AB 2690
Civil actions: provisional remedies: injunctions.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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- Passed Assembly
- Passed Senate
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- Became Law
Bill overview
This bill expands the types of lawsuits a person can bring to challenge actions by the state or state agencies. It allows individuals to seek a court order (injunction) to stop wasteful spending or harm to public property if they pay taxes that fund the agency being challenged. The bill clarifies that taxes like income tax, sales tax, property tax, and business license taxes can provide the basis for such a lawsuit.
Key provisions
- Allows lawsuits against the state or state agencies.
- Expands standing to include individuals who pay taxes funding the agency.
- Specifically lists tax types that can support a claim (income, sales, property, business license).
- Defines ‘Governmental agency’ to include state, cities, counties, and other local governmental bodies.
- Establishes a priority for lawsuits seeking to enjoin public improvement projects.
- Excludes injunctions against municipal bond offerings for public improvements.
Who is affected
- State of California
- State agencies
- Taxpayers
- Residents of California
- Local governmental bodies
Notable changes
- Previously limited to local agencies; now includes the state and its agencies.
- Expands the types of taxes that can support a lawsuit.
- Creates a priority for lawsuits related to public improvement projects.
Arguments in favor
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AB2690:v98#DOCUMENT
Bill Start
| Amended IN Assembly March 18, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2690
| Introduced by Assembly Member Davies |
| February 20, 2026 |
An act to amend Section 526a of the Code of Civil Procedure, relating to civil actions.
LEGISLATIVE COUNSEL'S DIGEST
AB 2690, as amended, Davies. 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 agency. entity.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
Bill Text
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.