BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1024


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          Date of Hearing:  May 6, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


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


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill establishes the following alternative licensing  
          requirements for new driving school operators who strictly  
          provide internet-based instruction:









                                                                    AB 1024


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          1)Pass a DMV-required examination, as specified, within three  
            attempts and pay a fee to DMV for each exam taken.


          2)Be at least 21 years of age.


          3)Successfully complete a minimum 8-hour educational program, as  
            specified, that is acceptable to the DMV.


          FISCAL EFFECT:


          Minor absorbable costs to the DMV.


          COMMENTS:


          1)Background. Currently a minor between 15-and-a-half years old  
            and 18 years old interested in obtaining a driver's license  
            must first complete both a driver's education course and a six  
            hour behind-the-wheel driver's training course. 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. Students are also  
            provided a wide range of driver's education and training  
            courses, including classroom only, combined classroom and  
            behind-the-wheel training, home study, Internet-based, and  
            separate driver's training instruction.


          2)Purpose. The author indicates that AB 1024 is intended 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  








                                                                    AB 1024


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            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 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.


            This bill, sponsored by The Distance Learning Company,  
            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.    


          Analysis Prepared by:Chuck Nicol / APPR. / (916)  
          319-2081