AMENDED IN ASSEMBLY MARCH 18, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

98

Introduced by Assembly Member Davies

February 20, 2026

An act to amend Section 526a of the Code of Civil Procedure, relating to civil actions.

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

LEGISLATIVE COUNSEL’S DIGEST

Existing law provides that any person who lives, works, owns property, or attends school in the jurisdiction of a local agency, as defined, who is assessed for and is liable to pay, or within one year before the commencement of the action, has paid, a tax in the local agency, may maintain an action to obtain a judgment restraining and preventing an illegal expenditure of, waste of, or injury to the estate, funds, or other property of the local agency, as specified. Under existing law, a tax that funds the defendant local agency is sufficient to confer standing as a taxpayer, including, but not limited to, an income tax, a sales and use tax or transaction and use tax initially paid by a consumer to a retailer, a property tax, or a business license tax.

This bill would expand the scope of this cause of action and standing to permit a person to maintain an action against the state or a state agency. entity.

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

SECTION 1.

Section 526a of the Code of Civil Procedure is amended to read:

526a.

(a) An action to obtain a judgment, restraining and preventing any illegal expenditure of, waste of, or injury to, the estate, funds, or other property of a governmental agency, entity, may be maintained against any officer thereof, or any agent, or other person, acting in its behalf, either by a resident therein, or by a corporation, who is assessed for and is liable to pay, or, within one year before the commencement of the action, has paid, a tax that funds the defendant governmental agency, entity, including, but not limited to, the following:

(1) An income tax.

(2) A sales and use tax or transaction and use tax initially paid by a consumer to a retailer.

(3) A property tax, including a property tax paid by a tenant or lessee to a landlord or lessor pursuant to the terms of a written lease.

(4) A business license tax.

(b) This section does not affect any right of action in favor of a governmental agency, entity or any public officer; provided, that no injunction shall be granted restraining the offering for sale, sale, or issuance of any municipal bonds for public improvements or public utilities.

(c) An action brought pursuant to this section to enjoin a public improvement project shall take special precedence over all civil matters on the calendar of the court except those matters to which equal precedence on the calendar is granted by law.

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

(1) “Governmental agency” entity” means the state or a state agency, entity, a city, town, county, or city and county, or a district, public authority, or any other political subdivision in the state. political subdivision, or any other state or local governmental body.

(2) “Resident” means a person who lives, works, owns property, or attends school in the jurisdiction of the defendant governmental agency. entity.