California Republicans Advocate for Special Legislative Session to Address Fraud Concerns

On Wednesday, Republicans in the California State Assembly criticized Democratic Governor Gavin Newsom and Attorney General Rob Bonta, accusing them of grandstanding on the issue of fraud prevention.

The assembly members urged the need for a dedicated legislative effort to thoroughly investigate the extent of fraud, highlighting the inadequacies in oversight and the essential reforms required to safeguard taxpayer funds.

“The governor claims he’s halting licensure, yet he’s already licensed a doctor who defrauded us of $270 million,” stated Assemblymember James Gallagher, who is also campaigning for Congress. “This governor and the politicians in power have done nothing about it. They’ve ignored the issue and continue to waste resources. We’re here to say enough is enough.”

Fraud has been identified within several major state programs, such as Medi-Cal, in-home supportive services, unemployment insurance, and infrastructure projects.

California is under scrutiny by an influential congressional committee following revelations by The California Post, which uncovered widespread hospice fraud costing taxpayers over $100 million.

The issue of fraud in the state has also been highlighted by conservative YouTuber Nick Shirley and Dr. Mehmet Oz, the head of the Centers for Medicare & Medicaid Services.

“We are major focused on this issue, and I think our suspicion, our belief, is that the fraud in California will magnify whatever’s happening in Minnesota,” United States Attorney Bill Essayli said. “What’s happening in Minnesota pales in comparison to the level of fraud that we believe is occurring in California.”

Newsom and Bonta for much of the year have been trying to fend off attacks on their administration for widespread fraud. On April 9, Bonta made a major announcement in charges against 14 hospice companies who had billed Medi-Cal and Medicaid for $267 million in non-existent services.

“We have been doing this work for years. We’ve been doing it successfully before certain people in this country decided to think about it for the first time,” Bonta said, referring to Republican attacks on the issue.

Still, many questioned the announcement as Democrats trying to spin something positive off of a crisis.

“It shows how large this problem became before it was stopped,” said Assembly GOP Leader Heath Flora. “The question is so simple: why did it take so long to get here?”

More announcements won’t change a thing, Flora said, until structural reforms on oversight happen. It’s why a special legislative session is necessary.

“Put real funding behind enforcement and bring every department in and get answers,” he said.

The special session call won’t likely be heeded by Newsom or state Democrats who control the legislature. Newsom has continually insisted the state has always been tackling fraud.

“The federal government is now trying to intimidate and target California with baseless allegations of ‘massive fraud,’” Newsom previously said in a statement. “The rule of law isn’t a political weapon — it’s a promise, and we won’t let it be twisted to settle scores.”