Statements of financial interest: digital financial assets.

Assembly Member Valencia's proposal to modernize California's public official disclosure requirements would expand financial reporting obligations to include digital assets starting January 1, 2027. The legislation amends the Political Reform Act of 1974 to require public officials to report digital financial assets valued at $2,000 or more on their statements of economic interest.

The bill maintains existing disclosure thresholds and exemptions while adding digital financial assets to the definition of reportable investments. Currently excluded items remain unchanged, including time deposits, credit union shares, insurance policies, diversified mutual funds, government pension plans, and government-issued bonds. The legislation preserves requirements for reporting pro rata shares of investments where officials or immediate family members hold 10% or greater ownership.

Under the amended law, violations involving failure to disclose digital assets would be subject to the same misdemeanor penalties as other reporting infractions under the Political Reform Act. The bill specifies that local agencies will not receive state reimbursement for any costs associated with implementing the expanded disclosure requirements, as the changes fall under existing crime definition modifications exempt from reimbursement mandates.