Bill Text: MI HB5845 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Vehicles: driver training; virtual instruction for driver training courses and exemption to driver training for homeschooled student; create. Amends secs. 3, 7, 9, 35, 37, 39, 41 & 45 of 2006 PA 384 (MCL 256.623 et seq.).

Spectrum: Slight Partisan Bill (Republican 9-5)

Status: (Introduced - Dead) 2020-12-01 - Referred To Second Reading [HB5845 Detail]

Download: Michigan-2019-HB5845-Introduced.html

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HOUSE BILL NO. 5845

June 11, 2020, Introduced by Reps. Cole, Sheppard, Kuppa, Rendon, Reilly, Cambensy, Shannon, LaFave, Bollin, Filler, Sneller, Clemente, Eisen and Bellino and referred to the Committee on Government Operations.

A bill to amend 2006 PA 384, entitled

"Driver education provider and instructor act,"

by amending sections 3, 7, 9, 35, 37, 39, 41, and 45 (MCL 256.623, 256.627, 256.629, 256.655, 256.657, 256.659, 256.661, and 256.665), section 35 as amended by 2012 PA 258, section 37 as amended by 2018 PA 277, and section 39 as amended by 2019 PA 34.

the people of the state of michigan enact:

Sec. 3. As used in this act:

(a) "Adult driver training" means instruction that is provided to a person an individual 18 years of age or older in the operation of a motor vehicle, other than a commercial motor vehicle as defined in section 7a of the Michigan vehicle code, 1949 PA 300, MCL 257.7a.

(b) "Behind-the-wheel instruction" means instruction in which a student is in control of a motor vehicle on a public street or highway in real and varied traffic situations and a driver education instructor is the only other occupant in the front passenger seating area with the student.

(c) "Classroom instruction" means that part of a driver education course that occurs in a classroom environment that enables a student to learn through varied instructional methods, under the direct guidance of a driver education instructor.

(d) "Conviction" means a conviction for a crime or attempted crime whether under a law of this state, a local ordinance substantially corresponding to a law of this state, or a law of another state substantially corresponding to a law of this state.

(e) "Coordinated segment 1 driver education course" means a segment 1 course provided by 2 or more certified driver education providers in the use of auxiliary aids and services as that term is defined in section 12103 of the Americans with disabilities act of 1990, 42 USCA 12102.USC 12103.

(f) "Curriculum" means a written plan that guides the instruction given in a driver education course and includes performance objectives, a content outline, detailed learning activities, and assessment tools.

(g) "Designated representative or coordinator" means the individual that a driver education provider employs, enlists, or appoints, or contracts with to supervise, manage, and administer the day-to-day responsibilities of the provider's driver education school operation. Often this individual is an owner, partner, officer, or director of the driver education provider.

(h) "Driver education course" means a program of study offered by a certified driver education provider, which that enables a student to acquire the basic knowledge, skill, and attitude necessary to operate a motor vehicle upon a highway transportation system.

(i) "Driver education course certificate of completion" means a written or electronic authorization issued by a certified driver education provider to a student who has successfully completed segment 1 or segment 2 of a driver education course offered by the provider.

(j) "Driver education instructor" or "instructor" means a person an individual who the secretary of state certifies has met the instructor qualifications of this act to instruct a student in a driver education course.

(k) "Driver education instructor certificate" means a written or electronic authorization issued by the secretary of state to indicate that a person an individual has met the instructor qualifications of this act to instruct a student in a driver education course.

Sec. 7. As used in this act:

(a) "Online course" or "online instruction" means that part of a driver education course provided electronically or online that enables a student to learn through varied instructional methods, under the direct guidance of a driver education instructor.

(b) (a) "Performance objective" means a certain level of knowledge and skill a student is expected to acquire to successfully complete a driver education course.

(c) (b) "Person" means an individual, partnership, corporation, association, limited liability company, educational institution, governmental agency or other legal or commercial entity, and their legal successors.

(d) (c) "Practicum" means classroom or online and behind-the-wheel instruction in a driver education course under the direction of an instructor employed, enlisted, or appointed by a college or university or by a person approved by the secretary of state and a cooperating instructor, providing practical application of theory and experience for a student in an approved driver education instructor preparation program. As used in this subdivision, "cooperating instructor" means a driver education instructor approved by the secretary of state to participate in a practicum course to mentor an uncertified driver education instructor in the practicum.

(e) (d) "Professional development requirements" means training prescribed by the secretary of state to update the instructional knowledge and skill of a driver education instructor.

(f) (e) "Revocation" means the termination of a driver education provider's certification or a driver education instructor's certification.

(g) (f) "Segment 1" means a teen driver education course that meets the requirements in section 37. of this act.

(h) (g) "Segment 2" means a teen driver education course that meets the requirements in section 39. of this act.

(i) (h) "Simulator device training" means that part of a driver education course where a driver education instructor uses interactive simulator units and programs to reproduce driving situations likely to occur in actual driving on a street and the student is required to evaluate risk, make decisions, and respond to the situations presented.

(j) (i) "Suspension" means the temporary withdrawal of a person's certification to engage or offer to engage in activities as a driver education provider or a driver education instructor during the period of suspension.

(k) (j) "Teen driver training" means driver training instruction provided through a segment 1 or segment 2 driver education course that allows a person an individual 17 years of age or less to apply for a level 1 or level 2 graduated driver license.

(l) (k) "Truck driver training" means instruction that is provided to operate a commercial motor vehicle as that term is defined in section 7a of the Michigan vehicle code, 1949 PA 300, MCL 257.7a.

Sec. 9. (1) A person may apply to the secretary of state for a driver education provider certificate in 1 or more of the following classifications:

(a) Adult driver training.

(b) Teen driver training.

(c) Truck driver training.

(2) The secretary of state shall not grant an original driver education provider certificate under this act until an investigation is made of the applicant's qualification.

(3) Except as provided in this act, an applicant must do or submit evidence that he or she has done or will do, as applicable, all of the following to be eligible to receive a driver education provider certificate:

(a) Submit a properly completed application signed by the applicant.

(b) Maintain an established office location.

(c) Maintain Except for providers that only offer online instruction, maintain classroom facilities in a public or commercial setting.

(d) Maintain the surety bond required under this section.

(e) Require each of their designated representatives or coordinators to complete a criminal history check as described in section 29.

(f) Provide the name and address of each designated representative or coordinator of the applicant, if applicable.

(g) Provide the name, address, date of birth, and social security number of each owner or partner and, if a corporation, of each of the principal officers.

(h) Provide a statement of the previous history, record, and associations of the applicant and of each owner, partner, officer, director, and designated representative or coordinator. The statement shall must be sufficient to establish to the satisfaction of the secretary of state the business reputation and character of the applicant.

(i) Provide a statement indicating whether the applicant or its designated representative or coordinator has ever applied for a driver education provider certificate in this state or any other state, and the result of that application.

(j) Provide a statement indicating whether the applicant or its designated representative or coordinator has ever been denied a driver education provider certificate or has ever been the holder of a certificate that was suspended or revoked.

(k) If the applicant is a corporation or partnership, provide a statement indicating whether a partner, employee, officer, director, or its designated representative or coordinator has ever been denied a driver education provider certificate or has ever been the holder of a certificate that was suspended or revoked.

(l) Certify that the applicant or another person named on the application is not acting as the alter ego of any other person or persons in seeking the certificate. For the purpose of this subdivision, "alter ego" means a person who acts for and on behalf of, or in the place of, another person for purposes of obtaining a driver education provider certificate.

(m) Affirm that the established office location meets all applicable zoning and municipal requirements.

(n) Obtain Except for providers that only offer online instruction, obtain written or electronic verification from the state fire marshal or his or her representative that the proposed classroom facilities have been inspected and approved by the state fire marshal or his or her representative according to state and local building code and public occupancy requirements.

(o) Obtain written or electronic verification from an insurer that the applicant maintains or will maintain bodily injury and property damage liability insurance on each motor vehicle used in a driver education course.

(p) Except as otherwise provided in this subdivision, submit a nonrefundable application processing fee with each application for a separate established place of business where records will be maintained as follows:

(i) $225.00 for a driver education provider who that offers adult or teen driver training.

(ii) $360.00 for a driver education provider who that offers truck driver training.

(iii) A fee is not required for an additional location that is used for the sole purpose of conducting classroom or online instruction and at which records are not maintained, enrollments are not made, and staff is not ordinarily assigned, except for the purpose of conducting classroom or online instruction.

(q) Provide a statement indicating whether the applicant will use a multiple vehicle driving facility in a driver education course. If a facility will be used, both of the following apply:

(i) The statement shall must include a detailed description of the facility as determined necessary by the secretary of state and its address.

(ii) A multiple vehicle driving facility review and approval fee of $125.00 shall must accompany the applicant's application for a driver education provider certificate.

(r) Provide other information and documents as prescribed by the secretary of state necessary to determine whether the applicant meets the requirements of this act.

(4) An application for an original driver education provider certificate shall must include a properly executed surety bond or renewal certificate with the application. If a renewal certificate is used, the bond is considered renewed for each succeeding year in the same amount and with the same effect as an original bond. The bond or certificate shall must be maintained continuously without interruption to protect the contractual rights of students. The bond or certificate of an adult or teen driver education provider with 999 or fewer students in a calendar year shall must be in the principal sum of $20,000.00 with good and sufficient surety to be approved by the secretary of state. The bond or certificate of an adult or teen driver education provider with 1,000 or more students in a calendar year shall must be in the principal sum of $40,000.00 with good and sufficient surety to be approved by the secretary of state. The bond or certificate of a truck driver education provider shall must be in the principal sum of $50,000.00 with good and sufficient surety to be approved by the secretary of state. The bond shall must indemnify or reimburse a student, financing agency, or governmental agency for monetary loss caused through fraud, cheating, or misrepresentation in the conduct of the driver education provider's business where the fraud, cheating, or misrepresentation was made by the provider or by an employee, agent, instructor, or salesperson of the provider. The surety shall make indemnification or reimbursement for a monetary loss only after judgment based on fraud, cheating, or misrepresentation has been entered in a court of record against the provider. The aggregate liability of the surety shall must not exceed the sum of the bond. The surety on the bond may cancel the bond by giving 30 days' written or electronic notice to the secretary of state and after giving notice is not liable for a breach of condition occurring after the effective date of the cancellation.

(5) A driver education provider who that offers adult driver training, teen driver training, and truck driver training shall furnish a separate bond for each driver education provider certificate issued by the secretary of state to the applicant. When the secretary of state receives written or electronic notice that a driver education provider's surety bond required under subsection (4) or insurance coverage required under subsection (10) has been canceled, the secretary of state shall notify the provider that the provider's certificate shall be automatically canceled unless the secretary of state receives a new surety bond or a new insurance certificate within 30 days or less. If the provider fails to submit a new surety bond or insurance certificate to the secretary of state within 30 days or less, the secretary of state may automatically cancel the provider's certificate. A driver education provider who changes or terminates the provider's surety bond or the insurance coverage before the expiration date of the bond or insurance coverage shall immediately furnish the secretary of state with written or electronic notice as prescribed by the secretary of state of that change or termination and proof of a new bond or insurance coverage.

(6) As a condition precedent to the granting of a certificate, an applicant shall file with the secretary of state, on a form prescribed by the secretary of state, an irrevocable written or electronic stipulation. The stipulation shall must be signed by the applicant and state that the applicant agrees that legal process affecting the applicant, served on the secretary of state against the applicant or the applicant's successor in interest for a violation of this act, a rule promulgated under this act, or an order issued under this act, has the same effect as if personally served on the applicant. This appointment remains in force as long as the provider has any outstanding liability within this state under this act.

(7) Subsections (3)(d), (g), and (p) and (4) do not apply to an educational institution or a governmental agency.

(8) Subsection (3)(c) does not apply to a classroom location currently in use that was approved by the secretary of state in writing before the effective date of this act.

(9) A Except for providers that only offer online instruction, a classroom facility may not be located in a person's residence or a structure attached or adjacent to the person's residence unless the classroom facility was used and approved by the secretary of state in writing before the effective date of this act.

(10) A driver education provider shall maintain bodily injury and property damage liability insurance on a motor vehicle used in driver education course instruction. The insurance shall must insure the liability of the driver education provider, the driver education instructors, and a person taking instruction in the amount of $100,000.00 for bodily injury to or the death of 1 person in 1 accident, and, subject to the limit for 1 person; $300,000.00 for bodily injury to or the death of 2 or more persons in 1 accident; and $50,000.00 for damage to the property of others in 1 accident. The insurer shall be authorized to do insurance business in this state. The insurer shall not cancel the insurance before its expiration date unless it gives the secretary of state written or electronic notice as prescribed by the secretary of state of the insurer's intent to cancel the insurance at least 30 days before the cancellation.

(11) The secretary of state shall review and, in writing, approve or deny the use of a multiple vehicle driving facility under this act as determined necessary by the secretary of state. The secretary of state shall approve a facility only if it meets criteria prescribed by the secretary of state. The secretary of state shall perform an on-site inspection of a multiple vehicle driving facility as determined necessary by the secretary of state.

(12) The secretary of state may develop and prescribe an orientation and education program that a person must complete before the secretary of state issues that person an original driver education provider certificate under section 13.

(13) Nonrefundable application processing and multiple vehicle driving facility review and approval fees collected under this section shall must be deposited into the driver education provider and instructor fund created in section 83.

Sec. 35. (1) The secretary of state shall prescribe a model curriculum for teen driver training under this act. After September 1, 2007, a driver education provider classified for teen driver training shall use the secretary of state's prescribed model curriculum or may use an alternative curriculum only after it has been reviewed and approved by the secretary of state. The secretary of state may approve an alternative curriculum if it substantially meets or exceeds the standards of the secretary of state's prescribed model curriculum.

(2) Under a segment 1 curriculum and segment 2 curriculum combined, each student shall receive no less than 30 hours of classroom or online instruction and 6 hours of behind-the-wheel driver education course experience.

Sec. 37. (1) A segment 1 curriculum shall must include both classroom or online instruction and behind-the-wheel driver education course experience. The classroom or online instruction and behind-the-wheel instruction shall must be integrated, relate to each other, and meet the following requirements:

(a) Each student shall receive not less than 24 hours of classroom instruction. Classroom or online instruction shall must be scheduled to occur as follows:

(i) Classroom instruction shall Instruction must not occur not more than 2 hours per day.

(ii) Classroom instruction shall Instruction must occur over the course of 3 or more weeks.

(iii) Classroom instruction Instruction of 4 or more hours shall must be received before the student begins to receive behind-the-wheel instruction.

(iv) Classroom instruction shall Instruction must include not less than 1 hour of information concerning the laws pertaining to bicycles, motorcycles, and other vulnerable roadway users, including pedestrians, and shall emphasize awareness of their operation on the streets, roads, and highways of this state. The laws of this state pertaining to awareness of bicycles, motorcycles, and other vulnerable roadway users, including pedestrians, shall must also be incorporated into other subject areas of the curriculum where appropriate. The requirements of this subparagraph apply to both the model curriculum and an approved curriculum described in section 35. The information required by this subparagraph may be incorporated into the segment 1 curriculum or the segment 2 classroom or online course described in section 39(b).

(v) Classroom instruction shall Instruction must include information concerning the proper actions to be taken by a driver during a traffic stop.

(vi) Behind-the-wheel instruction of 3 or more hours shall must be completed before classroom instruction terminates.

(b) Each student shall receive not less than 6 hours of behind-the-wheel instruction or substitute hours permitted under this subsection. Behind-the-wheel instruction shall must be scheduled to occur as follows:

(i) A student shall receive not more than 1 hour of behind-the-wheel instruction per day.

(ii) Not more than 1 student shall occupy the front seat of the vehicle with the instructor.

(iii) A driver education motor vehicle shall must not contain not more than 4 students during behind-the-wheel instruction.

(iv) Not later than 3 weeks after the last classroom or online instruction has been completed, a student shall complete any remaining required behind-the-wheel instruction.

(v) Except as otherwise provided in this section, a student may receive instruction while operating a motor vehicle at a multiple vehicle driving facility. One hour of instruction received at a multiple vehicle driving facility may substitute as credit for 1 hour of behind-the-wheel experience. A maximum of 2 hours of behind-the-wheel experience can be substituted with instruction received at a multiple vehicle driving facility.

(c) A student shall receive 4 or more hours of behind-the-wheel observation time.

(2) A driver education provider classified for teen driver training shall not substitute behind-the-wheel instruction with multiple vehicle driving facility experience until the secretary of state gives the provider written approval for that substitution as provided in this act.

(3) A driver education provider classified for teen driver training shall not substitute behind-the-wheel driving experience with simulator device training.

(4) As used in this section:

(a) "Integrated" means classroom and behind-the-wheel instruction scheduled to include a mix of classroom and behind-the-wheel instruction throughout the duration of the driver education course, except as otherwise provided in this section.

(b) "Observation time" means the time a student in a driver education course sits in the rear seat of a vehicle and observes another student in the front seat behind the wheel operating the controls of the vehicle, responding to driving situations, and with an instructor sitting in the front seat.

(5) This section shall be known and may be cited as the "Nathan Bower act".

Sec. 39. A segment 2 curriculum course provided under this act must meet all of the following requirements:

(a) Be offered only to a student who has done all of the following:

(i) Successfully completed a segment 1 curriculum driver education course.

(ii) Held a valid level 1 graduated driver license for not less than 3 continuous months.

(iii) Acquired 30 or more hours driving experience on a level 1 graduated driver license that includes, except as otherwise provided in this subparagraph, not less than 2 hours of night driving with a licensed parent or legal guardian, or with the permission of a parent or legal guardian, with any licensed driver who is 21 years of age or older. The nighttime hours requirement does not apply to a person an individual who has been issued a graduated driver license that permits daylight driving only as provided in R 257.3 of the Michigan Administrative Code.

(b) Contain 6 or more hours of classroom or online instruction that is scheduled so the student receives not more than 2 hours of classroom or online instruction per day.

(c) Provide instruction explaining the right to make an anatomical gift in the event of death under part 101 of the public health code, 1978 PA 368, MCL 333.10101 to 333.10123. Instructional materials to effectuate this subdivision must be developed in cooperation with the federally designated organ procurement organization for this state and must include information on how to join the state organ, tissue, and eye donor registry. The following apply to instruction provided under this subdivision:

(i) If instruction material is provided at no cost to the driver education provider in an electronic medium and the provider uses a compatible type of electronic medium in providing instruction under this section, the provider shall show the instruction material to its students.

(ii) If instruction material is provided at no cost to the driver education provider in the form of a brochure or other written material, the provider shall provide the material to its students.

Sec. 41. (1) Except as otherwise provided in this section, a segment 1 or segment 2 classroom shall or online course must not contain more than 36 students when classroom or online instruction is given.

(2) A segment 2 class size may exceed 36 students with the prior approval of the secretary of state. The secretary of state may approve a segment 2 class size to exceed 36 students for up to 60 minutes per day when justified by a special presentation.

(3) The number of students in a class shall classroom must not exceed the number of students allowed by the fire marshal.

Sec. 45. (1) Before Except for providers of online instruction, before holding a class, a driver education provider shall file a projected driver education course schedule report with and as prescribed by the secretary of state. The course schedule report shall must contain:

(a) The name of the school.

(b) The dates and times of the class.

(c) The classroom location.

(d) The names of the instructors.

(e) Any other information the secretary of state determines is needed to administer this act or ensure the health, safety, and welfare of a student or the public.

(2) If a change occurs in the information contained in a report filed under subsection (1), the driver education provider shall immediately file an updated projected driver education course report with the secretary of state or later if authorized by the secretary of state.

(3) Upon completion of a class, a driver education provider shall file a course completion report with and as prescribed by the secretary of state. The course completion report shall must contain:

(a) The name of the school.

(b) The dates the class was held.

(c) The name, address, and birth date of each student issued a certificate of completion.

(d) The inventory control number of each certificate of completion issued to a student.

(e) Any other information the secretary of state determines is needed to administer this act or ensure the health, safety, and welfare of a student or the public.

(4) A driver education provider classified for truck driver training shall file a report with and as prescribed by the secretary of state on April 15 and October 15 of each year. Each report shall must contain:

(a) The name, address, and driver license number of each student enrolled since the provider's last report under this subsection.

(b) The name of each student who completed a training program.

(c) Any other information the secretary of state determines is needed to administer this act or ensure the health, safety, and welfare of a student or the public.

(5) A driver education provider shall file a year-end report with and as prescribed by the secretary of state on or before January 31 of each year. The year-end report shall must contain all of the following:

(a) The name of the school.

(b) The number of students who passed and failed each type of instruction given.

(c) A list of the instructors who taught during the year.

(d) A Except for providers that only offer online instruction, a list of classroom locations utilized during the year.

(e) The tuition charged for each type of instruction.

(f) Any other information the secretary of state determines is needed to administer this act or ensure the health, safety, and welfare of a student or the public.

(6) A driver education provider shall maintain a record of the instruction given to a student as prescribed by the secretary of state. A student instruction record shall must contain all of the following:

(a) The dates and number of hours of classroom or online and behind-the-wheel instruction given the student, signed by the instructors that gave the instruction.

(b) Complete registration and achievement records for the student.

(c) A list of the student's payments for tuition, fees, and purchase or rental of supplies or equipment.

(d) A copy of the signed contract between the school and the student.

(e) The information contained on a course completion report for the student.

(f) Any other information the secretary of state determines is needed to administer this act or ensure the health, safety, and welfare of a student or the public.

(7) The secretary of state shall prescribe the manner and method that any information, forms, reports, and other documents required in this act are submitted to the secretary of state, including electronic submission.