| May 29, 2000 | CAPITOL ACTION WEEKLY | Volume 3, Number 47 |
| A free weekly newsletter brought to you by Capitol Enquiry, Inc. |
| Edited by Gabe Anderson |
| Capitol Reports by Capitol Action Staff |
|
Table of Contents * Welcome * Capitol Action * Clips of the Week * News & Promotions * The Fine Print |
| Welcome |
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Happy Memorial Day. I trust you all took a moment today to remember
those who fought and died for our country during times of war. Too
often, I fear, Americans get caught up in the excitement of a
work-free day full of friends, food, and barbeque, and forget why we
take a day away from work: To honor the brave men who gave their lives
to help defend our country. Don't get me wrong -- I'm not suggesting
there's a problem with having a little fun today, but just keep our
country's heroes in mind; this country would not be the same without
them.
-Gabe
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| Capitol Action for 5.29.00 |
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SACRAMENTO, Calif. -- Lost in the tumult over the political scandal
surrounding Insurance Commissioner Charles Quackenbush is a
little-known bill, a hijacked piece of legislation, that has the
potential to develop into one of the major insurance-related bills of
the year.
The measure, SB1899, would allow the refiling of claims for damages arising out of the 1994 Northridge earthquake. In effect, it would give people who failed to meet the one-year statute of limitations to submit claims another chance to go to their insurance companies to seek damages. It also would allow people who were unhappy with their original settlements, or who can show they were treated poorly during their original negotiations, to refile their claims. This has the poetential to involve hundreds of millions of dollars worth of new claims, although at this point it is impossible to put a price tag on the ultimate size of the bill. The bill's origin is pure politics: Senate leader John Burton took a total unrelated, obscure piece of legislation related to family law and, in Capitol parlance, "hijacked" it by gutting its original contents and inserting the provisions related to earthquake. That action occurred about the time of an emotional publlic hearing in Granada Hills by the Senate Insurance Committeee, at which an array of property owners testified that their claims had been mishandled by insurance companies. Burton's bill was a direct response to those complaints. In three weeks, the bill was approved in committee and emerged from the Senate in a 32-1 vote -- the lone dissenter was conservative Riverside Sen. Ray Haynes -- and it now resides in the Assembly. It has received no significant media coverage. The Northridge earthquake occurred six years ago, but this year it is a hot political topic. That's because among the allegations targeting Quackenbush is the contention that allowed a half-dozen quake insurers off the hook for huge penalties by allowing them to donate far smaller amounts to a nonprofit foundation he set up to help consumers and finance quake-related research. However, none or little of the money went to those causes. Rather, millions of dollars went to purposes, such as television advertising, that appeared to benefit the commissioner politically. But while Quackenbush has been the target of exhaustive investigative reporting by a variety of news organizations, the Burton bill, the single most signficant piece of legislation to emerge from the still-developing scandal, has been given scant attention. The Northridge quake caused more than $15 billion in insured losses and is expected to surpass the damages of Hurricane Andrew, making it the nation's costliest natural disaster. More than 600,000 claims were filed following the quake, and the overwhelming majority of them have been resolved. Burton's bill, in effect, would allow the reopening of an unknown number of those claims, making insurers jittery indeed. As currently written, it would take effect in January 2001 and allow refilings for a 12-month period. The fact that SB1899 left the Senate on such a fast-track surprised nobody. The bill deals with a hot topic of crucial concern to politicians of both parties, and Burton rules the upper house with an iron hand. But its fate in the Assembly is far from certain. The well-heeled insurance lobbyists know this, and they have launched a no-holds-barred campaign to block the bill, water it down or kill it entirely on the Assembly side. To some extent, the fate of this bill is intertwined with the fate of the commissioner. If Quackenbush can emerge in tact from his political woes -- an increasingly unlikely scenario -- the impetus for the bill may wither. But if the heat intensifies on the commissioner, the bill is likely to win approval in the Assembly after a round of emotional hearings and floor votes. The bill is a marriage of pocketbook and politics, a volatile mix that drives much of the crucial policy making in the California Legilature. |
| Clips of the Week |
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--Melinda Fulmer in the Los Angeles Times, who reported that "CalPERS,
the country's largest public pension fund, will soon begin investing a
portion of its $175-billion fund in California agriculture, a
surprising vote of confidence in a sector that has not been generating
strong investment returns. It is also a worrisome development to local
farm groups who fear that big institutional investment will hasten
consolidation in the industry and encourage more housing development
on farmland. The board of the California Public Employees' Retirement
System, which covers more than 1 million state workers, retirees and
beneficiaries, voted this month to begin moving some money into such
agribusinesses as almond orchards, citrus groves and vineyards." May
28. http://www.latimes.com/business/20000528/t000050494.html
--Dan Borenstein in the Contra Costa Times, reporting: "Sixteen years
ago, she almost became the nation's first female vice presidential
candidate. Now speculation centers on whether U.S. Sen. Dianne
Feinstein will be the second woman picked to run for the No. 2 job.
California's senior senator usually is the only woman mentioned on the
list of potential running mates for presidential candidate Al Gore.
'On the Democratic side, the names you hear are Dianne Feinstein and
Dianne Feinstein,' said Ruth Mandel, former director of the Center for
the American Woman and Politics at Rutgers University. Feinstein's
spokesman says her public response has been simple: She is a candidate
for re-election to the U.S. Senate. But Feinstein, like most on the
list, has met with Warren Christopher, the former secretary of state
heading Gore's running-mate search. May 28.
--Robert Salladay and Zachary Coile in the San Francisco Examiner, who
reported that "With her bluntly cut blond bangs, pale blue eyes and
quiet voice, Ninon Mayrbaurl is not the person you would expect to be
sent to jail 15 times. The 31-year-old Santa Rosa native has been
convicted of burglary, but her major offense is what she considers a
medical condition: a drug addiction that may have started when she
tried marijuana at age 7, snorted cocaine at 15 or smoked crack at 18.
She has watched much of her 20s drift by in the concrete cells of
various Bay Area jails. After a few weeks or months back on the
street, she is arrested on another drug possession charge or fails a
drug test and violates her parole... The Campaign for New Drug
Policies measure, scheduled for the November ballot, would require
people convicted of nonviolent drug offenses -- including nonviolent
prison parolees -- be sent to drug treatment centers instead of prison
or county jail. The measure would be the most significant reform to
the drug laws since California passed its "three strikes" sentencing
law in 1994. May 28.
--Kate Berry in the Orange County Register, who reported that
"Consumers face the possibility of power blackouts this summer,
prompted by a surge in the use of electronic gadgets, a booming
California economy and a rough transition from deregulation. A rare
springtime 'brownout' on Monday -- the first statewide power emergency
this year -- forced hundreds of California businesses to cut power for
a few hours. Because the alert came early in the year, rather than
during a summer heat wave, energy officials expect more power outages
to occur. Only one emergency alert was called all last year, in
September." May 27.
--Dan Walters in the Sacramento Bee, who reported the hidden side of
California's "smog impact fee" legislation: "Both houses of the
Legislature overwhelmingly and quietly passed legislation Thursday to
refund the $300 'smog impact' fees that were illegally imposed during
the early 1990s on those bringing cars into California from other
states. After years of litigation, the courts ruled that the smog fees
were, as the Legislature's own lawyer advised in the first place,
unconstitutional. After the court ruling, Gov. Gray Davis declared
that the fees would be refunded to all 1.7 million motorists who paid
them, plus interest. ... And that, it would seem, will close out this
political melodrama. Not quite. There's still an unresolved aspect to
the great smog fee imbroglio: whether the lawyers who successfully
pursued the case, including one who is a major Davis campaign
contributor, should receive many millions of dollars in fees for their
work." May 26. |
| News & Promotions |
|
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