Around the PIA Western Alliance States – Week of February 23, 2026

California — Legislature Looking again at a Single Payer System: Assemblymember Ash Kalra has submitted AB 1900 to the Assembly. It’s the third time the Assemblymember has tried to get the Legislature to create universal healthcare coverage in California.

If passed by the Assembly and the Senate, and signed into law by the governor, the bill creates a nine-member board of directors who will set up the system and administer the government run healthcare program.

Source link: Business Insurance — https://bit.ly/4qYQ9d7

California — Commissioner Lara unveils intervenor reform regulations to increase transparency and protect consumers’ money: Insurance Commissioner Ricardo Lara released the amended text of proposed regulations modernizing California’s intervenor and Administrative Hearing Bureau processes under Proposition 103 — reforms designed to increase transparency, improve efficiency, and ensure that every dollar in the rate review process serves the public interest. The amended text is now available for public comment.

“Every dollar in the rate review process belongs to California consumers. These reforms modernize outdated rules to protect those dollars with the highest standards of transparency and accountability,” said Commissioner Lara. “I value public input. These regulations create clear guidelines for public participation so it’s meaningful, prevents duplication, delay, and unnecessary costs that ultimately fall on policyholders.”

The amended text reflects months of stakeholder engagement and public input. The Department issued its original Notice of Proposed Rulemaking in October 2025, followed by a 45-day public comment period and opportunities for written and oral testimony. After carefully reviewing comments from consumer advocates, insurers, legal experts, and members of the public, the Department made targeted revisions to strengthen the proposal and address legal and constitutional concerns.

Pursuant to state law, the amended text is now available for an additional 15-day public comment period. All changes are clearly identified, and supporting materials have been added to the rulemaking file to ensure full transparency.

The updated regulations:

    Clarify prospective application so new rules apply moving forward, ensuring fairness and consistency in current ongoing proceedings.

    Replace the prior “vexatious” standard with an objective “wasteful” standard for fee determinations focusing on whether work advances the issues in a proceeding, rather than subjective intent.

    Strengthen scrutiny of excessive billing on a task-by-task basis.

    Increase public access to rate proceeding documents by requiring timely online posting of pleadings, hearing calendars, and decisions.

    Establish firm timelines and regular status updates from administrative law judges to reduce unnecessary delays.

    Clarify definitions and procedural rules to streamline hearings and reinforce the Commissioner’s authority under Prop. 103.

These reforms are designed to uphold one of the core purposes of Prop. 103 – meaningful public participation – while ensuring that the process remains efficient, balanced, and focused squarely on consumer and ratepayer benefits.

The Department’s rigorous review of insurance rate filings under Prop. 103 and its lead role in keeping intervenors accountable throughout the rate review process has delivered measurable consumer savings during Commissioner Lara’s tenure.

From 2019 through 2025, the Department’s oversight saved Californians $6.6 billion in property, commercial, and auto insurance premiums, plus an additional $3.3 billion refunded directly to drivers as a result of the Department’s scrutiny of auto insurance rates during the pandemic.

“Under Prop 103, we are the voice of consumers in the rate review process. Effective consumer protection is grounded in facts, evidence, and led by the expertise of the Department’s professionals,” concluded Commissioner Lara.

These reforms are part of Commissioner Lara’s Sustainable Insurance Strategy — the most comprehensive overhaul of California’s insurance regulations in over 30 years — aimed at stabilizing the market, expanding availability, and ensuring a modern, resilient insurance system that works for all Californians.

Idaho — Cracking Down on Insurance Fraud: The Idaho Department of Insurance (DOI) announced that two Idaho residents have pleaded guilty to insurance fraud in connection with a scheme to obtain coverage for three classic vehicles that were destroyed by fire.

On January 26, 2026, Tanner Evans, a licensed insurance agent from Pocatello, pled guilty to one count of insurance fraud. On February 9, 2026, David Lenon of Bellevue also pled guilty to one count of insurance fraud involving the same claim.

An investigation conducted by the DOI Fraud Unit revealed that, in the early morning hours of November 28, 2022, a fire destroyed a large shop on Lenon’s property in Bellevue, Idaho. The shop housed three classic vehicles which at the time were uninsured due to lapsed coverage resulting from non-payment of premiums months earlier.

During the fire, Lenon contacted his nephew, Evans, seeking assistance in reinstating the lapsed policies. Evans admitted that Lenon called him while the fire was still burning. The policies could not be reinstated. However, Evans issued a new policy covering all three vehicles for $200,000, effective November 28, 2022, at 9:59 AM—almost six hours after the fire was reported.

Approximately one month later, Lenon submitted a claim for the vehicles, falsely reporting the date and time of loss as November 29, 2022, at 4:00 PM, roughly 36 hours after the actual fire. Lenon knowingly attempted to collect benefits under the new policy, despite being aware that the fire occurred prior to its effective date.  Evans also knowingly issued coverage for vehicles that had already been destroyed.

Tanner Evans received a sentence of 1 year fixed (suspended) and 1 year indeterminate, with 2 years of supervised probation, 250 hours of community service, and court fines and restitution. Evans’ insurance license has been revoked by the Idaho Department of Insurance.

David Lenon received a sentence of 2 years fixed (suspended) and 1 year indeterminate, with 3 years of supervised probation, restitution and the maximum fine allowed of $15,000.

“Fraud undermines trust in the insurance system, and it drives up premiums for honest Idahoans,” said Dean L. Cameron, Director of the Idaho Department of Insurance. “Our department will continue to hold individuals accountable so families and businesses can rely on fair and affordable coverage.”

The Idaho Department of Insurance encourages anyone who suspects insurance fraud to report it at doi.idaho.gov or by calling the insurance fraud hotline at 1-866-939-7226.

Montana — The PIA of Montana Wants to Hear from You: To ensure we’re delivering the support, resources, and advocacy you truly need, the PIA of Montana would like your input.

Please take this short survey and let us know what you'd like to see, where you would like to go to make this year's the best it can be. What services, education, advocacy, or events would help you most? Are there specific topics or locations you’d like us to focus on?

Your feedback will directly shape our priorities for 2026. SURVEY LINK — https://bit.ly/4c7cXUu

Oregon — Berkshire’s PacifiCorp Settles Wildfire Claims: Berkshire Hathaway’s PacifiCorp has agreed to pay $575 million to resolve U.S. government claims for six wildfires it is responsible for in Oregon and California. The fires burned close to 290,000 acres of federal land.

The company will repay the government for firefighting costs and help restore some of the land.

Source link: Business Insurance — https://bit.ly/4sdosP2

Washington — Legislature Report: The Professional Insurance Agents of Washington is a state-wide professional membership trade association. Our services are focused on the independent property and casualty agency that includes legislative advocacy and government affairs.

Your participation — whether through testimony, outreach, or financial support — plays a critical role in protecting and advancing the interests of independent agents across the state. We’re committed to advocating on your behalf, but we can’t do it alone.

We want to hear from you.

Your experiences, concerns, and insights help shape our strategy and strengthen our impact. Remaining bills are now in their opposite house, supplemental budget proposals are expected this week, and tax discussions continue to take center stage

With now under three weeks remaining in the session, and the House of Origin deadline having passed on Tuesday, committees are now considering opposite-house bills and getting ready for introduction and public hearings this week on the House and Senate versions of the operating, transportation, and capital budget proposals. The cutoff for policy bills to continue is Wednesday the 25th, followed by March 2nd for fiscal committees and March 6th for floor action. The budgets, and bills considered necessary to implement them, including tax bills, are not subject to these deadlines. 

Below are selected highlights from the past week, along with a look ahead to notable action in the coming days. Additional bills being tracked, including those with upcoming action, are detailed in the attached bill report.

Budgets

    Incoming Monday: The House and Senate supplemental operating, transportation, and capital budgets will start rolling out Monday, with a Democratic leadership press conference scheduled Monday morning to announce the spending plans. The House Appropriations Committee and Senate Ways & Means Committee will hold hearings Monday afternoon on their respective operating budget proposals. The Senate Transportation Committee will take up their supplemental budget in hearing on Tuesday, while the House Transportation Committee will hear their budget on Wednesday. Tuesday is also capital budget day, with the House Capital Budget and Senate Ways & Means Committee hearing their proposals. By the end of this week, each of the three budgets should clear their committees and be ready to cross chambers and set the stage for final negotiations in the last weeks of session.

Taxes

Income Tax: While the House version of the 9.9 percent annual “Millionaire’s Tax” proposal has not moved, on Monday, the Senate passed its version, SB 6346, on a 27-22 vote, with bipartisan opposition. Notably, a floor amendment was adopted prior to passage that repeals the retail sales tax on services adopted last session under SB 5814, except for advertising services, effective January 1, 2030. The bill is now before the House Finance Committee, where it is scheduled for public hearing on Tuesday and executive committee action on Friday.

    New Income Tax & Constitutional Amendment: On Thursday, moderate House Democrat Amy Walen, D-Bellevue, introduced a competing income tax proposal, HB 2738, along with a related constitutional amendment, HJR 4213. Notable differences in Rep. Walen’s approach include removing the “marriage penalty” in the original proposal, applying the tax to individual income over $1 million annually, or household income over $2 million. Further, it proposes a drop in the state portion of the sales tax from 6.5 percent to 5.75 percent. It also doubles the charitable contribution available as a deduction. The constitutional amendment, meanwhile, makes clear that an income tax is permissible, cements the maximum rate at 9.9 percent, and the income threshold at $1 million, adjusted annually for inflation. Rep. Walen made an argument for her approach and to delay consideration until next session in this Seattle Times op-ed, published Saturday.    

    Local Government Taxing Authority:  HB 2442, expanding the use of local property tax revenues, authorizing a new 0.01 percent sales tax increase to fund child and family services, and expanding the authorized use of sales tax revenue by counties and cities, passed off the House floor on Tuesday by a 53-44 vote, and is now scheduled for a public hearing in the Senate Ways & Means Committee on Thursday. 

    B&O Insurance Tax Exemption Removal: HB 2487 and SB 5949, seeking to overturn the Envolve case by expanding the B&O tax to cover more activities of insurance companies currently subject to the premium tax, was voted out of the Ways & Means Committee on the Senate side with an amendment that does not address insurance industry concerns over broad, retroactive application to multiple forms of insurance business and products. The bill goes to the Senate Rules Committee to await further activity. The House version remains in the House Rules Committee, and it is anticipated its sponsors will be sharing updated amendment language with stakeholders soon. 

    Employer Assessment/Tax for Employee Use of Medicaid: SB 6173 would assess private employers of more than 100 employees for the full cost to the state of their employees who utilize state Medicaid for health insurance. The bill was scheduled for an executive session vote in the Ways & Means Committee on Thursday evening, with an amendment proposed that purported to expand the assessment to include independent contractors. After the parties returned from their caucuses, however, the bill was removed from the executive session list and has not yet been rescheduled.

Sales Tax on Services

    SB 5814 Follow Up: As noted above, the passage of last year’s SB 5814 continues to drive multiple follow-up proposals. While the Senate income tax proposal would repeal all but its advertising sales tax in four years, HB 2257 and SB 6113, the Department of Revenue’s “technical fix” bill, have attracted more immediate exemption requests. Several proposals have been introduced to exempt school districts from the tax, including in an amendment to HB 2257. The House version also contains an exemption for 501(c) non-profit organizations from having to collect the sales tax on live presentations, a key concern for trade associations and other non-profit entities that depend on educational and other programming to support their missions. Presently, HB 2257 is in the House Rules Committee, while SB 6113 – which does not include the non-profit live presentation exemption – passed off the Senate floor this past Monday on a 45-3 vote. It is scheduled for a public hearing in the House Finance Committee on Friday, after which the committee is expected to ultimately amend the bill to conform to HB 2257.  

Technology, AI, and Consumer Regulation

    Neither of the “high risk AI systems” bills, SB 6284, or HB 2157, survived the House of Origin cutoff. Various ancillary proposals related to young adult safety online, AI chatbot regulation, and disclosure requirements for AI-generated content, continue to move in this space.

Labor and Employment

    HB 2471, the NLRB “trigger” bill creating state-level labor relations regulation in the event federal law no longer pre-empts state law or the National Labor Relations Board declines or loses jurisdiction over labor disputes, was heard in the Senate Labor & Commerce Committee on Tuesday and voted out of committee on Friday.

    HB 1155, banning non-compete agreements and limiting non-solicitation agreements, is scheduled for a public hearing in Senate Labor on Monday, and an executive session vote on Tuesday.

    HB 2105, the Attorney General’s Immigrant Worker Protection Act, requiring 72-hours’ notice to current and former employees of a federal I-9 work eligibility audit, was voted out of the Senate Labor Committee without a public hearing on Friday, and heads to the Ways & Means Committee.  

Payroll-Tax-Funded Programs and Workers’ Compensation

    SB 5847, narrowing the Labor & Industries medical provider network and imposing penalties for employers found to have directed medical care, was heard in the House Labor Committee on Wednesday, and is set for a vote out of committee this coming Tuesday.

    SB 6136, requiring additional transparency in industrial insurance rate-setting, was heard in the House Labor Committee on Friday. It is set for a committee vote this coming Tuesday.

    HB 2243 and SB 6152, expanding the definition of attending provider to include physical and occupational therapists, did not survive the House of Origin cutoff.

    SB 5292, modifying the statutory basis for setting Paid Family & Medical Leave premium rates in favor of actuarial determination, is scheduled for a public hearing in the House Labor Committee on Tuesday and an executive session vote on Wednesday.

Liability Reform and Litigation

    HB 2255, regulating third-party litigation funding and requiring disclosure of funding arrangements, was pulled this past week from the Rules Committee for potential floor action, but ultimately did not survive the House of Origin cutoff.

    HB 2095, creating a presumption of negligence for motorists involved in collisions with “vulnerable roadway users,” passed the House on Tuesday on a 53-44 vote with bipartisan opposition. It is scheduled for a public hearing in the Senate Law & Justice Committee on Monday with an executive session vote set for Tuesday. The bill was amended on the House floor to soften some of its provisions, but still contains the troubling burden-shifting on negligence.

    SB 6239, regarding tort claims against the state and its political subdivisions, passed the Senate on Wednesday on a 33-16 vote, and is now scheduled for a public hearing in the House Civil Rights & Judiciary Committee on Tuesday, and executive session on Wednesday. As amended on the Senate floor, the bill’s approach shifted from mandatory pre-trial arbitration for certain tort claims against the state to a pre-trial administrative claims commission adjudication model.

    SB 5360, establishing criminal penalties for environmental incidents, including negligence, was pulled from the Senate Rules Committee this past Monday and passed off the Senate floor on Tuesday, on a 27-22 vote with bipartisan opposition. It is now scheduled for a public hearing in the House Environment & Energy Committee on Monday. 

Insurance

    SB 5928, requiring disclosure of wildfire risk scores, is scheduled for a public hearing in the House Consumer Protection & Business Committee on Tuesday, and a potential executive session vote on Wednesday.

    SB 6079, establishing a wildfire mitigation grant program while restricting underwriting based on IBHS designations, is also set for a committee hearing Tuesday and executive session vote Wednesday.

    SB 6031, strengthening OIC’s fraud prevention tools, passed the Senate on Wednesday unanimously, and is now scheduled for a committee hearing Tuesday with an executive session vote on Wednesday.

    SB 6178, banning post-loss assignments of benefits in property insurance, was heard in House Consumer Protection & Business on Thursday, and is scheduled for executive session this coming Tuesday. 

    SB 6248, adopting the NAIC model travel insurance regulation, is up for public hearing in the House on Tuesday, with an executive committee vote set for Wednesday.

    HB 2428, requiring proof of delivery for life insurance lapse notices, was heard in the Senate Business, Trade & Economic Development Committee on Wednesday and was voted out of committee on Thursday. It is in the Senate Rules Committee awaiting further action. 

Washington — On Campus: Wildfire mitigation grant program with Sen. Marcus Riccelli: Home insurance nonrenewals due to wildfire risk has been a growing issue in certain pockets of Washington state. One potential solution, which came out of the Wildfire Mitigation and Resiliency Standards Work Group, was to create a voluntary grant program to help people retrofit their homes to better withstand wildfire.

Listen to the latest On Campus podcast

Senate Bill 6079, which has moved to the House of Representatives for consideration, puts that idea into motion with the Strengthen Washington Homes program. Based on standards from the Insurance Institute for Business and Home Safety (IBHS), this pilot program would help the people who need it most make their homes more fire-resistant and maintain their insurance coverage.

Sen. Marcus Riccelli (D – Spokane) is one of the bill’s sponsors. On this episode of the On Campus miniseries, he discusses what he’s heard from his constituents, how the bill garnered bipartisan support and the importance of protecting against wildfire.

CLICK THIS LINK TO FIND THE PODCAST — https://bit.ly/4s97Nfq

Washington — Registering and identifying umpires in auto appraisals: Instructions on how to apply to the auto umpire registry can be found on the auto umpire program website. 

Washington state auto insurance law, RCW 48.18.620, establishes a standard appraisal clause for policies issued or renewed after Jan. 1, 2026. The law also requires the insurance commissioner to register competent and disinterested auto umpires who will be identified to auto appraisers if they are unable to agree on an auto umpire to resolve their loss dispute. The OIC recently completed rulemaking 2025-04, which outlines this new process, and the new website is now accepting applications to join the auto umpire registry. 

To populate the auto umpire registry, the OIC is accepting applications on a continuous basis - there is no application deadline. To become a registered auto umpire, you need to meet certain requirements established by rule. Once there are umpires available for auto appraisers to request, the webpage will be updated accordingly. 

You can contact our team at OICAutoUmpires@oic.wa.gov if you have any questions in the meantime.

Washington — Insurance fraud modernization bill passes state Senate: Washington state Insurance Commissioner Patty Kuderer’s bill to modernize how her office combats insurance fraud passed the state Senate on Tuesday, Feb. 17, by a unanimous vote of 49-0.

Senate Bill 6031 defines insurance fraud as its own crime — a Class B felony — in state law. The definition includes billing an insurance company or consumer for services not provided, impersonating others in insurance-related claims or transactions, and stealing insurance premium payments or premium financing loans.

The Office of the Insurance Commissioner’s Criminal Investigations Unit (CIU) was established by state law in 2006, but that law hasn’t been updated since then.

SB 6031, Kuderer said, gives the CIU modern tools to investigate modern fraud.

“Defining the most serious acts that defraud insurance companies and consumers as the crime of insurance fraud helps us hold the most egregious actors accountable,” she said. “This approach shifts CIU’s focus away from simple scams — like crashing a car and then buying a policy — to more complicated schemes, like exploiting loopholes to steal large amounts of money in smaller denominations to avoid prosecution.”

Insurance fraud costs insurance companies $300 billion a year, which is passed along to consumers in the form of higher premiums.

The bill expands “victims of insurance fraud” to include insurance consumers and insurance beneficiaries, making them eligible for criminal restitution. It would also expand statutory reporting of suspected insurance fraud to the insurance commissioner by adding regulators of health care or financial services professions, and other law enforcement and public safety agencies as required reporters.

The bill now moves to the House of Representatives for consideration.

Source link: Washington Department of Insurance — https://bit.ly/3MHo2RU