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Newsom’s latest insurance move could help Californians avoid cancelled policies — but they’ll have to pay

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Newsom’s latest insurance move could help Californians avoid cancelled policies — but they’ll have to pay


As some Californians continue scrambling for ways to affordably insure their homes, Gov. Gavin Newsom on Friday announced a push to expedite how quickly insurance companies can increase rates.

Speedier approvals for rate hikes is one of the key reforms insurers say is necessary for them to stay afloat amid a growing number of costly claims in the Golden State, especially tied to recent wildfires and other mounting costs of climate change.

Newsom said he is drafting a “trailer bill” that could cut the current approval process down to 60 days — legislation he hopes will quell an exodus of insurers bailing their business out of California and soothe residents’ financial anxieties around canceled policies.

The current process allows the Department of Insurance up to 84 days to approve filings for insurance rate increases, but that timeline can take substantially longer if a public hearing is requested by consumer advocates or other groups.

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“We need to stabilize this market,” Newsom said during a Friday press conference about his revised budget proposal. “We need to send the right signals, we need to move.”

While this change may temporarily usher in more expensive bills for consumers, proponents argue the changes will make home insurance more available. In turn, more options may also allow residents to avoid taking their chances with California’s “FAIR Plan,” the state’s “insurer of last resort,” which offers exorbitant premiums compared to regular insurance, and is also inching towards insolvency.

Denni Ritter, the American Property Casualty Insurance Association’s department vice president for state government relations, praised the news about expedited approvals Friday afternoon.

“Expediting the rate review process is a vital component to addressing California’s insurance crisis,” Ritter said in a statement. “We look forward to working with the Administration, Legislature and Department of Insurance on this crucial reform and other reforms necessary to fix our broken regulatory system and increase the availability of insurance for California homeowners, drivers, and businesses.”

The governor said he opted to work with state lawmakers on this “trailer bill,” rather than pursue an executive order to move the process along.

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California’s Insurance Commissioner, Ricardo Lara, started working with Newsom last fall to modernize and overhaul three decades of state’s regulations, including efforts to allow insurance companies to use catastrophe models to set rates, as well as bill consumers for the costs of reinsurance, which is insurance for insurers.

Lara said that ongoing work, however, isn’t expected to materialize until December.

That timeline isn’t fast enough in the governor’s eyes. If Newsom’s bill is passed within the state’s budget for 2024-25, it may take effect as early as July 1.

“(Lara’s) team is working their tails off, I know how concerned the legislature is on this,” Newsom said. “But December? I don’t think we have that much time.”

Rather than push back on Newsom’s announcement of his new bill, Lara thanked the governor’s support of his own effort, which has been dubbed the Sustainable Insurance Strategy.

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“Newsom is right: time is of the essence,” Lara posted to X, formerly Twitter, on Friday. “Our partnership with the Governor and Legislature are essential to stabilizing our market. We’ve taken significant steps forward, but there is more to do.”



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Bug infestation found at California Department of Education headquarters, employees sent home

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Bug infestation found at California Department of Education headquarters, employees sent home


Bugs have once again been found inside the California Department of Education headquarters in downtown Sacramento, prompting employees to leave the building and raising concerns among workers about returning to the office.

Employees were instructed to go home after bugs were detected in the building, according to state workers and union representatives.

They say it’s not the first time. Union representatives and employees confirmed to CBS News Sacramento that this is the second bug-related incident at the headquarters in the past two years.

“If they’re in one place, it’s very easy for them to be throughout the entire building,” said Anica Walls, president of SEIU Local 100.

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The discovery has renewed concerns about workplace safety, particularly as state employees prepare for expanded return-to-office requirements.

“Let’s do what’s necessary and make sure that our employees stay safe and that when they are in the building, they’re not contracting or taking home anything that they don’t need to be,” Walls said.

The California Department of Education confirmed the building experienced a bed bug incident in 2024. However, officials said they are still awaiting pest control reports to determine whether the insects recently discovered are bed bugs or another species.

State workers say they want a permanent solution rather than temporary fixes.

“It’s smart to fix the problem the correct way rather than trying to just mitigate the issue and shut down certain floors,” Walls said.

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While most state agencies are scheduled to move to a four-day-a-week, in-office schedule beginning next week, California Department of Education employees will continue their current hybrid schedule of two in-office days per week through the end of the year.

In a statement, the department said it is working with the Department of General Services and pest control specialists to inspect the entire building.

“As stated in the message to our employees, we are actively coordinating follow-up inspections and remediation efforts and will provide updates as soon as additional information becomes available,” the department said.

Union representatives said the department was responsive during the previous infestation and expressed hope for a quicker resolution this time.

“Last time, they were really receptive to the conversations with employees, which was good. We’re hoping for another good outcome, hopefully just a little more expedient this time,” Walls said.

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CBS News Sacramento also spoke with a local pest control company, which said that if the insects are confirmed to be bed bugs, treatment could take several months.

The process typically involves repeated inspections and treatments every one to two weeks, including high-heat treatments reaching approximately 160 degrees and extensive cleaning to prevent the infestation from returning.



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First look: Space Shuttle Endeavour in ready-to-launch position at California Science Center

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First look: Space Shuttle Endeavour in ready-to-launch position at California Science Center


This fall, space fans will get to see the Space Shuttle Endeavour like never before in its new permanent home at the California Science Center in the Exposition Park area. 

What we know:

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The new Samuel Oschin Air and Space Center at the California Science Center officially opens on November 13. 

Also, an introductory film includes footage from Endeavour’s final launch before being retired in 2011. 

“We felt from the beginning this is the most impressive way to see the space shuttle and it gives people views that almost no one ever got a chance to see,” said Jeff Rudolph, President & CEO of the California Science Center. 

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What they’re saying:

Since 2012, Los Angeles has been home to the Space Shuttle Endeavour. It has been on display horizontally at the California Science Center.  

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But the vision was always to have it on display upright

“It’s really exciting and everyone who sees it is in awe and that’s really what we were trying to do was create that real sense of emotional high and inspire people to learn more,” said Rudolph. 

This is the only display of its kind and it can’t be duplicated. The orange tank attached to the shuttle is the last mission-ready one in existence. 

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“I think what we’ve done is present something that is going to be a truly life-changing and transformative experience for education,” said Kenneth Phillips, Curator for Aerospace Sciences at the California Science Center. 

Visitors will also be able to see inside the space craft that carried astronauts to space 25 times, including Mae Jemison, the first Black woman to go to space and now-Arizona Senator Mark Kelly.  

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When the exhibit opens to the public in November, visitors will be able to ride up an elevator alongside the space shuttle and view it from the top. 

“That’s the view that nobody but the crew saw. That was a very special vantage point. Nobody got to do that,” said Phillips. 

What’s next:

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The California Science Center expects the exhibit to be popular. Tickets will go on sale well before the opening. 

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5.6 earthquake strikes near Ukiah, triggers alerts across Northern California

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5.6 earthquake strikes near Ukiah, triggers alerts across Northern California


A 5.6 magnitude earthquake shook Northern California on Wednesday morning, according to the U.S. Geological Survey.

The quake was centered 7 miles north of Redwood Valley in Mendocino County, north of Ukiah, and east of Highway 101. It had a depth of 5.0 miles.

A ShakeAlert notification went off on many people’s phones moments before the earthquake hit at 8:10 a.m., initially forecasted as a 6.1 magnitude quake by the U.S. Geological Survey (USGS) and downgraded moments later.

People across Northern California felt the quake. Reports came in from as far away as Eureka, Redding, Sacramento, and the Bay Area. Most people reported light to moderate rolling and shaking.

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Since the initial quake, several aftershocks have hit the same area. Three smaller quakes between 2.6-2.7 magnitude were detected in the same area between 8:17 a.m. and 9:06 a.m., and are expected to continue.

So far, there have not been any reports of major damage or injuries.

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