BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 508
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          Date of Hearing:   April 13, 2009

                        ASSEMBLY COMMITTEE ON TRANSPORTATION
                                   Mike Eng, Chair
                AB 508 (Torlakson) - As Introduced:  February 24, 2009
           
          SUBJECT  :  Provisional driver's licenses

           SUMMARY  :  Adds a $10 fee for provisional driver's license  
          applications in order to fund driver education and training in  
          public schools.  Specifically,  this bill  : 


          1)Makes findings and declarations regarding California's  
            adoption of a graduated driver's licensing system, the  
            benefits of that system, the fact that motor vehicle crashes  
            continue to be the leading cause of death for teenage drivers,  
            the disproportionate fatality rate among younger drivers, and  
            limited funding for driver education and training in the  
            public schools.  


          2)Requires the Department of Motor Vehicles (DMV), in addition  
            to the fees already required to be paid, to charge and collect  
            a new fee of $10 for applications for provisional driver's  
            licenses for the purpose of funding automobile driver's  
            education and training programs.  


          3)Allows DMV to deduct its actual costs to collect and  
            administer the additional fee prior to depositing the  
            remaining funds into the Young Driver Education and Safety  
            Fund (YDESF).  


          4)Establishes the YDESF into which the fees are to be deposited  
            and from which they are to be allocated, upon appropriation by  
            the Legislature, to the Department of Education (CDE).  


          5)Requires CDE, in consultation with DMV, to expend moneys in  
            the YDESF first to support the YDESF Advisory Group and to  
            expend all remaining moneys in the YDESF to increase driver  
            education and training in the public schools, including, but  
            not limited to, providing grants to local educational agencies  








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            to provide driver education and training programs in the  
            public schools.  


          6)Requires DMV's actual costs for administering the grant  
            program to be paid from that allocation.  


          7)Grants priority for funding driver education and training  
            programs from this source to public schools where a minimum of  
            40% of the pupils in grades 9 to 12 are eligible for free or  
            reduced-cost meals through the school lunch program of the  
            United States Department of Agriculture.  


          8)Allows CDE to adopt regulations to implement these provisions.  
             


          9)Requires DMV and CDE to jointly establish the YDESF Advisory  
            Group consisting of local, state, and national experts on  
            highway safety and driver education and training for all of  
            the following purposes:  


             a)   To assess and recommend strategies to improve access to  
               driver education and training, including potential sources  
               of funding for driver education and training programs;


             b)   To evaluate the effectiveness of current driver  
               education and training standards and curriculum and  
               recommend modifications to improve the effectiveness of  
               those standards and curriculum in reducing the fatality  
               rate among teenage drivers; and,


             c)   To review and make recommendations regarding the  
               regulation of private, Internet-based driver education  
               schools.  


          10)Requires DMV and CDE to request each of the following  
            entities to provide a representative to serve as a member of  
            the YDESF Advisory Group:








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             a)   California Highway Patrol;


             b)   DMV;


             c)   CDE;


             d)   Automobile Club of Southern California;


             e)   California State Automobile Association;


             f)   American Insurance Association;


             g)   Driving School Association of California;


             h)   California Teachers Association;


             i)   California District Attorneys Association;


             j)   California Coalition of Law Enforcement Associations;


             aa)  California Association for Safety Education;


             bb)  Association of California School Administrators;


             cc)  National Transportation Safety Board; and,


             dd)  National Highway Traffic Safety Administration.  


          11)Allows DMV and CDE to request an entity that is not listed  








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            above to provide a representative to serve as a member of the  
            YDESF Advisory Group if DMV or CDE determines that  
            representation is necessary for the purposes of this statute.   



          12)Requires the members to meet and hold public hearings, as  
            necessary, to carry out the purposes of the group.  


          13)Requires the members to serve without compensation but allows  
            them to be reimbursed for actual and necessary expenses at the  
            state per diem rate and for reasonable travel expenses to  
            attend meetings and hearings.  


          14)Subjects the members to the Political Reform Act of 1974 and  
            requires them to file a statement of economic interests with  
            the Fair Political Practices Commission.  


          15)Requires DMV and CDE to provide the YDESF Advisory Group with  
            the necessary facilities and administrative support.  


          16)Requires the YDESF Advisory Group, on or before January 1,  
            2012, to a report its findings to DMV, CDE, and the  
            chairpersons of the relevant legislative policy committees of  
            each house.  


          17)Requires moneys required to implement this statute to be made  
            available by CDE from the YDESF.

          18)Sunsets this bill's provisions on January 1, 2013.  

           EXISTING LAW  :

          1)Allows a person, at age 15-1/2, to apply to DMV for an  
            instructional driving permit.  

          2)Allows a permittee, during the permit period, to operate a  
            motor vehicle only when accompanied by, and under the  
            immediate supervision of, a licensed California driver with a  
            valid license of appropriate class, 18 years of age or over  








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            whose driving privilege is not on probation.  

          3)Allows public and private secondary schools, as well as  
            driving schools licensed by DMV, to offer driver education and  
            training to meet the requirements of the provisional license.   


          4)Places driving instruction offered by public secondary schools  
            under the purview of CDE.  

          5)Requires public secondary schools to offer courses in driver  
            education and establishes standards for these courses.  In  
            general, students are required to complete 30 hours of  
            classroom instruction and six hours or more of  
            behind-the-wheel training.  

          6)Requires internet-based driver education courses offered by  
            private secondary schools to be educationally equivalent to a  
            standardized curriculum approved by DMV.  However, DMV is not  
            granted the statutory authority to assess the equivalency of  
            course offered by private secondary schools.  

          7)Requires DMV to license private driving schools and  
            instructors and approve the curricula used by the schools.  

          8)Grants DMV the authority to suspend or revoke the license of a  
            driving school or instructor for cause.  

          9)Establishes the Driver Training Penalty Assessment Fund for  
            the deposit of penalty assessments intended to reimburse the  
            General Fund for payments to public school districts for the  
            actual costs of providing driver training.  (Pursuant to the  
            annual Budget Act in recent years, a portion of those funds  
            has not been used for driver training and instead has been  
            distributed to the Victim-Witness Assistance Fund, the Peace  
            Officers' Training Fund, and the General Fund.)  

           FISCAL EFFECT  :  According to an Assembly Appropriations  
          Committee analysis of similar legislation last year, the  
          following costs were identified:  

          1)One-time costs, in the range of $200,000 in 2008-09, for DMV  
            to develop the collection and remittance process for the new  
            $10 fee on provisional driver licenses.  These costs are  
            reimbursed from a portion of revenue generated by the fee.  








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          2)Ongoing costs, in the range of $75,000 annually starting in  
            2008-09 through 2012-13, for DMV to collect and remit the $10  
            fee.  These costs are covered from a portion of revenue  
            generated by the fee.  

          3)Ongoing costs, in the range of $160,000 in 2009-10 through  
            2011-12, to support the activities of the YDESF Advisory  
            Group.  These costs are covered by a portion of revenue  
            generated by the fee. 

          4)Costs of about $110,000 annually from 2009-10 through 2012-13,  
            to CDE to develop and administer the driver education and  
            training grant program.  These costs are covered by a portion  
            of revenue generated by the fee.

          5)Revenue in the range of $750,000 in 2008-09, $2.1 million from  
            2009-10 through 2011-12, and $1 million in 2012-13, generated  
            by the new $10 fee on provisional driver licenses.  

          6)Costs of about $2.1 million in 2009-10, and $1.7 million from  
            2009-10 through 2012-13, to provide grants to schools to  
            enhance driving programs.  

          The analysis also noted: After deducting DMV's initial and  
          ongoing costs, the costs to support the YDESF Advisory Group,  
          and the CDE's costs to administer the grant program, about $1.7  
          million annually would be available for grants to schools to  
          enhance driving programs.  If grants were provided to each of  
          California's 1,182 high schools, the average grant amount would  
          be only $1,438.  If grants were provided to the 300 high schools  
          that need driving program funding the most, the average grant  
          would still only be $5,667.  While this bill provides grant  
          priority to high schools in low-income communities, it is  
          unlikely a grant of this amount would have much of an impact on  
          a school's driving program, let alone an impact on the teen  
          driver fatality rate, since lack of comprehensive driving  
          programs in high schools is only one contributing factor.

           COMMENTS  :  This bill is essentially a reintroduction of the  
          author's SB 1114 from last year.  That bill passed both the  
          Senate and this committee but died on Suspense in the Assembly  
          Appropriations Committee.  

          The author notes that, "Teen-age drivers in California continue  








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          to die, suffer serious injuries and cause accidents at a greater  
          rate than other age groups, despite a decade of increasingly  
          stricter requirements for licensing young drivers.  At the same  
          time, many public high schools have dropped mandatory driver  
          education classes because of funding shortfalls."  

          He points to declining teen enrollment in high school driver  
          education classes, with 19,226 students enrolled in 2006-07,  
          down from 48,000 students in 1997. "Although 1,220 high schools  
          are licensed to offer driver education, only 304 still teach the  
          subject.  Just seven public high schools offer behind-the-wheel  
          training."  

          The California Strategic Highway Safety Plan (SHSP) developed  
          pursuant to the 2005 federal legislation noted that "newly  
          licensed young drivers with less than one year of driving  
          experience have the highest crash rate of any driver group.   
          While young drivers constitute less than 6% of California's  
          licensed drivers, they accounted for an average of 21% of  
          traffic fatalities from 2002 to 2004."  The SHSP report also  
          points out that one barrier to reducing the number of fatalities  
          attributed to drivers age 15 to 20 is "limited funding for  
          education and driver training in public schools."  

          The author believes that limited funding for drivers training  
          classes in California public schools, coupled with expensive  
          private courses, could be contributing to a negative trend, as  
          witnessed through increased crash rates among 18-year olds.  "It  
          is possible that more teens are waiting until they are 18 to get  
          their license to save the money that they would have to pay to  
          take private driving school courses."  Analysis of state date  
          found only 14% of first-year eligible teens had a license in  
          2006 down from 22% in 1996.  

          Currently, private drivers training courses range in costs from  
          $200 to $400.  By age 18, new drivers are not required to take  
          any driving instructions, either in class or behind the wheel.   
          They are required to pass DMV test before they can drive.  The  
          author adds, "Having more drivers training courses available to  
          our teens is critical not only to their personal safety but that  
          of the general public as well."  

          The California Association for Safety Education (CASE), in  
          supporting this bill, cites both a National Transportation  
          Safety Board recommendation that driver education be revisited  








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          since current standards and practices were framed on highway  
          transportation conditions that existed many years ago, as well  
          as Caltrans' Final Draft Strategic Highway Safety Plan which  
          noted that "reducing young driver crashes is one of the three  
          most effective strategies the state can implement to improve  
          highway safety."  Currently, CASE points out, only about 25% of  
          our public high schools offer driver education.  

          Writing in opposition to this bill, the Driving School  
          Association of California (DSAC) contends that "It is clear that  
          the limited funds made available by your proposed $10 fee is  
          grossly inadequate to provide the training necessary to develop  
          safe, competent teen drivers, particularly after you factor in  
          the cost of purchasing specially modified training vehicles and  
          the cost of maintenance, repairs and fuel."  DSAC also believes  
          the bill relies on a driver education and training regimen that  
          is "grossly inadequate and out of step with reality?the 30 hours  
          of driver education and 6 hours of behind-the-instruction  
          (required by California law) were arbitrarily established 60  
          years ago and cannot reasonably transform a teenage non-driver  
          into a safer driver."  

          Currently, DMV issues approximately 216,000 provisional licenses  
          annually.  By imposing an additional $10 fee, it is estimated  
          that this bill would generate approximately $2.2 million  
          annually.  According to prior fiscal analyses, if the net  
          revenues were divided evenly among all 1,132 high schools in  
          California, each school would receive about $1,438 per year, a  
          figure substantially inadequate to bring significant expansion  
          to driving programs.  Thus, this bill targets low-income area  
          schools, whose students may be unable to afford private driving  
          lessons.  However, according to those same analyses, limiting  
          the funding to the state's 300 neediest high schools would still  
          only provide for annual grants of less than $6,000 per school.   
          Limiting fund distributions to still fewer schools could raise  
          equity issues as the revenue would have been derived from fees  
          charged to student-drivers from throughout the state.  

           Related legislation  :  AB 2107 (Mullin) of 2008, would have  
          required a provisional driver's license applicant under the age  
          of 18, along with all other required documentation, to submit  
          proof that they are enrolled in high school, have graduated from  
          high school, are employed, demonstrate a need to provide  
          transportation for family members, or are an emancipated minor,  
          before a provisional is issued.  That bill was held in the  








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          Assembly Appropriations Committee.   
           
          AB 2414 (Fuller) of 2008, would have authorized a local or  
          county school attendance review board to recommend that DMV  
          suspend the learner's permit or driver's license of a pupil who  
          is less than 18 years of age and has not completed the  
          requirements for graduation from high school, is enrolled in a  
          school but has not attended school for 15 consecutive days or 20  
          total days in one semester or has been deemed an habitual truant  
          pursuant to a specified statutory provision, and has no record  
          of transferring between schools.  That bill was held in the  
          Assembly Appropriations Committee.  

          SB 285 (Runner) of 2007), would have imposed stronger sanctions  
          on drivers who violate the terms of the provisional license.   
          That bill failed passage on the Senate Floor.  

          AB 2175 (Liu) of 2006, would have required DMV to establish a  
          Teenage Driver Education and Training Advisory Committee and to  
          enter into contracts for the design and evaluation of a model  
          driver education and training program.  That bill was vetoed by  
          the Governor Schwarzenegger who suggested that "although the  
          intent of this bill was supported, it was unnecessary, since DMV  
          was already working with the Department of Transportation in the  
          development of a Strategic Highway Safety Plan pursuant to  
          recent federal law."  

          AB 204 (Lowenthal) of-2001, would have required that all funds  
          transferred to the Driver Penalty Assessment Fund, which would  
          otherwise be transferred to the General Fund, be appropriated on  
          an annual basis to the CDE for the purposes of providing driver  
          training instruction in the public schools.  That bill was held  
          in the Assembly Appropriations Committee.  

           Author's amendments  :  The author is proposing to amend the bill  
          to push its operative dates out by one year and to add the  
          California State Parent Teacher Association to the advisory  
          group that the bill would establish.  

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          California Association for Safety Education 
          California State PTA








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          California Teachers Association
          Los Angeles Unified School District
          Letters from two individuals 

           Opposition 
           
          Driving School Association of California
           

          Analysis Prepared by  :   Howard Posner / TRANS. / (916) 319-2093