BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1024| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1024 Author: Beth Gaines (R), et al. Amended: 6/18/15 in Senate Vote: 21 SENATE TRANS. & HOUSING COMMITTEE: 11-0, 6/16/15 AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15 AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen ASSEMBLY FLOOR: 79-0, 5/14/15 - See last page for vote SUBJECT: Driving schools SOURCE: Distance Learning Company DIGEST: This bill reduces the education requirement for driving school operators. ANALYSIS: Existing law: New Drivers Under 18 Years of Age 1)Establishes a provisional driver's license program for individuals between 16 and 18 years of age. Under this program, an individual who is 15 years and six months or older AB 1024 Page 2 and has completed Department of Motor Vehicles (DMV)-approved driver education and training classes (25 hours of instruction through a classroom, home study, or Internet course), may apply to the DMV 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 nighttime driving; once the individual turns 18, he or she can apply for a regular driver's license. Driving School Owners 2)Requires a driving school owner to be licensed by DMV. The owner must meet the following requirements within one year of applying for a license: a) Maintain an established place of business open to the public; b) Have the proper equipment necessary to give instruction in the operation of the class of vehicles for which the course is designed; c) File with DMV a $10,000 bond and meet related requirements; and d) Meet the requirements for a driving school operator, or designate an operator to meet these requirements if the owner is not the operator. Driving School Operators 3)Requires a driving school operator to be licensed by DMV. The operator must meet the following requirements within one year of applying for a license: a) Within three attempts, pass a written examination on traffic laws, safe driving practices, operation of motor vehicles, teaching methods and techniques, driving school statutes and regulations, and office procedures and recordkeeping. AB 1024 Page 3 b) Pay to DMV a $100 fee to cover the written exam(s). c) Be 21 years or older. d) Have worked for an established, licensed California driving school as a driving instructor for at least 2,000 hours of behind-the-wheel teaching and have successfully completed a course in the teaching of driver education. Driving School Instructors 4)Requires a driving school instructor to be licensed by DMV. The instructor must meet the following requirements within one year of applying for a license: a) Have a high school education or equivalent; b) Have successfully completed a course in the teaching of driver education and driver training, including at least 40 hours of classroom instruction and at least 20 hours of behind-the-wheel instruction; c) Within three attempts, pass a written examination required by DMV on traffic laws, safe driving practices, operation of motor vehicles, and teaching methods and techniques; d) Be physically able to safely operate a motor vehicle and to train others to operate a motor vehicle; e) Hold a valid California driver's license in a class appropriate to the type of vehicle for which instruction will be given; f) Not be identified by DMV as a negligent operator; g) Have a clean driving record; and h) Be 21 years or older. If an applicant is disabled, DMV may issue a driving school instructor's license restricted to classroom driver education instruction only. AB 1024 Page 4 This bill requires, beginning July 1, 2016, an individual who is applying for a first license to operate an Internet-based driving school that does not offer behind-the-wheel training to meet the following requirements: 1)Within three attempts, pass a written examination on traffic laws, safe driving practices, operation of motor vehicles, teaching methods and techniques, driving school statutes and regulations, and office procedures and recordkeeping. 2)Pay to DMV a fee for each examination taken, not to exceed the reasonable cost of administering the examination. 3)Be 21 years or older. 4)Have successfully completed an educational program of at least 60 hours, including at least 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 acceptable to DMV. Comments Purpose. The author states that an operator of a driving school that provides only driver's education, in an online or home-based study program, is required to complete the same 2,000-hour instruction requirement as an operator of a driving school that also provides behind-the-wheel training. The author states that requiring 2,000 hours of behind-the-wheel instruction is an unnecessary regulatory burden on Internet-based companies that are not providing driver's training instruction. The changing world of driving schools. In the past, teenagers could take driver's education and driver's training classes as part of their high school curriculum. However, with budget cuts this instruction faded away, and driving schools materialized to fill the void. When the Legislature and DMV first began regulating driving schools, a student typically went to a AB 1024 Page 5 "brick-and-mortar" driving school for both driver's education and driver's training. Now, however, there are many Internet driving schools offering driver's education. Operator requirements. Although a driving school instructor must complete 60 hours of coursework (40 hours in the classroom and 20 hours behind the wheel), a driving school operator must complete 2,000 hours of behind-the-wheel instruction. The operator oversees the business operations and instructors and is also expected to be familiar with all of the laws relating to the subject matter being taught, answer any consumer questions or customer complaints, and ensure that the school is being operated in accordance with all laws. The Legislature increased the requirement from 1,000 hours to 2,000 hours a number of years ago with SB 1112 (Knight, Chapter 243, Statutes of 2000), in order to help ensure that an operator had at least two years of experience. Traditionally, operators were often teachers who "promoted up" to operator, or left to start their own school. In such cases, the significant behind-the-wheel requirement was not a barrier because anyone who had taught for a year had already met it. Now, however, there are many Internet driving schools which offer only driver's education. The source of this bill, the Distance Learning Company, states that "there is no logic to requiring a full year of behind-the-wheel teaching for an operator of an entirely online program" and that it is time to modernize the operator licensing requirements. Opposition arguments. Writing in opposition to this bill, the Driving School Association of California states that the 2,000-hour requirement ensures that driving school operators are "experienced individuals who have a complete working knowledge of the complex fields of driver education and driver safety as well as a thorough understanding of the underlying laws, codes, and DMV regulations required to operate a driving school." The Association argues that the operator is the sole conduit between the school and the DMV and is responsible for ensuring that the education program delivered to the public meets DMV standards. The driving school operator also hires and trains instructors. The Association states that this bill will damage the quality and credibility of the driving school industry and of driver education for novice drivers. AB 1024 Page 6 FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee: DMV estimates one-time implementation costs of approximately $170,000 to adopt operator educational program requirements, make necessary 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) SUPPORT: (Verified8/27/15) Distance Learning Company (source) OPPOSITION: (Verified8/27/15) A1 Driving School of California A1 Traffic School Bay Area Driving School Condor Driving School Dollar Driving School, Inc. Drive Star Driving School Driver's Ed.com Driving School Association of California Santa Fe Driving and Traffic School Teen Driving Online AB 1024 Page 7 West Point Driving School ASSEMBLY FLOOR: 79-0, 5/14/15 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Bonta Prepared by:Erin Riches / T. & H. / (916) 651-4121 8/31/15 9:06:03 **** END ****