BILL ANALYSIS Ó SB 344 Page 1 Date of Hearing: July 15, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair SB 344 (Monning) - As Amended June 23, 2015 ----------------------------------------------------------------- |Policy |Transportation |Vote:|16 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Higher Education | |11 - 1 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires an individual, in order to obtain a commercial driver's license (CDL), to complete a course of instruction approved by the DMV. Specifically, this bill: SB 344 Page 2 1)Requires, as of January 1, 2018, an individual seeking a CDL, in addition to existing requirements, to also successfully complete a course of instruction from either a commercial motor vehicle driver training institution or a program offered by an employer that has been certified by DMV. 2)Provides exemptions from the above training requirements for individuals who meet other specified training requirements. 3)Requires the institution or employer, in order to receive certification, to submit for DMV approval a course of instruction meeting the department's minimum standards. 4)Requires the DMV to update its standards, as necessary, to comply with requirements issued by the Federal Motor Carrier Safety Administration (FMCSA). 5)Prohibits, commencing January 1, 2018, an institution offering a course of instruction to prepare students to obtain a CDL from claiming an exemption from the licensure and oversight by the Bureau for Private Postsecondary Education (BPPE). FISCAL EFFECT: 1)To develop regulations establishing commercial driving school curricula and certification procedures, and to review and certify curriculum for the schools, the DMV would incur costs associated with this bill of approximately $2.2 million in 2017-18 and $280,000 ongoing (Motor Vehicle Account), but only to the extent federal regulations that would supersede SB 344 requirements are not adopted prior to the time required to implement this bill. SB 344 Page 3 2)BPPE estimates costs of approximately $922,000 and nine positions in 2017-18, $1.1 million and 12 positions 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) Assuming 180 schools would be subject to regulation, BPPE estimates licensing fee revenues of $840,000 in 2017-18, $1.8 million in 2018-19, and $1.9 million in 2019-20 and ongoing. Additional annual "institution fee" revenues would be proportional to BPPE costs for regulating these schools. (Private Postsecondary Education Administration Fund) COMMENTS: 1)Purpose. In July 2014, an accident on Highway 17 in Santa Cruz County involving a big-rig and up to 10 cars resulted in one fatality and several injuries. On the big-rig, operated by a driver who only had a CDL for three months, the brakes on two trailers failed, resulting in the driver losing control traveling northbound on Highway 17. The author suggests that if the driver had received adequate driver's training, he may have been better equipped to manage the brake failure and avoided the tragic accident. The author introduced SB 344 in response to this accident in order to establish a set of training standards a person must obtain prior to testing for a CDL. (Currently, a person interested in obtaining a CDL is required to take a written and driving skills test). In addition, according to the SB 344 Page 4 author, there has been a proliferation of commercial driver's license "diploma mills" that fail to ensure students are properly trained, and thus place the public at risk. The Private Postsecondary Education Act of 2009 exempts several types of institutions from state regulation under this Act, including non-degree granting institutions that do not receive public funding and charge less than $2,500 per educational program. The exemption was designed to allow "low-cost and low-risk" institutions to operate without regulation. Under this bill, any institution offering a CDL training program, regardless of program cost, would not be exempt from the Act. Currently, the BPPE is provided authority to rely on another appropriate state agency for review of program quality. The author intends for DMV to be responsible for educational program review and certification, and for BPPE to be responsible for enforcing consumer protections. 2)Federal Action. The Moving Ahead for Progress in the 21st Century Act (Map-21) requires the FMCSA to develop regulations on commercial motor vehicle safety and prescribe minimal safety standards for the commercial trucking industry. An advisory committee established by FMCSA is currently discussing and drafting recommendations on minimum training requirements for individuals applying for a commercial driver's license. It is anticipated that FMCSA will issue its final ruling sometime in late 2016 and provide commercial driving schools and states a period of time to reach compliance with the final rule. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081 SB 344 Page 5