BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   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  








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            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.








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             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.








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          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  







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          "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.  
          







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          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







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          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


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