BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2659
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2659 (Blumenfield)
          As Amended  August 24, 2012
          Majority vote

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          |ASSEMBLY:  |     |(May 10, 2012)  |SENATE: |35-0 |(August 29,    |
          |           |     |                |        |     |2012)          |
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               (vote not relevant)

          Original Committee Reference:   INS.  

           SUMMARY  :  Allows licensed drivers of military commercial 
          vehicles to qualify for a California commercial driver's license 
          without undergoing a California driving skills test.  Authorizes 
          rental car companies to rent vehicles to licensed drivers upon 
          inspection of the driver's license signature or photograph.  

           The Senate amendments  delete all prior contents of the bill and 
          instead:

          1)Allow the Department of Motor Vehicles (DMV) to waive the 
            driving skills test otherwise required under federal law for a 
            commercial motor vehicle driver with military commercial motor 
            vehicle experience who is licensed with the United States 
            Armed Forces at the time of his or her application for a 
            commercial driver's license, and whose driving record in 
            combination with his or her driving experience meets, at a 
            minimum, the conditions required under federal law.  

          2)Authorize an alternative procedure for renting vehicles that 
            allow vehicle rental agencies to verify driver's license 
            information in a manner allowing electronic verification from 
            remote locations via information kiosks.  

          3)Clarify that car sharing companies as described are exempt 
            from the bill's provisions.  

           EXISTING LAW :

          1)Requires an applicant for a commercial driver's license (CDL) 
            to pass a written and driving test for the operation of a 
            commercial motor vehicle that complies with the minimum 
            federal standards established by the federal Commercial Motor 








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            Vehicle Safety Act of 1986.  

          2)Prohibits a person from renting a motor vehicle to another 
            unless the person to whom the vehicle is rented is a validly 
            licensed driver, as specified, and the person renting to that 
            driver has inspected the person's driver's license and 
            compared the signature on the license with the signature of 
            the driver written in his or her presence.  

           AS PASSED BY THE ASSEMBLY , this bill dealt with unemployment 
          insurance benefits.  

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs. 
           

           COMMENTS  :  Existing law requires a person to have a valid CDL of 
          the appropriate class in order to operate a commercial vehicle 
          in the state.  DMV issues a CDL to an applicant only after he or 
          she passes written and driving skills tests and meets other 
          requirements depending on the particular type of vehicle the 
          applicant seeks to operate.  

          Federal regulations outline specific skills and knowledge a 
          person must demonstrate before he or she is eligible for a CDL.  
          The Federal Motor Carrier Safety Administration, the federal 
          agency responsible for commercial vehicle oversight, recently 
          amended its regulations to allow states to waive this skills 
          test for an applicant possessing a military commercial vehicle 
          license and who certifies that within the two-year period 
          immediately prior to applying, he or she has not had:  a license 
          suspended or revoked; a conviction for major offenses (e.g., 
          driving under the influence (DUI) or leaving the scene of an 
          accident); more than one conviction for serious traffic 
          violations (e.g., excessive speeding or reckless driving); or, 
          any conviction arising in connection with a traffic accident, 
          nor any record of an accident in which he or she was at fault.  
          Additionally the applicant must be, or have been within the 
          prior 90 days, regularly employed in a military position 
          requiring operation of a commercial vehicle for at least the 
          prior two years.  

          According to the author, recent veterans represent a 
          disproportionate number of the country's unemployed population.  
          Further, research suggests that many of these recent veterans 








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          were military transport operators, and therefore share skills 
          similar to commercial drivers.  At the same time, the author 
          contends, the transport industry reports a shortage of truck 
          drivers.  This bill attempts to address these two problems by 
          permitting DMV to adopt the federal waiver standards for the CDL 
          skills test.  According to the author, 15 other states have 
          adopted the federal standards, including New York, Florida, 
          Missouri, Pennsylvania, and Virginia.  With a high veteran 
          unemployment rate and a labor shortage in the trucking industry, 
          the author believes this bill benefits the state by allowing 
          qualified veterans to obtain a commercial driver's license in a 
          timely and safe manner.  

          Currently, a vehicle rental agency must follow security 
          procedures that help ensure that the vehicle renter is a valid, 
          licensed driver.  Further, as an added check, the rental agency 
          is required to compare the person's driver's license signature 
          with that of the person renting the vehicle.  This bill would 
          revise the procedures for renting vehicles by allowing a rental 
          agency to approve a vehicle to be rented through verifying 
          driver information, either the driver's signature or license 
          photograph, electronically.  

          The Hertz Corporation (Hertz), writing in support of these 
          provisions, contends that current law requiring  a valid 
          identification card to be presented at the time of the 
          transaction and verified via visual comparison of signatures is 
          outdated and was implemented in 1994, before photographs became 
          standard on driver's licenses.  That law requires that the 
          rental agent be physically in the presence of the customer and 
          visually compare the signature on the license with that of the 
          signature on the contract.  Hertz further indicates that 
          "electronic innovations such as kiosks where rental car 
          transactions can occur while retaining protections in existing 
          law provide a face-to-face interaction between rental agent and 
          customer while not requiring the physical presence of a rental 
          agent.  These new kiosks will scan an ID, charge a credit card, 
          provide face-to-face assistance from a live operator, and are 
          equipped to check a driver's license.  In addition, we currently 
          request that a customer hold up the driver's license to the 
          camera to compare the photo with the customer."  

          According to the author, this bill addresses transactions that 
          are completed through a kiosk by allowing an inspection of a 
          driver's license through electronic means.  "This simple and 








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          unobtrusive amendment will keep California current with advances 
          in technology and will allow Hertz to bring the benefits of its 
          innovation to the people of California."  
          The current provisions of this bill were heard by the Assembly 
          Transportation Committee and the recent amendments incorporate 
          provisions of AB 2189 (Skinner) that were heard by the Assembly 
          Transportation Committee also.  

           
          Analysis Prepared by  :   Howard Posner and Ed Imai / TRANS. / 
          (916) 319-2093 


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