From CalMatters economy reporter Levi Sumagaysay:
State Farm will try to justify its need to raise property insurance rates — stat — at an unprecedented public rate hearing starting today.
Rate hearings are rare and usually scheduled months in advance. This one’s different because California Insurance Commissioner Ricardo Lara called it hastily about a month ago, after State Farm made a unique request: It asked Lara to immediately approve emergency interim rate increases of an average 22% for homeowners, 15% for renters and condos, and 38% for rental dwellings. State Farm said its finances are strained because of the Los Angeles County fires, from which it expects to pay more than $7 billion in claims.
A hearing over emergency interim rates has never happened before.
State Farm has pending rate requests from last summer — a separate rate hearing about those will happen by June — but said it needs to increase rates as soon as possible. Under California law, the public can object to rate increases and intervene, which could then lead to a rate hearing. The insurance department and an intervenor, Consumer Watchdog, have been seeking more information about the company’s finances. While State Farm has said it has provided that information, it is expected to provide further details at this week’s hearing.
The hearing at the insurance department’s Oakland offices will be held before an administrative law judge, who will decide if it needs to take up all three scheduled days, through Thursday. The hearing will be livestreamed. If the judge approves State Farm’s rate increases, they will become effective June 1 and could affect the company’s nearly 3 million customers in the state.
The drama over California’s largest insurer’s rate request comes as Lara tries to restore insurance availability in the state and reduce the number of policies in the FAIR Plan, the fire insurer of last resort. His new regulations took effect at the beginning of the year.
CalMatters events: Fresnoland and CalMatters’ Yousef Baig are teaming up on April 22 to explore the future of the High-Speed Rail project with key decision makers and local leaders at the Fresno City College Old Administration Building Auditorium. Register here.
And on April 24, join CalMatters’ Marisa Kendall and policy leaders as they tackle what’s working to address homelessness and affordable housing — and what’s not. Register today to attend online or in person at the SAFE Credit Union Convention Center in Sacramento.
How have Trump’s executive orders and other recent actions affected you? CalMatters is working with public radio partners to gather perspectives across the state. Share your thoughts here.
Other Stories You Should Know
You don’t have to go home … but maybe you CAN stay here (for another 2 hours)
For those who think a 2 a.m. last call for California bars is a tad too early, a bill by two San Francisco lawmakers aims to extend nightlife in some city districts until 4 a.m.
As CalMatters’ Yue Stella Yu explains, Assemblymember Matt Haney and Sen. Scott Wiener, both Democrats, are reviving a bill that would allow restaurants and bars in select, locally defined “hospitality zones,” to serve alcohol until 4 a.m. on Fridays, Saturdays and state holidays.
With Los Angeles and Santa Clara hosting World Cup games in 2026, and Los Angeles hosting the Olympics in 2028, bill proponents argue that the measure would help revitalize post-pandemic nightlife across California cities. Wiener has tried and failed three times to advance similar legislation, though Gov. Gavin Newsom signed a law last year extending alcohol sales until 4 a.m. solely for Los Angeles Clippers VIPs inside the arena.
Opposition to past bills include advocacy groups concerned with the harms caused by alcohol. Assemblymember Tom Lackey, a Palmdale Republican and former highway patrol officer, also criticized the current bill, calling it “the worst policy I have voted on in my whole time being in office.”
Read more here.
AI scammers continue to defraud community colleges
California community colleges have long struggled with scammers who use artificial intelligence bots to pose as students in order to obtain millions of dollars in financial aid. Now, the most recent data reveals that the problem is worsening, writes CalMatters’ Adam Echelman.
Last year CalMatters reported that from September 2021 to December 2023, more than $5 million of federal aid and nearly $1.5 million in state aid went to scammers. The California Community Colleges Chancellor’s Office also reported in 2024 that about 25% of college applicants were likely fake.
But now the latest findings show it’s around 34%, and colleges have reported that in the last 12 months, $10 million in federal dollars were given away to fake students and over $3 million in state money.
The issue isn’t likely to improve anytime soon. In addition to their own cybersecurity and student authentication measures, colleges partly rely on the U.S. Department of Education to help find scammers. President Donald Trump’s administration has been working to dismantle the department, and since his return to the White House, the office that administers federal aid has lost about half its staff.
- John Hetts, an executive on the data team at the chancellor’s office: “When you direct less resources to combating fraud … you’re going to get more fraud.”
Read more here.
And lastly: Fire maps, DMV car sales
Other things worth your time:
Newsom appeals ‘irrational and malicious’ decision to cut USDA food assistance program // Los Angeles Times
Parent of trans student wins key ruling in lawsuit against CA district over disclosure // San Francisco Chronicle
Congressional bill aims to help firefighters with cancer. Getting it passed is just the beginning // California Healthline
After the LA fires, these schools face another threat: layoffs // The New York Times
Their hopes for asylum in US dashed, migrants in Tijuana ponder next moves // Los Angeles Times
As the US-Mexico land border tightens, focus turns to dangerous sea crossings // The San Diego Union-Tribune
Top Kaiser security chief fired amid Oakland cop database privacy probe // The East Bay Times
Sex abuse allegation at Modesto LDS church among large wave of cases in CA // The Modesto Bee
