SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: Author: Version: Urgency: Consultant: SB 344 Monning 2/24/2015 No Erin Riches Hearing Date: 4/14/2015 Fiscal: Yes SUBJECT: Commercial driver’s license: education DIGEST: This bill requires an individual to successfully complete a course of instruction that is approved by the state Department of Motor Vehicles (DMV) in order to obtain a commercial driver’s license. ANALYSIS: Existing law: Prohibits an individual from operating a commercial motor vehicle unless he or she has in his or her immediate possession a valid commercial driver’s license of the appropriate class. Requires a commercial driver’s license for a variety of trucks weighing more than 26,000 lbs., passenger buses, and vehicles carrying hazardous materials. Requires an individual, in order to obtain a commercial driver’s license, to successfully complete both a written and driving test that comply with the minimum federal standards to operate a commercial motor vehicle. Authorizes DMV to waive the driving test for an individual with military commercial motor vehicle experience if the individual is currently licensed with the U.S. Armed Forces and his or her driving record and experience meet the minimum federal standards. Requires DMV to prescribe and conduct commercial written and driving tests, but authorizes DMV to enter into agreements with third-party testers to administer the driving test (the Employer Testing Program). Exempts members and reservists of the U.S. Armed Forces, National Guard, and U.S. Coast Guard from all commercial driver’s license requirements and sanctions. SB 344 (Monning) Page 2 of 5 Establishes the Bureau for Private Postsecondary Education (BPPE) within the Department of Consumer Affairs to protect students and provide regulatory oversight of private postsecondary (post-high school) educational and vocational institutions. Requires BPPE to review, investigate, and approve private postsecondary institutions, programs, and courses of instruction and authorizes BPPE to take formal action against institutions to ensure compliance. Exempts from BPPE regulation an institution that does not award degrees and that solely provides educational programs for total charges of less than $2,500, provided that no part of the charges is paid from state or federal student financial aid programs. This bill: Provides that in order to obtain a commercial driver’s license, an individual must successfully complete a course of instruction from a commercial motor vehicle driver training institution that has been certified by DMV, in addition to successfully completing a written and driving test. Prohibits DMV from certifying a commercial motor vehicle training institution until it has approved the institution’s training program. Requires DMV to update its standards as necessary to comply with guidance or requirements established by the Federal Motor Carrier Safety Administration (FMCSA). Exempts from the course requirement a commercial motor vehicle driver with military motor vehicle experience who is currently licensed with the U.S. Armed Forces, provided that his or her driving record and driving experience meet the minimum federal standards. Also exempts from the course requirement a commercial motor vehicle driver who presents a valid certificate of driving skill issued through the Employer Testing Program (ETP). Provides that an institution that is certified by DMV to offer a course of instruction to prepare students to obtain a commercial driver’s license may not claim an exemption from BPPE regulation. COMMENTS: 1. Purpose. The author states that 5,327 truck collisions, of which 235 involved fatalities, were reported to the California Highway Patrol in 2012. In July 2014, a truck with a double tractor-trailer loaded with 50,000 pounds of soil lost control on Highway 17 and crashed into 10 cars, injuring seven people and killing 25-year-old Daniel McGuire of Santa Cruz. The driver had little, if any, SB 344 (Monning) Page 3 of 5 formal training prior to the crash. The author states that by ensuring that commercial truck drivers receive an adequate standard of training, this bill can help reduce the risk of tragic and fatal truck accidents. 2. Ensuring legitimate training. Last year, the Legislature reauthorized the existence of BPPE (SB 1247, Lieu, Chapter 840, Statutes of 2014). The Senate Floor Analysis for SB 1247 notes that “As the number of students served by private postsecondary institutions has increased, so has the focus on fraudulent practices and low academic standards. There have been numerous high-profile federal investigations into the practices of for-profit institutions in recent years.” According to the author, truck driver training options can range from a $7,000, five-month, intensive training program to a $50 DVD. This bill aims to protect students from fraudulent truck driver training schools by removing the exemption from BPPE regulation for schools that charge less than $2,500 for a course of instruction and by requiring individuals to complete a course of instruction from a DMV-certified institution. 3. Employer Testing Program (ETP) exemption. This bill exempts from the course requirement an individual who presents a valid certificate of driving skill issued through ETP. ETP allows firms that employ commercial drivers to administer driving tests for their employees (but written tests must be taken through DMV). According to the California Trucking Association, 180 employers in the state currently participate in ETP. In order to participate, employers must apply to DMV, obtain DMV approval for examiners and training, and meet specified record retention requirements. In addition, DMV regularly inspects and audits ETP participants. The author states that because ETP is highly regulated by DMV, it is appropriate to exempt individuals who have passed an ETP test from the course requirement. 4. Expand the ETP exemption? The Commercial Vehicle Training Association (CVTA), while supportive of this bill, seeks amendments expanding the ETP exemption to include a certificate issued by any third-party testing facility. CVTA states that commercial driver’s license applicants in California face wait times of 30-45 days to take the test. As a result, despite a shortage of 35,000 drivers in the trucking industry, many students give up because they cannot afford to be unemployed while waiting to take the test. As noted above, DMV closely regulates ETP to ensure that firms participating in the program adhere to federal standards. While existing law authorizes DMV to include driving schools in a third-party testing agreement, DMV regulations limit the program to employers of drivers. This bill seeks to ensure that students receive training from legitimate institutions that are certified by DMV. SB 344 (Monning) Page 4 of 5 Amending this bill to expand the ETP exemption to non-regulated third-party testers would appear to be inconsistent with the intent of this bill. 5. Federal standards. Federal regulations require an individual to successfully pass written and driving tests that meet federal standards in order to obtain a commercial driver’s license, but do not require an individual to take a course of instruction. The federal Moving Ahead for Progress in the 21st Century Act (P.L. 112-141, commonly known as MAP-21), signed by President Obama in July 2012, directs FMCSA to establish new regulations for minimum training requirements for individuals applying for a commercial driver’s license. FMCSA has established a stakeholder committee, which began conducting public meetings in March 2015 to consider requirements such as length of classroom instruction and behind-the-wheel experience. FMCSA intends to publish proposed regulations late this year. This bill requires DMV to update its standards as necessary to comply with FMCSA guidance or requirements. 6. What about commercial drivers from other states? Federal law prohibits an individual from holding a license from more than one state. If an individual from another jurisdiction were to apply for a commercial driver’s license in California, he or she would have to surrender his or her current license and meet the requirements of this bill when applying for a California license. Alternatively, if an individual holds a license from another state, the license is recognized in California as long as it is valid. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, April 8, 2015.) SUPPORT: California Association of Highway Patrolmen California Trucking Association Capitola City Council City of San Jose Consumer Attorneys of California Peace Officers Research Association of California Santa Cruz County Board of Supervisors Santa Cruz County Regional Transportation Commission Scotts Valley City Council SB 344 (Monning) Page 5 of 5 OPPOSITION: None received. -- END –