Public Interest Organizations Voted Against the Congressional Salary Commissions, and Group Policies

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.

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