BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1024 (Beth Gaines) - Driving schools ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 18, 2015 |Policy Vote: T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: June 29, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 1024 would revise the requirements for the operators of driving schools that offer no behind-the-wheel training. Specifically, this bill would require these driving school operators to complete a 60-hour educational program rather working as a driving instructor with at least 2,000 hours of behind-the-wheel teaching experience, in addition to other specified requirements. Fiscal Impact: The Department of Motor Vehicles (DMV) estimates one-time implementation costs of approximately $170,000 to adopt operator educational program requirements, make necessary AB 1024 (Beth Gaines) Page 1 of ? programming changes to implement new licensing codes and fees, and update publications and forms. (Motor Vehicle Account) DMV estimates ongoing administrative costs of $170,000 in 2015-16, $129,000 in 2016-17, and $86,000 annually thereafter for operator education curriculum approval, new driving school curriculum approval, and monitoring and oversight of additional schools. (Motor Vehicle Account) Minor driving school owner and operator licensing revenues, less than $10,000 annually, beginning in 2016-17. (Motor Vehicle Account) Background: Existing law establishes a graduated driver's licensing program for young drivers. Under this program, an individual who is 15 years and six months or older and has completed DMV-approved driver education and training classes (25 hours of instruction through a classroom, home study, or Internet course), may apply for a learner's permit. Once the individual has held the permit for at least six months, and has completed at least six hours of behind-the-wheel training and 50 hours of supervised driving practice, among other requirements, he or she may apply for a provisional driver's license. This license carries certain restrictions, such as limits on driving at night and prohibitions on driving with passengers. Once the individual reaches the age of 18, he or she can apply for a regular driver's license. 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. AB 1024 (Beth Gaines) Page 2 of ? Regardless of the mode of instruction, or whether a school offers behind-the-wheel training or not, existing law requires all driving school operators to meet the following requirements: Pass an examination within three attempts on traffic laws, safe driving practices, operation of motor vehicles, teaching methods and techniques, driving school statutes and regulations, and office procedures and recordkeeping. Pay a $100 fee, which entitles the applicant to three examinations. Be 21 years of age or older. Have worked for a licensed California driving school as a driving instructor for at least 2,000 hours of behind-the-wheel teaching. Complete a course in the teaching of driver education and driver training acceptable to DMV. Proposed Law: Beginning July 1, 2016, AB 1024 would require an individual applying for a first license to operate a driving school that does not offer behind-the-wheel training to meet the following requirements: Pass an examination within three attempts on traffic laws, safe driving practices, operation of motor vehicles, teaching methods and techniques, driving school statutes and regulations, and office procedures and recordkeeping. Pay a fee for each examination taken, not to exceed DMV's reasonable cost of administering the examination. Be 21 years of age or older. Have successfully completed an educational program of not less than 60 hours that is acceptable to the DMV and includes a minimum of 40 hours of classroom instruction and 20 hours of behind-the-wheel instruction. This program shall include, but not be limited to, driving school operator responsibilities and current vehicle laws and regulations. This instruction may be provided by generally accredited educational institutions, private vocational schools, and education programs and seminars offered by professional societies, organizations, trade associations, and other educational and technical programs. AB 1024 (Beth Gaines) Page 3 of ? Related Legislation: SB 1112 (Knight), Chap. 243/2000, increased the driving school operator behind-the-wheel teaching experience requirement from 1,000 hours to 2,000 hours. Staff Comments: This bill is intended to revise the driving school operator licensing requirements for operators of schools that do not provide behind-the-wheel training. Since these schools only offer driver's education, the 2,000 hour behind-the-wheel teaching requirement is replaced with a 60-hour operator education requirement. This educational program requirement mirrors the 60-hour education requirement for driving school instructors. DMV has identified one-time implementation costs of $170,000, which primarily covers staff time for developing and adopting the new education requirements and curriculum frameworks through regulations, and includes about $90,000 for programming the new licensing codes and fees into the occupational licensing system. DMV estimates that the bill would result in a minimum of six education providers submitting operator education curriculum to DMV for approval, and would result in new driving schools offering instruction for new drivers, which also requires curriculum review by DMV. The department has identified ongoing costs to review and approve curriculum for both education program providers and new driving schools, and to provide ongoing monitoring and oversight of new driving schools. DMV estimates these costs to be $170,000 in 2015-16, $129,000 in 2016-17, and $86,000 annually thereafter. Staff notes that DMV already approves curriculum for the 60-hour driving school instructor requirements, which appear to be similar to the requirements for driving school operators specified in this bill. DMV's costs could be mitigated to the extent department staff can look to existing regulations and curriculum requirements for instructors when developing criteria for the operator education curriculum. AB 1024 (Beth Gaines) Page 4 of ? Recommended Amendments: Staff recommends that the bill be amended to update Vehicle Code sections within Chapter 1 of Division 5, pertaining to Driving Schools and Driving Instructors, to include cross references to the new section of law added by this bill, where appropriate. Specifically, various surrounding code sections that cross reference requirements for driving school operators should be amended to include the new §11102.6 added by this bill. -- END --