OAR 735-160-0011: Issuance of Commercial Driver Training School Certificate

(1) An operator must apply for an original or renewal school certificate pursuant to ORS 822.515 and must: (a) Submit a completed application on a form or in a format provided or established by DMV. (b) Meet the qualifications listed in OAR 735-160-0010. (c) Authorize DMV to conduct the operator’s criminal background check. Criminal background information will only be used to determine operator qualifications and may be used as evidence in any contested case hearing or appeal as described in section (6) of this rule. Such information will otherwise be kept confidential and not released to any person unless DMV determines a record, or any portion thereof, must be released pursuant to the Oregon Public Records Law, ORS 192.410 to 192.505, or the Attorney General or a court orders disclosure in accordance with the Oregon Public Records Law. (d) Submit a surety bond issued to the commercial driver training school that permits any person to have a right of action against the school and against the surety on the bond in the person’s own name if the person suffers any loss or damage by reason of the school’s fraudulent representations or violation of rules adopted by the department under ORS 822.515 and complies with the following requirements; (A) The bond shall have a corporate surety licensed to do business within this state. (B) The bond shall be executed to the State of Oregon. (C) The bond shall be in the sum of $2,500. (D) The bond shall be approved as to form by the Attorney General. (E) The bond must be conditioned that the person issued the certificate shall conduct business as a commercial driver training school without fraudulent representation and without violation of any rules adopted by the Department of Transportation under ORS 822.515. (e) If the school intends to administer behind-the-wheel instruction, submit proof of insurance that complies with all of the following: (A) The insurance must be issued to the school. (B) The insurance must be issued by an insurance company authorized to do business in this state. (C) The insurance must show coverage in the amount of $100,000 of bodily injury to or death of one person in any one accident, $300,000 because of bodily injury to or death of two or more persons in any one accident, and $50,000 because of injury to or destruction of the property of others in any one accident. (D) The policy shall designate by explicit description or by appropriate reference all motor vehicles with respect to which coverage is granted. (E) The policy shall insure any and all persons against loss from the liabilities imposed by law for damages arising out of the operation, use or maintenance of the motor vehicle when using any motor vehicle owned or operated by the school with the consent of the school. (f) Submit the fee required under ORS 822.700. (g) Register the business name with the Secretary of State, Corporation Division and provide the registry number. (h) Submit a schedule of all fees and charges for training services, as well as any cancellation policy maintained by the schools (2) The bond described in section (1) of this rule shall be filed and held by DMV. (3) The business location of the school must comply with the requirements of OAR 735-160-0020. (4) Once issued, a school certificate is not transferable to any other commercial driver training school. (5) An operator must submit to DMV a renewal application, all required supporting documents and payment for a school certificate no later than the last day of the calendar year. If all requirements are received prior to expiration of the existing certificate, DMV will provide a grace period for the application to be processed by DMV during which time the existing school certificate will remain valid. A renewal application that is received after the expiration date of the existing school certificate will be treated as an application for an original school certificate. (6) DMV will not issue or renew a school certificate if: (a) The qualifications or requirements set forth in Chapter ORS 822 and OAR chapter 735 division 160 rules are not met; or (b) DMV determines information contained in the application is incomplete or false. (7) If DMV refuses to issue or renew a school certificate, DMV will notify the operator in writing. The operator may request a contested case hearing. The hearing is conducted in accordance with the contested case provisions of the Administrative Procedures Act, ORS chapter 183, and is subject to the following: (a) A request for hearing must be submitted in writing to and received by DMV within 20 days of the date the refusal notification is mailed to the operator. DMV will not issue a school certificate pending the outcome of the contested case hearing. If DMV refuses to renew a school certificate, the expired school certificate remains valid pending the outcome of the contested case hearing, unless the basis for the refusal is failure to provide or maintain a school bond or provide proof of insurance, as required. (b) Failure to timely request a hearing constitutes waiver of the right to a hearing and no school certificate will be issued or renewed until the requirements of ORS 822.500 and 822.515 and the OAR chapter 735, division 160, rules are satisfied. (8) Failure to maintain any of the requirements as prescribed under this rule may result in a sanction as described in OAR 735-160-0115 of a school certificate issued or renewed in accordance with this rule.