BILL ANALYSIS Ó AB 1024 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1024 (Beth Gaines) As Amended June 18, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 79-0 | (May 14, |SENATE: |40-0 | (September 2, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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. AB 1024 Page 2 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 AB 1024 Page 3 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 AB 1024 Page 4 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