By Stephanie Sierra and Olivia Gonzales, ABC7
SAN FRANCISCO (KGO) — The Fair Political Practices Commission is assessing a state complaint into California’s Insurance Commissioner. It’s in response to a 7 On Your Side investigation exposing at least a dozen of Ricardo Lara’s international trips on taxpayers’ dime — all while missing some key state insurance meetings.
For more than nine months, we’ve requested information about 48 of Commissioner Lara’s trips. However, the department has only identified a direct business purpose for seven of those trips, three of which included vague descriptions. Due to incomplete records, it’s unclear how many of these trips were taxpayer funded. Receipts show expenses for at least 13 pricey trips were on taxpayers’ dime.
Furthermore, records for travel expenses to at least a dozen international destinations remain missing.
Newly obtained records now reveal the cost of his security detail for several of his controversial trips. State expenses show trips that listed no insurance-related meetings were five times more expensive than previously reported. Receipts show tens of thousands of department funds were spent on five-star resorts that turned into extended trips — including an African safari and an extended stay at a five-star resort in Dubai.
A nice gig, right? Especially when it’s funded by taxpayer dollars — upgrading flights to business and first class, expensing the five-star resort stays… and, as we found out, a safari, limo service, chauffeurs… the list goes on.
Determining an “established need” for travel
The Commissioner took at least 48 trips across the globe to virtually every dot you see on our map since he assumed office in 2019. And that may just be scratching the tarmac, as years of his travel records remain missing from the state.
“That’s concerning,” said 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? The rules are there to make sure we all play by the same playing field.
Ray Asbell
“Is that in the best interest of the state?” said Ray Asbell, a former CalHR manager. “The rules are there to make sure we all play by the same playing field.”
Asbell explains that all departments are required to identify a clear “established need” to travel. For out-of-country trips, a “mission critical” purpose is required.
“They cannot in their minds understand how somebody can make a trip like this… it makes no sense!” said Asbell.
After nine months of questioning, however, the California Department of Insurance (CDI) was unable to specify those reasons for a series of trips — including a five-star hotel stay in New York City for PrideFest that cost taxpayers more than $11,600. The four-day trip listed no insurance-related meetings on his calendar, but a VIP rooftop event with “DJ Kitty Glitter” made the cut.
Private security was hired to escort him to various events on this trip, costing taxpayers more than $9,400. CDI says it defers to California Highway Patrol for any private security or transport travel expenses, adding the CHP — not the commissioner — makes those decisions, based on things like threat assessments.
“A government job is government service. It’s not supposed to be wealthy,” said 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.”
A government job is government service. It’s not supposed to be wealthy.
Nolan Higdon
Former South Bay Assemblymember Evan Low (D-28) — an openly gay politician who worked closely with Lara — says the security costs may be warranted due to rising threats targeting the LGBTQ community.
“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,” said Low. “But it’s the unfortunate reality that we’re dealt with in this political environment.”
But he also recognizes there has to 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 are not talking about pennies here.
Records show Lara’s five-day trip to Bogota, Colombia for an “LGBTI Political Leaders Conference” cost taxpayers more than $24,000. That’s five times more than previously recorded. No insurance-related meetings were listed on his calendar, but receipts show he spent more than $7,000 on “taxi fares.” It turns out a private security firm was hired to accompany him at the conference.
Low, who’s now CEO of the LGBTQ+ Victory Institute, invited Lara to the conference. We asked him what was accomplished during the trip.
“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,” said Low. “What is it like serving? How do you deal with being a public official?”
This is why critics ask: might a Zoom call be a cheaper alternative for an educational conference? “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 email to 7 On Your Side.
“And I welcome these type of questions to be able to articulate that,” said Low.
But the Commissioner hasn’t articulated that answer.
Security costs while traveling
The security for just two of Lara’s 2019 trips cost taxpayers more than $16,400. Those charges are in addition to a $260,000 contract Lara had with California Highway Patrol that year to provide protection services.
While travel is not uncommon for the position of California’s Insurance Commissioner, and prior commissioners have also traveled internationally, political analysts raise questions about the frequency, cost, and lack of transparency with Lara’s trips.
For example, last November Lara took an extravagant trip to Cape Town, South Africa for an international insurance conference. The conference was only two days — yet receipts show taxpayers paid for his entire two-and-a-half-week stay. Just his security detail alone cost taxpayers more than $33,000, not including bills for a “Big 5 Safari and Spa” — as well as expensive hiking equipment.
I’m having a hard time understanding why hiking poles are part of something the state needs for insurance.
Ray Asbell
“I’m having a hard time understanding why hiking poles are part of something the state needs for insurance,” added Asbell.
To put that trip in perspective, we requested all the travel records for members of the state insurance committees whose travel priorities are often aligned with the Commissioner. Yet receipts show a significant disparity. For example, Chair of the Assembly Insurance Committee Lisa Calderon averages just under $19,000 annually for all her taxpayer-funded trips over the past five years. Compare that to Lara’s records, where security detail costs alone for a single trip amounted to $33,000.
Commissioner Lara and Assemblymember Calderon’s roles are not a direct comparison in scope of representation. “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,” said Soller.
However, CDI has not provided the travel records from previous commissioners, describing them as incomplete “due to changes in reporting standards and record availability prior to 2019,” per Soller. In fact, Lara’s staff provided a list of five international trips former Commissioner Dave Jones took during his tenure. In his email to 7 On Your Side, Soller said that former Commissioner Dave Jones traveled to “London, UK; Kuala Lumpur, Malaysia; Luxembourg; Windsor, UK; and Paris, France,” in his official capacity.
Compare that to at least 21 international trips for Lara. At least 48 trips in total. (Note: years of records are missing.)
“I don’t think it passed the sniff test, whatsoever,” said Ray Asbell, former CalHR manager.
But somehow these trips continued to pass the “sniff test” for the Commissioner. Lara’s trips also include a luxurious 10-day trip to Dubai, where the Commissioner stayed at a pricey five-star “Polynesian-themed” resort. CDI says this was to participate in United Nations policy panels and insurance forums.
While Lara’s office has been unable to provide many of the receipts for his own exact costs, 7 On Your Side obtained records showing more than $23,000 taxpayer dollars were spent on the flights, luxury hotel accommodations, and wages just for his CHP security detail — which included hiring a limousine and personal chauffeur service.
To put that in perspective, 7 On Your Side requested any security-related expenses billed to taxpayers for the insurance commissioners in Illinois, New York, Texas, and Florida from 2018 through June this year. None of them produced any responsive records, so either they are withholding records improperly — or they don’t have any charges.
“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,” said Soller.
So we asked if that was the case for the 15 international trips listed in a report that is missing his travel records — and we never got a straight answer.
“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,” said Soller in a separate email.
To be clear, we know Commissioner Lara’s travel cost to taxpayers is likely much higher given the his department has yet to provide any of his own travel records for many of these pricey trips (aside from Cape Town), despite our repeated attempts, including:
- Scotland
- Egypt
- Chile
- Costa Rica
- Tokyo
- Uruguay
- France
- Switzerland
- Singapore
- Guatemala
- Ireland
- and 3 trips 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.”
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.
Brandon Philips
“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,” said Higdon.
The Commissioner’s response
Commissioner Lara was unavailable for an interview. We repeatedly reached out for further comment. His office did not respond to most of the requested trips, but did send us the following statement addressing Lara’s trips 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 trip Commissioner Lara advised insurers that prior use of PrEP (an HIV prevention medication) cannot be used to justify denial of coverage or higher 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 business or mission critical purpose for the majority of the 48 trips remains unclear.
Soller added in an last week: “For all Department-funded travel, we comply with FPPC rules and reporting requirements.”
Deputy Commissioner Soller provided a list of “tangible results” resulting from Lara’s travel, including “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 only specified one resulting piece of legislation, The California Safe Homes Act, which establishes a grant program to help residents afford wildfire mitigation projects. But it has yet to be signed into law. It was presented to Governor Newsom last 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,” said Philips.
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.
Brandon Phillips
Which brings us back to this question — where is the ethical line?
“So your question about, ‘where does that line exist?'” asked 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 asked Commissioner Lara if he has attended any ethics training. 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 concerns about transparency, in part because California’s Insurance Commissioner is an elected position, but according to the Governor’s office is not subject to the same rules established for most other state departments.