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









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