State Sen. Susan Rubio, a Democrat from Baldwin Park, was reappointed last week as chair of the committee that oversees insurance-related legislation, a powerful position that went unoccupied for weeks while swaths of Los Angeles burned.
While the fires created an unprecedented insurance crisis that has left thousands scrambling to cover their losses, Senate Pro Tem Mike McGuire (D-North Coast) kept the chairperson position vacant despite announcing all other leadership positions earlier in the month.
Rubio’s reappointment as chair, a position she has held since 2019, comes amid lingering questions about her role in an ongoing federal investigation into an alleged cannabis industry bribery scheme that dates back to her time on the Baldwin Park City Council and her 2018 campaign for state office.
McGuire previously said he was awaiting more information from the U.S. attorney’s office regarding the federal probe before deciding whether Rubio should retain the chair position.
Rubio has not been named by authorities in connection with the case, but The Times previously reported on court documents made public by the U.S. attorney’s office in December that described an unnamed public official with details that matched the state senator’s profile.
Baldwin Park’s former city attorney and city manager have both pleaded guilty to soliciting kickbacks in exchange for issuing permits to cannabis businesses. The unnamed official who fits Rubio’s description is accused of taking $30,000 in cash in exchange for protecting the scheme, with money allegedly funneled into a state campaign account through straw donors.
A Rubio spokesperson, Matthew Z’berg, previously said in a statement that federal officials had informed Rubio she is not a target in the investigation, and that she “volunteered hours of her time” aiding the authorities in their investigation. Her office did not answer whether she was the unnamed official in the plea. A spokesperson for the U.S. attorney’s office said he could neither confirm nor deny those claims.
With a district that includes parts of the San Gabriel Valley devastated by the Eaton fire, Rubio said as chairperson she will continue to dedicate time to help with the recovery.
“Following the appointment last Friday, Senators are meeting to discuss the work to be done,” Rubio said in a statement. “After having the opportunity to meet with all members of the committee, we’ll solidify and highlight the next steps forward for California and to support those impacted by the wildfires in being made whole.”
The Senate insurance committee chairperson role “carries considerable weight,” said Chris Micheli, an adjunct professor at the McGeorge School of Law and veteran lobbyist.
Micheli, who closely tracks legislative actions, said the committee is likely to tackle issues of affordability and eligibility on the homeowners front — issues that could shape the fire insurance market going forward. He said that “right now, [Rubio] is the most qualified individual to lead that committee,” and noted that the federal investigation probably had no bearing on her reappointment because she has not been directly implicated.
As a state legislator, and during her unsuccessful bid for Congress, Rubio has accepted sizable donations from the insurance industry, and so have her colleagues.
Although those donations are legal, that money is often from the same people who lobby for bills heard before the Insurance Committee. Rubio’s role gives her the power to advance or kill legislation that could either harm or benefit the industry. Lisa Calderon (D-Los Angeles), the chairperson of the Assembly Insurance Committee, has also previously accepted donations from the industry.
McGuire, who oversaw Rubio’s reappointment, recently revealed his intent to run next year for state insurance commissioner, an elected position that helps regulate the state’s insurance industry. The current commissioner is Ricardo Lara, who was elected in 2018.
Jamie Court, president and chairman of Consumer Watchdog, said he is “very concerned” with Rubio’s appointment as California is in “an escalating crisis.”
“She’s given the insurance commissioner whatever he wants to do, which is screw up the system,” Court said. “The Insurance Committee is owned by the insurance industry and Susan Rubio is the gatekeeper.”
McGuire reaffirmed his support for Rubio in a statement issued last week.
“I have confidence in her experience and her ability to lead the Committee while the State faces unprecedented challenges with the insurance market,” he said.