BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2499
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2499 (Portantino) - As Amended:  March 25, 2010 

          Policy Committee:                               
          TransportationVote:12-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill brings home-study traffic violator schools under the  
          purview of the Department of Motor Vehicles (DMV), and makes  
          numerous other changes related to traffic violator schools  
          (TVSs).

           FISCAL EFFECT
           
          1)Moderate one-time costs, probably in the range of $200,000,  
            for DMV to develop new rules, regulations, and licensing  
            requirements for the each segment of the TVS industry (motor  
            vehicle account).

          2)Unknown ongoing costs to DMV, ranging from the low hundreds of  
            thousands to several million dollars annually (motor vehicle  
            account), depending on how the bill is implemented, for  
            example, how the monitoring of TVS programs is divided between  
            DMV and court assistance programs. In all cases, the costs are  
            fully covered by revenue generated by either regulatory fees  
            imposed by the department on TVS's or by penalties assessed by  
            courts on traffic violators.  

           COMMENTS
           
            Key provisions of the bill:  

          1)Provide that completion of a TVS program shall result in a  
            designation of the driver's conviction as confidential, rather  
            than having the complaint dismissed. In such a circumstance,  
            no point count is to be assessed against the driver's record.   









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          2)Remove the confidentiality of the conviction if the convicted  
            person holds a commercial driver's license, the violation  
            occurred in a commercial vehicle, or the violation results in  
            more than one point against the driver's record. 

          3)Prohibit a court from ordering or permitting a person who  
            holds a class A, class B, or commercial class C driver's  
            license to complete a licensed TVS course in lieu of  
            adjudicating any traffic offense.  

          4)Require DMV to establish standards for each TVS instructional  
            modality.  

          5)Increase to $15,000 the amount of the bond that each TVS is  
            required to file with DMV.  

          6)Require a TVS lesson plan to include a post-lesson knowledge  
            test and requires the lesson plan for each instructional  
            modality to obtain approval by DMV.  

          7)Establish various licensing and related requirements for TVS's  


          8)Repeal requirements for DMV to publish a referral list of all  
            the approved locations of TVS classes and instead requires DMV  
            to provide a list of licensed TVSs on its Internet website.  
            For each licensed school, the list is required to indicate the  
            modalities of instruction offered and specify the cities where  
            classroom instruction is offered.  The sequential listing of  
            licensed schools would be randomized daily.  

          9)Require DMV to develop a web-based database accessible by the  
            courts and TVSs to allow oversight of TVS student enrollments  
            and course completions.  

          10)Require (or in some cases permit) courts and DMV to charge  
            various fees to TVS operators and traffic violators to defray  
            the costs of the program.

          11) Repeal provisions of existing law governing the monitoring  
            of TVSs by court assistance programs (CAPs), but allows courts  
            to charge traffic violators a fee to defray the costs incurred  
            by a CAP for monitoring and traffic administration services  
            provided to the courts.








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          12)Allow courts to enter into contracts with public or private  
            nonprofit agencies to provide services to the court, provided  
            those services do not duplicate those conducted by DMV.  

           COMMENTS  

           1)Background . Under existing law, motorists cited for certain  
            traffic violations may, at the option of the court, be ordered  
            to attend TVS as part of their sentence or be offered to have  
            the charges dismissed in consideration for attending TVS.   
            There are reportedly 400 licensed TVSs and unlicensed 200 home  
            study schools currently operating in the state.  It is  
            estimated that about one million persons, or one fourth of all  
            minor traffic offenders, take a TVS class annually. The TVS  
            option assists the operation of the courts by significantly  
            reducing the volume of potential court cases.  

            DMV licenses all classroom TVSs, plus their owner-operators,  
            and instructors.  In addition, DMV establishes course  
            curricula, provides completion certificates, conducts  
            monitoring activities, and performs other related  
            responsibilities. 

            Home study courses are approved by individual courts on a  
            court-by-court basis.  Consequently, for these courses, there  
            are no consistent standards for curriculum content, duration  
            of course, or verification of the identity of the student.  

           2)Purpose  . This bill is an attempt to apply consistent and  
            uniform standards to all segments of the TVS industry, and  
            restrict circumstances under which traffic offenders may  
            attend traffic school in lieu of adjudication. The bill  
            implements most of the recommendations made by DMV in response  
            to a mandate that it recommend a comprehensive plan for  
            licensing all TVS instructional programs.  

           1)Legislative history  . This bill is the latest in a long series  
            of attempts to bring all segments of the TVS industry under  
            the direction of DMV.  The issue of providing a uniform set of  
            standards for traffic school operations has pitted the  
            classroom segment of the industry against the home study  
            segment of the industry, with previous bills often providing  
            advantages to one segment or the other.









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            In 2007, AB 758 (Plescia and Portantino) Chapter 396, Statutes  
            of 2007, originally required DMV to license home study TVSs,  
            but when consensus could not be achieved on a means of  
            accomplishing that goal, the bill was amended to require DMV  
            to recommend to the Legislature a comprehensive plan for  
            licensing all TVS instructional programs.  This bill  
            implements most of the DMV recommendations made in response to  
            AB 758.
           
          2)Opposition.  While receiving support from the courts and home  
            study segment of the industry, this bill is opposed by the  
            classroom segment of the TVS industry. The opponents claim  
            that DMV does not have the capacity to take on the additional  
            regulatory responsibilities. They also object to the provision  
            deleting the current-law requirement that DMV provide  
            hard-copies of lists of TVS and instead allow the department  
            to include the list on their website.

           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081