(

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 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 of the Government Code. (

e) This

section shall become inoperative on July 1, 2026, and, as of January 1, 2027, is repealed.