TITLE 24. TRANSPORTATION AND MOTOR VEHICLES

DEPARTMENT OF MOTOR VEHICLES

Fast-Track Regulation

Title of Regulation: 24VAC20-121. Virginia Driver Training Schools Regulations (amending 24VAC20-121-20).

Statutory Authority: §§ 46.2-203 and 46.2-1703 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: October 9, 2024.

Effective Date: October 24, 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: Section 46.2-203 of the Code of Virginia provides the Department of Motor Vehicles (DMV) with specific and general authority to adopt reasonable administrative regulations necessary to carry out the laws administered by the DMV. Section 46.2-1703 of the Code of Virginia authorizes DMV to provide adequate training for students and protect student and public safety.

Purpose: The proposed amendments would reduce the regulatory burden on driver training school businesses while not detrimentally affecting the health, safety, or welfare of citizens of the Commonwealth.

Rationale for Using Fast-Track Rulemaking Process: DMV determined that these changes would reduce the regulatory burden on driver training school businesses while not detrimentally affecting citizens of the Commonwealth. As such, DMV anticipates that the amendments would be noncontroversial and therefore appropriate for the fast-track rulemaking process.

Substance: The amendments remove the phrase "and a minimum of 10 square feet per student attending at any given time" from 24VAC20-121-20 B 1.

Issues: The advantage to the public and the Commonwealth is that this regulatory action would remove an unnecessary regulatory requirement from the regulation and lessen the regulatory burden on driver training school businesses. The amendments do 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 requirement that driver training schools provide a minimum of 10 square feet per student attending at any given time.

Background. The regulation specifies that driver training schools must comply with federal, state, and local health, fire, and building code requirements. According to DMV, there are sections of the Uniform Statewide Building Code (USBC) that govern the number of individuals that can be in a given area of a business. The agency believes that this is sufficient to effectively regulate space per student.

Estimated Benefits and Costs. Given USBC requirements and since no instructional requirements are proposed to be amended or repealed, the proposal to eliminate the requirement that driver training schools provide a minimum of 10 square feet per student attending at any given time is not likely to have substantial impact.

Businesses and Other Entities Affected: The proposed amendment potentially affects the 324 licensed driver training schools.² According to DMV, all or almost all are small businesses.

The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.³ 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.⁴ The proposed amendment neither increases costs nor reduces benefits. Thus, no adverse impact is indicated.

Small Businesses⁵ Affected.⁶ The proposed amendment does not adversely affect small businesses.

Localities⁷ Affected.⁸ The proposed amendment neither disproportionally affect particular localities nor introduces costs for local governments.

Projected Impact on Employment. The proposed amendment does not affect total employment.

Effects on the Use and Value of Private Property. The proposed amendment neither substantively affects the use and value of private property nor affects 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 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. 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.

⁴ 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. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁵ 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."

⁶ 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.

⁷ "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.

⁸ 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 the phrase "and a minimum of 10 square feet per student attending at any given time" from the regulation.

24VAC20-121-20. Business office and classroom requirements.

A. No school license shall be issued unless the school has an established place of business in the Commonwealth that is owned, rented, or leased by the school. Such established place of business shall:

1. Be the premises of the licensed location of the school;

2. Satisfy all local business licensing and zoning regulations;

3. Have office space devoted exclusively to the driver training school;

4. Contain all records that are required to be maintained under the provisions of these regulations unless the school has been permitted to maintain them the records elsewhere pursuant to 24VAC20-121-40;

5. Be equipped with a desk, chairs, filing space, working utilities, and a working telephone listed in the name of the school;

6. Comply with federal, state, and local health, fire, and building code requirements, including the Americans with Disabilities Act (42 USC § 12101 et seq.);

7. Be open to the general public a minimum of eight hours per week during normal business hours; and

8. Not share space with a school classroom.

The school shall also provide to the department the street address and physical address of any other business offices maintained by the school in addition to the licensed location office.

In addition to business office addresses, all addresses, physical locations of classrooms, driving simulators, or any other facilities used by the school shall be provided to the department in a format prescribed by the department. If any such classroom, driving simulator, or other facility is not owned by the school, then a copy of all agreements associated with the use of such property by the school shall be provided to the department. Schools shall not use classrooms, driving simulators, or other driver training facilities prior to receiving approval for their use from the department.

A school owner's residence may be used as the licensed location of a school if it the residence qualifies for a federal tax deduction of expenses related to the business use of part of the residence and meets the established place of business requirements set forth in these regulations.

B. Any school that engages in classroom instruction shall provide a classroom with the following:

1. Seating arrangements and writing surfaces for each student and a minimum of 10 square feet per student attending at any given time;

2. Blackboards or other visual aids that shall be visible from all seating positions;

3. Driver education reference books, including, when applicable, current curriculum guides, student work books workbooks and appropriate textbooks for each student;

4. Appropriate audio/video equipment and screen in good working order; and

5. Restroom facilities that are clean, accessible, and in good working order.

C. Office and instruction hours shall be posted in a conspicuous location outside the licensed location and any other business office in a manner that is visible and easily accessible to the public from outside of the licensed location and business.

D. The school license and any notice of the department that limits or restricts training shall be prominently posted at the licensed location office. A copy of the school license and notice, if applicable, also shall also be prominently posted in each school classroom and any other business office maintained by the school.

In addition, schools shall display, in a conspicuous location in all their classrooms and their business offices, signs provided by the department that notify students and the public about the department's toll-free hotline.

E. Any school licensed by the department shall notify the department, in a format prescribed by the department, 30 days prior to a change of address for the licensed location, any other business office or classroom, or other instructional facility. The department will issue a revised license reflecting such changes. The school shall return the current license to the department upon receipt of a revised school license. All school-related business, classroom, and instructional locations are subject to approval by the department, as required in these regulations.

F. The location of a school's licensed location, other business offices, classrooms, or practice driver training areas shall be a distance of at least 1,500 feet from any property owned, leased, or maintained by the department for examining motor vehicle operators. Such distance shall be measured in a straight line from the nearest point of the primary building of the department's property to the nearest point of the school licensed location, business office, classroom, or practice driver training area, whichever is closest. This distance requirement may be waived by the department if the licensed location, other business office, classroom, or practice driver training area has been previously allowed to be within the 1,500 foot 1,500-foot limit as a result of an action or omission on the part of the department. All school-related business, classroom, or instructional locations must be approved by the department prior to use.