DEPARTMENT OF LICENSING

[Filed November 28, 2018, 7:50 a.m.]

Preproposal statement of inquiry was filed as WSR 17-21-108.

Title of Rule and Other Identifying Information: WAC 308-108-150, driver training schools, curriculum schedule.

Hearing Location(s): On January 9, 2019, at 2:00 p.m., at the Tumwater Timberland Library, 7023 New Market Street S.W., Tumwater, WA 98501. Hearing to be held in the public meeting room.

Date of Intended Adoption: January 10, 2019.

Submit Written Comments to: Driver Training School Program, P.O. Box 9027, Olympia, WA 98507, email TSE@dol.wa.gov, fax 360-570-4976, by January 8, 2019.

Assistance for Persons with Disabilities: Contact Driver Training School Program, phone 360-664-6692, fax 360-570-4976, TTY 711, email TSE@dol.wa.gov, by January 8, 2019.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Existing language regarding instruction schedule is ambiguous. Amending rules to provide consistency in application of rule.

Reasons Supporting Proposal: Improve compliance and understanding of requirements for our applicants and licensees.

Statutory Authority for Adoption: Chapter 46.82 RCW.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Department of licensing, governmental.

Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Loni Miller, 405 Black Lake Boulevard South, Olympia, WA 98502, 360-664-6692.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. The department is exempt under RCW 34.05.328 and this rule making does not qualify as a significant legislative rule or other rule requiring a cost-benefit analysis.

The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated.

Small Business Economic Impact Statement

SECTON [SECTION] Describe the proposed rule, including: A brief history of the issue; an explanation of why the proposed rule is needed; and a brief description of the probable compliance requirements and the kinds of professional services that a small business is likely to need in order to comply with the proposed rule.

The existing language regarding curriculum schedule is more about the course schedule and structure. The language in rule is ambiguous. Amending the rule will provide consistency in application of the rule.

The rule change will decrease the regulation around a course schedule and structure. These changes will not require additional services for the small business but allow for the business owner more flexibility in the way they offer a course.

SECTION 2: Identify which businesses are required to comply with the proposed rule using the North American Industry Classification System (NAICS) codes and what the minor cost thresholds are.

NAICS Code (4, 5 or 6 digit)	NAICS Business Description	# of Businesses in WA	Minor Cost Threshold = 1% of Average Annual Payroll	Minor Cost Threshold = .3% of Average Annual Receipts
611692	Driver Training Schools	458		$269 per business per year*

*NOTES: As of July 1, 2018, there were four hundred fifty-eight driver training schools and branches in Washington (from department of licensing Stats-At-A-Glance fiscal year brochure).

Annual gross income from department of revenue (DOR) (http://apps.dor.wa.gov/ResearchStats/Content/GrossBusinessIncome/Report.aspx) average for 2015-2017 is $41,079,332. Minimum cost threshold (.3% of annual receipts) is $123,238, or $269 per business per year. (RCW 19.85.020(2).)

SECTION 3: Analyze the probable cost of compliance. Identify the probable costs to comply with the proposed rule, including: Cost of equipment, supplies, labor, professional services and increased administrative costs; and whether compliance with the proposed rule will cause businesses to lose sales or revenue.

The agency reached out to the Professional Driving School Association and also met with the board members of the association on November 5, 2018. The association conducted a survey to determine impacts to the industry. Initially, the survey revealed a financial impact if the language around "video only make-up lessons" remained in the proposed rule change. After considering the impact, the agency has elected to remove "video only make-up lessons" from the proposed rule change. As a result of this change, it was agreed with the stakeholders that there would be no increased cost of equipment, supplies, labor, professional services or increased administrative costs.

SECTION 4: Analyze whether the proposed rule may impose more than minor costs on businesses in the industry.

The analysis determined no costs associated with the proposed rule change.

SECTION 5: Determine whether the proposed rule may have a disproportionate impact on small businesses as compared to the ten percent of businesses that are the largest businesses required to comply with the proposed rule.

There is no disproportionate impact to small or large businesses. The proposed rule accomplishes less regulation around course structure.

SECTION 6: If the proposed rule has a disproportionate impact on small businesses, identify the steps taken to reduce the costs of the rule on small businesses. If the costs cannot be reduced provide a clear explanation of why.

No disproportionate impact to small businesses.

SECTION 7: Describe how small businesses were involved in the development of the proposed rule.

The small businesses were provided with the opportunity to express their concern regarding the proposed rule change via email. The agency completed three drafts of the rule change as a result of the small business feedback. The agency also held six Skype forums with the industry to provide another opportunity to discuss the changes. During the forums, the agency was able to discuss the proposed rule change and allow for questions and answers.

SECTION 8: Identify the estimated number of jobs that will be created or lost as the result of compliance with the proposed rule.

A copy of the detailed cost calculations may be obtained by contacting Driver Training School Program, P.O. Box 9027, Olympia, WA 98507, phone 360-664-6692, fax 360-570-4976, TTY 711, email TSE@dol.wa.gov.

AMENDATORY SECTION(Amending WSR 09-21-092, filed 10/20/09, effective 1/1/10)

WAC 308-108-150Curriculum ((schedule))requirements.

((A))Driver training schools((may offer classroom and behind the wheel instruction to students throughout the year. In order to be approved by the director, a curriculum schedule must satisfy or include the following requirements:

(1) Classroom and behind the wheel instruction that is complementary. This means that classroom instruction is integrated in a timely manner with behind the wheel instruction;

(2) Having students under age eighteen complete no more than two hours of classroom instruction during any single day, except for make-up classes which shall be no more than two additional hours of class not to exceed three total make-up classes during the traffic safety education course, and no more than one hour of behind the wheel instruction during any single day;

(3) For students under the age of eighteen to meet the traffic safety education requirement of RCW 46.20.100, instruction that:

(a) Includes not less than thirty hours of classroom instruction;

(b) Meets the behind the wheel instruction and observation requirements of WAC 308-108-160;

(c) Consists of at least one hour minimum and no more than two hours maximum of class session during a single day, except when adding a make-up class as provided in subsection (2) of this section, in which case classroom instruction must not exceed four hours in a single day;

(d) With the exception of make-up lessons, ensures that all students in a classroom session must be on the same lesson. Open enrollment or self-paced instruction is not permitted; and

))that provide education for persons under the age of eighteen must ensure their course:

(1) Includes a minimum of thirty hours of classroom instruction;

(2) Meets the behind the wheel instruction and observation requirements of WAC 308-108-160;

(3) Has a minimum of one hour and no more than two hours of classroom instruction and no more than one hour of behind the wheel instruction during a single day, except when adding a make-up class, in which case classroom instruction must not exceed four hours in a single day;

(4) Has a classroom portion that is at least fifty-percent instructor-led with verbal instruction consisting of:

(((i)))(a) In-person training;

(((ii)))(b) Teacher and student interaction; ((and

))(c) Questions and answers; and

(((4) Classroom and behind the wheel instruction in a course that is scheduled for not less than thirty days in which lessons must be in contiguous weeks;

(5) Students may not enroll in a traffic safety education course after the third class session of any given course;

(6) All make-up assignments and instruction must be equivalent to the instruction given during the missed sessions;

))(d) No more than six make-up hours of alternative classroom instruction, delivering the same information that was missed.

(5) Has all students in a classroom session on the same lesson, with the exception of make-up lessons. Open enrollment or self-paced instruction is not permitted;

(6) Is not completed in fewer than thirty calendar days;

(7) Includes comprehensive final written and behind the wheel examinations;

(8) Has a flow chart that indicates how the classroom and behind the wheel instruction are completed throughout the course;

(9) Includes information on the state of Washington's intermediate license requirements, restrictions, violations, and sanctions for violation of these requirements;

(10) Includes the delivery of instructional material developed by the department and the federally designated organ procurement organization for Washington state relating to organ and tissue donation awareness education; and

(((8) Review and approval of the local school curriculum by the department as part of the initial application for a school license. To help ensure that minimum standards of instruction are met, the local school curriculum must include but is not limited to the following:

(a) Comprehensive elements of classroom and behind the wheel instruction as defined by the department;

(b) Comprehensive written and behind the wheel examinations, to include:

(i) Written examinations as submitted to and approved by the department; and

(ii) Behind the wheel examination criteria as approved by the department;

(d) Information on the state of Washington's intermediate license requirements, restrictions, violations, and sanctions for violation of these requirements; and

(e) A designated time for a parent, guardian, or employer night that is no less than one hour, which may be a part of the thirty hours required for student training, and must include:

))(11) Has a designated time for a parent, guardian, or employer night that is no less than one hour, which may fulfill one of the thirty hours required for student training, and must include:

(a) Instruction on the parent, guardian, or employer responsibilities and the importance of parent, guardian, or employer involvement with the teen driver;

(((ii)))(b) Information on intermediate license laws, restrictions, and sanctions;

(((iii)))(c) An introduction to the parent guide to teen driving; and

(((iv)))(d) A questions and answers period.