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Committee advances bill to add legislative nonvoting seats to Fair Plan governing committee
Summary
AB 234 would allow the Assembly speaker and the Senate pro tem (or their designees) to serve as nonvoting members of the California FAIR Plan Association governing committee; the Assembly Insurance Committee advanced the measure after debate over whether it provides sufficient transparency.
Assemblymember Isaac Calderon presented AB 234 to allow the speaker of the Assembly and the Senate pro tem (or their designees) to sit as nonvoting members of the California FAIR Plan Association governing committee. The measure mirrors an existing model used for the California Earthquake Authority and would make those legislative appointees similar to existing gubernatorial appointees.
Claudia Mildner, assistant chief deputy legislative director with the Department of Insurance, spoke in support on behalf of Insurance Commissioner Ricardo Lara, saying AB 234 "would place the speaker of the assembly and the chairperson of the senate committee on rules or the representatives as non voting members on the California Fair Plan Association governing committee" and that additional legislative oversight and transparency is needed given the Fair Plan's growth in recent years.
Opponents said the change is too limited to remedy transparency concerns. Robert Harrell of the Consumer Federation of California said the FAIR Plan has become one of the least transparent insurers of last resort and that adding two ex officio nonvoting members is a small step compared with what is needed to address financial disclosure, public reporting and governance questions raised in a 2022 report. Harrell noted the Fair Plan had grown rapidly and referenced a figure of roughly 450,000 policies in recent years.
Assemblymember Gibson and others supported the measure as a step toward improved accountability; Gibson said having "elected individuals there" provides eyes and ears and the authority to press for change. The committee advanced AB 234 to the Assembly Floor. The hearing summary records the final committee outcome as out 16 to 0.
