California Policy Center
Legislation & Regulations
by California Policy Center
September 11, 2026
Governor Signs CPC-Sponsored Local Government Transparency Bill
Governor Newsom has signed Senate Bill 1126, a California Policy Center-sponsored bill authored by Senator Steven Choi, Ph.D. (R-Irvine) that will make it easier for taxpayers to access the audited financial records of their local governments online. The new law will help residents hold local leaders accountable and identify financial problems before they become crises.
Taxpayers have a right to know where their money goes. While many California local governments post their annual financial audits online, others bury the records in a maze of web links or don’t post them at all. That means residents often must file formal records requests just to see basic financial information about their own community.
SB 1126 fixes the problem by establishing a uniform online transparency standard for cities, counties and independent special districts. Under the new law, local governments that maintain websites must post their audited financial statements or annual comprehensive financial reports online within 30 days of completion. The records must remain publicly accessible without a password or fee and stay online for at least three years.
“Taxpayers should not have to file a public records request or visit a government office simply to understand how their money is being managed,” said Senator Choi. “SB 1126 brings local financial reporting into the modern era and gives Californians convenient access to the information they need to hold their government accountable.”
The need for SB 1126 became clear through CPC’s work examining the financial health of California’s local governments. John Moorlach, director of CPC’s Center for Public Accountability, has spent years analyzing and ranking the fiscal condition of California cities — and calling out cities that are months and even years late in filing their Annual Comprehensive Financial Reports (ACFR).
In October 2024, CPC launched its Local Fiscal Health Dashboard, which revealed that a whopping 169 cities, counties and school districts had still not submitted ACFRs for 2023. Twenty-six of those local governments were nevertheless asking voters to okay a local tax increase and/or approve new bonds on the November 2024 ballot.
CPC researchers also noted a troubling pattern: local governments in the weakest financial condition were frequently among those most delayed in releasing their financial statements.
To ensure local governments file their financial reports on time, last year CPC sponsored Senate Bill 595, authored by Sen. Choi, which was also signed into law by Gov. Newsom.
Together, SB 595 and SB 1126 address both sides of the transparency problem: making sure local governments submit their audited financial reports on time and that taxpayers can actually find them.
SB 1126’s new online posting requirements take effect Jan. 1, 2028.
“Transparency is the foundation of good government,” said Lance Christensen, Vice President of Government Affairs and Education Policy at California Policy Center. “We thank Senator Choi for championing this important taxpayer protection.”
