Government Code section 67788
(a)
After receiving a recommendation from an ad hoc adjudication committee pursuant to Section 67786, the commission shall approve the recommendation and, if the ad hoc adjudication committee recommended corrective action, provide the subject operator with a period of at least 90 days to comply.(b)
(1)If the subject operator does not take corrective action within the period granted by the commission pursuant to subdivision (a), then the ad hoc adjudication committee may direct to commission to withhold up to an additional 3.5 percent of funding allocated to the subject operator pursuant to Chapter 3 (commencing with Section 67750) in an amount the ad hoc adjudication committee deems proportionate to the issue that was the subject of the petition. The total amount withheld from a subject operator pursuant to this chapter at any given time shall not exceed 7 percent.(2)
The commission shall withhold the funds until either of the following occurs:(A)
The operator complies with the corrective action and the ad hoc adjudication committee, with an affirmative vote from at least one committee member of every county represented in the committee, makes a finding that the operator has complied with the requirements and approves the return of funding.(B)
After 180 days of the submission of the recommendation, the ad hoc adjudication committee, with an affirmative vote from the majority of the committee, makes a finding that the operator has complied with the requirements and approves the return of funding.(c)
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.(d)
If there is a lawsuit involving a decision made by an ad hoc adjudication committee, the sole remedy against the commission shall be limited to either the release or withholding, as the case necessitates, of the funds at issue in the ad hoc adjudication committee decision, and legal fees shall not be recoverable.
Source:
Section 67788, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV§ionNum=67788. (updated Jan. 1, 2026; accessed Dec. 15, 2025).
