(1) No person shall engage in the business of conducting a driver training school without a license issued by the director for that purpose. The school's license must be displayed before the school may:

     (a) Schedule, enroll, or engage any students in a course of instruction;

     (b) Issue a verification of enrollment to any student; or

     (c) Begin any classroom or behind-the-wheel instruction.

     (2) An application for a driver training school license shall be filed with the director, containing such information as prescribed by the director, including a uniform business identifier number, accompanied by an application fee as set by rule of the department, which shall in no event be refunded. Before an application for a driver training school license is approved, the business practices, facilities, records, and insurance of the proposed school must be inspected and reviewed by authorized representatives of the director. If an application is approved by the director, the applicant shall be granted a license valid for a period of one year from the date of issuance.

     (3) A driver training school may apply for a license to establish a branch office or branch classroom by filing an application with the director, containing such information as prescribed by the director, accompanied by an application fee as set by rule of the department, which shall in no event be refunded. Before an application for a license to establish a branch office or branch classroom is approved, the business practices, facilities, records, and insurance of the proposed branch location must be inspected and reviewed by authorized representatives of the director. If an application is approved by the director, the applicant shall be granted a license valid for a period of one year from the date of issuance.

     (4) The annual fee for renewal of a school or branch location license shall be set by rule of the department. Subject to the department's inspection of the business, the director shall issue a license certificate to each licensee which shall be conspicuously displayed in the place of business of the licensee. If the director has not received a renewal application on or before the date a license expires, the license will be void requiring a new application as provided for in this chapter, including payment of all fees.

     (5) The person to whom a driver training school license has been issued must notify the director in writing within ten business days after any change is made in the officers, directors, or location of the place of business of the school.

     (6) A change involving the ownership of a driver training school requires a new license application, including payment of all fees.

     (a) The owner relinquishing the business must notify the director in writing within ten business days.

     (b) The new owner must submit an application and fee as prescribed by rule of the department for transfer of the school's license to the director within ten business days.

     (c) Upon receipt of the required notification and the application and fees for license transfer, the director shall permit continuance of the business for a period not to exceed sixty days from the date of transfer pending approval of the new application for a school license.

     (d) The transferred license shall remain subject to suspension, revocation, or denial in accordance with RCW 46.82.350 and 46.82.360.

     (7) Evidence of liability insurance coverage must be filed with the director prior to the issuance or renewal of a school license, and shall meet the following standards:

     (a) Coverage must be provided by a company authorized to do business in Washington state;

     (b) Automobile liability coverage shall be in the amount of not less than one million dollars, and shall include property damage and uninsured motorists coverage;

     (c) The required coverage shall be maintained in full force and effect for the term of the school license;

     (d) Changes in insurance coverage due to cancellation or expiration require notification of the director and proof of continuing coverage within ten working days following any change; and

     (e) Coverage shall be issued in the name of the school and identify the covered locations and vehicles.

     (8) The increased insurance requirements of subsection (7) of this section must be in effect by no later than one year after July 1, 2006.

[2006 c 219 § 4; 2002 c 352 § 24; 1979 ex.s. c 51 § 4.]

NOTES:

     Effective date -- 2006 c 219: See note following RCW 46.82.285.

     Effective dates -- 2002 c 352: See note following RCW 46.09.070.