BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1024


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1024 (Beth Gaines)


          As Amended  June 18, 2015


          Majority vote


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          |ASSEMBLY:  | 79-0 | (May 14,      |SENATE: |40-0  | (September 2,   |
          |           |      |2015)          |        |      |2015)            |
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          Original Committee Reference:  TRANS.


          SUMMARY:  Establishes alternative licensing requirements for  
          operators of driver education schools that do not provide  
          behind-the-wheel driver training instruction, as specified.   
          Specifies that these requirements are to commence for new  
          operators on or after July 1, 2016.


          The Senate amendments: 


          1)Clarify that on or after July 1, 2016, a new driver education  
            operator that only provides driver education coursework and no  
            behind-the-wheel instruction will be subject to the  
            occupational licensing requirements specified in this bill. 


          2)Change the operator's required educational training to obtain  
            an occupational license from eight to 60 hours. 








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          EXISTING LAW: 


          1)Requires Department of Motor Vehicles (DMV) to establish  
            occupational licensing requirements for driving school  
            operators.


          2)Requires driver school operators to meet a number of  
            requirements including, passing a DMV-administered  
            examination, be age 21 or older, and serve as a behind the  
            wheel driving instructor for a minimum of 2,000 hours.   


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee:


          1)The 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)


          2)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)


          3)Minor driving school owner and operator licensing revenues,  
            less than $10,000 annually, beginning in 2016-17. (Motor  
            Vehicle Account)


          COMMENTS:  Currently a minor between 15 and a half years old and  
          18 years old interested in obtaining a driver's license under  
          DMV's graduated driver's license program (GDL) must first  








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          complete both a driver's education course and a six-hour  
          behind-the-wheel driver's training course.  The driver's  
          education course includes information on a variety of topics  
          including the basic fundamentals of being a safe and responsible  
          driver, a review of pertinent driving laws, and GDL program  
          restrictions.  Additionally, behind-the-wheel driver's training  
          allows the minor to practice basic driving skills under the  
          supervision of an instructor.  Once a minor has successfully  
          completed both their driver's education course and driver's  
          training course, the next step is to take DMV's written test to  
          obtain a learner's permit.  


          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.       


          The author introduced this bill on behalf of the sponsor 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  
          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  
          20 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  








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          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.  Thus, an operator rarely, if at all,  
          engages in person with a student.  These particular set of  
          operator requirements originally tailored for the  
          classroom-based driver's education and training model has left  
          many Internet-based driver's education companies struggling to  
          hire or replace operators within a reasonable period, in turn,  
          jeopardizing the company's ability to conduct business. 


          This bill provides an alternative set of occupational licensing  
          requirements for certain new operators.  Senate amendments align  
          a driver education operator's training requirements to similar  
          existing requirements for driver education instructors and also  
          expands the new requirements to any operator that solely  
          provides driver education instruction.  Notably, this bill  
          replaces the 2,000-hour behind-the-wheel instructor requirement  
          with a 60 hour mandatory driver's education program that must be  
          successfully completed.  


          Analysis Prepared by:                                             
                          Manny Leon / TRANS. / (916) 319-2093  FN:  
          0001734