DATE:            May 19, 2010


            TO:                  State Driving Businesses Licensure Board


            SUBJECT:      Investigative Report



Fiscal Year 2010 (to date)

            Total Complaints received                                                                                                 1


                        Awaiting Board determination                                                                   1


For Board Determination:


I-DRB-2010-1   C alleged R advertised a school prior to licensure.  IBOL records show that R submitted an application on 10/6/09 and was licensed on 10/22/09.  At the 1/5/10 meeting, the Board requested that an investigation be conducted to determine (1) whether any classes were conducted prior to licensure and (2) what date R first offered classes.  R informed the investigator that in 6/09 she began checking into licensure, and was informed by the Dept. of Education in 7/09 that it was no longer accepting applications and R needed to wait until the new board, laws and rules were in place.  R stated that she found out in 8/09 that the Board was accepting applications so she began the paperwork.  R stated that she reviewed the laws and rules and did not see anything about advertising.  R stated that she thought she would have a license by the end of September so she went to Val Pak to place an ad.  R stated that she informed Val Pak that she did not have her license yet but was in the process of obtaining it.  R stated that Val Pak informed her that she could pull the ad within a month if R did not receive her license in time.  R stated that when it was close to the deadline and she still did not have her license, she called Val Pak to pull the ad but was informed that the ad had already been printed and had been sent out.  “Jane,” the person at Val Pak, informed the investigator that R came in at the end of August 2009 to talk about advertising and informed Val Pak that she did not have her license yet.  Jane stated that she did encourage R to go ahead and get everything set up for the advertising and told R that if the license did not come within a month she could pull the ad and wait until she received her license.  Jane stated that R did call the next month to pull the ad but it had just been printed and sent out.  Jane stated that R did everything she could to stop the advertisement.  Jane stated that R told Jane that if anyone called she would have to tell them that she could not teach until she had her license.  In her written response, R stated that she did not believe that the advertisement violated I.C. 54-5409 (unlawful to offer to practice unless licensed) and that she was not offering to practice without a license but simply informing people about the opening of her school.  R also stated that there have been other schools in her area that advertised before getting licensed, and that none of the licensees had any idea it would take so long for the Board to review licenses.  R stated that as soon as she was informed by the Board that it was delaying reviewing licenses, she tried to cancel the ad but it was too late.  R also provided the investigator with registration forms showing that classes did not begin until 10/28/09, after R was licensed, and the investigation did not reveal any evidence that R conducted classes prior to licensure.  IBOL recommends that the Board authorize closure.