California’s insurance regulator is under growing scrutiny as the state’s ethics watchdog reviews allegations that taxpayer dollars funded dozens of costly international trips by high-profile Commissioner Ricardo Lara.
According to ABC7, the Fair Political Practices Commission (FPPC) has opened a review after investigative reporting revealed Lara embarked on at least 48 trips since 2019, with unclear or undocumented business justifications for many of them. Records obtained show taxpayers covered significant expenses, including five-star hotels, luxury transportation, and upgraded flights.
For nearly a year, requests for detailed documentation have produced little clarity. Of 48 trips identified, Lara’s office has provided business justifications for only seven, three of which were described in vague terms. Receipts confirm that at least 13 trips, some involving luxury resorts, were charged to taxpayers. Documentation for other international destinations – including Egypt, Chile, Singapore, and Ireland – remains absent.
Recent disclosures further reveal that costs were far higher than initially reported once security expenses were included. Several trips with no insurance-related meetings ballooned in cost, in some cases multiplying fivefold due to private security contracts and upgraded accommodations. A five-day visit to Colombia for an LGBTQ political leaders’ conference, for instance, cost over $24,000, including more than $7,000 in so-called “taxi fares” linked to private security.
“I don’t think it passed the sniff test, whatsoever,” Ray Asbell, a former manager at California’s human resources department, told ABC7. He emphasized that state travel must have a clearly established “mission critical” purpose.
The revelations have prompted calls for accountability in Sacramento. Assemblymember Greg Wallis, vice chair of the Assembly Insurance Committee, is seeking a formal state audit. “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,” he said.
Some political leaders noted the unique security considerations for Lara, the state’s first openly gay statewide elected official. Former Assemblymember Evan Low, now CEO of the LGBTQ+ Victory Institute, acknowledged that security costs may reflect an era of heightened threats against LGBTQ officials. “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,” Low said to ABC7. But, he added, public officials still “need to make sure that there’s great justification on any public dollars that is being spent.”
Lara’s office has defended the trips as part of California’s role in leading global insurance policy discussions, from climate risk to health coverage equity. Deputy Commissioner Michael Soller pointed to initiatives such as climate risk reporting and the proposed California Safe Homes Act, which would support wildfire mitigation.
But comparisons to other state officials highlight the imbalance. Assembly Insurance Committee Chair Lisa Calderon has averaged under $19,000 annually in travel expenses. In contrast, Lara’s security detail alone for a single trip to South Africa cost more than $33,000.
While Lara’s defenders stress the broader scope of his office – overseeing the nation’s fourth-largest insurance market – the department has been unable to provide full travel records for past commissioners, citing gaps in reporting standards before 2019. Still, records show former commissioner Dave Jones made only five international trips during his tenure, compared to more than 20 for Lara.
The FPPC inquiry underscores broader questions about transparency and ethics in state government. Critics argue that educational conferences and networking events, such as those Lara attended in Dubai and Bogota, could have been attended virtually at far lower cost. “They cannot in their minds understand how somebody can make a trip like this... it makes no sense,” said Asbell.
Lara has declined interview requests, though his office emphasized compliance with state reporting requirements and security protocols. “For all Department-funded travel, we comply with FPPC rules and reporting requirements,” Soller said in a statement.
Still, as public frustration grows, lawmakers are weighing whether to convene formal hearings. “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 Nolan Higdon, a political analyst at UC Santa Cruz.
For the insurance industry, the controversy raises questions not only about governance but also about the perception of leadership in one of the most influential regulatory markets in the world. With the FPPC now reviewing the matter and state legislators pressing for answers, Lara’s travel habits are likely to remain under intense scrutiny in the months ahead.
Photo: Neon Tommy, This file is licensed under the Creative Commons Attribution-Share Alike 2.0 Generic license.
