In this subtitle the following words have the meanings indicated. “Drivers’ school” means, except as provided in paragraph (2) of this subsection, any person in the business of giving instruction in the driving of motor vehicles. “Drivers’ school” does not include: Any public school or other noncollegiate educational institution giving instruction in the driving of motor vehicles during its normal school hours and not charging a fee for this instruction; or Any college, university, or other institution of postsecondary education approved by the Maryland Higher Education Commission. “License” means a drivers’ school license issued by the Administration under this subtitle.

Except as provided in §§ 10–14A–03 and 10–14B–03 of the State Government Article, a person may not conduct a drivers’ school unless the person is licensed by the Administration under this subtitle.

Each application for a license shall be accompanied by a nonrefundable application fee established by the Administration.

Each licensee shall pay an annual license fee to the Administration for each license year for which the license is issued. The annual license fee shall be established by the Administration.

After the Administration notifies an applicant of the approval of an application and before the Administration issues a license, the applicant shall file with the Administration a surety bond in the form and with the surety that the Administration approves. The amount of the surety bond shall be $40,000.

Each applicant for a license shall furnish and maintain with the Administration, as to each of its vehicles used for instruction, proof of financial responsibility in the form and amount that the Administration requires.

A license issued under this subtitle authorizes the licensee to conduct a drivers’ school during the license year for which the license is issued. The license shall be displayed conspicuously at the location from which the business of the licensee is conducted.

Each licensee shall maintain all vehicles used for instruction in the condition that the Administration requires.

A drivers’ school may not: Provide or offer to provide any instruction in driving unless the individual who gives the instruction is a driving instructor employed by it; or Employ any individual as a driving instructor unless that individual: Is licensed to drive under Title 16 of this article; Has completed the instructor certification program approved by the Administration; and Is licensed as a driving instructor under Subtitle 8 of this title.

In addition to the other grounds specified in Subtitle 1 of this title for refusal, suspension, or revocation of a license, the Administration may refuse to grant a license under this subtitle to any person and may suspend, revoke, or refuse to renew the license of any person if it finds that: The person has made a material misrepresentation or concealed a material fact in obtaining a license; The person is not the true owner of the drivers’ school; The person or any partner, officer, director, or stockholder of the person, or any other person who has a direct or indirect interest in the drivers’ school: Was the holder of a drivers’ school license that was suspended or revoked by the Administration; or Was an officer, director, stockholder, or partner in a drivers’ school the license of which was suspended or revoked by the Administration; The person or any partner, officer, agent, or employee of the person has committed any fraud in connection with the business conducted under the license, including: Inducing any individual to obtain a driver’s license by illegal or improper means; Representing or implying to any individual by word or deed that a driver’s license or any other license, registration, or other document or service granted by the Administration may be obtained by any means other than those specified by law; or Furnishing or obtaining by illegal or improper means any license, registration, or other document or service granted by the Administration, or requesting or accepting money for that purpose; or As to any drivers’ school that is a participant in the Maryland driver education program, the person has failed to comply with any of the provisions of or any of the rules and regulations adopted under the Maryland Driver Education Program Act. Notwithstanding the renewal of any license, the Administration may revoke or suspend that license for any violation or other cause, as permitted by this title, that occurred during the 2 license years immediately preceding the renewal. As to any person licensed under this subtitle, instead of or in addition to revocation, suspension, or refusal to renew a license under this section, the Administration may order the licensee to pay a fine not exceeding $1,000 for each violation of this subtitle.