Sec. 76.8. Records and contracts

(a) Every licensee shall maintain the following records and shall keep them current by posting each transaction by the close of the third business day following the date of the transaction:

(1) A student record, which may include either electronic or hardcopy media, for each student must contain the complete name, address and telephone number, if any, of such student, the number of each written contract entered into by him, if any, description of services rendered with date and time thereof, name of the instructor performing such services, and number of each receipt given to the student. Such records must be filed and maintained in alphabetic order, but may be maintained in two parts, active and inactive. The student record may not be removed from such file except for posting transactions.

(2) A system to record receipts and disbursements. Such system may be maintained either electronically or in paper form. Tracking must clearly identify whether the entry was a receipt or disbursement. The date of each receipt, name of the student from whom received, receipt number, and amount received must be entered therein; and the date of disbursement, name of payee, description of each disbursement, and the amount of payment must be entered therein. All copies of receipts, and the invoices relating to such disbursement must be retained by the licensee in support of such entries for a period of at least three years. In the case of a school with one or more branch offices, disbursements and invoices may be maintained at the main office and not at each branch office.

(3) A receipt is to be issued each time monies are paid to the school for instruction, training, materials, or for any service for which it is licensed and may make a charge. Such receipts must show the name and address of the school, the receipt number, the name of the student making the payment, the date of payment, amount paid, service rendered, contract number, if any, and duration of each lesson and be signed by an authorized representative of the school. The name and address of the school and the receipt number must be reprinted. Receipt numbers must be in sequence and repetition of numbers is not permissible. The original of each receipt is to be given to the student or person receiving the service, and the duplicate is to be retained by the school in numeric order.

(4) A licensee may substitute for the entries with respect to receipts, as required by paragraph (2) of this subdivision, consolidated entries showing the totals of named instructor's or receiver's duplicate receipts for any one day, provided the entry shows the first and last number of the receipts so issued by any one instructor or receiver. Only one system of recordkeeping of receipts, either as provided for by paragraph (2) of this subdivision or as provided for by this paragraph, may be used by any one licensee.

(b) A licensee may, if desired, contract in writing for the furnishing of lessons and other services to a student, but for such purpose may only use a form of contract which has been approved by the commissioner, and shall number and issue such contracts in consecutive numerical order maintaining on file in such numerical order a duplicate of each thereof; and shall enter the number of such contract on the student record card of the student named therein.

(c) No form of contract will be approved by the commissioner unless it contains, preprinted thereon:

(1) the complete name and address of the school and, if the school is operated under a corporate or an assumed name, the name of the proprietor or principal officer thereof;

(2) the contract number;

(3) a statement concerning the number and duration of classroom and behind-the-wheel lessons to be given, other than the pre-licensing course, except that spaces may be provided for those portions which may vary on each individual contract. If the school offers a pre-licensing course, the contract must state that the contract price does not include the fee for the pre-licensing course;

(4) provision for the use of a vehicle, or vehicles, for the student's road test;

(5) a statement of the terms or alternative terms for payment of the tuition fee and for payment of any enrollment or registration fee;

(6) provisions for the insertion of the name and address of the student, the date of the contract, and for the signatures of the student and the licensee; and

(7) the following statement: “This agreement constitutes the contract between the school and the student, and no verbal statements or promises will be recognized.”

(d) Each written contract made with a student, or if no contract shall be made each receipt issued to a student, shall set forth the following provisions for a refund:

(1) Except for contracts executed by schools licensed by the New York State Education Department and subject to the refund provisions of regulations promulgated by that department, prepayment for lessons and other services shall be subject to refund as follows: if the student, having given prior notice of at least 24 hours, withdraws from or discontinues a prepaid course of instruction or series of lessons before completion thereof, or from any other service for which prepayment has been made, or if the school is unable or unwilling to complete such prepaid course of instruction, or series of lessons, or to provide such other prepaid service, all payments made by the student to the school shall be refunded except:

(i) an amount equal to the enrollment fee, if any, specified in the contract or expressly receipted for, not to exceed the sum of $10 or 10 percent of the total, whichever is greater, specified cost of such course of instruction or series of lessons; and

(ii) the school's per-lesson tuition charge for each lesson already taken by the student, which charge shall be determined by dividing the total cost of such course of instruction or series of lessons by the number of lessons included therein.

(e) The instructor is required to ascertain, before giving behind-the-wheel training, that a student possesses a learner's permit or a driving license.

(f) If behind-the-wheel instruction is carried on in groups rather than with individual students, all contracts and advertisements of the driver training school must so indicate. No more than four persons, including the instructor, may occupy any motor vehicle during a behind-the-wheel instruction period.

(g) No school shall represent or agree, orally or in writing, to give instructions until a license is obtained by the applicant, as a part of an inducement to perform.

(h) If the licensee performs the functions of a private service bureau, records as required in section 77.5 of this Title, with respect to private service bureaus, must be maintained.

(i) The loss, mutilation or destruction of any records which a drivers' school is required to maintain under this Part must be reported to the commissioner immediately by affidavit stating:

(1) the date such records were lost, destroyed or mutilated;

(2) the circumstances involving such loss, destruction or mutilation; and

(3) the name of the precinct, police officer or police department to which such loss or destruction was reported, and the date of such report.

(j) All records and contracts must be retained for three years during which period they shall be subject to inspection by the commissioner or his duly authorized representative at all times during regular stated hours or upon the department's request.

(k) A contract entered into by a drivers' school and by a veteran or other eligible person receiving benefits pursuant to article 34, title 38 of the United States Code, whereby such veteran or other eligible person is a current holder of a certificate of eligibility issued by the Veterans Administration, for a specific course of instruction to be given at such drivers' school, must contain the following statements:

“If a student fails to enter, withdraws, or is discontinued before completion of the course, the sum charged for tuition (fees and other charges) for the completed portion of the course will be: (a) $10 of the established registration fee; and (b) the stated cost of such textbooks, tools, etc. as have been issued by the school and accepted by the student; and (c) an amount derived from the actual hours of attendance, multiplied by the hourly rate; and (d) an amount derived from such absences as have occurred up to 20 percent of the length of the course multiplied by the hourly rate, except that the hourly rate shall be substituted for such absences as have been made up by scheduled work; and (e) 10 percent of the tuition charged for that portion of the course completed by the student and described in (c) and (d) above. Any money paid to the school by the student, in excess of this sum, will be refunded promptly. A transcript of the student's record will be issued to the student provided all payments have been made in accordance with (a)-(e) above.”

The refund provisions so contained in such veteran's contract shall be exclusively applicable thereto and in lieu of the refund provisions otherwise provided for by subdivision (d) of this section.

(l) A licensee may use a computer printout showing receipts and disbursements and all other information required by paragraph (a)(2) of this section. If the licensee has one or more branch offices, the printout must distinguish the receipts and disbursements of the main office from each branch. A copy of such computer printout must be maintained at the main office. If the licensee maintains its main office out-of-state, a computer printout pertaining to any branch office located in this State must be maintained at such branch office.

(m) A licensee, who is certified to administer the written, road sign and road tests to instructor applicants, must maintain the applicant's written test, report of road test and visual acuity report for three years.