Government Code section 67766
(a)
On or before April 1, 2026, the third-party consultant procured for phase one shall complete the phase one analysis described in subdivision (b) of Section 67762 and transmit it to the oversight committee. The oversight committee shall review the phase one analysis, direct the third-party consultant to make any revisions, and adopt a final phase one analysis. The commission shall transmit the final phase one analysis to all of the following entities:(1)
The subject operators.(2)
The Legislature, in compliance with Section 9795.(3)
The Transportation Agency.(4)
Each participating county transportation entity.(b)
On or before July 1, 2026, each subject operator shall identify the specific strategies in the final adopted phase one analysis that it commits to implementing, and shall adopt those strategies as formal policy or budget actions, as applicable.(c)
If the certified election results identify that the tax ordinance has been approved by the voters pursuant to this title, all of the following shall occur no later than 480 days after the election results are certified:(1)
The third-party consultant procured for phase two shall complete the analysis described in subdivision (c) of Section 67762 and transmit it to the oversight committee. The oversight committee shall review the phase two analysis, direct the third-party consultant to make any revisions, and adopt a final phase two analysis, including a regional development and financing strategy produced pursuant to clause (iv) of subparagraph (A) of paragraph (2) of subdivision (c) of Section 67762. The commission shall transmit the phase two analysis to the entities described in paragraphs (1) to (4), inclusive, of subdivision (a).(2)
The oversight committee shall specify to each subject operator what information, at a minimum, shall be included for each cost-saving measure that each operator chooses to include in its implementation plan pursuant to subdivision (d).(d)
No later than 120 days after the actions required by subdivision (c) are complete, each subject operator shall submit to the oversight committee a draft implementation plan that describes all cost-saving measures the operator plans to implement, including all information related to those measures required by the oversight committee pursuant to subdivision (c). In developing the implementation plan, the operator shall balance financial efficiency, service, and system safety.(e)
The oversight committee shall review each draft implementation plan and either approve the plan or recommend revisions to further facilitate the implementation of recommendations identified in the phase two analysis.(f)
No later than 60 days after the oversight committee takes action pursuant to subdivision (e), the subject operator’s governing board shall do all of the following:(1)
Incorporate oversight committee recommendations made pursuant to subdivision (e), if applicable, into its implementation plan.(2)
Adopt a final implementation plan and transmit it to the oversight committee and to the entities described in paragraphs (1) to (4), inclusive, of subdivision (a).(3)
(A)Notwithstanding paragraph (1), a subject operator may reject the inclusion of one or more of the recommendations made by the oversight committee pursuant to subdivision (e) if the governing board of the operator makes a written finding when adopting the final implementation plan pursuant to paragraph (2) that the recommendation has an unacceptable impact on transit service or safety or is inconsistent with other documented local policies and procedures.(B)
Within 10 business days after a subject operator adopts a finding pursuant to subparagraph (A), the commission shall transmit written notice of the adoption of that finding to the policy committees of the Legislature with jurisdiction over transportation and to the Transportation Agency. The notice shall include the subject operator’s adopted finding pursuant to subparagraph (A).(C)
Any finding adopted pursuant to subparagraph (A) shall be time limited and shall expire no later than 12 months after adoption unless renewed by the subject operator following the procedures set forth in this chapter with an updated assessment demonstrating continuing need. The subject operator shall provide annual status updates to the commission that specifically address the basis for the adopted finding, including whether the circumstances or obstacles identified as preventing compliance have been resolved, mitigated, or otherwise changed. The status update shall identify specific steps taken to address the stated obstacle and a timeline for when compliance could reasonably be achieved if the obstacle is removed.(g)
The oversight committee shall terminate after each subject operator takes the actions required pursuant to subdivision (f). Each subject operator shall adhere to the final implementation plan it adopted pursuant to subdivision (f) until the expiration of the tax approved pursuant to this title, unless doing so is infeasible due to circumstances beyond the operator’s control, in which case the operator shall make a good faith effort to comply.(h)
As a condition of receiving continued funding pursuant to Chapter 3 (commencing with Section 67750), each subject operator shall verify with the commission that it is in compliance with the requirements of this chapter. Before taking an action to withhold funds from a subject operator for noncompliance with the requirements of this chapter, the commission shall provide the operator a period of 90 days to comply before withholding funds. The commission shall withhold the funds until the operator complies with the requirements of this chapter. If the subject operator does not comply with the requirements of this chapter before the commission makes the final allocations of revenue from the tax ordinance approved by the voters pursuant to this title, the commission shall reallocate the withheld funds to support public transit expenses within the county or counties that the operator serves.
Source:
Section 67766, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV§ionNum=67766. (updated Jan. 1, 2026; accessed Dec. 15, 2025).
