education instruction.
Sec. 51. (1) The secretary of state may require that
information, a record, or any document required to be maintained
under this act be maintained in a format and manner prescribed by
the secretary of state.
(2) The secretary of state may prescribe the format, manner,
and deadline for filing a report with the secretary of state under
this act. Except as otherwise provided in this act, the secretary
of state shall notify a person required to file a report with the
secretary of state of the applicable filing deadline. The secretary
of state shall provide that notice not less than 15 days before the
report is due, unless the secretary of state has reason to believe
the report is needed more quickly to protect the health, safety,
and welfare of a student or the public or to properly administer
this act.
(3) The secretary of state may require information, a record,
or other document that is required to be maintained or filed under
this act to be maintained or filed electronically or as prescribed
by the secretary of state.
(4) A driver education provider shall maintain information, a
record, a report, or other document required under this act at its
established office location.
(5) A driver education provider shall make information, a
record, or other document maintained under this act available for
inspection by the secretary of state or his or her authorized
representative at reasonable times.
(6) If a driver education provider fails to make information,
a record, or other document required under this act available for
inspection at reasonable times, the secretary of state may suspend
the driver education provider's certificate after notice and
opportunity for a hearing.
(7) A driver education provider shall maintain a record
required under this act for not less than 4 calendar years after
the student has ceased receiving instruction from the provider.
Sec. 53. (1) A driver education provider shall verify that a
driver education instructor possesses a valid driver education
instructor certificate issued under this act, before employing,
hiring, contracting, or otherwise engaging the person as an
instructor for a driver education course.
(2) The secretary of state may prescribe the method and manner
that a driver education provider shall use to verify an
instructor's certificate status.
Sec. 55. (1) Before a driver education provider shall provide
behind-the-wheel driver education course instruction to an adult or
truck driver training student, the provider shall verify that the
student has a valid temporary instruction permit issued by the
secretary of state under section 306 of the Michigan vehicle code,
1949 PA 300, MCL 257.306.
(2) The secretary of state may prescribe the method and manner
that a driver education provider shall use to verify a student's
temporary instruction permit under this section.
Sec. 57. A certified driver education provider or instructor
or a provider's designated representative or coordinator shall
immediately notify the secretary of state if convicted of a
violation or attempted violation listed in section 59. A certified
driver education instructor or designated representative or
coordinator of a provider shall also notify his or her driver
education provider employer. A notice required under this section
shall be in a format as prescribed by the secretary of state and
comply with all of the following:
(a) Identify the conviction.
(b) Identify the date of the conviction.
(c) Identify the court that imposed the conviction.
(d) Contain other information as prescribed by the secretary
of state.
Sec. 59. (1) Except as otherwise provided in this section, the
secretary of state shall automatically deny an original or renewal
application for a driver education provider or instructor
certificate and shall automatically immediately revoke a
certificate issued to a person as a driver education provider or
driver education instructor without the necessity for notice and an
opportunity for a hearing if a criminal history check indicates
that the applicant, instructor, provider, or the designated
representative or coordinator of the applicant or provider has been
convicted of a violation or attempted violation, or the secretary
of state receives reliable notice under this section or section 57
of a conviction for a violation or attempted violation of any of
the following:
(a) Criminal sexual conduct, assault with intent to commit
criminal sexual conduct, or an attempt to commit criminal sexual
conduct, in any degree under sections 520b to 520g of the Michigan
penal code, 1931 PA 328, MCL 750.520b to 750.520g.
(b) A felony involving a criminal assault or battery on an
individual.
(c) A crime involving felonious assault on a child, child
abuse in the first degree, cruelty, torture, or indecent exposure
involving a child.
(d) A felony involving the manufacture, distribution, or
dispensing of a controlled substance or possession with intent to
manufacture, distribute, or dispense a controlled substance.
(e) A felony conviction involving fraud as an element of the
crime.
(2) A denial or revocation imposed under this section shall
continue for not less than 10 years from the date of the
conviction.
(3) The department of information technology shall work with
the secretary of state and the department of state police to
develop and implement an automated program that does an annual
comparison of the conviction information received by the department
of state police with a secretary of state list of persons holding a
driver education provider or instructor certificate and the persons
designated as a representative or coordinator of a provider. This
comparison shall only include persons who are actually certified as
a driver education provider or instructor or who are the designated
representative or coordinator of an actually certified provider at
the time of the comparison. Unless otherwise prohibited by law,
this comparison shall include convictions contained in a nonpublic
record. The department of state police shall take all reasonable
and necessary measures using the available technology to ensure the
accuracy of this comparison before transmitting the information
under this subsection to the secretary of state. The secretary of
state shall take all reasonable and necessary measures using the
available technology to ensure the accuracy of this comparison
before notifying a provider, a provider's designated representative
or coordinator, or an instructor of a conviction that results in an
automatic and immediate revocation of a provider or instructor
certificate under this section.
(4) When the secretary of state receives reliable notice of a
conviction for a violation or attempted violation under this
section or section 57 by an applicant's or provider's designated
representative or coordinator, the secretary of state shall
automatically deny an original or renewal application for a driver
education provider certificate or automatically immediately revoke
a provider's certificate under this section if the applicant or
provider fails to immediately terminate the designated
representative's or coordinator's designation or employment as the
provider's designated representative or coordinator.
Sec. 61. (1) Except as otherwise provided in this section, the
secretary of state shall automatically deny a driver education
provider or instructor application or revoke a provider's or
instructor's certificate without notice and an opportunity for a
hearing. The denial or revocation shall remain in effect until the
applicant, instructor, provider, or the designated representative
or coordinator of the applicant or provider completes 5 consecutive
years without a conviction for a violation or attempted violation
for which 4 or more points are assessed under section 320a of the
Michigan vehicle code, 1949 PA 300, MCL 257.320a.
(2) The secretary of state shall automatically deny a driver
education provider or instructor application or revoke a provider's
or instructor's certificate without notice and an opportunity for a
hearing until the driving record of the applicant, instructor,
provider, or the designated representative or coordinator of the
applicant or provider does not have within the prior 2 years 1 or
more of the following:
(a) Three or more driver license denials, suspensions, or
revocations, or any combination of 3 or more denials, suspensions,
or revocations, imposed by the secretary of state for the failure
to appear in court or a failure to comply with a court judgment
under section 321a of the Michigan vehicle code, 1949 PA 300, MCL
257.321a.
(b) A conviction or finding of responsibility for a traffic
violation in connection with 2 or more motor vehicle accidents.
(c) An accumulation of 6 or more points under section 320(a)
of the Michigan vehicle code, 1949 PA 300, MCL 257.320.
(d) A conviction under section 624a, 625(6), or 626b of the
Michigan vehicle code, 1949 PA 300, MCL 257.624a, 257.625, and
257.626b.
(3) When the driving record of an applicant's or provider's
designated representative or coordinator is the cause for the
secretary of state to deny an application or revoke a certificate
under this section, the secretary of state shall automatically deny
an original or renewal application for a driver education provider
certificate or automatically revoke a provider's certificate under
this section if the applicant or provider fails to immediately
terminate the designated representative's or coordinator's
designation or employment as the provider's designated
representative or coordinator.
Sec. 63. (1) The secretary of state shall automatically
suspend or revoke a driver education instructor's certificate
without notice and an opportunity for a hearing if the instructor's
driver license is denied, suspended, revoked, or canceled by this
state or another state. A driver education instructor whose driver
license is denied, suspended, revoked, or canceled by this state or
another state shall immediately return his or her instructor's
certificate to the secretary of state.
(2) The secretary of state may reinstate a driver education
instructor's certificate suspended under this section if the
instructor's driver license denial, suspension, revocation, or
cancellation terminates before the instructor's certificate expires
and the instructor submits a written request to the secretary of
state, as prescribed by the secretary of state, for that
reinstatement.
(3) The secretary of state shall not reinstate a driver
education instructor certificate that is revoked under this
section. A driver education instructor whose certificate is revoked
may apply to the secretary of state for an original driver
education instructor certificate.
Sec. 65. (1) The secretary of state may make, on its own
initiative or in response to a complaint, a reasonable and
necessary investigation within or outside this state and gather
evidence against a person that violated, allegedly violated, or is
about to violate this act, a rule promulgated under this act, or an
order issued under this act, concerning whether a person, an
applicant, a driver education provider, or a driver education
instructor is in compliance with this act or a rule promulgated
under this act.
(2) A person may file a complaint against a person, an
applicant, a driver education provider, or a driver education
instructor with the secretary of state. A complaint shall be made
in a format as prescribed by the secretary of state. The complaint
shall be based upon a violation or attempted violation of this act
or a rule promulgated under this act and shall contain all of the
following information:
(a) The complainant's name, address, and telephone number.
(b) A complete statement describing the basis for the
complaint.
(c) A copy of any record, report, or document that is the
basis for the complaint, including a copy of the student contract,
driver education course certificate of completion issued, or other
documents.
(d) The complainant's signature and the date the complaint was
signed.
(e) Other information as prescribed by the secretary of state.
(3) The secretary of state may mediate a dispute between a
driver education provider or driver education instructor and a
student or the student's parent or legal guardian when a dispute
arises from a violation or attempted violation of this act or a
rule promulgated under this act.
(4) The secretary of state may develop conditions of probation
for the operation of a driver education provider or the training
conducted by a driver education instructor. Conditions shall be set
forth in a written agreement and signed by the driver education
provider or driver education instructor and the secretary of state.
Conditions of probation may be agreed to in place of further
disciplinary proceedings.
Sec. 67. A driver education provider or instructor shall not
engage in a deceptive or unconscionable method, act, or practice.
The following are deceptive or unconscionable methods, acts, or
practices:
(a) Using, adopting, or conducting business under a name that
is the same as, like, or deceptively similar to, the name of
another driver education provider.
(b) Except as otherwise provided in this subsection, using the
word "state", "government", "municipal", "city", or "county" as
part of the name of the driver education provider. This provision
does not apply to an educational institution or a governmental
agency.
(c) Advertising, representing, or implying that a driver
education provider is supervised, recommended, or endorsed by, or
affiliated or associated with, or employed by, or an agent or
representative of this state, the secretary of state, or a bureau
of the secretary of state.
(d) Advertising or publicizing under a name other than the
provider's full business name as identified on the provider's
application for a driver education provider certificate.
(e) Advertising that the provider is open for business before
the secretary of state issues a driver education provider
certificate to the provider.
(f) Soliciting business on the premises of any facility
rented, leased, owned, or used by the secretary of state.
(g) Misrepresenting the quantity or quality of the instruction
provided or the requirements for a driver license, endorsement,
minor restricted or temporary permit, or driver education
certificate.
(h) Failing to promptly restore any deposit, down payment, or
other payment that a person is entitled to after an agreement is
rescinded, canceled, or otherwise terminated as required under the
agreement or applicable law.
(i) Taking advantage of a student's or potential student's
inability to reasonably protect his or her interest because of a
disability, illiteracy, or inability to understand the language of
an agreement, if the driver education provider knows or reasonably
should have known of the student's or potential student's
inability.
(j) Failing to honor a term of a student's, parent's, or legal
guardian's agreement.
(k) Falsifying a document, agreement, record, report, or
certificate required under this act or a rule promulgated under
this act.
(l) Causing or allowing a student, parent, or legal guardian to
sign a document in blank.
Sec. 69. (1) Except as otherwise provided in this act, the
secretary of state may impose 1 or more of the sanctions in
subsection (2) after notice and opportunity for a hearing if the
secretary of state determines that a person, a driver education
provider, a driver education instructor, or an applicant for either
a provider or instructor certificate did 1 or more of the
following:
(a) Failed to meet a requirement under this act or a rule
promulgated under this act.
(b) Violated this act or a rule promulgated under this act.
(c) Made an untrue or misleading statement of a material fact
to the secretary of state or concealed a material fact in
connection with an application for a provider or instructor
certificate.
(d) Permitted fraud or engaged in a fraudulent method, act, or
practice in connection with a driver license or temporary driving
permit application submitted to the secretary of state, or induced
or countenanced fraud or a fraudulent method, act, or practice on
the part of an applicant for a driver license or permit.
(e) Engaged in an unfair or deceptive method, act, or practice
or made an untrue statement of a material fact.
(f) Violated a condition of probation or suspension or an
order issued under this act.
(g) Failed to maintain good moral character as defined and
determined under 1974 PA 381, MCL 338.41 to 338.47, in connection
with business operations.
(2) After the secretary of state determines that a person, a
driver education provider, a driver education instructor, or an
applicant for a provider or instructor certificate committed a
violation listed in subsection (1), the secretary of state may
impose upon the person, provider, instructor, or applicant 1 or
more of the following sanctions:
(a) Denial of an application for a driver education provider
certificate or a driver education instructor certificate.
(b) Suspension or revocation of a driver education provider
certificate or a driver education instructor certificate.
(c) An administrative fine paid to the secretary of state in
an amount not to exceed $1,000.00 for each violation.
(d) A requirement to take the affirmative action determined
necessary by the secretary of state, including payment of
restitution to a student or to an injured person.
(3) A sanction may be imposed under subsection (2) in addition
to criminal penalties otherwise imposed for the same violation
under this act or by law. The remedies and sanctions under this act
are independent and cumulative.
Sec. 71. (1) If the secretary of state determines after notice
and opportunity for a hearing that a person has committed a
violation listed in section 69(1), the secretary of state may issue
an order requiring the person to cease and desist from the unlawful
method, act, or practice or to take an affirmative action that in
the judgment of the secretary of state will carry out the purposes
of this act, including, but not limited to, payment of restitution
to a customer.
(2) If the secretary of state makes a finding of fact in
writing that the public interest will be irreparably harmed by a
delay in issuing an order, the secretary of state may issue a
temporary cease and desist order. Before issuing a temporary cease
and desist order, the secretary of state, when possible by
telephone or otherwise, shall notify the person, the driver
education provider, or the driver education instructor of the
secretary of state's intention to issue a temporary cease and
desist order. A temporary cease and desist order shall include in
its terms a provision stating that upon request a hearing shall be
held within 30 days to determine whether or not the order shall
become permanent.
Sec. 75. (1) The secretary of state may order a summary
suspension of a driver education provider or driver education
instructor certificate pursuant to the administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328, upon an affidavit
by a person familiar with the facts set forth in the affidavit
alleging a violation or attempted violation of this act, a rule
promulgated under this act, or a deceptive or unconscionable
method, act, or practice.
(2) The driver education provider or driver education
instructor to whom the order is directed may apply to the secretary
of state and shall be granted a hearing within 30 days of
application pursuant to the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328.
(3) At the hearing, the order of summary suspension shall be
set aside, continued, or modified by the secretary of state.
(4) If the order of summary suspension concerns the issuance
or authorization of driver education course certificates of
completion, the secretary of state may discontinue accepting
certificates of completion issued or authorized by the provider for
students receiving or completing instruction after the effective
date of the order. The secretary of state may decide to resolve the
summary suspension matter before determining a driver license issue
that involves 1 or more of the certificates of completion.
Sec. 77. The expiration or absence of a driver education
provider certificate or a driver education instructor certificate
does not prevent the secretary of state from proceeding with an
investigation, disciplinary proceeding, or other action authorized
by this act against a person, a driver education provider, or a
driver education instructor.
Sec. 79. A person shall not engage in or offer to engage in
activity as a driver education provider or a driver education
instructor unless the person holds a valid certificate under this
act. A person who violates this section is guilty of a misdemeanor
punishable by imprisonment for not more than 93 days or a fine of
not more than $2,000.00, or both. In addition to any other remedies
provided by law, the secretary of state may impose an
administrative fine of $100.00 for each day the person is found to
have engaged in activity as a driver education provider or a driver
education instructor without being certified under this act.
Sec. 81. In a court proceeding involving a violation of this
act, the court may order the person found guilty of violating this
act to reimburse the secretary of state for the reasonable costs of
the secretary of state's investigation that resulted in the
conviction in addition to any other civil or criminal penalties
allowed by law. Any costs collected under this section shall be
deposited into the driver education provider and instructor fund
created under section 83.
Sec. 83. (1) The driver education provider and instructor fund
is created as a separate fund in the department of treasury. The
fund shall be expended only as provided in this section. The state
treasurer may receive money or other assets from any source for
deposit into the fund. The state treasurer shall direct the
investment of the fund. The state treasurer shall annually present
to the secretary of state an accounting of the amount of money in
the fund. Any unexpended and unencumbered money in the fund at the
close of a fiscal year shall remain in the fund and shall not lapse
or be transferred to the general fund.
(2) A nonrefundable application processing fee, a multiple
vehicle driving facility review and approval fee, and an
administrative fine collected under this act shall be transferred
by the secretary of state to the state treasurer, who shall credit
the money to the fund created under this section.
(3) The secretary of state shall expend money in the fund to
administer this act. The secretary of state may deduct money from
the fund to develop a driver education provider and instructor
program. The secretary of state may deduct from the fund the actual
administrative costs to administer this act, including any
administrative costs to perform inspections, conduct
investigations, or hold administrative hearings.
Sec. 84. After deducting the actual administrative costs of
the department, the balance of the revenue from the fees collected
under this act, up to an annual total of $15,000.00, shall be
deposited in the traffic law enforcement and safety fund created in
section 819a of the Michigan vehicle code, 1949 PA 300, MCL
257.819a.
Sec. 85. The secretary of state may promulgate rules pursuant
to the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, to carry out this act.
Enacting section 1. The driver training schools rules, R
388.351 to R 388.362, and the driver education rules, R 388.302 to
R 388.338, of the Michigan administrative code are rescinded.
Enacting section 2. This act takes effect October 1, 2006.