Bill Text: CA AB149 | 2021-2022 | Regular Session | Enrolled

California Assembly Bill 149 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Transportation.

Spectrum: Committee Bill

Status: (Passed) 2021-07-16 - Chaptered by Secretary of State - Chapter 81, Statutes of 2021. [AB149 Detail]

Download: California-2021-AB149-Enrolled.html

Enrolled July 01, 2021

Passed IN Senate July 01, 2021

Passed IN Assembly July 01, 2021

Amended IN Senate June 27, 2021

Amended IN Assembly February 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 149

Introduced by Committee on Budget (Assembly Members Ting (Chair), Arambula, Bennett, Bloom, Carrillo, Chiu, Cooper, Frazier, Friedman, Cristina Garcia, Jones-Sawyer, Lee, McCarty, Medina, Mullin, Nazarian, O’Donnell, Ramos, Reyes, Luz Rivas, Blanca Rubio, Stone, and Wood)

January 08, 2021

An act to add Chapter 13 (commencing with Section 1950) to Division 2 of the Fish and Game Code, to amend Section 13979.2 of the Government Code, to amend Section 75230 of the Public Resources Code, to amend Sections 99244, 99268.9, 99268.17, 99268.19, 99312.1, 99314.6, 99314.10, and 99405 of, and to add and repeal Sections 99246.5, 99268.20, and 99314.11 of, the Public Utilities Code, to amend Sections 114.5 and 2036 of, to add Sections 91.41, 91.42, and 91.43 to, and to add and repeal Section 91.4 of, the Streets and Highways Code, and to add Article 6 (commencing with Section 13020) to Chapter 1 of Division 6 of the Vehicle Code, relating to transportation, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL'S DIGEST

AB 149, Committee on Budget. Transportation.

(1) The Wildlife Conservation Law of 1947 establishes the Wildlife Conservation Board in the Department of Fish and Wildlife and permits the board to authorize the acquisition of real property, rights in real property, water, or water rights for wildlife conservation purposes. Existing law requires the department, when authorized by the board, to construct facilities that are suitable for the purpose for which the real property or rights in real property or water, or water rights were acquired.

This bill would authorize the board to name a nonvehicular wildlife crossing, which the bill would define as a structure that allows animals to cross human-made barriers safely, if at least 25% of the funding to construct the crossing derives from a state source. The bill would require the board to consult with the Department of Transportation or other appropriate entities on the design of lettering and placement of any sign that displays the name of a nonvehicular wildlife crossing. The bill would authorize the board to adopt criteria to implement these provisions.

(2) Existing law authorizes the Secretary of Transportation to assume the responsibilities of the United States Secretary of Transportation under the federal National Environmental Policy Act of 1969 and other federal environmental laws for any railroad, public transportation, or multimodal project undertaken by state agencies, as specified. Existing law provides that the State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of these responsibilities. Existing law repeals these provisions on January 1, 2022.

This bill would extend the operation of these provisions until January 1, 2025.

(3) Existing law provides for the allocation of revenues from various charges to transit operators and local transportation agencies that meet specified requirements, including, as applicable, requirements related to operating costs, fare box ratios, and revenues, as specified. Existing law excludes certain costs, including startup costs for new services, from the definition of “operating costs” for those and related purposes. Existing law exempts those entities, for fiscal years 2019–20, 2020–21, and 2021–22, as specified, from penalties or other provisions that would reduce the amount of revenues allocated as a result of failing to meet those requirements.

This bill would exclude additional specified costs from the definition of “operating costs” for those purposes. The bill would extend those entities’ exemptions through the 2022–23 fiscal year, as specified. The bill, until July 1, 2026, would exempt from specified requirements related to fare box ratios and eligibility standards an operator for a fiscal year in which the operator expended from local funding, as defined, an amount for transit operations not less than the amount the operator expended from local funding for transit operations during the 2018–19 fiscal year. The bill would require the Department of Transportation, on or before November 30, 2025, to submit a report to the Legislature on the revenue vehicle hours, ridership, and passenger mile impacts on the services offered by these exempted operators. The bill, for purposes of meeting certain ratios of fare revenues to operating costs, would authorize an operator to calculate all free and reduced transit fares at their current full retail value, and to include federal grant funds as local funds for those purposes.

(4) Existing law requires transportation planning agencies, county transportation commissions, transit development boards, and operators to triennially undergo performance audits to evaluate their efficiency, effectiveness, and economy of operation.

This bill would require the Department of Transportation, in consultation with transportation planning agencies, county transportation commissions, and transit development boards, on or before November 30, 2021, to review the requirements for, and submit a report to the Legislature on, those performance audits to identify opportunities for streamlining and to make them more effective.

(5) The Vehicle License Fee Law, in addition to any other fee imposed on a vehicle by that law or by the Vehicle Code, imposes a transportation improvement fee on each vehicle and requires a portion of the revenues attributable to the fee to be transferred to the Public Transportation Account for the State Transit Assistance Program. Existing law continuously appropriates those funds to the Controller under a program commonly known as the State of Good Repair Program for allocation to transit agencies pursuant to specified formulas. Existing law restricts the expenditure of moneys under this program to (A) transit capital projects or services to maintain or repair a transit operator’s existing transit vehicle fleet or existing transit facilities; (B) the design, acquisition, and construction of new vehicles or facilities that improve existing transit services; or (C) transit services that complement local efforts for repair and improvement of local transportation infrastructure. Existing law authorizes the recipient transit agency to instead expend funds apportioned for the 2019–20 to 2021–22, inclusive, fiscal years under the program on any operating or capital expenses to maintain transit service levels if the governing board of the recipient transit agency makes a specified declaration.

This bill would authorize a recipient transit agency to additionally expend funds apportioned for the 2022–23 fiscal year under the program on any operating or capital expenses to maintain transit service levels if the governing board of the recipient transit agency makes that specified declaration. By expanding the purposes for which continuously appropriated funds may be used, the bill would make an appropriation. If the governing board of the recipient transit agency makes this declaration, the bill would exempt the recipient transit agency from certain procedural, reporting, and accounting requirements of the State of Good Repair Program with respect to the receipt and expenditure of those funds.

(6) Existing law vests the Department of Transportation with possession and control of the state highway system and associated property, and requires the department to improve and maintain state highways, as defined. Existing law authorizes the department to enter into an agreement to accept funds, materials, equipment, or services for maintenance or roadside enhancement, including the cleanup and abatement of litter, of a section of a state highway.

This bill would authorize the department, upon the completion of a scheduled cleanup and abatement of litter pursuant to one of these agreements entered into with an individual, organization, agency, or business that has been issued an Adopt-A-Highway permit, to provide a $250 stipend to the individual, organization, agency, or business.

This bill would establish the Clean California Local Grant Program of 2021, to be administered by the department, to provide funding, upon appropriation by the Legislature, to allocate grants to local and public agencies, among other entities, for purposes of beautifying and cleaning up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces. The bill would require the department to develop guidelines, including project selection criteria and program evaluation metrics, that include, but are not limited to, a process for allocating no less than 50% of the program funds to projects that benefit underserved communities, to be defined by the department, and requirements for local matching of funds of no more than 50% of the total project cost. The bill would require the guidelines to also include specified project types eligible for funding, a limitation of $5,000,000 maximum per grant award, and a prohibition on grants that fund projects that displace persons experiencing homelessness. The bill would authorize the department to allow, and develop guidelines for, advance payments to public agency grant applicants if certain conditions are met.

This bill would establish the Clean California State Beautification Program of 2021 to provide funding, upon appropriation by the Legislature, for purposes of beautifying and cleaning up state highways. The bill would require the department to develop project selection criteria and program evaluation metrics and identify eligible projects. The bill would require the department to include in its project selection criteria specified components, including, but not limited to, the potential for a project to enhance and beautify public spaces, the benefit to underserved communities, to be defined by the department, and project types eligible for funding, such as greening and landscaping projects, gateway community identification projects, and enhanced infrastructure safety measures. The bill would, consistent with applicable department policies and guidelines, prohibit program funds from being used to displace persons experiencing homelessness.

(7) The State Contract Act generally provides for a contracting process by state agencies for public works of improvement pursuant to a competitive bidding process, under which bids are awarded to the lowest responsible bidder, with specified alternative procurement procedures authorized in certain cases.

This bill would authorize the Department of Transportation to use job order contracting to construct projects funded pursuant to the Clean California State Beautification Program of 2021, referenced above. The bill would require the department to establish a procedure to prequalify job order contractors and to establish specified documents for each job order contract, as provided. The bill would delegate to the department the authority necessary to carry out the purchase of vehicles, equipment, or other products as needed to implement the department’s supplemental Fleet Acquisition Plan Fiscal Year 2021–22 for the acquisition of 269 medium- and heavy-duty vehicles and equipment to support litter abatement. The bill would require, as part of the 2022–23 and 2023–24 budgets, the department to report to the Legislature on these two programs, including, but not limited to, the vehicles and equipment purchased, cubic yards of litter collected, and any other important project or program outcomes.

(8) Existing law prohibits the Department of Transportation, until July 1, 2021, from charging any self-help counties with countywide sales tax measures dedicated to transportation improvements more than 10% for administration indirect cost recovery, as outlined in the department’s Indirect Cost Recovery Proposal. Existing law requires the department to charge those self-help counties for functional overhead until July 1, 2021.

This bill would extend those provisions until January 1, 2023.

(9) Existing law creates the Road Maintenance and Rehabilitation Program and, after certain allocations for the program are made, requires the remaining funds available for the program to be allocated 50% for maintenance of the state highway system or for purposes of the state highway operation and protection program and 50% for apportionment to cities and counties by the Controller pursuant to a specified formula. Before receiving an apportionment of funds under the program from the Controller in a fiscal year, existing law requires a city or county to submit to the California Transportation Commission a list of projects proposed to be funded with these funds. In order to receive an allocation or apportionment of these funds, existing law requires the city or county to annually expend a certain minimum amount from its general fund for street, road, and highway purposes.

This bill would provide that cities and counties are not required to comply with the annual minimum expenditure requirements in the 2019–20 fiscal year. The bill would require the Controller to adjust the annual minimum expenditure requirements in the 2020–21 and 2021–22 fiscal years in proportion to any decrease in taxable sales within the applicable city or county between specified fiscal years. Under a specified circumstance, the bill would authorize a city or county to petition the Controller to use transient occupancy tax revenues, in lieu of taxable sales, for purposes of making these adjustments.

(10) Existing law requires the Department of Motor Vehicles to issue to a person a driver’s license as applied for when the department determines that the applicant is lawfully entitled to a license. Existing law requires the license to state specified information, including the true name, age, and mailing address of the licensee and a brief description and engraved picture or photograph of the licensee for the purpose of identification. Existing law authorizes the department to issue an identification card to any person attesting to their true full name, correct age, and other identifying data as certified by the applicant for the identification card.

This bill would authorize 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, but not limited to, the voluntary participation of persons in the program and a limitation on the percentage of licensed drivers that can participate in the program. The bill would require the department, in developing and implementing the use of digital driver’s licenses and identification cards, to ensure the protection of personal information and include specified security features that protect against unauthorized access to information. The bill would require the department, if it conducts the pilot program, to submit a report to the Legislature, no later than July 1, 2026, that includes specified information. The bill would also require the department, as part of the 2022–23 budget, to report to the Legislature on the status of the pilot program, as provided.

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

Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NO

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

SECTION 1.

Chapter 13 (commencing with Section 1950) is added to Division 2 of the Fish and Game Code, to read:

CHAPTER 13. Nonvehicular Wildlife Crossings

1950.

(a) For purposes of this chapter, “nonvehicular wildlife crossing” means a structure that allows animals to cross human-made barriers safely and includes, but is not limited to, underpasses, tunnels, viaducts, overpasses, amphibian tunnels, fish ladders, and culverts. Nonvehicular wildlife crossings are primarily habitat conservation and biodiversity projects, but also assist in avoiding collisions between vehicles and animals.

(b) The Wildlife Conservation Board may name a nonvehicular wildlife crossing if at least 25 percent of the funding to construct the crossing derives from a state source.

(c) The Wildlife Conservation Board shall consult with the Department of Transportation or other appropriate entities on the design of lettering and placement of any sign that displays the name of a nonvehicular wildlife crossing.

(d) The Wildlife Conservation Board may adopt criteria for the implementation of this section.

SEC. 2.

Section 13979.2 of the Government Code is amended to read:

13979.2.

(a) The secretary, on behalf of the agency, and any department, office, or other unit within the agency with the authority to implement transportation projects, may assume responsibilities under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) and other federal environmental laws, pursuant to Section 327 of Title 23 of the United States Code, for any railroad, public transportation, or multimodal project.

(b) Before assuming the responsibilities set forth in subdivision (a) through execution of a memorandum of understanding between the State of California and the federal government, the secretary shall submit a copy of the draft memorandum of understanding to the Joint Legislative Budget Committee. Execution of the memorandum of understanding shall occur no sooner than 30 days after the secretary provides the draft memorandum of understanding to the Joint Legislative Budget Committee, or whatever lesser time after that notification that the chair of the joint committee, or the chair’s designee, may determine.

(c) The State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of any responsibilities assumed pursuant to subdivision (a).

(d) In any action brought pursuant to the federal laws described in subdivision (a) for a project for which responsibilities have been assumed pursuant to subdivision (a), no immunity from suit may be asserted pursuant to the Eleventh Amendment to the United States Constitution, and any immunity is hereby waived.

(e) No responsibility assumed pursuant to subdivision (a) may be delegated to any political subdivision of the state, such as a county, or its instrumentalities.

(f) This section does not affect the obligation of the secretary and all departments, offices, and other units within the agency to comply with state and federal law.

(g) Nothing in this section is intended to repeal or modify Section 820.1 of the Streets and Highways Code.

(h) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.

SEC. 3.

Section 75230 of the Public Resources Code is amended to read:

75230.

(a) The Low Carbon Transit Operations Program is hereby created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged communities.

(b) Funding for the program is continuously appropriated pursuant to Section 39719 of the Health and Safety Code from the Greenhouse Gas Reduction Fund established pursuant to Section 16428.8 of the Government Code.

(c) Except as provided in subdivision (v), funding shall be allocated by the Controller on a formula basis consistent with the requirements of this part and with Section 39719 of the Health and Safety Code, upon a determination by the Department of Transportation that the expenditures proposed by a recipient transit agency meet the requirements of this part and guidelines developed pursuant to this section, and that the amount of funding requested is currently available.

(d) A recipient transit agency shall demonstrate that each expenditure of program moneys allocated to the agency reduces greenhouse gas emissions.

(e) A recipient transit agency shall demonstrate that each expenditure of program moneys does not supplant another source of funds.

(f) Moneys for the program shall be expended to provide transit operating or capital assistance that meets any of the following:

(1) Expenditures that directly enhance or expand transit service by supporting new or expanded bus or rail services, new or expanded water-borne transit, or expanded intermodal transit facilities, and may include equipment acquisition, fueling, and maintenance, and other costs to operate those services or facilities.

(2) Operational expenditures that increase transit mode share.

(3) Expenditures related to the purchase of zero-emission buses, including electric buses, and the installation of the necessary equipment and infrastructure to operate and support these zero-emission buses.

(g) (1) For recipient transit agencies whose service areas include disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code, at least 50 percent of the total moneys received pursuant to this chapter shall be expended on projects or services that meet the requirements of subdivisions (d), (e), and (f) and benefit the disadvantaged communities, as identified consistent with the guidance developed by the State Air Resources Board pursuant to Section 39715 of the Health and Safety Code.

(2) The requirement of paragraph (1) is waived if the recipient transit agencies expend the funding provided pursuant to this section on any of the following:

(A) New or expanded transit service that connects with transit service serving disadvantaged communities, as identified in Section 39711 of, or in low-income communities, as defined in paragraph (2) of subdivision (d) of Section 39713 of, the Health and Safety Code.

(B) Transit fare subsidies and network and fare integration technology improvements, including, but not limited to, discounted or free student transit passes.

(3) Expenditures made pursuant to paragraph (2) shall be deemed to have met all applicable requirements established pursuant to Section 39713 of the Health and Safety Code.

(4) This section does not require a recipient transit agency to provide individual rider data to the Department of Transportation or the State Air Resources Board.

(h) The Department of Transportation, in coordination with the State Air Resources Board, shall develop guidelines that describe the methodologies that recipient transit agencies shall use to demonstrate that proposed expenditures will meet the criteria in subdivisions (d), (e), (f), and (g) and establish the reporting requirements for documenting ongoing compliance with those criteria.

(i) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the development of guidelines for the program pursuant to this section.

(j) A recipient transit agency shall submit the following information to the Department of Transportation before seeking a disbursement of funds pursuant to this part:

(1) A list of proposed expense types for anticipated funding levels.

(2) The documentation required by the guidelines developed pursuant to this section to demonstrate compliance with subdivisions (d), (e), (f), and (g).

(k) For capital projects, the recipient transit agency shall also do all of the following:

(1) Specify the phases of work for which the agency is seeking an allocation of moneys from the program.

(2) Identify the sources and timing of all moneys required to undertake and complete any phase of a project for which the recipient agency is seeking an allocation of moneys from the program.

(3) Describe intended sources and timing of funding to complete any subsequent phases of the project, through construction or procurement.

(l) A recipient transit agency that has used program moneys for any type of operational assistance allowed by subdivision (f) in a previous fiscal year may use program moneys to continue the same service or program in any subsequent fiscal year if the agency can demonstrate that reductions in greenhouse gas emissions can be realized.

(m) Before authorizing the disbursement of funds, the Department of Transportation, in coordination with the State Air Resources Board, shall determine the eligibility, in whole or in part, of the proposed list of expense types, based on the documentation provided by the recipient transit agency to ensure ongoing compliance with the guidelines developed pursuant to this section.

(n) The Department of Transportation shall notify the Controller of approved expenditures for each recipient transit agency, and the amount of the allocation for each agency determined to be available at that time of approval.

(o) A recipient transit agency that does not submit an expenditure for funding in a particular fiscal year may retain its funding share, and may accumulate and use that funding share in a subsequent fiscal year for a larger expenditure, including operating assistance. The recipient transit agency must first specify the number of fiscal years that it intends to retain its funding share and the expenditure for which the agency intends to use these moneys. A recipient transit agency may only retain its funding share for a maximum of four fiscal years.

(p) A recipient transit agency may, in any particular fiscal year, loan or transfer its funding share to another recipient transit agency within the same region for any identified eligible expenditure under the program, including operating assistance, in accordance with procedures incorporated by the Department of Transportation in the guidelines developed pursuant to this section, which procedures shall be consistent with the requirement in subdivision (g).

(q) A recipient transit agency may apply to the Department of Transportation to reassign any savings of surplus moneys allocated under this section to the agency for an expenditure that has been completed to another eligible expenditure under the program, including operating assistance. A recipient transit agency may also apply to the Department of Transportation to reassign to another eligible expenditure any moneys from the program previously allocated to the agency for an expenditure that the agency has determined is no longer a priority for the use of those moneys.

(r) The recipient transit agency shall provide annual reports to the Department of Transportation, in the format and manner prescribed by the department, consistent with the internal administrative procedures for the use of the fund proceeds developed by the State Air Resources Board.

(s) The Department of Transportation and recipient transit agencies shall comply with the guidelines developed by the State Air Resources Board pursuant to Section 39715 of the Health and Safety Code to ensure that the requirements of Section 39713 of the Health and Safety Code are met to maximize the benefits to disadvantaged communities, as described in Section 39711 of the Health and Safety Code.

(t) A recipient transit agency shall comply with all applicable legal requirements, including the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), and civil rights and environmental justice obligations under state and federal law. This section does not expand or extend the applicability of those laws to recipient transit agencies.

(u) The audit of public transportation operator finances already required under the Transportation Development Act (Chapter 4 (commencing with Section 99200) of Part 11 of Division 10 of the Public Utilities Code) pursuant to Section 99245 of that code shall be expanded to include verification of receipt and appropriate expenditure of moneys from the program. Each recipient transit agency receiving moneys from the program in a fiscal year for which an audit is conducted shall transmit a copy of the audit to the Department of Transportation, and the department shall make the audits available to the Legislature and the Controller for review on request.

(v) Notwithstanding subdivision (c), the Controller shall allocate funding pursuant to this section for the 2019–20 to 2022–23, inclusive, fiscal years to recipient transit agencies pursuant to the individual operator ratios described in Section 99314.10 of the Public Utilities Code.

SEC. 4.

Section 99244 of the Public Utilities Code is amended to read:

99244.

(a) (1) Each transportation planning agency shall annually identify, analyze, and recommend potential productivity improvements that could lower the operating costs of those operators who operate at least 50 percent of their vehicle service miles, as defined in subdivision (i) of Section 99247, within the area under its jurisdiction. However, where a transit development board created pursuant to Division 11 (commencing with Section 120000) or a county transportation commission exists, the board or commission, as the case may be, shall have the responsibility of the transportation planning agency with respect to potential productivity improvements. The recommendations for improvements and productivity shall include, but not be limited to, those recommendations related to productivity made in the performance audit conducted pursuant to Section 99246.

(2) A committee for the purpose of providing advice on productivity improvements may be formed by the responsible entity. The membership of this committee shall consist of representatives from the management of the operators, organizations of employees of the operators, and users of the transportation services of the operators located within the area under the jurisdiction of the responsible entity.

(3) (A) Before determining the allocation to an operator for the next fiscal year, the responsible entity shall review and evaluate the efforts made by the operator to implement the recommended improvements.

(B) If the responsible entity determines that the operator has not made a reasonable effort to implement the recommended improvements, the responsible entity shall not approve the allocation to the operator for the support of its public transportation system for the next fiscal year that exceeds the allocation to the operator for those purposes for the current fiscal year.

(b) For the 2020–21 to 2022–23, inclusive, fiscal years, each transportation planning agency, transportation development board, and county transportation commission, is exempt from the requirements described in subdivision (a).

SEC. 5.

Section 99246.5 is added to the Public Utilities Code, to read:

99246.5.

(a) On or before November 30, 2021, the department, in consultation with transportation planning agencies, county transportation commissions, and transit development boards, shall review the requirements for, and submit a report to the Legislature on, the performance audits conducted pursuant to Section 99246 to identify opportunities for streamlining the performance audits and to make the performance audits more effective.

(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2025.

SEC. 6.

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, or 2022–23 fiscal year.

(2) This subdivision shall become inoperative on January 1, 2024.

SEC. 7.

Section 99268.17 of the Public Utilities Code is amended to read:

99268.17.

(a) Notwithstanding subdivision (a) of Section 99247, all of the following costs shall be excluded from the definition of “operating cost” for the purposes of calculating any required ratios of fare revenues to operating cost specified in this article:

(1) The operating costs 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.

(2) Cost increases beyond the change in the Consumer Price Index for all of the following:

(A) Fuel.

(B) Alternative fuel programs.

(D) Insurance premiums and payments in settlement of claims arising out of the operator’s liability.

(E) State and federal mandates.

(3) Startup costs for new services for a period of not more than two years.

(4) Costs required to operate demand-response and microtransit services that expand access to transit service beyond fixed route corridors. For purposes of this paragraph, “microtransit” has the same meaning as in Section 99314.6.

(5) Costs of funding or improving payment and ticketing systems and services.

(6) Costs of security services and public safety contracts.

(7) Any expense greater than the actuarially determined contribution associated with pensions and other post-employment benefits as required by Governmental Accounting Board Statement Numbers 68 and 75.

(8) 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.

(b) The exclusion of costs from the definition of operating costs in subdivision (a) applies solely for the purpose of this article and does not authorize an operator to report an operating cost other than as defined in subdivision (a) of Section 99247 or a ratio of fare revenue to operating cost other than as that ratio is described elsewhere in this article, 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.

SEC. 8.

Section 99268.19 of the Public Utilities Code is amended to read:

99268.19.

If fare revenues are insufficient to meet the applicable ratio of fare revenues to operating cost required by this article, an operator may satisfy that requirement by supplementing its fare revenues with local funds and calculating all free and reduced transit fares at their current full retail value. As used in this section, “local funds” means any nonstate grant funds or other revenues generated by, earned by, or distributed to an operator.

SEC. 9.

Section 99268.20 is added to the Public Utilities Code, to read:

99268.20.

(a) Notwithstanding any other law and except as specified in subdivision (b), Sections 99268, 99268.1, 99268.2, 99268.3, 99268.4, 99268.5, 99268.6, 99268.7, 99268.8, 99268.9, 99268.11, 99268.12, 99268.16, 99268.17, 99268.18, 99268.19, 99269, 99270.1, 99270.2, 99270.5, and 99270.6 do not apply to an operator for a fiscal year in which the operator expended from local funding an amount for transit operations not less than the amount the operator expended from local funding for transit operations during the 2018–19 fiscal year. As used in this subdivision, “local funding” means any nonstate grant funds or other revenues generated by, earned by, or distributed to, an operator.

(b) (1) For purposes of verifying the expenditures described in subdivision (a), the Controller may request fiscal data from the operator or conduct an audit of the operator.

(2) Notwithstanding subdivision (a), if the operator fails to comply with the Controller’s request for fiscal data within 120 days of receiving the request, as determined by the Controller, the sections listed in subdivision (a) apply to the operator.

(3) Notwithstanding subdivision (a), if the Controller, through an audit of the operator, determines that the operator did not meet the requirements of subdivision (a), the sections listed in subdivision (a) apply to the operator.

(4) An operator to which the sections listed in subdivision (a) apply pursuant to paragraph (2) or (3) shall reimburse the state for any funds spent unlawfully.

(c) The Controller shall not require an operator to which the sections listed in subdivision (a) do not apply pursuant to subdivision (a) to report data submitted or collected only for purposes of complying with those sections.

(d) (1) On or before November 30, 2025, the department shall submit a report to the Legislature on the revenue vehicle hours, ridership, and passenger mile impacts on the services offered by operators to which the sections listed in subdivision (a) do not apply pursuant to subdivision (a).

(2) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.

(e) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 10.

Section 99312.1 of the Public Utilities Code is amended to read:

99312.1.

(a) Revenues transferred to the Public Transportation Account pursuant to Sections 6051.8 and 6201.8 of the Revenue and Taxation Code for the State Transit Assistance Program are hereby continuously appropriated to the Controller for allocation as follows:

(1) Fifty percent for allocation to transportation planning agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99314, for purposes of the State Transit Assistance Program.

(2) Fifty percent for allocation to transportation agencies, county transportation commissions, and the San Diego Metropolitan Transit Development Board pursuant to Section 99313, for purposes of the State Transit Assistance Program.

(b) For purposes of this chapter, the revenues allocated pursuant to this section shall be subject to the same requirements as revenues allocated pursuant to subdivisions (b) and (c), as applicable, of Section 99312.

(c) The revenues transferred to the Public Transportation Account for the State Transit Assistance Program that are attributable to subdivision (a) of Section 11053 of the Revenue and Taxation Code are hereby continuously appropriated to the Controller, and, upon allocation pursuant to Sections 99313 and 99314, shall only be expended on the following:

(1) Transit capital projects or services to maintain or repair a transit operator’s existing transit vehicle fleet or existing transit facilities, including rehabilitation or modernization of existing vehicles or facilities.

(2) The design, acquisition, and construction of new vehicles or facilities that improve existing transit services.

(3) Transit services that complement local efforts for repair and improvement of local transportation infrastructure.

(d) (1) Before receiving an apportionment of funds pursuant to subdivision (c) from the Controller in a fiscal year, a recipient transit agency shall submit to the department a list of projects proposed to be funded with these funds. The list of projects proposed to be funded with these funds shall include a description and location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement. The project list shall not limit the flexibility of a recipient transit agency to fund projects in accordance with local needs and priorities so long as the projects are consistent with subdivision (c).

(2) The department shall report to the Controller the recipient transit agencies that have submitted a list of projects as described in this subdivision and that are therefore eligible to receive an apportionment of funds for the applicable fiscal year. The Controller, upon receipt of the report, shall apportion funds quarterly pursuant to Sections 99313 and 99314.

(e) For each fiscal year, each recipient transit agency receiving an apportionment of funds pursuant to subdivision (c) shall, upon expending those funds, submit documentation to the department that includes a description and location of each completed project, the amount of funds expended on the project, the completion date, and the estimated useful life of the improvement.

(f) The audit of transit operator finances required pursuant to Section 99245 shall verify that the revenues identified in subdivision (c) have been expended in conformance with these specific requirements and all other generally applicable requirements.

(g) Notwithstanding any other law, the Controller shall allocate the funds made available in subdivision (c) in the 2020–21 to 2022–23, inclusive, fiscal years pursuant to Sections 99313 and 99314 and, for the funds allocated pursuant to Section 99314, shall allocate those funds in accordance with the individual operator ratios described in Section 99314.10.

(h) (1) Notwithstanding paragraphs (1), (2), and (3) of subdivision (c), a recipient transit agency may expend funds apportioned pursuant to subdivision (c) for the 2019–20 to 2022–23, inclusive, fiscal years on any operating or capital costs to maintain transit service levels if the governing board of the recipient transit agency makes a declaration that the expenditure of those funds is necessary to prevent transit service levels from being reduced or eliminated.

(2) The requirements of subdivisions (d), (e), and (f) do not apply to the receipt or expenditure of funds pursuant to paragraph (1).

SEC. 11.

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 2022–23, 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. 12.

Section 99314.10 of the Public Utilities Code is amended to read:

99314.10.

(a) Notwithstanding any other law, for the 2020–21 to 2022–23, inclusive, fiscal years, the Controller shall calculate and publish the allocation of funds made pursuant to Section 99314 to each transportation planning agency and county transportation commission, the San Diego Metropolitan Transit Development Board, the member agencies of the Altamont Commuter Express Authority, and the member agencies of the Southern California Regional Rail Authority based on the same individual operator ratios published by the Controller in its August 2020 State Transit Assistance Allocation transmittal memo, or as the Controller may subsequently revise that memo before June 30, 2023, to account for an STA-eligible operator’s termination of transit operations during those fiscal years or for a new STA-eligible operator, as described in subdivision (c) of Section 99314, during those fiscal years.

(b) In calculating the individual operator ratios for the August 2020 State Transit Assistance Allocation transmittal memo described in subdivision (a), the Controller shall use the data from the most recent annual report submitted by each STA-eligible operator to the Controller pursuant to Section 99243, except that the Controller shall not use data from a fiscal year before the 2017–18 fiscal year. For a subsequent revision to the memo, as described in subdivision (a), the Controller shall incorporate the data from the most recent annual report submitted by a new STA-eligible operator pursuant to Section 99243 into the data used in the memo for existing STA-eligible operators.

(c) Upon allocation of funds pursuant to this section to each transportation planning agency and county transportation commission, the San Diego Metropolitan Transit Development Board, the member agencies of the Altamont Commuter Express Authority, and the member agencies of the Southern California Regional Rail Authority, the Controller shall publish the amount of funding allocated to each operator.

SEC. 13.

Section 99314.11 is added to the Public Utilities Code, to read:

99314.11.

(a) Notwithstanding any other law and except as specified in subdivision (b), Sections 99314.6 and 99314.7 do not apply to an operator for a fiscal year in which the operator expended from local funding an amount for transit operations not less than the amount the operator expended from local funding for transit operations during the 2018–19 fiscal year. As used in this subdivision, “local funding” means any nonstate grant funds or other revenues generated by, earned by, or distributed to, an operator.

(b) (1) For purposes of verifying the expenditures described in subdivision (a), the Controller may request fiscal data from the operator or conduct an audit of the operator.

(2) Notwithstanding subdivision (a), if the operator fails to comply with the Controller’s request for fiscal data within 120 days of receiving the request, as determined by the Controller, Sections 99314.6 and 99314.7 apply to the operator.

(3) Notwithstanding subdivision (a), if the Controller, through an audit of the operator, determines that the operator did not meet the requirements of subdivision (a), Sections 99314.6 and 99314.7 apply to the operator.

(4) An operator to which Sections 99314.6 and 99314.7 apply pursuant to paragraph (2) or (3) shall reimburse the state for any funds spent unlawfully.

(c) The Controller shall not require an operator to which Sections 99314.6 and 99314.7 do not apply pursuant to subdivision (a) to report data submitted or collected only for purposes of complying with those sections.

(d) (1) On or before November 30, 2025, the department shall submit a report to the Legislature on the revenue vehicle hours, ridership, and passenger mile impacts on the services offered by operators to which Sections 99314.6 and 99314.7 do not apply pursuant to subdivision (a).

(2) A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.

(e) This section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.

SEC. 14.

Section 99405 of the Public Utilities Code is amended to read:

99405.

(a) Except as otherwise provided in this section, the allocation for any purpose specified in Section 99400 may in no year exceed 50 percent of the amount required to meet the city’s or county’s total proposed expenditures for that purpose.

(b) With respect to budgeted capital requirements for major new facilities, the transportation planning agency, notwithstanding the 50-percent limitation, may allocate up to the amount so budgeted, if the construction of the facilities has been found to be not inconsistent with the transportation planning agency’s regional transportation plan.

(c) (1) The 50-percent limitation shall not apply to the allocation to a city, county, or transit district for services under contract pursuant to subdivision (c) or (d) of Section 99400. The city, county, or transit district that is not in compliance with Section 99268.20 shall be subject to Section 99268.3, 99268.4, 99268.5, or 99268.9, as the case may be, and shall be deemed an operator for purposes of those sections, or shall be subject to regional, countywide, or county subarea performance criteria, local match requirements, or fare recovery ratios adopted by resolution of the transportation planning agency or the county transportation commission for those services.

(2) In adopting the performance criteria, local match requirements, or fare recovery ratios, the transportation planning agency or the county transportation commission may adopt the criteria of Section 99268.3, 99268.4, 99268.5, or 99268.9, or any combination or all of them.

(3) If a transportation planning agency or county transportation commission has adopted performance criteria, local match requirements, or fare recovery ratios, the rules and regulations of the agency or commission shall apply, and Sections 99205.7 and 99241, subdivision (a) of Section 99247, and Section 99268.8 shall not apply.

(d) The 50-percent limitation shall not apply to funds allocated under this article to a city or county with a population of less than 5,000, and, notwithstanding Section 99400, the city or county may claim funds under this article for transportation services, including associated capital, planning, and administrative costs, without contracting with another entity.

(e) The 50-percent limitation shall not apply to funds allocated under this article for local street and road purposes.

SEC. 15.

Section 91.4 is added to the Streets and Highways Code, to read:

91.4.

(a) Upon the completion of a scheduled cleanup and abatement of litter pursuant to an agreement with an adopter entered into pursuant to Section 91.5, the department may provide a two hundred fifty dollar ($250) stipend to the adopter.

(b) Notwithstanding any other law, an adopter provided a stipend pursuant to this section is not an employee of the state.

(c) For purposes of this section, “adopter” is defined as in Section 2621 of Title 21 of the California Code of Regulations.

(d) This section shall become inoperative on June 30, 2024, and, as of January 1, 2025, is repealed.

SEC. 16.

Section 91.41 is added to the Streets and Highways Code, to read:

91.41.

(a) The Clean California Local Grant Program of 2021 is hereby established, to be administered by the department, to provide funding, upon appropriation by the Legislature, for the purpose of allocating grants to local and regional public agencies, transit agencies, and tribal governments for purposes of beautifying and cleaning up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces.

(b) It is the intent of the Legislature that the program established pursuant to subdivision (a) achieves all of the following goals:

(1) Reduce the amount of waste and debris within public rights-of-way, tribal lands, parks, pathways, transit centers, and other public spaces.

(2) Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces.

(3) Enhance public health, cultural connection, and community placemaking by improving public spaces for walking and recreation.

(4) Advance equity for underserved communities.

(c) The department shall expedite the award of grants pursuant to this section by issuing a call for projects within six months of the effective date of this section. The department shall announce grant awards within three months following the call for projects.

(d) (1) Within six months of the effective date of this section, the department shall develop guidelines, including project selection criteria and program evaluation metrics, to implement the program. The guidelines shall be 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).

(2) In developing guidelines pursuant to paragraph (1), the department shall solicit input from local communities through at least two public workshops.

(3) The guidelines shall include, but shall not be limited to, all of the following:

(A) A process for allocating no less than 50 percent of the program funds to projects that benefit underserved communities. The department shall establish a definition for underserved communities that may include, but need not be limited to, disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code, and low-income communities, as defined in paragraph (2) of subdivision (d) of Section 39713 of the Health and Safety Code. A project eligible pursuant to this process shall clearly demonstrate a benefit to an underserved community or be directly located in an underserved community.

(B) Requirements for local matching funds of no more than 50 percent of the total project cost. The department may establish a lower percent or zero-match requirement for applicants based on severity of disadvantage.

(i) The demonstrated need of the applicant to address the goals of the program as described in subdivision (b).

(ii) The potential for the project to enhance and beautify a public spaces or spaces.

(iii) The potential for greening to provide shade, reduce the urban heat island effect, and use native, low-water plants.

(iv) The potential for abatement of litter and debris that improves access to use of a public space or spaces.

(v) Identification of the local public engagement process that culminated in the project proposal and reflects community priorities.

(vi) The benefit to underserved communities.

(D) Project types eligible for funding pursuant to the program that include, but are not limited to, both of the following:

(i) Community litter abatement projects, events, and educational programming.

(ii) Greening and landscaping projects.

(E) A limit of five million dollars ($5,000,000) maximum per grant awarded pursuant to the program.

(F) A prohibition on grants that fund projects that displace persons experiencing homelessness.

(G) A funding distribution that takes into account the population that each project is intended to benefit relative to the total population that all projects awarded grants pursuant to the program will benefit, and the needs of underserved communities.

(e) The department may authorize, and develop guidelines related to, an advance payment for a project funded by a grant awarded pursuant to the program. A grant applicant shall be eligible for an advance payment from the department for a project funded by a grant awarded pursuant to the program only if all of the following conditions are met:

(1) The grant applicant for an advance payment is a public agency.

(2) The grant applicant requests an advance payment in its initial grant application.

(3) The project or project component for which the advance payment is requested is well defined and can be delivered by an agreed upon date.

(4) The grant applicant has a record of good financial management and has not been sanctioned by any state or federal agency.

(5) Upon request of the department, the grant applicant offers sufficient capital, as determined by the department, as security for an advance payment.

(6) Upon request of the department, the grant applicant provides a finding approved by its governing body that demonstrates a financial need for an advance payment pursuant to the program to deliver the project.

SEC. 17.

Section 91.42 is added to the Streets and Highways Code, to read:

91.42.

(a) The Clean California State Beautification Program of 2021 is hereby established, to be administered by the department, to provide funding, upon appropriation by the Legislature, for purposes of beautifying and cleaning up state highways.

(b) It is the intent of the Legislature that the program established pursuant to subdivision (a) achieves all of the following goals:

(1) Reduce the amount of waste and debris within public rights-of-way, tribal lands, pathways, parks, transit centers, and other public spaces.

(2) Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces.

(3) Enhance public health, cultural connection, and community placemaking by improving public spaces for walking and recreation.

(4) Advance equity for underserved communities.

(c) (1) Within six months of the effective date of this section, the department shall develop project selection criteria and program evaluation metrics and identify eligible projects.

(2) The project selection criteria shall include, but shall not be limited to, all of the following:

(A) The demonstrated need of the applicant to address the goals of the program as described in subdivision (b).

(B) The potential for the project to enhance and beautify a public spaces or spaces.

(D) The potential for abatement of litter and debris that improves access to use of a public space or spaces.

(E) Identification of the local public engagement process that culminated in the project proposal and reflects community priorities.

(F) The benefit to underserved communities. The department shall establish a definition for underserved communities that may include, but need not be limited to, disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code, and low-income communities, as defined in paragraph (2) of subdivision (d) of Section 39713 of the Health and Safety Code.

(G) Project types eligible for funding pursuant to the program that include, but are not limited to, all of the following:

(i) Greening and landscaping projects.

(ii) Gateway community identification projects.

(iii) Enhanced infrastructure safety measures.

(d) Consistent with applicable department policies and guidelines, program funds shall not be used to displace persons experiencing homelessness.

SEC. 18.

Section 91.43 is added to the Streets and Highways Code, to read:

91.43.

(a) The department may use job order contracting to construct projects through the Clean California State Beautification Program of 2021 as follows:

(1) The department shall establish a procedure to prequalify job order contractors and shall prepare a set of documents for each job order contract. The documents shall include all of the following:

(A) A unit book of construction tasks with preestablished unit prices.

(B) Job order contract specifications.

(2) Based on the documents prepared pursuant to paragraph (1), the department shall prepare a request for bids that invites prequalified job order contractors to submit competitive sealed bids in the manner prescribed by the department.

(3) Job order contracts may be executed for an initial contract term of no more than 12 months, with the option of extending or renewing the job order contract for two 12-month periods. All extensions or renewals shall be priced as provided in the request for bids. An extension or renewal shall be mutually agreed to by the department and the job order contractor.

(4) Any job order contractor that is selected to construct a project pursuant to this subdivision shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance as the department may require.

(5) Nothing in this subdivision is intended to affect, expand, alter, or limit any rights or remedies otherwise available by law.

(b) Project funds received pursuant to the Clean California Local Grant Program of 2021, the Clean California State Beautification Program of 2021, and any funds received by the department as reimbursement for project work under these programs shall not be considered transportation funds subject to Sections 182 and 183.

(c) The Legislature finds that it is in the best interest of the state to facilitate the quick and efficient purchase of vehicles and related equipment, goods, and systems. Notwithstanding Section 10295.2 of the Public Contract Code and Section 13332.09 of the Government Code, the department is hereby delegated the authority necessary to carry out the purchase of vehicles, equipment, or other products as needed to implement the department’s supplemental Fleet Acquisition Plan Fiscal Year 2021–22 for the acquisition of 269 medium- and heavy-duty vehicles and equipment to support litter abatement.

(d) As part of the 2022–23 and 2023–24 budgets, the department shall report to the Legislature on the Clean California Local Grant Program of 2021 and the Clean California State Beautification Program of 2021, including, but not limited to, the vehicles and equipment purchased pursuant to subdivision (c), cubic yards of litter collected, the locations and types of projects, and any other important project or program outcomes.

SEC. 19.

Section 114.5 of the Streets and Highways Code is amended to read:

114.5.

(a) The department shall not charge any self-help counties with countywide sales tax measures dedicated to transportation improvements more than 10 percent for administration indirect cost recovery, as outlined in the department’s Indirect Cost Recovery Proposal. The department shall charge those self-help counties for functional overhead.

(b) On or before July 1, 2021, the department shall report to the Legislature, consistent with Section 9795 of the Government Code, on the type and amount of engineering work performed annually for self-help counties pursuant to Section 114 and this section for the 2018–19, 2019–20, and 2020–21 fiscal years.

SEC. 20.

Section 2036 of the Streets and Highways Code is amended to read:

2036.

(a) Cities and counties shall maintain their existing commitment of local funds for street, road, and highway purposes in order to remain eligible for an allocation or apportionment of funds pursuant to Section 2032.

(b) In order to receive an allocation or apportionment pursuant to Section 2032, the city or county shall annually expend from its general fund for street, road, and highway purposes an amount not less than the annual average of its expenditures from its general fund during the 2009–10, 2010–11, and 2011–12 fiscal years, as reported to the Controller pursuant to Section 2151. For purposes of this subdivision, in calculating a city’s or county’s annual general fund expenditures and its average general fund expenditures for the 2009–10, 2010–11, and 2011–12 fiscal years, any unrestricted funds that the city or county may expend at its discretion, including vehicle in-lieu tax revenues and revenues from fines and forfeitures, expended for street, road, and highway purposes shall be considered expenditures from the general fund. One-time allocations that have been expended for street and highway purposes, but which may not be available on an ongoing basis, including revenue provided under the Teeter Plan Bond Law of 1994 (Chapter 6.6 (commencing with Section 54773) of Part 1 of Division 2 of Title 5 of the Government Code), shall not be considered when calculating a city’s or county’s annual general fund expenditures.

(c) For any city incorporated after July 1, 2009, the Controller shall calculate an annual average expenditure for the period between July 1, 2009, to December 31, 2015, inclusive, that the city was incorporated.

(d) For purposes of subdivision (b), the Controller may request fiscal data from cities and counties in addition to data provided pursuant to Section 2151, for the 2009–10, 2010–11, and 2011–12 fiscal years. Each city and county shall furnish the data to the Controller not later than 120 days after receiving the request. The Controller may withhold payment to cities and counties that do not comply with the request for information or that provide incomplete data.

(e) The Controller may perform audits to ensure compliance with subdivision (b) when deemed necessary.

(1) For any city or county that has not complied with subdivision (b), the Controller shall withhold from its apportionment pursuant to Section 2032 for a fiscal year following an audit an amount up to the amount of funds that the city or county received during the fiscal year that was audited. The amount withheld shall be reapportioned in one annual payment pursuant to paragraph (3).

(2) If the amount to be apportioned pursuant to Section 2032 is less than the amount to be withheld pursuant to paragraph (1), the city or county shall reimburse the state for the difference between the amount withheld and the apportionment that was received during the fiscal year that was audited. If the city or county is ineligible for an apportionment pursuant to Section 2032, the city or county shall reimburse the state in an amount equal to the allocation or apportionment it received in the fiscal year that was audited.

(3) Any funds withheld or returned as a result of a failure to comply with subdivision (b) shall be reallocated or reapportioned to the other counties or cities whose expenditures are in compliance during the fiscal year that the funds are withheld or returned. The reallocation or reapportionment shall be pursuant to the formula in clauses (i) and (ii) of subparagraph (C) of paragraph (3) of subdivision (a) of Section 2103.

(4) The Controller may adopt any rules, regulations, and procedures necessary to carry out the purposes of this section.

(f) If a city or county fails to comply with the requirements of subdivision (b) in a particular fiscal year, the city or county may expend during that fiscal year and the following fiscal year a total amount that is not less than the total amount required to be expended for those fiscal years for purposes of complying with subdivision (b).

(g) For the 2019–20 fiscal year, cities and counties are not required to comply with the annual expenditure requirements set forth in subdivision (b) or (c).

(h) For the 2020–21 fiscal year, the Controller shall adjust the annual expenditure requirements in subdivisions (b) and (c) in proportion to any decrease in taxable sales within the applicable city or county from the 2018–19 fiscal year to the 2019–20 fiscal year. The Controller shall not make an adjustment if taxable sales increased.

(i) For the 2021–22 fiscal year, the Controller shall adjust the annual expenditure requirements in subdivisions (b) and (c) in proportion to any decrease in taxable sales within the applicable city or county from the 2018–19 fiscal year to the 2020–21 fiscal year. The Controller shall not make an adjustment if taxable sales increased.

(j) A city or county may petition the Controller to use transient occupancy tax revenues, in lieu of taxable sales, for purposes of adjusting the calculation in subdivision (i), if transient occupancy tax revenues in the 2018–19 fiscal year exceeded the amount determined in subdivision (b) and the amount of decrease in transient occupancy tax revenues from the 2018–19 fiscal year to the 2020–21 fiscal year exceeds the amount of decrease in sales and use tax revenues from the 2018–19 fiscal year to the 2020–21 fiscal year.

SEC. 21.

Article 6 (commencing with Section 13020) is added to Chapter 1 of Division 6 of the Vehicle Code, to read:

Article 6. Digital Driver’s Licenses and Identification Cards

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) Any 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 0.5 percent of licensed drivers for the purpose of evaluation.

(2) A participant in any 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 any 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 that information which 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, any 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, NIST 800-53 Moderate, and cannot be intercepted while being transmitted from the department.

(c) (1) In the conduct of any pilot program pursuant to this section, any data exchanged between the department and any electronic device, between the department and the provider of any electronic device, and between any 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, any 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 any contract entered into for this purpose, the contracting entity shall delete any data collected or generated in the course of activities pursuant to that 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 other 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 other 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) Any 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 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 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 any 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 conducts a 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, to include, but not be 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. 22.

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.

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