BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                   THIRD READING 


          Bill No:  SB 344
          Author:   Monning (D)
          Amended:  6/2/15  
          Vote:     21  

           SENATE TRANS. & HOUSING COMMITTEE:  11-0, 4/14/15
           AYES:  Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,  
            McGuire, Mendoza, Roth, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/28/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   Commercial driver's license:  educationCommercial  
                     driver's license: education.


          SOURCE:    Author

          DIGEST:   This bill requires an individual to successfully  
          complete a course of instruction that meets minimum standards  
          established by the Department of Motor Vehicles (DMV) in order  
          to obtain a commercial driver's license.

          ANALYSIS:   


          Existing law:

          1)Prohibits an individual from operating a commercial motor  
            vehicle unless he or she has in his or her immediate  
            possession a valid commercial driver's license of the  
            appropriate class.  A commercial driver's license is required  
            for a variety of trucks weighing more than 26,000 lbs.,  
            passenger buses, and vehicles carrying hazardous materials.  









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          2)Requires an individual, in order to obtain a commercial  
            driver's license, to successfully complete both a written and  
            driving test that comply with the minimum federal standards to  
            operate a commercial motor vehicle.

          3)Authorizes DMV to waive the driving test for an individual  
            with military commercial motor vehicle experience if the  
            individual is currently licensed with the U.S. Armed Forces  
            and his or her driving record and experience meet the minimum  
            federal standards.

          4)Requires DMV to prescribe and conduct commercial written and  
            driving tests, but authorizes DMV to enter into agreements  
            with third-party testers to administer the driving test (the  
            Employer Testing Program).

          5)Exempts members and reservists of the U.S. Armed Forces,  
            National Guard, and U.S. Coast Guard from all commercial  
            driver's license requirements and sanctions.  

          6)Establishes the Bureau for Private Postsecondary Education  
            (BPPE) within the Department of Consumer Affairs to protect  
            students and provide regulatory oversight of private  
            postsecondary (post-high school) educational and vocational  
            institutions.  Requires BPPE to review, investigate, and  
            approve private postsecondary institutions, programs, and  
            courses of instruction and authorizes BPPE to take formal  
            action against institutions to ensure compliance.

          7)Exempts from BPPE regulation an institution that does not  
            award degrees and that solely provides educational programs  
            for total charges of less than $2,500, provided that no part  
            of the charges is paid from state or federal student financial  
            aid programs.  

          This bill: 

          1)Provides that in order to obtain a commercial driver's  
            license, an individual must successfully complete a course of  
            instruction from either a commercial motor vehicle driver  
            training institution or a program offered by an employer, and  
            that has been certified by DMV, in addition to successfully  








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            completing a written and driving test.

          2)Prohibits DMV from certifying a commercial motor vehicle  
            training institution or employer-provided program until the  
            institution or program has submitted to DMV an approved course  
            of instruction that meets the minimum standards set by DMV.   
            Requires DMV to update its standards as necessary to comply  
            with guidance or requirements established by the Federal Motor  
            Carrier Safety Administration (FMCSA).

          3)Exempts from the course requirement a commercial motor vehicle  
            driver with military motor vehicle experience who is currently  
            licensed with the U.S. Armed Forces, provided that his or her  
            driving record and driving experience meet the minimum federal  
            standards.  

          4)Also exempts from the course requirement a commercial motor  
            vehicle driver who presents a valid certificate of driving  
            skill issued through a DMV-approved employer testing program  
            that offers a course of instruction that has been submitted to  
            DMV and meets minimum DMV standards.

          5)Provides that an institution that is certified by DMV to offer  
            a course of instruction to prepare students to obtain a  
            commercial driver's license may not claim an exemption from  
            BPPE regulation.

          Comments

          Purpose.  The author states that 5,327 truck collisions, of  
          which 235 involved fatalities, were reported to the California  
          Highway Patrol in 2012.  In July 2014, a truck with a double  
          tractor-trailer loaded with 50,000 pounds of soil lost control  
          on Highway 17 and crashed into 10 cars, injuring seven people  
          and killing 25-year-old Daniel McGuire of Santa Cruz.  The  
          driver had little, if any, formal training prior to the crash.   
          The author states that by ensuring that commercial truck drivers  
          receive an adequate standard of training, this bill can help  
          reduce the risk of tragic and fatal truck accidents.

          Ensuring legitimate training.  Last year, the Legislature  
          reauthorized the existence of BPPE (SB 1247, Lieu, Chapter 840,  








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          Statutes of 2014).  The Senate Floor Analysis for SB 1247 notes  
          that "As the number of students served by private postsecondary  
          institutions has increased, so has the focus on fraudulent  
          practices and low academic standards.  There have been numerous  
          high-profile federal investigations into the practices of  
          for-profit institutions in recent years."  According to the  
          author, truck driver training options can range from a $7,000,  
          five-month, intensive training program to a $50 DVD.  This bill  
          aims to protect students from fraudulent truck driver training  
          schools by removing the exemption from BPPE regulation for  
          schools that charge less than $2,500 for a course of instruction  
          and by requiring individuals to complete a course of instruction  
          from a DMV-certified institution.

          Employer testing program exemption.  This bill exempts from the  
          course requirement an individual who presents a valid  
          certificate of driving skill issued through an employer testing  
          program.  The DMV's Employer Testing Program (ETP) allows firms  
          that employ commercial drivers to administer driving tests for  
          their employees (but written tests must be taken through DMV).   
          According to the California Trucking Association, 180 employers  
          in the state currently participate in ETP.  In order to  
          participate, employers must apply to DMV, obtain DMV approval  
          for examiners and training, and meet specified record retention  
          requirements.  In addition, DMV regularly inspects and audits  
          ETP participants.  The author amended this bill in the  
          Appropriations Committee to additionally allow employers who are  
          not in ETP to offer the required training, provided that they  
          submit the course of instruction to DMV.  

          Federal standards.  Federal regulations require an individual to  
          successfully pass written and driving tests that meet federal  
          standards in order to obtain a commercial driver's license, but  
          do not require an individual to take a course of instruction.   
          The federal Moving Ahead for Progress in the 21st Century Act  
          (P.L. 112-141, commonly known as MAP-21), signed by President  
          Obama in July 2012, directs FMCSA to establish new regulations  
          for minimum training requirements for individuals applying for a  
          commercial driver's license.  FMCSA has established a  
          stakeholder committee, which began conducting public meetings in  
          March 2015 to consider requirements such as length of classroom  
          instruction and behind-the-wheel experience.  FMCSA intends to  








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          publish proposed regulations late this year.  This bill requires  
          DMV to update its standards as necessary to comply with any  
          FMCSA actions.  This bill was amended in the Appropriations  
          Committee to delay implementation until January 1, 2018, in  
          order to help ensure that DMV regulations address any new  
          federal regulations.

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Appropriations Committee:
          
          1)DMV would incur one-time startup costs of approximately $1.8  
            million in 2017-18, and approximately $1.12 million annually  
            ongoing (Motor Vehicle Account), but only to the extent  
            federal regulations are not adopted prior to that time that  
            would supersede California requirements.  

          2)BPPE estimates costs of approximately $975,000 and 10 PY in  
            2016-17, $1.1 million and 12 PY in 2017-18, and $1.2 million  
            and 12 PY in 2018-19 and ongoing to license and regulate an  
            estimated 180 schools (150 main locations and 30 branch  
            locations).  BPPE costs are expected to be fully covered by  
            initial and ongoing fees charged to training schools.   
            (Private Postsecondary Education Administration Fund)

          3)Using the assumption noted above that 180 schools would be  
            subject to regulation, BPPE estimates licensing fee revenues  
            of $2.1 million in 2016-17 and 2017-18, and $2.2 million in  
            2018-19 and ongoing.  Additional annual "institution fee"  
            revenues would be proportional to BPPE costs for regulating  
            these schools. (Private Postsecondary Education Administration  
            Fund)

          SUPPORT:   (Verified6/1/15)

          California Association of Highway Patrolmen
          California Trucking Association 
          City of Capitola 
          City of San Jose
          City of Scotts Valley
          City of Watsonville








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          Consumer Attorneys of California
          Metropolitan Transportation Commission
          Peace Officers Research Association of California
          Public Advocates, Inc.
          Santa Clara County District Attorney
          Santa Cruz County Board of Supervisors
          Santa Cruz County Regional Transportation Commission
          Truck Safety Coalition
          University of San Diego Center for Public Interest Law
          University of San Diego Children's Advocacy Institute
          University of San Diego Veterans Legal Clinic
          Young Invincibles


          OPPOSITION:   (Verified5/27/15)


          Transdev North America, Inc.


          ARGUMENTS IN SUPPORT:     The California Trucking Association  
          states that its member companies are heavily invested in  
          promoting safety throughout the state, which starts with  
          training drivers on the best practices for roadway driving.   
          This bill will ensure that new commercial drivers have  
          demonstrated proficiency in the knowledge and skills required to  
          drive a commercial vehicle in California before being granted a  
          commercial driver's license.


          ARGUMENTS IN OPPOSITION:     Transdev North America, Inc.,  
          writing in opposition to the prior version of this bill, stated  
          that it "mandates overbroad and ineffective training  
          requirements for city bus operators."  Transdev argued that this  
          bill burdens job applicants, doesn't address public safety, and  
          privatizes a public safety function with no benefit.  

            

          Prepared by:Erin Riches / T. & H. / (916) 651-4121
          6/2/15 19:42:05









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