Section R17-5-321. Periodic Audits, Monitoring, Inspections, and Investigations

A.      To determine compliance with license requirements, qualifica- tion requirements and applicable federal and state laws and rules, the Department or private entity may:

1.        Monitor for compliance by attending any licensed school’s course or other activities on a scheduled or unscheduled basis;

2.        Audit for compliance by performing periodic reviews of the operations, facilities, equipment, and records;

3.        Inspect for compliance by making random, on-site visits during posted business hours; or

4.        Investigate for compliance by interviewing or submitting questions to school owners, instructors, and former or current students.

B.       Failure of a school or instructor to allow or cooperate in an audit, monitoring, inspection, or investigation may result in the Department issuing an immediate cease and desist order or requesting a hearing for suspension or revocation of a license issued under this Article.

C.      During an audit, monitoring, inspection, or investigation of a licensee, the Department, the private entity, a law enforcement agency, or employee of the Federal Motor Carrier Safety Administration may:

1.        Review and copy paper and electronic records;

2.        Examine the licensee’s principal and established place of business, all branches, training, or road training sites; and

3.        Interview the school’s employees, instructors, and cus- tomers.

D.      A licensee shall make records available for audit, monitoring, inspection, or investigation at the licensee’s principal place of business.

E.       After an audit or monitoring, the Department or private entity shall send a report of the results in writing to the school.

F.       If instances of non-compliance are found as a result of an audit, monitoring, inspection, or investigation, the Department or private entity may determine if either of the following actions is required:

1.        An informal meeting to discuss findings, or

2.        A written compliance plan addressing findings.

G.      If greater instances of non-compliance are found as a result of an audit, monitoring, inspection, or investigation, the Depart- ment may determine if either of the following actions is required:

1.        A probationary period; or

2.        A request for a hearing to cancel, suspend, or revoke a license to operate a school or conduct instruction under this Article.

H.      The Department or private entity may issue a notice of correc- tive action to a licensee if the licensee fails to comply with a warning letter, with an audit, inspection or investigation request, a monitoring request, or with written findings pro- vided by the Department or private entity. Only the Depart- ment may initiate a corrective action provided under subsection (G).

I.        Each site used by a school as an office, training location, or classroom location shall:

1.        Be inspected and approved by the Department or private entity prior to initial use or relocation,

2.        Be licensed by the Department or private entity, and

3.        Have office hours displayed in a conspicuous location at each site open to the public during the posted hours.

J.        There shall be a clearly defined and visible separation between a school and any other business if a professional driver train- ing school or traffic survival school is located in an office building, store, or other physical structure shared with any other business or enterprise.

K.      Any request by a school for inspection and approval of a site on a recognized Indian reservation shall contain the written permission of the appropriate Tribal authority.

L.       Any request by a school for inspection and approval of a site on a military base shall contain the written permission of the appropriate military authority.

M.     A school shall submit to the Department or private entity a copy of the written lease or contract agreement or deed of ownership, if the site is owned by the school, for each site, as applicable.

N.      Any request by a traffic survival school for inspection and approval of a site to be used for educational sessions shall include the approved fire safety capacity of the classroom(s) at that site and shall be signed by a principal of the traffic sur- vival school.

Historical Note

New Section made by exempt rulemaking under Laws 2013, Ch. 129, § 27 at 21 A.A.R. 1096, effective Septem-

ber 1, 2015 (Supp. 15-2).