20250AB__269098AMD INTRODUCED 2026-02-20 AMENDED_ASSEMBLY 2026-03-18 2025 AB AMD Introduced by Assembly Member Davies LEAD_AUTHOR ASSEMBLY Davies

An act to amend

Section 526a of the Code of Civil Procedure, relating to civil actions. civil actions Civil actions: provisional remedies: injunctions. 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 entity. MAJORITY NO NO NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION

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 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 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 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 entity” means the state or a state entity, a city, town, county, or city and county, or a district, public authority, 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 entity.