An Indiana applicant holds a CLP with an S endorsement and asks whether they may carry students during practice driving. What is the best answer?

1. No, a CLP holder with an S endorsement is restricted from operating a school bus with passengers except authorized persons such as examiners, trainees, and the accompanying CDL holder
2. Yes, any student passengers are allowed once the S appears on the CLP
3. Yes, but only if the route is shorter than 10 miles
4. Yes, if the bus has working red warning lights