BILL ANALYSIS Ó
SB 344
Page 1
Date of Hearing: July 7, 2015
ASSEMBLY COMMITTEE ON HIGHER EDUCATION
Jose Medina, Chair
SB
344 (Monning) - As Amended June 23, 2015
SENATE VOTE: 38-1
SUBJECT: Commercial driver's license: education
SUMMARY: Prohibits, effective January 1, 2018, an institution
offering commercial driver's license training courses from
claiming an exemption from the licensure and oversight by the
Bureau for Private Postsecondary Education (BPPE), and requires,
effective January 1, 2018, persons issued a commercial driver's
license to have attended a Department of Motor Vehicles (DMV)
certified instruction course. Specifically, this bill:
1)Prohibits, commencing January 1, 2018, an institution that
offers a course of instruction to prepare students to obtain a
commercial driver's license that is certified by the DMV from
claiming an exemption from the BPPE.
2)Prohibits a person from being issued an original commercial
driver's license until he or she has satisfied all of the
following requirements:
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a) Commencing January 1, 2018, successful completion of a
course of instruction from a commercial motor vehicle
driver training institution or program offered by an
employer that has been certified by the DMV, except as
provided. The DMV is prohibited from certifying a
commercial motor vehicle driver training institution or
program offered by an employer until the institution or
program has submitted an approved course of instruction
that meets minimum standards set by the DMV. The course of
instruction is required to include, at a minimum, standards
necessary to ensure a driver is proficient in safely
operating a commercial vehicle. The DMV is required, as
necessary, to update the required standards to comply with
the guidance or requirements issued by the federal Motor
Carrier Safety Administration;
b) Provides exemptions from the aforementioned training
requirements for individuals who meet other outlined
requirements;
c) Successful completion of a written and driving test,
conducted by the DMV that complies with the minimum federal
standards established by the federal Commercial Motor
Vehicle Safety Act (Act); and,
d) Satisfaction of all other requirements of the federal
Act and any other requirements imposed by California law.
EXISTING LAW:
1)Establishes the BPPE within the Department of Consumer Affairs
to provide oversight of private postsecondary educational
institutions. Requires BPPE to review, investigate, and
approve private postsecondary institutions and authorizes BPPE
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to take formal action against institutions to ensure
compliance and protect students. (Education Code Section
94800 et seq.)
2)Several types of institutions are exempt from BPPE regulation,
including non-degree granting institutions that do not
participate in federal or state financial aid programs and
provide programs costing less than $2,500. (EDC Section 94874)
FISCAL EFFECT:
COMMENTS: Double-referral. This bill was heard in the Assembly
Transportation Committee on Monday, June 29, 2015, relative to
the issuance of a commercial driver's license and the
responsibilities assigned to the DMV. This analysis focuses on
the responsibilities assigned to the BPPE.
Purpose of this bill. According to the author, "there were
5,327 truck collisions reported in 2012, of which 235 were
fatal. In July 2014, a double tractor trailer loaded with
50,000 pounds of soil on Highway 17 lost control and crashed
into 10 cars, injuring 7 individuals and killing 25-year-old
Daniel McGuire of Santa Cruz. The driver had little, if any
formal training prior to the crash." The author argues that
formal, adequate commercial driver training is recommended by
the DMV Commercial Driver Handbook, but is not required. The
author notes that a wide variety of training options are
available, but the cost and quality varies widely. For example,
the author points to the Advanced Career Institute in Fresno
that offers a 5-month program for $7,000. The author also
points to "diploma mills" that offer inexpensive DVD and
internet based training for the sole purpose of passing the DMV
commercial driver's license examination.
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BPPE exemption. On January 1, 2010, AB 48 (Portantino), Chapter
310, Statutes of 2009, established the BPPE to provide oversight
of private postsecondary educational institutions in order to
prevent harm to students and the deception of the public that
result from fraudulent or substandard educational programs and
degrees. Under the law, several types of institutions are
exempt from regulation, including non-degree granting
institutions that do not receive public funding and charge less
than $2500 per educational program. The exemption was designed
to allow "low-cost and low-risk" institutions to operate without
regulation. However, according to the author, there has been a
proliferation of commercial driver's license "diploma mills"
that fail to ensure students are properly trained and place the
public at risk. This bill will prohibit a commercial driver's
license training institution from claiming an exemption from the
BPPE.
Oversight provided by the BPPE. The BPPE enforces minimum
standards and disclosure requirements for institutions,
specifically BPPE:
1)Licenses approximately 1,200 non-exempt private postsecondary
educational institutions, serving over 300,000 students,
operating in California. The Licensing process is designed to
ensure that institutions meet minimum operating standards.
Accredited institutions are provided approval by means of
their accreditation (meaning BPPE does not review these
institutions at the point of licensure).
2)Conducts announced and unannounced compliance inspections of
licensed/approved institutions. Inspections are designed to
ensure institutions are in compliance with minimum operating
requirements. If a compliance inspection uncovers a minor
violation, the institution is provided a notice and the
opportunity to correct. If a compliance inspection uncovers a
material (major) violation, the compliance inspector makes a
referral for an investigation of the violation.
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3)Investigates complaints received by the general public and
internal investigative referrals. Most investigations are
handled internally by BPPE staff; however, BPPE does have
authority (and has utilized) the DCA Division of
Investigations for complaints that require undercover
investigations and/or the presence of a sworn peace officer.
4)Disciplines institutions that have been found in violation of
law through citations (handled by BPPE staff) and formal
actions (BPPE is represented by the Office of the Attorney
General).
5)Administers the Student Tuition Recovery Fund (STRF) to
provide refund to students affected by the closure of an
institution.
6)Collects data through Annual Reports provided by
licensed/approved institutions.
How will BPPE work with DMV under this bill? Currently BPPE is
provided authority to rely on another appropriate state agency
for review of program quality. Committee staff understands that
the author intends for DMV to be responsible for educational
program review and certification, and for BPPE to be responsible
for enforcing consumer protections.
Challenges facing the BPPE. In March 2014, the California State
Auditor released an audit report reviewing the effectiveness and
efficiency of BPPE operations. The report found that BPPE had
consistently failed to meet responsibilities to protect the
public's interest. Specifically, the report noted that BPPE
failed to conduct compliance inspections, failed to identify and
sanction unlicensed institutions, failed to appropriately
respond to complaints against institutions, and failed to ensure
students were provided with accurate disclosures prior to
enrollment. Pursuant to AB 48, the law authorizing the BPPE was
scheduled to sunset on January 1, 2015. In 2014, during the
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Legislative "sunset review" process, BPPE indicated it had
sought and obtained additional staff to assist in operations and
was working to reduce backlogs and improve oversight activities.
SB 1247 (Lieu, Chapter 840) reauthorized the BPPE until January
1, 2017, a shorter timeframe than generally provided in order to
allow the Legislature to review BPPE progress during the 2015-16
Legislative Session.
Prohibiting commercial driver's training schools from claiming
an exemption from BPPE will only result in improved quality and
consumer protection if the BPPE provides adequate oversight and
review of the institutions. As previously outlined, the BPPE has
struggled to perform oversight functions. Should this bill
become law, the author and committee may wish to continue to
monitor BPPE performance to ensure the goals of this legislation
are accomplished.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Highway Patrolmen
California Trucking Association
City of Capitola
City of San Jose
City of Scotts Valley
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City of Watsonville
Commercial Vehicle Training Association
Consumer Attorneys of California
County of Santa Clara, District Attorney
County of Santa Cruz, Board of Supervisors
Metropolitan Transportation Commission
Peace Officers Research Association of California
Public Advocates
Santa Cruz County Regional Transportation Commission
Truck Safety Coalition
Young Invincibles
University of San Diego (USD), Center for Public Interest Law
USD, Children's Advocacy Institute
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USD, Veterans Legal Clinic
Opposition
None on File
Analysis Prepared by:Laura Metune / HIGHER ED. / (916)
319-3960