.11 Refusing, Suspending, or Revoking a Drivers' School License.

A. Under Transportation Article, §15-109, Annotated Code of Maryland, the Administration may after notice and hearing suspend, revoke, or refuse to renew a drivers' school license or, after notice and opportunity for hearing, issue a drivers' school license, if the Administration finds that the school has failed to comply with any of the requirements pertaining to the program and school license set forth in this chapter or under Transportation Article, Title 15, Subtitle 7, Annotated Code of Maryland.

B. The Administration shall after notice and hearing refuse to renew or, after notice and opportunity for hearing, issue an initial school license, if the school or applicant:

(1) Provides fraudulent, inaccurate, or incomplete information on required applications, forms, reports, or other required documents; or

(2) Fails to meet any of the requirements set forth in Regulations .04 — .08 of this chapter.

C. A most serious violation, when committed by a school owner or individual responsible for the operation of the business, shall result in a fine of $1,000 for each offense and other disciplinary action. Any second most serious violation shall result in a revocation of the school's license.

D. The most serious violations include a charge for:

(1) Fraud in the operation of providing instruction;

(2) A sex offense;

(3) A crime of moral turpitude;

(4) Contributing to the delinquency of a minor;

(5) An offense involving a controlled dangerous substance;

(6) An offense involving alcohol or drugs while operating a motor vehicle;

(7) A felony involving the use of a motor vehicle;

(8) Acting in a manner that is unsafe for students participating in the program; or

(9) Allowing an individual to provide instruction in the operation of a motor vehicle while the instructor license is refused, suspended, or revoked.

E. Except as provided in §D of this regulation, all other violations set forth in this regulation shall be considered a serious violation.

F. The Administration shall take progressive disciplinary action for any serious violation. The disciplinary action may include a conference, fines, or a suspension or revocation of a school's license.

G. If the Administration refuses to renew, suspends, or revokes a school's license, the school shall have the right to a hearing, as set forth in Transportation Article, §15-110, Annotated Code of Maryland.

H. A school whose license has been suspended or revoked shall immediately:

(1) Surrender the school's license to the Administration;

(2) Stop conducting courses and all school operations; and

(3) Refund the fees paid by the students who enrolled in the courses as follows:

(a) Refund 100 percent of the fees paid if instruction has not started or if the first class of a course was not completed; and

(b) In all other cases, refund a prorated amount based on the portion of courses that have not been completed.