BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1024


                                                                    Page  1





          Date of Hearing:  April 20, 2015


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 1024  
          (Beth Gaines) - As Amended April 14, 2015


          SUBJECT:  Driving schools


          SUMMARY:  Establishes alternative licensing requirements for  
          operators of Internet-based driver education schools, as  
          specified.  Specifies that these requirements are to commence  
          for new operators on or after July 1, 2016.    


          EXISTING LAW: 


          1)Requires DMV to establish occupational licensing requirements  
            for driving school operators. 


          2)Requires driver school operators to meet a number of  
            requirements including, passing a DMV-administered  
            examination, be age 21 or older, and serve as a behind the  
            wheel driving instructor for a minimum of 2,000 hours.   


          FISCAL EFFECT:  Unknown


          COMMENTS:  Currently a minor between 15 and a half years old and  








                                                                    AB 1024


                                                                    Page  2





          18 years old interested in obtaining a driver's license under  
          DMV's graduated driver's license program (GDL) must first  
          complete both a driver's education course and a six hour  
          behind-the-wheel driver's training course.  The driver's  
          education course includes information on a variety of topics  
          including the basic fundamentals of being a safe and responsible  
          driver, a review of pertinent driving laws, and GDL program  
          restrictions.  Additionally, behind-the-wheel driver's training  
          allows the minor to practice basic driving skills under the  
          supervision of an instructor.  Once a minor has successfully  
          completed both their driver's education course and driver's  
          training course, the next step is to take DMV's written test to  
          obtain a learner's permit.  


          DMV licenses and approves all owners, operators, and instructors  
          of driver's education and driver's training courses.  DMV also  
          establishes course curricula, conducts monitoring activities,  
          and performs other regulatory functions.  Driver's education  
          operators and instructors are also subject to separate licensing  
          requirements due to their differing responsibilities -  
          instructors provide coursework instruction and engage with  
          students, whereas operators carry out administrative functions,  
          oversee instructors, and, at times, provide instruction.   
          Students are also provided a wide range of driver's education  
          and training courses including classroom only driver's  
          education, combined classroom driver's education and  
          behind-the-wheel training, home study driver's education,   
          Internet-based driver's education, and separate driver's  
          training instruction.       


          The author introduced AB 1024 on behalf of the sponsor to  
          eliminate what she believes is an unnecessary requirement for  
          Internet-based driver's education operators.  Presently a  
          driver's education operator must meet a number of requirements  
          in order to obtain a DMV-issued occupational license including  
          serving as a driving instructor for a minimum of 2,000 hours.   
          While these requirements ensured an operator was adequately  








                                                                    AB 1024


                                                                    Page  3





          trained to manage both driver's education and training courses  
          twenty years ago, the use of Internet-based companies solely  
          providing driver's education courses has steadily increased.   
          These online courses typically provide only driver's education  
          coursework and then, upon successful completion, refer the  
          student to local driver's training courses.  An available  
          instructor or operator is required to be available via online  
          chat or through a customer service line to answer any questions  
          a student may pose.  Thus, an operator rarely, if at all,  
          engages in person with a student.  These particular set of  
          operator requirements originally tailored for the  
          classroom-based driver's education and training model has left  
          many Internet-based driver's education companies struggling to  
          hire or replace operators within a reasonable period, in turn,  
          jeopardizing the company's ability to conduct business. 


          This bill provides an alternative set of licensing requirements  
          for new operators who only administer Internet-based driver's  
          education.  Notably, this bill replaces the 2,000 hour  
          behind-the-wheel instructor requirement with an eight-hour  
          mandatory driver's education program that must be successfully  
          completed.  The author notes that AB 1024 will "remove the  
          unnecessary 2,000 hour requirement of behind-the-wheel training  
          from operators of Internet-based driver's education companies  
          who don't provide behind-the-wheel training in the course of  
          their business." 


          REGISTERED SUPPORT / OPPOSITION:




          Support


          The Distance Learning Company (Sponsor) 









                                                                    AB 1024


                                                                    Page  4








          Opposition


          None on file 




          Analysis Prepared by:Manny Leon / TRANS. / (916) 319-2093