CA AB1862

Prohibits public entities from entering contracts, leases, grants, joint ventures, or partnerships that give private parties the right to restrict, condition, or control how taxpayer funds are used, allocated, or disbursed

Bans contract provisions including noncompetition clauses, exclusivity clauses, or similar terms that would limit a public entity's ability to use taxpayer funds for grants, payments, or programs

Any contract provisions violating these restrictions that take effect on or after January 1, 2027, are void and unenforceable

Private parties may still restrict or condition the use of nontaxpayer funds (such as service charges, fees, rents, donations, or private grants) under contracts with public entities

Applies to all California cities, including charter cities, as a matter of statewide concern