zens by laws; and guarantee citizens of In July, Voter Revolt dispatched can- INTRODUCTION California access to a fair and efficient vassers to begin gathering signatures on system of justice. a new voter initiative that would amend Each regulatory agency of In 1988, AJF and its campaign com- the Insurance Code and the Code of Civ- California government hears mittee-the Voter Revolt to Cut Insur- il Procedure to establish a state-operated from those trades or industries it ance Rates-sponsored and qualified nonprofit auto insurance company in respectively affects. Usually Proposition 103, the only one of four California. (See CRLR Vol. 10, No. I organized through various trade competing insurance reform initiatives (Winter 1990) p. 20 for background associations, professional lobby- approved by the electorate in the information.) Voter Revolt said it is ists regularly formulate positions, November 1988 election. launching the new "Proposition 103 draft legislation and proposed AJF publishes a bimonthly report, Enforcement Act" signature drive to rules, and provide information as Citizens Alliance, on citizens' rights protest the delays in implementation of part of an ongoing agency rela- issues and actions at the local, state, and Proposition 103, which have been tionship. These groups usually federal levels. Legislative, judicial, and caused by the insurance industry's unre- focus on the particular agency administrative activities which impact lenting legal challenges to every clause overseeing a major aspect of their on the public justice system and the of the initiative and every regulation business. The current activities of exercise of citizens' rights are a major issued by the Department of Insurance. these groups are reviewed as a focus of the organization's research and This is the second attempt to qualify part of the summary discussion of educational activities. AJF is funded by such a measure for the ballot, the first each agency, infra. grants and individual memberships. having failed earlier this year. If the There are, in addition, a num- group obtains 372,000 valid voter signa- ber of organizations which do not MAJOR PROJECTS: tures, the initiative will appear on the represent a profit-stake interest in Along with many other consumer June 1992 ballot. Under the measure, the regulatory policies. These organi- groups and public interest organizations, state-run auto insurance system would zations advocate more diffuse AJF and Voter Revolt have almost given be formed by September 1, 1993, but interests-the taxpayer, small up hope that Proposition 103 will ever be only if the private insurance industry business owner, consumer, envi- implemented by present Insurance Com- refuses to reduce its rates in accord with ronment, future. The growth of missioner Roxani Gillespie and Gover- Proposition 103's rollback standards, regulatory government has led nor Deukmejian. Disgusted with almost adjusted for inflation, and only if more some of these latter groups to two years of delays, stalling, refusals to than 15% of motorists remain uninsured. become advocates before the reg- act, and noncompliance with the initia- Voter Revolt believes that the "Cali- ulatory agencies of California, tive, most consumer groups have aban- fornia Non-Profit Insurance Fund"-the often before more than one agen- doned their participation in ongoing public insurance system to be created by cy and usually on a sporadic Proposition 103 hearings before the the initiative-would reduce insurance basis. Department of Insurance, and will await costs to consumers because there would Public interest organizations the election of the new commissioner in be no high executive salaries to pay, and vary in ideology from the Pacific November to renew their efforts to com- surpluses and reserves would be unnec- Legal Foundation to Campaign pel enforcement of the 1988 initiative. essary. The Fund would be accountable California. What follows are In an August 6 letter to Insurance to the public through a board of public brief descriptions of the current Commissioner Gillespie, Voter Revolt members appointed by the Insurance projects of these separate and demanded that Gillespie call off sched- Commissioner and subject to recall by diverse groups. The staff of the uled hearings which would grant rate policyholders. Voter Revolt hopes to col- Center for Public Interest Law increases to some of the state's largest lect a total of one million signatures with has surveyed approximately 200 its grassroots network in eleven field such groups in California, direct- insurers-at least until Gillespie has ordered the companies to first roll back offices around the state and hundreds of ly contacting most of them. The citizens who have volunteered since the following brief descriptions are their rates as required by Proposition 103. Speaking at a Los Angeles news idea was first announced. only intended to summarize their Another initiative being considered conference, Voter Revolt Chair Harvey activities and plans with respect by Voter Revolt Rosenfield said, "Once again, it looks is the "Fair Share Prop- to the various regulatory agencies erty Tax Initiative." The measure is in California. like Roxani Gillespie is trying to under- designed to solve California's housing mine Proposition 103 and allow insur- crisis and reverse the rapid decline of ance companies to raise rates, even local government services. The initiative though she still has not implemented any would split the property tax "roll" portion of Proposition 103, passed by between property used for domicile and ACCESS TO JUSTICE voters over twenty months ago." Voter property used for profit. No changes FOUNDATION Revolt also complained that insurers would be made to the tax on residential 3325 Wilshire Blvd., Suite 550 have failed to comply with Proposition property; however, the tax rate on non- Los Angeles, CA 90010 103's requirement to supply information residential property would be increased (213) 383-9618 to consumer groups so they can chal- from 1% to 2.2%. This change would lenge insurer expenses, pricing, sales result in new revenues totalling $9.5 bil- Access to Justice Foundation (AJF) is practices, and other matters which would lion yearly. Of that revenue, $4.6 billion a nonprofit, nonpartisan citizen advoca- justify denial of a rate increase applica- would be used to give California fami- cy organization established to inform the tion. A judge hired by Gillespie to over- lies a $500 annual tax break; $2 billion public about the operation of the legal see the hearings recently refused to order per year would be spent on three new system; provide independent, objective the insurers to open their books and sup- housing programs that would benefit research on the protection accorded citi- ply the requested data. first-time buyers, low- and moderate-

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income tenants, and the homeless; and ADVOCATES for related information.) Committee) brought a federal lawsuit $1.9 billion per year would be made The six basic principles of the plan are: challenging the Plan as being unenforce- available to local governments. (See (1) universal coverage, regardless of able and based largely on unproven tech- CRLR Vol. 10, No. I (Winter 1990) pp. age, sex, health status, or ability to pay; nology. The court agreed, and ordered 20-21 and Vol. 9, No. 3 (Summer 1989) (2) comprehensive benefits including EPA to impose its own plan on the basin, p. 10 for background information.) all health and related social services to which includes the counties of Los Voter Revolt is also considering join- prevent, diagnose, and treat disease and Angeles, Riverside, Orange, and San ing with children's advocacy groups to disability, including long-term care Bernardino. coordinate support for a proposed initia- health services for chronic illness; In its July 31 announcement, EPA Children's Act" for (3) progressive financing based on stated that the SCAQMD Plan is tive known as "The "extraordinarily the 1992 ballot. The measure was draft- ability to pay; ambitious and coura- ed by Robert Fellmeth, Director of the (4) economic efficiency to assure geous," but agreed that some of the mea- Center for Public Interest Law and the maximum results for funds invested, and sures adopted do not contain legally Children's Advocacy Institute. Voter control over inflation in health costs; enforceable commitments or are not Revolt asserts that 1.5 million children (5) publicly guided allocation of technologically feasible. EPA also noted (about 21%) in California live in pover- health resources, assuring access for all that it would not have imposed its own ty, while more millionaires per capita Californians to facilities and services; plan on the Los Angeles basin had not live here than in any state or nation and the environmental groups' lawsuit suc- around the globe. The Children's Act (6) accountability to consumers, ceeded. would add a surcharge to the income tax including full disclosure of the costs and EPA's plan derives heavily from the of the wealthiest Californians and allo- quality of care provided under the sys- SCAQMD Plan, but also includes some to benefit chil- tem. new approaches. These include possible cate the funds generated "no-drive" days for commuters dren in poverty. The Act creates a 2.5% after additive to gasoline surcharge on joint income above 1996; an alcohol $400,000, and a 3% surcharge on joint during winter months to reduce carbon AMERICAN LUNG emissions; stricter rules for income above $800,000. The surcharges monoxide would only affect income in excess of ASSOCIATION OF CALIFORNIA federal vehicle fleets: and new controls on hydrocarbon emissions from oil these amounts rather than all income P.O. Box 7000-866 the taxpayer is taxed. The Redondo Beach, CA 90277 tankers. upon which conceding that the federal surcharges would raise almost $2 billion While (213) 378-3950 implementation plan is a step forward, per year for children's programs. of the Coalition for Clean Air expressed The initiative would create the Young The American Lung Association emphasizes the pre- disappointment that the EPA plan Children's Rightstart Fund. A state Chil- California (ALAC) vention and control of lung disease and extends the federal deadline for compli- dren's Commission would be established ance with ozone and carbon monoxide to oversee expenditures from the fund, to the associated effects of air pollution. bill is of standards. Other environmentalists criti- coordinate and audit all health and wel- Any respiratory care legislative major concern. Similarly, the Associa- cized EPA for its failure to impose clean fare programs of state government that tion is concerned with the actions of the air regulations for offshore oil rigs in to provide struc- benefit children, and Air Resources Board and therefore mon- federal waters and for pollution from air- tural change in state government to more itors and testifies before that Board. The craft, trains, ships, and military bases. effectively allocate state resources for Association has extended the scope of its In June, ALAC president Steve Har- the benefit of children in poverty. The concerns to encompass a wider range of mon announced that "Proposition 99 is Rightstart funds would be used to meet issues pertaining to public health and doing exactly what the tobacco industry three overall goals: (1) to provide for the environmental toxics generally. feared most," in reference to figures health and nutritional needs of children which indicate that cigarette sales have in poverty throughout the state; (2) to MAJOR PROJECTS: dropped 14% since California voters promote a secure family setting for chil- On July 31, the U.S. Environmental approved the tobacco tax hike in dren and protect them from abuse, Protection Agency (EPA) declared that November 1988. State tobacco tax rev- neglect, and injury; and (3) to deliver state and regional plans for clean air in enues have increased 201% since the ini- adequate child care and encourage prop- the Los Angeles air basin are legally tiative passed. Harmon said the measure er child development. inadequate, and announced the imposi- "is leading to a significant reduction in Through letters and contacts in its tion of its own plan to clean up air pollu- smoking." door-to-door canvass operation, Voter tion in southern California. In August In 1988, the tobacco industry spent Revolt has found that citizens are urging 1989, the South Coast Air Quality Man- $3.25 billion ($7 million per day) to pro- the group to become involved in the agement District (SCAQMD) adopted mote and advertise tobacco use-up escalating problem of unaffordable and the state Air Resources Board from the $2.58 billion spent in 1987. The health care. Voters may be ready for the (ARB) approved SCAQMD's 1989 Air state Department of Health Services dramatic changes needed to overhaul the Quality Management Plan, which identi- (DHS) is targeting young people in a $28 current system. A grassroots base around fied measures needed for the attainment million advertising campaign in Califor- the health insurance issue is being built of national ambient air quality standards nia, financed by funds raised from the among a coalition of organizations for by the year 2007. (See CRLR Vol. 9, No. Proposition 99 tobacco tax increase. fundamental health care reform with an 4 (Fall 1989) p. 107 for background (See CRLR Vol. 10, Nos. 2 & 3 eye toward a possible 1992 ballot initia- information.) SCAQMD's Plan called (Spring/Summer 1990) p. 25 for back- tive. Voter Revolt endorses a model plan for tough new controls on a wide range ground information.) Sixty percent of developed by Health Access, a coalition of polluters. However, the Sierra Club tobacco smokers are addicted by the of health organizations and policy and the Coalition for Clean Air (ALAC time they are fourteen years old; 90% experts. (See infra report on PUBLIC is a member of the Coalition's Program become addicted by age twenty. About

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3,000 teenagers in the U.S. become reg- (See CRLR Vol. 10, Nos. 2 & 3 and the timber industry. The secretaries ular smokers each day. According to the (Spring/Summer 1990) pp. 27-28 and 37 also said they would seek legislation to U.S. Surgeon General, five million of for background information.) Audubon exempt the federal timber sale program today's children will die of smoking- said legislators cut deals that were politi- from compliance with the Endangered related illnesses in their later years if the cally expedient, and left many important Species Act whenever protecting the owl current rate of tobacco use continues. sections of the proposed new clean air would conflict with timber sales. DHS' anti-smoking campaign is also bill by the wayside. "Much credit goes to The decision was a partial victory for aimed at women and ethnic groups such the Bush administration for stirring the timber interests and a blow to conserva- as African-Americans, Latinos, and pot and putting pressure on the Demo- tionists. Environmentalists argued that Native Americans. African-Americans crat-controlled House and Senate to act. the task force plan would only protect are 20% more likely to die of smoking- At the same time, however, the White old-growth spotted owl habitat in con- related diseases than are Caucasians, and House insisted that it would not support servation areas, not in "dispersal areas," lung cancer is the top cause of cancer legislation that would cost industry too sections of forest which connect the con- deaths among women, according to the much," Audubon Activist reported. servation areas. This action means the U.S. Department of Health and Human On June 22, the U.S. Fish and owls would be protected in "islands" of Services. Wildlife Service-after more than a forest-that is, specific owl populations Public interest groups and the Federal decade of study and delay-declared the would be isolated and would not inter- Elections Commission report that the northern spotted owl a "threatened" breed adequately to keep their numbers tobacco industry contributed more that species. (See CRLR Vol. 10, Nos. 2 & 3 and gene pool viable. The administration $1 million to political candidates in (Spring/Summer 1990) p. 26; Vol. 9, No. asked Congress to approve its recom- 1988. The R.J. Reynolds and Philip 3 (Summer 1989) p. 11; and Vol. 9, No. mendations to allow for the proposed Morris companies together command 2 (Spring 1989) pp. 21-22 for back- timber harvest, including the convening about 70% of the U.S. cigarette market ground information.) But the Bush of a committee known as the "God (Philip Morris owns the Miller Brewing administration immediately sought to squad" which has the power to override Company and Kraft and General Foods). undermine the protection the listing the Endangered Species Act in certain A tobacco industry group, the Tobacco would provide, according to the Septem- cases of "economic and/or social stress." Institute, paid m re honoraria to con- ber edition of Audubon Activist. Among At current logging rates, the last gressmembers ii. 1988 than any other other things, the White House is threat- stands of centuries-old Douglas fir and special interest group. The honoraria to ening to weaken the very legislation that spruce will be gone in ten years, accord- 85 House members and eight senators protects the owl and other endangered ing to NAS. Environmentalists are trying totalled $123,000. species-the federal Endangered Spec- to persuade legislators and the timber it must begin now to adjust ies Act. industry that Shortly after the listing decision, to the fact that it must change its prac- Interior Secretary Manual Lujan and tices and move towards cutting and milling smaller, second-growth trees. By NATIONAL AUDUBON SOCIETY Agriculture Secretary Clayton Yeutter that pre- 555 Audubon Place announced a five-point plan to "balance" avoiding a solution now-one a national treasure for future gen- Sacramento, CA 95825 the needs of the spotted owl with that of serves erations and helps timber-dependent (916) 481-5332 the Northwest timber industry. The communities through a transition peri- administration's plan ignores recommen- od-the administration is guaranteeing The National Audubon Society by the Interagency Scien- dations made that all U.S. citizens will lose, the (NAS) has two priorities: the conserva- tific Committee-a panel of some of the tion of wildlife, including endangered Audubon Activist article emphasized. most distinguished biologists in the fed- NAS and other environmental groups species, and the conservation and wise eral service, headed by government biol- use of water. The society works to estab- strongly support H.R. 4492, the ogist Jack Ward Thomas. That group's "Ancient Forest Protection Act of 1990" lish and protect wildlife refuges, wilder- plan would have protected a significant ness areas, and wild and scenic rivers. (Jontz, D-Indiana). Conservationists portion of spotted owl habitat. Instead, assert that temperate forests in the Unit- To achieve these goals, the society sup- the administration announced it would ports measures for the abatement and ed States are being cut down at a rate convene a new task force to suggest new the Amazon prevention of all forms of environmental faster than the logging of management ideas by September 1. The timber industry is cutting pollution. rain forest. The task force-co-chaired by Lujan and twice as many trees as are being replant- MAJOR PROJECTS: Yeutter-did not release its report until ed. Once totalling thirty million acres in At this writing, a congressional con- September 21. While environmentalists the Pacific Northwest, only about two ference committee is still considering want the national logging rate reduced million acres of the old-growth forests long-awaited amendments to the federal by 50% on U.S. Forest Service lands remain. H.R. 4492 would declare the Clean Air Act. The May/June edition of (from four billion board-feet to 2.6 bil- ancient forests a national and global trea- Audubon Activist reported that the White lion board-feet annually) and by at least sure and establish a National Ancient House had engaged in much mischief to one-third in the Pacific Northwest to Forest Reserve System to protect all weaken both the Senate and House ver- save the northern spotted owl from remaining ancient forests on federal sions of the amendments. A final Senate extinction (based on the recommenda- lands in Washington, Oregon, and Cali- version (S. 1630) passed April 3 is a dis- tions of the Thomas committee), the fornia. The bill would create a network appointment to environmentalists. A White House task force report released of protected areas to connect the severe- somewhat stronger version (H.R. 3030) on September 21 concluded that logging ly fragmented old forests so that rare and was passed by the House, and clean air should decline by less than 20%. Secre- endangered species of wildlife can advocates are busy lobbying the confer- taries Lujan and Yeutter insisted that migrate and reproduce, and to ensure the ence committee to approve the strongest their recommendation "balances" the integrity and biodiversity of the ancient possible sections of the two versions. competing interests of the spotted owl forest system. Representative Jontz's bill

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would forbid all logging and construc- for housing and industrial development. grant community to enforce their legal tion of new roads inside the reserve, More than half the country's original rights; except where necessary to suppress fires wetlands are gone. The Audubon Soci- -improving access to federal black and protect human life. ety's wetlands campaign focuses on lung assistance benefits for coal miners Audubon urges citizens to call and motivating and training volunteers to in rural Kentucky; write Congress to defeat Senator Mark identify local wetlands, determine the -human rights and political freedom Hatfield's (R-Oregon) S. 2762 and Rep- value of the sites, and work to protect in South Africa; resentative Les AuCoin's (D-Oregon) them before a threat arises. -Community Development Legal H.R. 5094, bills which would allow con- Assistance Corporation-low-income tinued large-scale cutting of timber on housing; public land. The bills would also restrict -providing HIV-positive immigrants the ability of citizens to stop logging BERKELEY LAW FOUNDATION with quality legal representation; while appeals of forest plans are pend- Boalt Hall School of Law, Rm. 1E -reform of teen-parent punishment ing. University of California laws; In June, the Senate unanimously -production of brochures on HIV for Berkeley, CA 94720 approved a bill to reform timber prac- those speaking Spanish, Vietnamese, tices in Alaska's Tongass National For- (415) 642-1738 Tagalog, Chinese, Japanese, and Korean; -preventing domestic violence misde- est. Last session, the House passed a sig- The Berkeley Law Foundation (BLF) nificantly stronger version. At this meanors-ending violence before vio- is an income-sharing organization of writing, a House-Senate conference lence ends birth; committee is working out differences on Boalt law students and faculty which -fulfilling the promise of equal access provides funding to public interest law the legislation. Since the 1950s, to education for migrant children in projects. BLF is an "attempt to institu- Congress has allowed noncompetitive Texas; logging in the Tongass, and since 1980 tionalize financial, moral and directional -San Francisco prisoner legal access has approved an annual $40 million in support for public interest work within videotape production; subsidies to two timber companies. (See the legal profession, thereby avoiding -a solution to unemployment among foundations CRLR Vol. 10, Nos. 2 & 3 (Spring/Sum- dependence on outside or the homeless; mer 1990) p. 26; Vol. 9, No. I (Winter governmental largesse." -protection of the elderly from losing 1989) p. 13; and Vol. 8, No. 2 (Spring BLF is a nonprofit corporation gov- their homes-remedies against home 1988) p. 14 for background informa- erned by a seventeen-member Board of equity scams; tion.) The Senate bill would repeal the Directors elected directly by the mem- -reaching out to the Asian-American automatic subsidy, require more compet- bership. The Board includes attorneys in community regarding government bene- itive pricing of timber, and shift logging both public and private practice, com- fits and tenants rights; away from environmentally sensitive munity representatives and law school -the struggle to protect voting rights areas. The House version would com- faculty members, as well as members of in Alabama; pletely repeal a timber-supply directive the Foundation. -Oakland elders in crisis-protecting to produce 450 million board-feet of Foundation grants are designed to the elderly victimized by the crack timber annually, institute competitive provide subsistence support and start-up cocaine epidemic; logging contracts, and set aside 1.8 mil- funding for recently-trained attorneys -video project to explain legal options lion acres of wildlife habitat as protected committed to public interest work. BLF to battered women; and wilderness. also provides a summer grants program -a defense against the Department of The oil industry and the White House to help law students undertake summer Housing and Urban Development's war are still exerting pressure to open Alas- projects under the auspices of a sponsor- on drugs-securing fundamental hous- ka's Arctic National Wildlife Refuge to ing public interest organization. ing rights. oil exploration and production. (See BLF is preparing to accept grant pro- CRLR Vol. 10 (Winter 1990) p. 21; Vol. MAJOR PROJECTS: posal applications for project funding in 9, No. I (Winter 1989) p. 13; and Vol. 8, This year, BLF's Student Organiza- 1991. BLF seeks to fund projects which No. 3 (Summer 1988) p. 19 for back- tion awarded nineteen law students sum- include legal advocacy, community edu- ground information.) The Refuge is a mer grants to work on public interest cation, and policy change in areas affect- recognized world ecological treasure projects under the auspices of sponsor- ing people who are traditionally denied and is home to 160 animal species. ing organizations. More than $42,000 access to the legal system. Grants are for There is only a 19% chance of discovery was raised for the grant program. The one year and must be designed to of oil there, and oil development would Student Organization also coordinates a achieve results within that time frame, or wreak ecological havoc in the area. The Matching Funds Program, in which law must demonstrate the capacity to Audubon Society has produced a video firms agree to match BLF fundraising to become self-supporting and/or develop on the issue narrated by actress Meryl subsidize students working for the firms other sources of funding. BLF awards Streep, which has been broadcast on the as summer clerks. approximately four major grants per Turner Broadcasting System. An entire This summer's grant recipients year, each averaging $20,000. issue of Audubon Magazine will be worked on projects relating to the fol- Grant proposals are due in January devoted to the Arctic National Wildlife lowing issues: and are summarized by BLF Board of Refuge. -censorship in China-defending a Directors members and volunteers. The September issue of Audubon jailed woman author; Board members then review the proposal Activist reported that the nation's wet- -protection of Native Alaskan hunt- summaries, rank them in order of prefer- lands are disappearing at a rate of ing and fishing rights; ence, and choose the finalists, who are 250,000 to 500,000 acres per year. These -counteracting alleged abuses by the interviewed. Factors considered in valuable ecosystems are being drained to Immigration and Naturalization Service awarding the grants include the need for create farmland, or dredged and filled in the Bay Area-organizing the immi- the proposed project, the project's poten-

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990) 4 PUBLIC INTEREST ORGANIZATION ACTION

tial impact, and quality of the proposal. August 2, and included 74 dealerships still used on food and that many of these The Board usually announces final selected at random in six regions of the chemicals go undetected by both the selection of grants by May I each year. state. In the Los Angeles area, 20 of 27 state and federal governments' pesticide New grantees begin work on their pro- salespeople gave wrong or evasive residue monitoring programs. Key find- jects in the summer or fall following answers. In San Diego, 17 of 19 sales ings of CalPIRG's report, Presumed award of the grant. For information on representatives responded with incorrect Innocent: A Report on 69 Cancer-Caus- grant applications, contact the BLF or evasive answers. At the news confer- ing Pesticides Allowed in Our Food, office at the address and phone number ence, CalPIRG called on manufacturers include the following: listed above. to voluntarily bring minivans up to the -Sixty-nine different pesticides linked same standards as passenger cars, and on to cancer are legally allowed to be used auto dealers to train salespeople to give on food. consumers accurate information on -Sixty of the pesticides are allowed CALIFORNIA PUBLIC minivan safety standards. Assembly- on sixteen commonly eaten foods, such INTEREST RESEARCH GROUP member Klehs' AB 3998 would have as apples, corn, and milk. 1147 S. Robertson Blvd., Suite 203 required labels on minivans sold or -Thirty-two of the 69 carcinogens are Los Angeles, CA 90035 leased in California stating whether the not detectable by the U.S. Food and (213) 278-9244 vehicle meets the same side door and Drug Administration's (FDA) routine roof reinforcement standards as passen- monitoring methods. CalPIRG is a nonprofit statewide ger cars. CalPIRG said minivan dealers -Thirty of the 69 carcinogens were organization founded by students from lobbied heavily against AB 3998-and among 118 pesticides found in food by several California universities. It is the their efforts were successful. Governor the FDA in its 1988 food monitoring largest student-funded organization of its Deukmejian vetoed AB 3998 on program. kind in the state. There are CalPIRG September 30. CalPIRG and Pesticide Watch called chapters on four campuses of the Uni- On August 9, Pesticide Watch-a the 69 pesticides "stealth chemicals" versity of California. CalPIRG now has CalPIRG-affiliated project-announced because they are not detected by food approximately 120,000 members state- a statewide campaign to educate voters monitoring methods, and said it is outra- wide, including thousands of citizens on the dangers of Proposition 135, which geous that nothing has been done yet members. the project called a "counterfeit" pesti- about the situation by the FDA, cide industry-sponsored initiative creat- Congress, or the California Department MAJOR PROJECTS: ed to invalidate Proposition 128 ("Big of Food and Agriculture to eliminate the In early July, CalPIRG issued a state- Green"). CalPIRG is one of the leading use of these cancer-causing pesticides on ment urging consumers to refrain from sponsors of Proposition 128. (See CRLR food. Big Green would phase out seven- purchasing minivans because they are Vol. 10, Nos. 2 & 3 (Spring/Summer teen of the most dangerous carcinogens not required to meet the same safety 1990) p. 28 for background informa- within five years. standards as passenger cars. In a seven- tion.) Pesticide Watch said Proposition During the summer, San Diego page report entitled Safety Takes a Back 135 will do nothing to protect Californi- CalPIRG conducted a survey on residen- Seat, CalPIRG said that exemptions ans from dangerous pesticides in our tial long distance phone rates. Rates for from federal requirements make mini- food and water. The group released a nine of the ten long distance companies vans potential "child death traps." The new study on Proposition 135 called available in the San Diego area were study showed that relaxed safety stan- Bad Policy, Big Fraud: What the Pesti- compared. (MCI was not included dards for light trucks and minivans cost cide Industry Doesn't Want Voters to because it failed to respond to the nation more than 2,000 lives each Know About Proposition 135. The report CalPIRG's requests for information.) year. CalPIRG wants the federal govern- claims that if Proposition 135 is passed The range in the residential rates varied ment to require front-seat passive in November, it would increase pesticide about 12%, or between $41 to $46. The restraints, head rests, shoulder restraints, and toxic chemical contamination of survey used sample ten-minute calls dur- crush-resistant roofs and reinforced drinking water; solidify policies allow- ing daytime, evening, and night or week- doors, higher center-mounted brake ing preventable poisonings of farmwork- end calling periods to Los Angeles, Fres- lights, and better bumpers on minivans ers; reduce the government's ability to no, San Francisco, Phoenix, Denver, and light trucks. The National Highway protect infants, children, and consumers Houston, Chicago, Atlanta, and New Traffic Safety Administration said that from dangerous levels of pesticides; and York. Charges for the sample calls for the process of requiring auto manufac- shift the costs of pesticide research mon- each company were: Coin Sys- turers to include the added safety fea- itoring and clean-up from the pesticide tems-$41; U.S. Sprint-$42.53; tures will not conclude until September industry to taxpayers. TMC-$42.85; Metromedia/ITT- 1997. David Bunn, Research Director for $43.50; ExpressTel-$43.61; Escondido On September 6, CalPIRG held a Pesticide Watch, said Proposition 135 Telephone-$44.27; AT&T-$45.26; news conference in Los Angeles calling would mean five giant steps backward in and Allnet-$46.2 1. on the Governor to sign AB 3998 food, water, and worker safety policy. Several bills supported by CalPIRG (Klehs), a minivan safety labeling mea- Pesticide Watch sent over 100 young were successful this year. On September sure. A statewide CalPIRG survey campaigners into neighborhoods to work 13, Governor Deukmejian signed AB released at the new conference, entitled for Big Green and against Proposition 1430 (Eastin) (Chapter 891, Statutes of Hidden Dangers: Minivan Dealers Eva- 135 in ten cities around the state. Pesti- 1990), which requests the University of sive on Safety Standards, showed that cide Watch said it intends to end the cha- California to report to the legislature by nearly 80% of auto salespeople gave rade and unmask the fact that the pesti- March 1, 1991, on existing research and incorrect or evasive answers when asked cide industry is behind Proposition 135. teaching programs relating to hazardous whether minivans meet the same safety In a report released on September 3, materials and the feasibility of establish- standards as passenger cars. The survey CalPIRG asserted that dozens of pesti- ing a Hazardous Materials Use Reduc- was conducted between July 31 and cides that cause cancer, such as Alar, are tion Institute. However, the Governor

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990) PUBLIC INTEREST ORGANIZATION ACTION

vetoed AB 1728 (Katz), the Toxics months of 1990 over the same time peri- for recycled products materials. Many Reporting and Use Reduction Act of od one year ago. State officials, environ- companies are falsely claiming environ- 1990. This bill would have required the mentalists, and waste haulers all agree mental or "degradable" benefits for their Environmental Affairs Agency to report that the increase is due primarily to products. Among other things, AB 3994 to the legislature before July 1, 1992, on increased refunds paid to consumers, requires that products contain at least the progress of harzardous materials data which went into effect on January 1, 10% "postconsumer" (previously used) collection coordination and consolida- 1990 under SB 1221 (Hart). (See CRLR waste before manufacturers may claim tion efforts, and make recommendations Vol. 9, No. 4 (Fall 1989) p. 16 for back- their product is "recycled". for consolidation reporting require- ground information.) The amount of Another bill supported by CAW was ments. (See CRLR Vol. 10, Nos. 2 & 3 plastic beverage containers recycled vetoed on August 17. SB 2342 (Killea) (Spring/Summer 1990) p. 28 for back- mushroomed 242% over last year, to would have prohibited child day care ground information on these bills.) 4,184 tons. Glass beverage bottle recy- facilities from refusing to care for a child Also, SCR 84-the "Valdez Princi- cling increased 69% (to 179,834 tons), if the parent furnishes or authorizes the ples" Resolution-was chaptered (Chap- and aluminum can recycling increased use of cloth diapers. Instead, the bill ter 131, Resolutions of 1990). The 13% (to 65,329 tons). The state reported would have required day care centers to resolution requests the board of adminis- that 72% of all beverage containers eligi- develop a written policy regarding the tration of the Public Employees' Retire- ble for redemption values are being recy- use of disposable vs. cloth diapers, and ment System and the Teachers' Retire- cled. The amount paid out in refunds allowed them to charge and collect a ment Board to take shareholder action tripled this year, to $94.3 million. "diaper handling fee" to cover the costs respecting the Valdez Principles, a code In mid-August, two bills supported of implementing the written policy. In of conduct for corporate activities affect- by CAW that would have included wine his veto message, the Governor found ing the environment. and liquor bottles in the state's beverage that requiring day care centers to main- container recycling program were tain a separate airtight container for defeated in the Senate Committee on soiled cloth diapers "could force some Natural Resources and Wildlife, due to day care operators out of business." CALIFORNIANS heavy lobbying by wine and liquor CAW and other environmentalists AGAINST WASTE industries. AB 3050 (Margolin) and SB hailed the appointment of their candi- 909 12th St., Suite 201 2090 (Hart) would have provided recy- date, Wesley Chesbro, to the new Cali- Sacramento, CA 95814 cling refunds for all beverage containers, fornia Integrated Waste Management including water and juice containers and and Recycling Board (CIWMB), which (916) 443-5422 milk jugs. (See CRLR Vol. 10, Nos. 2 & was established through the 1989 pas- In 1977, Californians Against Waste 3 (Spring/Summer 1990) p. 29 for back- sage of AB 939 (Sher). (See CRLR Vol. (CAW) was formed to advocate for a ground information). Assemblymember 10, No. I (Winter 1990) pp. 129-30 and recycling bill in the legislature which Burt Margolin said it is unfair for the Vol. 9, No. 4 (Fall 1989) pp. 16 and 110- would require a minimum refundable wine and spirits industries to be exempt- I I for background information.) Ches- deposit of five cents on beer and soft ed from the bottle laws which affect bro was sponsored by Senator Barry drink containers. After being repeatedly manufacturers of other beverage con- Keene and appointed to the Board by thwarted legislatively by well-financed tainers. He said his bill would have Senate President pro Tem David Roberti. industry opponents, CAW sponsored and increased the number of bottles recycled Chesbro, a longtime recycling advocate organized a coalition for a statewide citi- each year by 600 million. The legislation and former member of the Humboldt zen initiative which appeared on the bal- would have taken effect in 1993, giving County Board of Supervisors, founded lot in 1982 as Proposition 11. That mea- the industries time to adjust to the new the Arcata Community Recycling Center sure failed after can and bottle law. A Wine Institute lobbyist com- in 1971 while still attending Humboldt allies raised and plained that the bill would have meant State University. Chesbro was elected to manufacturers and their "undue hardships" spent $6 million to defeat it. CAW then for California's 800 the Arcata City Council in 1974 and was worked for the 1986 passage of the "bot- wineries. The measure died in the Senate executive director of the Northcoast tle bill" (AB 2020-Margolin), which for committee on a 3-2 vote; it needed five Environmental Center. the first time established redemption val- votes to pass. John Gallagher, nominated as an "environmentalist" member ues for glass, aluminum, and two-liter AB 4298 (Brown), a bill opposed by of CIWMB plastic beverage containers. As of Jan- CAW, passed the Senate Natural by Governor Deukmejian, came under uary 1, 1990, under SB 1221 (Hart), Resources and Wildlife Committee on heavy criticism by CAW and other envi- redemption values increased from one August 15 after being rejected by that ronmental organizations. Gallagher is a cent per glass or aluminum container to same committee on August 8. AB 4298 former chair of the California Waste five cents for every two containers would have relieved glass manufacturers Management Board, the agency abol- returned. Two-liter plastic beverage con- of their responsiblity to pay a processing ished in AB 939 and replaced with tainers are now worth five cents each. fee to the state to help pay the cost of CIWMB, and a lifetime career represen- Under SB 1221, redemption values for recycling their products until October 1, tative of industry and anti-recycling aluminum, glass, and plastic beverage 1993. The bill's author, Assembly positions. The opposition to Gallagher's appointment became so intense that the containers will increase if a recycling Speaker Willie Brown, received a $1,000 speaking fee last year from the Governor withdrew his nomination. goal of 65% is not reached by 1993. Glass Packaging Institute. His bill later CIWMB's job is to ensure that AB 939's MAJOR PROJECTS: died in the Senate Appropriations Com- goal of reducing by half (through reduc- In mid-August, the state Department mittee. tion and recycling) the 40 million tons of of Conservation reported that the overall AB 3994 (Sher), supported by CAW, waste going into state landfills every volume of recycled beverage containers was signed by the Governor on Septem- year is accomplished by the year 2000. has increased by 50%-to more than ber 28 (Chapter 1413, Statutues of Environmentalists are concerned about 249,000 tons-during the first six 1990). AB 3994 sets labeling standards the make-up of CIWMB since Governor

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990) t PUBLIC INTEREST ORGANIZATION ACTION I

Deukmejian has four of the six appoint- the 'Big Green' Proposition 128 initia- Spike Lee, David Crosby, Graham Nash, ments. tive campaign (the Environmental Pro- Steven Stills, Neil Young, Robin CAW has produced a guide for local tection Act of 1990) in cash and staffing Williams, Lily Tomlin, Neil Simon, Ray governments on how to organize a com- thus far. After four years, we are as com- Stark, Robert DeNiro, Meryl Streep, prehensive recycling program, entitled mitted to Big Green as we were to initia- Chevy Chase, Jeff Bridges, Martin Cutting Our Waste In Half: The Model tive drives to close the Rancho Seco Short, Goldie Hawn, Olivia Newton- Planning Approach to City and County nuclear plant, pass the tobacco tax initia- John, Cher, Don Henley, and Canada's Waste Reuse, Reduction, Recycling and tive (Proposition 99), and the Get Tough Cirque du Soleil. Composting. The guide takes local gov- on Toxics (Proposition 65) campaign." California Public Utilities Commis- ernments step by step through the pro- According to Ory, Campaign Califor- sion (PUC) President Mitchell Wilk cess of developing plans to reduce land- nia's state chair, Assemblymember Tom responded to a Campaign California let- fill waste by 25% by 1995 and 50% by Hayden, and his former wife, Jane Fon- ter sent last March regarding the safety 2000 (as required by AB 939). The da, contributed $800,000 directly to the and economic performance of the San guide is available through the Division Proposition 65 campaign, and Campaign Onofre Unit 1 nuclear reactor. (See of Recycling of the state Department of California played a major role in raising CRLR Vol. 10, Nos. 2 & 3 (Spring/Sum- Conservation. the additional $900,000 for that initia- mer 1990) pp. 29-30 for background The Californians Against Waste tive. Ory reported that Campaign Cali- information.) Commissioner Wilk's let- Foundation (CAWF) has published a fornia and other Proposition 65 support- ter, dated March 29, said that no special guide on the variety and availability of ers have won all of the court challenges hearings on the plant's operation would recycled paper in the marketplace, called that Governor Deukmejian has generated be convened, but that issues of concern Guide to Recycled Printing and Writing to resist implementation of the toxics ini- could be raised in the next general rate Paper. The guide describes more than tiative. case proceeding for Southern California fifty varieties of recycled paper, includ- Campaign California also played a Edison Company (major owner and ing computer printout, bond, xerograph- significant role in collecting signatures operator of San Onofre) in 1991. Wilk ic, text, lined pads, letterhead, loose leaf, and urging the passage of Proposition said that if Unit 1 operates at less than a laser printer, and even envelopes. To 99, the 1988 Tobacco Tax initiative, 55% capacity for one fuel cycle, half the obtain a copy of the guide, call CAWF at including $400,000 in contributions. cost of replacement fuel and power will (916) 443-8317; or write to CAWF at the Jack Nichol, former Campaign Califor- be borne by company shareholders. Sacramento address listed above. nia Director, stepped down from his Campaign California also raised its con- position to manage the successful Propo- cerns about San Onofre Unit 1 with state sition 99 campaign. Senator Herschel Rosenthal, chair of the CAMPAIGN CALIFORNIA Bob Mulholland, Campaign Califor- Senate Committee on Energy and Public 926 J Street, Suite 1400 nia Political Director, managed the suc- Utilities. Senator Rosenthal responded Sacramento, CA 95814 cessful campaign to close down the Ran- that he shares these concerns, and noted (916) 447-8950 cho Seco nuclear plant in 1989. that he introduced legislation (SB 2541) According to Ory, Campaign California to establish a statewide nuclear power In July 1986, the Campaign for contributed over $250,000 in cash and plant advisory committee composed of Economic Democracy (founded in 1977) staff for that effort. Now, Mulholland is independent experts. The committee became Campaign California. The managing the campaign for Big Green would review the safety, public health, 100,000-member/contributor organiza- (Proposition 128), and Campaign Cali- and environmental conditions of all tion, with offices in Sacramento, San fornia has already contributed over commercial nuclear power plants in the Jose, San Francisco, and Santa Monica, $200,000 in cash and staffing resources. state. Pressure by the major utility com- continues as the largest progressive citi- Campaign California Chair Tom Hayden panies prevented the bill from moving zens action group in the state. Each is the statewide chairperson for the Big this year. Senator Rosenthal may reintro- office of the organization operates a Green campaign, and Big Green is the duce the measure in 1991. door-to-door and telephone canvass, top priority for Campaign California this providing direct contact with voters fall. regarding issues; facilitating fundraising Tom Hayden and Jane Fonda's con- and signature collection drives; and nections with the entertainment industry CENTER FOR LAW IN THE resulting in registration of new voters. have led to major funding and support PUBLIC INTEREST Campaign California supports efforts for Big Green. At this writing, nearly $1 11835 W. Olympic Blvd., Suite 1155 to frame workable, progressive solutions million has been contributed by enter- Los Angeles, CA 90064 to problems in the areas of child care, tainers, television and movie production (213) 470-3000 education, environment, transportation, companies, record companies, and relat- personal safety, insurance, and health ed industries. Scores of concerts, The Center for Law in the Public care. It targets the private entrepreneur fundraisers, and benefits featuring big- Interest (CLIPI), founded in 1971, pro- as a source of economic growth, jobs, name talent have been organized. Major vides public interest law services. Due to and innovation. celebrities who have given to the Propo- economic considerations, in 1988 CLIPI MAJOR PROJECTS: sition 128 campaign include Ted Turner began using outside counsel rather than On its fourth anniversary in July, ($100,000) and Jane Fonda ($40,000); employ a full-time legal staff. Some Campaign California released a state- stars who have appeared in television legal services for the Center are provided ment reviewing its history. "Despite ads or at benefit events include Gregory by the law firm of Hall and Phillips, being the number one target of Republi- Peck, Bette Midler, Barbra Streisand, while a number of legal cases are han- cans and right-wingers, Campaign Cali- Jack Lemmon, Elizabeth Taylor, Paul dled on a contract basis by outside attor- fornia still survives," Director Karl Ory Newman, Joanne Woodward, Carol Bur- neys. CLIPI's major focus is litigation in said. "We remain a major funder of pro- nett, Kirk Douglas, Whoopi Goldberg, the areas of environmental protection, gressive causes, giving over $200,000 to Oliver Stone, Madonna, Stevie Wonder, civil rights and liberties, corporate

The California Regulatorv I -w Rpnort. Vnl In No 4 (Fall 1990) PUBLIC INTEREST ORGANIZATION ACTION

reform, arms control, communications on the critical equal protection issue. and $1.5 million in back pay and dam- and land use planning. CLIPI sponsors CLIPI has appealed its case, Nordlinger ages. The latest version of the consent law student extern and fellowship pro- v. Lynch, to the California Supreme decree was recently filed with U.S. Dis- grams, and periodically pubishes a Court, and expects to take the matter to trict Court Judge Thelton Henderson, newsletter called Public Interest Briefs. the U.S. Supreme Court. CLIPI's who will decide whether to approve the research has found that property taxes proposal. The matter is set for a Decem- MAJOR PROJECTS: would be more fairly equalized under a ber 5 hearing. The suit was originally In September 1989, CLIPI filed a traditional market-value system, causing filed in May 1986 by six minority oil Proposition 13 in Los legal challenge to the Los Angeles countywide tax rate to field workers who complained about Angeles County Superior Court. CLIPI's fall by 50% while still generating the denial of promotions to about 100 action followed the U.S. Supreme same overall revenue. minority employees of Chevron's North- Court's January 1989 decision in CLIPI recently won an important ern Allegheny Pittsburgh Coal Co. v. County California Division Production case on behalf of thousands of mentally Department in Bakersfield. Co-counsel Comm'n, in which it invalidated a Vir- disabled and homeless people in Los are the NAACP Legal Defense and Edu- ginia tax assessment system similar to Angeles County. In January 1990, the Proposition 13 on equal protection cational Fund, the Mexican-American Los Angeles County Superior Court Legal Defense and Educational Fund, grounds. (See CRLR Vol. 9, No. I (Win- ruled that the Los Angeles county wel- ter 1989) p. Ill for background informa- and a private law firm. (See CRLR Vol. fare agency-the Department of Public 9, No. 4 (Fall 1989) p. 17; Vol. 8, No. 2 tion on the Allegheny case.) Hall and Social Services-must continue on a Phillips' Carlyle Hall and Mary Louise (Spring 1988) pp. 17-18; Vol. 7 No. 1 permanent basis a program of special (Winter 1987) p. 17; and Vol. 6, No. 4 Cohen are handling the complex legal attention and assistance to such people work for CLIPI. (Fall 1986) p. 14 for background infor- when they apply for general relief. The mation.) In a study commissioned by CLIPI, program provides training for all welfare economist David Gold found that new employees on how to identify mentally homeowners throughout Los Angeles disabled people and how to assist them. commonly pay property taxes 10 to 17 Last spring, CLIPI filed a second CENTER FOR PUBLIC times as high as neighbors who have lawsuit against the Los Angeles County owned their homes for many years. One INTEREST LAW Board of Supervisors in the effort to save University of San Diego family may pay as little as $400 per year 320 acres of prime parkland in Agoura in property taxes, while their next-door (part of the old Paramount Ranch, a fre- School of Law neighbors could pay almost $7,000 in quent location for western movies) from Alcala Park taxes for an identical home. The CLIPI overdevelopment. The land was slated San Diego, CA 92110 study also found that new owners of for purchase by park agencies to be com- (619) 260-4806 vacant lots pay as much as 250 to 500 bined with an adjacent 486-acre parcel times the property taxes paid by long- already incorporated into the Santa Mon- The Center for Public Interest Law time owners of comparable properties. ica Mountains National Recreation Area. (CPIL) was formed in 1980 after These inequities are due to the 1978 pas- But the owner of the property and the approval by the faculty of the University sage of Proposition 13 by California vot- developer persuaded the Board of Super- of San Diego School of Law. The faculty ers, and has come to be known as the visors to increase the zoning density, selected Robert C. Fellmeth, a law facul- "welcome stranger" system (new prop- placing the land's price tag out of the ty professor, as the Center's director. erty owners are welcome additions to a reach of the public agencies which had CPIL is funded by the University and community because they bear an unfair- been saving to buy it. The first CLIPI private foundation grants. ly high tax burden). The measure was suit, filed on behalf of the Sierra Club The Center is headquartered in San intended to prevent unfair property taxa- and the Las Virgenes Homeowners Fed- Diego and has branch offices in Sacra- tion, but the effect has been quite the eration, asserts that the environmental mento and San Francisco. Each year, opposite, according to CLIPI. impact report is inadequate because it approximately fifty law students partici- CLIPI says Proposition 13 has bene- fails to take into account the land's pate for academic credit as CPIL interns. fited people who have owned property potential acquisition as a park. (See Students in the Center attend courses in for several years, but has hurt people CRLR Vol. 10, No. I (Winter 1990) p. regulated industries, administrative law, who are trying to buy their first homes. 25 for background information.) environmental law, and consumer law, The initiative limited taxes to 1% of a In August 1989, before the first and attend meetings and monitor activi- property's "full cash value." For those CLIPI/Sierra Club suit could be heard, ties of assigned regulatory agencies. who bought homes in 1975-76, full cash the Board vacated its earlier upzoning Each student also contributes quarterly value is the assessment for that year plus approval and attempted to supplement agency updates to the California Regu- a maximum increase for inflation of 2% the environmental record with new latory Law Reporter. After several per year. For those who bought homes in information. But CLIPI said the matter months, the students choose clinic pro- 1988, full cash value is the price they was not properly opened to the public, jects involving active participation in paid. Southern California real estate val- the record was reopened in too limited a rulemaking, litigation, or writing. ues have increased far more than 2% per manner, and the new information was CPIL's professional staff consists of year (especially in the late 1980s), creat- not entered into the record properly public interest litigators, research attor- ing extreme differences in assessed valu- -thus requiring a second suit. neys, and lobbyists. Center staff mem- ations of homes in a single neighbor- In March, a proposed settlement was bers actively represent the public interest hood. reached in Barefield v. Chevron USA, in a variety of fora, including the courts, In January 1990, the superior court CLIPI's employment discrimination the legislature, and administrative agen- ruled that it is bound by the state class action against Chevron. The settle- cies. Supreme Court's 1978 decision uphold- ment calls for African-American and The Center is attempting to make the ing Proposition 13 until that court rules Latino promotions and training goals, regulatory functions of state government

Thp C-liforr" R 'torv - I -w Up rtr Vc' 1i No 4 (FII 1900) PUBLIC INTEREST ORGANIZATION ACTION

more efficient and more visible by serv- The Center was especially disturbed Vol. 8, No. 2 (Spring 1988) p. 18; and ing as a public monitor of state regulato- by the Governor's veto of the following Vol. 7, No. 4 (Fall 1987) p. 17 for back- ry agencies. The Center studies approxi- bills (see supra COMMENTARY for ground information on this case.) mately seventy agencies, including most further information): -On September 10, CPIL filed a Pub- boards, commissions and departments -SB 2500 (Hart), which would have lic Records Act suit against the Depart- with entry control, rate regulation, or allowed corporations to be placed on ment of Insurance (DOI) on behalf of related regulatory powers over business, criminal probation when they repeatedly Joseph M. Belth, a professor of insur- trades, professions, and the environment. commit environmental crimes, violate ance at Indiana University. Professor MAJOR PROJECTS: antitrust laws, or perpetrate consumer Belth sought copies of DOI records on CPIL's legislative advocacy resulted product-related offenses; First Executive Corporation, a financial- in a number of important successes this -SB 2666 (Presley), which would ly troubled life insurance holding com- year. Highlighting the session was the have reformed the State Bar's Judicial pany. DOI denied Belth's request, assert- Governor's September 30 approval of Nominee Evaluation Commission pro- ing the documents were confidential. SB 2375 (Presley) cess; and Immediately after the lawsuit was filed, (Chapter 1597, -SB 62 (Ayala), Statutes of 1990), the Center's bill to which would have DOI turned over the requested docu- strengthen the physician discipline sys- reinstated the Brown Act requirement ments; CPIL is now seeking its attor- tem of the Medical Board of California that local governments publish agendas neys' fees under the PRA. (MBC). (See infra agency report on in advance of their meetings. The fund- -In mid-August, on behalf of Califor- MBC and CRLR Vol. 10, Nos. 2 & 3 ing to reimburse local governments for nia Common Cause, CPIL attorneys Carl (Spring/Summer 1990) pp. 30-31, 97-98, their agenda costs (which cost the state Oshiro and Terry Coble successfully and 100 for further information on SB $12,000 in 1989) was cut during this sued the "No on 131" campaign and 2375.) Other bills signed by the Gover- summer's protracted budget process, and forced it to correct factual misstatements nor which were drafted, sponsored, SB 62 would have restored it. in its ballot pamphlet arguments against and/or supported by the Center include On September 1, CPIL Director Proposition 131, the Clean Government the following: Robert Fellmeth released the Seventh Initiative on November's ballot. In -AB 2249 (Friedman) makes it a Progress Report of the State Bar Disci- Phillips v. Eu, No. 364719 (Sacramento crime for a corporation or manager to pline Monitor. (See infra agency report County Superior Court), Judge Joe S. knowingly fail to warn the appropriate on STATE BAR; see also CRLR Vol. 9, Gray labeled several of the opponents' regulatory agency and affected employ- No. 4 (Fall 1989) pp. 18 and 137; Vol. 9, assertions "falsehoods" and ordered ees of a serious concealed danger associ- No. 1 (Winter 1989) pp. 17 and 107; and them to correct the ballot statements ated with its product and/or operations; Vol. 8, No. 4 (Fall 1988) pp. 18-19 for before they are officially published. it also imposes criminal sanctions for background information.) The report -On August 1, in Bonnie Moore v. knowingly discriminating against summarizes the improvements in the Board of Accountancy, the First District "whistleblowers" (Chapter 1616, functioning and output of the Bar's dis- Court of Appeal upheld the constitution- Statutes of 1990). cipline system since 1987, and reviews ality of a regulation adopted by the state -AB 3008 (Eastin) at long last merges the remaining deficiencies in the Bar's Board of Accountancy which precludes system, including the following: the the use of the terms "accountant" and the Board of Barber Examiners and the "accounting" in advertising Board of Cosmetology (Chapter 1672, Bar's continuing failure to effectively by unli- Statutes of 1990). CPIL has long advo- publicize its toll-free complaint number; censed accountants performing lawful cated this merger, and published a fea- a remaining backlog of cases at several services permitted under section 5052 of ture article on the issue (entitled Barber specified points in the system; the over- the Business and Professions Code. or Cosmetologist: Only Your Hairdress- all length of the process remains unac- CPIL staff counsel Julie D'Angelo and er Knows for Sure) in Volume 7, No. I ceptably long; and the State Bar Court former Center intern Misty Colwell filed (Winter 1987) of the Reporter. needs at least two additional judges in an amicus curiae brief on behalf of Bon- -AB 2572 (Eastin) (Chapter 832, Los Angeles. The Monitor exhorted the nie Moore, arguing that the Board is a Statutes of 1990) derives from CPIL's Bar to broaden its disciplinary focus constitutionally invalid tribunal for pur- testimony and advocacy before the Little from strictly dishonesty to incompe- poses of adopting and enforcing this Hoover Commission and from its schol- tence, to examine methods of preventing advertising rule-the Board is dominat- arship on seeking non-regulatory solu- attorney incompetence and dishonesty, ed by CPAs, has no unlicensed accoun- tions to problems. It requires all legisla- and to explore mandatory malpractice tant member, and the rule works to the tors and organizations proposing new insurance for the protection of con- benefit of CPAs by outlawing any effec- regulatory agencies to satisfy what CPIL sumers. tive advertising by the unlicensed com- calls "sunrise criteria." (See CRLR Vol. CPIL's litigation activity yielded petition. Bonnie Moore has now sought 9, No. 4 (Fall 1989) pp. 32-34 for back- mixed results this summer: review by the California Supreme Court; ground information.) -Le Bup Thi Dao v. Board of Medical CPIL has filed a letter brief in support of CPIL was disappointed that its SB Quality Assurance-on August 15, her petition. (See infra agency report on 2163 (Hart) failed to pass the legislature. CPIL litigator Carl Oshiro filed a peti- BOARD OF ACCOUNTANCY for fur- The bill would have limited or required tion for certiorari in the U.S. Supreme ther information on this case.) disclosure of ex parte (private) contacts Court in its civil rights action against the CPIL Program Manager Beth Givens between the major financial regulators physician licensing board (now called continues work on the inside wiring and financial institutions regulated the Medical Board of California). CPIL grant jointly awarded to CPIL and the where adjudicatory proceedings have seeks reversal of a First District Court of Utility Consumers' Action Network, begun. These rules are common to all Appeal ruling that money damages are (UCAN) by the Public Utilities Commis- courts and are even more necessary unavailable against a state in an action sion's Telecommunications Education between an administrative law judge and under section 1981 of the federal civil Trust (TET). Through a random sample a respondent in a major regulatory adju- rights laws. (See CRLR Vol. 10, Nos. 2 survey of 625 San Diegans performed by dication. & 3 (Spring/Summer 1990) pp. 102-03; a local research firm, CPIL/UCAN have

The California Repulatory Law Reporter Vol. 10, No. 4 (Fall 1990) PUBLIC INTEREST ORGANIZATION ACTION

documented widespread consumer con- to twelve consecutive years in office. this tactic is only a preview of the type fusion about responsibility for inside The measure would also limit campaign of misleading advertising that will per- telephone wiring repair, problem diag- spending and create a system of partial meate the airwaves before the November nosis, and service options. One out of public financing that would encourage election. two San Diegans do not know they are smaller contributions. In addition, CCC celebrated the voters' approval now responsible for the phone wiring Proposition 131 will: of Proposition 112 by a 63% margin in and jacks in their homes. Renters are -strictly limit the amount political the June 5 primary election. The group even more confused than the general action committees (PACs) may give to had worked and lobbied for three years public, with two-thirds being unaware of candidates; on the landmark ethics reform measure their responsibility. Also, those least -strictly limit the proportion of funds that was finally placed on the ballot by able to afford to pay for repairs will gen- candidates may raisc from PACs; the legislature. The passage of Proposi- erally choose the more expensive service -reward small contributions from tion 112 enshrined in the state constitu- options. The survey also indicated that individuals, particularly those who actu- tion a package of sweeping reform mea- there is little, if any, competitive market- ally live in a candidate's district; sures designed to curtail government place for residential inside wiring repair -ban all honoraria and speaking fees corruption and the influence of wealthy services. Independent service compa- for all elected officials; special interest groups in Sacramento. nies, which offer considerable savings -limit all gifts to elected officials; and (See CRLR Vol. 10, Nos. 2 & 3 over Pacific Bell, are virtually invisible -close the legislators' conflict of (Spring/Summer 1990) p. 32 for back- to residential consumers. interest loophole. ground information.) In its fall newslet- Based on the survey results, Givens On September 17, Proposition 131 ter, CCC stated that its membership and media coordinator Judith Moore supporters kicked off their campaign on deserves congratulations for its help on have designed educational brochures in the steps of the federal courthouse in the winning effort for Proposition 112. several different languages targeted at Sacramento with a bit of street theatre. In June, Common Cause called on homeowners, renters, and landlords. The The court building was the site of a state Senator John Garamendi to give up groups plan to release the brochures in recent high-profile political corruption his new position as chair of the State October, and have also contracted for the trial. In the skit, twelve citizens wearing Select Committee on the Department of production of a public service announce- symbolic black robes represented the Insurance. CCC said the panel was creat- ment educating consumers on their twelve million voters who have the ed solely to benefit Garamendi's cam- rights and responsibilities regarding opportunity to render a "verdict" to clean paign for the post of state insurance inside telephone wiring. up state government on election day by commissioner, and did not exist until one supporting Proposition 131. Participants week after the June 5 election. Garamen- held up a banner stating, "The People's di won the June Democratic Party prima- Verdict: Yes on Proposition 131." ry for insurance commissioner, and is COMMON CAUSE In mid-September, Assembly Speak- now facing off against Republican nomi- 1535 Mission Street er Willie Brown hosted a $10,000 per nee Wes Bannister in the November 6 San Francisco,CA 94103 table fundraiser in Los Angeles, raising election. Garamendi initially said he (415) 252-1192 about $ 1million that is targeted to defeat would retain the post, but then resigned both Propositions 131 and 140. Proposi- his Senate seat on September 4 to run his California Common Cause (CCC) is tion 140 would limit state senators to campaign for insurance commissioner. a 55,000-member public interest lobby- two terms and assemblymembers to Also in June, Common Cause's ing organization dedicated to obtaining a three terms; cut legislators' pensions; national office reported that U.S. Senator more open, accountable and responsive and slash legislative operating funds by Pete Wilson has received $243,334 in government and decreasing the power of 38%. Brown and his allies are expected campaign contributions from the savings special interests to affect the legislature. to spend at least $5 million in their effort and loan industry since 1980-more MAJOR PROJECTS: to kill the two initiatives. The Proposi- than any other member of Congress. The November passage of Proposi- tion 131 campaign held a morning news Common Cause said S&L interests gave conference outside the posh Beverly tion 131, the Clean Government Initia- at least $11.6 million in campaign contri- Hills hotel site of Brown's fundraiser, tive, is a top priority for Common Cause. butions to congressmembers, candidates, blasting him for his special interest con- and political party The initiative, a state constitutional committees during the nections. Later that evening, Proposition last decade. Senator Alan Cranston was amendment, is cosponsored by Common 131 supporters picketed the event as lob- the fourth-highest recipient of S&L Cause and Attorney General John Van byists and big-money guests arrived in funds in the Senate, getting $143,700, de Kamp. Common Cause helped gather their limousines. according to the Common Cause study. a good part of the more than one million In mid-August, CCC-represented signatures submitted to qualify the mea- by attorneys Carl Oshiro and Terry sure. Others supporting Proposition 131 Coble from the Center for Public Interest include Ralph Nader, the Sierra Club, Law-successfully sued the "No on CONSUMER ACTION the Center for Public Interest Law, 131" campaign and forced it to correct 116 New Montgomery St., Suite 223 David Brower, the California National factual misstatements in its ballot pam- San Francisco,CA 94105 Organization for Women, Voter Revolt, phlet arguments against Proposition 131. (415) 777-9635 the California League of Conservation In Phillips v.Eu, No. 364719 (Sacra- Voters, and Public Citizen. mento County Superior Court), Judge San Francisco Consumer Action CCC Executive Director Jim Joe S. Gray labeled several of the oppo- (CA) is a nonprofit consumer advocacy Wheaton has stepped down from his nents' assertions "falsehoods" and and education organization formed in position to become campaign director ordered them to correct the ballot state- 197 1. Most of its 2,000 members are in for Proposition 131, which-among oth- ments before they were officially pub- northern California but significant er things-would limit state legislators lished. CCC spokespersons warned that growth has taken place in southern Cali-

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990) t PUBLIC INTEREST ORGANIZATION ACTION I

fornia over the past year. CA is a multi- earn less interest than do depositors else- A brochure on 900 calling is available to issue group which since 1984 has where in the nation. The report includes consumers who send a self-addressed, focused its work in the banking and the results of a national survey of 170 stamped envelope to CA at the address telecommunications industries. banking institutions, conducted by 20 listed above. CA has filed petitions with and consumer groups in 15 states and the Pay-per-call charges in the report appeared before the California Public District of Columbia. The study focused ranged from at least 85 cents for the first Utilities Commission (PUC) in the field on bank accounts available to consumers minute and 75 cents and up for succes- of telephone rates. Statewide pricing sur- with less than $1,000 on deposit (inter- sive minutes, to calls billed at a flat rate veys are published periodically compar- est-bearing checking, non-interest as high as $49.95. While 900 calls to ing the rates of equal-access long dis- checking, and money market accounts), companies inside California are subject tance companies and the prices of for which depositors pay higher rates in to regulation by the state PUC, most 900 services offered by financial institutions. California. Per check fees on non-inter- numbers are advertised by information Once each year, CA publishes consumer est checking accounts are also higher for providers outside the state, and are not service guides for the San Francisco Bay Californians. subject to state regulation. For example, area and the Los Angeles area which list Small-amount depositors also earn information providers within California agencies and groups offering services to less on "NOW" (interest-bearing check- may not charge more than $5 for the first consumers and assisting with com- ing) accounts, and on savings and money minute, or $1 for each additional minute, plaints. A free consumer complaint/ market deposit accounts. The survey and no more than $20 for the entire information switchboard is provided by includes Bank of America, First Inter- length of the call. California residents CA, and the group publishes a regular state Bank, Security Pacific Bank, Union may also block all 900 calls originating newsletter which includes the pricing Bank, Wells Fargo Bank, First Nation- from their phone line by calling the local surveys. More than 20,000 individual wide Savings Bank, Great Western Sav- phone company. consumers requested CA publications ings Bank, Home Federal Savings Bank, In proceedings before the PUC, CA during 1989. Consumer organizations and Home Savings of America. For a has asked the Commission to consider requested bulk orders of CA publica- copy of the survey, please contact CA at using its jurisdiction over billing by local tions in 1989 which exceeded 350,000 the address listed above. phone companies to ensure that Califor- copies. In its statewide survey of secured nia residents are protected from inter- credit cards at nine California banks and state 900 calling abuses. Local phone MAJOR PROJECTS: savings and loan institutions released on companies provide the billing for most On June 28, CA released its annual June 14, CA found six with annual per- 900 calls, and CA believes the local "Telephone Tips" survey, which showed centage rates (APRs) at or below 16%. A companies could be directed by the PUC of residential long distance that the cost secured credit card is a VISA or Master- not to bill for those interstate services calling has continued to decline over the Card tied to a savings account at the which do not conform to California con- past year, with intrastate rates falling financial institution which issues it. The rates. Further, the sumer safeguards. more than interstate customer agrees to maintain the savings In June, a coalition of consumer price range separating the major distance account balance while using the credit including CA released a report companies in California remains groups calling card. Credit limits are generally equal to negligible. CA concluded that the only calling credit life insurance "the nation's or half the balance in the account. CA worst insurance rip-off." The coalition people who actually benefit from shop- said such credit card plans are a good called for public education and regulato- ping for long distance services are those way for consumers with no credit back- features" or who make ry action to combat industry overcharges who use "travel ground to establish a payment history, can qualify for volume of nearly $1 billion in 1988. The critics many calls and and can help consumers reestablish a discounts and special calling plans. In said credit life insurance is a profit credit 1989, the three largest carriers were credit history after a period of bonanza for insurers and lenders, but a within 90 cents of each others' rates; so blemishes. A free fact sheet on the sur- bad deal for consumers. Credit life insur- is available to those who send a self- far this year, they are within $1.17 of vey ance is sold by lenders to insure the each other. addressed, stamped envelope to CA at amount due on an installment loan in the The survey covers five major long the address listed above. event the borrower dies. It is purchased distance carriers in the state, and CA warned consumers to beware of by many consumers who take out auto, includes rates for 27 sample domestic unscrupulous third-party companies home, and personal loans. Authored by calls (nine calls in each of three time which advertise plans to obtain secured the Consumer Federation of America, periods). It also covers travel feature credit cards-because they market cards the coalition's report revealed that for calls, international calls, volume dis- with exorbitant interest rates and/or con- every dollar spent on credit life insur- counts, and discount calling plans. The ditions which may not be disclosed when ance premiums, only 43 cents is returned CA survey found that rates for most the consumer applies for the card. in benefits. The coalition is seeking reg- international calls are nearly identical, In June, CA released the results of a ulatory action, asking state insurance but that there is a wide range in the cost recent survey it conducted of 144 pay- commissioners to mandate loan loss of travel features (e.g., calling while per-call (900 number) information ser- ratios of at least 70%. away from home and billing the call to vices. CA charged that "most advertised your home phone). Interested consumers 900 numbers are unfair at any price." may receive a free copy of the survey by The survey compiled a "dirty dozen" list sending a self-addressed, stamped enve- of phone service providers engaged in CONSUMERS UNION lope with 25 cents postage to the address what CA believes to be deceptive and 1535 Mission St. listed above. misleading practices. CA called on fed- San Francisco,CA 94103 A late June report released by CA, eral and state telecommunications regu- (415) 431-6747 the Consumer Federation of America, lators to take an active role in protecting and CalPIRG revealed that Californians consumers from the rip-offs that increas- Consumers Union (CU), the largest pay higher monthly banking fees and ingly accompany pay-per-call services. consumer organization in the nation, is a

The California Reoulatorv I -w Ronorter Vol. 10, No. 4 (F-11 1990) PUBLIC INTEREST ORGANIZATION ACTION

consumer advocate on a wide range of administrative law judge from the Office to settle on legislative reforms that might issues in both federal and state forums. of Administrative Hearings, presided head off this disaster," Snyder wrote. At the national level, Consumers Union over the matter. Snyder said up to 70% of the people publishes Consumer Reports. Historical- Hearings on the application of the currently insured by the state's Assigned ly, Consumers Union has been very Commissioner's 11.2% rollback rate to Risk Plan are "good drivers" for whom active in California consumer issues. specific insurance companies (see CRLR the Plan was not intended; and when the Vol. 10, Nos. 2 & 3 (Spring/Summer drastic increases and modified eligibility MAJOR PROJECTS: 1990) pp. 33-34 and 139-40 for back- criteria slated for that system take hold, On August 2, Consumers Union ground information on Proposition 103's many of those people will be forced into spoke out against state plans to regulate rollback requirement) were scheduled to the open market and will be unable to milk prices at a hearing in Sacramento begin on September 24. However, CU's find affordable policies. Snyder lament- before officials of the California Depart- participation in Proposition 103 proceed- ed the recent legislative defeat of AB ment of Food and Agriculture (CDFA). ings is on hold until a new commissioner 354 (Johnston), a low-cost, no-fault bill CU said the concept of "fixing" milk opposed by special interest lobbyists prices at a time when more nations is elected in November. In the meantime, in the representing both the insurance industry world are moving toward a market-driv- CU staff attorney Nettie Hoge is prepar- ing a report for public release which will and the trial lawyers. (See CRLR Vol. en economy is misguided, and would 10, No. I (Winter 1990) p. 28 and Vol. 9, raise the cost of milk to California con- explain to consumers the status of Proposition 103 and the various proceed- No. 3 (Summer 1989) pp. 17-18 for sumers by at least $20 million per year. background information on AB 354.) Dairy farmers have been heavily lobby- ings undertaken to implement it. The "After six months of dancing around, the ing CDFA to force consumers to pay report will cover the initiative's rollback politicians haven't been able to come up more for milk even though milk produc- requirement, exemptions, the new "prior with a workable plan of their own," he tion costs are dropping, according to approval" process, and the way in which emphasized. In the opinion piece, Sny- CU. rates will be affected by implementation of the initiative and its fair rate of return der concluded that Californians need a On August 6, CU, Latino Issues low-cost, no-frills policy which provides Forum, and Public Advocates sent a let- profit standard. prompt, undisputed payment for minor ter to state Insurance On September 20, CU and a coalition Commissioner accidents and forces fraudulent claims Roxani Gillespie of consumer and labor groups filed an stating that they out of the system; "these reforms would refused amicus curiae brief urging the First Dis- to participate in a scheduled combine the best time-tested ideas from August 8 rate approval hearing for trict Court of Appeal to require the State other states and go far toward solving Farm unless Insurance Commissioner to enforce con- the Commissioner agreed to California's auto insurance crisis." certain conditions. The consumer groups sumer protection laws, to allow public inspection of consumer complaint files, Last June, CU joined with Consumer demanded that Gillespie remove the Federation of America (CFA) and other "rent-a-judge" scheduled to preside over and to issue a new order prohibiting destruction of the complaint files by the consumer groups in blasting "credit life the case; in July, Judge James Scott insurance" riders on loans as "the admitted that he has recently been Department of Insurance (DOI). The case before the First District is the Com- nation's worst insurance rip-off." A selected, hired, and paid by the very report authored by CFA showed that insurance companies involved in the missioner's appeal of San Francisco Superior Court Judge John Dearman's consumers pay over $1 billion more per August 8 rate hearing to preside over year for credit life ruling in Bourhis v. Gillespie, No. insurance than they their cases. The groups also insisted that receive in benefits. Credit life insurance 907349 (Dec. 15, the Department of Insurance ensure full 1989), in which the is insurance sold by lenders in connec- lower court ordered Commissioner consumer access to and scrutiny of all tion with car loans, home mortgages, and Gillespie to bring enforcement actions insurance companies seeking rate personal loans; it pays the lender the bal- increases; and that Gillespie adopt a ten- against errant insurance companies and ance of a loan owed if the borrower dies. point Consumer Bill of Rights that car- to save consumer complaints for six CU's own supplemental report ries out the pro-consumer principles of months. (See CRLR Vol. 10, No. 1 (Win- showed that, at the end of 1988, Califor- Proposition 103. ter 1990) p. 110 for background informa- nians owned 4.2 million credit life insur- The letter to Gillespie said that the tion on this case.) The groups in the ance policies with a face value of $14.8 Commissioner's scheduled August 8 coalition contend they have the right to billion. CU estimates that California hearing constituted a denial of due pro- inspect consumer complaint and investi- consumers pay at least $76 million every cess and was totally biased in favor of gation files under the California Public year for credit insurance. CU said con- the insurance industry. The groups said Records Act, and that a six-month reten- sumers should purchase regular life they refused to be used as "window tion period is insufficient. Further, the insurance through an agent or insurance dressing" in the proceeding, which they coalition believes that DOI is shredding company, and shop for it like any other called "a joke." They threatened to chal- documents to prepare for the transition product. Credit life insurance is just an lenge the process in court unless the in administrations. excessively expensive form of life insur- Commissioner met their demands. On August 29, the Los Angeles Times ance; if one purchases it when taking out Commissioner Gillespie never printed a commentary by CU West Coast a loan, one has no choice but to pay the responded to the letter and demands of Director Harry Snyder, in which he pre- price of the insurer chosen by the lender. the consumer groups. The August 8 "pri- dicted that California's auto insurance The consumer groups called for a law or approval" rate hearing took place as crisis will worsen. He said the current which requires credit life, credit disabili- scheduled, but with no consumer group uninsured motorist rate (already at a ty, and property insurance policies sold participation. However, based on a chal- startling 25% of all drivers) will by creditors to return in benefits at least lenge by the Attorney General's office increase-possibly to 50%, and that 75% of every dollar paid in premiums; and an opinion by the Fair Political Prac- rates in general will escalate. "Governor and repeals current statutory rate sched- tices Commission, Judge Scott recused Deukmejian and the legislature are ules for credit life and disability insur- himself from the hearing. Frank Britt, an trapped in a political minuet, unwilling ance which do not meet this standard.

Th, C-liforn" R,-W-i"torv I -w Rpnort, r Vol 10 No 4 (Fall 1990) d PUBLIC INTEREST ORGANIZATION ACTION

They also called for a law prohibiting and shorebirds, as well as Nevada's win- gies. They suggested that trading "gross debt" coverage, in which the tering bald eagles, peregrine falcons, and arrangements and joint ventures could credit insurance covers interest on the white pelicans. The Nevada wetlands facilitate the transfer of environmental loan that is not yet due. They asked for have shrunk from over 80,000 acres to technology from industrialized to less action by financial institution regulators only 4,000 acres today. Although Still- developed nations. According to EDF's and/or legislatures to require lenders water has been federally protected habi- August newsletter, developing nations which sell credit insurance to take com- tat since 1948, water flow has steadily are a rapidly growing source of air pollu- petitive bids and sell only the lowest- decreased due to years of drought and tants, and a workable global warming priced credit insurance. The consumer water diversions to agriculture. solution must ensure that those nations coalition urged consumers not to assume Pyramid Lake, home to the threat- have access to greenhouse gas reduction that they must buy insurance when tak- ened Lahontan cutthroat trout, and area technologies and the means to pay for ing out a loan, and not to be afraid to say Native American communities have also them. A consensus has developed that no to this overpriced insurance. suffered from the dry years and diver- the more affluent nations must establish In late May, CU and CFA blasted the sion of water for crop irrigation. EDF funding means to aid the response of Bush administration and the Consumer scientists and economists performed an poorer nations to climate change, and Product Safety Commission (CPSC) for analysis which showed that least-cost that third world countries must also do failing to protect consumers adequately. water conservation measures and volun- more on their own to assist in resolving According to the two groups, more than tary purchases could provide both the the problem. 700 people each year are killed by fires Stillwater wetlands and Pyramid Lake from flammable furniture upholstery, with reliable water supplies. EDF and faulty kerosene heaters, and the wiring The Nature Conservancy worked togeth- of household appliances. White House er to negotiate land purchase and water FUND FOR ANIMALS budget cuts have meant no CPSC staff to transfer agreements with federal and Fort Mason Cente, Bldg. C investigate the causes of fires or ensure state agencies, farmers, Native American San Francisco, CA 94123 that voluntary industry safety standards communities, and the Truckee-Carson (415) 474-4020 are being followed, according to CU and Irrigation District. According the EDF, CFA. They called on Congress to the arrangements provide a glimmer of Founded in 1967, the Fund works for increase CPSC's budget by $14 million hope for the high desert wetlands. wildlife conservation and to combat cru- to meet its mission to protect consumers. During the past eighteen months, elty to animals locally, nationally, and EDF has been able to dramatically internationally. Its motto is "we speak expand its Global Atmosphere Program for those who can't." The Fund's activi- because of a $1 million grant from the ties include legislation, litigation, educa- ENVIRONMENTAL William Bingham Foundation of Cleve- tion, and confrontation. Its New York DEFENSE FUND land. The Foundation also helped EDF founder, Cleveland Amory, still serves Rockridge Market Hall seek out other foundation funds in order without salary as president and chief executive officer. 5655 College Ave. to build the largest nongovernmental sci- entific program in the nation to address Oakland, CA 94618 the problem of global warming. To date, MAJOR PROJECTS: In August, Fund for Animals Presi- (415) 658-8008 seventeen other foundations have responded with grants to EDF totalling dent Cleveland Amory announced that The Environmental Defense Fund the Fund's attorneys would take legal (EDF) was formed in 1967 by a group of nearly $400,000. The project now has thirteen full-time specialists and is action to stop most forms of hunting in Long Island scientists and naturalists California this year. The Fund won a concerned that DDT was poisoning the EDF's single biggest effort. EDF is pressing for a new interna- major victory on August 8 when Sacra- environment. EDF was a major force mento Superior Court Judge Cecily behind the 1972 federal ban of DDT. tional agreement to reduce greenhouse gas emissions which cause global warm- Bond blocked the state Department of Staffed by scientists, economists, and Fish and Game's (DFG) plan to allow attorneys, EDF is now a national organi- ing, similar to the 1987 Montreal accord which addressed the depletion of strato- bow-and-arrow hunting of black bears, zation working to protect the environ- which was scheduled to begin in ment and the public health. Through spheric ozone. (See CRLR Vol. 8, No. 3 (Summer 1988) p. 26 and Vol. 7, No. 4 September. Among other things, Judge extensive scientific and economic Bond said that DFG failed to adequately research, EDF identifies and develops (Fall 1987) p. 21 for background infor- mation.) EDF participates as a non- disclose well-documented evidence that solutions to environmental problems. archery hunting of bears results in a EDF currently concentrates on four governmental organization in the Inter- governmental Panel on Climate Change large number of wounded bears which areas of concern: energy, toxics, water die slow and painful deaths. The Fund resources and wildlife. (IPCC) sponsored by the United Nations Environment Programme and the World was scheduled to go back to court on MAJOR PROJECTS: Meteorological Organization. The 43- October 3 in an attempt to stop firearm In its August EDF Letter newsletter, nation IPCC will submit a three-part hunting of bears as well, due to begin EDF reported that after years of work by report on science, impacts, and policy to later in October. The Fund has now suc- EDF and other groups, a series of his- the Second United Nations World Cli- ceeded in halting DFG's scheduled black toric water rights transfers is bringing mate Conference to be held in Geneva in bear hunt for two consecutive years. badly needed water to Nevada's most November. (See infra agency report on DFG; see important wetlands ecosystem-the EDF specialists submitted a paper to also CRLR Vol. 9, No. 4 (Fall 1989) pp. Stillwater National Wildlife Refuge and the IPCC discussing how carbon diox- 21 and 119 for background information.) surrounding Lahontan Valley wetlands. ide, the primary greenhouse gas, could Meanwhile, SB 2176 (Hart)-a bill sup- According to EDF, the region is critical be reduced by expediting research and ported by Fund for Animals which to Pacific Flyway migrating waterfowl developing energy efficiency technolo- would have banned hunting of black

The California Reulatorv Law Reporter Vol. 10, No. 4 (F-II 1990) PUBLIC INTEREST ORGANIZATION ACTION

bears for three years and required a practice was halted in 1988 after Fund extensive breeding habitat for marine study of bear population by DFG for Animals and other animal welfare mammals in the 48 contiguous states. -failed to pass the legislature this year. groups complained. In 1987, a federal The moratorium does not include envi- Other legislation followed by the court ordered BLM not to sell or give ronmentally sensitive coastal areas in Fund yielded the following results: horses to agents who planned to slaugh- Alaska and the middle Atlantic coast. -AB 2461 (O'Connell), which would ter the animals. The summer 1990 issue of LCP's have banned the "draize" eye and skin GAO concluded that the program has Coastlines newsletter said that almost irritancy test on animals in California for been run largely to satisfy ranchers who before Saddam Hussein's troops reached cosmetic and household products, graze cattle on the land. Only about Kuwait City, "the powerful guns of Big passed the legislature on June 7 but was 12,000 wild horses graze on BLM land, Oil fired volleys of rhetoric against the vetoed by Governor Deukmejian on while over 4.1 million head of livestock administration's June 26 [drilling mora- June 25. use the BLM land for grazing with very torium]." According to the newsletter, -AB 2866 (Tanner), which would low rental fees for ranchers. within 24 hours of the Iraqi invasion, have prohibited the outdoor release of Senator Frank Murkowski (R-Alaska) ten or more helium-filled balloons, died had crafted an amendment to the in the Senate Appropriations Committee. Defense Authorization bill that would -SB 1110 (Marks), which would have LEAGUE FOR COASTAL nullify the offshore drilling ban. banned veal calf crates as cruel confine- PROTECTION Murkowski's "Energy Production and ment, died on the Assembly floor. P.O. Box 190812 Security Action Plan," approved by -AB 3617 (Kelley), opposed by the San Francisco, CA 94119-0812 acclamation in the Senate, would open Fund, would have removed alligators (415) 777-0220 virtually all offshore areas to oil and gas from the list of animal products not exploration and drilling whenever U.S. allowed in California. This bill died in Created in 1981, the League for oil imports exceed 50% of consumption the Senate Judiciary Committee. Coastal Protection (LCP) is a coalition for as long as six months. The Bush In August, the federal General of citizen organizations and individuals administration has said repeatedly that it Accounting Office (GAO) reported that working to preserve California's coast. It intends to vigorously pursue expansion thousands of wild horses have been is the only statewide organization con- of oil drilling operations from Prudhoe slaughtered, often after being cruelly centrating all its efforts on protecting the Bay, Alaska into the pristine Arctic mistreated. Fund for Animals has been coast. The League maintains a constant National Wildlife Refuge. protesting the treatment of wild horses presence in Sacramento and monitors LCP board member Ann Notthoff by the Bureau of Land Management Coastal Commission hearings. termed the White House moratorium "an (BLM) for several years. (See CRLR MAJOR PROJECTS: important concession to political reali- Vol. 10, No. I (Winter 1990) p. 29; Vol. On June 26, after months of delay, the ty." But she also noted-with what now 9, No. I (Winter 1989) p. 21; and Vol. 8, Bush administration finally announced a appears to be great foresight-that "we No. 2 (Spring 1988) pp. 21-22 for back- ten-year moratorium on oil drilling off are alarmed by the vague loophole that ground information.) the Pacific outer continental shelf authorizes cancellation of these protec- According to the GAO study, BLM's (including nearly 99% of the California tions in the event of supply disruption. "Adopt-a-Horse" program This makes was meant to coast) and the New England and Florida it even more clear that the remove horses from federal rangeland coasts. However, environmentalists only way to ensure that California's pre- both to control the number of wild hors- favored a permanent ban, and will con- cious coastal resources will be protected es and to keep them from over- tinue to push for federal legislation bar- from offshore drilling is to permanently grazing federal lands. Some 60,000 ring offshore oil drilling. The ban drilling." horses-mostly in Nevada-have been White House moratorium contains Other environmentalists have insisted removed and sold through the federal a "national security" exemption, giving President that conservation measures, improve- program over the last ten years. Howev- ments in energy efficiency, Bush the power to reopen the coastal and er, GAO found little evidence that the improved vehicle fuel standards would areas if he determines national wild horses were overgrazing or that the security interests require it. Representative Bar- replace the oil imported by the United rangeland has benefited from States from Iraq and Kuwait as fast or their bara Boxer, sponsor of H.R. 48, the Cali- removal, and questioned whether the faster than drilling in environmentally fornia Ocean Sanctuary bill expensive program is necessary. Accord- favored by sensitive areas. Environmental leaders environmentalists, termed the national ing to the GAO report, the BLM opera- called for an increase in auto fuel effi- security tion has cost over $81 million, or about clause a "giant loophole" that ciency of five miles per gallon (over the must be closed. Representative Boxer's $1,500 per horse. current 27 miles per gallon), which H.R. 48 would enact a ban on oil drilling GAO found that BLM had arranged would save two million barrels of oil per for the "adoption" of wild horses only to off the California coast, while her H.R. day. They urged the administration to allow increases in cattle and sheep graz- 3751-the National Ocean Protection restore drastically reduced research and ing by ranchers, "thereby negating any Act-would ban oil drilling off the development funding for renewable reduction in total forage consumption Pacific, Atlantic, and Alaska coasts. energy sources and other fuel conserva- and potential for range improvement." The Bush policy action does perma- tion measures. Because of the Persian Between 1984 and 1988, BLM allowed nently ban oil and gas development in Gulf crisis and the loopholes in the "sales" in which the usual fees were one area, in deference to recommenda- administration's moratorium, Coastlines waived for large-scale buyers, and at tions by the National Oceanic and Atmo- said it is even more important than ever least 4,000 horses sold for "adoption" spheric Administration (NOAA). The that defenders of the coast rally in sup- ended up in slaughterhouses. GAO indi- presidential decree establishes a perma- port of Representative Boxer's Ocean cated that many of 16,000 other horses nent drilling moratorium on the 2,200- Sanctuary bill and Proposition 128, the removed in this "give-away" may also acre National Marine Sanctuary in Mon- "Big Green" initiative appearing on Cal- have met the same fate. The fee waiver terey Bay, California-the most ifornia's November ballot.

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990) 4 PUBLIC INTEREST ORGANIZATION ACTION

After suffering a defeat in the Senate matter headings: public lands, coastal cancer or harm to reproductive systems Governmental Organization Committee, resources, pesticides, energy, and water unless it is demonstrated that its elimina- Assemblymember Ted Lempert's AB supply. In these areas, NRDC lawyers tion would result in severe economic 2063, a comprehensive oil spill protec- and scientists work on behalf of under- hardship to the agricultural industry. At a tion bill, was integrated into Senator represented environmental quality inter- recent Sacramento debate on the issue, Barry Keene's SB 2040, which passed in ests before numerous state and federal NRDC's Albert Meyerhoff argued that August despite heavy oil industry lobby- forums. Public health concerns are state food and agriculture officials are ing against it. The bill was signed by the increasingly a priority, in addition to "more intent on managing risk than pre- Governor on September 22 (Chapter conservation of nonrenewable resources venting our exposure" to dangerous 1248, Statutes of 1990). As urgency leg- and ecosystem preservation. chemicals. Meyerhoff contended that the islation, it became law immediately. NRDC has been active in developing burden of proof should be on the chemi- According to LCP's summer Coastlines, energy conservation alternatives to new cal industries to prove that their products environmentalists applied heavy pres- power plants and offshore oil drilling, are safe, rather than on the public to sure on Senator Keene, persuading him and resource-conserving land use poli- prove they are unsafe. to accept into his own bill almost all of cies in California's coastal counties and NRDC's international activities in the language of Assemblymember Lem- federally-managed lands. Notable recent tropical forestry are taking on new sig- pert's bill. SB 2040 includes the follow- achievements by NRDC include leader- nificance based on recent studies of trop- ing provisions: ship of coalitions which have developed ical deforestation from satellite observa- -The bill creates a $100-million oil broadly-supported federal legislative ini- tions, which suggest that the rate of spill clean-up fund, to be financed by an tiatives on pesticide regulation and effi- forest loss is nearly double previous esti- additional 25-cent tax on each barrel of ciency standards for household appli- mates. It now appears that forty to fifty oil. In the event of a spill, the state ances. million acres-an area the size of the -would have authority to borrow addi- Agricultural water supply and state of Washington-are deforested tional funds for clean-up operations; drainage issues are taking on growing annually in the tropics. In the Ecuadoran these funds would be repaid by oil com- importance with NRDC, including the Amazon region, NRDC specialists have panies. widely-publicized contamination of the been working with a coalition of -The Governor is required to appoint Kesterson Wildlife Refuge and the Ecuadoran environmentalists and indige- a state "oil spill czar" (actually a chief broader policy issues underlying that cri- nous peoples' organizations to halt oil deputy director of the Department of sis. In California, NRDC appears fre- drilling in large areas of previously Fish and Game) charged with specified quently before the Coastal Commission, untouched rain forest. U.S.-owned duties relating to the prevention, Energy Commission, and Public Utilities Conoco Oil Company is planning removal, abatement, response, contain- Commission. NRDC headquarters is in petroleum development within Ec- ment, and clean-up of oil spills in marine New York City, with branch offices in uador's Yasuni National Park, which waters of the state. Washington, D.C., San Francisco, Los contains among the highest concentra- -The bill also specifies marine safety Angeles, and Honolulu. tion of species on earth, and in the terri- requirements for tankers, barges, and tory of the Woarani people, which marine terminals, and authorizes the MAJOR PROJECTS: "czar" includes some of the last uncontacted to order surprise inspections of In the July/August issue of its tribes in the Amazon. NRDC's efforts tankers and terminals, strict safety plan Newsline newsletter, NRDC reports that have influenced the World Bank to make for refineries, use of radar for tanker there has been more congressional strong environmental conditions part of traffic, and tugboat escorts in hazardous "horse trading" and backroom negotia- a loan to Ecuador that will support the waters. tions over the federal Clean Air Act government-owned oil industry. -SB 2040 also requires oil companies amendments this year than ever before. NRDC's nuclear program recently transporting oil through California The landmark federal statute was enact- revealed the U.S. Navy's plans to equip waters to demonstrate that they have ed in 1970, and has not been amended the newest version of its "Seawolf-class" $500 million worth of oil spill liability since 1977. Efforts to amend it began in fast-attack submarines with a "very high insurance protection. 1981, but have been repeatedly defeated power" prototype nuclear reactor. How- by the auto industry. At this writing, a ever, the Navy has no plans to prepare an conference committee is still attempting environmental impact statement (EIS) to to integrate the Senate and House ver- assess the potential risks of the new reac- NATURAL RESOURCES sions of the long-awaited amendments, tor. The new reactor prototype will be DEFENSE COUNCIL both of which were severely weakened tested at the Knolls Atomic Power Labo- 90 New Montgomery St., Suite 620 while moving through Congress. (See ratory's Kesselring site near Albany and San Francisco, CA 94105 CRLR Vol. 10, Nos. 2 & 3 (Spring/Sum- Schenectady, New York, according to (415) 777-0220 mer 1990) pp. 27-28 and 37 for back- recently declassified congressional testi- ground information.) "Bush's promise mony released by NRDC. The Seawolf The Natural Resources Defense that 'polluters would pay' has gone to submarine reactor would be the first new Council (NRDC) is a nonprofit environ- the graveyard for campaign promises. naval reactor since the Trident subma- mental advocacy organization with a Bush has allowed White House Chief of rine was built in the 1970s. NRDC nationwide membership of more than Staff John Sununu and others to work experts assert that an EIS is essential to 125,000 individuals, more than 38,000 the bill over on behalf of business," publicly establish the level of risk posed of whom reside in California. Since Newsline reported. by the reactor. The containment system 1972, NRDC's western office in San In California, NRDC is one of the for the reactor is clearly not designed to Francisco has been active on a wide primary supporters of "Big Green," the standards required for commercial range of California, western, and nation- Proposition 128 on the November ballot. nuclear reactors, according to NRDC. al environmental issues. Most of that Among other things, the initiative would The group may take legal action to work is now grouped under five subject- ban any pesticide that is known to cause ensure that an EIS is prepared.

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990) PUBLIC INTEREST ORGANIZATION ACTION

NRDC recently denounced an ozone- opments regarding wetlands regulation, determine who receives permits allow- depleting chemical now used in aerosol precondemnation action activity which ing development of wetlands, and by products, known as 1,1,1-trich- drives down land values, rent control, their requirement that property owners cloroethane, or methyl chloroform. A growth control, development fees, and create new wetlands whenever such sites new NRDC report identifies 141 com- the taking of property. are developed. PLF contends that the mon household and office products that Earlier this year, PLF filed an amicus new rules require the agencies to base contain this ozone-destroying chemical, curiae brief in Rooke v. City of Scotts their decision solely on the "values and including spot removers, furniture pol- Valley, in which the Sixth District Court functions of the aquatic resource," and ish, hair sprays, and insecticides. of Appeal upheld the right of private citi- permit the agencies to ignore the poten- NRDC's report is entitled Wanted: For zens to sue for damages when their prop- tial impact on jobs, affordable housing, Destruction of the Ozone Laye, Public erty is "taken" through unconstitutional and food production. Enemy Number 1,1,1. Consumers are regulation. The Rookes were interested In City of Craig v. Reilly, PLF repre- urged to avoid products with methyl in retiring and selling their mobilehome sents two southeast Alaska towns, Craig chloroform. Substitute products with no park in Scotts Valley, California, but and Sitka, whose topography is mostly ozone-depleting chemicals are readily learned that the city had adopted an ordi- boggy areas with grassy vegetation and available, according to the NRDC nance restricting the conversion of rocky slopes. PLF says the EPA/Army report. Copies of the report are available mobilehome parks to other uses. Before Corps rules are too restrictive and all but for $6; also available is an NRDC Earth- allowing a park to go out of business, the destroy any chance the two towns have Action Guide to Saving the Ozone Lay- city required a showing that sufficient for economic growth. PLF also contends er, with a Who's Who supplement on space existed in other parks to accom- that the agencies failed to submit the consumer products containing methyl modate the displaced mobile homes, and rules for public review and comment chloroform-which is only $1. Order the that no low- or moderate-income coach before adopting them. reports through NRDC's national office owners would be affected. According to at40 W. 20th St., New York, NY 10011. PLF, the law's provisions also required a NRDC and Island Press recently payment to coach owners of the full val- released a user-friendly handbook called ue of their mobile homes before a park PLANNING AND Coastal Alert: Ecosystems, Energy, and closure would be permitted. The Rookes CONSERVATION LEAGUE Offshore Drilling. The report exposes files suit in superior court, claiming the 909 12th St., Suite 203 the severe environmental price the U.S. ordinance had the effect of taking their Sacramento, CA 95814 pays for offshore oil drilling, and shows property without compensation in viola- how citizens can and must take action. It tion of the fifth amendment of the U.S. (916) 444-8726 reveals the shortcomings of the nation's Constitution. The trial court agreed, but The Planning and Conservation current energy policy and provides held that the Rookes had no right of League (PCL) is a nonprofit statewide workable solutions in the form of realis- compensation from the city because they alliance of several thousand citizens and tic and achievable energy alternatives. had not exhausted their administrative more than 120 conservation organiza- The report is available for $10.95 remedies or obtained a final ruling that tions devoted to promoting sound envi- through NRDC's San Francisco office. the ordinance would be applied to them. ronmental legislation in California. The Rookes appealed, and PLF filed an Located in Sacramento, PCL actively amicus brief in their behalf. lobbies for legislation to preserve Cali- In a unanimous decision, the Sixth fornia's coast; to prevent dumping of PACIFIC LEGAL FOUNDATION District Court of Appeal affirmed that toxic wastes into air, water, and land; to 2700 Gateway Oaks Dr, Suite 200 the ordinance was unconstitutional, preserve wild and scenic rivers; and to Sacramento, CA 95833 under the test applied by the U.S. protect open space and agricultural land. (916) 641-8888 Supreme Court in Nollan v. California PCL is the oldest environmental lob- CoastalCommission. (See CRLR Vol. 7, bying group in the state. Founded in The Pacific Legal Foundation (PLF) No. 3 (Summer 1987) p. 117 for back- 1965 by a group of citizens concerned is a public interest law firm which sup- ground information on Nollan.) The about uncontrolled development ports free enterprise, private property appellate court reversed the trial court on throughout the state, PCL has fought for rights, and individual freedom. PLF the compensation issue, holding that the two decades to develop a body of devotes most of its resources to litiga- Rookes were entitled to compensation resource-protective environmental law tion, presently participating in 96 cases for the taking of their property and that which will keep the state beautiful and in state and federal courts. no procedural roadblocks should have productive. MAJOR PROJECTS: been permitted to deny the owners of Since its creation, PCL has been Along with the American Law Insti- their right to compensation. active in almost every major environ- tute-American Bar Association Commit- In its summer In Perspectivenewslet- mental effort in California and a partici- tee on Continuing Professional Educa- ter, PLF reported that it recently filed pant in the passage of several pieces of tion, PLF cosponsored "Inverse suit against-the U.S. Environmental Pro- significant legislation, including the Cal- Condemnation and Related Government tection Agency (EPA) and the Army ifornia Environmental Quality Act, the Liability," a land use study course in Corps of Engineers, challenging the fed- Coastal Protection Law, the act creating Atlanta on November 1-3. Numerous eral government's new wetlands regula- the Bay Conservation and Development issues were addressed from the perspec- tion. Earlier this year, the EPA and the Commission, the Lake Tahoe Compact tive of both the property owner and the Corps signed a memorandum of under- Act, the Energy Commission Act, the government. Economic and valuation standing calling for "no net loss" of wet- Wild and Scenic Rivers Act, and laws issues were discussed, along with practi- lands throughout the United States. which enhance the quality of urban envi- cal problems encountered in challenging According to PLF, the agencies' "unreal- ronments. government regulatory actions. Special istic" goal will be met by their applica- PCL is supported by individual and attention was given to new legal devel- tion of a "strict and trying" set of rules to group membership fees, with a current

The California Rei'ulatory Law Reporter Vol. 10, No. 4 (Fall 1990) 4 PUBLIC INTEREST ORGANIZATION ACTION

membership of more than 9,500 individ- be phased out. It includes a $300 million PCL also hopes the voters will uals. PCL established its nonprofit, tax- bond act to acquire ancient forests and approve Proposition 125, which would deductible PCL Foundation in 1971, undertake urban tree planting; and allow local transit agencies to use some which is supported by donations from addresses air quality by prohibiting fur- of their gas tax money for rail equipment individuals, other foundations, and gov- ther production of chlorofluorocarbons as well as for track and right-of-way ernment grants. The Foundation special- (CFCs), which are destroying the ozone improvements. One of the greatest izes in research and public education layer. The measure calls for rapid reduc- obstacles to improved rail transportation programs on a variety of natural tion in the amount of carbon dioxide and is the current lack of equipment, accord- resource issues. It has undertaken sever- other chemicals produced in California, ing to PCL. al major projects, including studies of in an attempt to reduce the greenhouse the California coast, water quality, river effect. Proposition 128 would also estab- recreation industries, energy pricing, lish a fund of $500 million to enable a PUBLIC ADVOCATES land use, the state's environmental bud- quick response to offshore oil spills; 1535 Mission St. increase recycling; require improvement get, and implementation of environmen- San Francisco,CA 94103 tal policies. of water quality; and create a statewide office to enforce environmental laws. (415) 431-7430 MAJOR PROJECTS: In an attempt to defeat Proposition PCL's September 1990 California Public Advocates (PA) is a nonprofit 128, the petrochemical industry has public interest law firm concentrating on Today newsletter presented an overview placed its own deceptive measure on the of the environmental measures appear- the areas of education, employment, ing on the November 6 ballot, including ballot-Proposition 135, which environ- health, housing, and consumer affairs. Proposition 128 ("Big Green"), Proposi- mentalists call "Big Brown." It would PA is committed to providing legal rep- tion 130 ("Forests Forever"), and the rewrite and restate weak existing pesti- resentation to the poor, racial minorities, rival, industry initiatives placed on the cide laws, and prohibit the legislature the elderly, women, and other legally ballot to supersede the environmental from amending them by less than a two- underrepresented groups. Since its measures if they get more votes. thirds vote. Proposition 135 does noth- founding in 1971, PA has filed over 100 PCL staff worked hard all summer on ing to eliminate cancer-causing pesti- class action suits and represented more the campaign to win passage of Proposi- cides, according to PCL. than 70 organizations, including the tion 130. According to California Today, PCL urges a "yes" vote on Proposi- NAACP, the League of United Latin Proposition 130 would completely tion 134, the alcohol tax increase initia- American Citizens, the National Organi- rewrite California forestry law by pro- tive. Revenue raised from Proposition zation for Women, and the Gray Pan- hibiting clearcutting of ancient forests, 134 would be spent on alcohol-related thers. requiring sustainable forestry by man- law enforcement, life support for victims dating restocking of cut-over land, and of drunk drivers, and alcohol abuse pre- MAJOR PROJECTS: banning logging too close to rivers and vention and treatment programs. PCL Public Advocates' summer 1990 streams. It would also authorize more and the California Parks and Recreation newsletter reports that up to six million than $700 million in bonds to acquire Society worked to include funding of Californians drive without insurance, ancient redwood and other forests about $16 million per year for local park despite the state's mandatory auto insur- throughout the state. districts if Proposition 134 passes. These ance law. This is due largely to auto Timber interests decided to attempt to funds will be used to help park districts insurance costs that often exceed one- trick the voters into defeating Proposi- cover costs of alcohol-related vandalism quarter of a low-income family's take- tion 130 by spending hundreds of thou- and law enforcement problems. Alcohol home pay. On behalf of fifteen low- sands of dollars in order to place their abusers cause most of the vandalism in income, minority, and consumer groups, own counterfeit measure on the bal- public parks, amounting to millions of including the California Council of lot-Proposition 138, which environ- dollars per year. The California alcohol Urban Leagues, the League of United mentalists have dubbed "Big Stump." If tax has not been increased since 1933, Latin American Citizens, and Consumer it receives more votes than Proposition and is only about one cent per gallon. Action, PA is trying to end the auto insurance affordability crisis through a 130, "Big Stump" will lock into place The alcohol industry, realizing there is inadequate existing forestry laws and strong public support for a tax increase, series of interrelated actions: (1) PA is working to develop an allow huge timber companies to gain a persuaded the legislature to place Propo- affordable auto insurance policy for permanent right to destroy forestlands sition 126 on the ballot, which would with outdated logging practices. Propo- $180 per year. Major insurance compa- raise alcohol taxes by less than one- nies have admitted the viability of such a sition 138 claims to stop clearcutting, fourth the amount as would Proposition but PCL says it actually allows all but a proposal, and Senator Robert Presley 134. The alcohol industry is also heavily and Assemblymember Pat Johnston plan single tree to be cut in a particular area, financing Proposition 136, which would and in one year the cutters may return to to sponsor the no-frills insurance bill invalidate Propositions 128 and 134 take that last tree! PCL said the timber next year. A similar bill-AB 354 (John- industry will spend whatever it thinks (among others) by requiring tax increase ston)-failed earlier this year, but will be necessary to defeat Proposition 130 and initiatives to pass by a two-thirds vote of sponsored again next year by the public pass Proposition 138-possibly $10 mil- the electorate. interest groups. (See CRLR Vol. 10, No. lion or more. PCL supports Proposition 137, which 1 (Winter 1990) p. 32 for background PCL also supports Big Green, largely would require voter approval of any information.) out of frustration from trying and failing major changes in the state initiative pro- (2) The Insurance Commissioner to pass legislation regulating the use of cess. Proposition 137 would remove recently began "redlining" hearings to pesticides. Proposition 128-the Envi- from the legislature the ability to investigate PA's charges that many insur- ronmental Protection Initiative of radically weaken the right of the people ance companies refuse to sell insurance 1990-would require all pesticides to make laws through the "direct democ- in the inner city and discriminate in the known to cause cancer or birth defects to racy" initiative process. services they provide to minorities.

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990) PUBLIC INTEREST ORGANIZATION ACTION

(3) PA initially succeeded in blocking because insurers continue their refusal to coordinates training events and user the insurance industry's effort to double provide 20% good driver discounts man- group meetings, and serves as a clearing- the cost of California Automobile dated by Proposition 103. house for information shared by public Assigned Risk Plan (CAARP) insurance, SB 2868 (Petris), the universal health interest attorneys. and continues its participation in an insurance bill supported by PA, died on PIC's biweekly Public Interest ongoing administrative proceeding on the Assembly floor on August 28. (See Employment Report lists positions for a the issue. (See CRLR Vol. 10, Nos. 2 & CRLR Vol. 10, Nos. 2 & 3 (Spring/Sum- variety of national, state, and local pub- 3 (Spring/Summer 1990) pp. 39 and 141, mer 1990) p. 38 for background infor- lic interest organizations, including and Vol. 10, No. 1 (Winter 1990) pp. 32 mation.) Assemblymember Burt Mar- openings for attorneys, administrators, and 108 for background information; see golin attempted to revive the health paralegals, and fundraisers. There is no also related information below for an insurance issue in August with a charge for listing jobs in the employment update on the CAARP issue.) "blueprint" for a consensus health insur- report. A job resource library at PIC's (4) In a recent Department of Insur- ance solution. But that effort failed, office is available to employment report ance administrative hearing, PA helped unable to overcome opposition from subscribers and to the general public. convince the Commissioner to adopt powerful special interests. Activists said PIC's public interest law program at regulations ending territorial rating, a the failure of the legislature to pass a the four sponsoring law schools helps discriminatory system in which the cost universal health insurance bill guaran- prepare students to be effective advo- of auto insurance is based on the policy- tees that initiatives on this issue will cates for the poor and other disadvan- holder's zip code rather than driving appeal on the 1992 ballot. The Health taged members of society. A project record. The regulations are being Access Coalition, of which PA is a lead- known as "PALS"-the Public Interest challenged by the insurance industry. ing member, will attempt to qualify a Attorney-Law Student Liaison Pro- (5) PA has just completed a five- Canadian-style health insurance initia- gram-matches interested law students month administrative proceeding chal- tive under which the government would with practitioners in the field for infor- lenging the discriminatory practices of bear the cost of health care for everyone. mal discussions about the practice of the insurance industry. Nearly one hun- According to Health Access, nothing law. dred insurance industry lawyers opposed short of the threat of an initiative will PIC's Academic Project promotes PA's position, especially PA's contention push the special interests-particularly and facilitates the interaction of law that rate increases should bc denied doctors, hospitals, and insurance compa- school faculty and legal services attor- when insurance companies refuse to nies-to negotiate on legislation. neys in furtherance of law in the public serve all segments of the community. interest. Faculty members assist practic- On September 19, during the penden- ing attorneys with legal services cases, cy of an administrative hearing on the and staff attorneys help faculty with insurance industry's request for a 160% PUBLIC INTEREST research and course materials. increase in CAARP rates, Insurance CLEARINGHOUSE PIC publishes the Directory of Bay Commissioner Roxani Gillespie granted 200 McAllister St. Area Public Interest Organizations, an "interim" 85% rate increase in San Francisco,CA 94102-4978 which lists over 600 groups and informa- CAARP insurance. PA senior attorney tion on their services and fees. PIC also Robert Gnaizda (415) 565-4695 immediately blasted the publishes Public Interest, PrivatePrac- action, saying, "This will basically The Public Interest Clearinghouse tice, which lists over 250 for-profit law throw out all low- and moderate-income (PIC) is a resource and coordination cen- firms which devote a substantial portion drivers from the plan." CAARP directors ter for public interest law and statewide have requested an increase of 160%. of their legal work to the public interest. legal services. PIC is partially sponsored PIC publishes the Public Interest Consumer advocates said the 85% by four northern California law schools: increase is a backdoor measure that Advocate, a newsletter of its public inter- Hastings School of Law, University of est law program. The newsletter allows the insurance industry to nearly prints Santa Clara School of Law, Golden Gate information on part-time and double CAARP rates without a public summer School of Law, and University of Cali- positions available to law students. It is hearing. Gnaizda said the rate hike will fornia at Davis School of Law. The sharply increase the number of unin- published August through April for law Clearinghouse is also funded by the Cal- students in northern California. Listings sured drivers, and the situation will ifornia Legal Services Trust Fund and a worsen when the state law requiring all are free and must be received by the subgrant from the Legal Services Corpo- tenth of the month. drivers to show proof of insurance when ration. stopped for traffic violations expires on Through the Legal Services Coordi- MAJOR PROJECTS: January 1. Gnaizda warned that CAARP nation Project, PIC serves as a general As one component of its Legal Ser- is about to disintegrate, but could sur- resource center for all legal services pro- vices Coordination Project, PIC has been vive without any rate increase if the grams in California and other states in assisting in coordinating the bimonthly Plan's governing board were to crack the Pacific region. Services include meetings of the California/Nevada Pro- down on fraud and reduce expensive information on funding sources and reg- ject Directors Association. At the executive salaries. CAARP was created ulations, administrative materials, and August meeting, held in conjunction in 1947 for drivers with bad records who coordination of training programs. with the State Bar's annual meeting, the could not obtain insurance in the open or PIC's Public Interest Users Group project directors spent a considerable voluntary market. The state requires (PUG) addresses the needs of computer amount of time addressing proposals every insurance company to write a users in the public interest legal commu- from the Projects Advisory Group's share of policies at controlled rates for nity. Members include legal services (PAG) Funding Criteria Committee the assigned risk plan. Many good programs in the western region of the (PAG is a Washington, D.C. advocacy drivers-up to half the drivers insured United States, State Bar Trust Fund group that tracks legislation and is part by CAARP-resort to the plan due to recipients, and other professionals in of PIC's information network). The pro- high market rates where they live, and various stages of computerization. PUG posals raised a number of possible ways

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990) t PUBLIC INTEREST ORGANIZATION ACTION I

to deal with the impact of the federal recruit law students and new lawyers. Club's political action committee, which census on local legal services programs. The program is making a significant endorses candidates and organizes vol- PIC's Legal Services Coordination impact on the career choices of law stu- unteer support in election campaigns. Project also offers support for the litiga- dents who wish to pursue public service The Sierra Club maintains national tion directors and the administrators careers but lack the support, encourage- headquarters in San Francisco, and oper- associations; publishes a bimonthly ment, or knowledge required to prepare ates a legislative office in Washington, Legal Services Bulletin and monthly cal- for and locate public interest employ- D.C., and regional offices in several endar of events; offers ongoing technical ment. cities including Oakland and Los Ange- assistance; and coordinates preparation PIC reports that 425 subscribers now les. of intake forms and other materials for use its Public Interest Employment Ser- legal services programs. The monthly vice, which serves both job seekers and MAJOR PROJECTS: Legal Services Bulletin includes up-to- public interest organizations that lack On September 18, the California date information about developments recruitment budgets and need employees Sierra Club endorsed former San Fran- affecting legal services programs, and with a social commitment and special- cisco Mayor Dianne Feinstein for gover- State Bar Trust Fund activities. The ized skills. The employment service nor. At the same time, the Club praised Legal Services Events Calendar is offers a biweekly listing of jobs in legal the environmental record of Feinstein's mailed to all legal services programs and services and other public interest areas, opponent, U.S. Senator Pete Wilson. lists meetings, conferences, fundraising including legal and administrative staff Sierra Club Chair Dan Sullivan said it events, training sessions, and other positions. It is free to employers and is was a tough decision for the group events of interest to the legal services distributed to at least fifty law schools because both candidates had been "good community. The deadline to include list- across the nation. The service also friends on a number of issues." Accord- ings is the third week of the month. includes a reference library and work- ing to Sullivan, "Dianne Feinstein is PIC has hired a new Computer Pro- shops for job seekers. A reference file is simply the stronger of the two candidates ject coordinator. Ellen Rinehart replaces maintained on each legal services pro- on the issues that will confront Califor- David Goldsmith, who is now working gram to help educate job seekers. The nia during the next administration." directly with HandsNet (the parent orga- Project Coordinator helps organize an A major factor in the endorsement nization of LegalAid/Net). Ellen will annual public interest job fair for north- was Feinstein's support of Proposition devote her computer support, teaching, ern California law students. 128, also known as "Big Green," on the and other experience to developing On November 28, PIC celebrated its November ballot. Sierra Club is one of LegalAid/Net and to expanding PIC's eleventh anniversary with an event at the major backers of Proposition 128, computer-related support for legal ser- Hastings College of the Law in San and Wilson opposes it. The Club's vices programs on the west coast. Francisco, which included a buffet din- endorsement required a two-thirds vote PIC has recently published the first ner and a short program. of its 64-member conservation commit- edition of Client Video Catalog, a com- tee and its 11-member statewide execu- prehensive listing of videotapes that can tive committee. be used by legal aid programs to educate U.S. Senator Alan Cranston's Cali- clients about their rights and inform fornia Desert Protection Act (S. 11) was them on the basics of the legal process. SIERRA CLUB stalled in the Senate Energy and Natural The catalog is free to California/Nevada Legislative Office Resources Committee on September 26. legal aid programs and is available for 1014 Ninth St., Suite 201 S. I I has been a top priority of the Sierra $10 to all others. Sacramento, CA 95814 Club, which last year accused Senator Public Interest, Private Practice (for- Pete Wilson of responsibility for block- merly known as the Directory of Public (916) 444-6906 ing the measure. The Desert Protection Interest Law Firms in Fifteen Northern The Sierra Club has 185,000 Act would create a new Mojave National California Counties) has been totally members in California and over 530,000 Park of 1.5 million acres; designate 4.4 revised, expanded, and updated for its members nationally, and works actively million acres of desert as permanent second edition, and is now available for on environmental and natural resource wilderness; and expand Joshua Tree and $10 ($7 to legal aid programs, PIC mem- protection issues. The Club is directed Death Valley National Monuments into bers, and law students enrolled in PIC's by volunteer activists. national parks. (See CRLR Vol. 10, Nos. Public Interest Law Program). The new In California, Sierra Club has thirteen 2 & 3 (Spring/Summer 1990) p. 40 and edition contains over 250 listings of pri- chapters, some with staffed offices. Sier- Vol. 9, No. 4 (Fall 1989) p. 26 for back- vate public interest-oriented law firms ra Club maintains a legislative office in ground information.) Cranston accused from Monterey to Sacramento. Sacramento to lobby on numerous state Wilson, who has opposed the measure Over 400 students are now enrolled issues, including toxics and pesticides, for the past three years, of mastermind- in PIC's Public Interest Law Program, air and water quality, parks, forests, land ing a procedural tactic to prevent the with a 20% increase expected next year. use, energy, coastal protection, water committee from voting on S. 11. Even The program prepares students for development, and wildlife. In addition to though Wilson was campaigning in Cali- careers in public service through a com- lobbying the state legislature, the Club fornia, Cranston said Wilson asked Sen- bination of coursework, counseling, and monitors the activities of several state ator James McClure (R-Idaho) to pro- work on public interest projects. The agencies: the Air Resources Board, pose the maneuver that blocked the vote program's monthly Advocate newsletter Coastal Commission, Department of on S. 11. The companion bill in the provides updates of interest to students Health Services, Parks Department, and House, H.R. 780 by Representative Mel and information on jobs in legal services Resources Agency. The Sacramento Levine (D-Santa Monica), was held up and other public interest agencies. This office publishes a newsletter, Legislative in the House Interior Committee last project places PIC directly in touch with Agenda, approximately fifteen times per spring. law school faculties and students, and year. The Sierra Club Committee on Environmentalists are disturbed that can be of assistance to those seeking to Political Education (SCCOPE) is the S. 1224 (Bryan, D-Nevada), which

The California Reaoi' torv I -w l-wt- Vol II ,IA (F-11 1"-) PUBLIC INTEREST ORGANIZATION ACTION

would increase federal vehicle mileage ter 1097, Statutes of 1990). The bill adds requirements, was signed by the Gover- standards, was defeated by only three valuable improvements to the California nor on September 30. votes on the Senate floor on September Surface Mining and Reclamation Act. -AB 3749 (Sher) would have encour- 25. Sierra Club and other major conser- Some of the provisions added by AB aged recycling of waste motor oil by vation groups had been strongly backing 3551 include: establishing a nickel-a-quart deposit on the bill to increase fuel efficiency stan- -the preparation of mandatory envi- all oil sold in the state. The bill, which dards on new cars from the current 27.5 ronmental impact reports prior to contained incentives for large retailers miles per gallon to 40 mpg by 2001. approval of any open-pit mining opera- and oil users to become collection cen- Both the auto industry and the Bush tion which uses the cyanide heap-leach ters for the general public, was vetoed on administration lobbied heavily against process for producing gold; September 30. the bill, and President Bush threatened -financial assurances maintained by The Club endorsed passage of Propo- to veto the bill if it passed. The fuel effi- the mine operator must be adequate to sition 149 on the November ballot. The ciency provisions had been included in cover the costs of mine reclamation; measure, known as the California the still-pending federal Clean Air Act -at least one inspection annually is Wildlife, Park, Recreation, Coastal and amendments, but were decoupled from required for every mining operation, and Museum Bond Act of 1990, would that legislation last spring in return for a mining inspectors are subject to conflict finance $437 million worth of acquisi- promise from congressional leaders for of interest requirements; tion and development of local and state floor action before the end of this year's -authorization for administration civil parks and wildlife habitat. session. penalties of up to $5,000 per day for vio- Sierra Club and other proponents lations of the Act; and were surprised that the bill failed on a -authorization for the issuance of procedural vote because it had received cease and desist orders by local govern- TURN (TOWARD UTILITY strong backing at the onset of the Persian ments or the state to enjoin the continued RATE NORMALIZATION) Gulf crisis. Supporters said the proposed operation of any mine which poses a 625 Polk St., Suite 403 fuel efficiency standards are needed to threat to public health or the environ- San Francisco,CA 94102 reduce U.S. dependency on foreign oil, ment. (415) 929-8876 and that the better standards could save Several other bills supported by Sier- the United States 2.8 million barrels of ra Club recently passed the legislature, Toward Utility Rate Normalization oil per day. More than 40% of U.S. fossil with the following results: (TURN) is a nonprofit advocacy group fuels are consumed by motor vehicles. -SB 1905 (Hart), which would have with approximately 50,000 members Sierra Club activist Daniel Becker instituted a program called the Demand- throughout California. About one-third denounced Senator Wilson for failing to Based Reduction in Vehicle Emissions of its membership resides in southern fulfill a commitment to vote to cut off (Plus Reductions in Carbon Monoxide) California. TURN represents its mem- debate and move the matter to a floor (or "DRIVE Plus") program, increased bers, comprised of residential and small vote. Wilson was in California cam- the state sales tax on new vehicles which business consumers, in electrical, natural paigning for governor. produce more pollutants than average, gas, and telephone utility rate proceed- In California, the Club supported AB and decreased the sales tax on cleaner ings before the Public Utilities Commis- 1490 (Sher), which was signed by the vehicles, was vetoed on September 30. sion (PUC), the courts, and federal regu- Governor on August 29 (Chapter 1274, -SB 1770 (McCorquodale) would latory and administrative agencies. The Statutes of 1990). The bill establishes a have established a regional air quality group's staff also provides technical processing fee to be paid by glass manu- advice to individual legislators and leg- facturers, representing the difference management district covering the entire San Joaquin Valley, unless individual islative committees, occasionally taking between the actual costs incurred by positions on legislation. TURN has recycling centers and the amount of counties form their own regional or uni- fied district which meets the bill's strict intervened in about 200 proceedings scrap value being paid in the open mar- since its founding in 1973. ket. The bill contains a key market criteria. This bill was vetoed on Septem- development provision entitling contain- ber 30. MAJOR PROJECTS: er makers who use California recycled -SB 1817 (Roberti), which would In late August, TURN petitioned the glass in their production process to a have established a program for reducing PUC to immediately eliminate the rebate of their processing fee. This will toxic discharges into the air, and monthly charge for touch-tone service create more demand for recycled glass. required polluters which air districts from telephone bills. A year ago, the determine are posing serious health risks PUC said it would eliminate the charge AB 2622 (Eastin) was also signed, and "sometime in 1990," will increase the market for recycled to prepare a pollution prevention plan for but TURN said the glass by requiring all glass containers reducing the use of toxic chemicals, was present schedule will not require phone sold in the state to be made from a cer- vetoed on September 29. companies to drop the touch-tone charge tain percentage of recycled glass, start- -AB 3783 (Campbell) would have until mid-1991. "Now that the phone ing with 25% by 1993 and increasing to raised penalty fines for violators of air companies have the reduced regulation 70% by 1999. AB 3050 (Margolin), pollution control laws. Fines would have they want, the PUC is stalling on deliv- another recycling bill supported by the been increased to new maximum penal- ery of the consumer benefits it promised Club, died in the Senate Committee on ties of $5,000, $10,000, and $50,000, when regulatory oversight was relaxed National Resources and Wildlife. The with additional fines for repeat viola- last October," said TURN executive bill would have expanded the state bev- tions. This bill was vetoed on September director Audrie Krause. (See CRLR Vol. erage container recycling program to 30. 10, No. 1 (Winter 1990) p. 151 for back- include wine and liquor bottles. -AB 2766 (Sher), which allows air ground information on the PUC's new Assemblymember Byron Sher's AB pollution control districts to raise motor regulatory framework for telecommuni- 3551, supported by Sierra Club, was. vehicle registration fees up to $4 to cations.) In its petition, TURN argued signed into law on September 19 (Chap- implement California Clean Air Act there is no reason to delay elimination of

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touch-tone charges, since the phone 92% of the respondents said businesses price with its suppliers sometime in the companies are able to monitor any lost should not be allowed to use the technol- near future. revenue through a balancing account. ogy to record a caller's phone number. In TURN's summer newsletter, the On May 17, TURN filed a petition TURN's Audrie Krause said the ratepay- group reported that as a result of its with the state Supreme Court, challeng- ers financed the research that led to the efforts, residential customers will ing the sweeping changes in local tele- new phone company products, but it is receive a larger share of a $144 million phone company regulation ordered in the stockholders who will benefit now. refund recently ordered by the PUC. The October 1989 by the PUC in its "alterna- She said that public officials appointed refund was part of a settlement in a case tive regulatory framework" proceeding. to safeguard consumers from greedy in which the Commission staff alleged (See CRLR Vol. 9, No. 4 (Fall 1989) p. monopolies are "asleep at the switch." that PacBell spent too much money on 27 for background information.) TURN supported AB 3691 (Moore), modernizing its facilities. TURN argued TURN's petition asks the court to review the "Ratepayer Bill of Rights," which that residential customers paid for most and reverse the regulatory changes. successfully passed the legislature. of the unnecessary modernization and TURN took the matter to court because According to TURN, AB 3691 repre- should be given back a larger share of the PUC denied a rehearing on its deci- sented an important advance in safe- the refund; the PUC agreed. Under the sion. According to TURN attorney Mark guarding residential phone customers settlement, PacBell will reduce its rates Barmore, the new regulatory framework from the ravages of deregulation. Under by $36 million per year for the next four fails to set just and reasonable rates for the bill, consumers would have been years. An outside consultant will review services as required by state law, guaranteed the right to basic telecommu- the company's investment decision pro- because the regulations relegate nications service, including touch-tone cess and suggest possible improvements ratemaking to a set of formulas which service at affordable rates; access to to the utility. (See CRLR Vol. 10, No. I ignore the cost of providing service. information service providers; a free (Winter 1990) p. 151 for background According to TURN, the PUC's decision directory of local telephone numbers information.) rejected decades of cost-of-service served by the franchised local exchange ratemaking and ordered the two largest phone company; knowledge of the sell- phone companies to base all future rate er's identity before contracting for or changes for basic service on a govern- purchasing a telephone service; knowl- UCAN (UTILITY CONSUMERS' ment inflation index, adjusted for an edge of telephone service options; ACTION NETWORK) assumed increase in productivity of knowledge of the relevant rates, charges, 4901 Morena Blvd., Suite 128 4.5%. The formulas took effect on Jan- terms, and conditions before contracting uary 1, but TURN said the much-touted for or purchasing telephone service(s); San Diego, CA 92117 consumer benefits also ordered by the privacy of usage and billing data; a regu- (619) 270-7880 PUC-including free touch-tone ser- latory process they understand and in vice-have yet to materialize. which they may participate; reasonable Utility Consumers' Action Network TURN Executive Director Audrie service quality standards; complaint dis- (UCAN) is a nonprofit advocacy group Krause said the formulas could easily position processes, through the telecom- supported by 52,000 San Diego Gas and lead to windfall profits for Pacific Bell munications service provider and Electric Company (SDG&E) residential and General Telephone; she expressed through the PUC, which are fair, expedi- and small business ratepayers. UCAN special concern about another of the tious, understandable, and not costly to focuses upon intervention before the approved formulas which determines the customer; and access to a live opera- California Public Utilities Commission how and when excess profits are to be tor within a reasonable time period when (PUC) on issues which directly impact shared between customers and stock- dialing operator assistance. However, San Diego ratepayers. UCAN also holders. Rate case proceedings with Governor Deukmejian vetoed AB 3691 assists individual ratepayers with com- written testimony, formal discovery, and on September 30. plaints against SDG&E and offers its cross-examination no longer exist under According to TURN, its participation informational resources to San Diegans. the new system, according to TURN. in Pacific Gas and Electric Company's UCAN was founded in 1983 after The Supreme Court is not expected to (PG&E) recently-concluded Annual receiving permission from the PUC to rule on the petition until at least Novem- Cost Allocation Proceeding has helped place inserts in SDG&E billing packets. ber 1990. to save gas customers at least $100 mil- These inserts permitted UCAN to attract In July, a statewide survey of TURN lion. PG&E had asked the PUC to raise a large membership within one year. The members revealed strong consumer its rates by $143 million, but TURN insert privilege has been suspended as a opposition to "Caller ID" and other new argued against the increase. The PUC result of a United States Supreme Court phone technologies-primarily due to agreed with TURN and granted only a decision limiting the content of such concerns over loss of privacy. The sur- $47.8 million increase for residential inserts. vey was mailed to 21,000 of TURN's customers. TURN also helped to defeat a UCAN began its advocacy in 1984. 52,000 members; more than 4,000 peo- $3 per month "customer charge" recom- Since then, it has intervened in ple responded, for a 19% response rate. mended by the Commission staff. And SDG&E's 1985 and 1988 General Rate An overwhelming 84% of those TURN argued for a less drastic reduction Cases; 1984, 1985, 1986, and 1989 responding to TURN's survey indicated in baseline rates, which PG&E wanted to Energy Cost Adjustment Clause pro- they would not purchase Caller ID if the decrease by 50%. The "baseline rate" is ceedings; the San Onofre cost overrun service were available. Over 73% said an initial amount of energy which can be hearings; and SDG&E's holding compa- telephone companies should not be purchased at a lower rate. The PUC ny application. In 1989, UCAN partici- allowed to sell Caller ID. TURN said the granted only a 20% reduction. Finally, pated in two rate adjustment proceedings survey also revealed strong consumer TURN also helped convince the Com- in which SDG&E was granted increases opposition to the use of Caller ID by mission to stop forecasting price increas- for energy costs, rate of return, and infla- businesses to record customer phone es for natural gas in situations where the tion. Since the fall of 1988, UCAN has numbers for marketing purposes. Nearly utility will actually be negotiating a new been challenging the proposed takeover

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of SDG&E by Southern California Edi- lution and drive up energy rates for pur- paign against the merger directed at the son Company (SCE). chase of independent power. five members of the PUC. UCAN hopes The Attorney General's brief against the strong showing of public opinion MAJOR PROJECTS: the merger supports UCAN's contention against the merger will tip the scales UCAN's challenge to the proposed that the deal will be bad for competition. against the merger in the Commission- takeover of SDG&E by SCE entered a Attorney General John Van de Kamp's ers' deliberations. final phase with the end of the PUC brief said customer rates would increase merger hearings on August 4. The pro- by over $200 million in the '90s and ceedings lasted for three months, while $3.1 billion over the next thirty years. the regulatory process in the merger case The AG's brief said the merger would be began about two years ago. In mid-July, detrimental to ratepayers, stockholders, the PUC approved a request by the two investors, and the public; and that no utilities to wrap up the hearings earlier post-merger operating conditions the than planned-ostensibly so that the PUC might impose could correct the Commission would be able to complete problem. "The proposed merger would the process and make a final decision in cause demonstrable and substantial harm the case by December 31, when the to utility customers, industry terms of several commissioners are set competi- tion, the environment, and to to expire. UCAN and other merger local com- munities while providing no net benefit opponents complained that the early clo- to ratepayers....The only appropriate sure of the proceedings would place step them at a disadvantage because there is to deny the merger application and ter- was not sufficient time to complete minate the proceedings," the Van de cross-examination of utility witnesses. Kamp brief stated. Other parties joining UCAN in UCAN's final brief, filed on Septem- protesting the compression of the hear- ber 10, emphasized that state law pre- ings were the City of San Diego, Attor- vents the PUC from approving the merg- ney General John Van de Kamp, and er without the co-approval of cities state Senator Herschel Rosenthal. They holding franchise agreements with warned that an early end to the process SDG&E in its service territory. Past could negate any PUC decision if a court legal cases researched by UCAN indi- later determines that due process was cate that the PUC must honor any con- denied or procedural errors were com- tracts made between a utility and charter mitted. Even the PUC's Division of cities. San Diego and other cities' fran- Ratepayer Advocates (DRA) com- chise agreements with SDG&E prohibit plained about the stress imposed by the franchise transfers to other parties with- accelerated schedule. out permission from the cities, UCAN's On September 1I, DRA-in a 400- brief asserted. "The PUC is required by page brief-recommended that the the state Constitution to honor the con- Commission reject the proposed SCE- tracts that have been executed by SDG&E merger. DRA said Edison's SDG&E," said UCAN Executive Direc- "promise" of a 10% reduction in rates tor Michael Shames. "A decision cannot for SDG&E customers is nothing more be made on the merger until either the than a public relations game. Edison's state courts have resolved the contract higher rates would mean an increase in dispute between SDG&E and the City of SDG&E's rates to comply with a legally San Diego, or the cities in the SDG&E mandated equalization in rates over the service area approve the transfer of the service areas of the combined entity, the franchises to Edison." UCAN's 130- DRA emphasized. "We are resolute that page brief also attacked the proposed the proposed merger is not good for merger as anticompetitive and too costly ratepayers, and it goes directly against for SDG&E and Edison ratepayers. Commission policies for a more compet- Earlier this year, the City of San itive structure in the electric industry," Diego filed suit in superior court to said DRA Director Ed Texeira. "The enforce its franchise contract. The case merger runs against what the San Diego is not expected to be heard until 199 1. In region seems to want, so why force a June, a judge approved SCE's request to bad deal on an agitated populace?" he move the case to a more "neutral" loca- argued. The DRA staff of utility ana- tion (possibly San Francisco or Sacra- lysts, engineers, and lawyers told the mento), where there would be fewer Commission there is no real prospect "preconceived notions" about the merg- that Edison can make good on its claim er. UCAN's Michael Shames accused of $1.7 billion in savings to ratepayers Edison of attempting to force San Diego with the merger. DRA said no to drop its suit with the change of venue economies of scale will result from the tactic. Shames said SCE is using the merger, and that the takeover might threat of a lengthy delay in the trial to mean bureaucratic bloat and could foster put the city in a difficult position. incremental inefficiencies. The DRA In September, UCAN organized a brief said the merger could increase pol- major letter-writing and call-in cam-

The California Regulatory Law Reporter Vol. 10, No. 4 (Fall 1990)