Statements of financial interest: digital financial assets.

Assembly Member Valencia's legislation expands California's Political Reform Act to require public officials to disclose their interests in digital financial assets alongside traditional investments. Starting January 1, 2027, the bill modifies the definition of "investment" to include digital assets valued at $2,000 or more, requiring disclosure of these holdings in statements of economic interest.

The measure updates financial disclosure requirements to capture digital assets while maintaining existing provisions for traditional investments like stocks, real estate, and business interests. Public officials must report the commonly known names of their digital financial assets and their fair market value using the same monetary ranges applied to other investments: $2,000-$10,000, $10,000-$100,000, $100,000-$1 million, or exceeding $1 million.

State and local agencies must revise their conflict of interest codes to incorporate digital financial asset disclosures for designated employees. The bill preserves the option for officials serving multiple agencies to file consolidated statements, now including digital assets among reportable interests. While creating new disclosure obligations, the measure maintains existing exemptions for personal residences and certain financial instruments like government bonds and mutual funds.

The changes align with the Political Reform Act's existing enforcement framework, with knowing violations remaining misdemeanors under state law. Local agencies bear implementation costs without state reimbursement, as the measure modifies crime definitions under California's constitution.