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<ns0:Id>20250AB__240798AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-09</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Macedo</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Macedo</ns0:Name>
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<ns0:Title> An act to amend Section 187030 of, and to add Section 187037 to, the Public Utilities Code, relating to high-speed rail. </ns0:Title>
<ns0:RelatingClause>high-speed rail</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>High-Speed Rail Authority Office of the Inspector General: contract reviews: audit standards.</ns0:Subject>
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<html:p>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.</html:p>
<html:p>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.</html:p>
<html:p>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.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 187030 of the
<ns0:DocName>Public Utilities Code</ns0:DocName>
is amended to read:
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<ns0:Num>187030.</ns0:Num>
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<html:p>
(a)
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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.
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<html:p>
(b)
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The duties and responsibilities of the Inspector General
shall include, but are not limited to, all of the following:
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(1)
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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.
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(2)
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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).
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<html:p>
(3)
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To conduct audits and investigations relating to delivery of the project.
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<html:p>
(4)
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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.
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<html:p>
(5)
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To recommend policies promoting efficiency in the administration of programs and operations as part of any audit findings.
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(6)
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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.
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(7)
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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.
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(8)
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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.
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(9)
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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.
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(10)
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(A)
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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.
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<html:p>
(B)
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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).
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(c)
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The Inspector General shall not investigate personnel issues regarding employees of the High-Speed Rail Authority.
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(d)
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Nothing in this division is intended to infringe upon the authority of the High-Speed Rail Authority’s own audits and controls.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 187037 is added to the
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, to read:
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<ns0:Num>187037.</ns0:Num>
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<html:p>
(a)
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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.
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(b)
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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.
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