BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 2322 (Chu) - Vehicles: instruction permits: decals ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 31, 2016 |Policy Vote: T. & H. 10 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 2322 would require the Department of Motor Vehicles (DMV) to offer a "student driver" decal to driver's instruction permit applicants, and require DMV to charge a fee to cover the costs of producing the decal. Fiscal Impact: One-time DMV costs of approximately $140,000 in 2016-17 to make necessary system changes for charging a fee for the decals. There would be additional up-front costs to design and produce decals, supply an inventory to field offices, update forms, and train staff. (Motor Vehicle Account) Unknown ongoing costs, potentially in the millions annually, depending upon participation, partially offset by decal fees. Staff notes that costs to produce the decals would be recovered from the authorized fee, but additional costs AB 2322 (Chu) Page 1 of ? related to increased staff time for field office transactions, call center time, and postage for mailing decals would not be recoverable. (Motor Vehicle Account) Background: Existing law provides for a graduated driver's licensing structure and provisional driver's license program that restricts the driving privileges of young drivers under the age of 18 in light of their operating inexperience. Prior to applying for a provisional license, a person at least 15-1/2 years of age may apply for an instructional permit. A young driver must hold the instructional permit for at least six months, complete specified driver training instruction, document 50 hours of supervised driving practice, including at least 10 hours of driving during darkness, and successfully complete DMV's examination requirements prior to applying for a provisional license. An instruction permit entitles a person to operate a vehicle, subject to specified limitations, for a period not exceeding 24 months. Existing law authorizes a person who is 18 years of age or older to apply for an original driver's license by passing a traffic laws and signs test, among other requirements. The applicant is issued an instructional permit after passing the written test, and must be accompanied by another person who is at least 18 when practicing driving. An instructional permit holder who is 18 years of age or older may schedule a driving test at any time, and will be issued a valid driver's license following the passage of that test. Proposed Law: AB 2322 would require DMV to offer the recipient of an instructional permit a removable and transferable decal that reads "student driver," which may be affixed to the side or rear window of a vehicle to inform other drivers that the vehicle is being operated by the instructional permit holder. DMV would determine the size of the decal, but it may not exceed four inches by 12 inches. DMV would be required to charge a fee to decal recipients to cover its reasonable costs of producing the decal. Staff Comments: DMV indicates that it processes approximately 1.2 AB 2322 (Chu) Page 2 of ? million instructional permit applications each year. It is unknown how many applicants may wish to purchase a "student driver" decal, but depending on demand, the price for the decal is likely to be in the range of $8 to $10, which would fully offset production costs. DMV would incur significant non-recoverable costs to make one-time programming changes necessary to provide for fee collection, as well as additional ongoing costs for each instructional permit field office transaction, call center inquiries, processing internet transactions and requests for duplicate decals, and postage. Staff notes that there are numerous bumper stickers, removable decals, and magnets available on the open market that may be affixed to a vehicle to indicate it is being operated by a student driver or new driver. These are advertised at various websites on the internet at prices ranging from $3 to $10. -- END --