California Driving School License: Owner and Operator Rules

California's DMV requires three separate licenses for a driving school: an owner license for the business, an operator license for the person who directs and manages it, and an instructor license for each person who teaches. One person can hold more than one, but the owner license by itself does not let you teach.

This guide explains each license, the OL 222 owner application checklist, and the bond, insurance, office and vehicle rules.

Key takeaways

• The DMV's Occupational Licensing branch issues owner, operator and instructor licenses.
• Owners file a $10,000 surety bond (or a deposit agreement) and pay a $150 application fee, plus small extra fees.
• Operators must be 21 and, for most schools, show 2,000 hours of behind-the-wheel teaching at a licensed California school.
• Lesson plan approval can take at least 120 days, so start early.

The three licenses

The DMV describes the roles on its driving school licensing page:

• Owner: licensed to own a school that offers motor vehicle instruction.
• Operator: "either the owner or an employee who is designated by the owner to direct and manage the school."
• Instructor: an employee licensed to teach motor vehicle operation.

A school needs all three in place to give instruction. There is also an Independent Driving Instructor license for small cities with no licensed school, which is outside the scope of this post.

Owner license: the OL 222 checklist

The OL 222 Driving School Owner Application Checklist is the roadmap. In order, it asks for:

First: lesson plan approval before offering driver education or instructor training. Plan for at least 120 days, or submit a letter authorizing use of a previously approved plan.

Fees: a $150 non-refundable fee, $70 per additional branch and a $1 family support fee.

Forms:

1. OL 216, Application for Occupational License
2. OL 218 principal surety bond, or OL 25E deposit agreement, plus STD 204 payee data record
3. OL 4002, Certification of Compliance with Labor Code 3700 (workers' compensation)
4. OL 29B, Personal History Questionnaire, for each owner
5. ADM 9050, Appointment of Director as Agent for Service of Process, for each owner
6. DMV 8016 Live Scan receipt for each person completing OL 29B (out-of-state residents use a fingerprint card)

Documents: your lesson plan approval letter; a Secretary of State statement of information for corporations or LLCs; a fictitious name statement if your surname is not in the business name; a signed lease or rental agreement; any city or county business license; and an operator application, or a designated operator.

If you'll teach behind the wheel: OL 207 insurance certificate and an OL 221A safety inspection for each car (OL 221M for motorcycles).

Submit it to a local Occupational Licensing Inspections Office. Incomplete applications are returned, and the DMV does not make copies for you. While your application is reviewed, the DMV may issue a temporary permit for up to 120 days.

The owner license page adds a few items: a property use verification (OL 140), photos of the office, signage and location, $50 for a book of 25 student licenses if you issue them, and $42 per out-of-state fingerprint card. Owner renewal is $50 plus $1, and $50 per branch.

The bond

The OL 218 bond is $10,000. It protects students: the condition is that the owner won't practice fraud or make fraudulent representations that cause a monetary loss to a person taking driving instruction. The bond runs continuously across license periods. See Driving School Surety Bonds: Which States Require Them.

Office and vehicle rules in the Vehicle Code

Vehicle Code section 11102 sets several owner requirements:

• Keep an established place of business open to the public.
• No office within 500 feet of a DMV office, unless it was there on or before January 1, 1976.
• Training cars need an additional foot brake on the right side and an additional right-side rearview mirror.
• Qualifying requirements must be met within one year of applying, or you start over.

Insurance minimums

The OL 207 insurance certificate lists the minimum liability coverage for training vehicles:

• $150,000 for bodily injury or death of one person in any one accident
• $300,000 for bodily injury or death of two or more people in any one accident
• $50,000 for damage to property of others in any one accident

The certificate must list every vehicle used. If you stop using a car, file an OL 206. More on coverage in Driving School Insurance: Required Coverage and Costs.

Operator license

The operator license is for the person who runs the school day to day. Requirements:

• At least 21 years old
• 2,000 hours of behind-the-wheel teaching at a licensed California driving school (original applicants; internet-only schools instead certify 60 hours of operator training)
• A written exam on traffic laws, safe driving, teaching methods for minors, and driving school statutes, ethics, office procedures and record keeping. Three failed attempts means a new application and fees.
• Live Scan clearance (original applications)

Fees are $100 to apply, $100 for the exam if applicable, $55 for a retest and $1 for family support. Renewal is $100 plus $1, and renewing operators may submit an approved 18-hour continuing education certificate instead of the exam.

O*NET's license summary, based on DMV information, notes another path: being certified by the Department of Education to teach driver education and having taught it in public schools for at least 1,000 hours.

Instructor license

The instructor license requires:

• Age 21 or older and a valid California driver's license
• Proof of high school graduation or equivalent
• Live Scan clearance and a physician's health report (DL 546A)
• The employing school's license number
• A written exam including first aid and teaching methods for minors

Fees are $30 to apply, $30 for the license and $1. Instructors who work for more than one school need a letter from each employer. To compare with other states, see How to Become a Driving Instructor: Requirements by State.

After you're licensed

Keep your bond and insurance current, file modifications when you change a name, address, officer or branch ($70 each for owners), and track renewal dates for all three license types.

Parents can look up California schools with the DMV's Occupational License Lookup. You can also list your school in RoadVerified's directory for free, earn a verified-school check mark, and issue certificates with a verification code and QR that anyone can check at roadverified.com/verify.

FAQ

What is the difference between a driving school owner and operator in California?

The owner holds the business license. The operator directs and manages the school and must meet experience and exam requirements. The owner can be the operator or can designate a qualified employee.

How much is the California driving school bond?

$10,000, filed on form OL 218. The OL 222 checklist also allows a deposit agreement (OL 25E) instead.

What insurance does a California driving school need?

The OL 207 certificate requires at least $150,000 per person and $300,000 per accident for bodily injury, and $50,000 for property damage, for each vehicle used.

How long does it take to get a California driving school license?

The DMV says to plan at least 120 days for lesson plan approval. A temporary permit of up to 120 days may be issued while the application is reviewed.

Get your school verified

Licensed in California? claim your free listing on RoadVerified so families can find and verify your school.