SENATE RULES COMMITTEE
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THIRD READING
SB 344
Bill No: SB 344
Author: Monning (D)
Amended: 6/2/15
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 4/14/15
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire,
Mendoza, Roth, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/28/15
AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen
SUBJECT: Commercial driver’s license: education
SOURCE: Author
DIGEST: This bill requires an individual to successfully complete a course of instruction that meets minimum standards established by the Department of Motor
Vehicles (DMV) in order to obtain a commercial driver’s license.
ANALYSIS:
Existing law:
1) 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. A commercial driver’s license is required for a variety of trucks weighing more than 26,000 lbs., passenger buses, and vehicles carrying hazardous materials.
2) 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.

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3) 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.
4) 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).
5) 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.
6) 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.
7) 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:
1) Provides that in order to obtain a commercial driver’s license, an individual must successfully complete a course of instruction from either a commercial motor vehicle driver training institution or a program offered by an employer, and that has been certified by DMV, in addition to successfully completing a written and driving test.
2) Prohibits DMV from certifying a commercial motor vehicle training institution or employer-provided program until the institution or program has submitted to
DMV an approved course of instruction that meets the minimum standards set by DMV. Requires DMV to update its standards as necessary to comply with guidance or requirements established by the Federal Motor Carrier Safety
Administration (FMCSA).

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3) 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.
4) Also exempts from the course requirement a commercial motor vehicle driver who presents a valid certificate of driving skill issued through a DMV-approved employer testing program that offers a course of instruction that has been submitted to DMV and meets minimum DMV standards.
5) 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
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, 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.
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.
Employer testing program exemption.
This bill exempts from the course requirement an individual who presents a valid certificate of driving skill issued

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(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 amended this bill in the Appropriations Committee to additionally allow employers who are not in ETP to offer the required training, provided that they submit the course of instruction to DMV.
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 21 st 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 any FMCSA actions. This bill was amended in the Appropriations
Committee to delay implementation until January 1, 2018, in order to help ensure that DMV regulations address any new federal regulations.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Appropriations Committee:
1) DMV would incur one-time startup costs of approximately $1.8 million in
2017-18, and approximately $1.12 million annually ongoing (Motor Vehicle
Account), but only to the extent federal regulations are not adopted prior to that time that would supersede California requirements.
2) BPPE estimates costs of approximately $975,000 and 10 PY in 2016-17, $1.1 million and 12 PY in 2017-18, and $1.2 million and 12 PY in 2018-19 and ongoing to license and regulate an estimated 180 schools (150 main locations and 30 branch locations). BPPE costs are expected to be fully covered by initial and ongoing fees charged to training schools. (Private Postsecondary Education

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Administration Fund)
3) Using the assumption noted above that 180 schools would be subject to regulation, BPPE estimates licensing fee revenues of $2.1 million in 2016-17 and 2017-18, and $2.2 million in 2018-19 and ongoing. Additional annual
“institution fee” revenues would be proportional to BPPE costs for regulating these schools. (Private Postsecondary Education Administration Fund)
SUPPORT: (Verified 6/1/15)
California Association of Highway Patrolmen
California Trucking Association
City of Capitola
City of San Jose
City of Scotts Valley
City of Watsonville
Consumer Attorneys of California
Metropolitan Transportation Commission
Peace Officers Research Association of California
Public Advocates, Inc.
Santa Clara County District Attorney
Santa Cruz County Board of Supervisors
Santa Cruz County Regional Transportation Commission
Truck Safety Coalition
University of San Diego Center for Public Interest Law
University of San Diego Children’s Advocacy Institute
University of San Diego Veterans Legal Clinic
Young Invincibles
OPPOSITION: (Verified 5/27/15)
Transdev North America, Inc.
ARGUMENTS IN SUPPORT: The California Trucking Association states that its member companies are heavily invested in promoting safety throughout the state, which starts with training drivers on the best practices for roadway driving.
This bill will ensure that new commercial drivers have demonstrated proficiency in the knowledge and skills required to drive a commercial vehicle in California before being granted a commercial driver’s license.

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ARGUMENTS IN OPPOSITION: Transdev North America, Inc., writing in opposition to the prior version of this bill, stated that it “mandates overbroad and ineffective training requirements for city bus operators.” Transdev argued that this bill burdens job applicants, doesn’t address public safety, and privatizes a public safety function with no benefit.
Prepared by: Erin Riches / T. & H. / (916) 651-4121
6/2/15 19:42:05
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