Governor Signs SB 1126 Requiring Online Posting of Local Agency Audited Financial Reports

09.15.2026

On August 22, 2026, Governor Newsom signed Senate Bill 1126 (Choi) (“SB 1126”), a bill intended to increase public access to local government financial information by requiring cities, counties, and independent special districts that maintain a website to post certain financial reports online. The new law becomes operative on January 1, 2028.

What SB 1126 Changes

Existing law requires local agencies to submit annual reports regarding their financial transactions, including certain data from audited financial statements, to the State Controller. Once completed, those reports must either be posted on the agency's website or made available to members of the public upon request.

SB 1126 adds Government Code section 53905 and requires any local agency (as defined) that maintains an internet website to post either its audited financial statements or its Annual Comprehensive Financial Report ("ACFR") on that website. The report must:

Be posted in a “prominent location” on the agency's website;
Be accessible to the public without a password or fee;
Be posted within 30 days after the report is completed; and
Remain available on the website for at least three years.

For purposes of the new Government Code section 53905, a “local agency” means a city, charter city, city and county, or an independent special district. An “independent special district” includes a special district whose governing body consists of members elected by registered voters or landowners within the district, or members appointed to fixed terms, and excludes districts whose governing bodies consist, in whole or in part, of ex officio officers of another local agency or their appointees (other than appointees serving fixed terms).

In enacting SB 1126, the Legislature emphasized the public's constitutional right to access information concerning the conduct of government business. The bill's findings state that readily available online access to audited financial information promotes transparency, assists taxpayers and oversight agencies in evaluating the fiscal health of local governments, and serves as an "early warning system" regarding potential financial distress.

Practical Impact for Local Agencies

For many local agencies, SB 1126 will not require significant operational changes because audited financial reports are already routinely posted online. However, agencies should review their existing website practices to ensure compliance with the statute's specific requirements regarding timing, accessibility, prominence, and document retention.

Please contact your AALRR attorney or the authors of this Alert if you have questions regarding the new law or would like assistance evaluating your agency's compliance procedures.