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SB 922 – Clarifies Local Agency Authority to Recover Street and Highway Costs Through Public Service Charges

CATEGORY: Client Update for Public Agencies
CLIENT TYPE: Public Employers
DATE: Nov 05, 2026

Existing Vehicle Code section 9400.8 generally prohibits a local agency from imposing a tax, permit fee, or other charge for the privilege of using its streets or highways unless the charge falls within specified exceptions or predates June 1, 1989. Questions have arisen regarding whether this restriction limits charges imposed to recover costs associated with public services using local streets and roads.

SB 922 clarifies that a fee, charge, surcharge, or component of a charge imposed on a public-service provider or its ratepayers to recover street maintenance, repair, or other costs associated with use of local streets, roads, or highways is not a prohibited tax, permit fee, or other charge under this provision. The law expressly states that the Vehicle Code does not prohibit a local agency from imposing or collecting such a charge.

SB 922 does not require local agencies to impose a new charge. Rather, agencies that choose to recover qualifying roadway costs have clearer statutory authority to do so.

SB 922 amends section 9400.8 of the Vehicle Code.

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