HB593 (2005) Detail

Requiring motor vehicle drivers' schools to post bonds.






AN ACT requiring motor vehicle drivers’ schools to post bonds.

SPONSORS: Rep. J. Flanders, Rock 8

COMMITTEE: Transportation


This bill requires motor vehicle drivers’ schools to post bonds or cash equivalents.

This bill is a request of the department of safety.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.




In the Year of Our Lord Two Thousand Five

AN ACT requiring motor vehicle drivers’ schools to post bonds.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Rulemaking Authority; Driver Education; Bonds. Amend RSA 21-P:14, I(h) to read as follows:

(h) Requirements of bonds and cash deposits required by RSA 263:50-a.

(i) Any other subject which in the judgment of the commissioners requires rulemaking to promote the effectiveness of driver education courses.

2 New Section; Motor Vehicle Drivers' School; Bond Required. Amend RSA 263 by inserting after section 50 the following new section:

263:50-a Bond Required.

I. Every drivers’ school applicant or licensee shall submit with its application for a license or renewal proof of a surety bond in the amount of at least $25,000 obtained through a company approved by the insurance department or its equivalent in cash deposited with the department. The bond or cash shall be only for the benefit of a natural person who suffers a monetary loss on account of the drivers’ school going out of business or the suspension or revocation of the license of the drivers’ school.

II. Recovery against the bond or its cash equivalent may be made by any such person who obtains a final judgment in a court of competent jurisdiction against the drivers’ school. No suit may be maintained to enforce any liability on the bond or cash deposit unless brought within 12 months after the event giving rise to the cause of action.

III. The surety on a bond shall not be liable for total claims in excess of the bond amount, regardless of the number of claims made against the bond or the number of years the bond remained in force.

IV. In lieu of the bond required by this section, the drivers’ school may deposit collateral in the form of cash or a certificate of deposit or letter of credit, as authorized by the banking laws of the state of New Hampshire, which has a face value equal to the amount of the bond so required. Such cash or collateral may be deposited with or executed through any authorized state depository designated by the commissioner. Interest on any such certificate of deposit shall be payable to the drivers’ school that has deposited it as collateral, or to such person as the drivers’ school may direct.

V. Any surety shall provide 60 days' notice of suspension or cancellation of the bond or certificate of deposit or letter of credit to the department and to the drivers’ school.

VI. Failure to maintain a bond or its equivalent required by this section shall constitute grounds for suspension or revocation under RSA 263:51.

3 Effective Date. This act shall take effect January 1, 2006.


HB593 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB593 Revision: 9027 Date: Jan. 21, 2010, midnight