AMENDED IN SENATE AUGUST 5, 2026

AMENDED IN SENATE AUGUST 3, 2026

AMENDED IN ASSEMBLY MARCH 10, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

96

Introduced by Assembly Member Wilson

January 20, 2026

An act to amend Section 39719.3 of the Health and Safety Code, and to amend Sections 187010, 187020, and 187024 of, to amend the heading of Division 19.7 (commencing with Section 187000) of, to amend the headings of Chapter 2 (commencing with Section 187020) and Chapter 3 (commencing with Section 187030) of Division 19.7 of, to amend the heading of Division 19.7 (commencing with Section 187000) of, and to add Section 187026 to, the Public Utilities Code, relating to transportation.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

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 authorizes the Inspector General to select, appoint, and employ officers and employees necessary to carry out the functions of the office, as specified.

This bill would rename the office as the Office of the Inspector General, High-Speed Rail and revise the title of the Inspector General as the Inspector General of the High-Speed Rail.

This bill would authorize the Inspector General to adopt and make use of the classifications, associated salary ranges, and other forms of compensation established or otherwise used by other state agencies identified by the Inspector General as performing comparable oversight work, as specified.

This bill would authorize the Inspector General to contract for goods and services that the Inspector General deems necessary for the furtherance of the purposes of the office. For a contract up to $1,000,000 in value, the bill would exempt the Inspector General from all contract requirements of the Public Contract Code Code, and from all information technology project requirements of the Government Code, that require oversight, review, or approval by the Department of General Services or any other state agency.

The people of the State of California do enact as follows:

SECTION 1.

(a) The Legislature finds and declares all of the following:

(1) Timely, independent oversight of the high-speed rail project is critical to both the success of the project and to ensuring that public funds used on the project are spent efficiently and effectively.

(2) The Office of the Inspector General, High-Speed Rail was created to fulfill this role.

(3) It is necessary for the Office of the Inspector General, High-Speed Rail to be independent in its design and operation so that delays in acquisition, or increased costs, related to personnel, goods, and services do not impair its ability to fulfill its mission.

(b) For the reasons stated in subdivision (a), it is the intent of the Legislature that the Office of the Inspector General, High-Speed Rail has the ability to operate independently of other state agencies when publishing reports, making hiring decisions, and entering into contracts with a value of up to $1,000,000.

SEC. 2.

Section 39719.3 of the Health and Safety Code is amended to read:

39719.3.

(a) For purposes of this section, the following definitions apply:

(1) “Fully funded” means the High-Speed Rail Authority has secured funding to complete the Merced to Bakersfield segment within the timelines identified in the most recent business plan prepared pursuant to Section 185033 of the Public Utilities Code or project update report prepared pursuant to Section 185033.5 of the Public Utilities Code and the Office of the Inspector General, High-Speed Rail has confirmed that the High-Speed Rail Authority has secured that funding.

(2) “Merced to Bakersfield segment” means a 171-mile electrified dual-track segment that is usable for high-speed rail service in the central valley from Merced to Bakersfield, with a new combined station in downtown Merced, and connections to the Amtrak San Joaquins and the Altamont Corridor Express.

(b) Notwithstanding paragraph (2) of subdivision (b) of Section 39719 or paragraph (1) of subdivision (b) of Section 39719.4, beginning with the 2022–23 fiscal year, it is the intent of the Legislature that the High-Speed Rail Authority prioritize use of the funds provided pursuant to Section 39719 or Section 39719.4 to complete the Merced to Bakersfield segment.

(c) Beginning with the 2022–23 fiscal year, the High-Speed Rail Authority shall not enter into new funding commitments with funds provided pursuant to paragraph (2) of subdivision (b) of Section 39719 or paragraph (1) of subdivision (b) of Section 39719.4 for activities outside the Merced to Bakersfield segment, except for the following purposes:

(1) Completion of environmental clearance activities and planning activities required by federal grant agreements or other existing agreements.

(2) State operations activities related to construction management and project development and enterprisewide capital expenditures.

(3) (A) Additional activities, not to cumulatively exceed five hundred million dollars ($500,000,000), that maximize the efficiency of delivering the project, excluding paragraphs (1) and (2).

(B) The High-Speed Rail Authority shall provide advance notification of work described in subparagraph (A) to the Office of the Inspector General, High-Speed Rail (OIG) and the chairs of the relevant committees of both houses of the Legislature. The OIG shall conduct a cost-benefit analysis of the proposed work outside the Merced to Bakersfield segment within 60 days of notification and make a finding as to whether or not expenditure of funds for the proposed work will result in a delay in the completion of the Merced to Bakersfield segment. After that time, the OIG shall provide its analysis to chairpersons of the committees of both houses of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees of both houses of the Legislature that consider the State Budget before contracts for projects outside of the Merced to Bakersfield segment are considered by the High-Speed Rail Authority for approval.

(C) Before expenditure of funds pursuant to this paragraph, the High-Speed Rail Authority shall provide notification of grant applications to the chairpersons of the committees of both houses of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees of both houses of the Legislature that consider the State Budget. Approval of the grant application by the Department of Finance may be authorized no sooner than 30 days after notification in writing to the chairpersons of the committees in each house of the Legislature that consider appropriations and the chairpersons of the committees and the appropriate subcommittees in each house of the Legislature that consider the State Budget.

(d) (1) This section shall become inoperative on June 30, 2030, or when the Merced to Bakersfield segment is fully funded, whichever is sooner, and shall be repealed on January 1 of the following year.

(2) The High-Speed Rail Authority shall inform the Legislature when the Merced to Bakersfield segment is fully funded in compliance with Section 9795 of the Government Code.

SEC. 3.

The heading of Division 19.7 (commencing with Section 187000) of the Public Utilities Code is amended to read:

Division 19.7. Office of the Inspector General, High-Speed Rail

SEC. 4.

Section 187010 of the Public Utilities Code is amended to read:

187010.

Unless the context requires otherwise, for purposes of this division, the following definitions apply:

(a) “Inspector General” means the Inspector General of the High-Speed Rail appointed pursuant to Section 187020.

(b) “Merced to Bakersfield segment” means a 171-mile electrified dual-track segment that is usable for high-speed rail service in the central valley from Merced to Bakersfield, with a new combined station in downtown Merced, and connections to the Amtrak San Joaquins and the Altamont Corridor Express.

(c) “Office” means the Office of the Inspector General, High-Speed Rail established pursuant to Section 187020.

(d) “Personnel issues” means matters specific to the employment relationship between the High-Speed Rail Authority and its employees, including, but not limited to, hiring and promotional decisions, performance reviews, progressive discipline, adverse actions, grievances, merit issue complaints, workplace harassment, discrimination, or possible wage or supply theft having an immaterial effect, as determined by the Inspector General, on the planning, delivery, and operation of the project. For purposes of this division, “personnel issues” does not mean fraud, waste, abuse, or mismanagement by the High-Speed Rail Authority or its employees having a material effect, as determined by the Inspector General, on the planning, delivery, and operation of the project.

(e) “Project” means the high-speed rail project undertaken by the High-Speed Rail Authority pursuant to Division 19 (commencing with Section 185000) of this code and Chapter 20 (commencing with Section 2704) and Chapter 20.5 (commencing with Section 2704.75) of Division 3 of the Streets and Highways Code.

SEC. 5.

The heading of Chapter 2 (commencing with Section 187020) of Division 19.7 of the Public Utilities Code is amended to read:

Chapter 2. Office of the Inspector General, High-Speed Rail

SEC. 6.

Section 187020 of the Public Utilities Code is amended to read:

187020.

(a) (1) There is hereby created the Office of the Inspector General, High-Speed Rail.

(2) The Governor shall appoint the Inspector General of the High-Speed Rail to a four-year term from a list of three qualified individuals nominated by the Joint Legislative Audit Committee. The Joint Legislative Audit Committee shall select the three qualified individuals from a pool of candidates after conducting a comprehensive search for qualified individuals. The Joint Legislative Audit Committee shall provide at least 120 days’ notice that it is seeking applicants for nomination by providing notice in the Journals of the Senate and the Assembly and by advertising in appropriate newspapers and with nationally acknowledged professional journals and associations. Names for consideration by the Joint Legislative Audit Committee may be submitted by members of the Legislature, professional organizations, individuals, and other entities. The Inspector General shall be chosen without reference to party affiliation and solely on the ground of fitness to perform the duties of the Inspector General of the High-Speed Rail.

(3) The Legislature and the Governor may provide suggested qualifications to the Joint Legislative Audit Committee to consider when making its nominations.

(b) The office shall not be a subdivision of any other governmental entity.

(c) The Inspector General may not be removed from office by the Governor during that term, except for good cause.

SEC. 7.

Section 187024 of the Public Utilities Code is amended to read:

187024.

(a) Subject to applicable law, the Inspector General shall select, appoint, and employ officers and employees necessary to carry out the functions of the office. In making these selections, the Inspector General shall ensure that those officers and employees have the requisite training and experience to enable the Inspector General to carry out their duties effectively.

(b) To recruit and retain qualified officers and employees with the relatively higher level of education, expertise, knowledge, and ability necessary to perform time-sensitive, technically complex reviews of the project, the Inspector General may, notwithstanding any other law, adopt and make use of the classifications, associated salary ranges, and other forms of compensation established or otherwise used by other state agencies identified by the Inspector General as performing comparable oversight work, so long as the Inspector General determines that any individual to be hired meets or exceeds applicable eligibility requirements and minimum qualifications.

SEC. 8.

Section 187026 is added to the Public Utilities Code, to read:

187026.

(a) The Inspector General may contract for goods and services that the Inspector General deems necessary for the furtherance of the purposes of the office.

(b) For a contract up to one million dollars ($1,000,000) in value, the Inspector General shall be exempt from all contract requirements of the Public Contract Code Code, and from all information technology project requirements of the Government Code, that require oversight, review, or approval by the Department of General Services or any other state agency.

SEC. 9.

The heading of Chapter 3 (commencing with Section 187030) of Division 19.7 of the Public Utilities Code is amended to read:

Chapter 3. Responsibilities of the Inspector General of the High-Speed Rail