Transportation.

The California Assembly Budget Committee proposes significant changes to transportation regulations and funding mechanisms, with provisions spanning driver licensing, Olympic Games preparations, and motor vehicle enforcement. The legislation modifies capital outlay funding procedures, adjusts DMV service fees, and establishes temporary traffic management measures for the 2028 Olympic and Paralympic Games.

The Department of Finance gains authority to reallocate funding within the Department of Transportation's capital outlay support program, provided adjustments result in net-zero changes. These modifications require 30-day advance notice to legislative oversight committees. The bill reinstates a $1 transaction fee for DMV private industry partners from July 2025 through December 2028 to fund system improvements.

Several implementation dates shift to January 2029, including specialized driver license examinations and enhanced penalties for motor vehicle exhibitions of speed. The legislation revises how the DMV processes National Marrow Donor Program enrollment, replacing automatic solicitation with a memorandum of understanding approach.

For the 2028 Olympic and Paralympic Games, transportation authorities may designate high-occupancy vehicle lanes for exclusive use by vehicles displaying approved Olympic organizer identifiers. The Department of Transportation and Highway Patrol must verify these identifiers through serial numbers. The bill allocates $1,000 from the State Highway Account for Olympic-related transportation projects, with provisions allowing increases up to $20 million subject to legislative notification.

The measure strengthens enforcement mechanisms for motor vehicle violations, particularly regarding speed contests and exhibitions. Courts receive expanded authority to suspend or restrict driving privileges, with specific provisions for hardship considerations and employment-related travel needs.