Assembly BillIntroducedPublic Utilities
AB 2407: High-Speed Rail Authority Office of the Inspector General: contract reviews: audit standards.
What AB 2407 does, verified March 11, 2026
The bill aims to enhance oversight of the High-Speed Rail Authority by establishing a contract review process for the inspector general. The inspector general will review contracts and contracting practices to ensure they align with state and federal laws and policies. Additionally, the inspector general will review financial disclosures and identify potential conflicts of interest for officials involved in contract decision-making. The inspector general must complete the audit or review in a timely manner and make the report publicly available upon completion. This increased oversight is intended to promote transparency and accountability in the High-Speed Rail Authority's operations.
Bill journey
1IntroducedCurrent
2In CommitteePending
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: Re-referred to Com. on TRANS. (2026-03-10)Alert me
Author and sponsors
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| Mar. 10, 2026 | Re-referred to Com. on TRANS. |
| Mar. 09, 2026 | From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended. |
| Mar. 09, 2026 | Referred to Com. on TRANS. |
| Feb. 21, 2026 | From printer. May be heard in committee March 23. |
| Feb. 20, 2026 | Read first time. To print. |
Latest bill textAmended version, March 9, 2026 · 1,017 words
| Amended IN Assembly March 09, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2407
| Introduced by Assembly Member Macedo |
February 20, 2026 |
An act to amend Section 185012 of 187030 of, and to add Section 187037 to, the Public Utilities Code, relating to high-speed rail.
LEGISLATIVE COUNSEL'S DIGEST
AB 2407, as amended, Macedo. High-speed rail. High-Speed Rail Authority Office of the Inspector General: contract reviews: audit standards.
Existing law creates the High-Speed Rail Authority to develop and implement a high-speed rail system in the state. Existing law creates the High-Speed Rail Authority Office of the Inspector General and authorizes the High-Speed Rail Authority Inspector General to initiate an audit or review regarding oversight related to delivery of the high-speed rail project undertaken by the authority and the selection and oversight of contractors related to that project. Existing law imposes other duties and responsibilities on the Inspector General relating to the oversight of the authority, including the duty and responsibility to review the authority’s contracts and contracting practices to determine whether they are, among other things, executed consistent with state and federal laws and policies.
This bill would also impose on the Inspector General the duty and responsibility to review financial disclosures and identify conflicts of interest for officials who make, or participate in making, decisions to execute contracts, or contract changes, for the authority.
This bill would require the Inspector General to complete an audit in a timely manner and pursuant to the “Government Auditing Standards” published by the Comptroller General of the United States. Immediately upon completion of an audit or review, the bill would require the Inspector General to make a report of the audit or review available to the public.
The California High-Speed Rail Act creates the High-Speed Rail Authority to develop and implement a high-speed rail system in the state, with specified powers and duties. Existing law defines certain terms in that regard.
This bill would make nonsubstantive changes to these definitions.
The people of the State of California do enact as follows:
SECTION 1.
Section 187030 of the Public Utilities Code is amended to read:187030.
(a) The Inspector General may, under policies developed by the Inspector General, initiate an audit or review on the Inspector General’s own accord regarding oversight related to delivery of the project, and the selection and oversight of contractors related to the project. Following a completed audit or review, the Inspector General may perform a followup audit or review to determine what measures the High-Speed Rail Authority implemented to address the Inspector General’s findings and to assess the effectiveness of those measures. In considering what audits and reviews to perform, the Inspector General may consider input received from the Legislature, the Governor, and the High-Speed Rail Authority.(b) The duties and responsibilities of the Inspector General shall include, but are not limited to, all of the following:
(1) Commencing with the project update report required pursuant to Section 185033.5 that is due on or before March 1, 2023, to conduct independent fiscal estimates and reviews of the High-Speed Rail Authority’s plans and estimates for project advancement and make findings of the reasonableness of those plans and estimates.
(2) Commencing with the project update report required pursuant to Section 185033.5 that is due on or before March 1, 2023, to monitor progress toward meeting the milestones toward the implementation of the successful completion of the Merced to Bakersfield segment of the project, consistent with subdivision (a).
(3) To conduct audits and investigations relating to delivery of the project.
(4) To identify best practices in the delivery of capital projects and recommend policies to enable the High-Speed Rail Authority to adopt these practices when practicable.
(5) To recommend policies promoting efficiency in the administration of programs and operations as part of any audit findings.
(6) To review the High-Speed Rail Authority process for considering proposed and executed change orders and to make any recommendations to ensure the process is appropriate for determining the merit and reasonableness of change orders.
(7) To review the High-Speed Rail Authority’s contracts and contracting practices to determine whether they are executed consistent with state and federal laws and policies and are conducted in a fair and reasonable manner, providing the state with valued services at reasonable cost.
(8) To review proposed agreements to ensure that they are in the best interest of the state, the High-Speed Rail Authority’s statutory mission, and state priorities.
(9) To review or investigate adherence to contract provisions, including, but not limited to, billing and invoicing requirements, of any public or private entity, including a High-Speed Rail Authority contractor, that receives project funds.
(10) (A) To review financial disclosures and identify conflicts of interest for officials who make, or participate in making, decisions to execute contracts, or contract changes, for the High-Speed Rail Authority.
(B) For purposes of this paragraph, priority shall be given to contracts or contract changes with a value greater than twenty million dollars ($20,000,000).
(c) The Inspector General shall not investigate personnel issues regarding employees of the High-Speed Rail Authority.
(d) Nothing in this division is intended to infringe upon the authority of the High-Speed Rail Authority’s own audits and controls.
SEC. 2.
Section 187037 is added to the Public Utilities Code, to read:187037.
(a) The Inspector General shall complete any audit conducted pursuant to subdivision (a) of Section 187030 in a timely manner and pursuant to the “Government Auditing Standards” published by the Comptroller General of the United States.(b) Immediately upon completion of an audit or review conducted pursuant to subdivision (a) of Section 187030, the Inspector General shall make a report of the audit or review available to the public.
As used in this division, unless the context requires otherwise, the following definitions apply:
(a)“Authority” means the High-Speed Rail Authority.
(b)“Department” means the Department of Transportation.
(c)“High-speed rail” means intercity passenger rail service that uses an alignment and technology that makes it capable of sustained speeds of 200 miles per hour or greater.
Text of AB 2407 as amended, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions