AB 2407 California Assembly · 2025-2026 Regular Session

High-Speed Rail Authority Office of the Inspector General: contract reviews: audit standards.

Summary

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.

Issues: ✓ Transportation

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 20, 2026 Last action Mar 10, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

02/20/26 - Introduced → 03/09/26 - Amended Assembly · 7 edits · Mar 9, 2026

MODERATE

AB 2407 was dramatically expanded from a minor nonsubstantive cleanup of high-speed rail definitions into a substantive oversight reform bill for the High-Speed Rail Authority Office of the Inspector General. The amended version adds new duties requiring the Inspector General to review financial disclosures and identify conflicts of interest for officials involved in contract decisions (prioritizing contracts over $20 million), mandates that audits follow federal Government Auditing Standards, and requires audit reports to be made publicly available immediately upon completion.

Scope change

Expanded from a nonsubstantive definitional cleanup of Section 185012 to a comprehensive oversight reform bill adding new Inspector General duties, audit standards requirements, and public transparency obligations under Sections 187030 and 187037 of the Public Utilities Code.

SCOPE

The bill now amends Section 187030 and adds new Section 187037 of the Public Utilities Code, expanding scope from a minor definitional cleanup to comprehensive Inspector General oversight reform for the High-Speed Rail Authority.

Section 187030 explicitly prohibits the Inspector General from investigating personnel issues regarding employees of the High-Speed Rail Authority and clarifies that nothing in the division infringes on the Authority's own audits and controls.

REQUIREMENT

New duty requiring the Inspector General 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, with priority given to contracts or contract changes valued over $20 million.

Section 187030 now codifies a detailed list of Inspector General duties including independent fiscal estimates, monitoring Merced-to-Bakersfield segment milestones, reviewing change order processes, auditing contract compliance with state and federal laws, and investigating billing and invoicing by entities receiving project funds.

ENFORCEMENT

New Section 187037 requires the Inspector General to complete audits in a timely manner and pursuant to the Government Auditing Standards published by the Comptroller General of the United States.

New Section 187037 requires the Inspector General to make a report of any audit or review available to the public immediately upon completion.

FISCAL

Fiscal committee review changed from 'no' to 'yes,' indicating the bill now has fiscal implications requiring committee review.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 10, 2026

Committee

Re-referred to Com. on TRANS.

lower

Mar 9, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on TRANS. Read second time and amended.

lower

Mar 9, 2026

Committee

Referred to Com. on TRANS.

lower

Feb 21, 2026

Lower · Passed

From printer. May be heard in committee March 23.

lower

1 primary · 0 co-sponsors