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 --