CA Insurance Commissioner Ricardo Lara’s taxpayer-funded journeys embrace safari go to, limo service, 5-star resorts

SAN FRANCISCO — The Fair Political Practices Commission is assessing a state grievance into California’s Insurance Commissioner. It’s in response to a 7 On Your Side investigation exposing no less than a dozen of Ricardo Lara’s worldwide journeys on taxpayers’ dime — all whereas lacking some key state insurance coverage conferences.

For greater than 9 months, we have requested details about 48 of Commissioner Lara’s journeys. However, the division has solely recognized a direct enterprise function for seven of these journeys, three of which included imprecise descriptions. Due to incomplete data, it is unclear what number of of those journeys have been taxpayer funded. Receipts present bills for no less than 13 expensive journeys have been on taxpayers’ dime.

Furthermore, data for journey bills to no less than a dozen worldwide locations stay lacking.

Newly obtained data now reveal the price of his safety element for a number of of his controversial journeys. State bills present journeys that listed no insurance-related conferences have been 5 occasions costlier than beforehand reported. Receipts present tens of hundreds of division funds have been spent on five-star resorts that was prolonged journeys — together with an African safari and an prolonged keep at a five-star resort in Dubai.

A pleasant gig, proper? Especially when it is funded by taxpayer {dollars} — upgrading flights to enterprise and firstclass, expensing the five-star resort stays… and, as we came upon, a safari, limo service, chauffeurs… the record goes on.

Determining an “established need” for journey

The Commissioner took no less than 48 journeys throughout the globe to nearly each dot you see on our map since he assumed workplace in 2019. And that will simply be scratching the tarmac, as years of his journey data stay lacking from the state.

“That’s concerning,” stated California State Assemblymember Greg Wallis, who serves as Vice Chair of the Assembly Insurance Committee. “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.”

Assemblymember Wallis is pursuing a state audit into the matter following a 7 On Your Side investigation.

“Is that in the best interest of the state?” stated Ray Asbell, a former CalHR supervisor. “The rules are there to make sure we all play by the same playing field.”

Asbell explains that each one departments are required to determine a transparent “established need” to journey. For out-of-country journeys, a “mission critical” function is required.

“They cannot in their minds understand how somebody can make a trip like this… it makes no sense!” stated Asbell.

After 9 months of questioning, nonetheless, the California Department of Insurance (CDI) was unable to specify these causes for a sequence of journeys — together with a five-star lodge keep in New York City for PrideFest that value taxpayers greater than $11,600. The four-day journey listed no insurance-related conferences on his calendar, however a VIP rooftop occasion with “DJ Kitty Glitter” made the lower.

Private safety was employed to escort him to numerous occasions on this journey, costing taxpayers greater than $9,400. CDI says it defers to California Highway Patrol for any non-public safety or transport journey bills, including the CHP — not the commissioner — makes these selections, based mostly on issues like menace assessments.

“A government job is government service. It’s not supposed to be wealthy,” stated Nolan Higdon, a political analyst and lecturer at UC Santa Cruz. “You’re not supposed to be in nice buildings in New York. And having high-priced security.”

Former South Bay Assemblymember Evan Low (D-28) — an overtly homosexual politician who labored carefully with Lara — says the safety prices could also be warranted because of rising threats focusing on the LGBTQ neighborhood.

“Well I know that in this environment there is increased scrutiny and attacks (are) real, I’ve been subjected to them too, many do, it’s not unique to me,” stated Low. “But it’s the unfortunate reality that we’re dealt with in this political environment.”

But he additionally acknowledges there must be accountability.

“Having said that — I think you’re also making a valid point, which is making sure that there’s great justification on any public dollars that is being spent,” Low continued. “One penny, two pennies, whatever it might be, and it validates that.”

But we’re not speaking about pennies right here.

Records present Lara’s five-day journey to Bogota, Colombia for an “LGBTI Political Leaders Conference” value taxpayers greater than $24,000. That’s 5 occasions greater than beforehand recorded. No insurance-related conferences have been listed on his calendar, however receipts present he spent greater than $7,000 on “taxi fares.” It seems a non-public safety agency was employed to accompany him on the convention.

Low, who’s now CEO of the LGBTQ+ Victory Institute, invited Lara to the convention. We requested him what was completed in the course of the journey.

“I don’t know the substance of what was discussed during that period of time, but the organization does convene a number of LGBT elected officials to talk about their experiences,” stated Low. “What is it like serving? How do you deal with being a public official?”

This is why critics ask: would possibly a Zoom name be a less expensive different for an academic convention? “In general, event organizers and hosts seek in-person attendance,” responded Michael Soller, Deputy Commissioner of the Communications and Press Relations Branch for CDI, in an electronic mail to 7 On Your Side.

“And I welcome these type of questions to be able to articulate that,” stated Low.

But the Commissioner hasn’t articulated that reply.

Security prices whereas touring

The safety for simply two of Lara’s 2019 journeys value taxpayers greater than $16,400. Those expenses are along with a $260,000 contract Lara had with California Highway Patrol that 12 months to supply safety providers.

While journey is just not unusual for the place of California’s Insurance Commissioner, and prior commissioners have additionally traveled internationally, political analysts elevate questions in regards to the frequency, value, and lack of transparency with Lara’s journeys.

For instance, final November Lara took an extravagant journey to Cape Town, South Africa for a world insurance coverage convention. The convention was solely two days — but receipts present taxpayers paid for his whole two-and-a-half-week keep. Just his safety element alone value taxpayers greater than $33,000, not together with payments for a “Big 5 Safari and Spa” — in addition to costly mountain climbing tools.

“I’m having a hard time understanding why hiking poles are part of something the state needs for insurance,” added Asbell.

To put that journey in perspective, we requested all of the journey data for members of the state insurance coverage committees whose journey priorities are sometimes aligned with the Commissioner. Yet receipts present a major disparity. For instance, Chair of the Assembly Insurance Committee Lisa Calderon averages just below $19,000 yearly for all her taxpayer-funded journeys over the previous 5 years. Compare that to Lara’s data, the place safety element prices alone for a single journey amounted to $33,000.

Commissioner Lara and Assemblymember Calderon’s roles usually are not a direct comparability in scope of illustration. “An Assemblymember represents approximately 450,000 people. The Insurance Commissioner represents all 38 million Californians and the fourth-largest insurance market in the world. Prorated, the $19,000 annual cost cited for Assemblymember Calderon would be equivalent to more than $1.5 million if scaled to the Commissioner’s level of statewide representation,” stated Soller.

However, CDI has not offered the journey data from earlier commissioners, describing them as incomplete “due to changes in reporting standards and record availability prior to 2019,” per Soller. In truth, Lara’s workers offered an inventory of 5 worldwide journeys former Commissioner Dave Jones took throughout his tenure. In his electronic mail to 7 On Your Side, Soller stated that former Commissioner Dave Jones traveled to “London, UK; Kuala Lumpur, Malaysia; Luxembourg; Windsor, UK; and Paris, France,” in his official capability.

Compare that to no less than 21 worldwide journeys for Lara. At least 48 journeys in complete. (Note: years of data are lacking.)

“I don’t think it passed the sniff test, whatsoever,” stated Ray Asbell, former CalHR supervisor.

But by some means these journeys continued to cross the “sniff test” for the Commissioner. Lara’s journeys additionally embrace an expensive 10-day journey to Dubai, the place the Commissioner stayed at an expensive five-star “Polynesian-themed” resort. CDI says this was to take part in United Nations coverage panels and insurance coverage boards.

While Lara’s workplace has been unable to supply most of the receipts for his personal precise prices, 7 On Your Side obtained data displaying greater than $23,000 taxpayer {dollars} have been spent on the flights, luxurious lodge lodging, and wages only for his CHP safety element — which included hiring a limousine and private chauffeur service.

To put that in perspective, 7 On Your Side requested any security-related bills billed to taxpayers for the insurance coverage commissioners in Illinois, New York, Texas, and Florida from 2018 by June this 12 months. None of them produced any responsive data, so both they’re withholding data improperly — or they haven’t any expenses.

“That’s a strong case that the line has been crossed,” weighed in Brandon Philips, a political analyst and Assistant Professor on Public Affairs at CSU East Bay. “Because if we are spending taxpayer money on excursions like it’s a vacation — people are overstaying the business purpose… the people of the state have the right to ask those questions.”

“Any personal excursions are paid for by the Commissioner personally, not by the Department,” stated Soller.

So we requested if that was the case for the 15 worldwide journeys listed in a report that’s lacking his journey data — and we by no means bought a straight reply.

“We follow the law. We have provided you, to the best of our ability, documentation in accordance with the law. We will not go outside the scope of the law. And to be clear, historically, under every Insurance Commissioner, the Department of Insurance has deferred to CHP’s expertise in security,” stated Soller in a separate electronic mail.

To be clear, we all know Commissioner Lara’s journey value to taxpayers is probably going a lot increased given the his division has but to supply any of his personal journey data for a lot of of those expensive journeys (other than Cape Town), regardless of our repeated makes an attempt, together with:

• Scotland




• Egypt




• Chile




• Costa Rica




• Tokyo




• Uruguay




• France




• Switzerland




• Singapore




• Guatemala




• Ireland




• and three journeys to Bermuda

“I think this would warrant a committee hearing,” added Philips. “For the Commissioner to come in and answer questions and if those questions can’t be answered efficiently, the ramifications would be losing that position. And possibly paying back that money to the state of California.”

“Folks are left with a lot of questions. Is this price tag necessary? That’s what the bureaucratic process is supposed to discover and figure out before that money is allocated,” stated Higdon.

The Commissioner’s response

Commissioner Lara was unavailable for an interview. We repeatedly reached out for additional remark. His workplace didn’t reply to a lot of the requested journeys, however did ship us the next assertion addressing Lara’s journeys to Bogota: “As the first openly gay person elected to lead a statewide office in California history, and one of the nation’s most visible gay leaders, Commissioner Lara was invited to speak on the fight for human rights — at the same time he was leading the fight for health insurance equality with other state insurance commissioners.”

According to CDI, following this journey Commissioner Lara suggested insurers that prior use of PrEP (an HIV prevention treatment) can’t be used to justify denial of protection or increased premiums.

Additionally, in August of 2019 the Commissioner led “an effort with 17 other state insurance commissioners to protect federal rules addressing unfair treatment of LGBTQ people” and “submitted detailed opposition to the Trump rules on ACA discrimination protections.”

But the enterprise or mission vital function for almost all of the 48 journeys stays unclear.

Soller added in an final week: “For all Department-funded travel, we comply with FPPC rules and reporting requirements.”

Deputy Commissioner Soller offered an inventory of “tangible results” ensuing from Lara’s journey, together with “leading the fight against the Trump administration’s anti-woman and anti-gay healthcare regulations,” “climate risk reporting,” an “extreme heat ranking system,” and “The Sustainable Insurance Strategy.” Yet Soller solely specified one ensuing piece of laws, The California Safe Homes Act, which establishes a grant program to assist residents afford wildfire mitigation tasks. But it has but to be signed into regulation. It was offered to Governor Newsom final week.

“We’re in a moment when it comes to government and politics where I think the public and the voters are tired of seeing elected officials who think the rules don’t apply to them,” stated Philips.

Which brings us again to this query — the place is the moral line?

“So your question about, ‘where does that line exist?'” requested Low. “It’s something that we go through… a number of our public officials go through ethics training, and so we need to be cognizant of that!”

We requested Commissioner Lara if he has attended any ethics coaching. Deputy Commissioner Soller responded: “Yes, he completed ethics trainings. For records of his attendance at ethics training sessions, you will have to contact the respective State Senate and State Assembly committees.”

The investigation is highlighting considerations about transparency, partially as a result of California’s Insurance Commissioner is an elected place, however in accordance with the Governor’s workplace is just not topic to the identical guidelines established for many different state departments.

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