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:










                                                                     SB 344


                                                                    Page  2





             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  








                                                                     SB 344


                                                                    Page  3





            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. 










                                                                     SB 344


                                                                    Page  4





          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.








                                                                     SB 344


                                                                    Page  5





             
           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  








                                                                     SB 344


                                                                    Page  6





          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








                                                                     SB 344


                                                                    Page  7







          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








                                                                     SB 344


                                                                    Page  8







          USD, Veterans Legal Clinic




          Opposition


          None on File







          Analysis Prepared by:Laura Metune / HIGHER ED. / (916)  
          319-3960