BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1024           Hearing Date:    6/16/2015
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          |Author:   |Beth Gaines                                           |
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          |Version:  |4/14/2015                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Erin Riches                                           |
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          SUBJECT:  Driving schools


            DIGEST:  This bill reduces the education requirement for driving  
          school operators.

          ANALYSIS:
          
          New Drivers Under 18 Years of Age

          Existing law establishes a provisional driver's license program  
          for individuals between 16 and 18 years of age.  Under this  
          program, an individual who is 15 years and six months or older  
          and has completed DMV-approved driver education and training  
          classes (25 hours of instruction through a classroom, home  
          study, or Internet course), may apply to the Department of Motor  
          Vehicles (DMV) for a learner's permit.  Once the individual has  
          held the permit for at least six months, and has completed at  
          least six hours of behind-the-wheel training and 50 hours of  
          supervised driving practice, among other requirements, he or she  
          may apply for a provisional driver's license.  This license  
          carries certain restrictions, such as limits on nighttime  
          driving; once the individual turns 18, he or she can apply for a  
          regular driver's license.  

          Driving School Owners

          Existing law requires a driving school owner to be licensed by  
          DMV.  The owner must meet the following requirements within one  
          year of applying for a license:







          AB 1024 (Beth Gaines)                             Page 2 of ?
          
          

          1)Maintain an established place of business open to the public;

          2)Have the proper equipment necessary to give instruction in the  
            operation of the class of vehicles for which the course is  
            designed;

          3)File with DMV a $10,000 bond and meet related requirements;  
            and
          4)Meet the requirements for a driving school operator, or  
            designate an operator to meet these requirements if the owner  
            is not the operator.

          Driving School Operator

          Existing law requires a driving school operator to be licensed  
          by DMV.  The operator must meet the following requirements  
          within one year of applying for a license:

          1)Within three attempts, pass a written examination on traffic  
            laws, safe driving practices, operation of motor vehicles,  
            teaching methods and techniques, driving school statutes and  
            regulations, and office procedures and recordkeeping.

          2)Pay to DMV a $100 fee to cover the written exam(s).

          3)Be 21 years or older.

          4)Have worked for an established, licensed California driving  
            school as a driving instructor for at least 2,000 hours of  
            behind-the-wheel teaching and have successfully completed a  
            course in the teaching of driver education.

          Driving School Instructor

          Existing law requires a driving school instructor to be licensed  
          by DMV.  The instructor must meet the following requirements  
          within one year of applying for a license: 

          1)Have a high school education or equivalent;

          2)Have successfully completed a course in the teaching of driver  
            education and driver training, including at least 40 hours of  
            classroom instruction and at least 20 hours of  
            behind-the-wheel instruction;








          AB 1024 (Beth Gaines)                             Page 3 of ?
          
          

          3)Within three attempts, pass a written examination required by  
            DMV on traffic laws, safe driving practices, operation of  
            motor vehicles, and teaching methods and techniques;

          4)Be physically able to safely operate a motor vehicle and to  
            train others to operate a motor vehicle;

          5)Hold a valid California driver's license in a class  
            appropriate to the type of vehicle for which instruction will  
            be given;

          6)Not be identified by DMV as a negligent operator;

          7)Have a clean driving record; and

          8)Be 21 years or older.

          If an applicant is disabled, DMV may issue a driving school  
          instructor's license restricted to classroom driver education  
          instruction only.

          This bill requires, beginning July 1, 2016, an individual who is  
          applying for a first license to operate an Internet-based  
          driving school that does not offer behind-the-wheel training to  
          meet the following requirements:

          1)Within three attempts, pass a written examination on traffic  
            laws, safe driving practices, operation of motor vehicles,  
            teaching methods and techniques, driving school statutes and  
            regulations, and office procedures and recordkeeping.

          2) Pay to DMV a fee for each examination taken, not to exceed  
            the reasonable cost of administering the examination.

          3)Be 21 years or older.

          4)Have successfully completed an educational program of at least  
            eight hours.  This program shall include, but not be limited  
            to, driving school operator responsibilities and current  
            vehicle laws and regulations.  This instruction may be  
            provided by generally accredited educational institutions,  
            private vocational schools, and education programs and  
            seminars offered by professional societies, organizations,  
            trade associations, and other educational and technical  








          AB 1024 (Beth Gaines)                             Page 4 of ?
          
          
            programs acceptable to DMV.

          COMMENTS:

          1)Purpose.  The author states that an operator of a driving  
            school that provides only driver's education, in an online or  
            home-based study program, is required to complete the same  
            2,000-hour instruction requirement as an operator of a driving  
            school that also provides behind-the-wheel training.  The  
            author states that requiring 2,000 hours of behind-the-wheel  
            instruction is an unnecessary regulatory burden on  
            Internet-based companies that are not providing driver's  
            training instruction.

          2)The changing world of driving school.  In the past, teenagers  
            could take driver's education and driver's training classes as  
            part of their high school curriculum.  However, with budget  
            cuts this instruction faded away, and driving schools  
            materialized to fill the void.  When the Legislature and DMV  
            first began regulating driving schools, a student typically  
            went to a "brick-and-mortar" driving school for both driver's  
            education and driver's training.  Now, however, there are many  
            Internet driving schools offering driver's education.  

          3)Operator requirements.  Although a driving school instructor  
            must complete 60 hours of coursework (40 hours in the  
            classroom and 20 hours behind the wheel), a driving school  
            operator must complete 2,000 hours of behind-the-wheel  
            instruction.  The operator oversees the business operations  
            and instructors and is also expected to be familiar with all  
            of the laws relating to the subject matter being taught,  
            answer any consumer questions or customer complaints, and  
            ensure that the school is being operated in accordance with  
            all laws.  The Legislature increased the requirement from  
            1,000 hours to 2,000 hours a number of years ago (SB 1112,  
            Knight, Chapter 243, Statutes of 2000) in order to help ensure  
            that an operator had at least two years of experience.  

            Traditionally, operators were often teachers who "promoted up"  
            to operator, or left to start their own school.  In such  
            cases, the significant behind-the-wheel requirement was not a  
            barrier because anyone who had taught for a year had already  
            met it.  Now, however, there are many Internet driving schools  
            which offer only driver's education.  The sponsor of this  
            bill, the Distance Learning Company, states that "there is no  








          AB 1024 (Beth Gaines)                             Page 5 of ?
          
          
            logic to requiring a full year of behind-the-wheel teaching  
            for an operator of an entirely online program" and that it is  
            time to modernize the operator licensing requirements.

          4)Should an instructor have more training than an operator?   
            Under this bill, an instructor would still be required to  
            complete 60 hours of instruction, including 20 hours of  
            behind-the-wheel instruction, but an operator would only have  
            to complete eight hours, which could be entirely online.  The  
            author will accept amendments to increase the eight-hour  
            requirement to 60 hours (including 20 hours of  
            behind-the-wheel instruction), to align with the instructor  
            requirement.  

          5)Unfair advantage to online schools?  By exempting online  
            schools from the 2,000-hour requirement, this bill effectively  
            gives online driving schools a significant competitive  
            advantage over brick-and-mortar schools that offer both  
            driver's education and driver's training.  It is unclear how  
            many brick-and-mortar schools offer driver's education only as  
            compared to schools that offer both driver's education and  
            training.  The author will accept amendments to revise the  
            2,000-hour requirement for operators of all driving schools  
            that offer only driver's education, not just Internet schools.

          6)Opposition arguments.  Writing in opposition to this bill, the  
            Driving School Association of California states that the  
            2,000-hour requirement ensures that driving school operators  
            are "experienced individuals who have a complete working  
            knowledge of the complex fields of driver education and driver  
            safety as well as a thorough understanding of the underlying  
            laws, codes, and Department of Motor Vehicle regulations  
            required to operate a driving school."  The association argues  
            that the operator is the sole conduit between the school and  
            DMV and is responsible for ensuring that the education program  
            delivered to the public meets DMV standards.  The driving  
            school operator also hires and trains instructors.  The  
            association states that this bill would damage the quality and  
            credibility of the driving school industry and of driver  
            education for novice drivers.  

          Assembly Votes:

            Floor:    79-0
            Appr:     17-0








          AB 1024 (Beth Gaines)                             Page 6 of ?
          
          
            Trans:    14-1
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 10, 2015.)
          
            SUPPORT:  

          Distance Learning Company (sponsor)

          OPPOSITION:

          A1 Driving School of California
          A1 Traffic School
          Bay Area Driving School
          Dollar Driving School, Inc.
          Drive Star Driving School
          Driving School Association of California
          Santa Fe Driving and Traffic School
          West Point Driving School
          Driver's Ed.com

          
          

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