research on the protection accorded citi- The study suggests several steps INTRODUCTION zens by laws; and guarantee citizens of Commissioner Garamendi can take in California access to a fair and efficient his first 120 days in office to "put Propo- Each regulatory agency of system of justice. sition 103 back on track," including the California government hears In 1988, AJF and its campaign com- following: from those trades or industries it mittee-the Voter Revolt to Cut Insur- -Issue new regulations notifying respectively affects. Usually ance Rates-sponsored and qualified insurers they will receive no rate increas- organized through various trade Proposition 103, the only one of four es until the rollback controversy is associations, professional lobby- competing insurance reform initiatives resolved and the delays ended. (Proposi- ists regularly formulate positions, approved by the electorate in the tion 103 calls for insurance companies to draft legislation and proposed November 1988 election. roll back their rates to November 1987 rules, and provide information as AJF publishes a bimonthly report, levels minus 20%.) part of an ongoing agency rela- Citizens Alliance, on citizens' rights -Eliminate territorial rating and tionship. These groups usually issues and actions at the local, state, and implement the 20% good driver discount focus on the particular agency federal levels. Legislative, judicial, and required by Proposition 103. overseeing a major aspect of their administrative activities which impact -Revoke the licenses of insurers who business. The current activities of on the public justice system and the refuse to accept all good drivers. these groups are reviewed as a exercise of citizens' rights are a major -Prohibit arbitrary cancellations and part of the summary discussion of focus of the organization's research and nonrenewals. each agency, infra. educational activities. AJF is funded by -Amend existing regulations to There are, in addition, a num- grants and individual memberships. require that insurers open their books to ber of organizations which do not MAJOR PROJECTS: the public, to enable regulators and con- represent a profit-stake interest in On November sumer groups an adequate opportunity to regulatory policies. 2, AJF/Voter Revolt These organi- Director Harvey examine and analyze all proposed rate zations advocate Rosenfield and con- more diffuse sumer increases before they take effect. interests-the leader Ralph Nader sent a letter to taxpayer, small Governor-elect -Enforce antitrust, civil rights, and business Pete Wilson, calling on owner, consumer, envi- Wilson consumer protection laws applicable to ronment, to set an example for fiscal future. The growth of responsibility insurance companies. regulatory government has led by rejecting the 41% increase in the governor's salary -Create an auto insurance compari- some of these latter groups pro- to posed by the son-shopping database, as required by become advocates before the reg- California Citizens Com- pensation Commission Proposition 103. ulatory agencies of California, created by Proposition 112 in the June 1990 elec- -Inform the public about their rights often before more than one agen- tion. In their letter, Rosenfield under Proposition 103 regarding the pur- cy and usually on a sporadic and Nader noted that Wilson, as a U.S. Senator, had chase of insurance through banks, dis- basis. counting of agents' Public interest organizations voted against the congressional salary commissions, and group policies. vary in ideology from the Pacific increase in 1989. They also attacked pro- -Adopt new regulations Legal Foundation to Campaign posed pay increases for other state offi- to guarantee cials and legislators. The full representation of consumers in California. What follows are two consumer advocates said it is improper insurance-related proceedings. brief descriptions of the current to boost elected officials' In the report's cover letter to Gara- projects of these separate and salaries at a time when severe mendi, signed diverse groups. The staff of the budget cuts are imposed to pre- by Rosenfield and Nader, vent a state budget shortfall the authors called on Garamendi to prop- Center for Public Interest Law of $4.5 bil- has surveyed approximately 200 lion. The letter also called on Wilson to erly and expeditiously force insurers to "dismiss the present members cease their excessive litigation and such groups in California, direct- of the Compensation Commission lengthy delays in the implementation ly contacting most of them. The and replace of them with individuals who Proposition 103. following brief descriptions are are truly rep- only intended to summarize their resentative of the citizens in whose iden- In related action, Voter Revolt blasted tities this commission activities and plans has attempted to outgoing Commissioner Gillespie on with respect cloak its to the various regulatory agencies unjustified and anti-democratic December 7 after she announced she in California. actions." would lift the fourteen-month freeze on On November 19, Voter Revolt auto insurance rates. Rosenfield said the released a report prepared for Insurance insurance industry was getting one more Commissioner-elect John Garamendi. favor from Gillespie before she left The 100-page report details the history office. of each provision of Proposition ACCESS TO JUSTICE 103 In a November 9 rebuttal to a Los since the voters passed the measure in Angeles radio station editorial criticizing FOUNDATION November 1988, and describes how each the state initiative process, Voter 3325 Wilshire Blvd., Suite 550 provision can be rapidly implemented so Revolt's Rosenfield agreed with the Los Angeles, CA 90010 that it is "bullet-proof" against lawsuits assessment that the process is out of con- (213) 383-9618 by the insurance industry. The report trol-but out of the control of consumers also chronicles former Commissioner and voters. He said most of the initia- Roxani Gillespie's two-year "massacre" tives on November's ballot were put Access to Justice Foundation (AJF) is of the initiative. (See CRLR Vol. 10, No. there by corporate interests or the legis- a nonprofit, nonpartisan citizen advoca- 4 (Fall 1990) pp. 120-21; Vol. 10, Nos. 2 lature. "It used to be that the corpora- cy organization established to inform the & 3 (Spring/Summer 1990) pp. 139-40; tions would simply spend millions of public about the operation of the legal and Vol. 10, No. I (Winter 1990) pp. dollars to defeat initiatives they don't system; provide independent, objective 106-08 for background information.) like. Now, insurance, chemical, timber,

The California Regulatory Law Reporter Vol. 11, No. I (Winter 1991) 4 PUBLIC INTEREST ORGANIZATION ACTION

and liquor companies and their buddies merger is approved. The group also ness areas, and wild and scenic rivers. To in Sacramento have a new trick: they put asked SCE to negotiate an agreement achieve these goals, the society supports their own phony initiatives on the ballot with the San Diego Air Pollution Control measures for the abatement and preven- to confuse and deceive people. In short," District aimed at reducing local air pol- tion of all forms of environmental pollu- added Rosenfield, "the public isn't lution. The giant utility has already tion. stupid and the initiative process isn't reached similar agreements with other MAJOR PROJECTS: broken. The real problem is that big cor- air quality agencies in the region that The December issue of Audubon porations are willing to do any- would be affected by the proposed merg- Activist noted that the 101 st Congress thing-including abuse of the initiative er. Further, the chapter called on SCE to passed some important measures in process-to preserve the status quo." submit to a continuing evaluation that 1990, but failed to act on many other would ensure compliance with the air Instead of making it more difficult to environmental measures. Environmen- place initiatives on the ballot, Rosenfield quality provisions of the merger agree- talists breathed easier with the long- recommended that "...we take action to ment. awaited passage of the reauthorized prohibit corporations from trying to An ALAC subcommittee conducted Clean Air Act at the end of October, the study which resulted in the recom- undermine democracy through phony after battling for approval of the measure mendations. The group said emissions initiative campaigns funded from corpo- since 1982 when it became mired in from SDG&E powerplants could be rate bank accounts." He also suggested Reagan-era politics. (See CRLR Vol. 10, that limits be placed on the amount of reduced by 30% with the installation of No. 4 (Fall 1990) p. 18 and Vol. 10, Nos. air pollution equipment. The chapter money special interests may contribute 2 & 3 (Spring/Summer 1990) pp. 27-28 wants SDG&E to proceed with installa- to elected officials. and 37 for background information.) tion of the equipment now, rather than Despite some shortcomings, according waiting until a decision is reached on the to Audubon activists, the new law pro- AMERICAN LUNG merger. vides a greatly improved formula for ASSOCIATION OF CALIFORNIA On December 5, the U.S. Environ- healthy air and a cleaner environment. P.O. Box 7000-866 mental Protection Agency's (EPA) Sci- The new Clean Air Act: entific Advisory Board endorsed a draft Redondo Beach, CA 90277 -sets timetables for cities to reduce EPA risk assessment report which esti- smog by 15% during the first six years (213) 378-3950 mates that 3,800 non-smokers in the and 3% in each subsequent year until United States die from lung cancer each ozone and carbon monoxide are reduced The American Lung Association of year due to the effects of second-hand California (ALAC) emphasizes the pre- to acceptable levels; smoke. The Board chair said the panel -requires industries to install "maxi- vention and control of lung disease and was convinced, after two days of hear- mum achievable control technology" for the associated effects of air pollution. ings, that there is relatively strong evi- 189 cancer-causing and toxic pollutants Any respiratory care legislative bill is of dence that environmental tobacco smoke by 2003, and directs the U.S. Environ- major concern. Similarly, the Associa- causes cancer in non-smokers. tion is concerned with the actions of the mental Protection Agency to impose an In addition, the panel endorsed find- "ample margin of safety" if a public Air Resources Board and therefore mon- ings in the EPA document that mothers health risk remains; itors and testifies before that Board. The who smoke near their young children -mandates a nationwide ten-million- Association has extended the scope of its increase the children's vulnerability to concerns to encompass a wider range of respiratory disease as they advance in ton reduction of sulfur dioxide emissions by 2000 and a two-million-ton reduction issues pertaining to public health and age. Three national groups-the Ameri- in nitrogen oxides by 1996, and sets a environmental toxics generally. can Lung Association, the American cap on emissions of the former. These MAJOR PROJECTS: Cancer Society, and the American Heart two compounds are the major cause of Association-issued On November 14, the San a statement saying acid rain; and they are "extremely pleased" with the Diego/Imperial Counties Chapter of -phases out the production of ozone- ALAC criticized Southern California Board's support of the EPA study. A for- mal statement by the Board on the EPA depleting chemicals, including chlo- Edison's (SCE) claim that local air qual- rofluorocarbons (CFCs), by 2000 and study will be released sometime in the ity will improve if SCE's takeover of less reactive ozone depleters, known as spring. The preliminary approval of the San Diego Gas and Electric Company HCFCs, by 2030. report by the Advisory Board increases (SDG&E) is approved. Lon Showley, According to NAS, the law lacks ade- the possibility that the EPA will eventu- Vice President of the chapter, said, "The quate controls on automobile pollution, bottom line is that a verbal commitment ally classify "environmental tobacco although it does force cars to meet Cali- is not enough to protect San Diego's air smoke" as a human carcinogen. fornia's tailpipe standards. The White quality. Without written guarantees House proposal to put one million cars binding Edison to limit powerplant NATIONAL AUDUBON SOCIETY on the road running on clean fuels by emissions, San Diego 2000 was watered down to a "pilot pro- could experience 555 Audubon Place worse air quality in the long term." (See gram" for California only. infra reports on UCAN and the PUBLIC Sacramento, CA 95825 The Ancient Forest Protection Act UTILITIES COMMISSION for back- (916) 481-5332 (H.R. 4492), a top priority of conserva- ground information on the proposed tionists introduced by Representative takeover of SDG&E by SCE.) The National Audubon Society Jim Jontz with 130 cosponsors, failed to The ALAC chapter called on the Pub- (NAS) has two priorities: the conserva- pass Congress during 1990. It will be the lic Utilities Commission (PUC) to pro- tion of wildlife, including endangered focus of Audubon's ancient forest cam- hibit SCE from exceeding emission lev- species, and the conservation and wise paign in 1991. An attempt by Senator els indicated in the company's use of water. The society works to estab- Bob Packwood (R-Oregon), a timber environmental impact statement if the lish and protect wildlife refuges, wilder- industry sympathizer, to sabotage the

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federal Endangered Species Act and wrote. He also pointed out that the feder- CalPIRG reported that more than remove the northern spotted owl as a al Resource Conservation and Recovery 2,000 volunteers worked for Big Green logging obstacle in the northwest failed Act has exempted wastes associated with and "Forests Forever" (Proposition 130) by a vote of 62-34. (See CRLR Vol. 10, oil drilling from its clean-up provisions, on election day (November 6), and No. 4 (Fall 1990) p. 18 for background even though some of the drilling wastes mobilized nearly 45,000 "occasional" information on these bills.) are chemically identical to the hazardous voters to turn out and vote for the envi- Alaska's Tongass National Forest by-products produced by other indus- ronment. Seventy percent of those tar- was given a measure of protection by tries. Noting that the U.S. Fish and geted to vote actually went to the polls. Congress in 1990. After more than five Wildlife Service reports that more birds Even though both measures failed, years of lobbying by environmentalists, are killed each year when they land in CalPIRG said the first steps have been Congress passed the Tongass Timber ponds near oil wells than have died from taken to build a new power base for the Reform Act in late October. The law oil spills in the oceans, Berle said NAS environment among voters. CalPIRG withdraws more than one million acres will organize its forces to close that staffers around the state will continue to of the Tongass from commercial log- loophole in the law. build on the network of election volun- ging, repeals an automatic annual $40 teers in preparation for the next ballot million subsidy to the timber industry, battles in 1992. and establishes a 100-foot, no-cutting CALIFORNIA PUBLIC According to the November issue of CalPIRG Notes, television stars Kyle buffer zone along streams and direct INTEREST RESEARCH GROUP tributaries used by migrating salmon. MacLachlan and Michael Ontkean 1147 S. Robertson Blvd., Suite 203 (See CRLR Vol. 10, Nos. 2 & 3 appeared in a "No on Proposition 135" (Spring/Summer 1990) p. 26; Vol. 9, No. Los Angeles, CA 90035 advertisement produced by CalPIRG, I (Winter 1989) p. 13; and Vol. 8, No. 2 (213) 278-9244 which aired on television stations pro- (Spring 1988) p. 14 for background viding equal time to balance the money information.) Environmentalists also CalPIRG is a nonprofit statewide spent by the pesticide industry to defeat Ralph Nader joined environ- succeeded in thwarting the now infa- organization founded by students from Big Green. mental groups in the last few days before mous amendment by Senator Frank several California universities. It is the election by touring the state and Murkowski (R-Alaska) to the U.S. largest student-funded organization of its the in favor of Propositions 128 Department of Defense's authorization kind in the state. There are CalPIRG speaking bill, a measure that would have paved and 130. CaiPIRG's Pesticide Watch chapters on four campuses of the Uni- project produced a five-minute televi- the way for oil drilling in Alaska's pris- versity of California. CalPIRG now has Arctic National Wildlife Refuge. sion address and a radio ad by Nader for tine approximately 120,000 members state- Audubon Activist reported that envi- Proposition 128 and Proposition 131, a wide, including thousands of citizens campaign finance reform/term limits ini- ronmental provisions make the 1990 members. federal Farm Bill a success. Under the tiative also on the ballot. bill, wetlands receive an extra measure MAJOR PROJECTS: In preparation for the holiday season, of protection, and farmers are encour- A recent decision by the University CalPIRG released its annual report on aged to set aside wetlands through long- of California (UC) Board of Regents potentially dangerous toys on November term or permanent easements. The legis- could jeopardize a substantial amount of 29. Nine toys were listed as the most lation also toughens enforcement of soil CalPIRG's funding. In September, the dangerous to small children. Most prob- conservation regulations and creates a Board decided that the "negative check- lems with children's toys involve small strong, uniform standard for certifying off" fee collection system used at four pieces which can be removed or broken and labeling organically grown produce. UC campuses to fund CalPIRG chapters off and then swallowed (causing chok- Farmers will receive technical assistance is improper. Under that system, students ing), or which can result in strangulation. to implement water quality protection may check a box on their registration For example, Arco-Mattel's "Mickey- programs. Between six and eleven mil- cards if they choose not to support town Ice Cream Playset" includes fig- lion acres will be added to the Conserva- CalPIRG. If they check the box, they are ures whose arms easily snap off and can lodge in a toddler's throat. The Great tion Reserve Program through 1995. For entitled to a $4 per semester rebate in the first time, farmers must record appli- American Bear Company's "Cornelius their student fees; if they fail to check Vanderbear" has removable binoculars cations of environmentally hazardous the box, they are automatically assessed known as "restricted use" pes- with a strap long enough to fit over a chemicals the fee, which supports CalPIRG. ticides. However, Congress scrapped the child's head and possibly lead to stran- "circle of poison" provision which Although this is identical to the system gulation. would have ended the sale of banned used by the State Bar of California to According to CalPIRG, at least four- pesticides to other countries. These pes- enable member attorneys to obtain a par- teen children across the nation died from ticides, harmful to the environment and tial refund of compelled licensing fees if toy-related accidents during the first nine unsafe for human consumption, often they choose not to support the Bar's var- months of 1990. CalPIRG staff members return to us in the produce we import. ious political activities (see infra agency went to 80 toy stores around the state Writing in the November 1990 issue report on the STATE BAR), the UC during October and November to exam- of Audubon Magazine, NAS president Board of Regents has announced that the ine toys for potential hazards. This year, "negative check-of" Peter A.A. Berle said, "National conser- system is legally the group reported sixteen fewer danger- vation strategies are still the best and problematic. Critics of the decision, ous toys than last year. For more infor- most effective means of reducing depen- including consumer leader Ralph Nader, mation on hazardous toys, contact dence on foreign petroleum," as interest assert that the Board of Regents is retali- CalPIRG at the address listed above. For in domestic drilling increases with the ating against CaIPIRG for its support of additional information on toy safety, or crisis in the Persian Gulf. "We cannot be Proposition 128 ("Big Green") on the to report a product-related injury, contact stampeded into opening all federal lands November ballot and for its increasingly the Consumer Product Safety Commis- outside national parks to drilling," Berle activist pesticide reform advocacy. sion, 3660 Wilshire Blvd., Suite 1100,

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Los Angeles, CA 90010, or call 1-800- spent $6 million to defeat it. CAW then has been a major obstacle to progressive 638-2772. worked for the 1986 passage of the "bot- solid waste management in California Lucky Stores continued to offer the tle bill" (AB 2020-Margolin), which for for the last eight years. CAW is hopeful lowest food prices for the fifth consecu- the first time established redemption val- that the new administration will provide tive year, according to a survey released ues for glass, aluminum, and two-liter the kind of leadership that a state facing in October by San Diego CalPIRG. Vons plastic beverage containers. As of Jan- a solid waste crisis desperately needs. stores are now in last place, having uary 1, 1990, under SB 1221 (Hart), Some important bills backed by dropped from second place in an earlier redemption values increased from one CAW did become law: CalPIRG survey. But the consumer cent per glass or aluminum container to -AB 1490 (Sher) keeps recycled glass group noted that food prices in the sur- five cents for every two containers from going into landfills by providing vey were very close and competitive, returned. Two-liter plastic beverage con- financial incentives to manufacturers and consumers may want to consider tainers are now worth five cents each. who use recycled glass (Chapter 1274, other factors such as food quality, selec- Under SB 1221, redemption values for Statutes of 1990). tion, service, store hours and distance aluminum, glass, and plastic beverage -AB 2622 (Eastin) mandates that traveled to shop. The range between the containers will increase if a recycling glass manufacturers utilize a minimum lowest- and highest-priced stores was goal of 65% is not reached by 1993. amount of recycled glass beginning with only $8.33. According to the survey, a 15% in 1993 and increasing to 45% by MAJOR PROJECTS: 1999 (Chapter 1094, Statutes of 1990). family of four people could save as On November 2, CAW, its Californi- much as $500 per year (and the average -SB 2532 (Marks).bans the use of ans Against Waste Foundation, and Citi- couple up to $300 annually) by shopping ceramics in glass containers, contami- zens for a Better Environment filed suit nants which can cause glass collected for at Lucky. The rankings from least expen- in Los Angeles County Superior Court to sive to most expensive in the one-day recycling to be rejected by glass manu- invalidate portions of an agreement shopping survey were: Lucky, Advan- facturers (Chapter 879, Statutes of signed last May between the City of Los 1990). tage, Ralphs, Alpha Beta, Big Bear, and Angeles and Los Angeles County for Vons. -SB 2091 (Hart) directs the new Cali- development of a large new landfill On December 3, CalPIRG's San fornia Integrated Waste Management north of Sylmar. The complaint asserts Diego Chapter released a list of nine and Recycling Board (CIWMB) created that the agreement violates the Califor- products which, it said, contain exces- in AB 939 to develop policies that will nia Environmental Quality Act (CEQA) hold manufacturers accountable for sive and wasteful packaging. According and a 1989 statute requiring more recy- to the group, the consumer often pays environmentally destructive packaging cling and less landfill dumping. They more for the wrapping than the product. (Chapter 546, Statutes of 1990). Expensive and wasteful packaging is claim the pact actually discourages recy- -SB 2092 (Hart) requires plastic trash The used to catch the buyer's eye, especially cling and waste reduction efforts. bags to be manufactured from 10% post- plaintiffs seek a stronger commitment during the holiday season. CalPIRG said consumer recycled materials by 1993, from the city and county to limit landfill packaging materials now amount to and 30% by 1995 (Chapter 1452, development and "aggressively pursue about one-third of the 180 million tons Statutes of 1990). of trash sent to landfills each year in the alternatives to urban landfills." -AB 2707 (LaFollette) (Chapter The three groups assert that the United States. A CalPIRG spokesperson 1406) and AB 3992 (Sher) (Chapter city/county accord violates CEQA said consumers are paying dearly for the 1355) require local governments to failed to complete waste, including depletion of natural because the parties establish Household Hazardous Waste resources and burgeoning pollution. The environmental impact studies before Collection Programs. group also announced its "Wastemaker signing the pact. The suit also claims the CAW lamented the veto of several AB 939 Awards," presented to those companies agreement is inconsistent with bills by Governor Deukmejian, includ- Integrated Solid it accused of using too much plastic (Sher), the California ing SB 2700 (Keene), a bill to require Act of 1989, which packaging for their products. Waste Management the recycling of telephone books; SB requires recycling, source reduction, and 2593 (Sher), which would have removed composting to be favored over landfill industry dominance on CIWMB's CALIFORNIANS construction or expansion. (See CRLR Source Reduction Advisory Committee; AGAINST WASTE Vol. 9, No. 4 (Fall 1989) pp. 112-13 for SB 1805 (Torres), legislation to discour- background information on AB 939.) age new trash incinerators; and AB 3749 909 12th St., Suite 201 The city/county agreement requires the (Sher), a bill to establish a nickel-per- Sacramento, CA 95814 city to pay relatively low per-ton dump quart deposit system for disposal of used (916) 443-5422 fees, and to pay additional financial oil, with a refund for those who return penalties if it does not supply a mini- their oil for disposal. Also vetoed was In 1977, Californians Against Waste mum amount of trash. The lawsuit says SB 2221 (Vuich), which would have (CAW) was formed to advocate for a the provision is a disincentive to reduc- required landfills violating environmen- recycling bill in the legislature which ing waste and asks the court to void the tal laws to comply or lose operating per- would require a minimum refundable section. The plaintiffs state their intent is mits. CAW said its biggest disappoint- deposit of five cents on beer and soft to encourage "state-of-the-art" conserva- ment in 1990 was the death of AB 3050 drink containers. After being repeatedly tion so that new landfill development is (Margolin), killed by the wine and liquor thwarted legislatively by well-financed minimized. The city of Santa Clarita, lobbies and the glass companies. It industry opponents, CAW sponsored and which is just west of the proposed dump- would have added wine and liquor con- organized a coalition for a statewide citi- site, contends it would contaminate tainers to the state "bottle bill" recycling zen initiative which appeared on the bal- groundwater and has pledged financial program. The fight for this legislation lot in 1982 as Proposition 11. That mea- support for the legal action. will resume in 1991. (For further infor- sure failed after can and bottle CAW's legislative wrap-up for 1990 mation on these and other 1990 bills manufacturers and their allies raised and emphasized that Governor Deukmejian related to California's solid waste crisis,

The California Regulatory Law Reporter Vol. 11, No. 1 (Winter 1991' PUBLIC INTEREST ORGANIZATION ACTION

see CRLR Vol. 10, No. 4 (Fall 1990) pp. ers, who suffer the highest rate of work- MAJOR PROJECTS: 21-22 and 148-50.) related illness in the state. The publica- The fall/winter 1990 issue of CLIPI's tion alleged that the California Depart- Public Interest Briefs newsletter report- ment of Food and Agriculture has been ed that a landmark settlement has been CAMPAIGN CALIFORNIA extremely lax in protecting farm workers reached in Friends of Ballona Wetlands 926 J Street, Suite 1400 from pesticide exposure. v. California Coastal Commission, a Sacramento, CA 95814 "Though 12 times more pesticides are 1984 CLIPI suit to preserve the Ballona being used now than 40 years ago, the Wetlands, Los Angeles County's last (916) 447-8950 pre-harvest loss to insects has almost major coastal marsh. The agreement In July 1986, the Campaign for Eco- doubled in the same period," the Cam- between Friends of Ballona Wetlands nomic Democracy (founded in 1977) paign California Report article noted. and Maguire Thomas Partners (MTP) of became Campaign California. The "Often, less than 1% of chemicals Playa Vista ensures that this wetlands 100,000-member/contributor organiza- applied to agricultural crops reach the area will be restored to its proper role as tion, with offices in Sacramento, San target pests, with the remaining 99% habitat for a diverse array of animal, Jose, San Francisco, and Santa Monica, contaminating the land, air and water." plant, and marine species, including the continues as the largest progressive citi- The article points out that the EPA's lim- threatened Belding's Savannah Sparrow zens action group in the state. Each its on food residues for most pesticides and the Least Tern. (See CRLR Vol. 9, office of the organization operates a were set decades before some of the No. 3 (Summer 1989) p. 14; Vol. 8, No. door-to-door and telephone canvass, chemicals were known to be carcino- 1 (Winter 1988) p. 23; and Vol. 7, No. 1 providing direct contact with voters genic. By May 1989, the EPA had (Winter 1987) p. 13 for background regarding issues; facilitating fundraising revised tolerances to incorporate new information.) and signature collection drives; and health-effects data for only three of the The settlement will save 250 acres of resulting in registration of new voters. more than 300 food-use pesticides. At wetlands, establish four acres of plant Campaign California supports efforts least 63 of those pesticides have been nursery, and restore six acres of dunes as to frame workable, progressive solutions classified by the EPA as probable or pos- well as approximately 20 acres of bluff- to problems in the areas of child care, sible human carcinogens. face, for a total of 280 acres. CLIPI's education, environment, transportation, According to the article, a recent successful representation of environ- personal safety, insurance, and health study by the National Academy of Sci- mental groups in the case paves the way care. It targets the private entrepreneur ences documented that U.S. agriculture for the largest salt water wetlands as a source of economic growth, jobs, can do business without creating health restoration program in the nation, and innovation. hazards for its own employees, farmers, according to CLIPI attorney Carlyle and consumers. The University of Cali- Hall. MTP will provide up to $10 mil- MAJOR PROJECTS: fornia Division of Agriculture and Natu- lion for the restoration and maintenance Campaign California made Proposi- ral Resources estimates that alternatives of the wetlands, and has agreed to sup- tion 128 ("Big Green") its single priority are now available for all but two of the port elimination of the Falmouth Avenue in the fall. The measure failed in the pesticides that would have been phased extension which would have run through November 6 election, but Campaign out under the defeated Proposition 128. the heart of the wetlands. In exchange, California said it will support legislation Campaign California's 1991 goals are State Controller Gray Davis has in 1991 and beyond to enact the various to promote federal legislation to reduce arranged to sell 70 acres of state-owned components of Proposition 128. The global warming and to improve fuel effi- land north of Ballona Creek to MTP for group also plans to dedicate time and ciency for motor vehicles. $85 million for the Playa Vista develop- energy to keep the broad Big Green ment. Los Angeles City Councilor Ruth coalition together for another possible Galanter said the settlement is "one of environmental initiative on the 1992 CENTER FOR LAW IN THE the most important environmental victo- general election ballot. PUBLIC INTEREST ries ever achieved in Los Angeles." At According to the fall 1990 issue of 11835 W. Olympic Blvd., Suite 1155 this writing, the settlement is awaiting Campaign California Report, public Los Angeles, CA 90064 final approval by the City of Los Ange- opinion surveys show that three of four les, the Coastal Commission, and other (213) 470-3000 American citizens believe pesticide parties to the lawsuit. residues in food pose serious hazards. In The Center for Law in the Public On December 3, the Second District 1987, the U.S. Environmental Protection Interest (CLIPI), founded in 1971, pro- Court of Appeal ruled against the chal- Agency (EPA) ranked pesticide residues vides public interest law services. Due to lenge to Proposition 13 brought by in food as the third most serious environ- economic considerations, in 1988 CLIPI CLIPI on behalf of Stephanie mental problem in the United States, began using outside counsel rather than Nordlinger. (See CRLR Vol. 10, No. 4 placing it ahead of ozone depletion and employ a full-time legal staff. Some (Fall 1990) p. 23 for details.) Nordlinger hazardous waste sites. Campaign Cali- legal services for the Center are provided had questioned the constitutionality of fornia added that many scientists are by the law firm of Hall and Phillips, Proposition 13's "welcome stranger" tax convinced pesticide residues in fruits while a number of legal cases are han- structure, which places an unfairly high and vegetables pose serious health haz- dled on a contract basis by outside attor- tax burden on new homeowners in the ards. Children are especially at risk neys. CLIPI's major focus is litigation in state. The court's ruling acknowledged because they consume more fruits and the areas of environmental protection, "gross disparities" in assessed valuation juices than adults, thereby ingesting pro- civil rights and liberties, corporate of comparable homes, and noted that, as portionately more pesticide residues. reform, arms control, communications expected, the discriminatory impact According to Campaign California and land use planning. CLIPI sponsors against recent purchases is magnified Report, much of the information regard- law student extern and fellowship pro- over time. But the court ruled that home- ing the effects of pesticides on human grams, and periodically publishes a owners seeking a fairer tax assessment health comes from studies of farm work- newsletter called Public Interest Briefs. scheme "must look again to the political

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process, not to the courts." CLIPI attor- approval by the faculty of the University petition for writ of certiorari in this 1987 ney Carlyle Hall will appeal the case to of San Diego School of Law. The faculty civil rights action, in which plaintiffs (32 the California Supreme Court. selected Robert C. Fellmeth, a law facul- Vietnamese refugee physicians) alleged On October 19, Los Angeles Mayor ty professor, as the Center's director. that BMQA (now the Medical Board of Tom Bradley, City Councilor Ruth CPIL is funded by the University and California) denied their license applica- Galanter, the Los Angeles Department private foundation grants. tions for a two-year period without of Airports, Friends of El Segundo The Center is headquartered in San affording them due process and for rea- Dunes, and CLIPI announced a new Diego and has branch offices in Sacra- sons unrelated to their qualifications for agreement to preserve habitat for the mento and San Francisco. Each year, licensure. (See CRLR Vol. 10, Nos. 2 & endangered El Segundo Blue Butterfly. approximately fifty law students partici- 3 (Spring/Summer 1990) pp. 102-03; Mayor Bradley said that in response to pate for academic credit as CPIL interns. Vol. 8, No. 2 (Spring 1988) p. 18; and an extensive biological inventory and a Students in the Center attend courses in Vol. 7, No. 4 (Fall 1987) p. 17 for back- scientific report prepared as a result of regulated industries, administrative law, ground information.) CPIL succeeded in CLIPI testimony before the California environmental law, and consumer law, obtaining physician licensure for its Coastal Commission, the Department of and attend meetings and monitor activi- clients over two years ago; the Supreme Airports has agreed to devote 200 acres ties of assigned regulatory agencies. Court's denial of the petition precluded to a nature preserve for the butterfly and Each student also contributes quarterly CPIL from seeking damages for its other threatened species which reside in agency updates to the CaliforniaRegu- clients for the long period during which the Los Angeles International Airport latory Law Reporter. After several they were prevented from practicing dunes. A proposed golf course develop- months, the students choose clinic pro- medicine. In November, CPIL agreed to ment will be relocated so that only 100 jects involving active participation in the dismissal of the damages portion of acres of it will be situated in the 300- rulemaking, litigation, or writing. the case. acre dunes area. CPIL's professional staff consists of In an unusual move in December, the The proposed settlement in Barefield public interest litigators, research attor- Board moved for an order requiring v. Chevron USA, CLIPI's 1986 employ- neys, and lobbyists. Center staff mem- CPIL's Vietnamese refugee clients to ment discrimination case, was approved bers actively represent the public interest pay $375,000 in attorneys' fees and by a federal judge in December. (See in a variety of fora, including the courts, costs, contending that CPIL's action was CRLR Vol. 10, No. 4 (Fall 1990) p. 23; the legislature, and administrative agen- frivolous. On December 24, CPIL- Vol. 9, No. 4 (Fall 1989) p. 17; and Vol. cies. -which had represented its clients on a 8, No. 2 (Spring 1988) pp. 17-18 for The Center is attempting to make the pro bono basis-filed a cross-motion for background information on the case.) regulatory functions of state government its own fees. At a January 18 hearing on Although not expressly admitting culpa- more efficient and more visible by serv- both motions, San Francisco Superior bility, Chevron agreed to establish an ing as a public monitor of state regulato- Court Judge Stuart Pollak denied the $800,000 Lost Pay Settlement Fund to ry agencies. The Center studies approxi- Board's motion and awarded CPIL settle claims for back pay, front pay, and mately seventy agencies, including most $75,000 in attorneys' fees and costs, employee benefits lost due to denial of boards, commissions and departments finding that CPIL's clients were the pre- employment opportunities. Chevron has with entry control, rate regulation, or vailing parties and that CPIL's action also set up a Compensatory Damages related regulatory powers over business, resulted in the enforcement of important Fund of $700,000 for settlement of trades, professions, and the environment. claims of emotional distress caused by rights and conferred a significant benefit lost promotional opportunities and/or MAJOR PROJECTS: on a substantial group of people. The harassment based on race or national ori- On November 1, the University of court found that CPIL was entitled to gin that was suffered in a hostile work San Diego announced that philan- recover its fees under both the federal environment. In addition, Chevron has thropists Sol and Helen Price have civil rights laws (42 U.S.C. section pledged to promote and assign African- endowed a $1.8 million faculty chair in 1988) and the state "private attorney Americans and Latinos to vacancies at a public interest law. The Price Public general" doctrine (Code of Civil Proce- rate that reflects the true availability of Interest Law Chair, the first of its kind in dure section 1021.5). qualified applicants for those jobs. the nation and the first endowed faculty On September 11, CPIL filed a letter Chevron will submit annual reports chair at the University of San Diego brief in support of plaintiff Bonnie describing the number of qualified School of Law, will be offered to CPIL Moore's petition for review to the Cali- minority people in each promotion Director Robert C. Fellmeth when it is fornia Supreme Court in Moore v. State source pool and, if challenged, must pro- formally established in the fall of 1993. Board of Accountancy, in which Moore vide a full explanation as to why it could In exchange for the Prices' generous challenges the validity of a Board rule not find sufficient qualified candidates. gift, the University has agreed to support prohibiting unlicensed accountants the academic component of the Center legally practicing accountancy from for Public Interest Law. Combined, these using the terms "accountant" or "ac- CENTER FOR PUBLIC two actions mean that CPIL is now a counting" in their advertising. (See INTEREST LAW permanent part of the USD School of infra agency report on BOARD OF University of San Diego Law, and that its educational program ACCOUNTANCY; see also CRLR Vol. School of Law will endure indefinitely. CPIL is grateful 10, No. 4 (Fall 1990) p. 51 and Vol. 10, to the Prices and to the University for No. 1 (Winter 1990) p. 53 for back- A Icala Park their steady support throughout the past ground information on the Moore case.) San Diego, CA 92110 decade. On October 18, the California Supreme (619) 260-4806 CPIL's litigation docket was full this Court unanimously granted the peti- winter. On October 9, in Le Bup Thi Dao tion for review. On January i1, CPIL The Center for Public Interest Law v. Board of Medical Quality Assurance, staff counsel Julie D'Angelo filed an (CPIL) was formed in 1980 after the U.S. Supreme Court denied CPIL's amicus curiae brief in support of Moore,

The California Regulatory Law Reporter Vol. 11, No. 1 (Winter 1991' PUBLIC INTEREST ORGANIZATION ACTION

contending that the Board is a constitu- McGuigan had failed in his attempts to junction with Tom Papageorge of the tionally invalid tribunal for purposes of secure the waiver and/or the hearing for California District Attorneys' Associa- adopting and enforcing this advertis- over three years. On July 25, BOP tion and likely to be carried by Assem- ing rule. agreed to give Dr. McGuigan the hear- blymember Terry Friedman or Senator On October 25, CPIL staff counsel ing, while maintaining it has no legal Robert Presley; a bill to create and regu- Carl Oshiro filed a lawsuit on behalf of obligation to afford him the hearing and late a new class of legal practitio- Attorney General John Van de Kamp conditioning the offer upon his agree- ner-the legal technician; a bill to fur- and the "Yes on 131" Committee, seek- ment to dismiss his lawsuit with preju- ther improve the physician discipline ing to compel opponents of Proposition dice. Dr. McGuigan refused, on the basis system of the Medical Board; and a pos- 131-primarilyAssembly Speaker Willie of his belief that other psychologists who sible bill to substitute a court-assessed Brown, Senate President pro Tempore meet the criteria of section 2946 should civil penalty system against police agen- David Roberti,.and their controlled com- not have to file suit in order to secure cies for constitutional violations in lieu mittees-to identify themselves as the their rights under the APA. On August of enforcement through the exclusionary sources of "No on 131" television adver- 31, CPIL went to court, seeking an order rule. These last three bills are likely to be tising in compliance with Proposition requiring BOP to provide an administra- carried by Senator Robert Presley. 105, a truth-in-initiative-advertising law tive hearing in all such instances, not According to CPIL chief legislative enacted by the voters in 1988. Proposi- merely when an aggrieved applicant files advocate Steve Barrow, the Center will tion 131 was one of two initiatives on a lawsuit. Because the Board had offered also assist with two bills it helped draft the November ballot that would impose to give Dr. McGuigan a hearing on its which failed enactment during 1990. term limits on legislators and statewide denial, the court dismissed the case as The CPIL-drafted bill to create an office elected officials. It was leading 2-1 in moot (over CPIL's strong objection that of special prosecutor to pursue specified the polls until the final two weeks of the the voluntary cessation of illegal activity political crimes by government officials campaign, when Brown and Roberti is not grounds for rendering a case may be reintroduced by Senator Lucy began running opposition ads featuring moot). CPIL has appealed the ruling. Killea (AB 410 in 1990). Also, Senator actresses Angela Lansbury and Sharon In other litigation, CPIL recently Gary Hart has requested CPIL's assis- Gless-ads which failed to disclose the appeared as a party and as counsel in tance in advocating a bill allowing a cor- identity of the parties paying for them. Caballero v. McMahon, No. 365269 poration to be subject to probationary Proposition 131 was eventually defeat- (Sacramento County Superior Court), in conditions following criminal convic- ed; Proposition 140, which imposes which plaintiffs challenged the enact- tion. SB 2500 (Hart), so providing, even harsher term limits than did Propo- ment of SB 2454 (Chapter 465, Statutes achieved passage in 1990 but was vetoed sition 131, was narrowly passed. of 1990). As introduced and heard in by Governor Deukmejian. In their defense, the legislators hope numerous committees, SB 2454 mandat- The Center will also be exploring to capitalize on a strange loophole in the ed the State Registrar to design a new other issues in the legislature, including truth-in-advertising law, which cancels decorative heirloom marriage certificate generic reforms to the APA, reform of the disclosure requirement if the ad is and to provide these certificates upon engineer billing practices, and-through targeted equally at two initiatives. request and payment of a fee. Late in the its affiliated Children's Advocacy Insti- CPIL's clients claim that far more than legislative session, the bill was amended tute-will pursue an additional package 50% of the ad was targeted only at to include new provisions on the entirely of eight bills by six legislative authors Proposition 131. The only remedy pro- different subject of early welfare fraud affecting the Board of Control, child vided by the disclosure law for its viola- prevention. CPIL and numerous other abuse detection, child care insurance, tion is treble damages, which CPIL's parties challenged the bill as violative of and the organization and funding of chil- clients are seeking against the No on 131 the "single subject rule" in Article IV, dren's services. & 140 Committees (which paid for the section 9 of the California Constitution. On October 3-the fifth birthday of ads) and a San Francisco television sta- After a November 16 hearing, the court the embattled California Lottery, the tion which ran the ads after being told agreed and invalidated the entire bill. Senate Governmental Organization they were illegal. The case may be abat- During the 1991 legislative session, Committee held a public hearing on ed pending the resolution of a case now CPIL has drafted and will sponsor a bill numerous aspects of the Lottery. CPIL on appeal which tests the constitutionali- to prevent civil litigants from agreeing to staff counsel Elisa D'Angelo testified at ty of Proposition 105, upon which seal court files which contain informa- the hearing, focusing her remarks on the CPIL's suit is based. tion relative to professional malpractice Lottery's huge advertising budget, the CPIL recently represented San Diego or consumer product dangers. Senator State Lottery Commission's failure to psychologist Dr. Frank McGuigan in Bill Lockyer, chair of the Senate Judicia- properly supervise the contents of the McGuigan v. Board of Psychology, No. ry Committee, plans to carry the bill. advertising campaign, and some ques- 364481 (Sacramento County Superior CPIL is also a strong supporter of AB tionable advertising tactics used by the Court), challenging BOP's refusal to 102 (Connelly), which would reinstate Lottery. D'Angelo suggested several grant Dr. McGuigan an administrative the Brown Open Meetings Act agenda legislative changes for the Committee's hearing on its denial of his request for requirement improvidently blue-pen- consideration (see supra FEATURE waiver of the licensing examination. Dr. ciled by Governor Deukmejian during ARTICLE for detailed background McGuigan's request was based on his the 1990 budget crisis. (See CRLR Vol. information). On November 11, Senator psychologist licensure in two other 10, No. 4 (Fall 1990) p. 13 for back- Dills, chair of the Senate Governmental states and his significant contribution to ground information.) Organization Committee, contacted psychology, under Business and Profes- CPIL is also involved in the research CPIL and asked it to draft several of the sions Code section 2946. In July 1990, and drafting of additional measures at legislative amendments recommended CPIL staff counsel Terry Coble filed suit the request of legislators, including the by D'Angelo in her testimony. Dills is seeking the hearing under the Adminis- following: a financial institution regula- expected to introduce the legislation in trative Procedure Act (APA), after tory reform package developed in con- early 1991.

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CPIL Program Manager Beth Givens bailout. The report concentrates on the is time to get the special interests and continues work on the inside wiring Sacramento connection to the S&L scan- their money out of Sacramento." To grant jointly awarded to CPIL and the dal. obtain copies of the report, contact Com- Utility Consumers' Action Network According to the report, the Califor- mon Cause at the address listed above. (UCAN) by the Public Utilities Com- nia legislature brought the S&L money (See CRLR Vol. 10, No. 4 (Fall 1990) p. mission's Telecommunications Educa- back to Sacramento by "out-deregulat- I for further information on this issue.) tion Trust. During the fall, Givens coor- ing" the federal government. While fed- According to a Common Cause dinated the publication of four eral deregulation allowed S&Ls to invest report issued on November 20, Califor- informational brochures and a poster, 40% of their deposits in high-risk ven- nia voters registered their dissatisfaction which are now being distributed to sev- tures, California deregulation invited in the November election by voting in eral target groups which have been iden- S&Ls to invest 100% of deposits in record numbers against incumbents and tified as being the least aware of their speculative deals. As a result, many fed- for third party candidates. The study is rights and responsibilities regarding tele- erally chartered S&Ls converted to Cali- based on the Secretary of State's 1990 Report and the Statement phone inside wiring (IW). The most fornia charters-235 applications to Race Summary of the Vote for the 1986 and 1988 Gen- popular of the brochures ("What to Do open new thrifts were filed in California CCC's analysis found When the Phone Doesn't Work") has in just two years. At the same time, the eral Elections. examiners and that: been printed in English, Spanish, Fil- number of state S&L appraisers dropped from 109 in 1977 to -Third party candidates received ipino, Vietnamese, Cambodian, Lao, 31 in 1983. twice as many votes on average in the Hmong, and Chinese. UCAN recently The report maintains that during the 1990 election, compared to the 1988 a special issue of its Watchdog devoted early 1980s, the California legislature election. newsletter exclusively to inside wiring and administration allowed the S&Ls to -The margin of victory for Califor- and other telecommunications-related be owned by almost anyone and to invest nia's congressional, Senate and Assem- issues. in almost anything. "California lawmak- bly incumbents shrank by as much as Finally, CPIL has been contacted by ers started a second gold rush, as S&L twenty percentage points in some cases. representatives of newly elected Insur- ,entrepreneurs' flocked to the state to On average, incumbents' margin of vic- ance Commissioner John Garamendi stake their claims. The story ends in tory decreased by six points. and asked to advise the Commissioner insolvency and a multi-billion dollar -Though California voters returned on organizational and technical ques- bailout." According to the report, S&Ls most incumbents to office, many incum- tions relevant to CPIL's previous insur- "found [California] lawmakers willing to bents no longer hold "safe seats" (receiv- ance regulation participation, and to open the vaults and turn their backs. The ing at least 60% of the vote). assist in the implementation of Proposi- California politicians who let state-char- "Voters are not going to vote for a tion 103. (See CRLR Vol. 10, No. I tered S&Ls invest as they pleased, prof- challenger they've never heard of. But in (Winter 1990) p. 25; Vol. 9, No. 4 (Fall ited as well. They accepted millions of 1990, a significant number of voters 1989) pp. 17-18; and Vol. 9, No. 3 (Sum- dollars in campaign contributions from voiced their dissent by voting against mer 1989) pp. 15 and 86-87 for back- the S&Ls, many of which are now insol- incumbents and in favor of third party ground information.) vent and/or targets of FBI investiga- candidates," said CCC policy analyst tions." Kim Alexander. "Many of California's The report said that Assemblymem- incumbents will be vulnerable in 1992. COMMON CAUSE ber Tom Bane, who carried a key S&L If they are challenged by a well-known 10951 W. Pico Blvd. deregulation bill in 1983, accepted opponent, the incumbent's chance of los- Los Angeles, CA 90064 $513,000 in contributions from S&L ing will be much greater the next time (213) 475-8285 interests between 1979 and 1989-more around." than any other legislator. By contrast, In the 1991 legislative session, Cali- fornia Common Cause will support SB California Common Cause (CCC) is U.S. Senator (and now California Gover- nor) Pete Wilson, the top congressional 55 (Alquist), which would create the a 55,000-member public interest lobby- California Constitution Revision Com- ing organization dedicated to obtaining a recipient of S&L contributions, collected $243,000 during the same period. Many mission. The bill would require the new- more open, accountable and responsive in ly formed commission to submit a report government and decreasing the power of of the largest campaign contributions came from S&Ls that are now to the legislature and governor by Octo- interests to affect the legislature. California special insolvent or under investigation by the ber 1, 1991, indicating its findings with MAJOR PROJECTS: FBI, including American Savings & respect to the formulation of the state In October, California Common Loan ($327,000), Columbia Savings & budget and making recommendations for Cause and Public Citizen (Washington, Loan ($240,000), Mercury Savings & improving the budget process. The com- D.C.) issued a report entitled Clearance Loan ($190,000), and Lincoln Savings & mission would cease to exist on Febru- Sale of the Decade: The Role of Califor- Loan and its parent company, American ary 1, 1993. nia Elected Officials in the S&L Scan- Continental Corporation ($165,000). CCC also plans to sponsor or support dal. The report explained that during the The Common Cause/Public Citizen legislation to require a large-type disclo- 1980s, savings and loan interests con- report called the S&L catastrophe not sure on the top of both sides of so-called tributed more than $4 million to Califor- only a financial disaster, but a political "slate mailers" stating, "This is not an nia legislators, who promptly and scandal of unprecedented proportion. "It official party endorsement"; legislation irresponsibly deregulated the S&L is a scandal that demands not just strict to clarify and strengthen existing provi- industry. Thereafter, savings and loan regulation of the S&L industry, but even sions requiring disclosure of the identity institutions invested in junk bonds and more urgently, reasonable term limits of major funders of initiative campaigns other risky ventures-resulting in the and campaign finance reform. This study in all advertising; and a variety of mea- collapse of the S&L industry and the demonstrates again that money and poli- sures to liberalize voter registration and current $350 billion taxpayer-financed tics make dangerous bedfellows-that it absentee voting r equirements.

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CONSUMER ACTION (Winter 1990) p. 27 for background that they lack information on what they 116 New Montgomery St., Suite 223 information.) Outside California, twenty can do to complain about unfair treat- ment by an operator service provider; San Francisco,CA 94105 low-interest cards were offered in 1987, but only nine were available in 1990. In and that they are, accordingly, being (415) 777-9635 California, over one-third of the credit deprived of the free choice essential to San Francisco Consumer Action cards surveyed had interest rates of the operation of a competitive market." (CA) is a nonprofit consumer advocacy 19.8%, with an average rate of 18.25%. Consumer Action is pleased with the and education organization formed in Nationwide, eight of the top ten credit bill, but would have preferred the inclu- 1971. Most of its 2,000 members are in cards issued carried rates of 19.8%. The sion of a provision placing a cap on AOS northern California but significant lowest credit card interest rate available rates to prevent price gouging, similar to growth has taken place in southern Cali- statewide at the time of CA's study was the California law for AOS calls. Under fornia over the past year. CA is a multi- the Bank of Canton of California at 14% H.R. 971/S. 1660, the FCC has the issue group which since 1984 has on Visa or Mastercard authority to raise AOS rates after an focused its work in the banking and CA Executive Director Ken McEI- application has been filed if the agency telecommunications industries. downey urged consumers to shop com- believes the rates are reasonable. CA CA has filed petitions with and paratively, noting, "Every single point of also argued for a provision in the bill appeared before the California Public interest costs U.S. credit card holders (which was not included) that would Utilities Commission (PUC) in the field $1.22 billion in interest every year." CA have prohibited AOS companies from of telephone rates. Statewide pricing sur- found that many consumers intend to blocking access to any long distance veys are published periodically compar- pay off their card's balance each month, company if a caller dials the access code. ing the rates of equal-access long dis- but end up paying only the monthly min- H.R. 971/S. 1660 requires that the AOS tance companies and the prices of imum. For example, during the Decem- company identify itself to a caller before services offered by financial institutions. ber 1989 holiday season, consumers the caller incurs any charge for the call. Once each year, CA publishes consumer charged $10 billion more than they paid The AOS company must also provide service guides for the San Francisco Bay off in the two months of the new year. information on billing and charges when surveys, CA area and the Los Angeles area which list In contrast to previous requested, as well as the method by agencies and groups offering services to found no credit cards without annual which the caller may complain about consumers and assisting with com- fees. During 1990, these fees ranged rates and service. Finally, the bill to a plaints. A free consumer complaint- from a low of $12 at Eureka Bank requires that the FCC undertake a two- /information switchboard is provided by high of $25 at First Interstate Bank. The year study of the AOS situation and sub- credit group publishes a regular survey also found that many mit a final report to Congress. (See CA, and the have lower interest newsletter which includes the pricing unions generally CRLR Vol. 9, No. 3 (Summer 1989) pp. rates and fees. McEldowney concluded, surveys. More than 20,000 individual 16-17 and Vol. 8, No. 4 (Fall 1988) p. 20 "We're keeping a close eye on this trend. consumers requested CA publications for background information on CA's We're very worried about the lack of during 1989. Consumer organizations AOS advocacy.) not only in requested bulk orders of CA publica- choices in the marketplace, nationwide. Consumers are tions in 1989 which exceeded 350,000 this state but paying needlessly high APRs and will copies. CONSUMERS UNION continue to do so until they make it clear 1535 Mission St. MAJOR PROJECTS: that they to the financial institutions San Francisco,CA 94103 Consumer Action's eighth annual want lower interest rates." credit card survey, released on Novem- The November issue of Consumer (415) 431-6747 ber 20 in Los Angeles and San Francis- Action News reported that the federal Consumers Union (CU), the largest co, found that low-interest-rate credit Telephone Operator Consumer Services consumer organization in the nation, is a cards have become very difficult to Improvement Act of 1990 was signed consumer advocate on a wide range of locate. Within California, only three into law on October 17 (H.R. 971-Rep- issues in both federal and state forums. institutions issue credit cards with annu- resentative Jim Cooper, D-Tennessee; At the national level, Consumers Union al percentage rates (APR) at or below and S. 1660, Senator John Breaux, D- publishes Consumer Reports. Historical- 16%. Nationwide, CA was able to verify Lousisiana). The law grants the Federal ly, Consumers Union has been very only nine other low-interest cards avail- Communications Commission (FCC) active in California consumer issues. able to Californians. "Even more dis- authority to prescribe rules governing turbing," noted CA, "the survey reveals alternative operator services (AOS) in MAJOR PROJECTS: that instead of offering competitive order to protect consumers from unfair On January 3, CU filed suit in San rates, a large segment of the credit card practices. AOS companies provide oper- Francisco County Superior Court, charg- industry has adopted 19.8% APR as an ator services at many hotels, hospitals, ing that Aetna Finance Company added official standard." Consumer Action and pay phones in competition with long an illegal overcharge to more than published its 1990 Credit Card Survey in distance companies. The FCC received 50,000 consumer loans in the past four the November issue of Consumer Action more than 4,000 complaints regarding years. The suit would require Aetna News, which is available free to those AOS companies from January 1988 Finance Company to refund monies who send a self-addressed, stamped, through February 1990. With regard to improperly collected on loans and to business-size envelope with 45 cents these complaints, S. 1660 states, "Those stop future collections of loan pay- postage to the CA address listed above. consumers have complained that they ments, totaling $47.2 million. Aetna In 1988, CA found nine institutions are denied access to the interexchange Finance does business in Califor- in California offering low-interest cards carrier of their choice; that they are nia under the name ITT Financial Ser- with APRs of 16% or below. This num- deceived about the identity of the com- vices. ber dropped to six in 1989 and only three pany providing operator services for "Aetna Finance Company and ITT in 1990. (See CRLR Vol. 10, No. I their calls and the rates being charged; Financial Services have illegally and

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blatantly picked the pockets of thou- FDA claims the treated milk amounts to hopes to create a waste reduction sands of small borrowers," warned CU only about 1% of the nation's total milk blueprint for the entire fast-food indus- staff attorney Gail Hillebrand. The CU supply. try. action was filed as a cross-complaint in a Critics argue that there is no need to The task force will examine all suit filed on December 7 by Aetna use the hormone now since there is no aspects of McDonald's operations that Finance, in which it asked the court to shortage of milk, and an increase in pro- contribute to waste generation and iden- declare the overcharge legal. At issue is duction could cause a harmful economic tify ways to reduce, reuse, recycle, and Aetna/ITT's practice of charging bor- effect. According to the report, use of the compost the waste. In the spring of 199 1, rowers of $1,000 or less a 5% adminis- drug is unlikely to lower milk prices and the task force will release a report detail- trative fee both on the loan and on the may cost consumers more if the federal ing waste reduction recommendations. fee itself. The result, according to CU, is government must spend more to buy up McDonald's may or may not implement an average overcharge of about $2 milk surpluses. the recommendations, but EDF will be affecting more than 50,000 small loans. In its 26-page report, Consumers free to publicize and advocate its own The California Legislative Counsel has Union called for a new investigation of conclusions from the study. EDF is con- issued a ruling that such "fees on fees" the health effects of using the hormone sidering several options, including the violate the California Financial Code. and said the 1985 FDA decision was pre- use of fewer materials in packaging and CU's Hillebrand said, "Consumers mature. Beyond the human health con- shipping, more unbleached paper prod- Union is asking the court to stop Aetna cerns, CU asserted there are questions ucts, more recycling and use of recycled Finance Company and ITT from collect- about the hormone's effect on animals' materials, and composting of organic ing any payments on loans upon which health. Consumer and health groups waste. EDF will not accept any funding they assessed an illegal fee, and to have warned of increasing incidence of from McDonald's nor allow the compa- refund payments consumers have infections from use of the hormone and ny to use EDF's name in advertising or already made on these loans. We esti- from the demands on individual cows for promotion. mate that the principal and interest on abnormally high production of milk. Last summer in Houston, a coalition these loans for the past four years is More animal disease could lead to of major environmental organizations $47.2 million." She said annual reports increased use of antibiotics and other joined forces to promote an environmen- filed by Aetna/ITT show most borrowers drugs, thus raising the levels of drug tal agenda at the economic summit of the pay interest rates of 25% to 29% on residues in milk supplied to consumers. seven major industrialized nations (the these small loans, with some borrowers United States, Canada, Great Britain, paying rates as high as 40%. Overcharg- France, Japan, Italy, and Germany). ing many people a small amount can be ENVIRONMENTAL Banding together as an "EnviroSummit" very profitable, and most consumers do DEFENSE FUND and seeking to persuade the governments not even know they have been over- Rockridge Market Hall to carry out their espoused environmen- charged. According to CU, state law 5655 College Ave. tal policies were EDF, Friends of the provides that a lender caught willfully Earth, National Audubon Society, overcharging has no right to receive any Oakland, CA 94618 National Wildlife Federation, Sierra payments on the loan. (415) 658-8008 Club, Natural Resources Defense Coun- On December 3, Consumers Union The Environmental Defense Fund cil, Union of Concerned Scientists, the asked the federal Food and Drug Admin- (EDF) was formed in 1967 by a group of Wilderness Society, and non-govern- istration (FDA) to stop the sale of milk Long Island scientists and naturalists mental organizations from the "Group of from cows treated with a genetically concerned that DDT was poisoning the Seven" nations. engineered growth hormone. The syn- The coalition developed a set of envi- environment. EDF was a major force thetic hormone is administered to cows behind the 1972 federal ban of DDT. ronmental proposals in six areas: global to increase milk production. The growth climate change and energy policy; pro- Staffed by scientists, economists, and hormone is manufactured by American tection of critical ecosystems; ocean pol- attorneys, EDF is now a national organi- Cyanamid, Eli Lilly, Monsanto, and lution; population; environmental zation working to protect the environ- aid to Upjohn. The FDA has consistently eastern Europe; and economic policies ment and the public health. Through argued the substance is safe for human affecting developing countries and the extensive scientific and economic health. On December 8, it released a environment. They compiled research, EDF identifies and develops a "score- statement by a government advisory card" to evaluate and rank the perfor- solutions to environmental problems. panel reiterating that there is no danger mances of the seven nations in the six EDF currently concentrates on four areas in human consumption of milk and meat areas of concern. The scorecard and a of concern: energy, toxics, water from cows treated with the hormone thirty-page detailed analysis were resources and wildlife. "recombinant bovine somatotropin" (or released at a news conference in Hous- BST). The panel, convened by the MAJOR PROJECTS: ton during the summit. The scorecard National Institutes of Health, concluded The October 1990 issue of EDF Let- placed the Federal Republic of (West) that the hormone is a variant of a natural ter reported that McDonald's Corpora- Germany in first place, with the United substance in blood. The committee tion has agreed to work in a joint task States and Canada tied for fourth place. admitted that its judgment was based on force with EDF to identify new ways to EnviroSummits are planned for next available information and that it did not reduce the trash generated by its more year's "Group of Seven" economic sum- have access to a large body of data than 11,000 restaurants worldwide. mit in London. regarding the hormone's effect on ani- Recently, McDonald's also announced it EDF and ten other environmental mal health. The substance is still under is phasing out styrofoam packaging and groups have petitioned U.S. Depart FDA review and has not been approved replacing it with paper products. EDF ment of the Interior Secretary Manuel for broad use. In 1985, the FDA ruled has been involved in negotiations with Lujan to list the Pacific yew tree as a that milk from cows treated with the hor- McDonald's regarding its solid waste threatened species under the federal mone could be sold to the public. The since July 1989. With this project, EDF Endangered Species Act. The American

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Cancer Society also asked Lujan to "take point blank range is no sport at all. It's -ban the hunting of black bears; and any and all actions to protect the tree as a cruelty, plain and simple. I say that not -raise the penalties for cock fighting threatened species." The bark of the only as an athlete and manager of the against organizers, trainers, and owners. Pacific yew is the only known source of Oakland A's, but as a person who strives To obtain a Voting Record of the Cal- taxol, one of the most promising new to be compassionate...It's up to all of us ifornia State Legislature, 1989-90, con- drugs used in treating various cancers, to see that the black bear does not follow tact PAW PAC, P.O. Box 2354, San including advanced ovarian cancer. The the grizzly into the archives of California Francisco, CA 94126; (415) 841-7108. tree grows mainly in the ancient forests history." For alerts on California legislation relat- of the Pacific Northwest, has been seri- On October 3, the Fund presented the ed to wildlife conservation and animal ously depleted by heavy logging, and second half of its litigation to prevent the protection, send a tax-deductible dona- receives virtually no protection on either Department of Fish and Game (DFG) tion to Fund for Animals, c/o Rose Lern- private or public lands. A shortage of from proceeding with its announced berg, 831 Balra Dr., El Cerrito, CA taxol is impeding medical research, and black bear hunt. On August 8, the Sacra- 94530. For alerts on federal legislation, all attempts to synthesize the drug have mento Superior Court had agreed with send a non-tax-deductible donation to failed. According to one estimate, only the Fund and blocked bow-and-arrow Society for Animal Protective Legisla- 5% of original Pacific yew habitat hunting of black bears (see CRLR Vol. tion, P.O. Box 3719 Georgetown Station, remains. The tree grows slowly and does 10, No. 4 (Fall 1990) pp. 28-29 and 156- Washington, D.C. 20007, or to the not reestablish itself after clearcutting or 57 for background information). Howev- Humane Society of the United States, in tree plantations during a typical fifty- er, in October, the court ruled that DFG's 2100 L St., N.W., Washington, D.C. to eighty-year rotation period. environmental impact document on the 20037. Preliminary studies show that taxol firearm portion of the proposed hunt was may also help in treating cancers of the adequate; that aspect of the black bear lung, breast, head, neck, and stomach, hunting season began on October 12. LEAGUE FOR COASTAL and malignant melanoma. Listing the Last summer, Fund for Animals PROTECTION tree as threatened would authorize the activists protested the Ringling Brothers P.O. Box 190812 government to protect the species from and Barnum & Bailey Circus in Los San Francisco,CA 94119-0812 Angeles and several other cities, carry- habitat destruction and commercial (415) 777-0220 exploitation. The listing would permit a ing signs which read, "The Cruelest controlled sustainable harvest of yew for Show on Earth." They distributed fliers Created in 1981, the League for medical research while prohibiting opposing the exploitation of captive and Coastal Protection (LCP) is a coalition unauthorized collection of the tree for performance animals as "jesters for of citizen organizations and individuals other purposes. "The yew is an example human entertainment." Fund President working to preserve California's coast. It of the need to protect forests and the Cleveland Amory blasted the circus for is the only statewide organization con- myriad living resources within them," using animals to "do stupid tricks." He centrating all its efforts on protecting the said Bruce Manheim, EDF attorney-sci- said the circus is "a relic of a barbaric coast. The League maintains a constant entist who drafted the EDF petition to age-an anachronism. This doesn't send presence in Sacramento and monitors Lujan. the message children should have about Coastal Commission hearings. saving animals in the wild." Animal rights activists vowed to follow the cir- MAJOR PROJECTS: FUND FOR ANIMALS cus everywhere and educate the public The fall 1990 issue of LCP's Coast- lines newsletter noted that either guber- Fort Mason Center, Bldg. C about its alleged mistreatment of ani- mals. natorial candidate-Republican Pete San Francisco,CA 94123 In the 1991 legislative session, Cali- Wilson or Democrat Dianne Fein- (415) 474-4020 fornia Fund for Animals will support stein-would be beneficial to the Cali- Founded in 1967, the Fund works for legislation to: fornia coast, in sharp contrast to the anti- wildlife conservation and to combat cru- -prohibit use of double-decker trucks environmental era under Governor Deukmejian. Although elty to animals locally, nationally, and in the transport of horses for slaughter; both the Sierra internationally. Its motto is "we speak -ban the draize eye-irritancy and skin Club and the California League of Con- servation Voters endorsed Dianne Fein- for those who can't." The Fund's activi- irritancy tests on animals for cosmetics; stein, the League said, "Both candidates ties include legislation, litigation, educa- -add poultry to the list of animals to have taken strong, positive leadership tion, and confrontation. Its New York be humanely slaughtered; on.. .coastal .... founder, Cleveland Amory, still serves -regulate pet shops to protect dogs protection Coastlines said Pete Wilson has opposed offshore without salary as president and chief and customers from exploitation by the "puppy mill" industry; oil drilling as mayor of San Diego and as executive officer. -require a veterinarian to be present at a United States Senator. LCP pointed out MAJOR PROJECTS: rodeos; that although Wilson has said he sup- Fund for Animals' second biannual -protect pets from being stolen and ports a permanent moratorium on fur- 1990 newsletter reported that Tony La sold to laboratories for animal research; ther lease sales off the coast, he has not Russa, manager of the Oakland A's base- -ban the small crate used in raising endorsed Representative Barbara Box- ball team, has joined the Fund's veal calves; er's National Ocean Protection Act "Sportspersons for Animal Rights" cam- -end the trophy hunting of Nelson (H.R. 3751). Wilson also failed to paign. He is assisting the Fund's efforts bighorn sheep; cosponsor or endorse Boxer's California to save the California black bear from -change the Fish and Game Commis- Ocean Sanctuary bill (H.R. 48) to ban hunting. At a summer state Capitol sion to the Fish and Wildlife Commis- oil drilling off the California coast. Wil- protest, La Russa sent a statement to be sion with twelve members, including son opposed Proposition 128 (the "Big read, which said in part, "Shooting the three public members; one animal pro- Green" initiative) on the Novem- remarkable black bear out of a tree at tectionist, and one environmentalist; ber ballot, but said he will create a

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cabinet-level state Environmental Pro- widely-publicized contamination of the duction on unleased portions of the Out- tection Agency. Kesterson Wildlife Refuge and the er Continental Shelf, and in the Arctic Wilson also stated he would "support broader policy issues underlying that cri- National Wildlife Refuge could provide and adequately fund a strong, effective sis. In California, NRDC appears fre- less than one percent of world oil sup- coastal protection program under the quently before the Coastal Commission, plies by early in the next century." Gold- California Coastal Commission." In the Energy Commission, and Public Utilities stein added, "The good news is that we past, he has shown interest in protecting Commission. NRDC headquarters is in have tremendous unexploited resources estuaries and wetlands, according to New York City, with branch offices in of energy efficiency. What is lacking is a LCP. In 1984, he played a key role in Washington, D.C., San Francisco, Los government commitment to acquire winning wild and scenic status for the Angeles, and Honolulu. these resources." Tuolumne River. More recently, at the NRDC's recommendations to the fed- MAJOR PROJECTS: urging of environmentalists, he adopted eral government for developing energy a "wait-and-see" approach to the pro- On December 20, NRDC joined with efficiency resources include the follow- posed Auburn Dam on the American a coalition of environmental, poverty, and civil rights legal groups in filing ing: River. -Enact miles-per-gallon standards for Matthews v. Kizer, No. C90-3620-EFL, In his November Coastlines com- cars (Senator Bryan's S.4532 or Repre- in federal court in San Francisco. The mentary, LCP Chair Mel Nutter noted sentative Boxer's H.R. 1224). defendant is the State of California, that a new era of refreshing politics is -Increase funding for mass transit beginning with a new governor who will through Department of Health Services systems and Amtrak. Diverting federal be much more favorable to coastal pro- director Kenneth Kizer. In this class funds from highway construction to tran- action complaint, plaintiffs challenge the tection issues. Nutter urged coastal pro- sit construction could accomplish this at tection advocates to re-assert and revital- state's failure to require blood lead level no cost to taxpayers. ize their mission. testing as part of its Medi-Cal program, -Modify federal home loan programs alleging that the federal Medicaid statute to give energy-efficient homes preferen- "imposes a mandatory duty upon the tial treatment and to encourage weather- NATURAL RESOURCES [state] to ensure that blood lead levels ization of existing homes at point of sale. DEFENSE COUNCIL are measured in poor children." DHS The equivalent of one million barrels of 90 New Montgomery St., Suite 620 asserts that the federal statute imposes oil per day could be saved through no such requirement; thus, the court weatherization programs modeled on San Francisco, CA 94105 must determine which interpretation is (415) 777-0220 NRDC's pilot project in Hood River correct. The suit also alleges that the County, Oregon, which weatherized The Natural Resources Defense state's failure to provide mandatory lead 85% of the eligible homes in a test com- Council (NRDC) is a nonprofit environ- testing and treatment programs violates munity in three years. mental advocacy organization with a the civil rights of California's poor chil- -Phase in an "Energy Security/Envi- nationwide membership of more than dren. ronmental Externality/Carbon" tax of 50 125,000 individuals, more than 38,000 Many other states are apparently cents per gallon on gasoline timed to of whom reside in California. Since ignoring what plaintiffs believe is a fed- minimize price shocks. 1972, NRDC's western office in San eral requirement, and NRDC hopes this -Require that federal facilities reduce Francisco has been active on a wide lawsuit will trigger similar suits across their energy consumption by 5% per range of California, western, and nation- the nation. According to the complaint, year below 1990 levels for the next five al environmental issues. Most of that "Lead poisoning is one of the most seri- to seven years. work is now grouped under five subject- ous and widespread environmental dis- -Enact a revenue-neutral system of matter headings: public lands, coastal eases affecting children in the United rebates for high-fuel-economy cars and resources, pesticides, energy, and water States. Over three million children-one fees on low-fuel-economy cars. This supply. In these areas, NRDC lawyers in six-have levels of lead in their blood market-based system provides manufac- and scientists work on behalf of under- high enough to cause significant impair- turers the incentive to develop cost- represented environmental quality inter- ment to their neurological develop- effective efficiency technologies. ests before numerous state and federal ment." Lead poisoning was recently The fall 1990 issue of NRDC's Ami- forums. Public health concerns are called "the No. 1 environmental problem cus Journal carried a cover story on the increasingly a priority, in addition to facing America's children" by the head contamination and clean-Up problems of conservation of nonrenewable resources of the federal Centers for Disease Con- the nation's network of 17 nuclear and ecosystem preservation. trol. weapons plants and facilities in 13 NRDC has been active in developing In the October/November issue of states, which collectively employ over energy conservation alternatives to new NRDC's Newsline newsletter, NRDC 100,000 people. Since the end of World power plants and offshore oil drilling, attorney David Goldstein reported that War II, the government has spent over and resource-conserving land use poli- world oil prices have increased from $18 $250 billion on the production of about cies in California's coastal counties and per barrel before Iraq's Saddam Hussein 60,000 nuclear warheads. Official esti- federally-managed lands. Notable recent invaded Kuwait to as high as $40 per mates of cleaning up the extensive achievements by NRDC include leader- barrel afterward. According to Gold- radioactive and toxic chemical contami- ship of coalitions which have developed stein, "The problem is not a shortage of nation at these sites have approached broadly-supported federal legislative ini- supply....The Strategic Petroleum $180 billion or more over the next 25 tiatives on pesticide regulation and effi- Reserve is available for use in the event years. ciency standards for household appli- of disruptions in world markets. Calls to In July 1990, the federal Depart- ances. drill on protected federal lands miss the ment of Energy (DOE), which has Agricultural water supply and point: they do not respond to the true authority over the nuclear weapons pro- drainage issues are taking on growing problem, which is sudden price increases gram, admitted that at one facility-the importance with NRDC, including the rather than shortages. At most, oil pro- Hanford Reservation near Richland,

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Washington-more than 540,000 curies MAJOR PROJECTS: 1990) pp. 37-38 for background infor- of radioactive iodine 131 were released PLF's Winter 1990 In Perspective mation.) into the atmosphere from nuclear reac- newsletter reported that the authors of On behalf of the Associated General tors between 1944 and the mid-1950s. Proposition 140, approved by the elec- Contractors of California, PLF lodged an "Compare that to the 1979 accident at torate in November, have asked PLF to appeal in October with the U.S. Ninth Three Mile Island, during which about defend its constitutionality in anticipated Circuit Court of Appeals, again chal- 15 curies were emitted," author Dick litigation. Proposition 140 amends the lenging what PLF characterizes as Russell said. "Families living near Han- state constitution to limit members of the improper reverse discrimination by the ford...may have received radiation doses state Assembly to three terms (six years) City of San Francisco. A year ago, the over the years ten times higher than did and members of the state Senate to two Ninth Circuit invalidated much of San residents living near Chernobyl at the terms (eight years). The governor and Francisco's 1984 hiring preference plan, time it melted down." A major concern most other elected executive branch offi- which PLF says improperly grants job at the Hanford facility is the revelation cers are similarly limited to two four- and residence preference to minorities, in a recent DOE advisory committee year terms. Proposition 140 also reduces women, and local contractors. The court report of possible catastrophic explo- legislative expenses by 38% (about $70 ordered the city to draft a new plan. PLF sions at one or more of the 177 Hanford million per year) and terminates the spe- now claims the city's 1989 response nuclear waste storage tanks, which con- cial pension fund for legislators, placing includes most of the defects invalidated tain tens of millions of gallons of highly the lawmakers in the federal Social earlier and ignores the federal legal radioactive and chemical waste products Security system. Assembly Speaker requirement that preferences apply only from the manufacture of nuclear bombs. Willie Brown, Jr., Senate President pro to victims of prior discrimination. The Reactors at Hanford have been busy for Tem David Roberti, and others have current PLF appeal argues that publicly- many years creating plutonium for threatened to challenge Proposition 140 bid contracts for municipalities must be nuclear weapons. The reservation is also in court; at this writing, no suits have yet awarded to the lowest responsible bidder a vast radioactive waste storage site. The been filed. without regard to race, sex, residence, or last of its plutonium processing plants In December, PLF and the State Bar any other arbitrary factor. was closed in December 1988 for safety of California reached a tentative settle- reasons. ment in Keller v. State Bar, in which the Amicus Journal said the Bush admin- PLANNING AND U.S. Supreme Court ruled that the Bar is istration seeks to continue producing CONSERVATION LEAGUE nuclear weapons even though the Cold prohibited from using compelled dues to support political/ideological activities 909 12th St., Suite 203 War has wound down, and that DOE is Sacramento, CA 95814 planning to restart three nuclear reactors other than those directly related to the to produce tritium at the Savannah Riv- regulation of the legal profession. (See (916) 444-8726 er, South Carolina, facility-reactors CRLR Vol. 10, Nos. 2 & 3 (Spring/Sum- mer 1990) p. 37-38; Vol. 10, No. I (Win- The Planning and Conservation which have been shut down because of League (PCL) is a nonprofit statewide safety concerns. Tritium is a radioactive ter 1990) p. 155; and Vol. 9, No. 4 (Fall 1989) pp. 23 and 138 for background alliance of several thousand citizens and form of hydrogen essential for ther- more than 100 conservation organiza- information on the case.) The State monuclear warheads. tions devoted to promoting sound envi- Bar will pay the as-yet-undisclosed legal NRDC attorney Dan Reicher says ronmental legislation in California. there must be a "...full debate on the fees of PLF and will implement a "nega- Located in Sacramento, PCL actively need for additional nuclear-weapons tive check-off" procedure enabling its lobbies for legislation to preserve Cali- materials and warheads, which takes into members who disagree with the Bar's fornia's coast; prevent dumping of toxic account radically changed world condi- political positions to have a portion of wastes into air, water, and land; preserve tions and the prospects for further arms their dues refunded. Left unsettled, wild and scenic rivers; and protect open control....NRDC's view is that we've according to PLF and the Bar, is the space and agricultural land. reached a point where much of the infor- extent to which the Bar may take politi- PCL is the oldest environmental lob- mation [about the nuclear weapons pro- cal positions. According to State Bar bying group in the state. Founded in gram] that's long been held secret can be General Counsel Diane Yu, the U.S. 1965 by a group of citizens concerned revealed, without serious national secu- Supreme Court never specifically pro- about uncontrolled development rity risks." (See CRLR Vol. 10, Nos. 2 & hibited the Bar from taking political throughout the state, PCL has fought for 3 (Spring/Summer 1990) p. 37 for back- positions. Anthony Caso, PLF's lead over two decades to develop a body of ground information on NRDC's advoca- attorney in the case, warned that if the resource-protective environmental law cy in this area.) Bar or its Conference of Delegates goes which will keep the state beautiful and too far in pushing its political positions, productive. there may be renewed litigation. Since its creation, PCL has been PACIFIC LEGAL FOUNDATION On December 31, the California active in almost every major environ- 2700 Gateway Oaks Dr., Suite 200 Supreme Court upheld the sufficiency of mental effort in California and a partici- Sacramento, CA 95833 an environmental impact statement for a pant in the passage of numerous pieces (916) 641-8888 proposed 400-room resort hotel along of significant legislation, including the the Santa Barbara coast in Citizens of California Environmental Quality Act, The Pacific Legal Foundation (PLF) Goleta Valley v. Board of Supervisors. the Coastal Protection Law, the act creat- is a public interest law firm which sup- PLF participated as amicus curiae in the ing the Bay Conservation and Develop- ports free enterprise, private property case. The court said there was enough ment Commission, the Lake Tahoe rights, and individual freedom. PLF evidence to support the county's conclu- Compact Act, the Energy Commission devotes most of its resources to litiga- sion that none of the alternative develop- Act, the Wild and Scenic Rivers Act, and tion, presently participating in 96 cases ment sites were feasible. (See CRLR laws which enhance the quality of urban in state and federal courts. Vol. 10, Nos. 2 & 3 (Spring/Summer environments.

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PCL is supported by individual and -Transportation-capital outlays and much as $60 per hour, leaving them with group membership fees, with a current operating budgets for public transit sys- an award of only $139,720. The two membership of more than 9,500 individ- tems continue to be underfunded. consumer groups represented fifteen uals. PCL established its nonprofit, tax- -Growth and population-with a pop- low-income, minority, and consumer deductible PCL Foundation in 1971, ulation increase of 700,000 each year in organizations in the administrative pro- which is supported by donations from California, the challenge of controlling ceedings aimed at determining the individuals, other foundations, and gov- growth will be a major priority. appropriate rate of return due insurers ernment grants. The Foundation special- -Air quality-more stringent mea- under Proposition 103. izes in research and public education sures are required to clean up the state's PA attorney Robert Gnaizda accused programs on a variety of natural air. the Commissioner of slashing their fees resource issues. It has undertaken sever- -Water-the declining condition of in retaliation for disagreeing with her Proposition 103 provisions and al major projects, including studies of fisheries indicates that steps must be tak- over According to Gnaizda, the California coast, water quality, river en to mitigate the adverse effects of enforcement. urged the two groups to partici- recreation industries, energy pricing, water development. Gillespie pate in eight months of Proposition 103 land use, the state's environmental bud- PCL's Proposition 116, the Clean Air and Rail Transportation Improvement proceedings, complimented them on get, and implementation of environmen- their participation and contribution to the tal policies. Act passed by voters in June 1990, called for the formation of the "CalCar" proceedings, and then penalized them MAJOR PROJECTS: committee to design a standard intercity when they criticized her. On December 6, PCL celebrated 25 commuter rail car for use in California. Health Access, the statewide coali- years of environmental protection in PCL nominated Dan McNamara, a PCL tion dedicated to comprehensive, univer- California with a gathering at the Mark board member and president of the Train sal, and affordable health care (co- Hopkins Hotel in San Francisco. Former Riders Association, to the CalCar com- founded by Public Advocates and PCL Executive Director Bill Press was mittee. PCL believes that using a stan- chaired by PA staff attorney Lois Salis- master of ceremonies at the event which dardized rail car design will prevent bury), released a study last summer honored two PCL stalwarts-Michael costly duplication of design efforts by showing that current health care spend- Remy, PCL's president for the past ten different agencies, make economies of ing, once intelligently rearranged, is suf- years, and Dwight Steele, the group's scale possible in purchasing the cars, and ficient to cover all Californians with senior vice-president. ensure fleet compatibility so agencies comprehensive benefits, including long- care. The Health Access proposal The November 1990 issue of PCL's can exchange cars. term California Today newsletter highlighted combines public financing with a private the 25-year history of the organization. delivery system that would provide cov- Before PCL came into existence in PUBLIC ADVOCATES erage to all Californians. The proposal through 1965, there was no full-time environ- 1535 Mission St. preserves choice, controls costs expenditure limits and the elimination of mental lobbyist at the state Capitol. PCL San Francisco,CA 94103 was formed by a small group of San waste, provides comprehensive benefits, (415) 431-7430 same as the Francisco Bay Area conservationists and and would cost virtually the present system ($70 billion annually). of the California Roadside Public Advocates (PA) is a nonprofit members Funds would be raised through a gross public interest law firm concentrating on Council (CRC), a highway beautifica- to of education, employment, payroll tax on employees (equivalent tion group (anti-litter and anti-bill- the areas paid by employers health, housing, and consumer affairs. the average percent boards). CRC, the Sierra Club, and other who now cover their workers) plus a 1% groups banded together to organize the PA is committed to providing legal rep- resentation to the poor, racial minorities, employee payroll tax. The proposal Planning and Conservation League for would also increase the very highest the elderly, women, and other legally Legislative Action. They hired an envi- income tax brackets and capture the sub- underrepresented groups. Since its ronmental lobbyist to work in Sacramen- stantial state and federal monies that are PA has filed over 100 to and opened an office in San Francis- founding in 1971, now disbursed through many fragmented represented more co. Today PCL is a true coalition, with a class action suits and programs. (See CRLR Vol. 10, No. 4 than 70 organizations, including the membership of more than 100 state, (Fall 1990) p. 33 and Vol. 10, Nos. 2 & 3 of United Latin local and national groups, and an exten- NAACP, the League (Spring/Summer 1990) p. 38 for back- sive track record of successful advocacy American Citizens, the National Organi- ground information.) For more informa- of significant environmental legislation zation for Women, and the Gray Pan- tion on Health Access' proposal and leg- and ballot initiatives. thers. islation to be reintroduced soon, contact In the next few years, PCL will focus MAJOR PROJECTS: Maryann O'Sullivan, Executive Director on the following areas of environmental In early December, PA and the Latino of Health Access, at (415) 431-7430. legislation: Issues Forum asked the San Francisco On September 25, the Public Utilities -Wildlife and parks-a new study by County Superior Court to force the state Commission (PUC) awarded Public the PCL Foundation indicates the need Insurance Commissioner to pay them the Advocates intervenor compensation in for as much as $50 billion for land and full $260,559 in attorneys' fees and costs the amount of $130,048 for its substan- habitat acquisition over the next twenty they expended in participating in admin- tial contribution to a 1985 PUC proceed- years to meet the needs of a rapidly istrative proceedings to implement ing to establish policies and revisions to growing population. Proposition 103, the insurance reform Pacific Bell's and GTE's Information -Agricultural lands and open initiative passed by the voters in Novem- Access Service (976) tariffs. The PUC space-the state's most productive farm- ber 1988. Former Insurance Commis- determined that PA made a substantial lands are being lost to development. sioner Roxani Gillespie cut by nearly contribution on key issues leading to PCL wants to preserve farmlands for half the time claimed by the groups and PUC decisions in several areas: (1) that future generations. lowered the hourly rates sought by as 976 calls be separated from other calls

The California Regulatory Law Reporter Vol. 11, No. 1 (Winter 1991) PUBLIC INTEREST ORGANIZATION ACTION

on phone bills; (2) that a one-time PIC's office is available to employment ing training designs; conducting train- adjustment of the vendor charge be report subscribers and to the general ing of trainers to increase the number of made if 976 calls were made by a minor public. users able to provide help to others; pro- without parental knowledge or consent; PIC's public interest law program at viding technical assistance to users, and (3) that charges be clearly stated in 976 the four sponsoring law schools helps developing other consulting resources advertisements and on the recorded mes- prepare students to be effective advo- for programs to use; working with Hand- sages for the 976 services; (4) that if a cates for the poor and other disadvan- sNet to develop user manuals and mate- 976 number is designed for children, the taged members of society. A project rials addressing program management advertisement must include oral and known as "PALS"-the Public Interest issues; and conducting out-reach efforts written messages about the costs of the Attorney-Law Student Liaison Pro- to the entire legal services community. call and about asking for parental con- gram-matches interested law students PIC's November/December 1990 sent before placing the call; and (5) that with practitioners in the field for infor- Legal Services Bulletin reported that a customers be allowed to block calling mal discussions about the practice of new national group, Law Students for 976 numbers from their phones. The law. Pro Bono, has formed to encourage the establishment of mandatory pro bono intervenor compensation award requires PIC's Academic Project promotes both PacBell and GTE to pay PA work at law schools as part of legal edu- and facilitates the interaction of law cation by the year 2000. Four law $65,024; that cost is passed on to school faculty and legal services attor- ratepayers. schools-Tulane, Florida State, the Uni- neys in furtherance of law in the public versity of Pennsylvania, and Val- interest. Faculty members assist practic- paraiso-already have such programs. PUBLIC INTEREST ing attorneys with legal services cases, The student group believes it can signifi- CLEARINGHOUSE and staff attorneys help faculty with cantly increase the amount of legal help research and course materials. 200 McAllister St , available to the poor, while also expos- PIC publishes the Directory of Bay ing all law students to their professional San Francisco,CA 94102-4978 Area Public Interest Organizations, obligations. For more information on the 415) 565-4695 which lists over 600 groups and informa- group, contact Jason Adkins or Michael tion on their services PIC The Public Interest Clearinghouse and fees. also Caudell-Feagan at the National Associa- publishes Public Interest, (PIC) is a resource and coordination cen- Private Prac- tion for Public Interest Law, (202) 462- tice, which lists over 0120. ter for public interest law and statewide 250 for-profit law firms A recent survey by the legal services. PIC is partially sponsored which devote a substantial portion Public Inter- est Advocate newsletter of PIC's public by four northern California law schools: of their legal work to the public interest. PIC interest law program showed that of 160 Hastings School of Law, University of publishes the Public Interest Advocate, a newsletter of its public inter- of California's largest law firms, 51.3% Santa Clara School of Law, Golden Gate allow billable hour credit for pro bono School of Law, and University of Cali- est law program. The newsletter prints information on part-time and summer work. The unpublished survey was con- fornia at Davis School of Law. The ducted by the State Bar's Standing Com- Clearinghouse is also funded by the Cal- positions available to law students. It is published August through April for law mittee on Legal Services, and is part of ifornia Legal Services Trust Fund and a the "Just Ask" campaign to encourage subgrant from the Legal Services Corpo- students in northern California. Listings are free and must be received by the law students to ask about pro bono poli- ration. cies during job interviews. Through the Legal Services Coordi- tenth of the month. nation Project, PIC serves as a general MAJOR PROJECTS: resource center for all legal services pro- The National Clearinghouse for SIERRA CLUB grams in California and other states in Legal Services in Chicago recently Legislative Office the Pacific region. Services include joined forces with PIC to launch a major 1014 Ninth St., Suite 201 information on funding sources and effort to expand LegalAid/Net, the legal Sacramento, CA 95814 regulations, administrative materials, services forum on HandsNet developed (916) and coordination of training programs. by PIC in 1988. The two clearinghouses 444-6906 PIC's Public Interest Users Group will work together to ensure that The Sierra Club has 185,000 mem- (PUG) addresses the needs of computer LegalAid/Net is a comprehensive, well- bers in California and over 530,000 users in the public interest legal commu- coordinated communication and members nationally, and works actively nity. Members include legal services research tool for the legal services com- on environmental and natural resource programs in the western region of the munity. The National Clearinghouse will protection issues. The Club is directed United States, State Bar Trust Fund coordinate HandsNet activities of by volunteer activists. recipients, and other professionals in national support centers; post current In California, Sierra Club has thirteen various stages of computerization. PUG Supreme Court decisions, as well as arti- chapters, some with staffed offices. Sier- coordinates training events and user cles, case abstracts, and Federal Register ra Club maintains a legislative office in group meetings, and serves as a clearing- highlights before they appear in the Sacramento 'to lobby on numerous state house for information shared by public ClearinghouseReview; and edit other issues, including toxics and pesticides, interest attorneys. substantive materials on the computer air and water quality, parks, forests, land PIC's biweekly Public Interest network for style, content, timeliness, use, energy, coastal protection, water Employment Report lists positions for a and Legal Services Corporation compli- development, and wildlife. In addition to variety of national, state, and local pub- ance. lobbying the state legislature, the Club lic interest organizations, including Under the cooperation plan, PIC will monitors the activities of several state openings for attorneys, administrators, be manager for outreach and training, agencies: the Air Resources Board, paralegals, and fundraisers. There is no and responsible for training legal ser- Coastal Commission, Department of charge for listing jobs in the employ- vices users on the computer system, Health Services, Parks Department, and ment report. A job resource library at developing materials, and recommend- Resources Agency. The Sacramento

The California Regulatory Law Reporter Vol. 11, No. 1 (Winter 1991) 4 PUBLIC INTEREST ORGANIZATION ACTION

office publishes a newsletter, Legislative without a permit, or in stopping those Toward Utility Rate Normalization Agenda, approximately fifteen times per who violate their permit conditions." (TURN) is a nonprofit advocacy group year. The Sierra Club Committee on Gains were made in solid waste and with approximately 50,000 members Political Education (SCCOPE) is the recycling, but no legislation was throughout California. About one-third Club's political action committee, which approved to limit massive pesticide of its membership resides in southern endorses candidates and organizes vol- spraying. Although some small victories California. TURN represents its mem- unteer support in election campaigns. were achieved in wetlands and wildlife bers, comprised of residential and small The Sierra Club maintains national protection, there were no gains in the business consumers, in electrical, natural headquarters in San Francisco, and oper- areas of land use and urban growth, gas, and telephone utility rate proceed- ates a legislative office in Washington, according to the Sierra Club's legislative ings before the Public Utilities Commis- D.C., and regional offices in several office. sion (PUC), the courts, and federal regu- cities including Oakland and Los Ange- On the national front, the latory and administrative agencies. The les. January/February 1991 edition of Sierra group's staff also provides technical MAJOR PROJECTS: magazine said that while millions of advice to individual legislators and leg- In December, Governor-elect Wilson acres of Alaska lands are safe from islative committees, occasionally taking exploitation, millions more remain in positions on legislation. TURN has appointed conservationist Douglas jeopardy, and some are in imminent per- Wheeler as Secretary of the state intervened in about 200 proceedings il. According to the magazine, environ- since its founding in 1973. Resources Agency. Wheeler served as mentalists face a significant challenge as executive director of the Sierra Club the new 102nd Congress commences, MAJOR PROJECTS: between 1985-87. He has been vice pres- and as the Bush administration launches In November, TURN warned Califor- ident of the World Wildlife Fund and the an aggressive campaign to open the nia ratepayers that the state's three Conservation Foundation in Washing- northern coastal plain of Alaska and the largest energy utilities were seeking an ton, D.C. Environmentalists said Wheel- 18-million-acre Alaska National unprecedented $1.6 billion in combined er's selection indicates that Wilson Wildlife Refuge to oil development. Oil rate increases to take effect January 1, intends to work closely with the conser- development boosters are using the Mid- 1991. According to TURN, the compa- vation movement. The Resources Agen- dle East crisis as a new excuse for invad- nies used a strategy of seeking numerous cy secretary oversees management of ing the Refuge. small rate increases to obscure the full fish and wildlife resources, state parks, Several years ago, the U.S. Depart- impact of the proposed increases. Spe- forests, air and water quality, and the ment of the Interior studied approxi- cific increases challenged by TURN coastline. mately 77 million acres for possible included Pacific Gas and Electric Com- Inthe December 19 issue of its Leg- wilderness protection under the Arctic pany's (PG&E) attempt to recover $15 islative Agenda newsletter, the Sierra National Interest Lands Conservation million in earthquake-related expenses Club berated the record of former Gov- Act of 1980. The Act itself designated which were covered by insurance poli- ernor George Deukmejian, stating that 56 million acres of new wilderness, and cies. TURN also challenged PG&E's his appointments to state agencies such directed Interior to complete a study by subsidies to agricultural customers ($154 as the Department of Food and Agricul- 1985 of all other lands within parks and million), which allow their prices to be ture, the Board of Forestry, and the Fish refuges as potential wilderness areas. set 29.1% below actual cost, while resi- and Game Commission have led to inex- Almost all of the 77 million acres quali- dential customers are expected to make cusable failures to act on such issues as fies for wilderness protection, Sierra up some of the difference. In southern pesticide use, toxic contamination of Club asserts. But even Interior's final California, TURN challenged San Diego coastal waters, clearcutting of ancient recommendation for wilderness designa- Gas and Electric Company's (SDG&E) forests, and endangered species protec- tion of only eight million additional attempt to force consumers to pay $3.8 tion. acres in 1987 was rejected by Reagan million per year for the next two years According to the Club, Deukmejian's appointees hostile to environmental con- for the utility's investment in the devel- repeated veto of environmental legisla- cerns. opment of natural gas vehicles. tion during the 1990 legislative session Sierra said the goal in 1991 is to pass However, and much to the chagrin of caused air quality to suffer. He rejected H.R. 39 and S.39. Both would designate TURN and other advocacy organiza- legislation to clean up the air in the as protected wilderness all of the imper- tions, the PUC gave the utilities an early Central Valley, improve automobile effi- iled 1.5 million acres of Arctic National holiday gift in December by granting a ciency, and tackle air toxics problems. Wildlife Refuge coastal plain lands. combined $1.2 billion annual increase, Another bill he vetoed would have cre- Sierra Club urges a groundswell of effective January 1. On December 19, atively expanded possible penalties grassroots support-letters, cards, phone the PUC permitted PG&E to raise its against deceptive and illegal behavior by calls, and mailgrams to Congress-in rates by $749 million (a 12% increase). corporations. Deukmejian also vetoed the campaign to save the Refuge. The Southern California Edison was allowed legislation to promote recycling used oil. Club asks members and citizens to lobby to raise its rates by $463.9 million (for a (See CRLR Vol. 10, No. 4 (Fall 1990) p. for votes against oil drilling and for a 9.3% increase in residential rates), and 35 for background information on these new national energy policy focused on bills.) According to Legislative Agenda, SDG&E was granted a $66.1 million conservation and improved auto fuel rate hike (a 4% increase). "He vetoed bills that would have given efficiency. the Coastal Commission the authority On November 21, the PUC issued its and funding it needs to properly enforce long-awaited ruling ordering Pacific Bell against violations of the Coastal Act. TURN (TOWARD UTILITY and GTE-California to eliminate touch- tone service charges for residential and Because of Deukmejian's eight years of RATE NORMALIZATION) business customers beginning February Commission budget slashing, it is basi- 625 Polk St., Suite 403 cally defenseless in preventing develop- 1, 1991, and to expand the local calling San Francisco, CA 94102 ers from tearing up coastal resources area from eight to twelve miles by June (415) 929-8876 1, 1991. However, TURN blasted the

The California Regulatory Law Reporter Vol. 11, No. I (Winter 1991) PUBLIC INTEREST ORGANIZATION ACTION

order, alleging that it also authorizes rev- many consumers find dialing the access (GT&E). TURN said AT&T's exorbitant enue adjustments that will actually code a major inconvenience. rate of return suggests that increased increase monthly telephone bills as a TURN believes that the PUC's pro- flexibility will lead to excess profits for result of the changes. In its winter posal in this area-a requirement that PacBell and GT&E as well. The exces- newsletter, TURN claimed that, in Pac- local phone companies simply advertise sive profits were first discovered by the Bell's case, the adjustment will wipe out IOXXX calling codes in their white PUC's Division of Ratepayer Advocates, a $700 million credit that was supposed pages directories-is inadequate. Given which filed for an immediate rate reduc- to be returned to PacBell customers dur- the extent of customer confusion, TURN tion of $120 million. The reduction was ing 1991. "In effect, the Commission is has urged the PUC to require more supported by TURN. letting PacBell steal back money that extensive consumer education efforts to rightfully belongs to customers, while ensure that customers do not suffer fur- claiming the decision results in free ther confusion if intraLATA competition UCAN (UTILITY CONSUMERS' touch-tone service," argued TURN is introduced. TURN has recommended ACTION NETWORK) Executive Director Audrie Krause. In further education programs, including 4901 Morena Blvd., Suite 128 GTE's case, TURN asserts that the order call rate comparison information in the San Diego, CA 92117 phone book; twice-per-year bill inserts; will increase the present surcharge by (619) 270-7880 11%. The PUC's recent order is the re- detailed bilingual materials; curriculum sult of a larger October 1989 directive materials for public schools and for Utility Consumers' Action Network which gradually relaxes the regula- senior citizens; electronic media public (UCAN) is a nonprofit advocacy group tion of telecommunications in Califor- service announcements; expanded tele- supported by 52,000 San Diego Gas and nia-which directive is also being chal- phone company public relations; and Electric Company (SDG&E) residential lenged by TURN in the California marketing studies to assess consumer and small business ratepayers. UCAN Supreme Court. (See CRLR Vol. 10, No. understanding of the new industry struc- focuses upon intervention before the 4 (Fall 1990) pp. 35-36; Vol. 10, No. I ture and service options. California Public Utilities Commission (Winter 1990) p. 151; and Vol. 9, No. 4 The November 1990 issue of (PUC) on issues which directly impact (Fall 1989) p. 27 for extensive back- TURN's Inside Line newsletter reported San Diego ratepayers. UCAN also ground information.) on the lack of uniformity in directory assists individual ratepayers with com- TURN continues its participation in assistance charges by local and long plaints against SDG&E and offers its the PUC's Alternative Regulatory distance companies. Directory assistance informational resources to San Diegans. Framework (ARF) proceeding, which calls to local phone companies cost 25 UCAN was founded in 1983 after has now proceeded to Phase III. (See cents each, with five free calls per receiving permission from the PUC to CRLR Vol. 10, No. 1 (Winter 1990) p. month. AT&T charges 40 cents per call place inserts in SDG&E billing packets. 35 for background information.) The and offers no free calls; while MCI and These inserts permitted UCAN to attract major issue being considered in Phase Sprint charge 50 cents and 39 cents a large membership within one year. The III is whether long distance companies respectively, with two free calls per insert privilege has been suspended as a like MCI and AT&T should be allowed month. AT&T has applied to the PUC to result of a United States Supreme Court to compete with PacBell and GTE in increase its directory assistance calls to decision limiting the content of such 50 cents each. TURN has asked the PUC carrying local calls, known as intraLA- inserts. to expand the scope of the proceeding to TA service. UCAN began its advocacy in 1984. allow suggestions that will help dispel TURN believes consumers may end Since then, it has intervened in some of the confusion consumers up paying more for local telephone ser- suffer SDG&E's 1985 and 1988 General Rate in trying to understand telephone issues vice if the PUC lifts the Cases; 1984, 1985, 1986, and 1989 current restric- and charges. TURN has proposed that all Energy Cost Adjustment Clause pro- tions and allows the long distance com- long distance carriers charge the same ceedings; the San Onofre cost overrun panies to compete in the intraLATA price for directory assistance and allow hearings; and SDG&E's holding compa- market, as has been proposed by PUC customers two free calls per month. The ny application. In 1989, UCAN partici- Administrative Law Judge Charlotte group asked the PUC to establish a stan- pated in two rate adjustment proceedings Ford-TerKeurst (see CRLR Vol. 10, No. dardized directory assistance charge at in which SDG&E was granted increases 4 (Fall 1990) pp. 179-80 for details). If 40 cents for long distance companies and for energy costs, rate of return, and infla- intraLATA service becomes competitive, disallow AT&T's requested increase. tion. Since the fall of 1988, UCAN has local phone companies like PacBell and TURN's fall 1990 newsletter reported been challenging the proposed takeover GT&E could lose a significant amount that it, in conjunction with the PUC staff, of SDG&E by Southern California Edi- of revenue. In that event, they would has successfully convinced the PUC to undoubtedly petition the PUC to order AT&T to release information son Company (SCE). increase rates in order to recover their which reveals that the long distance MAJOR PROJECTS: losses. company's rate of return was 39% for On November 27, UCAN's two-year- Another issue being debated in the the first quarter of 1990-triple what the long effort to defeat the proposed ARF proceedings is the need for exten- PUC had authorized. TURN's Audrie takeover of SDG&E by SCE picked up sive consumer education if intraLATA Krause called AT&T profits "obscene" steam, when an administrative law judge competition is instituted. Consumers and noted, "These outrageous profits of the Federal Energy Regulatory Com- who choose a competitor of the local prove that the PUC has ignored its man- mission (FERC) recommended that phone company would have to dial a date to set fair and reasonable rates for FERC prohibit the merger. ALJ George five-digit access code in addition to the long distance services." In 1988, the Lewnes found that the merger would fail phone number they are calling. Yet, PUC granted AT&T increased flexibility to yield public benefits, would be many residential customers are unaware in setting its own rates. Last year, the anticompetitive, and would increase of the access codes for companies, PUC authorized similar changes for southern California's already-severe air known as 1OXXX-calling. In addition, Pacific Bell and General Telephone pollution problems. According to Judge

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Lewnes, "The sole conceivable benefi- not had a San Diego member in thirty During the fall, UCAN published a ciaries in the long term will be [SCE's years. special telephone edition of its Watch- parent company] and its shareholders." On October 1, SDG&E filed a pro- dog newsletter. The issue included infor- The ALJ's recommendation is subject to posed $101 million electricity rate mation on inside wiring, long distance a fifty-day public comment period, after increase request (an average 7% rates, and privacy issues related to Pac- which the five-member FERC will increase) with the PUC. UCAN Execu- Bell's proposed "Caller ID" service. For decide whether to accept or reject it. tive Director Michael Shames called the a copy of the newsletter, send a stamped, Both FERC and the PUC must approve request "a clumsy effort to close the gap self-addressed envelope to UCAN at the the proposed takeover. between Edison and SDG&E rates." address listed above. At this writing UCAN is awaiting a Shames maintained the company was Watchdog reported that virtually recommended decision from PUC ALJ trying to manipulate rates to offset the every consumer group in the nation is Lynn Carew, who presided over the oft-promised 10% reduction in SDG&E opposed to Caller ID as an invasion of lengthy evidentiary presentation of SCE, rates by Edison if the merger is individual privacy and an unnecessary SDG&E, and all intervenors (including approved. He believes the only justified additional cost. If Caller ID is approved UCAN) during 1990. (See CRLR Vol. portion of the proposed increase is about by the PUC, the caller's phone number 10, No. 4 (Fall 1990) p. 178; Vol. 10, $21 million for an aggressive new ener- can be automatically revealed to call Nos. 2 & 3 (Spring/Summer 1990) pp. gy conservation program ordered by the recipients if they purchase a special 207-08; and Vol. 10, No. 1 (Winter PUC. Shames claims that other aspects attachment for the phone. A new law 1990) pp. 151-52 for background infor- pertaining to SDG&E's fuel costs, rate passed by the legislature last year mation.) The ALJ's recommendation of return, and inflation are not justified. requires phone companies to allow con- was expected in November, but was UCAN's advocacy was partly success- sumers to block Caller ID. However, delayed when she ordered additional ful; on December 19, the PUC awarded UCAN asserts the law is weak, because evidence and briefing on the effect of the SDG&E a $66.1 million (or 4%) rate it requires per-call blocking as opposed takeover on $550 million in tax-exempt increase, effective January 1. On the to per-line blocking. To execute the bonds issued by the City of San Diego same day, Edison was permitted to raise blocking feature, customers will have to for SDG&E projects. The tax-exempt its residential rates by 9.3%. dial a three-digit blocking code each bonds are for use only by utilities operat- Last fall, SDG&E announced a pro- time a call is placed. If the caller forgets ing in one or two counties. The tax- posal to develop a fleet of natural gas- to initiate blocking, any business called exempt status of the bonds could be powered cars. UCAN applauded the can capture the phone number and then withdrawn if SCE is successful in taking effort to help kick the gasoline habit, but obtain the caller's name, address, credit over SDG&E. objected to the fact that the program's card record, and other personal informa- A recommendation by ALJ Carew is annual tab for ratepayers would be over tion. expected in mid- to late-January. By law, $4 million. In addition, SDG&E would The PUC will hold hearings on Caller the five-member Commission must wait be the only local supplier of the fuel for ID this spring. UCAN believes that thirty days before acting on the ALJ's natural gas vehicles. The PUC will Caller ID is the same as "trap and trace," which was previously illegal without a recommendation. The PUC had hoped to decide on the proposal in 1991. In October, UCAN and the Center for court order. If the service is approved, make a final decision in the merger case Public Shames predicts that "consumers can by December 31, before the terms of for- Interest Law (CPIL) announced the availability of a series of brochures expect an inevitable upsurge in annoying mer Commissioners Stanley Hulett and on telephone repair and inside phone and mail solicitations." UCAN Frederick Duda expired. There was wiring issues, as a part of their joint Inside will monitor this issue and participate in speculation that former Governor Deuk- Wiring Consumer Education Project the public hearings. mejian might reappoint them so they funded by the PUC's Telecommunica- could vote on the merger. However, that tions Education Trust. In 1987, the PUC did not transpire, partly due to opposi- deregulated the "inside wiring" portion tion from legislative leaders Senator of telephone service, making the cus- Herschel Rosenthal and Assemblymem- tomer responsible for telephone wiring ber Gwen Moore. It is now up to Gover- repairs inside residences. UCAN and nor Pete Wilson to appoint their replace- CPIL commissioned a survey of 625 San ments. At this writing, no appointments Diegans and found that more than 50% have been made. Wilson has never taken of consumers still do not know they are a position on the merger issue. UCAN responsible for repair of inside wiring. considers newly-elected PUC president, Nearly 60% of those surveyed would Patricia Eckert, to be a question mark on automatically call Pacific Bell, which the merger. Eckert has the power to generally charges more than other inside determine whether the three existing wire repair companies. Senior citizens, commissioners will decide the case, or minority families, renters, and low- whether the decision will be delayed income households are the most likely to until Wilson appoints replacements and pay the highest-priced repair charges. they have had time to study the case. At an October 29 press conference, UCAN asserts that the PUC has an the groups reported that consumers are obligation to Californians to allow the paying too much for inside wiring repair full five members to vote on the contro- because they are unaware of lower-cost versial merger. UCAN and San Diego options. To learn about those options, Mayor Maureen O'Connor asked Gover- San Diegans can now receive the pro- nor Wilson to fill one of the vacancies ject's informative brochures in eight lan- with a San Diego resident. The PUC has guages by calling (619) 221-7918.

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