BILL ANALYSIS Ó
SB 344
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Date of Hearing: July 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 344
(Monning) - As Amended June 23, 2015
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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:
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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.
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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
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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
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