TITLE 24. TRANSPORTATION AND MOTOR VEHICLES

DEPARTMENT OF MOTOR VEHICLES

Fast-Track Regulation

Title of Regulation: 24VAC20-40. Rules and Regulations on Accident Prevention Courses for Older Drivers (amending 24VAC20-40-40).

Statutory Authority: §§ 46.2-203 and 38.2-2217 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: September 25, 2024.

Effective Date: October 10, 2024.

Agency Contact: Nicholas Megibow, Senior Policy Analyst, Department of Motor Vehicles, 2300 West Broad Street, Richmond, VA 23220, telephone (804) 367-6701, FAX (804) 367-4336, or email nicholas.megibow@dmv.virginia.gov.

Basis: The Department of Motor Vehicles (DMV) regulations are promulgated under the general authority of § 46.2-203 of the Code of Virginia, which grants DMV statutory authority to promulgate regulations necessary to carry out the laws administered by the department. Section 38.2-2217 of the Code of Virginia mandates that schedule of rates, rate classifications, or rating plans for motor vehicle insurance must provide for an appropriate reduction in premium charges for those insured persons who are 55 years of age and older. Only those insured persons who have voluntarily and successfully completed a mature driver motor vehicle crash prevention course approved by the DMV shall qualify for a three-year period after the completion of the course for the reduction in rates.

Purpose: The amendments reduce the regulatory burden on mature driver training businesses without detrimentally affecting the health, safety, or welfare of citizens of the Commonwealth.

Rationale for Using the Fast-Track Rulemaking Process: DMV determined that these changes reduce the regulatory burden on mature driver training businesses without detrimentally affecting citizens of the Commonwealth; therefore, DMV anticipates that the proposed regulatory action will be noncontroversial.

Substance: The amendments remove the requirements for businesses that provide mature driver motor vehicle crash prevention courses for drivers 55 years of age and older that instructors must (i) issue to each participant a student course evaluation form at the time of successful course completion and (ii) explain that the course evaluation form may be used for both positive and negative comments and should be returned to DMV at the address provided on the form.

Issues: The advantage to the public and the Commonwealth is that this regulatory action would remove unnecessary regulatory requirements from DMV's regulations and lessen the regulatory burden on mature driver training businesses. The action does not present any disadvantages to the public or the Commonwealth.

Department of Planning and Budget's Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The Department of Motor Vehicles (DMV) proposes to eliminate the requirements that instructors of motor vehicle accident prevention courses for older drivers (i) issue course evaluation forms to students and (ii) provide instructions on filling out the form and sending it to the agency.

Background. Section 38.2-2217 A of the Code of Virginia in part states that, "Any schedule of rates, rate classifications or rating plans for motor vehicle insurance as defined in § 38.2-2212 filed with the [State Corporation] Commission shall provide for an appropriate reduction in premium charges for those insured persons who are fifty-five years of age and older and who qualify as provided in this subsection. Only those insured persons who have voluntarily and successfully completed a mature driver motor vehicle crash prevention course approved by the Department of Motor Vehicles shall qualify for a three-year period after the completion of the course for the reduction in rates." Rules and Regulations on Accident Prevention Courses for Older Drivers Department of Motor Vehicles delineates the requirements for mature driver motor vehicle crash prevention courses to be approved by DMV.

One of the current requirements is that instructors issue to each participant at the time of successful course completion a student course evaluation form provided by DMV. The current regulation also states that instructors provide "Instructions which explain that the course evaluation form may be used for both positive and negative comments and should be returned to DMV at the address provided on the form." The agency proposes to eliminate these requirements.

Estimated Benefits and Costs. According to DMV, in practice the agency has not been receiving any feedback through the evaluation form process. Thus, eliminating the evaluation form requirements would not appear to prevent DMV from receiving useful feedback, but would save mature driver training firms a small amount of staff time.

Businesses and Other Entities Affected: The proposed amendments would affect the five existing mature driver training businesses in the Commonwealth.² All five would be considered small businesses.³

The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.⁴ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁵ The proposed amendments neither increase costs nor reduce benefits. Thus, no adverse impact is indicated.

Small Businesses⁶ Affected.⁷ The proposed amendments do not adversely affect small businesses.

Localities⁸ Affected.⁹ The proposed amendments neither disproportionally affect particular localities nor introduce costs for local governments.

Projected Impact on Employment. The proposed amendments do not affect total employment.

Effects on the Use and Value of Private Property. The proposed amendments would save a small amount of staff time, but would not likely substantively affect the value of firms. The proposed amendments do not affect real estate development costs.

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¹ Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² Data source: DMV.

³ Source: DMV.

⁴ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance.

⁵ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁶ Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁷ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁸ "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

⁹ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency's Response to Economic Impact Analysis: The Department of Motor Vehicles has reviewed the economic impact analysis prepared by the Department of Planning and Budget and has no comment.

Summary:

The amendments remove requirements for businesses that provide mature driver motor vehicle crash prevention courses for drivers 55 years of age and older. The removed provisions require instructors (i) to issue to each participant a student course evaluation form at the time of successful course completion and (ii) to explain that the course evaluation form may be used for both positive and negative comments and should be returned to the Department of Motor Vehicles at the address provided on the form.

24VAC20-40-40. Administrative requirements.

A. Fees, if any, charged for a course shall be a reasonable amount to be approved by the commissioner.

B. Course sponsors shall provide instructors who have received at least twelve 12 hours of training and who are competent to deliver the course; and furnish each instructor with all necessary materials for delivery of the course.

C. Course sponsors shall ensure that a record system is established and maintained of all course participants who are issued a certificate of completion; each record shall be maintained for a minimum of three years following course completion.

D. Course sponsors shall provide DMV with a list, in the format and frequency to be prescribed by the commissioner, of all course participants who are issued a certificate.

E. Course sponsors shall designate an individual as representative of the course sponsor, including address and telephone number, who is responsible for liaison with DMV, in order to provide efficient administration.

F. Course sponsors shall authorize DMV to audit course records and to monitor and evaluate any and all aspects of the course, including classroom facilities.

G. Course sponsors shall arrange for certificates of completion to be mailed promptly from a central location to course participants. Certificates shall be on a form which that has been approved by the commissioner.

H. Instructors shall issue to each participant at the time of successful course completion: 1. A printed statement, which has been approved by the commissioner, explaining that the certificate of completion will be mailed from a central office, and giving the name, address, and phone number of the person to contact if it is not received, the anticipated date that it should be received, and procedures for using the certificate to obtain an insurance rate discount; 2. A student course evaluation form which will be provided by DMV; 3. Instructions which explain that the course evaluation form may be used for both positive and negative comments and should be returned to DMV at the address provided on the form a printed version of a statement that has been approved by the commissioner explaining that the certificate of completion will be mailed from a central office and giving (i) the name, address, and telephone number of the person to contact if the certificate is not received; (ii) the anticipated date that the certificate should be received; and (iii) procedures for using the certificate to obtain an insurance rate discount.

I. Course sponsors shall provide the commissioner, upon request, with a schedule of class dates, times, and locations.