SB 623 California Senate · 2025-2026 Regular Session

Automobile accidents: civil actions: transportation network companies.

Summary

(1) Existing law provides that in an action for the breach of an obligation not arising from contract, the measure of damages, except as provided, is the amount that will compensate for all the detriment proximately caused thereby, whether it could have been anticipated or not. This bill, with respect to a civil case, claim, action, or arbitration against a network company, its subsidiary, or an app-based driver, as defined, arising from an automobile accident, would, except as specified, prohibit the maximum recovery of a plaintiff for damages for any medical expense for services rendered by a lien-based provider, as defined, from exceeding the 70th percentile of FAIR Health, Inc.'s billed charges, or the 70th percentile of a comparable commercially recognized billed charges database for the same or similar service in the applicable geographic area at the time the service was rendered. The bill would prohibit certain evidence from being introduced that exceeds the recoverable amount. This bill would provide that if a medical lien, as defined, receivable, or right to payment has been sold or otherwise transferred, the maximum recoverable medical expense damages shall not exceed the total consideration paid or payable in connection with the transaction to acquire the lien, receivable, or right to payment, as provided. The bill would require any agreement relating to the sale or transfer of a medical lien, receivable, or right to payment, and the consideration paid or payable therefor, to be discoverable, and would prohibit an undisclosed lien sale or transfer from being asserted against a defendant, insurer, settlement, judgment, or settlement proceeds. The bill would also require certain medical lien financial relationships and attorney referral information to be discoverable. This bill would make it unlawful for an attorney representing a plaintiff under a contingency fee agreement in a civil claim, action, or arbitration, as described above, to refer a client to a health care provider in which the attorney or a member of the attorney's immediate family has a direct ownership interest. The bill would also make it unlawful for an attorney to fee split or receive other specified compensation in connection with the furnishing of lien-based provider medical treatment for a plaintiff and would make it unlawful for an attorney or law firm to provide specified compensation for referrals of clients to lien-based providers for lien-based treatment. The bill would also make other actions related to the reduction of a medical lien unlawful, as specified. This bill would provide that these provisions are severable. (2) The Passenger Charter-party Carriers' Act defines a transportation network company as an organization, whether a corporation, partnership, sole proprietor, or other form, operating in California that provides prearranged transportation services for compensation using an online-enabled platform to connect passengers with drivers using a personal vehicle. Existing law requires a transportation network company to conduct, or have a third party conduct, a local and national criminal background check for each participating driver, as specified, and prohibits a transportation network company from contracting with, employing, or retaining a driver if the driver, among other things, is currently registered on the United States Department of Justice National Sex Offender Public website, has been convicted of any of certain terrorism-related or human trafficking felonies or a violent felony or, within the previous 7 years, has been convicted of any misdemeanor assault or battery, any domestic violence offense, driving under the influence of alcohol or drugs, or any of a specified list of felonies. A violation of the act is a misdemeanor punishable by a fine, imprisonment, or both a fine and imprisonment. This bill would additionally prohibit a transportation network company from contracting with, employing, or retaining a driver if the driver has been convicted of specified offenses or, within the previous 7 years, has been convicted of other specified offenses, including driving under the influence of an alcoholic beverage or drug. The bill would require the background check to be performed prior to the activation of a driver's account and once annually thereafter, as provided. By expanding the scope of a crime, the bill would impose a state-mandated local program. (3) Existing law, the Unruh Civil Rights Act, provides that all persons within the jurisdiction of this state are entitled to full and equal accommodations in all business establishments of every kind whatsoever, regardless of their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status. This bill would provide that notwithstanding that act, a transportation network company or charter-party carrier of passengers, as defined, may allow a woman passenger on its online-enabled application or platform or a participating woman driver to indicate a preference to be matched with a woman driver or woman passenger, respectively, and facilitate passenger-driver matches based on such preferences. The bill would make these provisions apply retroactively, as provided. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Jun 2026

Senate Passage

Jan 2026

Assembly Passage

Jun 2026

Signed into Law

Jun 2026

Introduced Feb 20, 2025 Signed Jun 25, 2026

Maddy AI version diff · 6 comparisons

What changed between versions

06/25/26 - Enrolled → SB623 · 4 edits

MODERATE

This diff reflects the transition of SB 623 from its enrolled version (as passed by both chambers) to its final chaptered law format after gubernatorial approval. The substantive policy content is identical between the two versions; the changes are limited to formatting, metadata, and the addition of the chapter number and signing dates.

TECHNICAL

The bill was assigned Chapter 17 and given formal Governor approval date of June 25, 2026 and Secretary of State filing date of June 25, 2026.

The enrolled bill's blank fields for the Governor's receipt date and time were removed, replaced by the confirmed signing date.

Digest key metadata was added showing Vote: MAJORITY, Appropriation: NO, Fiscal Committee: YES, Local Program: YES.

The document format changed from a formal enrolled bill layout (with Senate/Assembly passage lines and page headers) to a web page rendering of the chaptered law with navigation elements and version history.

06/18/26 - Amended Assembly → 06/22/26 - Amended Assembly · 8 edits · Jun 22, 2026

MODERATE

SB 623 was substantially expanded beyond its original veterans' bond purpose to include a new civil code section capping medical lien recoveries in rideshare auto accident cases, stricter background check requirements for rideshare drivers, and a gender-based matching provision for rideshare platforms. The original $1.25 billion veterans' bond act is retained but renumbered to later sections. This transforms the bill from a single-purpose veterans' housing measure into a multi-topic package combining veterans' benefits with transportation network company (TNC) regulation and medical lien reform.

SCOPE

Added new Section 3333.9 to the Civil Code establishing a cap on medical expense recovery in auto accident cases against rideshare companies, their subsidiaries, or app-based drivers. The cap is set at the 70th percentile of FAIR Health billed charges (or comparable database) for the same or similar service in the applicable geographic area. Applies to accidents on or after January 1, 2027.

Amended Section 5445.2 of the Public Utilities Code to expand disqualifying offenses for rideshare drivers, adding weapons charges, protective order violations, and DUI of alcohol or drugs within the past 7 years. Requires background checks before driver account activation and annually thereafter. Sets penalties of $1,000 to $5,000 per violation.

Added new Section 5451 to the Public Utilities Code allowing rideshare companies and charter-party carriers to facilitate gender-based matching (women passengers matched with women drivers or vice versa), notwithstanding the Unruh Civil Rights Act. This provision applies retroactively, including to civil litigation initiated before enactment.

State-mandated local program designation changed from 'no' to 'yes' due to the expanded scope of crimes in the rideshare driver background check provisions.

REQUIREMENT

Added a provision that when a medical lien has been sold, assigned, financed, factored, or otherwise transferred, the maximum recoverable medical expense damages cannot exceed the total consideration paid to acquire the lien. Lien sale agreements must be discoverable and disclosed within 30 days of the transaction. Undisclosed lien sales cannot be asserted against defendants, insurers, or settlements.

Added a prohibition on lien-based providers from entering into agreements to reduce medical liens before services are rendered. Violations may subject the provider to professional discipline.

ENFORCEMENT

Added prohibitions on attorneys: (1) referring clients to health care providers in which the attorney or immediate family has a direct ownership interest, (2) fee splitting or receiving kickbacks/rebates/referral compensation connected to lien-based provider treatment, (3) providing bonuses or incentives for referrals to lien-based providers, and (4) charging additional fees based on lien reduction. Violations subject attorneys to State Bar professional discipline.

TECHNICAL

Bill authorship updated: Senator Archuleta is now listed as 'Archuleta Umberg' and Assembly Member Papan is added as a co-author. Assembly Member Schiavo moved from the primary co-author line to the coauthors list.

06/03/26 - Amended Assembly → 06/18/26 - Amended Assembly · 7 edits · Jun 18, 2026

MODERATE

SB 623 was significantly narrowed in scope by removing all property tax exemption provisions (the amendment to Section 218 of the Revenue and Taxation Code that would have allowed homeowners' exemptions to stack with veterans' or disabled veterans' exemptions). The bill now focuses exclusively on the Veterans' Bond Act of 2026, authorizing $1.25 billion in general obligation bonds for farm and home aid for veterans. Additionally, the mechanism for immediate effect was changed from a tax levy to an urgency statute declaration.

SCOPE

The entire amendment to Section 218 of the Revenue and Taxation Code was removed. This provision would have allowed the $7,000 homeowners' property tax exemption to also apply to property receiving the veterans' exemption ($4,000) or disabled veterans' exemption ($100,000-$150,000), effective January 1, 2027, if a related Senate Constitutional Amendment was approved by voters.

Four additional Assembly coauthors were added: Members Davies, Jeff Gonzalez, Irwin, and Ramos (in addition to Schiavo who was previously listed).

FISCAL

Removed the provision stating no state reimbursement would be required for property tax revenues lost by local agencies due to the exemption stacking (former Section 3).

ENFORCEMENT

Removed the provision requiring the Secretary of State to submit a related Senate Constitutional Amendment to voters at the November 3, 2026 election (former Section 4).

TECHNICAL

The mechanism for immediate effect was changed from a tax levy under Article IV of the California Constitution to an urgency statute declaration. The new language includes a specific finding that immediate effect is necessary so the bond act can be placed on the November 3, 2026 ballot in furtherance of an orderly program of providing farm and home purchase benefits to veterans.

Section 998.754(c) was restructured from a single dense paragraph into numbered subparagraphs (1) through (5), with sub-subparagraphs (A) and (B) under (1), improving readability of the debt service payment provisions.

Minor drafting corrections throughout the bond act sections: singular/plural adjustments (e.g., 'any bonds are outstanding' to 'any bond is outstanding'), 'Whenever' changed to 'If' in Section 998.760(b), and 'may be cited' expanded to 'shall be known, and may be cited' in Section 998.750.

02/20/25 - Introduced → 06/03/26 - Amended Assembly · 6 edits · Jun 3, 2026

MODERATE

SB 623 was substantially expanded in the Assembly to add an entirely new Veterans' Bond Act of 2026, authorizing $1.25 billion in state general obligation bonds to fund farm and home aid for veterans under the existing Veterans' Farm and Home Purchase Act of 1974. The original property tax exemption provisions (allowing homeowners' exemptions on veteran-exempt property) were retained but restructured as a separate section. The legislative vote requirement was raised from a simple majority to a two-thirds supermajority.

Scope change

The bill's scope expanded from a single property tax exemption measure to a dual-purpose bill that also authorizes a $1.25 billion bond program for veterans' farm and home purchase assistance. Both the constitutional amendment (for the tax exemption) and the bond act will be submitted to voters at the November 3, 2026 statewide general election.

FISCAL

Added Article 5ab (Sections 998.750-998.764) to the Military and Veterans Code, authorizing up to $1,250,000,000 in state general obligation bonds to create a fund for farm and home aid for veterans. The Department of Veterans Affairs is designated as the administering board.

Added appropriation from the General Fund for bond principal and interest payments, plus authority for the Director of Finance to withdraw funds for unsold bonds and for the Pooled Money Investment Board to make loans for bond sale purposes.

REQUIREMENT

Added provisions requiring annual financial surveys by an independent public accountant while bonds are outstanding, with reports to the Secretary of Veterans Affairs, California Veterans Board, legislative policy committees, and the Veterans' Finance Committee.

ENFORCEMENT

Legislative vote requirement changed from simple majority to two-thirds supermajority, making passage more difficult in both chambers.

SCOPE

Added a finding that bond proceeds are not 'proceeds of taxes' under Article XIII B of the California Constitution, meaning their disbursement is not subject to the state's budgetary limitations on tax revenue spending.

TECHNICAL

Added provisions for bond refunding, federal tax-exempt status maintenance (including separate accounts for proceeds and earnings), and a 3 percent maximum discount below par value when selling bonds.

Floor votes · Senate Jan 29, 2026 · Assembly Jun 25, 2026

How they voted

39–0

Passed · 1 other

Total votes 40

Jan 29, 2026

D Democratic30

29 Yea 1

96% Yea

R Republican10

10 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 25, 2026

Signed into law

Approved by the Governor.

legislature

Jun 25, 2026

Upper · Passed

Assembly amendments concurred in. (Ayes 36. Noes 0. Page 5002.) Ordered to engrossing and enrolling.

upper

Jun 25, 2026

Introduced

In Senate. Concurrence in Assembly amendments pending.

upper

Jun 25, 2026

Lower · Passed

Read third time. Passed. (Ayes 75. Noes 0. Page 5854.) Ordered to the Senate.

lower

Jun 23, 2026

Lower · Passed

From committee: Do pass. (Ayes 12. Noes 0.) (June 23).

lower

Jun 22, 2026

Committee

Re-referred to Com. on JUD. pursuant to Assembly Rule 96.

lower

Jun 22, 2026

Lower · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on H. & C.D.

lower

Jun 18, 2026

Lower · Passed

Read second time and amended. Re-referred to Com. on H. & C.D.

lower

Jun 17, 2026

Lower · Passed

From committee: Do pass as amended and re-refer to Com. on H. & C.D. (Ayes 8. Noes 0.) (June 16).

lower

Jun 3, 2026

Lower · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on M. & V.A.

lower

May 7, 2026

Committee

Re-referred to Coms. on M. & V.A. and REV. & TAX. pursuant to Assembly Rule 96.

lower

May 4, 2026

Committee

Referred to Coms. on REV. & TAX. and M. & V.A.

lower

Jan 29, 2026

Upper · Passed

Read third time. Passed. (Ayes 39. Noes 0. Page 3324.) Ordered to the Assembly.

upper

Jan 22, 2026

Upper · Passed

From committee: Do pass. (Ayes 7. Noes 0. Page 3269.) (January 22).

upper

Jan 14, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 0. Page 3225.) (January 14). Re-referred to Com. on APPR.

upper

Jan 14, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on M. & V.A. (Ayes 5. Noes 0. Page 3225.) (January 14). Re-referred to Com. on M. & V.A.

upper

Mar 5, 2025

Committee

Referred to Coms. on REV. & TAX. and M. & V.A.

upper

Feb 20, 2025

Introduced

Introduced. Read first time. To Com. on RLS. for assignment. To print.

upper

1 primary · 1 co-sponsor