BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2322 (Chu) - Vehicles:  instruction permits:  decals
          
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          |Version: May 31, 2016           |Policy Vote: T. & H. 10 - 1     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Mark McKenzie       |
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          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  







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            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  








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          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.




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