Local government: County of Orange.

Assembly Member Valencia's legislation addressing Orange County Investment Fund oversight establishes new qualification requirements for fund managers and mandates enhanced financial reporting. The bill requires that starting January 1, 2026, local officials executing decisions on the fund must meet the same qualification standards as the County Treasurer-Tax Collector, while Audit Oversight Committee members must match qualifications previously required for Treasury Oversight Committee positions.

Under the new provisions, the Orange County Executive Office must prepare and publicly release annual statements detailing the Investment Fund's assets beginning July 1, 2026. These reports will be distributed to fund investors and submitted to both houses of the Legislature. The bill's findings cite Orange County's 1994 bankruptcy and recent transfer of fund authority from the Treasurer-Tax Collector to the Chief Executive Officer as key factors necessitating these changes.

The legislation frames these requirements as a targeted response to Orange County's specific circumstances, with authors noting that local agencies and school districts rely on the fund's stability. The bill provides for state reimbursement of any costs local agencies incur while implementing these new oversight measures, subject to review by the Commission on State Mandates.