Statements of financial interest: digital financial assets.

Plain English Breakdown

The official source does not specify the consequences for failing to report digital financial assets.

Statements about Money: Digital Currencies

AB-1029 updates rules for public officials to include digital currencies in their financial disclosures starting January 1, 2027.

What This Bill Does

• Expands the definition of 'investment' under the Political Reform Act to include digital financial assets starting January 1, 2027.
• Requires public officials to report any interests they have in digital financial assets on their statements of economic interest.
• Updates conflict of interest codes for agencies to require designated employees to disclose interests in digital financial assets.

Who It Names or Affects

• Public officials who must file statements of economic interest.
• Designated employees of public agencies.

Terms To Know

Digital financial asset

A digital form of money that can be used to buy things or save value, but is not legal tender like dollars and cents.

Investment

Money put into something with the hope of gaining more money from it.

Limits and Unknowns

• The bill does not specify what happens if someone fails to report their digital financial assets.
• It is unclear how this will affect local agencies and school districts beyond requiring disclosures.
• The exact impact on public officials who already have conflict of interest codes needs clarification.

Official Summary Text

AB 1029, Valencia.
Statements of financial interest: digital financial assets.
The Political Reform Act of 1974 requires public officials to periodically file a statement of economic interest disclosing the person's investments, interests in real property, and income. The act defines “investment” to mean any financial interest in or security issued by a business entity, including, among other things, stocks and any partnership or other ownership interest owned by the public official or that person's immediate family, as specified. The act specifies that an asset is an investment only if its fair market value equals or exceeds $2,000. The act requires each public agency to adopt a conflict of interest code for designated employees of the agency.
Existing law defines digital financial asset to mean a digital
representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, subject to specified exceptions.
This bill, beginning January 1, 2027, would expand the definition of “investment” for purposes of the Political Reform Act of 1974 to include a digital financial asset, and would specifically require public officials to disclose interests in their digital financial assets, as specified. The bill would also require an agency’s conflict of interest code to require designated employees to disclose interests in digital financial assets, as specified.
Existing law makes a knowing or willful violation of the Political Reform Act of
1974 a misdemeanor and subjects offenders to criminal penalties. By including additional assets that must be disclosed by public officials on statements of economic interest, the bill would expand the scope of a crime and impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a
2
/
3
vote of each house of the Legislature
and compliance with specified procedural requirements.
This bill would declare that it furthers the purposes of the act.

Current Bill Text

Download Bill PDF