Lawmakers demand to know 'government purpose' of CA insurance boss's taxpayer-funded travel
SAN FRANCISCO -- California lawmakers and the state's former insurance commissioner are responding to a 7 On Your Side investigation into California Insurance Commissioner Ricardo Lara's taxpayer-funded travel across the world. Specifically, the lack of transparency about these trips, which are public record.
The Vice Chair of the Assembly Insurance Committee, Assm. Greg Wallis, (R-Riverside) vowed to take legislative action to demand more transparency from the state, if the business purpose of the 'mission critical' trips aren't provided.
"If the insurance commissioner's office isn't able to provide answers as to the government purpose of this travel, I think it's absolutely appropriate for us to move forward requesting an audit so we can get answers for the taxpayers. Again this is about transparency -- it's about good government. It's something that Californians absolutely deserve," Assm. Wallis said.
7 On Your Side reported earlier this week that Commissioner Lara made at least 46 trips across the country and all over the world since 2019, from the U.K. to Singapore to Glasgow, and Dubai. Receipts show at least 11 fully taxpayer funded 'work-related' excursions to places like Bogota, Paris, and a $14,000 'mission-critical' request to go to Chile.
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As a result, Commissioner Lara missed more than half of the state insurance hearings held since assuming office. Specifically, Lara was absent for 8 of at least 14 state hearings. Most of the absences were with the Senate Insurance Committee, where the Commissioner was not present for 7 of the 9 general informational hearings held since 2019. The Commissioner was reported to be traveling abroad or cross-country during at least four of those hearings.
But after more than a month of questioning, the state has yet to identify the "business purpose" for nearly all of the taxpayer-funded trips.
"I think there's definitely value to being able to take trips like this -- meet with people, leaders across the globe," said Assm. Wallis. "The bigger question here is why we're not able to identify the government purpose of this travel. This should be an easy answer, no brainer."
Assm. Wallis says he routinely goes on trips to meet with stakeholders and counterparts in other states.
"If you were to ask my office the purpose of government travel, we would be able to identify every single benefit that came from these trips. I think that's the biggest concern," he said.
MORE: CA insurance commissioner responds to criticism over lack of transparency, accountability
7 On Your Side looked into a few of the taxpayer-funded trips amounting to more than $20,000 and none of them appeared to list any specified insurance-related meetings on his schedule. This includes Commissioner Lara's week-long stay in Bogota, Colombia and his five-star hotel stay for Pride Fest in New York City, which featured "DJ Kitty Glitter" on his calendar. Nor his "mission critical" request for that 'mission critical' trip to Chile for a United Nations climate change conference.
"I think that's something that we should be able to make easily available to the public," said Assm. Wallis.
In response to the story, Congressman John Garamendi, the state's first elected insurance commissioner, issued a statement saying: "As insurance commissioner, my job was to always put consumers first. Clearly, this value hasn't continued."
Senate Minority Leader Brian Jones, (R-San Diego County), who also sits on the Senate Insurance Committee issued the following response, "Californians deserve transparency and accountability from all levels of government. With crises like our state's ongoing insurance issues, it's more important than ever that agencies and officials show up, do the work, and deliver results. Taxpayers expect and deserve nothing less."
The Governor's office issued a letter to state agencies in January last year, warning departments to reduce expenditures in the midst of the budget deficit. The directive limited trips to only essential, mission critical travel. Records and photos obtained from 7 On Your Side show the commissioner took at least 15 trips following the release of this letter.
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According to the budget letter, it required agencies to list the "purpose of the trip" and its "mission critical criteria" -- or if it didn't fit that description, at least an "explanation why it's in the best interest of the state." Yet, after more than a month of requesting this information, 7 On Your Side hasn't received any further response from the Department of Insurance.
However, since the state Insurance Commissioner is an independently constitutional officer, he is not subject to the Governor's restrictions.
"There has to be a gatekeeper, somewhere along the line I think we've lost that gatekeeper... if there was such a person, they wouldn't be approving these claims," said Ray Asbell, a former Department of Insurance and Department of Human Resources employee.
"I know the Commissioner's office responded to you and talked about transparency and wanted to be transparent. Part of that is answering those questions," said Assm. Wallis.
He says if there is any determination that the trips were not deemed to be "mission critical," he will call for a hearing to convene in the legislature.
(Note: A significant portion of the travel expense records requested from the state are missing or have yet to be provided.)
Take a look at more stories and videos by 7 On Your Side.
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