Committee approves bill to add legislative appointees to Fair Plan governing committee

Assemblymember Isaac Calderon’s AB 234 won committee approval after supporters described the measure as a modest step to increase transparency and legislative oversight of the California Fair Plan Association.

AB 234 would authorize the speaker of the Assembly and the president pro tempore of the Senate, or their designees, to serve as nonvoting members of the Fair Plan governing committee. The provision is modeled after the California Earthquake Authority’s governance structure, according to the author.

The Department of Insurance, represented by Claudia Mildner, assistant chief deputy legislative director, testified in strong support and argued that the Fair Plan has grown rapidly in recent years and now functions for many Californians as the only available option for homeowners coverage in high‑risk areas. Mildner said increased legislative presence would improve accountability and transparency.

Consumer advocates, including Robert Harrell of the Consumer Federation of California, said the Fair Plan lacks transparency and that adding two ex‑officio, nonvoting members would be only a small step. Harrell urged stronger disclosure requirements, including public financial statements and clearer governing board disclosures, and said the bill should be strengthened beyond simply adding nonvoting seats.

Committee members praised the bill as a pragmatic step to add elected oversight. Assemblymember Gibson said the presence of legislative leaders “will be there” as nonvoting members and argued it would add accountability. The committee voted to pass AB 234 to the Assembly floor; the committee record shows the bill passed out of committee with a recorded result of 16 ayes and 0 noes.