BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1024


                                                                      Page  1





          ASSEMBLY THIRD READING


          AB  
          1024 (Beth Gaines)


          As Amended  April 14, 2015


          Majority vote


           -------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                  |
          |----------------+------+---------------------+----------------------|
          |Transportation  |14-1  |Frazier, Achadjian,  |Gomez                 |
          |                |      |Baker, Bloom,        |                      |
          |                |      |Campos, Chu, Daly,   |                      |
          |                |      |Dodd, Eduardo        |                      |
          |                |      |Garcia, Kim, Linder, |                      |
          |                |      |Medina, Melendez,    |                      |
          |                |      |O'Donnell            |                      |
          |                |      |                     |                      |
          |----------------+------+---------------------+----------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,      |                      |
          |                |      |Bloom, Bonta,        |                      |
          |                |      |Calderon, Chang,     |                      |
          |                |      |Daly, Eggman,        |                      |
          |                |      |Gallagher, Eduardo   |                      |
          |                |      |Garcia, Holden,      |                      |
          |                |      |Jones, Quirk,        |                      |
          |                |      |Rendon, Wagner,      |                      |
          |                |      |Weber, Wood          |                      |
          |                |      |                     |                      |
          |                |      |                     |                      |
           -------------------------------------------------------------------- 










                                                                      AB 1024


                                                                      Page  2





          SUMMARY:  Establishes alternative licensing requirements for  
          operators of Internet-based driver education schools, as  
          specified.  Specifies that these requirements are to commence for  
          new operators on or after July 1, 2016.    


          EXISTING LAW: 


          1)Requires Department of Motor Vehicles (DMV) to establish  
            occupational licensing requirements for driving school  
            operators. 


          2)Requires driver school operators to meet a number of  
            requirements including, passing a DMV-administered examination,  
            be age 21 or older, and serve as a behind the wheel driving  
            instructor for a minimum of 2,000 hours.   


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, "Minor absorbable costs to the DMV."


          COMMENTS:  Currently a minor between 15 and a half years old and  
          18 years old interested in obtaining a driver's license under  
          DMV's graduated driver's license program (GDL) must first complete  
          both a driver's education course and a six-hour behind-the-wheel  
          driver's training course.  The driver's education course includes  
          information on a variety of topics including the basic  
          fundamentals of being a safe and responsible driver, a review of  
          pertinent driving laws, and GDL program restrictions.   
          Additionally, behind-the-wheel driver's training allows the minor  
          to practice basic driving skills under the supervision of an  
          instructor.  Once a minor has successfully completed both their  
          driver's education course and driver's training course, the next  
          step is to take DMV's written test to obtain a learner's permit.  










                                                                      AB 1024


                                                                      Page  3





          DMV licenses and approves all owners, operators, and instructors  
          of driver's education and driver's training courses.  DMV also  
          establishes course curricula, conducts monitoring activities, and  
          performs other regulatory functions.  Driver's education operators  
          and instructors are also subject to separate licensing  
          requirements due to their differing responsibilities - instructors  
          provide coursework instruction and engage with students, whereas  
          operators carry out administrative functions, oversee instructors,  
          and, at times, provide instruction.  Students are also provided a  
          wide range of driver's education and training courses including  
          classroom only driver's education, combined classroom driver's  
          education and behind-the-wheel training, home study driver's  
          education, Internet-based driver's education, and separate  
          driver's training instruction.       


          The author introduced this bill on behalf of the sponsor to  
          eliminate what she believes is an unnecessary requirement for  
          Internet-based driver's education operators.  Presently a driver's  
          education operator must meet a number of requirements in order to  
          obtain a DMV-issued occupational license including serving as a  
          driving instructor for a minimum of 2,000 hours.  While these  
          requirements ensured an operator was adequately trained to manage  
          both driver's education and training courses 20 years ago, the use  
          of Internet-based companies solely providing driver's education  
          courses has steadily increased.  These online courses typically  
          provide only driver's education coursework and then, upon  
          successful completion, refer the student to local driver's  
          training courses.  An available instructor or operator is required  
          to be available via online chat or through a customer service line  
          to answer any questions a student may pose.  Thus, an operator  
          rarely, if at all, engages in person with a student.  These  
          particular set of operator requirements originally tailored for  
          the classroom-based driver's education and training model has left  
          many Internet-based driver's education companies struggling to  
          hire or replace operators within a reasonable period, in turn,  
          jeopardizing the company's ability to conduct business. 










                                                                      AB 1024


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          This bill provides an alternative set of licensing requirements  
          for new operators who only administer Internet-based driver's  
          education.  Notably, this bill replaces the 2,000-hour  
          behind-the-wheel instructor requirement with an eight-hour  
          mandatory driver's education program that must be successfully  
          completed.  The author notes that this bill will "remove the  
          unnecessary 2,000-hour requirement of behind-the-wheel training  
          from operators of Internet-based driver's education companies who  
          don't provide behind-the-wheel training in the course of their  
          business." 




          Analysis Prepared by:                                               
          Manny Leon / TRANS. / (916) 319-2093  FN: 0000301