SB 169 (2025) — Transportation budget trailer bill.

AMENDED IN ASSEMBLY JUNE 26, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

SENATE BILLNo. 169

CHAPTER 82

Statutes of 2026

[ Approved by Governor July 13, 2026. Filed with Secretary of State July 13, 2026. ]

BUDGET TRAILER BILL

Introduced by Committee on Budget and Fiscal Review

January 23, 2025

An act to amend Sections 14017 and 54237.7 of the Government Code, to amend Sections 99268.9, 99314.6, 187034, and 187038 of, and to add Sections 187035 and 187037 to, the Public Utilities Code, and to amend Sections 1653.5, 1656, 1801.2, 4450, 12814, 13020, 21655.10, and 22511.55 of, to add Sections 247 and 1808.3 to, and to repeal Section 9270 of, the Vehicle Code, relating to transportation, and making an appropriation therefor, to take effect immediately, bill related to the budget.

Vote: majority Appropriation: yes Fiscal committee: yes Local program: no

LEGISLATIVE COUNSEL’S DIGEST

(1) Existing law requires the Department of Transportation to work in partnership with the California Workforce Development Board to support California’s high road construction careers program. Existing law requires the department to reserve a minimum aggregate total of $50,000,000 of federal funds from the federal Infrastructure Investment and Jobs Act to be allocated over 4 years in support of the program.

This bill would instead require the department to reserve a minimum aggregate total of $30,000,000 of state transportation funds to be allocated in support of California’s high road construction careers program.

(2) Existing law establishes priorities and procedures that any state agency disposing of surplus residential property is required to follow. Existing law requires the Department of Transportation to deposit proceeds from the sale of a surplus residential property from the department to a new owner into the SR-710 Rehabilitation Account. Existing law continuously appropriates the funds in the account to the department for the purpose of providing required repairs to certain surplus residential properties that are offered for sale, as provided. Existing law requires that the total funds maintained in the account not exceed $1,200,000 and that funds exceeding that amount, less any reimbursements due to the federal government, be transferred to the State Highway Account in the State Transportation Fund, to be used for allocation by the California Transportation Commission exclusively to fund projects located in specified cities and in the 90032 postal ZIP Code.

This bill would authorize an increase in the amount of the total funds maintained in the account to instead be up to $15,000,000. By authorizing an increase in the funds held in a continuously appropriated account, the bill would make an appropriation.

(3) Under the Mills-Alquist-Deddeh Act, also known as the Transportation Development Act, transit operators are required to maintain specified ratios of fare revenue to operating costs in order to receive funds under the act. If a transit operator does not maintain the prescribed ratio of fare revenues to operating costs, the act requires a reduction in the amount of funding for which the transit operator would otherwise be eligible, as specified. The act suspends the imposition of those penalties on transit operators during the 2019–20 to 2025–26 fiscal years, inclusive.

This bill would suspend the imposition of those penalties through the 2026–27 fiscal year.

(4) The Transportation Development Act creates the State Transit Assistance Program, under which certain revenues in the Public Transportation Account are allocated by formula for public transportation purposes. The act requires a transit operator to receive its entire allocation under the program, and authorizes the operator to use any or all of that allocation for operating purposes, if it meets one of 2 specified efficiency standards. If the operator fails to meet either of those efficiency standards, existing law reduces the amount of the operator’s allocation available for operating purposes by a specified percentage and requires that amount to be used by the operator for capital purposes. The act exempts a transit operator from meeting either of those efficiency standards for the 2020–21 to 2025–26 fiscal years, inclusive, and authorizes the operator to use those funds for operating or capital purposes during that period.

This bill would extend that exemption through the 2026–27 fiscal year.

(5) Existing law creates the High-Speed Rail Authority to develop and implement a high-speed rail system in the state. Existing law creates the High-Speed Rail Authority Office of the Inspector General and authorizes the High-Speed Rail Authority Inspector General to initiate an audit or review regarding oversight related to delivery of the high-speed rail project undertaken by the authority and the selection and oversight of contractors related to that project.

This bill would require the Inspector General, upon completion of an audit or review, to publish a complete report on its internet website, provide notification of the published report to the Governor and the High-Speed Rail Authority, and submit a copy of the report to the Legislature. The bill would authorize the Inspector General to hold that report, or a portion of that report, confidential, as specified, if the Inspector General determines that the report, or portion of the report, would describe or otherwise reveal weaknesses that would pose a substantial and articulable risk to the project or to state operations if publicly disclosed. If the Inspector General makes that determination, the bill would require the Inspector General, among other things, to deliver a confidential report to state officials with oversight of the project, as specified.

This bill would require all books, papers, records, and correspondence of the office to be public records subject to the California Public Records Act, but would prohibit the Inspector General or the employees of the Inspector General from releasing certain types of records to the public, except under specified circumstances. The bill would prohibit the Inspector General from destroying any papers or memoranda used to support a completed audit or review sooner than 3 years after the corresponding report is published or delivered, as specified.

Existing law authorizes the Inspector General to access certain records and property and requires an officer or employee of any agency or entity having those records or property in their possession or under their control to permit access to, and examination and reproduction of, those records or property, upon the request of the Inspector General, as specified.

This bill would specify that providing confidential information to the Inspector General under these circumstances does not constitute a waiver of that confidentiality.

Existing law requires the Inspector General to report at least annually to the Legislature and the Governor a summary of its findings of any reviews, investigations, or audits, when the High-Speed Rail Authority provides statutorily required documents to the Legislature, and upon request of the Legislature or the Governor.

This bill would instead require the Inspector General to report at least annually to the Legislature and the Governor a summary of its findings of any reviews, investigations, or audits published pursuant to the above-described provisions at the beginning of each fiscal year and upon request of the Legislature or the Governor.

(6) Existing law requires the Department of Motor Vehicles to, upon registration of a vehicle, issue a certificate of ownership to the legal owner and a registration card to the owner, or both the certificate and the registration card to the owner, if there is no legal owner of the vehicle.

This bill would authorize the department to adopt regulations for the issuance and acceptance of an electronic certificate of title or electronic certificate of ownership, as specified.

(7) Existing federal regulations require a state, prior to issuing a REAL ID driver’s license or REAL ID identification card, to check with all other states, using the State-to-State Verification Service, to determine if an applicant currently holds a REAL ID driver’s license or REAL ID identification card in another state. Existing law requires specified forms filed with the department to contain a social security account number. Existing law provides that information provided on those forms regarding a driver’s license or identification card applicant’s social security account number or ineligibility for a social security account number is not a public record and is not subject to disclosure by the department, except for specified reasons.

This bill would authorize the department to participate in the State-to-State Verification Service, or any successor system, if operated by the American Association of Motor Vehicle Administrators, as specified. The bill would require the department to report on its participation in the service or system, annually provide its report to the budget and relevant policy committees of the Legislature, and publish the report on its internet website. The bill would require that the report include, among other things, each participating jurisdiction’s number of requests made directly to the state and information on any unusual requests or patterns in the data that indicate a participating jurisdiction is using the service or system for unauthorized purposes. The bill would also require the department, with the advice of stakeholders sitting on an advisory group, as specified, to adopt and maintain a State-to-State Verification Service Monitoring Plan to detect, prevent, and respond to requests for, or uses of, information through the service system for an unauthorized purpose. The bill would require the department to provide the budget and relevant policy committees with a draft version of the plan by February 1, 2027, and a final plan by July 1, 2027. The bill would authorize the Attorney General to commence an action against the American Association of Motor Vehicle Administrators, a participating jurisdiction, or another individual or entity, or on behalf of certain individuals, to enforce these provisions, as specified.

This bill would expand the above-described exceptions by permitting the department to disclose specified information to participate in the State-to-State Verification Service for the sole purpose of verifying and exchanging driver’s license, identification card, and driver history records with participating jurisdictions.

(8) Existing law requires the department to publish a summary or synopsis of the laws regulating the operation of a vehicle and the use of the highways. Existing law requires the department to publish as many copies of the summary or synopsis in Spanish as the director of the department determines are needed. Existing law requires the department to provide the summary or synopsis in English and Spanish to its field offices and to law enforcement without charge.

This bill would require the department to publish the summary or synopsis on its internet website and would eliminate the other requirements described above pertaining to the summary or synopsis.

(9) Existing law authorizes the department to provide electronic notification under certain circumstances if the department establishes certain conditions, including, among others, that the department has identified the person before accepting their consent to receive the type of document or information that is electronically delivered and the person has consented to the electronic receipt of the document or information delivered.

This bill would delete the conditions described above and instead authorize the department to provide electronic notification if the person has been identified by the department and has provided the department with an email address or other similar electronic address, and the department has informed the person that the department will use the electronic address provided to deliver a type of document or information electronically and that the person will not receive a separate paper copy by mail or other means, as specified.

(10) Existing law authorizes the department to charge a service fee of not more than $15, in addition to other fees payable under the Vehicle Code, for the completion of specified services at the department’s headquarters office in Sacramento within 72 hours after receipt of a complete and proper application for the service.

This bill would repeal this provision.

(11) Existing law requires an application for renewal of a driver’s license to be made at a department office by the person to whom the license was issued. Existing law requires renewal of a license to be under the terms and conditions prescribed by the department. Existing law authorizes the department to require an applicant to take certain examinations for renewal, as specified. Existing law requires that a person who is required to pass a knowledge examination in order to renew their driver’s license be provided with written notice of that requirement in their driver’s license renewal notice.

This bill would delete the written notice requirement described above.

(12) Existing law authorizes the department to establish a pilot program to evaluate the use of optional mobile or digital alternatives to driver’s licenses and identification cards, subject to certain requirements, including, among others, the voluntary participation of persons in the program and limiting participation in the program to 15% of licensed drivers.

This bill would increase the limit on participation in the program to 60% of licensed drivers.

(13) Existing law, until January 1, 2029, authorizes the Department of Transportation and local authorities to temporarily permit exclusive or preferential use of HOV lanes, high-occupancy toll lanes, and other lanes for vehicles displaying a distinctive decal, label, or other identifier issued by the organizers of the 2028 Olympic and Paralympic Games that clearly distinguishes the vehicle is being operated on the games route network during a 2028 Olympic and Paralympic Games period, as specified.

This bill would, until January 1, 2029, authorize the Department of Transportation, on highways in its jurisdiction, in consultation with state, local, and regional authorities and other relevant stakeholders, to establish a program of automated enforcement of drivers that fail to obey the directions of a traffic control device establishing the games route network during the 2028 Olympic and Paralympic Games period. The bill would authorize the department to enter into an agreement with a local authority or regional transportation agency to administer a program pursuant to these provisions or to become the program operator, as specified. The bill would authorize a program operator to enter into contracts with manufacturers, suppliers, and vendors for purposes of the automated enforcement system, subject to specified requirements. The bill would require each program operator that is not the department to report information to the department, as it requests, to conduct an evaluation of the program.

This bill would require a program operator of an automated enforcement system to administer a public information campaign before implementation of the system and to issue warning letters before issuing notices of violations, as specified. The bill would require that a notice of violation be issued in writing to the registered owner of the vehicle within 15 days of the date of the violation, as specified. The bill would establish procedures to review and contest a notice of violation, as specified, and would require the administrative hearing process to include, among other things, the ability for the person requesting the hearing the option to choose a hearing upon written declaration, video conference, or in person.

This bill would impose a civil penalty for improper use of the games route network recorded by an automated enforcement system, as provided, and would specify that these violations shall not result in the Department of Motor Vehicles suspending or revoking driving privileges, preventing registration renewals, or assessing violation points against driving records.

This bill would establish the Games Route Network Account in the State Transportation Fund and direct moneys generated from the automated enforcement program into the account. The bill would continuously appropriate moneys from the account to support the administration of the automated enforcement program and to be transferred to the State Highway Account or the Motor Vehicle Account to cover the Department of Transportation’s cost for the construction, maintenance, and deconstruction of the games route network or to the Department of the California Highway Patrol to cover their enforcement efforts related to the games route network. By establishing a new continuously appropriated fund, the bill would make an appropriation.

The bill would make any photographic image or administrative records made by an automated enforcement system pursuant to these provisions or information obtained from the Department of Motor Vehicles for the administration and enforcement of these provisions confidential.

(14) Existing law authorizes the department to issue a distinguishing placard to a disabled veteran or person with a disability, upon application, to be displayed upon a parked vehicle for the purpose of identifying eligibility for certain parking privileges. Existing law requires the placard to meet specified requirements, including that a portion of the placard be printed in a contrasting color to be changed every 2 years and that the size and color of the contrasting portion of the placard be large and distinctive to be readily identifiable by a law enforcement officer in a passing vehicle.

This bill would remove the size and contrasting color requirements for the placard expiration date.

(15) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

(16) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

The people of the State of California do enact as follows:

SECTION 1.

Section 14017 of the Government Code is amended to read:

14017.

The department shall work in partnership with the California Workforce Development Board to support California’s high road construction careers program. The department shall reserve a minimum aggregate total of thirty million dollars ($30,000,000) of state transportation funds to be allocated in support of the program.

SEC. 2.

Section 54237.7 of the Government Code is amended to read:

54237.7.

(a) Notwithstanding Section 183.1 of the Streets and Highways Code, the Department of Transportation shall deposit proceeds from the sale of surplus residential property from the department to a new owner pursuant to this article into the SR-710 Rehabilitation Account, which is hereby created. Notwithstanding Section 13340, funds in the account are hereby continuously appropriated to the department without regard to fiscal years for the purpose of providing repairs required pursuant to subdivision (b) of Section 54237. The total funds maintained in the account shall not exceed fifteen million dollars ($15,000,000). Funds exceeding that amount, less any reimbursements due to the federal government, shall be transferred to the State Highway Account in the State Transportation Fund to be used for allocation by the California Transportation Commission (commission) exclusively to fund projects located in the Cities of Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP Code. Projects shall be selected and prioritized by the affected communities in consultation with the Los Angeles County Metropolitan Transportation Authority, pursuant to guidelines developed by the commission. The Los Angeles County Metropolitan Transportation Authority shall submit a proposed program of projects and the commission shall have final authority to approve the projects. Eligible projects may include, but are not limited to: sound walls; transit and rail capital improvements; bikeways; pedestrian improvements; signal synchronization; left turn signals; and major street resurfacing, rehabilitation, and reconstruction. The funds shall not be used to advance or construct any proposed North State Route 710 tunnel. Any funds remaining in the SR-710 Rehabilitation Account on the date that final payment due for the last of the properties repaired has been made, less any reimbursements due to the federal government, shall be transferred to the State Highway Account in the State Transportation Fund, to be used exclusively for the purposes described in this section.

(b) Notwithstanding any other law, the net proceeds from a subsequent market sale of surplus residential property sold pursuant to this article at an affordable or reasonable price, as specified in regulations adopted by the department, shall be deposited into the Affordable Housing Trust Account, which is hereby created within the Housing Finance Fund and, notwithstanding Section 13340, continuously appropriated to the California Housing Finance Agency to carry out any activity authorized by Part 3 (commencing with Section 50900) of Division 31 of the Health and Safety Code for the benefit of persons and families of low and moderate income residing exclusively in the Cities of Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP Code. The priority for the distribution of proceeds from subsequent sales shall be established pursuant to regulations adopted by the department.

SEC. 3.

Section 99268.9 of the Public Utilities Code is amended to read:

99268.9.

(a) (1) Except as otherwise provided in subdivision (b), if an operator was allocated funds under this article during a fiscal year in which it did not maintain the required ratio of fare revenues to operating cost, the operator’s eligibility to receive moneys from the local transportation fund and allocations pursuant to Sections 99313.3 and 99314.3 shall be reduced during a subsequent penalty year by the amount of the difference between the required fare revenues and the actual fare revenues for the fiscal year that the required ratio was not maintained. The penalty year shall be the fiscal year that begins one year after the end of the fiscal year during which the required ratio was not maintained.

(2) An operator subject to this subdivision shall demonstrate to the transportation planning agency, the county transportation commission, or the San Diego Metropolitan Transit Development Board how it will achieve the required ratio of fare revenues during any penalty year.

(b) The first fiscal year for which an operator does not maintain the required ratio of fare revenues to operating cost is deemed a grace year, and shall not result in any penalty nor loss of eligibility for funds under this article.

(c) (1) Notwithstanding subdivision (a), a transportation planning agency, county transportation commission, or the San Diego Metropolitan Transit Development Board shall not impose the penalty described in subdivision (a) on an operator that does not maintain the required ratio of fare revenues to operating cost during the 2019–20, 2020–21, 2021–22, 2022–23, 2023–24, 2024–25, 2025–26, or 2026–27 fiscal year.

(2) This subdivision shall become inoperative on January 1, 2028.

SEC. 4.

Section 99314.6 of the Public Utilities Code is amended to read:

99314.6.

(a) Except as provided in subdivision (e) and Section 99314.7, the following eligibility standards apply:

(1) Except as provided in paragraph (3), funds shall be allocated for operating or capital purposes pursuant to Sections 99313 and 99314 to an operator if the operator meets either of the following efficiency standards:

(A) The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operator’s total operating cost per revenue vehicle hour in the latest year for which audited data are available does not exceed the sum of the preceding year’s total operating cost per revenue vehicle hour and an amount equal to the product of the percentage change in the Consumer Price Index for the same period multiplied by the preceding year’s total operating cost per revenue vehicle hour.

(B) The operator shall receive its entire allocation, and any or all of this allocation may be used for operating purposes, if the operator’s average total operating cost per revenue vehicle hour in the latest three years for which audited data are available does not exceed the sum of the average of the total operating cost per revenue vehicle hour in the three years preceding the latest year for which audited data are available and an amount equal to the product of the average percentage change in the Consumer Price Index for the same period multiplied by the average total operating cost per revenue vehicle hour in the same three years.

(2) If an operator does not meet either efficiency standard under paragraph (1), the operator shall receive its entire allocation and the funds shall be allocated pursuant to this paragraph. The portion of the allocation that the operator may use for operations shall be the total allocation to the operator reduced by the lowest percentage by which the operator’s total operating cost per revenue vehicle hour for the applicable year or three-year period calculated pursuant to subparagraph (A) or (B) of paragraph (1) exceeded the target amount necessary to meet the applicable efficiency standard. The remaining portion of the operator’s allocation shall be used only for capital purposes.

(3) The transportation planning agency or county transportation commission, or the San Diego Metropolitan Transit Development Board, as the case may be, shall adjust the calculation of operating costs and revenue vehicle hours pursuant to paragraph (1) to account for either or both of the following factors:

(A) Exclusion of cost increases beyond the change in the Consumer Price Index for fuel; alternative fuel programs; power, including electricity; insurance premiums and payments in settlement of claims arising out of the operator’s liability; or state or federal mandates.

(B) Exclusion of the costs and revenue vehicle hours required to provide comparable complementary paratransit service as required by Section 37.121 of Title 49 of the Code of Federal Regulations, pursuant to the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec 12101 et seq.), as identified in the operator’s paratransit plan pursuant to Section 37.139 of Title 49 of the Code of Federal Regulations, costs and revenue vehicle hours required to operate demand response and microtransit services that expand access to transit service beyond fixed route corridors, costs of funding or improving payment and ticketing systems and services, costs of security services and public safety contracts, any expense greater than the actuarially determined contribution associated with pensions and other post-employment benefits as required by Government Accounting Standards Board Statement Numbers 68 and 75, costs of planning for improvements in transit operations, integration with other operators and agencies, transitioning to zero-emission operations, and for compliance with state and federal mandates, and startup costs for new services for a period of not more than two years.

(b) As used in this section, the following terms have the following meanings:

(1) “Consumer Price Index,” as applied to an operator, is the regional Consumer Price Index for that operator’s region, as published by the United States Bureau of Labor Statistics. If a regional index is not published, the index for the State of California applies.

(2) “Microtransit” means IT-enabled multipassenger transportation services that serve passengers using dynamically generated routes, and may expect passengers to make their way to and from common pick-up or drop-off points. Microtransit vehicles include, but are not limited to, large sport utility vehicles, vans, and shuttle buses.

(3) “New service” has the same meaning as “extension of public transportation services” as defined in Section 99268.8.

(4) “Operating cost” means the total operating cost as reported by the operator under the uniform system of accounts and records, pursuant to Section 99243 and subdivision (a) of Section 99247.

(5) “Revenue vehicle hours” has the same meaning as “vehicle service hours,” as defined in subdivision (h) of Section 99247.

(d) The exclusion of cost increases described in paragraph (3) of subdivision (a) applies solely for the purpose of calculating an operator’s eligibility to claim funds pursuant to this section and does not authorize an operator to report an operating cost per revenue vehicle hour, other than as described in this section and in Section 99247, to any of the following entities:

(1) The Controller pursuant to Section 99243.

(2) The entity conducting the fiscal audit pursuant to Section 99245.

(3) The entity conducting the performance audit pursuant to Section 99246.

(e) Notwithstanding subdivision (a), an operator is exempt from meeting either efficiency standard under paragraph (1) of subdivision (a) for the 2020–21 to 2026–27, inclusive, fiscal years, and may use the funds allocated pursuant to Sections 99313 and 99314 for operating or capital purposes during that period of time.

SEC. 5.

Section 187034 of the Public Utilities Code is amended to read:

187034.

(a) Notwithstanding any other law, the Inspector General during regular business hours or at any other time determined necessary by the Inspector General shall have access to and authority to examine and reproduce any and all books, accounts, reports, vouchers, correspondence, files, documents, and other records, and to examine the bank accounts, moneys, or other property of the High-Speed Rail Authority in connection with duties authorized by this division. Any officer or employee of any agency or entity having these records or property in their possession or under their control shall permit access to, and examination and reproduction thereof consistent with the provisions of this division, upon the request of the Inspector General or the Inspector General’s authorized representative.

(b) The High-Speed Rail Authority shall ensure that the right-of-access provisions described in subdivision (a) are included in all of its contracts or amendments executed on or after July 1, 2024, in which project funds will be expended.

(c) Providing confidential information to the Inspector General pursuant to this section, including, but not limited to, confidential information that is subject to a privilege, shall not constitute a waiver of that confidentiality.

SEC. 6.

Section 187035 is added to the Public Utilities Code, to read:

187035.

(a) The Inspector General shall not destroy any papers or memoranda used to support a completed audit or review sooner than three years after the corresponding report is published or delivered pursuant to Section 187037.

(b) All books, papers, records, and correspondence of the office pertaining to its work are public records subject to Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code and shall be filed at any of the regularly maintained offices of the Inspector General, except that none of the following items or papers of which these items are a part shall be released to the public by the Inspector General or the employees of the Inspector General:

(1) Personal papers and correspondence of any person providing assistance to the Inspector General for purposes of paragraph (3) of subdivision (a) of Section 187032 when that person has requested in writing that their papers and correspondence be kept private and confidential. Consistent with subparagraph (A) of paragraph (3) of subdivision (a) of Section 187032, those papers and correspondence shall become public records if the written request is withdrawn, or upon the order of the Inspector General.

(2) Papers, correspondence, memoranda, or any substantive information pertaining to any audit or review not completed.

(3) Papers, correspondence, or memoranda pertaining to any audit or review that has been completed, which papers, correspondence, or memoranda are not used in support of any report resulting from the audit or review.

(4) Any survey of public employees or contracted staff that the Inspector General determines should be kept confidential to deter retaliation if the employees or staff respond to the survey.

(5) Any record of an investigation conducted under this division, including, but not limited to, all investigative files and work product, except that the Inspector General, whenever the Inspector General determines it necessary to serve the interests of the state, may issue a public report of the results of an investigation that has substantiated a violation of laws, rules, or regulations, or mismanagement, gross waste of funds, abuse of authority, or a substantial and specific danger to the public health and safety. Except as provided in subparagraph (A) of paragraph (3) of subdivision (a) of Section 187032, the Inspector General may also release any findings or evidence supporting any findings resulting from an investigation conducted pursuant to this division whenever the Inspector General determines it necessary to serve the interests of the state.

(c) The restrictions on public disclosure described in subdivision (b) shall only apply to records in the possession or control of the Inspector General, and shall not alter the responsibility of any other state or local agency to comply with all applicable laws regarding the disclosure of public records.

SEC. 7.

Section 187037 is added to the Public Utilities Code, to read:

187037.

(a) Except as provided in subdivision (b), upon completion of an audit or review conducted pursuant to subdivision (a) of Section 187030, the Inspector General shall do all of the following:

(1) Publish a complete report on its internet website.

(2) Provide, in compliance with policies developed by the Inspector General, notification of the published report to the Governor and the High-Speed Rail Authority.

(3) Submit a copy of the published report to the Legislature in compliance with Section 9795 of the Government Code.

(b) (1) The Inspector General may hold a report, or a portion of a report, confidential for the period of time described in paragraph (3) if the Inspector General determines that the report, or a portion of the report, would describe or otherwise reveal weaknesses, including those involving information security, physical security, fraud detection controls, or pending litigation, that would pose a substantial and articulable risk to the project or to state operations if publicly disclosed.

(2) If the Inspector General makes a determination pursuant to paragraph (1), the Inspector General shall do all of the following:

(A) Make publicly available any reasonably segregable portion of the report that does not pose the substantial and articulable risk identified pursuant to paragraph (1).

(B) Publicly disclose that a report, or a portion of the report, has been held confidential and provide the rationale for the determination.

(C) Deliver a confidential report, or a confidential portion of the report, that describes and makes recommendations to resolve the identified weaknesses to state officials with oversight of the project, which may include the executive director and board chair of the High-Speed Rail Authority, the chairs of the Assembly Committee on Transportation and the Senate Committee on Transportation, or the Governor. The report, or portion of the report, delivered pursuant to this subparagraph shall remain confidential only so long as the Inspector General determines that public disclosure would continue to pose the substantial and articulable risk identified pursuant to paragraph (1).

(3) Within 120 days after making a determination pursuant to paragraph (1), and at least every 120 days thereafter while a report, or a portion of a report, is held confidential, the Inspector General shall reassess whether continued confidentiality is warranted. Upon each reassessment, the Inspector General shall either publicly release the report, or the portion of the report, that is held confidential or issue a written determination explaining why continued confidentiality remains necessary.

SEC. 8.

Section 187038 of the Public Utilities Code is amended to read:

187038.

(a) The Inspector General shall report at least annually to the Legislature and the Governor a summary of its findings, positive and negative, of any reviews, investigations, or audits published pursuant to Section 187037 at the beginning of each fiscal year and upon request of the Legislature or Governor. The summary shall be posted on the office’s internet website and otherwise made available to the public upon its release to the Legislature and the Governor. The summary shall include, but not be limited to, significant problems discovered by the office, and whether previous recommendations the office has made have been implemented.

(b) The Inspector General shall report annually to the Legislature and the Governor on findings related to the High-Speed Rail Authority’s planning and delivery of the project. This report shall include updates on the High-Speed Rail Authority’s efforts to remedy any identified findings, and whether any identified findings have been addressed.

(c) The Inspector General shall maintain a list of identified findings, and the status of the High-Speed Rail Authority’s efforts to address them, and shall post that list on the office’s internet website.

(d) Reports to be submitted to the Legislature pursuant to subdivisions (a) and (b) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 9.

Section 247 is added to the Vehicle Code, to read:

247.

“Certificate of title” or “certificate of ownership” means an official record in paper or electronic form, compliant with the regulations adopted pursuant to subdivision (b) of Section 4450, that establishes and provides proof of legal ownership of a vehicle.

SEC. 10.

Section 1653.5 of the Vehicle Code, as amended by Section 11 of Chapter 14 of the Statutes of 2020, is amended to read:

1653.5.

(a) Each form prescribed by the department for use by an applicant for the issuance or renewal by the department of a driver’s license or identification card pursuant to Division 6 (commencing with Section 12500) shall contain a section for the applicant’s social security account number.

(b) Each form prescribed by the department for use by an applicant for the issuance, renewal, or transfer of the registration or certificate of title to a vehicle shall contain a section for the applicant’s driver’s license or identification card number.

(c) Except as provided in Section 12801, a person who submits to the department a form that, pursuant to subdivision (a), contains a section for the applicant’s social security account number, or pursuant to subdivision (b), the applicant’s driver’s license or identification card number, if any, shall furnish the appropriate number in the space provided.

(d) Except as provided in Section 12801, the department shall not complete an application that does not include the applicant’s social security account number or driver’s license or identification card number as required under subdivision (c).

(e) An applicant’s social security account number shall not be included by the department on a driver’s license, identification card, registration, certificate of title, or any other document issued by the department.

(f) Notwithstanding any other law, information regarding an applicant’s social security account number, or ineligibility for a social security number, obtained by the department pursuant to this section, is not a public record and shall not be disclosed by the department except for any of the following purposes:

(1) Responding to a request for information from an agency operating pursuant to, and carrying out the provisions of, Part A (Block Grants to States for Temporary Assistance for Needy Families), or Part D (Child Support and Establishment of Paternity), of Subchapter IV of Chapter 7 of Title 42 of the United States Code.

(2) Implementation of Section 12419.10 of the Government Code.

(3) Responding to information requests from the Franchise Tax Board for the purpose of tax administration.

(4) Responding to information requests from the Employment Development Department for purposes relating to tax administration and ensuring compliance with family temporary disability insurance, unemployment compensation disability, and unemployment compensation benefit requirements.

(5) Participation in the State-to-State Verification Service, or any successor system, operated by the American Association of Motor Vehicle Administrators, for the sole purpose of verifying and exchanging driver’s license, identification card, and driver history records with participating jurisdictions.

(g) This section shall become inoperative on the effective date of a final judicial determination made by any court of appellate jurisdiction that any provision of the act that added this section, or its application, either in whole or in part, is enjoined, found unconstitutional, or held invalid for any reason. The department shall post this information on its internet website.

SEC. 11.

Section 1653.5 of the Vehicle Code, as amended by Section 168 of Chapter 71 of the Statutes of 2014, is amended to read:

1653.5.

(c) A person who submits to the department a form that, pursuant to subdivision (a), contains a section for the applicant’s social security account number, or pursuant to subdivision (b), the applicant’s driver’s license or identification card number, if any, shall furnish the appropriate number in the space provided.

(d) The department shall not complete an application that does not include the applicant’s social security account number or driver’s license or identification card number as required under subdivision (c).

(f) Notwithstanding any other law, information regarding an applicant’s social security account number, obtained by the department pursuant to this section, is not a public record and shall not be disclosed by the department except for any of the following purposes:

(2) Implementation of Section 12419.10 of the Government Code.

(3) Responding to information requests from the Franchise Tax Board for the purpose of tax administration.

(g) This section shall become operative on the effective date of a final judicial determination made by any court of appellate jurisdiction that any provision of the act that added this section, or its application, either in whole or in part, is enjoined, found unconstitutional, or held invalid for any reason. The department shall post this information on its internet website.

SEC. 12.

Section 1656 of the Vehicle Code is amended to read:

1656.

The department shall publish on its internet website a synopsis or summary of the laws regulating the operation of vehicles and the use of the highways.

SEC. 13.

Section 1801.2 of the Vehicle Code is amended to read:

1801.2.

(a) For a provision of this code or of Title 13 of the California Code of Regulations that requires the department to mail, notify, deliver via certified or first class mail, provide information in written form, or otherwise references the use of paper, a writing, or the mail to convey information to a person, including to notify a person of any departmental actions related to a permit, license, identification card, endorsement, certificate, or vehicle registration, that requirement may be satisfied by electronic notification, including, but not limited to, email, if the all of the following are established by the department:

(1) The person has been identified by the department and has provided the department with an email address or other similar electronic address. For purposes of this section, a person who provides an electronic address to the department shall be deemed to have consented to the electronic delivery of documents or information from the department to that address.

(2) The department has informed the person that the department will use the electronic address provided to deliver a type of document or information electronically and that the person will not receive a separate paper copy by mail or other means.

(3) The department permits a person to withdraw their consent to electronically receive the type of document or information.

(4) The department records do not indicate the person withdrew their consent to electronically receive this type of document or information as of the date the document or information was electronically sent.

(b) For a provision of this code that refers to an address for any kind of notice or mailing, and mailing is effected pursuant to this section, an email or electronic delivery address provided to the department by the recipient may be used.

(c) A person who provides an electronic delivery address to the department shall notify the department of any change to that address.

(d) The department may adopt regulations to implement this section.

SEC. 14.

Section 1808.3 is added to the Vehicle Code, to read:

1808.3.

(a) The department may participate in the State-to-State Verification Service, or any successor system, operated by the American Association of Motor Vehicle Administrators (AAMVA), for the sole purpose of verifying and exchanging driver’s license, identification card, and driver history records with participating jurisdictions.

(b) (1) Information shared shall be limited to the minimum necessary for the purpose described in subdivision (a) and shall only include the following:

(A) True full name.

(B) Date of birth.

(ii) For purposes of this subparagraph, the minimum pointer information provided to the State-to-State Verification Service shall be the last five digits of the social security account number.

(iii) Consistent with the data limitation requirements set forth in subdivision (f) of Section 1653.5, a social security account number may only be shared for the sole purpose of verifying and exchanging driver’s license, identification card, and driver history records with participating jurisdictions.

(D) State of record.

(E) Driver’s license or identification card number.

(F) Credential type.

(G) REAL ID indicator.

(H) Commercial Driver’s License Information System indicator.

(I) Information necessary to verify and exchange driver history records, including, records of accidents, conviction, and withdrawals, information on driver’s license or permit class, endorsements, restrictions, and card issuance information.

(2) Unless otherwise required by federal law, the department shall not disclose any of the following information through the State-to-State Verification Service:

(A) Address.

(B) Photograph.

(D) Biometric data, including, but not limited to, fingerprints.

(E) Whether the individual holds a driver’s license or identification card issued pursuant to Section 12801.9.

(3) The department shall make publicly available on its internet website a list of the information shared with participating jurisdictions using the State-to-State Verification Service, including notice that the department will share an applicant’s prior true full names contained in its records.

(c) (1) The department shall prepare an annual report on its participation in the State-to-State Verification Service, or any successor system, annually provide the report to the budget and relevant policy committees of the Legislature, and publish the report on the department’s internet website.

(2) The report shall include all of the following:

(A) Each participating jurisdiction’s number of requests made directly to the state, and, to the extent available, disaggregated by the reason for requests made.

(B) Information on any unusual requests or patterns in the data that indicates a participating jurisdiction is utilizing the State-to-State Verification Service for unauthorized purposes.

(C) Information regarding any known and confirmed breach of contract by other participating jurisdictions, privacy or security breaches, material changes to the AAMVA policies for the State-to-State Verification Service that occur, or any known and confirmed suspension or termination of any state’s State-to-State Verification Service Agreement.

(3) The report shall be provided on or before February 1, 2028, and each February 1 thereafter. The report shall be provided without unreasonable delay, with consideration for operational, technical, or investigative needs, or other sensitive information.

(d) (1) The department shall adopt and maintain a State-to-State Verification Service Monitoring Plan to detect, prevent, and respond to requests for, or uses of, information through the State-to-State Verification Service by a participating jurisdiction for a purpose other than the purpose described in subdivision (a). The plan shall contain information on how the department will perform the following:

(A) Maintain and analyze audit logs of requests sent through or received from the State-to-State Verification Service.

(B) Review and investigate anomalous or irregular requests.

(C) Review of requests from participating jurisdictions based on risk factors or other information that reasonably indicates a potential use of the State-to-State Verification Service for a purpose other than the purpose described in subdivision (a).

(D) Limit, delay, or decline disclosure of information to a participating jurisdiction for anomalous or irregular requests.

(E) Limit, delay, or decline batch, bulk, list-based, pattern-based, automated, or exploratory requests from participating jurisdictions.

(F) Meet reporting requirements as described in subdivision (c).

(2) The department shall consult stakeholders to advise the department on the State-to-State Monitoring Plan. The advisory group shall meet on or before November 1, 2026, and twice annually thereafter, until July 1, 2030. The advisory group shall consist of the following appointees:

(A) A representative of the Department of Justice with knowledge of federal compliance.

(B) Three members appointed by the Senate Committee on Rules, who shall serve at the pleasure of the Senate Committee on Rules. These three members shall include an immigration rights advocate, a LGBTQ+ rights advocate, and a cybersecurity expert.

(C) Three members appointed by the Speaker of the Assembly, who shall serve at the pleasure of the Speaker. These three members shall include a privacy rights advocate, a reproductive rights advocate, and a civil rights expert.

(3) The advisory group shall serve until July 1, 2030, and as of that date shall be disbanded.

(4) The department shall provide the budget and relevant policy committees with a draft version of the plan by February 1, 2027, and a final plan by July 1, 2027.

(e) (1) If the department reasonably determines that a participating jurisdiction has requested or used information for a purpose other than the purpose described in subdivision (a), the department shall refer the matter to the Department of Justice.

(2) (A) If the department determines that a participating jurisdiction has requested or used information maintained in the department’s records and obtained through the State-to-State Verification Service for a purpose other than the purpose described in subdivision (a), the department shall notify the AAMVA, the Department of Justice, and each person whose record was the subject of the request or use without unreasonable delay, with consideration for operational, technical, or investigative needs, or other sensitive information, using the notice requirements pursuant to Section 1798.29 of the Civil Code.

(B) The notification shall include, but is not limited to, a description of the information that was disclosed, the time and date of the requests, and, if known, the department’s determination of the reason that a participating jurisdiction requested or used this information.

(f) The Attorney General may commence an action against the AAMVA, a participating jurisdiction, another individual or entity, or on behalf of a California resident whose information was the subject of a request unrelated to the sole purposes of the State-to-State Verification Service, to enforce the provisions of this section, including, but not limited to, an application or motion for an order enjoining ongoing or subsequent violations of this section. The Attorney General shall not commence an action pursuant to this subdivision unless the Attorney General has reason to believe the AAMVA or a participating jurisdiction intends to obtain or use information for any purpose other than verifying and exchanging driver’s license, identification card, and driver history records, as necessary, to comply with the REAL ID Act of 2005 (Public Law 109-13).

(g) (1) The department shall not participate in the State-to-State Verification Service unless the agreement with the AAMVA is consistent with this section. The department shall not agree to any amendment to the agreement with the AAMVA that reduces, conflicts with, delays, or waives, the privacy protections of California residents or the department’s ability to detect, prevent, and respond to requests for information by participating jurisdictions for a purpose other than the purpose described in subdivision (a). The department may only sign an agreement with the AAMVA, if the agreement contains all of the following terms:

(A) Requires the AAMVA to promptly provide notice to the department, if legally permitted, and work in good faith with the department in formulating a response to any requests, in the form of a subpoena or otherwise, from an entity that is not a participating jurisdiction to release, disclose, discuss, or obtain access to State-to-State Verification Service information or records.

(B) Requires participating jurisdictions to retain only the minimum necessary information that is needed for their governmental business purposes, and agree to securely destroy the remaining information that participating jurisdiction receives.

(C) Requires the AAMVA and participating jurisdictions to not share, sell, or otherwise make available information disclosed pursuant to this agreement, unless otherwise required by federal law.

(D) (i) The AAMVA shall immediately temporarily suspend a participating jurisdiction’s agreement if it determines that the participating jurisdiction has done either of the following:

(I) Incurred an unauthorized use of the State-to-State Verification Service.

(II) Violated or failed to comply with the terms of its agreement with the AAMVA.

(ii) The AAMVA shall also immediately temporarily suspend a participating jurisdiction’s agreement if the suspension is required to protect the integrity of the State-to-State Verification Service.

(E) Participating jurisdictions agree to restrict access to the State-to-State Verification Service to only their authorized state employees, agents, representatives, or contractors who need it to perform their official duties in connection with the intended use of the State-to-State Verification Service and to audit user access to the State-to-State Verification Service.

(F) Participating jurisdictions agree to retain the information for the minimum amount of time necessary, or 14 days, whichever is shorter, and retain only the minimum information that is needed for the sole purposes of this section.

(2) The department shall make publicly available on its internet website all contractual agreements with the AAMVA and other documents as necessary with consideration for privacy and security related to the State-to-State Verification Service.

(3) Any material new or modified contract or agreement governing the use, retention, or collection of data, including, but not limited to, the data elements shared with the AAMVA, shall be consistent with the authority provided in this section and any other applicable provision of state law. Prior to execution, the department shall provide at least 30 days advance written notice of any material new or modified contract or agreement subject to this subdivision to the appropriate policy and fiscal committees of the Legislature and the Joint Legislative Budget Committee.

(h) By no later than January 1, 2030, the California State Auditor shall conduct an audit of the department’s compliance with this section. In determining the timing of the audit before that date, the California State Auditor shall allow a reasonable period after the program becomes operational to support the initial program implementation and the accumulation of sufficient information for review. This section does not prohibit the auditor from initiating an audit requested by the Legislature through the Joint Legislative Audit Committee.

SEC. 15.

Section 4450 of the Vehicle Code is amended to read:

4450.

(a) The department upon registering a vehicle shall issue a certificate of ownership to the legal owner and a registration card to the owner, or both to the owner if there is no legal owner of the vehicle.

(b) The department may adopt regulations for the issuance and acceptance of a “certificate of title” or “certificate of ownership” in an electronic form.

SEC. 16.

Section 9270 of the Vehicle Code is repealed.

SEC. 17.

Section 12814 of the Vehicle Code is amended to read:

12814.

(a) Application for renewal of a license shall be made at an office of the department by the person to whom the license was issued. The department may, in its discretion, require an examination of the applicant as upon an original application, an examination deemed by the department to be appropriate considering the licensee’s record of convictions and accidents, or an examination deemed by the department to be appropriate in relation to evidence of a condition that may affect the ability of the applicant to safely operate a motor vehicle. The age of a licensee, by itself, may not constitute evidence of a condition requiring an examination of the driving ability. If the department finds any evidence, the department shall disclose the evidence to the applicant or licensee. If the person is absent from the state at the time the license expires, the director may extend the license for a period of one year from the expiration date of the license.

(b) Renewal of a driver’s license shall be under terms and conditions prescribed by the department.

(c) The department may adopt and administer those regulations as shall be deemed necessary for the public safety in the implementation of a program of selective testing of applicants, and, with reference to this section, the department may waive tests for purposes of evaluation of selective testing procedures.

SEC. 18.

Section 13020 of the Vehicle Code is amended to read:

13020.

(a) The department may establish a pilot program to evaluate the use of optional mobile or digital alternatives to driver’s licenses and identification cards, subject to all of the following requirements:

(1) A pilot program established by the department pursuant to this subdivision shall be limited to both of the following:

(A) Persons who have voluntarily chosen to participate in the pilot program.

(B) No more than 60 percent of licensed drivers for the purpose of evaluation.

(2) A participant in a pilot program established by the department pursuant to this subdivision may terminate their participation in the pilot program at any time and may, upon termination, request the deletion of any data associated with their participation in the program. Within 10 days of any such request, the department and all entities contracted with the department for the purpose of effectuating the pilot program shall delete all data collected or maintained pursuant to the participant’s participation in the program.

(3) All participants shall receive both a physical and, if requested, an immutable and unique driver’s license or identification card.

(b) In developing and implementing the use of digital driver’s licenses and identification cards, the department shall ensure the protection of personal information and include security features that protect against unauthorized access to information, including, but not limited to, all of the following:

(1) Ensuring that remote access to the digital driver’s license or identification card shall require the express, affirmative, real-time consent of the person whose digital driver’s license or identification card is being requested for each piece of information being requested and shall be limited to only the information that is provided on a physical driver’s license or identification card.

(2) Ensuring that the digital driver’s license or identification card, as well as any mobile application required for the digital driver’s license or identification card, shall not contain or collect any information not strictly necessary for the functioning of the digital driver’s license, identification card, or mobile application, including, but not limited to, information relating to movement or location.

(3) Ensuring that the information transmitted to the digital driver’s license or identification card, as well as any mobile application required for the digital driver’s license or identification card, is encrypted and protected to the highest reasonable security standards broadly available, including ISO-18013-5, FIPS 140-3, and NIST 800-53 Moderate, and cannot be intercepted while being transmitted from the department.

(c) (1) In the conduct of a pilot program established pursuant to this section, any data exchanged between the department and an electronic device, between the department and the provider of an electronic device, and between an electronic device and the provider of that electronic device shall be limited to those data necessary to display the information necessary for a driver’s license or identification card.

(2) An entity contracted with the department for this purpose shall not use, share, sell, or disclose any information obtained as part of this contract, including, but not limited to, information about the holder of a digital driver’s license or identification card, except as is necessary to satisfy the terms of the contract. Upon termination or expiration of a contract entered into for this purpose, the contracting entity shall delete any data collected or generated in the course of activities pursuant to the contract within 30 days.

(d) (1) The holder of a digital driver’s license or identification card shall not be required to turn over their electronic device to any person or entity in order to use the digital driver’s license or identification card for identity verification.

(2) The holder of a digital driver’s license or identification card showing or turning over their electronic device to any person or entity in order to use the digital driver’s license or identification card for identity verification shall not constitute consent to a search nor shall it constitute consent for access to any information other than that which is immediately available on the digital driver’s license or identification card. Information incidentally obtained in the process of viewing a digital driver’s license or identification card in order to verify the identity of the holder shall not be used to establish probable cause for a warrant to search the electronic device.

(3) A request for remote access to their digital driver’s license or identification card for identity verification shall require the express consent of the holder of the digital driver’s license or identification card shall be limited to the content of the digital driver’s license or identification card specified in the request for remote access and shall not exceed the information available on a physical driver’s license or identification card.

(4) Consent to remote access to a digital driver’s license or identification card by the holder shall not constitute consent to a search nor shall it constitute consent for access to information other than that which is immediately available on the digital driver’s license or identification card. Information incidentally obtained in the process of remotely accessing a digital driver’s license or identification card shall not be used to establish probable cause for a warrant to search the electronic device.

(e) (1) A participant in a pilot program established by the department pursuant to this section shall not be required to use a digital driver’s license or identification card rather than a physical driver’s license or identification card for the purpose of identity verification nor shall their participation in the pilot program preclude their use of a physical driver’s license or identification card under any circumstances.

(2) A person or entity shall not provide preferential service based on a person’s use of a digital driver’s license or identification card rather than a physical driver’s license or identification card.

(f) The pilot program may include the issuance of mobile or digital Real ID driver’s license or identification cards upon authorization of the United States Secretary of Homeland Security.

(g) If the department establishes the pilot program authorized in subdivision (a), the department shall, no later than July 1, 2026, submit a report regarding the pilot program to the Legislature, in compliance with Section 9795 of the Government Code, that includes, but is not limited to, all of the following:

(1) A review of all products evaluated in the pilot program and of the features of those products. The report shall note any security features to protect against unauthorized access to information.

(2) Lessons learned from the pilot program with regards to the utility of a mobile driver’s license program or risks and solutions related to the implementation of a mobile driver’s license program.

(3) Recommendations for subsequent actions, if any, that should be taken with regard to alternative options for digital driver’s licenses or identification cards evaluated in the pilot program.

(4) An estimate of the fiscal impact of the deployment of a mobile driver’s license program, including the estimated impact to the Motor Vehicle Account established pursuant to Section 42271.

(h) As part of the 2022–23 budget, the department shall report to the Legislature on the status of the pilot program, including, but not limited to, all of the following:

(1) The scope of the pilot program, including pilot program goals and processes.

(2) The timeline for the pilot program.

(3) The fiscal impact of the pilot program.

SEC. 19.

Section 21655.10 of the Vehicle Code is amended to read:

21655.10.

(a) The department and local authorities, with respect to highways under their respective jurisdictions, may authorize or temporarily permit exclusive or preferential use of high-occupancy vehicle lanes, high-occupancy toll lanes, and other lanes, regardless of the number of passengers in the vehicle, for the games route network if the vehicle displays a distinctive decal, label, or other identifier issued by the organizers of the 2028 Olympic and Paralympic Games that clearly distinguishes the vehicle is being operated on the games route network during a 2028 Olympic and Paralympic Games period. A person shall not drive a vehicle upon those lanes except in conformity with the instructions imparted by the official traffic control devices. Exclusive or preferential use of those lanes shall not exclude authorized emergency vehicles as defined by Section 165, or public transit.

(b) The design of the decal, label, or other identifier issued by the 2028 Olympic and Paralympic Games organizers shall be approved by the department, in collaboration with the Department of the California Highway Patrol, and shall display a serial number or identification number to verify that the decal, label, or other identifier is being used on the vehicle for which it is issued.

(1) “Automated enforcement system” means any combination of cameras, sensors, mobile applications, or other technology used to identify and cite violations of subdivision (a). An automated enforcement system does not include video cameras that continuously capture video footage of the roadways. An automated enforcement system may include personnel.

(2) “Department” means the Department of Transportation.

(3) “Games route network” means dedicated traffic lanes for travel used during the 2028 Olympic and Paralympic Games period, as identified by the department or a local authority, in consultation with the 2028 Olympic and Paralympic Games organizers.

(4) “2028 Olympic and Paralympic Games period” means the days identified by the department for which the games route network shall be operable.

(5) “Program operator” means a local authority or regional transportation agency administering the automated enforcement system pursuant to an agreement authorized by this section.

(6) “Regional transportation agency” has the same meaning as subdivision (k) of Section 149.7 of the Streets and Highways Code.

(d) The department, on highways in its jurisdiction, in consultation with state, local, and regional authorities and other relevant stakeholders, may establish a program for automated enforcement of drivers of vehicles that fail to obey the directions of a traffic control device establishing the games route network pursuant to subdivision (a) during the 2028 Olympic and Paralympic Games period.

(e) (1) A program operator shall administer a public information campaign at least 120 calendar days before implementation of an automated enforcement system pursuant to this section.

(2) (A) Following the public information campaign described in paragraph (1), the program operator shall use automated enforcement systems to issue a warning letter to users of the games route network lanes for at least 30 days, unless the department determines a longer period is appropriate. A warning letter shall include the following information:

(i) The dates of the 2028 Olympic and Paralympic Games period.

(ii) Restrictions on the use of the games route network during the 2028 Olympic and Paralympic Games period.

(iii) A statement that an automated enforcement system will be used to issue notices of violation for improper use of the games route network and the date that issuance of notices of violations will commence.

(iv) The amount of the civil penalty to be assessed for improper use of the games route network.

(B) Multiple warning letters may be issued to the registered owner of a vehicle during the warning period.

(f) The program operator shall provide signage clearly identifying the presence of the automated enforcement on signs approved by the department. The signs shall be visible to traffic traveling on the highway from the direction of travel for which the automated enforcement system is used and shall be posted at locations as may be determined necessary by the department after consultation with the California Traffic Control Devices Committee.

(g) The automated enforcement system cameras, to the extent feasible, shall be angled and focused so as to only capture images of the rear license plate and a decal, label, or other identifier as described in subdivision (b). Images shall not capture identifying images of the driver, passengers, pedestrians, or other vehicles and their drivers. Any identifying images captured beyond the rear license plate, the rear of the car below the back windshield, and the decal, label, or other identifier described in subdivision (b) shall be blurred and rendered unrecognizable.

(h) The development and adoption of an automated enforcement program pursuant to this section is exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).

(i) (1) The photographic evidence stored by an automated enforcement system operated pursuant to this section shall not constitute an out-of-court hearsay statement by a declarant under Division 10 (commencing with Section 1200) of the Evidence Code.

(2) Notwithstanding any provision of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), or any other law, any photographic image or administrative record made by an automated enforcement system operated pursuant to this section is confidential. The program operator shall use and allow access to these records only for the purposes authorized by this section. Data about the number of violations issued is not considered an administrative record prohibited from disclosure by this section and is subject to disclosure under applicable law.

(3) Notwithstanding any provision of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), or any other law, information obtained from the Department of Motor Vehicles for the administration and enforcement of this section is confidential and shall not be used for any other purpose. A program operator and its contractors or agents shall establish procedures to protect the confidentiality of these records consistent with Section 1808.47. To the extent a high-occupancy toll lane is included in the games route network during the 2028 Olympic and Paralympic Games period, this section shall control the use, storage, and disclosure of all data or personally identifiable information collected for administration and enforcement. Section 31490 of the Streets and Highways Code shall not apply to any data or personally identifiable information collected for administration or enforcement pursuant to this section.

(4) Except for court records described in Section 68152 of the Government Code, or as provided in paragraph (5), photographic images, administrative records, and confidential information described in paragraphs (2) and (3) may be retained by the program operator for up to 30 days after final disposition of the notice of violation, after which time the information shall be destroyed. Notwithstanding any other law, the confidential records and evidence shall be destroyed in a manner that maintains the confidentiality of any person included in the record or evidence.

(5) Photographic evidence that is obtained from an automated enforcement system that does not result in the issuance of a notice of violation shall be destroyed within five business days after the image was first taken. The use of facial recognition technology in conjunction with an automated enforcement system shall be prohibited.

(6) Information collected and maintained by the program operator shall only be used to administer the automated enforcement program and shall not be disclosed to any other persons, including, but not limited to, any other federal, state, or local governmental agency or official for any other purpose, except as required by a court order, or in response to a search warrant in an individual case or proceeding. These records shall not be used in conjunction with biometric identifying technology, including, but not limited to, facial recognition technology that identifies specific individuals.

(j) The registered owner or an individual identified by the registered owner as the driver of the vehicle at the time of the alleged violation shall be permitted to review and obtain a copy of the photograph of the alleged violation.

(k) (1) The department may enter into an agreement with a local authority or a regional transportation agency to administer a program pursuant to this section and become the program operator. The agreement shall include a provision that all data collected from the automated enforcement system is confidential and shall prohibit the regional transportation agency from sharing, repurposing, or monetizing collected data, except as specifically authorized in this section. Nothing in this section shall be construed to alter or supersede the authority of a regional transportation agency over toll collection, toll enforcement, or ExpressLanes operations authorized pursuant to other laws or agreements. The agreement shall address which entity will maintain control and have the final decisionmaking authority over all enforcement activities, including the determination of when a notice of violation should be issued.

(2) The development, implementation, and operation of all aspects of an automated enforcement system pursuant to this section, including, but not limited to, distribution of revenue, operating conditions, and enforcement, shall be subject to subdivision (r) and the agreement between the department or program operator and the regional transportation agency.

(l) A program operator may enter into contracts with manufacturers or suppliers of automated enforcement systems to purchase or lease materials or equipment. However, any contract pursuant to this subdivision shall allow the program operator to purchase or lease equipment and materials based on services rendered at intervals agreed to by the program operator and contractor. The contract shall not allow for payment or compensation based on the number of notices of violation issued by the automated enforcement system or based on a percentage of revenue generated from the use of the system. The contract shall include a provision that all data collected from the automated enforcement system is confidential and shall prohibit the contractor from sharing, repurposing, or monetizing collected data. The program operator shall oversee, maintain control, and have the final decision over all enforcement activities, including the determination of when a notice of violation should be issued.

(m) The program operator may contract with a vendor for the processing of notices of violation. The vendor shall be a separate legal and corporate entity from, and not related to, or affiliated in any manner with, the manufacturer or supplier of automated enforcement systems used by the program operator. Any contract between the program operator and a vendor to provide processing services may include a provision for the payment of compensation based on the number of notices of violation processed by the vendor.

(n) Notwithstanding any other law, a violation of subdivision (a) that is recorded by an automated enforcement system shall be subject only to a civil penalty and shall not result in the Department of Motor Vehicles suspending or revoking driving privileges, preventing registration renewals, or assessing violation points against driving records.

(o) (1) A civil penalty of two hundred ninety-three dollars ($293) shall be assessed for a violation of subdivision (a).

(2) A civil penalty shall not be assessed against authorized emergency vehicles or public transit vehicles.

(p) A notice of violation shall be in writing and issued to the registered owner of the vehicle within 15 calendar days of the date of the violation. The notice of violation shall include all of the following information:

(1) The violation, including reference to the law that was violated.

(2) A clear image of the license plate and rear of the vehicle. Notices of violation shall exclude images of the rear window area of the vehicle.

(3) The date, approximate time, and location of the violation.

(4) The vehicle license plate number and the name and address of the registered owner of the vehicle.

(5) A statement that payment is required to be made no later than 30 calendar days from the date of mailing of the notice of violation.

(6) The amount of the civil penalty and the procedures for payment.

(7) A statement that the violation may be contested and the procedures for contesting the violation.

(8) An affidavit of nonliability, an explanation of what constitutes nonliability and the effect of executing the affidavit, and instructions for returning the affidavit to the processor. If an affidavit of nonliability is returned to the processing agency within 30 calendar days of the mailing of the notice of violation, together with proof of a written lease or rental agreement between a bona fide rental company, as defined in Section 1939.01 of the Civil Code, or a personal vehicle sharing program, as defined in Section 11580.24 of the Insurance Code, and its customer that identifies the renter or lessee, the processing agency shall serve or mail a notice of violation to the renter or lessee identified in the affidavit of nonliability. If the affidavit of nonliability is returned to the processing agency within 30 calendar days of the mailing of the notice of violation, together with proof of a copy of a police report indicating the vehicle had been stolen at the time of the violation, the processing agency shall not subject the registered owner to a violation or penalty pursuant to this section.

(9) A proof of service consistent with Section 1013a of the Code of Civil Procedure.

(q) (1) A civil penalty imposed under this section is separate and independent from any enforcement action taken by a peace officer under this code. The issuance of a notice of violation under this section does not preclude a peace officer from issuing a citation for a violation arising from the same conduct.

(2) To avoid duplicative monetary sanctions, a person shall not be required to pay more than one monetary penalty for the same underlying act. If a citation issued by a peace officer results in a final judgment, any civil penalty issued for the same act shall be dismissed and no civil penalty shall be collected.

(r) (1) Moneys generated from automated enforcement violations pursuant to this section shall be deposited into the Games Route Network Account, which is hereby created in the State Transportation Fund. Moneys received in the account shall be continuously appropriated and made available for the following purposes:

(A) To support the administration of the automated enforcement system for the games route network.

(B) To be transferred to the State Highway Account or the Motor Vehicle Account to cover the department’s costs for the construction, maintenance, and deconstruction of the games route network or to cover the Department of the California Highway Patrol’s costs for enforcement efforts related to the games route network.

(2) Any transfers from the Games Route Network Account to the State Highway Account or the Motor Vehicle Account shall be approved by the Department of Finance and are exempt from the requirements described in Section 183.1 of the Streets and Highways Code.

(s) (1) No later than 30 calendar days from the date of mailing of a notice of violation, the recipient may request an initial review of the notice by the program operator. The request may be made by telephone, in writing, electronically, or in person. There shall be no charge for this review. If, following the initial review, the program operator is satisfied that the violation did not occur, or that extenuating circumstances make cancellation of the notice of violation appropriate in the interest of justice, the program operator shall cancel the notice of violation. The program operator shall mail the results of the initial review to the person contesting the notice within 60 days of receipt of the recipient’s request for an initial review, and, if cancellation of the notice does not occur following that review, include a reason for that denial, notification of the ability to request an administrative hearing, and notice of the procedures adopted by the program operator for the administrative hearing, including for waiving prepayment of the civil penalty based upon an inability to pay.

(2) If the person contesting the notice of violation is dissatisfied with the results of the initial review conducted by the program operator, the person may, no later than 21 calendar days following the mailing of the results of the initial review, request an administrative hearing of the violation. The request may be made by telephone, in writing, electronically, or in person.

(3) The person requesting an administrative hearing shall pay the amount of the civil penalty to the program operator. There shall be no additional charge for this hearing. The program operator shall adopt a written procedure to allow a person to request an administrative hearing without payment of the civil penalty upon satisfactory proof of an inability to pay the amount due.

(4) The administrative hearing shall be held within 90 calendar days following the receipt of a request for an administrative hearing. The person requesting the hearing may request one continuance, not to exceed 21 calendar days.

(t) The administrative hearing process shall include all of the following:

(1) The person requesting a hearing shall have the choice of a hearing upon written declaration, video conference, or in person. An in-person hearing shall be conducted within the department district where the citation was issued.

(2) If the person requesting a hearing is an unemancipated minor, that person shall be permitted to appear at a hearing or admit responsibility for the automated enforcement violation without the appointment of a guardian. The program operator may proceed against the minor in the same manner as against an adult.

(3) The administrative hearing shall be conducted in accordance with written procedures established by the program operator. The hearing shall provide an independent, objective, fair, and impartial review of contested automated enforcement violations.

(4) (A) The program operator shall appoint or contract with qualified independent examiners or administrative hearing providers that employ qualified independent examiners to conduct the administrative hearings. Examiners shall demonstrate the qualifications, training, and objectivity necessary to conduct a fair and impartial review, and shall meet the minimum requirements specified in subparagraph (B). The examiner shall not be involved with the initial issuance of the notice of violation or the processing functions of that violation. An examiner’s continued employment, performance evaluation, compensation, and benefits shall not, directly or indirectly, be linked to the amount of civil penalties upheld by the examiner or the number or percentage of violations upheld by the examiner.

(B) (i) Examiners shall have a minimum of 20 hours of training. The examiner, unless an employee of the program operator, is responsible for the costs of the training. The program operator may reimburse the examiner for those costs. Training may be provided through any of the following:

(I) An accredited college or university.

(II) A program conducted by the Commission on Peace Officer Standards and Training.

(III) A program conducted by the American Arbitration Association or a similar organization.

(IV) Any program approved by the program operator, including a program developed and provided by, or for, the program operator.

(ii) Training programs shall include topics relevant to the administrative hearing, including, but not limited to, applicable laws and regulations, enforcement procedures, due process, evaluation of evidence, hearing procedures, and effective oral and written communication. Upon the approval of the program operator, up to 12 hours of relevant experience may be substituted for up to 12 hours of training. Up to eight hours of the training requirements described in this subparagraph may be credited to an individual, at the discretion of the program operator, based upon training programs or courses described in this subparagraph that the individual attended within the last five years.

(5) The individual who issued a notice of violation shall not be required to participate in the administrative hearing. To establish a violation, the program operator shall not be required to produce any evidence other than, in proper form, the notice of violation or copy thereof, including the photograph of the vehicle’s license plate, and information received from the Department of Motor Vehicles identifying the registered owner of the vehicle. The documentation in proper form shall be prima facie evidence of the violation. If the program operator meets its initial burden, the recipient of the notice of violation may present any evidence and argument in defense.

(6) The examiner’s final decision following the administrative hearing may be personally delivered to the person by the examiner or sent by first-class mail within 60 days of the date of the conclusion of the administrative hearing.

(7) Following a determination by the examiner that a person has committed the violation, the examiner or the program operator shall offer to offenders who otherwise provide evidence satisfactory to the examiner or the program operator of an inability to pay the civil penalty in full in one installment, the option to pay applicable fines and penalties over a period of time under a payment plan with monthly installments not to exceed fifty dollars ($50). Any processing fee to participate in a payment plan shall not exceed five dollars ($5).

(8) If a notice of violation is dismissed following an administrative hearing, any civil penalty, if paid, shall be refunded by the program operator within 30 days.

(u) (1) Within 30 days after personal delivery or mailing of the final decision, the contestant may seek review by filing an appeal to the superior court, where the case shall be heard de novo, except that the contents of the program operator’s file in the case on appeal shall be lodged by the program operator at its expense and shall be received into evidence. A copy of the notice of violation shall be admitted into evidence as prima facie evidence of the facts stated in the notice. A copy of the notice of appeal shall be served in person or by certified first-class mail with return receipt upon the program operator by the appellant. For purposes of computing the 30-day period, Section 1013 of the Code of Civil Procedure shall be applicable. A proceeding under this subdivision is a limited civil case.

(2) The fee for filing the notice of appeal shall be as provided in Section 70615 of the Government Code. Upon receipt of the notice of appeal, the program operator shall lodge its administrative record for the case with the court within 15 calendar days. The court shall notify the appellant of the appearance date by mail or personal delivery. The court shall retain the fee under Section 70615 of the Government Code regardless of the outcome of the appeal. If the appellant prevails, this fee and any payment of the civil penalty shall be promptly refunded by the program operator in accordance with the judgment of the court.

(3) The conduct of the hearing on appeal under this section is a subordinate judicial duty that may be performed by a commissioner or other subordinate judicial officer at the direction of the presiding judge of the court.

(4) If a notice of appeal of the examiner’s decision is not filed within the period set forth in paragraph (1), the decision shall be deemed final.

(5) If the civil penalty has not been paid and the final decision is adverse to the appellant, the program operator may, promptly after the decision becomes final, proceed to collect the civil penalty.

(v) (1) The program operator shall allow offenders who qualify for a reduced penalty pursuant to paragraph (2) to pay fines and penalties under this section over a period of time under a payment plan with monthly installments of no more than twenty-five dollars ($25) and shall limit any processing fee to participate in the payment plan to five dollars ($5) or less.

(2) The program operator shall reduce fines and penalties under this section by 80 percent for indigent persons and by 50 percent for individuals with incomes that do not exceed 250 percent of the official federal poverty line.

(3) A person may demonstrate that they are indigent or have an income that does not exceed 250 percent of the official federal poverty line by providing either of the following information, as applicable:

(A) Proof of income from a pay stub or another document showing proof of earnings, including, but not limited to, a bank statement that shows the person meets the income criteria set forth in subdivision (b) of Section 68632 of the Government Code, subject to review and approval by the program operator or its designee. The program operator or its designee shall not unreasonably withhold its approval.

(B) Proof of receipt of benefits under the programs described in subdivision (a) of Section 68632 of the Government Code, including, but not limited to, an electronic benefits transfer card or another card, subject to review and approval by the program operator. The program operator or its designee shall not unreasonably withhold its approval.

(w) Each program operator that is not the department shall report information to the department, as it requests, to conduct an evaluation of the program.

(x) This section shall remain in effect only until January 1, 2029, and as of that date is repealed.

SEC. 20.

Section 22511.55 of the Vehicle Code is amended to read:

22511.55.

(a) (1) A disabled person or disabled veteran may apply to the department for the issuance of a distinguishing placard. The placard may be used in lieu of the special license plate or plates issued under Section 5007 for parking purposes described in Section 22511.5 when (A) suspended from the rearview mirror, (B) if there is no rearview mirror, when displayed on the dashboard of a vehicle, or (C) inserted in a clip designated for a distinguishing placard and installed by the manufacturer on the driver’s side of the front window. It is the intent of the Legislature to encourage the use of distinguishing placards because they provide law enforcement officers with a more readily recognizable symbol for distinguishing vehicles qualified for the parking privilege. The placard shall be the size, shape, and color determined by the department and shall bear the International Symbol of Access adopted pursuant to Section 3 of Public Law 100-641, commonly known as the “wheelchair symbol.” The department shall incorporate instructions for the lawful use of a placard, and a summary of the penalties for the unlawful use of a placard, into the identification card issued to the placard owner.

(2) (A) The department may establish procedures for the issuance and renewal of the placards. The procedures shall include, but are not limited to, advising an applicant for a placard of the procedure to apply for a special license plate or plates, as described in Section 5007, and the fee exemptions established pursuant to Section 9105 and in subdivision (a) of Section 10783 of the Revenue and Taxation Code. The placards shall have a fixed expiration date of June 30 every two years.

(B) As used in this section, “year” means the period between the inclusive dates of July 1 through June 30.

(C) Prior to the end of each year, the department shall, for the most current three years available, compare its record of disability placards issued against the records of the Office of Vital Records of the State Department of Public Health, or its successor, and a nationwide vital statistics clearinghouse, and withhold any renewal notices or placards that otherwise would have been issued for a placardholder identified as deceased.

(D) The department shall, six years after the first issuance of a placard and every six years thereafter, send the placardholder a renewal form at least 90 days prior to the June 30 expiration date of the current placard. Certification of medical disability and proof of true full name is not required for the renewal. A placardholder who wishes to renew a placard shall fill out the form and submit it to the department prior to expiration of the current placard.

(3) Except as provided in paragraph (4), a person shall not be eligible for more than one placard at a time.

(4) Organizations and agencies involved in the transportation of disabled persons or disabled veterans may apply for a placard for each vehicle used for the purpose of transporting disabled persons or disabled veterans.

(5) The department shall require a person who applies for a placard pursuant to this section to provide proof of the person’s true full name and date of birth that shall be established by submitting one of the following to the department:

(A) A copy or facsimile of the applicant’s state issued driver’s license or identification card.

(B) A copy or facsimile of the document required for an applicant for a driver’s license or identification card to establish the applicant’s true full name.

(C) An applicant unable to establish legal presence in the United States may fulfill the true full name and date of birth requirement by providing the department a copy or facsimile of the documents used to establish identity pursuant to Section 12801.9.

(b) (1) Except as provided in paragraph (4), prior to issuing an original distinguishing placard to a disabled person or disabled veteran, the department shall require the submission of a certificate, in accordance with paragraph (2), signed by the physician and surgeon, or to the extent that it does not cause a reduction in the receipt of federal aid highway funds, by a nurse practitioner, certified nurse-midwife, or physician assistant, substantiating the disability, unless the applicant’s disability is readily observable and uncontested. The disability of a person who has lost, or has lost use of, one or more lower extremities or one hand, for a disabled veteran, or both hands, for a disabled person, or who has significant limitation in the use of lower extremities, may also be certified by a licensed chiropractor. The disability of a person related to the foot or ankle may be certified by a licensed podiatrist. The blindness of an applicant shall be certified by a licensed physician and surgeon who specializes in diseases of the eye or a licensed optometrist. The physician and surgeon, nurse practitioner, certified nurse-midwife, physician assistant, chiropractor, or optometrist certifying the qualifying disability shall provide a full description of the illness or disability on the form submitted to the department.

(2) The physician and surgeon, nurse practitioner, certified nurse midwife, physician assistant, chiropractor, podiatrist, or optometrist who signs a certificate submitted under this subdivision shall retain information sufficient to substantiate that certificate and, upon request of the department, shall make that information available for inspection by the Medical Board of California or the appropriate regulatory board.

(3) The department shall maintain in its records all information on an applicant’s certification of permanent disability and shall make that information available to eligible law enforcement or parking control agencies upon a request pursuant to Section 22511.58.

(4) For a disabled veteran, the department shall accept, in lieu of the certificate described in paragraph (1), a certificate from a county veterans service officer, the Department of Veterans Affairs, or the United States Department of Veterans Affairs that certifies that the applicant is a disabled veteran as described in Section 295.7.

(c) A person who is issued a distinguishing placard pursuant to subdivision (a) may apply to the department for a substitute placard without recertification of eligibility, if that placard is lost or stolen. The department shall not issue a substitute placard to a person more than four times in a two-year renewal period. A person who requires a substitute placard in excess of the four replacements authorized pursuant to this subdivision shall reapply to the department for a new placard and submit a new certificate of disability as described in subdivision (b).

(d) The distinguishing placard shall be returned to the department not later than 60 days after the death of the disabled person or disabled veteran to whom the placard was issued.

(e) The department shall print on any distinguishing placard issued on or after January 1, 2005, the maximum penalty that may be imposed for a violation of Section 4461. For purposes of this subdivision, the “maximum penalty” is the amount derived from adding all of the following:

(1) The maximum fine that may be imposed under Section 4461.

(2) The penalty required to be imposed under Section 70372 of the Government Code.

(3) The penalty required to be levied under Section 76000 of the Government Code.

(4) The penalty required to be levied under Section 1464 of the Penal Code.

(5) The surcharge required to be levied under Section 1465.7 of the Penal Code.

(6) The penalty authorized to be imposed under Section 4461.3.

SEC. 21.

The Legislature finds and declares that Sections 6 and 7 of this act, which add Sections 187035 and 187037 to the Public Utilities Code, impose a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:

Keeping certain records and reports of the High-Speed Rail Authority Inspector General confidential is necessary to enable the Inspector General to fully conduct audits and investigations and may be necessary, under certain circumstances, to ensure the security of the high-speed rail project. Under these circumstances, keeping these records and reports confidential outweighs the interest in public disclosure of the information contained in these records and reports.

SEC. 22.

The Legislature finds and declares that Section 19 of this act, which amends Section 21655.10 of the Vehicle Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:

In order to protect the individual privacy rights of those individuals depicted in images generated by automated enforcement systems, it is necessary that this act limit the public’s right of access to images and administrative records related to notices of violations issued by automated enforcement systems on the games route network.

SEC. 23.

This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.