California access to a fair and efficient -SB 941 would deprive accident vic- tims of their current right to full civil Each regulatory agency of system of justice. redress and a jury trial, and require vic- California government hears In 1988, AJF and its campaign com- from those trades or industries it mittee-the Voter Revolt to Cut Insur- tims to subsidize those who caused their respectively affects. Usually ance Rates-sponsored and qualified injuries; and organized through various trade Proposition 103, the only one of four -an intrusive, time-consuming, and associations, professional lobby- competing insurance reform initiatives bureaucratic claims procedure would ists regularly formulate positions, approved by the electorate in the encourage abuse by insurers, particularly draft legislation and proposed November 1988 election. for those consumers who lack the means rules, and provide information as AJF publishes a bimonthly report, or ability to navigate and negotiate its part of an ongoing agency rela- Citizens Alliance, on citizens' rights intricate procedures. tionship. These groups usually issues and actions at the local, state, and Voter Revolt Chair Harvey Rosen- federal levels. Legislative, judicial, and focus on the particular agency field said the insurance industry is "up to overseeing a major aspect of their administrative activities which impact its old tricks-albeit with clever new business. The current activities of on the public justice system and the packaging designed to entrance con- these groups are reviewed as a exercise of citizens' rights are a major sumers burdened by high insurance part of the summary discussion of focus of the organization's research and rates. It is trying to enrich itself and deny each agency, infra. educational activities. AJF is funded by consumers the reforms of Proposition There are, in addition, a num- grants and individual memberships. 103...." He emphasized that voters ber of organizations which do not MAJOR PROJECTS: rejected no-fault insurance when they represent a profit-stake interest in Once again, the debate over automo- approved Proposition 103 in November regulatory policies. These organi- bile insurance in California has polarized 1988. zations advocate more diffuse the state's public interest community and At a Voter Revolt headquarters news interests-the taxpayer, small paralyzed the legislature. In mid-May, conference on May 20, renowned con- business owner, consumer, envi- Voter Revolt was joined by the Southern sumer advocate Ralph Nader denounced ronment, future. The growth of Christian Leadership Conference, the no-fault insurance legislation as "a cruel, regulatory government has led Chicano Correctional Workers Associa- anti-consumer power play by insurance some of these latter groups to tion, and other groups in opposing SB companies...." He said the plan includes become advocates before the reg- 941 (Johnston), the proposed no-fault fewer benefits than the no-fault insur- ulatory agencies of California, insurance legislation supported by Gov- ance systems in Michigan and New often before more than one agen- ernor Wilson, the insurance industry, York. Nader urged Californians to con- cy and usually on a sporadic Consumers Union, Public Advocates, tact their legislators and insist that they basis. and other consumer and ethnic organiza- vote against SB 941, and unite behind Public interest organizations tions. (See infra reports on CON- full implementation of Proposition 103. vary in ideology from the Pacific SUMERS UNION and PUBLIC ADVO- He warned the public that "if the insur- Legal Foundation to Campaign CATES for related discussion.) Voter ance industry succeeds in shifting atten- California. What follows are Revolt warned Californians not to be tion from Proposition 103 to no-fault, brief descriptions of the current misled by the insurance industry's multi- Californians will never see 103's roll- projects of these separate and million dollar advertising campaign to back and other reforms." He noted that diverse groups. The staff of the muster support for SB 941. Voter Revolt SB 941's $220-per-year price tag is Center for Public Interest Law said the ad campaign's slick mailers and deceptive because drivers would need has surveyed approximately 200 newspaper ads do not identify the insur- additional coverage to protect against such groups in California, direct- ance industry as the source and sponsor. lawsuits allowed by SB 941 in cases of ly contacting most of them. The Voter Revolt and the anti-no-fault serious or permanent injuries. Further, following brief descriptions are coalition argue that SB 941 is an attempt he asserted, SB 941 is not indexed for only intended to summarize their to evade implementation of Proposition inflation; thus, benefits would decline activities and plans with respect 103. It released a 15-page analysis of the each year. At the news conference, Nad- to the various regulatory agencies legislation, which concluded that: er released a letter he had sent to Senate in California. -SB 941 would lead to immediate Judiciary Committee Chair Bill Lockyer increases in insurance premiums for in response to a request for Nader's most Californians, and provides no long- stand on no-fault. In the letter, Nader term price protection to low- and called for full implementation of Propo- moderate-income policyholders; sition 103 and additional insurance ACCESS TO JUSTICE -the bill permits insurers to shift the reforms: FOUNDATION costs of auto accident claims to taxpay- -a low-cost, lifeline auto insurance er-supported programs and to health policy available to all who need it-with 3325 Wilshire Blvd., Suite 550 insurance premiums paid by consumers Los Angeles, CA 90010 full tort-law protections, eliminating the and businesses; uninsured motorist problem; (213) 383-9618 -it undermines Proposition 103 by limiting the regulatory authority and -establishment of a permanent con- Access to Justice Foundation (AJF) is accountability of the Insurance Commis- sumer advocacy group to represent poli- a nonprofit, nonpartisan citizen advoca- sioner; cyholders' interests (see supra FEATURE cy organization established to inform the -low-income people would be forced ARTICLE for extensive background public about the operation of the legal to accept permanently inferior cover- information on this issue); -better highway and auto safety system; provide independent, objective age-including diminished medical ben- laws research on the protection accorded citi- efits-in exchange for trading away their to reduce accidents and property dam- zens by laws; and guarantee citizens of present legal rights; age;

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-a law reinstating insurance compa- en months after Proposition 103 passed, Conference panel discussions includ- nies' liability to third parties for failure the national insurance industry, led by ed the current status of clean air regula- to pay claims promptly; State Farm and Farmers, is again asking tion, critical issues related to health and -anti-fraud provisions which penalize the courts to thwart the will of the peo- environmental benefits and socioeco- totally frivolous lawsuits or legal defens- ple," said Rosenfield. "Ironically, the nomic costs, and strategies and data es or unnecessary medical charges; and same insurance companies which last needs for minimizing costs and maxi- -court congestion reform, to expand year tried to block former Commissioner mizing benefits. Speakers addressed the access to the courts and speed resolution Gillespie's regulations-which would following topics: the health effects of air of civil and criminal cases. have given almost no rollbacks-are pollution; costs and strategies for achiev- On May 28, SB 941 was defeated 5-4 now telling the court Gillespie's regula- ing clean air; estimating costs and bene- in the Senate Judiciary Committee; at tions are valid and must be applied, fits; and clean air legislation. Workshops this writing, it does not appear that Sena- rather than Garamendi's far tougher reg- covered future directions for air pollu- tor Johnston will seek reconsideration ulations," he added. Rosenfield called tion control professionals; alternative for the bill this year. Attention is now the insurance industry disrespectful of strategies for cleaning the air; and health focused on AB 1375 (Brown), the California voters, consumers, and the effects research. Assembly Speaker's competing bill rule of law, and said it is an "arrogant, ALAC and four environmental which would establish a low-cost policy outlaw industry." groups called an April 30 news confer- for qualifying, low-income, good However, on April 9, Judge Dzintra ence to criticize SCAQMD's latest drivers, while leaving the existing fault- Janavs threw out the insurers' lawsuit, regional air quality plan-the same day based tort system largely intact. Should paving the way for Garamendi to hold the agency began three days of public AB 1375 pass the legislature, Governor hearings on the proposed regulatory hearings on the revised document. The Wilson has vowed to veto it. (See infra changes in May and June. Rosenfield groups called the latest provisions of the agency report on DEPARTMENT OF interpreted the court's ruling to mean plan too weak to be legal, and said that INSURANCE for related information on that "Proposition 103 is inevitably, irre- the changes are "a giant step backward" these bills.) vocably, unquestionably, and unavoid- compared to SCAQMD's 1989 plan, In March 12 letters to Insurance ably going to go into effect." which was rejected by the EPA (see Commissioner John Garamendi and CRLR Vol. 10, No. 4 (Fall 1990) p. 17 Attorney General Dan Lungren, Voter for background information). Joining Revolt accused the insurance industry of AMERICAN LUNG ALAC at the news conference were rep- punishing agents who discount insur- ASSOCIATION OF resentatives of the Coalition for Clean Air, Sierra Club Legal Defense Fund, ance premiums, which is permitted CALIFORNIA Natural Resources Defense Council, and under Proposition 103. Voter Revolt 5858 Wilshire Blvd., Suite 300 investigation Citizens for a Better Environment. called for an industry-wide Los Angeles, CA 90036-0926 of complaints that insurers are terminat- The environmentalists said SCAQ- ing agents who cut their own commis- (213) 935-5864 MD should not allow local governments to make decisions on controversial mea- sions in order to sell policies to con- Lung Association of The American sures such as eliminating free parking or sumers at a lower price. Under the pre- California (ALAC) emphasizes linking new housing developments to Proposition 103, anticompetitive termi- vention and control of lung disease and nations violate California's antitrust and bus lines. They insisted that SCAQMD the associated effects of air pollution. must assure that mass transit is available consumer protection laws. One com- Any respiratory care legislative bill is of as an alternative to driving. The activists plaint from an insurance agency in major concern. Similarly, the Associa- said the plan is seriously flawed because southern California said it had been ter- the actions of the tion is concerned with it states that new freeway construction minated by several insurance companies Air Resources Board and therefore mon- for rebating commissions. Voter Revolt eases congestion and reduces air pollu- itors and testifies before that Board. The tion. SCAQMD was also taken to task presented as evidence a letter to the extended the scope of its Association has for rolling back deadlines for compli- agency from an insurance company concerns to encompass a wider range of admitting termination-because of rebat- ance with clean air standards by three issues pertaining to public health and years-to 2010. One of the environmen- ing. The complaint claims that other environmental toxics generally. agents are urging insurers to terminate tal representatives predicted the District those who insist on discounting policies. MAJOR PROJECTS: would face legal action, and said the new Some insurance agent lobbying organi- On May 10 in Los Angeles, ALAC plan consists of "beatific pronounce- zations have tried to discourage rebating presented the eighth annual Lungs and ments unaccompanied by any tangible by suggesting new laws to prohibit it, the Environment Conference, focusing activity." according to Voter Revolt. on "The Future of Clean Air in Los On April 23 and 30, the heavy lobby- On March 19, Harvey Rosenfield Angeles County: Costs, Benefits, and ing of the tobacco industry twice defeat- blasted over 100 insurance companies Opportunities." The conference was ed a bill in the Senate Governmental which filed suit in Los Angeles County cosponsored by the Southern California Organization Committee that would Superior Court in an attempt to prevent Gas Company, and endorsed by the expand restrictions on the purchase of Insurance Commissioner John Garamen- South Coast Air Quality Management tobacco products by children. SB 1099 di from scrapping former Commissioner District (SCAQMD) and the U.S. Envi- (Petris) was backed by several health Roxani Gillespie's Proposition 103 roll- ronmental Protection Agency (EPA), groups; it would have required state back regulations and adopting his own Region 9. The conference was offered to licensure of stores which sell tobacco more stringent regulations. (See infra expand the knowledge of physicians, products (similar to the licensing of agency report on DEPARTMENT OF nurses, environmental professionals, establishments which sell alcoholic bev- INSURANCE; see also CRLR Vol. 11, educators, and business/government per- erages). Stores selling these products No. 2 (Spring 1991) pp. 121-22 for sonnel about controlling air pollution in to minors could lose their licenses or background information.) "Twenty-sev- Los Angeles County. face other penalties. SB 1099 may be

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reconsidered at a later date. Companion tion of wildlife, including endangered and increasing oil production. Oil com- legislation in the Assembly, AB 1667 species, and the conservation and wise panies are invoking "national security" (Bronzan), is pending in the Assembly use of water. The society works to estab- as a major justification for opening the Government Organization Committee at lish and protect wildlife refuges, wilder- Refuge. (See CRLR Vol. 11, No. I (Win- this writing. ness areas, and wild and scenic rivers. To ter 1991) p. 34 for background informa- On April 21, the San Diego Union achieve these goals, the society supports tion.) Oil development interests are reported that the tobacco industry has measures for the abatement and preven- focusing on the coastal plain-a 1.5-mil- given $1.3 million in California elec- tion of all forms of environmental pollu- lion-acre strip of tundra wetlands on the tions over the past three years, and now tion. northern edge of the ANWR. Several competing bills have been introduced in ranks among the top five campaign con- MAJOR PROJECTS: Congress-some would open the coastal tributors in the state. Tobacco company Shortly before Earth Day (April 21), lobbying and campaign expenditures in plain for exploitation; others would des- NAS mailed a special "action alert" call- the state have increased 800% since ignate the area as wilderness, thus pro- ing 1985. Assembly Speaker Willie Brown, for member support of Senator Tim viding protection from development. Jr., is the largest recipient of tobacco Wirth's (D-Colorado) energy legislation, Before he retired in April, Arizona S. 741, which rejects exploitation of the funds, with $154,750 contributed over Representative Morris Udall introduced Arctic National Wildlife Refuge the past six years to his personal cam- H.R. 39, which would designate the paign committees and to ballot measure (ANWR) for oil development. The bill coastal plain of ANWR as wilderness. committees he controls. According to incorporates strong automobile fuel effi- The bill has 59 cosponsors at this writ- the Union, tobacco lobbyists rarely lose ciency standards that would save many ing. Senator William Roth (R-Delaware) a battle over legislation in the state Capi- times the amount of oil that could be introduced a companion bill in the Sen- tol. In addition to the defeat of the bill drilled from the Refuge. The action alert ate, S. 39, with 20 cosponsors. Audubon described above, tobacco company lob- also urges supporters to lobby against S. supports another bill, S. 279 by Senator byists have convinced legislators to kill 341 by Senator Bennett Johnston (D- Richard Bryan (D-Nevada), which bills that would ban cigarette sales from Louisiana) and Senator Malcolm Wallop would raise the corporate average fuel vending machines and eliminate the tax (R-Wyoming), which places overwhelm- economy standards of cars 20% by 1996 deduction for tobacco advertising ing emphasis on oil exploitation and and 40% by 2001. In addition to S. 341, expenses. In the Union article, former energy development. S. 341 bases the opposing bills which must be defeated ALAC lobbyist Mary Adams stated that energy future of the United States on are H.R. 759 by Representative Don even though Speaker Brown is a non- continuing high rates of oil production Young (R-Alaska), and S. 109 by Sena- smoker, he has worked behind the and consumption, and on the revival of tor Ted Stevens (R-Alaska), which call scenes to refer anti-smoking bills to the the nuclear power industry. It would for opening the ANWR to development. Assembly Governmental Organization open the ANWR to oil and gas develop- Audubon has initiated its largest Committee, which has a reputation for ment, and promote further development grassroots campaign ever, involving killing such legislation. of coal technology. According to the every facet of the organization to save An April 30 Los Angeles Times arti- action alert, S. 341 would save less than ANWR. According to Audubon Activist, cle described ALAC director of environ- 0.1% of the cumulative energy con- letters and phone calls to Congress from mental health Gladys Meade as one of sumption of the United States between citizens opposing arctic oil development the eight most influential individuals in now and 2000. Senator Wirth's S. 741, are vitally important. Brooks Yeager, shaping southern California policy on air on the other hand, provides for the NAS Vice-President for Government pollution. Meade has been a veteran development of wind, solar, and alterna- Relations, said, "Drilling in the coastal smog fighter since 1974. "Meade is the tive fuels technologies, and its energy plain will do only one thing with certain- only individual from a nonprofit advoca- efficiency and conservation provisions ty-destroy an irreplaceable arctic cy group who has made clean air a long- are estimated to save twenty times as ecosystem. It will not get us off our term and continuing cause-surpassing much as the provisions in the Johnston- dependence on oil....If we get that pool the efforts of environmentalists," the Wallop bill. of oil, we'll 'be all right' for what, ninety article noted. Meade, a member of the The April edition of Audubon days? Two hundred days? It's a minus- state Air Resources Board during 1972- Activist was a special issue devoted to cule drop in the bucket compared to 73, was involved in the negotiations that preventing oil and gas development in where we really need to go. Anyone who led to the creation of SCAQMD in 1974. the fragile and pristine ANWR, which buys an energy strategy of which the She also worked on the legislation which was created by the 1980 Alaska Lands cornerstone is drilling one last remote created the California Smog Check vehi- Act. The newsletter called the 19-mil- oilfield is buying a policy designed to cle inspection and maintenance program, lion-acre ANWR the "crown jewel" of keep us with an economy that's pollut- and pushed for passage of the 1988 Cali- America's wild lands; along with Cana- ing, wasteful, largely imported, and fornia Clean Air Act. She has gained da's Yukon National Park, it forms the unsafe." respect from leaders in government and single most important haven for arctic Although drilling proponents assert industry for her grasp of the issues. life in the world. The ANWR is home to that only 12,000 acres would be affected a herd of 180,000 Porcupine caribou, and would not be adversely impacted by which migrates hundreds of miles for the oil development, Audubon policy NATIONAL AUDUBON spring calving in the Refuge. Up to 135 analyst Dorene Bolze refutes this claim: SOCIETY bird species occur in the coastal plain, "The effects of development would go 555 Audubon Place and visitors are likely to see rare musk way beyond a mere 'footprint.' Drilling Sacramento, CA 95825 oxen, grizzly bears, wolves, foxes, wastes and other toxins at the arctic (916) 481-5332 moose, eagles, tundra swans, and pere- Prudhoe Bay have contaminated tundra grine falcons. for miles around-not to mention the The National Audubon Society The Bush administration's energy damage from drilling pads, roads, air (NAS) has two priorities: the conserva- plan centers on drilling in the Refuge pollution, and noise."

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Environmentalists note that the fate including the chinook salmon, striped used in California in the largest amounts. of the Refuge is not the only thing at bass, and Delta smelt. The groups claim Effects associated with one or more of stake-the other is the course of the that the new standards violate laws these chemicals include cancer, chronic nation's energy policy. They say oil will enacted to protect the Delta estuary's hazards, reproductive hazards, and envi- only become increasingly expensive and fish and plant life, including the Califor- ronmental toxicity. Assemblymember scarce no matter how many wells are nia Endangered Species Act, the federal Lee's AB 1519 would require companies drilled. Activists insist that America kick Clean Water Act, the California Porter- to report the production and use of the oil habit and focus on increasing Cologne Water Quality Control Act, the chemicals, not simply the amount of tox- vehicle fuel efficiency standards, California Environmental Quality Act, ic waste they generate. The legislation improving energy efficiency, and devel- and state and federal anti-degradation would also pressure companies to oping renewable energy technologies. laws. (See infra agency report on WRCB replace the use of millions of pounds of An increase of only two miles per gallon for related discussion.) dangerous chemicals with nontoxic sub- in fuel efficiency would save more than The conservationists seek to require stances. At an Oakland news conference, three billion barrels of oil by 2020-the WRCB to allow more fresh water to CalPIRG Executive Director Deborah amount estimated in the ANWR coastal flow through the Delta. They assert the Bruns said, "Throughout California, plain. additional flow of water is necessary to more than 12,000 citizens have already Senator Bill Bradley (D-New Jersey) restore the ecosystem of the estuary, signed postcards to legislators urging has reintroduced legislation supported which is dependent on the mixing of them to support pollution prevention by NAS to provide desperately needed fresh and salt water. measures. Only with passage of AB water to the fourteen federal and state 1519 can we begin to protect Californi- wildlife refuges in California's San ans from increased exposure to toxics in Joaquin Valley. The Central Valley CALIFORNIA PUBLIC our homes, our workplaces, and our Improvement Act, S. 484, would provide INTEREST RESEARCH GROUP environment." CalPIRG is monitoring two other tox- equitable treatment for fish and wildlife S. Robertson Blvd., Suite 203 1147 ics pollution prevention bills. SB 251 with other project purposes. Diversion of Los Angeles, CA 90035 Valley water for agriculture and (Roberti), the Pollution Prevention Act Central 278-9244 urban areas has devastated wetlands. In (213) of 1991, would establish the Office of the House, Representative George Miller CalPIRG is a nonprofit statewide Pollution Prevention in the Environmen- introduced his companion bill-the Cal- organization founded by students from tal Affairs Agency, and charge it with various duties relating to reduction of the ifornia Fish and Wildlife Protection Act. several California universities. It is the The Ancient Forest Protection Act of largest student-funded organization of its use of hazardous materials and preven- of pollution. SB 46 1991 (H.R. 842) was recently reintro- kind in the state. There are CalPIRG tion of the generation Pollution Pre- duced by Representative Jim Jontz (D- chapters on four campuses of the Uni- (Torres), the Air Toxics Act, would revise Indiana). (See CRLR Vol. 11, No. 1 versity of California. CalPIRG now has vention and Reduction air contaminant (Winter 1991) pp. 20-21 for background approximately 120,000 members state- the definition of toxic (TAC) to delete an exclusion for pesti- information.) This measure is a top pri- wide, including thousands of citizens the threshold level of ority for NAS and other environmental members. cides, and redefine groups. The Jontz bill would establish a TAC emissions below which no health system of ancient forest reserves in the MAJOR PROJECTS: effects are anticipated. At this writing, national forests of the Pacific Northwest On April 18, CalPIRG released a both bills are stalled in the Senate and protect corridors connecting the report on the production and use of toxic Appropriations Committee. (See CRLR unique ecosystems. Audubon is urging chemicals by the National Environmen- Vol. 11, No. 2 (Spring 1991) p. 26 for members to ask their congressional rep- tal Law Center (NELC). The report, enti- background information on CalPIRG's resentatives to cosponsor H.R. 842, tled Toxics Truth or Consequences, doc- "Pollution Prevention Platform.") On May 31, seven chapters of the uments the need for better data on On April 4, CalPIRG released a sur- Audubon Society joined with the Sierra industry use of toxics. At news confer- vey on tanning salons, entitled Indecent Club Legal Defense Fund, the Natural ences in several cities in the state, Exposure, which found that about one- Resources Defense Council, and the CalPIRG representatives said the report half of tanning salons surveyed are miss- Environmental Defense Fund in a law- bolsters the need for passage of AB 1519 ing mandated warning labels, despite suit filed in Sacramento County Superior (Lee), the Toxics Truth Act. This bill is a federal and state laws designed to warn Court against the Water Resources Con- reintroduction of AB 1728 (Katz), the consumers about significant health risks trol Board (WRCB) for its alleged fail- Toxics Reporting and Use Reduction associated with tanning machines. ure to protect water quality in the Sacra- Act, which was vetoed by former Gover- Health risks created by excess exposure mento-San Joaquin River Delta, which nor Deukmejian in September 1990. to ultraviolet radiation at tanning salons flows into and helps flush and clean San (See CRLR Vol. 10, No. 4 (Fall 1990) include sunburn, skin cancers, retinal Francisco Bay. The suit seeks to over- pp. 20-21 and Vol. 10, Nos. 2 & 3 damage, cataract formation, and prema- turn WRCB's May 1 adoption of a Water (Spring/Summer 1990) p. 28 for back- ture aging and wrinkling of skin. Anoth- Quality Control Plan which establishes ground information.) er concern is possible suppression of the new salinity standards to protect munici- According to the report, California immune system. Exposure from tanning pal, industrial, agricultural and environ- chemical companies produced or used machines can also be an immediate life mental uses of the Delta. The environ- three billion pounds of toxic substances threat for people who use light-sensitive mental groups assert that WRCB's Plan, in 1988-fifteen times more than the medications, such as tetracycline and which is the latest step in the Board's amount required to be reported as toxic some birth control pills. four-year-old proceeding to establish waste. The NELC study identified the The tanning salon report was based new standards to protect the waters of toxic chemicals ammonia, benzene, on an investigation of 100 businesses in the Bay/Delta, fails to adequately protect propylene oxide, styrene, and sulfuric eight states and the District of Columbia. declining and endangered species, acid as among the chemicals produced or Nearly one-half of the 183 machines

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examined did not have the mandated before an Assembly budget subcommit- refund value for wine, fortified wine, U.S. Food and Drug Administration tee, where four subcommittee members distilled spirits, and noncarbonated (FDA) warning label. Half of the salons spoke in favor of student rights. water containers by March 1, 1991, was surveyed had at least one improperly CalPIRG spokespersons credited the rejected by the Assembly Ways and labeled tanning device. In California, favorable reception by legislators to Means Committee on May 30; however, 64% of the salons did not comply with strong student involvement and letter- reconsideration has been granted. state law that imposes stricter standards writing. -AB 861 (Friedman), which would than federal law. CalPIRG visited 22 ban excessive audiocassette and compact salons in California and viewed 37 tan- disc packaging by January 1, 1993, is ning machines: 24% of the devices CALIFORNIANS also pending in the Assembly Ways and lacked the FDA warning label, and 31% AGAINST WASTE Means Committee. of the salons had at least one improperly 909 12th St., Suite 201 -AB 1423 (Gotch), as amended May labeled machine. The survey disclosed Sacramento, CA 95814 30, would require recycled material to be that several salon operators claimed the (916) 443-5422 incorporated into the production of all tanning equipment offers health benefits glass containers and all aluminum, steel, or is safer than the sun. In 1977, Californians Against Waste and bi-metal cans. This bill is pending in CalPIRG's report made a number of (CAW) was formed to advocate for a the Assembly Ways and Means Commit- recommendations to protect consumers, recycling bill in the legislature which tee. including laws to limit children under 18 would require a minimum refundable -AB 1556 (Margolin), which would years from using tanning devices; a deposit of five cents on beer and soft require the Department of Conservation requirement that salon operators notify drink containers. After being repeatedly to conduct regular, unannounced inspec- patrons of adverse health effects through thwarted legislatively by well-financed tions of beverage container dealers in warning notices and pamphlets; required industry opponents, CAW sponsored and areas in which there is no certified recy- registration and inspection of tanning organized a coalition for a statewide citi- cling location for purposes of determin- salons; increased enforcement and edu- zen initiative which appeared on the bal- ing that the requirements of the bottle cational efforts by state and federal lot in 1982 as Proposition 11. That mea- bill are satisfied, passed the Assembly agencies; and a Federal Trade Commis- sure failed after can and bottle on May 30 and is pending in the Senate sion investigation into advertising manufacturers and their allies raised and Committee on Natural Resources and claims and practices of tanning salons. spent $6 million to defeat it. CAW then Wildlife. CalPIRG supports passage of AB 1555 worked for the 1986 passage of the "bot- -AB 2212 (Sher), (Filante), which would establish which would repeal tle bill" (AB 2020-Margolin), which for provisions of the bottle bill concerning enforcement of current state law in Cali- the first time established redemption val- nonprofit drop-off recycling programs fornia. ues for glass, aluminum, and two-liter At April 21 Earth Day events around and permit the Department of Conserva- plastic beverage containers. As of Jan- tion to calculate a processing fee for bev- the state, CalPIRG members were busy uary 1, 1990, under SB 1221 (Hart), collecting signatures on an energy peti- erage containers other than those cur- redemption values increased from one rently covered by the bottle bill, is tion in support of a national sustainable cent per glass or aluminum container to energy policy that emphasizes energy pending in the Assembly Ways and five cents for every two containers Means Committee. efficiency, supports renewable energy returned. Two-liter plastic beverage con- technologies, and eliminates drilling for -AB 2076 (Sher), the California Oil tainers are now worth five cents each. Recycling Enhancement Act, passed the oil in environmentally sensitive areas. Under SB 1221, redemption values for More than 7,000 signatures were collect- Assembly on May 30 and is pending in aluminum, glass, and plastic beverage the Senate Governmental Organization ed by CalPIRG activists. The petitions containers will increase if a recycling will be used Committee. in national lobbying efforts goal of 65% is not reached by 1993. as debate continues on the national ener- CAW Foundation Director Susan gy policy issue. (See supra report on MAJOR PROJECTS: Kinsella's "Buy Recycled" campaign NATIONAL AUDUBON SOCIETY for CAW's legislative agenda is full this has produced several informative recy- related discussion.) year; the following is a status update on cling pamphlets and brochures, culmi- On April 22, over 40 student support- some of the bills CAW is sponsoring or nating with a consumer paper guide and ers of CalPIRG traveled to Sacramento supporting during 1991 (see CRLR Vol. consumer products guide, both of which for legislative hearings on reinstating the 11, No. 2 (Spring 1991) p. 27 for back- contain extensive lists of manufacturers "negative check-off' fee collection sys- ground information): and distributors of recycled goods. The tem used at four University of California -AB 2213 (Sher) is CAW's top priori- two-year Buy Recycled campaign pro- campuses to fund CalPIRG chapters. A ty this year. The bill would impose an motes environmentally-friendly products September 1990 decision by the UC "advance disposal fee" or "recycling and packaging, and aims to create and Board of Regents to scrap the system has incentive fee" at point of first sale in maintain consumer demand for recycled become one of the most controversial California on specified products and materials. The project is designed to pro- budget issues for the UC this year. (See materials, payable to the California Inte- vide consumers, businesses, and govern- CRLR Vol. 11, No. I (Winter 1991) p. grated Waste Management and Recy- ment agencies with practical information 21 for background information.) Several cling Board. The funds would be used to about recycled products and where to legislators are upset with the UC admin- create a billion-dollar recycling fund buy them. As recycling programs grow, istration for eliminating CalPIRG. Nine every year, and bring curbside recycling there is an increasing supply of recycled students testified before a sympathetic to the doorsteps of millions of Californi- or secondary materials. A corresponding Senator Nicholas Petris, chair of the ans. This bill is pending in the Assembly demand must exist for those materials or Education Subcommittee of the Senate Ways and Means Committee. markets will be flooded and scrap values Budget and Fiscal Review Committee. -AB 750 (Margolin), which would will decline. As a result, recyclers will The next day, six students testified expand the bottle bill by establishing a have no incentive to continue collection,

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and these materials may end up in a California contends that federal testing into bays, estuaries, and coastal waters, landfill. detects only about one-half of the pesti- is pending on the Assembly floor. To stimulate demand for recycled cides that may contaminate fruits, veg- -AB 920 (Hayden), which would products, the CAW Foundation has pro- etables, and other foods; and that Cali- require the California Energy Commis- duced a Guide to Recycled Printing and fornia routinely tests only 34% of the sion to adopt a plan to reduce annual Writing Paper.This publication provides farm chemicals used on foods. Accord- emissions of carbon dioxide, is pending information about recycled paper prod- ing to the report, up to 30% of all pesti- in the Assembly Ways and Means Com- ucts and where they are available. It cides used are for cosmetic purposes to mittee. identifies and promotes paper companies reduce blemishes or scarring on foods. -SB 431 (Hart), which would provide that sell recycled paper made with post- Campaign California faults the U.S. tax incentives to purchase energy-effi- consumer material collected from home Environmental Protection Agency for cient and office recycling programs. Con- autos, is pending in the Senate using "supposedly safe pesticide residue sumers should purchase products which Transportation Committee. levels" which have post-consumer content to be were established twenty -AB 2198 (Sher), which would state assured some or all the material is truly years ago for only 66 chemicals, and the legislature's intent that renewable recycled. Contact the CAW Foundation which are based on exposure to adults, resources provide most new power gen- at the above address to obtain a copy of not children. erated in the state, is pending on the the guide. Campaign California reports that Assembly floor. public education will be the cornerstone -AB 1854 (Connelly), which would of the Big Green Project, including pub- require the Department of Food and CAMPAIGN CALIFORNIA lication of legislators' voting records on Agriculture to adopt and enforce pesti- 926 J Street, Suite 1400 environmental bills; research and analy- cide tolerances developed by the Depart- Sacramento, CA 95814 sis of key environmental issues; prepara- ment of Health Services, is pending in tion and circulation the Assembly (916) 447-8950 of information to the Environmental Safety media and the public on the key issues; Committee. In July 1986, the Campaign for Eco- compilation of questionnaires for candi- -AB 2038 (Connelly), which would nomic Democracy (founded in 1977) dates for elected office and publication mandate lead testing for children eligible became Campaign California. The of a voter's guide; coordination and for community child health and disabili- 100,000-member/contributor organiza- information sharing through a network ty prevention programs, is pending in the tion, with offices in Sacramento, San of state environmental leaders and orga- Assembly Ways and Means Committee. Jose, and Santa Monica, continues as the nizations, along with meetings on key -AB 1742 (Hayden), which would largest progressive citizens action group issues; public surveys and polls on Cali- require that certain pesticides be phased in the state. Each office of the organiza- fornians' attitudes and opinions about out unless health studies are completed tion operates a door-to-door and tele- environmental issues; electoral training, as required by law, is pending in the phone canvass, providing direct contact including workshops to assist environ- Assembly Ways and Means Committee. with voters regarding issues; facilitating mentalists in understanding and partici- fundraising and signature collection pating in the electoral process; and issue drives; and resulting in registration of briefings with opinion leaders from CENTER FOR LAW IN new voters. industry, media, trade associations, and THE PUBLIC INTEREST Campaign California supports efforts other fields, to share information and 11835 W. Olympic Blvd., Suite 1155 to frame workable, progressive solutions provide opportunities for conflict resolu- Los Angeles, CA 90064 to problems in the areas of child care, tion. Campaign California expects to (213) 470-3000 education, environment, transportation, continue to build its membership base by personal safety, insurance, and health utilizing door-to-door canvassers and The Center for Law in the Public care. It targets the private entrepreneur telemarketing to disseminate informa- Interest (CLIPI), founded in 1971, pro- as a source of economic growth, jobs, tion and raise funds. vides public interest law services. Due to and innovation. On the legislative front, the following economic considerations, in 1988 CLIPI MAJOR PROJECTS: is a status update on some of the bills began using outside counsel rather than In its Spring 1991 newsletter, Cam- which are part of the Big Green Project: employ a full-time legal staff. Some paign California reported on the status of -AB 854 (Lempert), as-amended May legal services for the Center are provided its "Big Green Project," which seeks to 24, would create the California Coastal by the law firm of Hall & Phillips, while implement, on'a point-by-point basis, Sanctuary and prohibit state agencies a number of legal cases are handled on a the objectives of the failed 1990 "Big from allowing oil drilling in state waters contract basis by outside attorneys. Green" (Proposition 128) citizens' ini- except under limited, specified circum- CLIPI's major focus is litigation in the tiative. (See CRLR Vol. 11, No. 2 stances. This bill is pending in the areas of environmental protection, civil (Spring 1991) pp. 27-28 for background Assembly Ways and Means Committee. rights and liberties, corporate reform, information.) The publication cited a -AB 1420 (Lempert), which would arms control, communications, and land consumer poll indicating that 77% of double the amount of funding available use planning. CLIPI sponsors law stu- those surveyed believe that pesticide to the State Lands Commission for pur- dent extern and fellowship programs, residues in food constitute a "serious poses of implementing oil spill preven- and periodically publishes a newsletter hazard." Campaign California claims tion and response programs, is pending called Public Interest Briefs. that less than .1% of the 375,000 tons of in the Assembly Natural Resources MAJOR PROJECTS: pesticides sprayed nationally on farm- Committee. On June 3 in R.H. Macy & Co. v. land each year actually reaches a harm- -AB 614 (Hayden), which would Contra Costa County, No. 90-1603, the ful pest; the other 99.9% simply contam- require the Water Resources Control U.S. Supreme Court agreed to determine inates food, air, and water. Campaign Board to set new limits on discharges whether California's Proposition 13

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property tax limit approved by voters in CENTER FOR PUBLIC physician discipline system have yet to 1978 is unconstitutional. At issue in this INTEREST LAW fulfill the letter and spirit of the bill. case is whether new owners of commer- University of San Diego School of Law The AG's office-and specifically cial property may be taxed at a higher the new Health Quality Enforcement Alcala Park rate than long-term owners. Macy's did Section (HQES) created by SB 2375-is not ask that Proposition 13 be wholly San Diego, CA 92110 burdened by a huge backlog of investi- invalidated, only that companies like (619) 260-4806 gated cases which must be processed and tried. Due to the case backlog, the 22 Macy's be taxed the same as competi- The Center for Public Interest Law tors. The department store chain claimed attorneys assigned to HQES commonly (CPIL) was formed in 1980 after take over seven months just to prepare that Proposition 13's differential method approval by the faculty of the University the accusation (the complaint, or notice of taxation violates the equal protection of San Diego School of Law. The faculty and commerce clauses of the U.S. Con- of formal charges, which triggers the selected Robert C. Fellmeth, a law facul- disciplinary process against a physician). stitution. ty professor, as the Center's director. However, on June 7, only four days HQES Chief Al Korobkin (a veteran AG CPIL is funded by the University and from the San Diego office) promised to after the Supreme Court's announce- private foundation grants. ment, Macy's abruptly announced it had seek additional attorney positions if the The Center is headquartered in San unit is unable to keep up with the Board. withdrawn its petition in the Proposition Diego and has branch offices in Sacra- 13 case. Macy's claimed it was persuad- Under SB 2375, the Office of Admin- mento and San Francisco. Each year, istrative Hearings (OAH) is to designate ed to drop the lawsuit by the possibility approximately fifty law students partici- that a ruling might go beyond its specific a "Medical Quality List" of administra- pate for academic credit as CPIL interns. tive law judges (ALJs) who have experi- arguments about commercial real estate Students in the Center attend courses in ence and relevant education/training property taxes to include residential tax in regulated industries, administrative law, hearing complex medical discipline cas- reductions. Macy's had also been threat- environmental law, and consumer law, es. The intent of Senator Presley and the ened with a consumer boycott of its and attend meetings and monitor activi- Center in drafting this section of the bill stores by Richard Gann, son of the late ties of assigned regulatory agencies. was to replicate the reforms made to the Paul Gann, one of Proposition 13's Each student also contributes quarterly State Bar's discipline system-that is, to authors. Business leaders also strongly agency updates to the California Regu- create a relatively small panel of ALJs criticized Macy's legal action, claiming latory Law Reporter. After several (6-8) who would exclusively hear and it would mean massive increases in tax months, the students choose clinic pro- specialize in medical discipline cases. bills if the appeal won. jects involving active participation in However, Karl Engeman, the current A separate petition challenging rulemaking, litigation, or writing. director of OAH, has assigned 27 ALJs Proposition 13 brought by CLIPI on CPIL's professional staff consists of to the Medical Quality List, and has behalf of residential homeowners public interest litigators, research attor- essentially refused to allow his ALJs to (Nordlinger v. State Board of Equaliza- neys, and lobbyists. Center staff mem- become "specialists". CPIL intends to tion, No. B048719) has not yet been bers actively represent the public interest discuss its concerns about this failure to reviewed by the U.S. Supreme Court. in a variety of fora, including the courts, implement the intent behind SB 2375 (See CRLR Vol. 11, No. 2 (Spring 1991) the legislature, and administrative agen- with relevant officials, and to pursue p. 28 and Vol. 11, No. 1 (Winter 1991) cies. other remedies to compel compliance pp. 23 and 156 for background informa- The Center is attempting to make the with the intent of the law, as appropriate. tion.) CLIPI attorney Ann Carlson, rep- regulatory functions of state government On May 8, the Public Utilities Com- resenting Stephanie Nordlinger, said, "If more efficient and more visible by serv- mission's Telecommunications Educa- Macy's can't withstand the pressure, ing as a public monitor of state regulato- tion Trust (PUC-TET) approved a one- elected officials certainly won't. It's an ry agencies. The Center studies approxi- year extension grant for the statewide issue that needs to be settled. We're mately seventy agencies, including most expansion of CPIL's Inside Wiring Con- there and we're not going to withdraw." boards, commissions and departments sumer Education Project. (See CRLR In a recent Public Interest Briefs with entry control, rate regulation, or Vol. 11, No. 2 (Spring 1991) p. 30 and 2 6 newsletter, CLIPI reported that its legal related regulatory powers over business, Vol. 11, No. 1 (Winter 1991) p. for action against Los Angeles County's trades, professions, and the environment. background information.) Since March 1990, CPIL Program Manager Beth approval of a housing subdivision at MAJOR PROJECTS: Paramount Ranch has moved to the Givens has administered the PUC-TET's On May 23, the Senate Business and initial inside wiring grant, and has appellate courts. The suit, brought on Professions Committee held an oversight behalf of the Sierra Club, challenges the researched, written, and supervised the hearing on the progress of the Medical translation of an impressive array of con- County's practice of allowing private Board of California (MBC) in imple- developers to select, hire, and pay the sumer education materials, including menting SB 2375 (Presley), the Center's informational brochures in eight lan- consultants charged with preparing envi- 37-part physician discipline system ronmental impact reports (EIR) for pro- guages, a public service announcement reform bill enacted by the legislature in for television broadcast, and a telephone posed development projects. CLIPI con- 1990. (See CRLR Vol. 11, No. 2 (Spring tends that the County's practice response line (619-221-7918) which 1991) pp. 81-82; Vol. 11, No. I (Winter allows encourages an institutionalized conflict consumers to request the educa- 1991) pp. 66-67; and Vol. 10, No. 4 (Fall tional materials. Due to the success of of interest on the part of the EIR prepar- 1990) pp. 79-80 for background infor- CPIL's initial grant project, the PUC- ers, while minimizing the chances of mation on SB 2375.) While the Board TET has approved an extension grant obtaining an objective, unbiased EIR. appears to have made some progress in enabling Givens to expand the educa- (See CRLR Vol. 10, No. 4 (Fall 1990) p. improving its system in certain areas tional project statewide. 23 and Vol. 10, No. 1 (Winter 1990) p. (see infra agency report on MBC for CPIL's research in the telephone 25 for background information.) details), the two other components of the inside wiring area (conducted jointly he California Regulatory Law Reporter Vol. 11, No. 3 (Summer 1991) PUBLIC INTEREST ORGANIZATION ACTION

with the Utility Consumers' Action Net- awarded its additional fees. The Board's 6-4. The bill has been targeted by insur- work (UCAN)) has also triggered pend- appeal is pending. ers, manufacturers, and big business as ing reforms in two important areas. First, -On April 25, the California Supreme one of the "Top Ten Bills to Kill" during the legislature is currently considering Court refused to review a lower court 1991. SB 841 (Rosenthal), which would decision invalidating Proposition 105, -SB 310 (Dills), SB 309 (Dills), and require landlords to take responsibility the 1988 measure which contained a AB 2028 (Speier) are bills to reform the for installation and maintenance of the "truth-in-initiative-advertising" provi- administration of the State Lottery and inside wiring in rental units, thereby sion requiring major sponsors of initia- its regulation by the Lottery Commis- treating inside wiring the same as other tive advertising to identify themselves in sion. They resulted from CPIL's advoca- fixtures such as electrical wiring and those ads. Thus, CPIL must dismiss its cy on the Lottery's regrettable advertis- plumbing. This issue (landlord vs. tenant November 1990 lawsuit on behalf of ing practices and the publication of CPIL responsibility for inside wiring in rental John Van de Kamp and the "Yes on 131" staff counsel Elisa D'Angelo's feature units) has been a "gray area" ever since campaign against the "No on 131" Com- article in the Winter 1991 issue of the the Federal Communications Commis- mittee and its major contributors, the Reporter. All three bills have been sion deregulated inside wiring in 1986. political committees of Assembly stalled in the Assembly Governmental Second, the PUC-in cooperation with Speaker Willie Brown and Senate Presi- Organization Committee, and have been Pacific Bell, UCAN, and Toward Utility dent pro Tem David Roberti. CPIL's made two-year bills. Rate Normalization (TURN)-is exam- action was based on alleged violations of -AB 102 (Connelly), which would ining changes in Pacific Bell's tariff Proposition 105, in that Brown and reinstate the advance-agenda require- regarding the company's $35 charge for Roberti failed to identify themselves as ment of the Brown Open Meetings Act diagnosing a wiring problem; this fee is major financial backers of the last- applicable to local governments, passed expected to be eliminated in the near minute television blitz which led to the the Assembly on April 29 and is pending future. In its research, CPIL identified defeat of Proposition 131. (See CRLR in the Senate Committee on Budget and both issues as significant areas of con- Vol. 11, No. 2 (Spring 1991) p. 30 for Fiscal Review. sumer confusion. background information.) Several bills -AB 649 (Floyd) would-in the On April 22, CPIL filed comments on to reinstate the initiative's "truth-in-ini- words of San Diego Tribune sports writ- the PUC's proposed ex parte rule, which tiative-advertising" provisions are pend- er Tom Cushman-"KO the boxers' is intended to prevent parties to a regula- ing in the legislature (see infra GENER- pension plan" established by CPIL tory proceeding from communicating AL LEGISLATION). Director Bob Fellmeth when he was with the relevant decisionmaker (either -On April 4, CPIL filed its opening chair of the State Athletic Commission the PUC administrative law judge or the brief in its appeal of the superior court's (see infra agency report on ATHLETIC commissioners themselves) outside the decision in McGuigan v. Board of Psy- COMMISSION for related discussion). chology. In this case, the Board denied public record and in a manner which The pension plan was created in 1981, precludes other parties from knowledge Dr. McGuigan a hearing on its refusal to and is funded by a 3% deduction from waive its licensing examination for over the monies collected by promoters, box- of the communication and an opportuni- three years. Immediately after CPIL ers, and managers (effectively acting as a ty to respond. (See infra agency report entered the case and filed an action seek- 3% gate contribution). on the Retired boxers PUC for related discussion.) ing the hearing, the Board reversed may receive payments from the plan Whereas ex parte communications are course and granted the hearing. The trial once they reach the age of 55, provided strictly prohibited in judicial proceed- court dismissed the action as moot, inas- they have boxed the required number of ings, neither the PUC nor most other much as the Board had granted the hear- rounds to establish eligibility. However, regulatory agencies have a generic ban ing. CPIL seeks an order requiring the before any boxers have even become eli- on ex parte communications. Occasion- Board to grant all such applicants a hear- gible for pension payments, the Com- ally, the Commission will impose an ex ing (to which they are entitled under the mission now seeks to make participation parte rule in a particular proceeding existing Administrative Procedure Act), in the plan voluntary. Because boxers where it deems such a rule necessary. not just those who file a lawsuit. depend on managers and promoters for The following is an update on CPIL's The following is a status update on desirable matches and, in general, are in recent litigation activities: pending legislation in which the Center an adhesive relationship until or unless -On April 30, San Francisco County is involved: they become champions, and since pro- Superior Court Judge Stuart Pollak -AB 1801 (Frazee), the Center's bill moters are seeking to end the plan in awarded the Center another $20,000 in to reform the contracting and billing order to add 3% to their revenues, no attorneys' fees for its successful repre- practices of professional engineers and boxer would "opt in" to the plan. Thus, sentation of 32 Vietnamese refugees strengthen the enforcement powers of Assemblymember Floyd's bill would who were unfairly denied physician the Board of Registration for Profession- effectively kill the pension plan. CPIL licensure by the Medical Board. (See al Engineers and Land Surveyors, is opposes AB 649. CRLR Vol. 11, No. I (Winter 1991) p. pending in the Assembly Ways and CPIL Director Robert C. Fellmeth 24 for background information.) Last Means Committee. has been asked to deliver the keynote January, Judge Pollak ordered the Board -SB 711 (Lockyer), the CPIL-spon- Traynor Forum Lecture at the 1991 Judi- to pay the Center $76,300 in attorneys' sored bill which would prevent parties in cial College, which convenes annually fees and costs; at that point, CPIL litigation from entering into "secrecy and provides an intensive two-week edu- became entitled to collect the fees it agreements" (the sealing of court cational program for newly-appointed incurred in preparing and defending its records, which has the effect of shielding state judges. The Traynor Lecture is motion for fees. CPIL offered to waive important health and safety information named for Roger J. Traynor, former those additional fees in a proposed set- from public knowledge) without notify- Chief Justice of the California Supreme tlement, but the Board rejected the offer ing the appropriate regulatory agencies, Court. Past Traynor lecturers include and filed a notice of appeal of the fee was finally approved by the Senate Judi- George Deukmejian, former Attorney award. Thus, CPIL sought and was ciary Committee on May 22 by a vote of General and Governor of California,

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Jesse Choper, Dean, Boalt Hall School the First District Court of Appeal and the the current process which requires voters of Law, Utah Supreme Court Justice California Supreme Court which invali- to register 30 days in advance. Christine Durham, and California dated 1988's Proposition 105, the "Truth Common Cause hopes that this year's Supreme Court Chief Justice Malcolm in Initiative Act" (see infra LITIGA- redistricting battle required by the 1990 Lucas. The lecture is scheduled for July TION; see also CRLR Vol. 11, No. 2 census will not be a repeat of the gerry- 23 at UC Berkeley. (Spring 1991) pp. 187-88 for back- mandered 1980 process, and is support- On May 24, the Center for Public ground information), Common Cause is ing measures for an open and fair redis- Interest Law presented its annual awards sponsoring SB 116 (Kopp), known as the tricting process. (See CRLR Vol. 11, No. to graduating seniors at the University of "Ballot Measure Disclosure Act of 2 (Spring 1991) p. 30 for background San Diego School of Law's Awards Cer- 1991." SB 116 would require disclosure information.) Amendments to the 1982 emony. Bill Braun was selected "Out- of the identity of the major financial Voting Rights Act make it much easier standing Public Interest Law Advocate" backers of an initiative in every form of for minority groups to successfully con- for his extraordinary initiative in repre- advertising for or against that initiative. test the dilution of voting blocs. Another senting the public interest before the SB 116 is pending in the Senate Com- difference this year is that the legislature Engineers Board. In April 1990, Braun mittee on Elections and Reapportion- and the Governor's office are not con- appeared before the Board to argue ment. trolled by the same party. CCC has CPIL's petition to adopt regulations gov- Common Cause also supports SB 378 called on the Senate, Assembly, and con- erning the billing practices. When that (Craven), which would require part of gressional delegations to hold public tactic failed, Braun drafted and secured the current disclaimer on slate mailers hearings on redistricting plans, make the introduction of AB 1801 (Frazee), which ("This is not an official party docu- maps available in a timely manner, and would require all professional contracts ment") and information on who prepared prohibit amendments to the plans for 14 between engineers and consumers to be the mailer to be printed in ten-point type days before the vote. It will also advo- in writing and to contain provisions size across the top of each page of each cate the use of neutral criteria that will addressing the material terms of the con- mailer. CCC contends that many voters guarantee competitive elections, and tract. In April 1991, Braun appeared do not notice the current disclaimer, oppose any plans drawn to benefit a before the Assembly Consumer Protec- because it is printed on only one page of political party or incumbent. tion Committee and successfully argued the mailer and in very small eight-point In June 1990, the voters of Los Ange- his case; the Committee passed the bill type size. According to CCC legislative les approved Measure H, which autho- by a vote of 10-1. The bill is now mov- advocate Ruth Holton, "The use by inde- rized the use of city funds to partially ing through the legislature, and has an pendent slate mailer organizations of finance campaigns for elective offices in excellent chance of passage. political party names and symbols on the city. Backers of Proposition 73, Two students tied for CPIL's "Out- slates to imply the endorsement of a approved by voters in June 1988, filed a standing Contributor to the California political party confuses and misleads legal challenge against Measure H, argu- Regulatory Law Reporter" award. Tom voters as to the real position of the politi- ing that public funding of city campaigns Cavanaugh was chosen for his excellent cal parties." This is particularly true is barred by Government Code section coverage of the Medical Board of Cali- when the slate endorses candidates and 85300 added by Proposition 73. On fornia and the Board of Psychology dur- positions which are contrary to the posi- April 11 in Johnson, et al. v. Tom ing 1990-91; Jim Pantone was selected tion of the political party the slate Bradley, et al., No. B051955, the Second for his outstanding coverage of the appears to represent. "Voters should not District Court of Appeal upheld the City Board of Forestry during 1989-90. have to search to find out whether or not of Los Angeles' right to partially finance the slate represents the official party local campaigns, finding that a local endorsements," added Holton. government's decision to use its public COMMON CAUSE CCC is also lobbying for passage of funds to finance local political cam- 10951 W. Pico Blvd. AB 116, the election day voter registra- paigns is not a matter of statewide con- tion bill authored by Assemblymember cern. Common Cause had appeared as an Los Angeles, CA 90064 Pete Chacon. The bill would allow Cali- amicus curiae in the case on behalf of (213) 475-8285 fornians to register to vote on election the City. (See CRLR Vol. 11, No. 2 California Common Cause (CCC) is day. According to Common Cause, (Spring 1991) p. 31 for background a 55,000-member public interest lobby- recent studies show that voter participa- information.) ing organization dedicated to obtaining a tion is declining. Only 41% of eligible In March, the Secretary of State's more open, accountable, and responsive Californians voted in the last statewide office released figures showing that spe- government and decreasing the power of election, the lowest turnout ever in Cali- cial interests spent more than $193 mil- special interests to affect the legislature. fornia history. A survey conducted by lion on lobbying during 1989-90 to the Charlton Research Company showed influence state policymaking. The report MAJOR PROJECTS: that 5% of Californians did not vote in revealed a $35 million (22%) increase in Since the November 1990 ballot the last election because they had not campaign contributions over the previ- (which contained a large number of registered in time. "Clearly these trends ous two-year period. CCC's Ruth Holton lengthy and conflicting propositions), are a sign of crisis in our democracy," said, "One of the problems is that this many political observers have called for asserts CCC policy analyst Kim Alexan- sends a message to many groups and substantial initiative reform. Common der. "Our system of government relies individuals that they need to hire a lob- Cause believes that the real problem has upon participation of the people. Yet a byist. That's unfortunate. If you are an less to do with the initiative process than majority of Californians choose not to individual or a private business, you with the campaigns for and against ini- participate. It is tragic that under our cur- shouldn't need to hire a lobbyist to press tiative measures. CCC's top priority this rent registration system, many Californi- your case," she said. year is to ensure full disclosure of the ans would like to participate but can't The Western States Petroleum Asso- financial proponents and opponents of because of administrative barriers." ciation, a consortium representing 50 oil ballot measures. Given recent rulings by Election day registration would alleviate companies including Chevron, ARCO,

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and Texaco, was the largest contributor, Together, MCI, AT&T, and Sprint con- groups when preparing bill inserts spending $3.77 million. Second-highest trol 94% of the long distance market. describing 900 services. The primary was the California Manufacturers Asso- "For the first time since 1984 Sprint 900 service requirements adopted by the ciation, spending $3.31 million, fol- could not keep up with matching PUC include the following: lowed by the Association of California AT&T's rate reductions," said CA Exec- -price limits on most calls of $5 for Insurance Companies, representing 30 utive Director Ken McEldowney. The the first minute and $2 for additional insurers, which spent $2.95 million. difference between the basic rates of the minutes, up to a maximum of $50 per Other major lobbyists were the Califor- three major long distance carriers call; nia Medical Association at $2.88 mil- remains small, varying by only $1.15 on -price limits on children's services of lion; Pacific Telesis at $2.48 million; the the total cost of 27 calls. $2 per minute and $4 total per call; California Cogeneration Council at According to CA, the past year's rate -a required disclosure message at the $1.92 million; the California Teachers reductions by long distance companies start of all 900 calls and a three-second Association at $1.85 million; the Cali- have benefited businesses more than res- delay before charges begin, with a mini- fornia Trial Lawyers Association at idential customers. Interstate daytime mum of 12 seconds before charges start; $1.82 million; and the American Insur- calls of the three largest companies -advance notification to callers when ance Association at $1.79 million. decreased an average of 1.3%, while bills for 900 services reach $75 ($30 for night/weekend calls actually increased Lifeline customers), and again at $150; by as much as 3.1%. CA is alarmed by -establishment of a specific com- CONSUMER ACTION the rate shift. "We think it shows the car- plaint procedure and refund or adjust- 116 New Montgomery St., Suite 223 riers are going to ignore residential ment policies; San Francisco,CA 94105 callers who make few calls and focus -free blocking of 900 calls; their marketing to business customers -advertising guidelines and safe- (415) 777-9635 and heavy users with discount plans," guards; and San Francisco Consumer Action McEldowney commented. -separate prefixes for "harmful mat- (CA) is a nonprofit consumer advocacy CA is concerned that seven years ter." and education organization formed in after the breakup of AT&T, consumers Consumer Action supports federal 1971. Most of its 2,000 members are in still have little choice in the marketplace. legislation on 900-number regulations, northern California but significant According to McEldowney, long dis- H.R. 328 (Rep. Bart Gordon, D-Ten- growth has taken place in southern Cali- tance rate reductions are mainly the nessee), even though at this writing it fornia over the past year. CA is a multi- result of reductions in access charges does not include the most important issue group which since 1984 has which carriers pay to local phone com- safeguard-a price cap. The Federal focused its work in the banking and panies. "We now pay less for long dis- Communications Commission is also telecommunications industries. tance calls, but everyone pays a $3.50 considering new 900 regulations. CA has filed petitions with and access charge. This represents a cost AB 938 (Speier), sponsored by CA appeared before the California Public increase for the many consumers who and the California Grocers Association Utilities Commission (PUC) in the field make few long distance calls," he to reduce the amount financial institu- of telephone rates. Statewide pricing sur- emphasized. tions may charge for bounced checks, veys are published periodically compar- Copies of the long distance survey returned deposits, and other fees, suf- ing the rates of equal-access long dis- are available free to consumers who send fered a setback in the Assembly. The tance companies and the prices of a self-addressed, business-size envelope "Fair Checking and Savings Account services offered by financial institutions. with 29 cents postage to the CA office. Fee Act," which is a response to con- Once each year, CA publishes consumer Survey data is valid as of March 1, 1991. sumer complaints that the banking service guides for the San Francisco Bay The telephone survey was produced by industry charges exorbitant fees totally area and the Los Angeles area which list CA's Telephone Information Project unrelated to costs for returned checks agencies and groups offering services to (TIP), which is funded by the Public and other services, was defeated in the consumers and assisting with com- Utilities Commission's Telecommunica- Assembly Committee in Banking, plaints. A free consumer complaint tions Education Trust. The Trust was Finance and Bonded Indebtedness on /information switchboard is provided by established from fines imposed on Pacif- May 21. After reconsideration, the bill CA, and the group publishes a regular ic Bell by the PUC for deceptive prac- was narrowly passed by the Committee newsletter which includes the pricing tices in the sale of telephone services. on May 24. The bill is heading to the surveys. More than 20,000 individual The April/May 1991 edition of Con- Assembly floor at this writing, but is consumers requested CA publications sumer Action News praised the PUC's expected to encounter stiff opposition during 1990. Consumer organizations March approval of "remarkably compre- from the banking industry. requested bulk orders of CA publica- hensive and tough guidelines" for 900- CA also supports SB 473 (Marks), number services in California. (See tions in 1990 which exceeded 750,000 which would prohibit employers from CRLR Vol. 11, No. 2 (Spring 1991) pp. copies. using credit reports to screen job appli- 31 and 175-76 for background informa- cants or to monitor existing employees. MAJOR PROJECTS: tion.) The new rules provide state con- CA believes the practice is unethical and On April 25, CA released its 1991 sumers with the power to drive fraudu- an inappropriate use of credit histories. long distance telephone price survey, lent and deceptive 900 pay-per-call At this writing, the bill is pending in the which indicates that Sprint has higher operations out of California (the regula- Senate Judiciary Committee. rates than MCI or AT&T for a package tions do not apply to 900 operations in On June 11, CA celebrated its twenti- of 27 long distance calls. During the last other states). CA called the decision a eth anniversary with a dinner and year, AT&T's rates fell by 8.5%, while sweet victory after the Commission fundraiser at the Hyatt Regency Hotel in Sprint's dropped by only 4.5%. MCI's adopted many of CA's positions. The San Francisco. The event honored two prices fell by 8.1%, giving it the lowest PUC ordered 900-service applicants to CA founders, Kay Pachtner and Neil total for the package in the survey. consult with CA and other consumer Gendel. Pachtner was CA's first executive

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director; Gendel was the group's board On May 9, CU-along with numer- tends that mistakes are not uncommon chair for ten years and is the author of ous other public interest organizations and have been previously documented; Break the Bank, a book on banking and and State and Consumer Services Agen- Consolidated Information Service's consumerism. The anniversary party's cy Secretary Bonnie Guiton-released 1988 survey of 1,500 credit files found fundraising goal was $20,000, which the results of a study indicating that con- errors in 43% of the files surveyed. Pro- will be used to underwrite CA's free, sumers would save money if SB 941 jections from this data indicate that as multilingual Consumer Complaint Hot- becomes law. SB 941 would reduce auto many as 172 million credit reports may line and to augment CA's Publications insurance premiums by requiring that a contain mistakes. Fund. The Publications Fund supports new $220, no-frills, no-fault policy be CU's recommendations to Congress distribution of free CA publications to a offered to all good drivers in the state. include strategies for assisting con- growing number of community-based The basic policy would provide $15,000 sumers in finding out what credit organizations. This year, over 800 per person coverage for health care and bureaus are saying about them; forcing groups will receive free, multilingual wage losses; drivers in accidents would credit bureaus and creditors to correct consumer education materials from CA. file claims with their own insurance inaccurate information; and making CA's Ken McEldowney was recently company regardless of fault. Those with credit files confidential. elected national president of the Con- serious or permanent injuries could still Assemblymember Lloyd Connelly sumer Federation of America (CFA). receive pain and suffering awards by and Insurance Commissioner John Gara- Based in Washington, D.C., CFA is the suing the at-fault driver. Supporters of mendi joined CU at an April 25 press nation's largest consumer organization. SB 941 estimate that 80% of auto acci- conference to call for passage of AB Its members include most U.S. con- dent cases would be removed from the 2107 (Connelly), the Credit Life and sumer groups, as well as labor unions court system with the passage of the bill. Disability Insurance Reform Act. CU and rural electric cooperatives. Over 250 CU reports that the availability of claims the bill could save California groups around the country belong to such a policy coupled with the require- insurance consumers $45 million per CFA and have a combined membership ment to show proof of insurance when year by reforming credit insurance regu- of over 50 million. CFA lobbies on registering a car will virtually eliminate lation and returning to the Department of uninsured behalf of its members before Congress drivers in California. Gover- Insurance (DOI) the power to regulate nor Wilson also announced and federal agencies, and has a solid rep- his support rates for credit insurance. Credit insur- for the bill, stating that drivers utation for vigorous and effective advo- would ance pays the outstanding balances on save hundreds of dollars per year in cacy. consumer loans if a borrower dies or insurance costs with the no-fault policy becomes disabled. Credit insurers earn created under SB 941. However, after more than $600 million per CONSUMERS UNION unprecedented lobbying by Brown and year in the state, largely because a 1985 bill 1535 Mission Street the trial lawyers, SB 941 was rejected by the stripped DOI of the power to regulate San Francisco,CA 94103 Senate Judiciary Committee on May 28; at this writing, it does not appear that them. AB 2107 would allow DOI to (415) 431-6747 Senator Johnston will seek reconsidera- decide how much of the premium dollar tion for SB 941 this year. a company must pay out in policyholder Consumers Union (CU), the largest claims; allow DOI to force companies to consumer organization in the nation, is a On April 29, CU issued a report which charges that credit reporting com- lower their premiums if they do not pay consumer advocate on a wide range of out enough consumer claims; and issues in both federal and state forums. panies' information on consumers is pro- hibit writing or selling "gross debt cov- At the national level, Consumers Union often incomplete, incorrect, and difficult erage," in which the credit insurance publishes Consumer Reports. to decipher. CU called on Congress to Historical- covers interest on the loan that is not yet ly, Consumers Union has been correct the problems and protect the pri- very due. CU has studied this problem for active in California consumer issues. vacy of credit report files. The CU study included information on 161 credit several years (see CRLR Vol. 10, No. 4 MAJOR PROJECTS: reports in several cities nationwide, (Fall 1990) pp. 27-28 for background Once again this year, CU led the fight compiled by 57 consumers who are CU information), and has long maintained for no-fault insurance in California by employees or acquaintances of CU that consumers are grossly overcharged sponsoring SB 941 (Johnston) (see employees. Each requested copies of for credit insurance which is often CRLR Vol. 10, No. 4 (Fall 1990) p. 27 their credit reports from the nation's unnecessary. AB 2107 is pending in the and Vol. 10, No. 1 (Winter 1990) p. 28 three largest credit bureaus: TRW, Trans Assembly Ways and Means Committee. for background information on CU's Union, and Equifax. On April 24, CU issued a report previous efforts); and once again, it Participants in the CU study noted which estimates that California's three- appears that CU's efforts have been that 48% of the 161 reports contained year temporary deregulation of retail derailed by intense lobbying by the Cali- inaccurate information; 27% of the credit card interest rates is costing Cali- fornia Trial Lawyers Association and reports reviewed had been seen by per- fornia consumers $106.4 million per Voter Revolt, and the maneuverings of sons whom the participants had never year, for a total of $319.3 million. The Assembly Speaker Willie Brown, who is authorized to see the reports; 19% of the deregulation began on January 1, 1989, sponsoring his own competing bill, AB reports contained a major inaccuracy; after passage of SB 2592 (Dills) (Chap- 1375. Although Brown's bill would and credit was denied to one participant ter 479, Statutes of 1988). (See CRLR establish a low-cost policy for qualify- based on inaccurate information in her Vol. 10, No. 1 (Winter 1990) p. 27 and ing, low-income, good drivers and rein- credit file. Vol. 8, No. 4 (Fall 1988) p. 128 for back- state the private cause of action for bad Over 400 million files are maintained ground information.) Under SB 2592, faith against insurers, it would largely by the credit reporting industry, and CU retail credit card interest rates were leave the existing fault-based tort system acknowledges that its research project allowed to increase above the existing intact. (See infra agency report on was too limited to reach decisive conclu- 18% cap on balances under $1,000 and DEPARTMENT OF INSURANCE for sions about the overall accuracy of infor- the 12% cap for balances of $1,000 and further information on these bills.) mation in the files. However, CU con- above. ie California Regulatory Law Reporter Vol. 11, No. 3 (Summer 1991) PUBLIC INTEREST ORGANIZATION ACTION

According to CU, the deregulation coming through a government-employ- environment. EDF was a major force has increased retail credit interest rates er-employee-taxpayer partnership. Hos- behind the 1972 federal ban of DDT. on small balances by about two percent- pitals would negotiate budgets; doctors Staffed by scientists, economists, and age points (from 18% to 20.15%); for would be tied to a negotiated fee sched- attorneys, EDF is now a national organi- balances over $1,000, rates have ule. Consumers could choose an individ- zation working to protect the environ- increased about eight percentage points ual doctor or a prepaid health care plan ment and the public health. Through (from 12% to 20.15%). Each percentage to receive care. CU notes that SB 36 extensive scientific and economic point over 18% means that California (Petris), currently pending in the Senate research, EDF identifies and develops consumers pay another $50 million Revenue and Taxation Committee, is solutions to environmental problems. annually in interest charges. based on the Health Access Plan. EDF currently concentrates on four areas The report also includes the results of CU has taken a position on numerous of concern: energy, toxics, water a CU survey on the availability of credit bills pending in the legislature this ses- resources, and wildlife. in inner city and nearby urban areas. Of sion, including the following: 77 stores surveyed, only 25% offered -CU supports AB 2225 (Roybal- MAJOR PROJECTS: any retail credit. The lack of credit avail- Allard), which would require the Depart- On May 31, EDF joined with the ability among the smaller retail stores ment of Health Services to develop a Sierra Club Legal Defense Fund, the surveyed is inconsistent with the argu- Medically Needy Outreach Program and Natural Resources Defense Council, and ment made in support of SB 2592; the conduct a one-year study of the pro- seven chapters of the Audubon Society bill's sponsors had predicted that dereg- gram's effectiveness. This bill is pending in a lawsuit filed in Sacramento County ulation would make credit more avail- in the Assembly Ways and Means Com- Superior Court against the Water able to low-income consumers. mittee. Resources Control Board (WRCB) for CU cautions that the scheduled return -CU supports AB 1672 (Margolin), its alleged failure to protect water quality to rate caps of 12% and 18% is in jeop- which would require specified notice in the Sacramento-San Joaquin River ardy; SB 1105 (Dills), sponsored by the requirements to insurance consumers Delta, which flows into and helps flush California Retailers Association, would who are facing cancellation, nonrenewal, and clean San Francisco Bay. The suit permanently deregulate retail credit or the prospect of increased premiums seeks to overturn WRCB's May 1 adop- interest rates. CU opposes SB 1105, for certain types of insurance. This bill is tion of a Water Quality Control Plan which passed the Senate on May 24 and pending in the Assembly Insurance which establishes new salinity standards is pending in the Assembly Committee Committee. to protect municipal, industrial, agricul- on Banking, Finance, and Bonded -CU supports AB 148 (Margolin), tural and environmental uses of the Indebtedness. which would increase the penalties Delta. The environmental groups assert On March 28, Health Access, a health applicable to persons who engage in any that WRCB's Plan, which is the latest care coalition of which CU is a promi- unfair method of competition or any step in the Board's four-year-old pro- nent member, released a report entitled unfair or deceptive act or practice in the ceeding to establish new standards to The Right Way to Spend California's 70 business of insurance. This bill is pend- protect the waters of the Bay/Delta, fails Billion Health Care Dollars.Judith Bell, ing in the Assembly Insurance Commit- to adequately protect declining and CU's Director of Special Projects and tee. endangered species, including the chi- editor of the report, notes that California -CU supports SB 1190 (Killea), nook salmon, striped bass, and Delta spends nearly 12% of its state product on which would create a licensing program smelt. The groups claim that the new health care. The report states that for midwives within the Medical Board. standards violate laws enacted to protect although Californians spend more than At this writing, this bill is pending in the the Delta estuary's fish and plant life, $70 billion per year on basic health care, Senate Business and Professions Com- including the California Endangered close to six million Californians do not mittee. Species Act, the federal Clean Water have health insurance coverage. The Discovery is continuing in Aetna report contends that, by restructuring its Act, the California Porter-Cologne Finance Co. v. Consumers Union, No. Water Quality Control Act, the Califor- system, the state could spend the same 926772 (San Francisco County Superior nia Environmental Quality Act, and state amount of health care dollars and cover Court). In this action, CU alleges that all Californians' health care needs, and federal anti-degradation laws. (See Aetna, which transacts business in Cali- infra agency report on WRCB for related including long-term care. fornia as ITT Financial Services, added The report discussion.) reviews several proposals an illegal overcharge to more than for solving California's health crisis and The conservationists seek to require 50,000 consumer loans in the past four WRCB to allow more fresh water to focuses on the Health Access Plan-a years. (See CRLR Vol. 11, No. 1 (Winter proposal to achieve universal, afford- flow through the Delta. They assert the 1991) p. 27 for background informa- additional flow of water is necessary to able, comprehensive health coverage. tion.) The plan would change the way health restore the ecosystem of the estuary, care is paid for without significantly which is dependent on the mixing of fresh and salt water. altering the delivery of care. (See CRLR ENVIRONMENTAL Vol. 11, No. 1 (Winter 1991) p. 32 for In November 1989, EDF and the DEFENSE FUND background information.) Monies cur- Metropolitan Water District of Southern rently paid for health care would be col- Rockridge Market Hall California (MWD) challenged a WRCB lected into a single publicly-financed 5655 College Ave. decision to allow the Azusa Land Recla- system. The plan is based on the Canadi- Oakland, CA 94618 mation Company to dump over 30 mil- an system but also includes some unique (415) 658-8008 lion tons of Los Angeles-area garbage features of California's health care mar- into gravel pits on 302 acres above the ket, such as managed care systems like The Environmental Defense Fund San Gabriel Basin-an underground Kaiser. (EDF) was formed in 1967 by a group of aquifer and source of drinking water for The Health Access Plan relies on a Long Island scientists and naturalists one million people. In EDF's April tax-based financing system with monies concerned that DDT was poisoning the newsletter, the group reported that in its

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lawsuit, MWD, et al. v. State Water new controls on the plant, which is the vice from further bison kills until the Resources Control Board, the California largest source of sulfur dioxide in the conclusion of a hearing on the matter. Supreme Court recently declined to southwest. However, EDF contends the On April 11, Fund for Animals review a January 1991 appellate court proposal does not go far enough and that announced that the Service had agreed to order halting the dumping until an envi- the emissions control plan should be drop its plans to kill additional bison for ronmental impact report is completed. strengthened to eliminate three times as the research project. The Fund, which EDF said there is evidence the landfill many high pollution days in the region. had characterized the kills as "an would leak into the aquifer and that an The EPA plan would allow the Nava- extreme attempt to pander to the irra- EIR would prove the case. EDF believes jo plant to continue to emit 21,000 tons tional concerns of the cattle industry," the alternative to expanding the landfill of sulfur dioxide per year. EDF, citing considered the Service's concession to is an aggressive recycling program. EPA's own study, says state-of-the-art be a major victory, and terminated the Motor vehicles are the cause of two- technology could reduce emissions to proceeding in federal court. (See CRLR thirds of the pollutants in the air over the less than 5,000 tons per year and would Vol. 9, No. 2 (Spring 1989) p. 29 for Los Angeles, Orange, Riverside, and only cost 5% more. According to EDF's related information.) San Bernardino County region. At this April newsletter, EPA initially drafted a The May edition of Fund for Ani- writing, air quality regulators at the stronger proposal, but pressure from the mals' California Legislation 1991 Southern California Association of Gov- White House Office of Management and Action Alert reported that the Depart- ernments and the South Coast Air Quali- Budget forced EPA Administrator ment of Fish and Game has recommend- ty Management District are considering William K. Reilly to reduce the level of ed to the Fish and Game Commission proposals to increase the cost of solo protection for the parks. Some Bush (FGC) that all California trappers dis- commuting, such as periodic odometer administration officials are now seeking pose of existing steel-jawed traps, and checks with fees for excessive mileage, even weaker regulations to allow emis- replace them with new "padded" traps to increased parking costs, and smog taxes sions reductions only during the winter reduce injury to endangered species and on gas and diesel fuels. when the air quality impact is greatest. non-target animals. (See CRLR Vol. 11, A study by EDF analyst Michael EDF, the Grand Canyon Trust, National No. 2 (Spring 1991) p. 156 and Vol. 11, Cameron projects that a package of fee Parks and Conservation Association, No. 1 (Winter 1991) p. 125 for back- increases averaging $5-$6 per day per Natural Resources Defense Council, ground information.) Fund for Animals vehicle would reduce hydrocarbon emis- Sierra Club, and Wilderness Society sent also recommended that FGC mandate sions by 19%. The EDF study suggested President Bush a letter urging him to only the "humane" killing of animals regionwide peak-period pricing in the support state-of-the-art emission control caught in traps, and that trappers not be most congested corridors during the bus- technology. The letter said the controls allowed to stomp, suffocate, club, or iest hours, along with parking fees at would add about $1.65 per month to the strangle trapped animals. shopping malls, high schools, and other average area homeowner's electric bill, As of May 1, Fund for Animals had nonwork parking facilities. The study only 15 cents more than the watered- taken the following positions on bills recommended that an annual smog fee down EPA proposal. pending in the state legislature: be assessed on each vehicle based on its -oppose AB 145 (Harvey), which, as emissions performance and the number amended March 20, would increase the of miles driven. New vehicles could be FUND FOR ANIMALS minimum fine for persons interfering granted sales tax credits or penalties FortMason Center,Bldg. C with specified hunting activities; depending on fuel efficiency. EDF also -support AB 159 (Floyd), which, as urged the use of more private, for-profit San Francisco,CA 94123 introduced December 19, would elimi- van pools similar to those now serving (415) 474-4020 nate the drugging of horses entered in airports. These policy changes would Founded in 1967, the Fund works for horse races and regulate the medication encourage more efficient use of trans- wildlife conservation and to combat cru- of racehorses sold at horse or auction portation and, while initial costs to elty to animals locally, nationally, and sales; drivers would be higher, would produce internationally. Its motto is "we speak -oppose AB 997 (Mountjoy), which, savings over the long term. Besides for those who can't." The Fund's activi- as introduced March 4, would allow reducing the enormous economic costs FGC to permit the sport hunting of ties include legislation, litigation, educa- Nel- of pollution and congestion, pricing son bighorn sheep anywhere in the state; reforms would preclude the need to tion, and confrontation. Its New York founder, Cleveland Amory, still serves -support AB 2021 (Polanco), which, build new highways. as amended May 24, would require war- EDF wants the federal government to without salary as president and chief executive officer. ranties, veterinary care, and exercise for dramatically reduce sulfur dioxide emis- dogs in pet shops and those sold by sions from the coal-burning Navajo MAJOR PROJECTS: large-scale breeders; and Generating Station in Arizona, a plant On April 8, Yellowstone National -support SB 1020 (Rosenthal), which, that is partly owned by the federal gov- Park rangers fatally shot three pregnant as amended April 29, would require pet ernment. The powerplant sits in the cen- bison to obtain tissue samples for a study dealers to post signs and disclose in ter of the "Golden Circle" of national of whether brucellosis, an infectious dis- advertisements that breed registration parks, including the Grand Canyon, ease that causes domestic livestock to does not assure good health or guarantee Arches, Bryce, Canyonlands, Capitol abort their young, cam be transmitted the breeding conditions or quality of a Reef, Mesa Verde, Petrified Forest, and from bison. The Park Service had dog. Zion. Air quality in the region of these planned to kill 22 additional bison for its As reported in CRLR Vol. 11, No. 2 eight major national parks has been study; however, Fund for Animals (Spring 1991) at page 33, Fund for Ani- declining steadily in the past several sought and was granted a temporary mals also supports the following bills: years. In response to a court order won restraining order from U.S. District -AB 110 (O'Connell), which, as by EDF in 1984, the U.S. Environmental Court Judge George Revercomb in amended March 18, would ban the use Protection Agency (EPA) has proposed Washington, which prohibited the Ser- of the painful Draize eye irritancy and

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skin irritancy tests on animals in Califor- ground information.) The bill would sis. In California, NRDC appears fre- nia for cosmetic and household cleaning amend the Coastal Act to exempt Disney quently before the Coastal Commission, products; from current prohibitions on the filling Energy Commission, and Public Utilities -AB 500 (Farr), which, as amended and dredging of open coastal waters. SB Commission. NRDC headquarters is in April 25, would provide minimum stan- 1062, which is also opposed by the New York City, with branch offices in dards for the transportation of horses, Coastal Commission and the Sierra Washington, D.C., San Francisco, Los including a ban on the use of double- Club, among others, is pending in the Angeles, and Honolulu. decker and pot-bellied cattle trucks; Senate Natural Resources and Wildlife MAJOR PROJECTS: -AB 1660 (Speier), which, as amend- Committee. In mid-May, Security Environmental ed May 29, would require that a licensed LCP supports AB 854 (Lempert), Cali- veterinarian be present at all rodeos to Systems (SES) and its subsidiary, which would create the California fornia Thermal Treatment Services, treat injured animals, and that local Coastal Sanctuary, prohibit new oil and humane enforcement officials be noti- announced that they have abandoned gas leasing in the Sanctuary, and provide plans to build a huge $29 million toxic fied in advance of rodeos; the Coastal Commission and State Lands waste incinerator in East Los Angeles -AB 1000 (Hauser), which, as Commission with new enforcement adjacent to low-income residential com- amended May 6, would add poultry to powers. This bill is pending on the munities. The move represents a tremen- the list of animals which must be slaugh- Assembly floor. (See CRLR Vol. 11, No. dous victory for NRDC and the commu- tered pursuant to specified methods in 2 (Spring 1991) pp. 33-34 for detailed commercial facilities under California's nity of Vernon. Since 1988, NRDC background information.) attorney Humane Slaughter Act; Joel Reynolds has represented the Mothers of East Los Angeles in -SB 15 (Robbins), which, as amended opposition to the April NATURAL RESOURCES project. (See CRLR 15, would expand existing law Vol. 11, No. 2 (Spring 1991) pp. 34 and regarding dogs stolen for research or any DEFENSE COUNCIL 141 for background information.) commercial purposes to cover the theft 90 New Montgomery St., Suite 620 of all animals; NRDC helped the group intervene in San Francisco,CA 94105 administrative proceedings and file law- -SB 719 (Marks), which, as amended May 8, would ban veal calf crates and (415) 777-0220 suits against agencies which approved permits for the polluting facility, includ- require that calves be able to at least lie The Natural Resources Defense ing the South Coast Air Quality Manage- down, turn around, and move comfort- Council (NRDC) is a nonprofit environ- ment District, the Department of Health ably in their enclosures; mental advocacy organization with a Services, and the U.S. Environmental -SB 318 (McCorquodale), which, as nationwide membership of more than Protection Agency (EPA). In 1990, amended April 23, would set minimum 125,000 individuals, more than 38,000 NRDC's client and another group, the standards for the care and treatment of of whom reside in California. Since Concerned Citizens of South Central Los elephants in captivity; and 1972, NRDC's western office in San Angeles, protested the incinerator -SB 1013 (Thompson), which, as Francisco has been active on a wide through demonstrations in the streets and amended April 25, would ban alligator range of California, western, and nation- litigation in both state and federal courts. farms in California if the alligators are al environmental issues. Most of that kept for the use of their meat or hides. In February 1991, the Second District work is now grouped under five subject- Court of Appeal unanimously ruled that matter headings: public lands, coastal the project could not go forward without resources, pesticides, energy, and water LEAGUE FOR COASTAL the completion of a full environmental supply. In these areas, NRDC lawyers impact statement. The court also ordered PROTECTION and scientists work on behalf of under- that the health risk assessment prepared P.O. Box 190812 represented environmental quality inter- on the project be redone, after new evi- San Francisco,CA 94119-0812 ests before numerous state and federal dence indicated potential emissions of (415) 777-0220 forums. Public health concerns are dioxins and furans of 100 to 1,000 times increasingly a priority, in addition to more than the original estimate, and Created in 1981, the League for conservation of nonrenewable resources called for use of the best available pollu- Coastal Protection (LCP) is a coalition and ecosystem preservation. tion control equipment. On May 2, the of citizen organizations and individuals NRDC has been active in developing California Supreme Court declined to working to preserve California's coast. It energy conservation alternatives to new review that decision-thus leading to is the only statewide organization con- power plants and offshore oil drilling, SES' abandonment of the project. centrating all its efforts on protecting the and resource-conserving land use poli- NRDC's April 1991 Newsline coast. The League maintains a constant cies in California's coastal counties and newsletter announced the initiation of presence in Sacramento and monitors federally-managed lands. Notable recent the first national advocacy program for Coastal Commission hearings. achievements by NRDC include leader- the environmental well-being of chil- MAJOR PROJECTS: ship of coalitions which have developed dren. NRDC's work on children's issues On May 24, LCP announced its broadly-supported federal legislative ini- started in 1989 with the release of its opposition to SB 1062 (Maddy), which tiatives on pesticide regulation and effi- study, Intolerable Risk: Pesticides in would amend the 1976 California ciency standards for household appli- Our Children's Food. The report pointed Coastal Act to allow the Walt Disney ances. out the government's failure to consider Company to build a $3 billion seaside Agricultural water supply and the greater vulnerability of children to theme park-resort by filling in part of drainage issues are taking on growing pesticides when setting health-based Long Beach Harbor. (See infra agency importance with NRDC, including the residue tolerances. The study brought report on CALIFORNIA COASTAL widely-publicized contamination of the considerable public attention to the fact COMMISSION; see also CRLR Vol. 11, Kesterson Wildlife Refuge and the that a child's environment is different No. 1 (Winter 1991) p. 124 for back- broader policy issues underlying that cri- than an adult's, as is a child's biochemical

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and physiological response to the envi- on raisins and tomatoes; phosmet, voters in 1978. PLF has defended Propo- ronment. (See CRLR Vol. 11, No. 2 sprayed on cotton from which cotton- sition 13 on numerous occasions in state (Spring 1991) pp. 34-35; Vol. 9, No. 4 seed oil is extracted; and mancozed, court, and had filed an opposition to (Fall 1989) p. 22; and Vol. 9, No. 2 used on raisins and wheat). Macy's petition for review to the high (Spring 1989) pp. 30-31 for background On May 31, NRDC joined with the court. In an unusual move only four days information.) Sierra Club Legal Defense Fund, the later, Macy's abruptly abandoned its According to NRDC, three to six mil- Environmental Defense Fund, and seven challenge, claiming that a court opinion lion children in the United States are chapters of the Audubon Society in a might extend beyond commercial real suffering from the toxic effects of expo- lawsuit filed in Sacramento County estate property taxes to include residen- sure to lead. The Centers for Disease Superior Court against the Water tial tax issues. However, Macy's had Control reports that lead poisoning is the Resources Control Board (WRCB) for been threatened with a consumer boycott number one environmental problem fac- its alleged failure to protect water quality of its stores by Richard Gann, son of the ing America's children. Children are in the Sacramento-San Joaquin River late Paul Gann, one of Proposition 13's exposed to lead by way of chipped paint, Delta, which flows into and helps flush authors. The business community had toys, drinking water, fertilizers, and even and clean San Francisco Bay. The suit also strongly criticized Macy's chal- "unleaded" gasoline. Even in small seeks to overturn WRCB's May 1 adop- lenge, claiming that a Macy's win in amounts, lead attacks the nervous sys- tion of a Water Quality Control Plan court would mean massive property tax tem and can have a range of effects from which establishes new salinity standards hikes. Although it dodged one bullet, decreased academic performance to to protect municipal, industrial, agricul- Proposition 13 is not completely safe; mental retardation. tural and environmental uses of the the U.S. Supreme Court is currently Along with a coalition of environ- Delta. The environmental groups assert reviewing another petition for certiorari mental, poverty, and civil rights legal that WRCB's Plan, which is the latest filed by residential homeowners chal- groups, NRDC is pursuing Matthews v. step in the Board's four-year-old pro- lenging the validity of the initiative. (See Kizer, No. C90-3620-EFL, its federal ceeding to establish new standards to supra report on CENTER FOR LAW IN THE PUBLIC INTEREST; see also class action calling for enforcement of a protect the waters of the Bay/Delta, fails 2 8 1989 law passed by Congress requiring to adequately protect declining and CRLR Vol. 11, No. 2 (Spring 1991) p. blood testing for lead exposure as part of endangered species, including the chi- and Vol. 11, No. I (Winter 1991) pp. 23 a health screening program for poor chil- nook salmon, striped bass, and Delta and 156 for background information.) dren. (See CRLR Vol. 11, No. 1 (Winter smelt. The groups claim that the new On March 27, the California Supreme v. Eu, 1991) p. 30 for background information standards violate laws enacted to protect Court agreed to hear Legislature on this case.) The legal action names the the Delta estuary's fish and plant life, No. S019660, the constitutional chal- brought by the state Department of Health Services as including the California Endangered lenge to Proposition 140 the defendant, and demands that the Species Act, the federal Clean Water legislature and several individuals and 140 is the term agency comply with federal law by Act, the California Porter-Cologne legislators. Proposition including lead blood assessments and Water Quality Control Act, the Califor- limitation initiative approved by voters treatment as a mandatory part of health nia Environmental Quality Act, and state in November 1990. (See CRLR Vol. 11, No. 2 (Spring 1991) p. 35 for back- screening. NRDC filed a motion for and federal anti-degradation laws. (See ground information.) PLF has intervened summary judgment on May 24; a hear- infra agency report on WRCB for related . ing was scheduled for late June in San in the case on behalf of Peter Schabarum discussion.) Govern- Francisco. The conservationists seek to require and Californians for a Citizen ment, Proposition 140's author and In mid-April, NRDC intervened with WRCB to allow more fresh water to sponsor, respectively. All seven justices other groups in Les v. Reilly, a lawsuit to through Delta. They assert the flow the signed the order and instructed attorneys compel the removal of four pesticides flow of water is necessary to additional to file briefs by May 1, but no date was used on food crops from the market. The restore the ecosystem of the estuary, case is currently before the U.S. Ninth set for oral argument. Some attorneys which is dependent on the mixing of working on the case believe the court Circuit Court of Appeals in San Francis- fresh and salt water. co, and briefing is scheduled over the could hear the case in June and issue a summer. The suit, another step in the decision on an expedited basis-possi- long-running battle between the EPA PACIFIC LEGAL FOUNDATION bly before the start of the new fiscal year when the 38% legislative budget reduc- and environmentalists, is technically a 2700 Gateway Oaks Dr., Suite 200 petition for review of an EPA finding of tion required by Proposition 140 would a "de minimis" exception to a 33-year- Sacramento, CA 95833 take effect. old section of the Food, Drug and Cos- (916) 641-8888 Represented by San Francisco attor- metic Act known as the Delaney Clause, ney Joe Remcho, plaintiffs challenge the The Pacific Legal Foundation (PLF) validity of Proposition 140 on several which strictly prohibits the use of food is a public interest law firm which sup- additives which are found to cause can- grounds, including the following: (1) its ports free enterprise, private property term limit provisions are fundamental cer in humans or animals. (See infra rights, and individual freedom. PLF agency report on CALIFORNIA revisions to the state constitution which devotes most of its resources to litiga- DEPARTMENT OF FOOD AND are properly made through a special con- tion, presently participating in 96 cases AGRICULTURE; see also CRLR Vol. stitutional hearing process-not by way in state and federal courts. 11, No. 2 (Spring 1991) pp. 137-38 for of a mere constitutional amendment in a background information.) Citing this MAJOR PROJECTS: citizens' initiative; (2) Proposition 140's alleged exception, the EPA refused to On June 3 in R.H. Macy & Co. v. inclusion of provisions on term limits for revoke the registration of four pesticides Contra Costa County, No. 90-1603, the legislators, a 38% cut in the legislature's which environmentalists asked the agen- U.S. Supreme Court agreed to determine operating budget, and elimination of the cy to ban (trifluralin, used on spearmint the constitutionality of Proposition 13, legislature's pension plan violates the and peppermint plants; benomyl, used the property tax limit approved by the single-subject rule; and (3) the initiative

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violates the right of self-determination in PLF continues to pressure the State PCL is supported by individual and that it has allowed voters in one part of Bar on its implementation of the U.S. group membership fees, with a current the state to determine who may not rep- Supreme Court's ruling in Keller v. State membership of more than 9,500 individ- resent voters in other parts of the state. Bar of California. (See infra agency uals. PCL established its nonprofit, tax- PLF attorney Jonathan Coupal recently report on STATE BAR; see also CRLR deductible PCL Foundation in 1971, stated that the initiative is "bullet-proof," Vol. 11, No. 2 (Spring 1991) pp. 35 and which is supported by donations from and said that Proposition 140 will result 183; Vol. 11, No. 1 (Winter 1991) pp. 31 individuals, other foundations, and gov- in a more efficient and representative and 150-51; and Vol. 10, No. 4 (Fall ernment grants. The Foundation special- state government. 1990) p. 187 for.background information izes in research and public education PLF is defending a Sonoma County on this case.) At the urging of PLF, 100 programs on a variety of natural resource ordinance designed to halt intermittent attorneys appealed the sufficiency of the issues. It has undertaken several major strikes by public employees. In Sonoma $3 dues deduction allowed by the Bar to projects, including studies of the Califor- County Organization of Public/Private cover the cost of "nonchargeable" activi- nia coast, water quality, river recreation Employees (SCOPE) v. County of Sono- ties-that is, the Bar's use of compelled industries, energy pricing, land use, the ma, PLF hopes the court will uphold the membership dues toward political or ide- state's environmental budget, and imple- ordinance, which was enacted after con- ological activities with which members mentation of environmental policies. tract negotiations broke down and the may disagree. In early May, the Bar county employee labor organization MAJOR PROJECTS: announced its rejection of all 100 In the April edition of its California began intermittent one- or two-day appeals. The challenges must now go to walk-out actions. The ordinance, possi- Today newsletter, PCL issued an "alert" arbitration. If the challengers and the Bar on the proposed Auburn Dam, which is bly the only one of its kind in California, cannot agree on an arbitrator, the Ameri- authorizes department heads to place to be constructed northeast of Sacramen- can Arbitration Association will appoint to on the North and Middle Forks of the striking public employees on administra- one, and conduct the arbitration under tive unpaid leave, and requires workers American River. Ostensibly constructed the Association's rules. to sign written agreements that their for flood control in Sacramento, the erratic attendance will cease before they Auburn Dam would permanently store water, thereby destroying forty miles of are returned to full-pay status. The PLANNING AND the North and Middle Forks. PCL employee group sued the county, charg- CONSERVATION LEAGUE ing that the ordinance interferes with believes it has the potential to be the their right to strike recognized by the 909 12th St., Suite 203 most environmentally destructive project California Supreme Court in County Sacramento, CA 95814 since the New Melones Dam on the Sanitation DistrictNo. 2 v. Los Angeles (916) 444-8726 Stanislaus River. Dam proponents are County Employees' Association, 38 Cal. seeking about $800 million in state and 3d 564 (1985). PLF hopes its participa- The Planning and Conservation federal funds to finance the project. The tion in this case will create an opportuni- League (PCL) is a nonprofit statewide public comment period on the environ- ty for the current Supreme Court to alliance of several thousand citizens and mental impact studies recommending review and reverse the 1985 decision. more than 100 conservation organiza- construction of the dam was scheduled PLF recently represented Security tions devoted to promoting sound envi- to end on June 14. Environmental Systems (SES) in a series ronmental legislation in California. According to the April issue of Cali- of cases challenging SES' proposal to Located in Sacramento, PCL actively fornia Today, groundwater contamina-' build a large toxic waste incinerator near lobbies for legislation to preserve Cali- tion is one of the most important and the densely-populated, low-income fornia's coast; prevent dumping of toxic intractable problems facing California. neighborhood of Vernon, near down- wastes into air, water, and land; preserve State residents rely on underground town Los Angeles. PLF agreed with SES wild and scenic rivers; and protect open well-water for nearly half of their water that the proposed incinerator was a state- space and agricultural land. needs. Yet the state spends only $15 mil- of-the-art hazardous waste disposal sys- PCL is the oldest environmental lob- lion per year on groundwater improve- tem, reputed to be a sound alternative to bying group in the state. Founded in ment. At PCL's request, Senator Robert land disposal. SES had been given state 1965 by a group of citizens concerned Presley introduced SB 959, which would and federal permits to plan the project in about uncontrolled development raise badly needed funds to help clean up 1985 without having to conduct a throughout the state, PCL has fought for polluted groundwater basins, provide detailed environmental impact study. over two decades to develop a body of safe drinking water supplies, and restore However, local and national environ- resource-protective environmental law damaged fish and wildlife populations. mental groups sued on behalf of a local which will keep the state beautiful and SB 959 would impose a small fee on citizens group to invalidate the permits. productive. urban water users to pay for solutions to In February, the Second District Court of Since its creation, PCL has been these problems, raising two to three hun- Appeal issued a unanimous order requir- active in almost every major environ- dred million dollars a year. ing SES to complete a full environmen- mental effort in California and a partici- The new fund provided by SB 959 tal impact statement on the project; the pant in the passage of numerous pieces would make money available for the Supreme Court declined to review that of significant legislation, including the most impoverished of small local water decision on May 2. In mid-May, SES California Environmental Quality Act, districts. The bill would also assist with announced that it has abandoned its the Coastal Protection Law, the act creat- water-dependent wildlife restoration, plans to build the incinerator. (See supra ing the Bay Conservation and Develop- such as the purchase and improvement report on NATURAL RESOURCES ment Commission, the Lake Tahoe of wetlands. At this writing, SB 959 is DEFENSE COUNCIL; see also CRLR Compact Act, the Energy Commission pending on the Senate floor. Vol. 11, No. 2 (Spring 1991) pp. 34 and Act, the Wild and Scenic Rivers Act, and More than 300 people attended PCL's 141 for background information on this laws which enhance the quality of urban annual Legislative Symposium in Sacra- case.) environments. mento on February 16-17. Panel discussion

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topics included environmental politics PCL's successful efforts to qualify and sentation of the Commission's Division and energy conservation; in addition, pass Proposition 116 in June 1990. (See of Ratepayer Advocates. AB 1975 has PCL conducted workshops on such CRLR Vol. 11, No. 1 (Winter 1991) p. passed the Assembly and is pending in issues as water development, wildlife 32 and Vol. 10, No. I (Winter 1990) p. the Senate Committee on Energy and protection, toxics, pesticides, and corpo- 32 for background information.) The Public Utilities. rate responsibility, and held a special $1.99 billion rail transportation bond act On March 13, Public Advocates was session on women in the environmental was the first citizens' initiative devoted awarded $26,781 in intervenor compen- movement. to public transportation in more than sation for its contribution to the PUC's Guest speakers included Douglas fifty years, and was approved by more decision which determined shortcomings Wheeler, Secretary of the state than 53% of the voters. in GTE's women/minority business Resources Agency; Richard Sybert, enterprise (WMBE) program and the Director of the Office of Planning and company's bilingual services from 1986 Research; and State Lands Commission PUBLIC ADVOCATES to 1988. The WMBE program is Director Charles Warren, who is also a 1535 Mission St. designed to promote the use of women- PCL Board member. Wheeler discussed San Francisco,CA 94103 and minority-owned business enterprises by public utilities. The Commission the conservation policies of agencies (415) 431-7430 which report to him-including the found that GTE's WMBE program fell Departments of Fish and Game, Parks Public Advocates (PA) is a nonprofit short of achieving the goal, based on evi- and Recreation, and Water Resources. public interest law firm concentrating on dence presented by PA in GTE's general Sybert told the symposium about the the areas of education, employment, rate case. PA's analysis of GTE's bilin- need for better local and regional plan- health, housing, and consumer affairs. gual services deficiencies persuaded the ning and the Governor's interest in PA is committed to providing legal rep- company to enhance its services. improving the planning process. Gover- resentation to the poor, racial minorities, As legal counsel for the Greenlining nor Wilson has named Sybert as head of the elderly, women, and other legally Coalition (see CRLR Vol. 11, No. 2 a cabinet-level task force examining underrepresented groups. Since its (Spring 1991) pp. 36-37 for information proper state roles to reduce the impact of founding in 1971, PA has filed over 100 on the Coalition), Public Advocates sup- growth on the state's environment. War- class action suits and represented more ported SB 941 (Johnston), which would ren discussed the State Lands Commis- than 70 organizations, including the require a no-frills, no-fault auto insur- sion's intention to broaden its role in NAACP, the League of United Latin ance policy to be offered in California. managing the thousands of acres of state American Citizens, the National Organi- The bill was strongly backed by Gover- lands, including many rivers, to include zation for Women, and the Gray Pan- nor Wilson and Consumers Union, but an aggressive program of environmental thers. opposed by Voter Revolt, Assembly management and enhancement. Speaker Willie Brown, Jr., and the Cali- At the symposium, PCL's David MAJOR PROJECTS: fornia Trial Lawyers Association. On Gaines Award (named after the late On April 18, the California Supreme May 28, SB 941 was rejected by one founder of the Mono Lake Committee) Court denied PA's petition for review of vote in the Senate Judiciary Committee. was presented to Heal the Bay, a south- the Public Utilities Commission's (PUC) (See supra report on CONSUMERS ern California group founded by PCL intervenor compensation practices. PA UNION and ACCESS TO JUSTICE Board member Dorothy Green. Heal the sought judicial relief when the PUC FOUNDATION for related discussion.) Bay has worked to successfully improve slashed its request for nearly $500,000 in On April 11, the Greenlining Coali- the level of treated wastewater that is attorneys' fees to $130,000, just.one- tion praised Bank of America (B of A) discharged into Santa Monica Bay. quarter of what it had expended during for its ten-year Community Reinvest- Senator Gary Hart (D-Santa Barbara) the five years it represented consumers' ment Act (CRA) commitment. (See was named 1990 Legislator of the Year interests in a proceeding involving 900 CRLR Vol. 11, No. 2 (Spring 1991) p. 37 for his "Drive-Plus" bill (SB 431), and 976 telephone services. (See CRLR for background information.) The bank's which would establish sales tax credits Vol. 11, No. 2 (Spring 1991) p. 36 for long-term commitment of about $5 bil- for new cars with lower than average background information.) PA and the lion makes B of A the national leader in emissions and a sales tax surcharge for other public interest law firms which the field, since that amount represents new cars with high emissions. The bill supported PA's petition will now seek three-quarters of 1% of its California was vetoed last year by former Governor redress through legislative amendment assets per year. If all banks and savings Deukmejian and Hart has reintroduced of the Public Utilities Code. PA supports and loan companies followed B of A's it, hoping it will gain the support of AB 1975 (Moore), which-as amended example, $300 billion would be avail- Governor Wilson. Hart has also reintro- May 23-would require the PUC to able for low-income housing and eco- duced SB 260, another bill vetoed last award intervenor compensation attor- nomic development over the next ten year. SB 260 would authorize courts to neys' fees at market rates; prohibit it years. On February 12, the Coalition had place corporations which repeatedly vio- from diminishing an award for failure to filed a protest with the Federal Deposit late environmental laws on criminal pro- prevail on all parts or subparts of an Insurance Corporation against B of A's bation. Senator Hart is a member of the issue, so long as the intervenor has made proposed acquisition of the Bank of New important Senate Committee on Nation- a substantial contribution to the proceed- England. The Coalition complained of al Resources and Wildlife, and has ing as a whole; specify that a finding of an absence of a long-term CRA commit- almost always received an environmen- financial hardship lasts for two years, ment by B of A; however, the complaint tal voting score of 100% from the Cali- thus relieving intervenors of having to was withdrawn after B of A announced fornia League of Conservation Voters. file repetitive petitions for eligibility; its new CRA plan. The bank's resources Finally, PCL was presented with the and restrict the PUC's ability to reduce for CRA will be allocated to: (1) low- National Railroad Passengers' "Golden an award because the intervenor's con- income housing-$50 million annually; Spike" award at the Legislative Sympo- tribution to a proceeding supplements, (2) mortgage financing-$400 million each sium. The coveted award was given for complements, or contributes to the pre- year; (3) consumer credit-$8 million

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per year; (4) government-guaranteed information on funding sources and reg- which allows law students to teach high loans-$40 million annually; and (5) ulations, administrative materials, and school students about basic legal issues minority contracting-$58 million a coordination of training programs. and rights; course material covered usu- year. PIC's Public Interest Users Group ally includes family, constitutional, On March 16, the New York Times (PUG) addresses the needs of computer criminal, and consumer law. Law stu- reported that Robert Allen, chair of users in the public interest legal commu- dents participating in this project are AT&T, has reversed positions on the nity. Members include legal services supervised by certified high school revised federal Civil Rights Act. He has programs in the western region of the teachers; law students are required to gone from opposing last year's measure United States, State Bar Trust Fund teach classes three times per week and (which was vetoed by President Bush) to recipients, and other professionals in attend a weekly seminar for the project supporting a workable compromise ver- various stages of computerization. PUG at UC San Francisco. sion in 1991. Members of the Greenlin- coordinates training events and user Another component of the Street Law ing Coalition took credit for the change group meetings, and serves as a clearing- Project is the court program, in which in position after the Coalition organized house for information shared by public law students interact with convicted a national campaign that deluged Allen interest attorneys. youth offenders who must complete the with thousands of letters and phone calls PIC's biweekly Public Interest court program as a condition of proba- threatening a switch from AT&T to Employment Report lists positions for a tion; the focus of this program is to another long distance carrier. (See variety of national, state, and local pub- instill a sense of responsibility and civic CRLR Vol. 11, No. 2 (Spring 1991) p. 37 lic interest organizations, including duty in the youths assigned to the pro- for background information.) openings for attorneys, administrators, gram. On May 30, Insurance Commissioner paralegals, and fundraisers. There is no The May/June edition of PIC's Legal John Garamendi scheduled a June 18 charge for listing jobs in the employment Services Bulletin announced that Women formal conciliation hearing on PA's report. A job resource library at PIC's in Legal Services' (WILS) Second administrative petition charging Oak- office is available to employment report Annual Conference is scheduled for land-based Western Pioneer Insurance subscribers and to the general public. October or November in southern Cali- Company with race discrimination. (See PIC's public interest law program at fornia; the two-day conference will fea- CRLR Vol. 11, No. 2 (Spring 1991) p. 3 7 the four sponsoring law schools helps ture workshops and roundtables coordi- for background information.) Garamendi prepare students to be effective advo- nated by WILS' working committees on also ordered an August 19 hearing on cates for the poor and other disadvan- subjects such as program priorities, sup- PA's claim that Western Pioneer engages taged members of society. A project port staff concerns, women as managers, in redlining. known as "PALS"-the Public Interest work accommodations for the family, As a member of the Health Access Attorney-Law Student Liaison Pro- and women of color. Those interested in Coalition, PA supports SB 36 (Petris), a gram-matches interested law students the conference may contact Ajabu Cato universal health care bill that would with practitioners in the field for infor- at Legal Aid of San Diego (619-262- guarantee all California residents the mal discussions about the practice of 5557). right to medical treatment regardless of law. The Bulletin also reported that the their ability to pay. At this writing, SB PIC's Academic Project promotes Recorder, a San Francisco legal newspa- 36 is pending in the Senate Committee and facilitates the interaction of law per, has begun a weekly section designed on Revenue and Taxation. Action on the school faculty and legal services attor- to help link public interest organizations bill is not expected until late August. neys in furtherance of law in the public with private attorneys who are interested (See supra report on CONSUMERS interest. Faculty members assist practic- in doing pro bono work. The section, UNION for related discussion.) ing attorneys with legal services cases, entitled "Pro Bono Opportunities," is and staff attorneys help faculty with published every Monday and highlights research and course materials. approximately six public interest organi- PUBLIC INTEREST PIC publishes the Directory of Bay zations in the Bay area. PIC encourages Area CLEARINGHOUSE Public Interest Organizations, public interest groups in other regions to which lists over 600 groups and informa- 200 McAllister St. request their local legal newspaper to tion on their services and fees. PIC also offer a similar section. San Francisco,CA 94102-4978 publishes Public Interest, Private Prac- With a grant from the Public Utilities (415) 565-4695 tice, which lists over 250 for-profit law Commission's Telecommunications firms which devote a substantial portion The Public Education Trust (TET), PIC has estab- Interest Clearinghouse of their legal work to the public interest. (PIC) is a resource and coordination cen- lished a project to assist legal services PIC publishes the Public Interest offices in California learn how they may ter for public interest law and statewide Advocate, a newsletter of its public inter- legal services. PIC is partially sponsored serve their clients more effectively and est law program. The newsletter prints efficiently through the use of telecom- by four northern California law schools: information on part-time and summer Hastings School munications. In the first phase of the of Law, University of positions available to law students. Santa Clara School of Law, Golden Gate It is project, PIC conducted a survey of state published August through April for law School of Law, and University of Cali- legal services offices to assess current students in northern fornia at Davis School of California. Listings telecommunications usage and to dis- Law. The are free and must be received by the Clearinghouse is also funded by the Cal- cover the barriers to usage in legal tenth of the month. ifornia Legal Services Trust Fund and a services. Results showed that about 60% subgrant from the Legal Services Corpo- MAJOR PROJECTS: of the responding offices subscribe to at ration. The April issue of PIC's Public Inter- least one telecom service; however, few Through the Legal Services Coordi- est Advocate newsletter reported on the offices use the telecom services exten nation Project, PIC serves as a general "Street Law Project" offered through sively. According to the legal services resource center for all legal services pro- Golden Gate University, Hastings, and offices, lack of technical expertise is the grams in California and other states in the University of San Francisco School main reason telecommunications ser- the Pacific region. Services include of Law. Street Law is a clinical course vices are underutilized.

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This issue will be addressed in the members nationally, and works actively (D-Salinas), Tom Bates (D-Oakland), next phase of the project. PIC is compil- on environmental and natural resource John Burton (D-San Francisco), Bob ing a guide for legal services groups protection issues. The Club is directed Campbell (D-Richmond), Lloyd Connel- which will provide a framework for by volunteer activists. ly (D-Sacramento), Delaine Eastin (D- managing and using telecommunications In California, Sierra Club has thirteen Fremont), Terry Friedman (D-Los Ange- in legal services offices. Once complet- chapters, some with staffed offices. Sier- les), Tom Hayden (D-Santa Monica), ed, the guide will be mailed to every ra Club maintains a legislative office in Phil Isenberg (D-Sacramento), Richard legal service organization in California. Sacramento to lobby on numerous state Katz (D-Los Angeles), Lucille Roybal- In addition, PIC will offer training issues, including toxics and pesticides, Allard (D-Los Angeles), Byron Sher (D- sessions during July and August. The air and water quality, parks, forests, land Palo Alto), and John Vasconcellos (D- workshops will include an overview of use, energy, coastal protection, water San Jose). Assemblymembers with the telecom options and strategies, and a development, and wildlife. In addition to lowest CLCV scores were Ross Johnson hands-on session introducing partici- lobbying the state legislature, the Club (R-La Habra, 0%), Trice Harvey (R- pants to various computer bulletin monitors the activities of several state Bakersfield, 5%), Marian La Follette (R- boards and computer support services. agencies: the Air Resources Board, Northridge, 5%), Tom McClintock (R- PIC will also include training on how to Coastal Commission, Department of Camarillo, 5%), and Bill Jones use Legal Aid/Net, the legal services Health Services, Parks Department, and (R-Fresno, 6%). communications network. Sixty-five Resources Agency. The Sacramento On March 25, the Timber Association legal services offices have been targeted office publishes a newsletter, Legislative of California rejected a proposal negoti- for the first round of training to help the Agenda, approximately fifteen times per ated by Sierra Club and Sierra Pacific offices take full advantage of the power- year. The Sierra Club Committee on ful telecom services resource. Industries, California's largest private Political Education (SCCOPE) is the According to PIC, within the next timberland owner. The agreement would two years, most California courts will Club's political action committee, which have protected some environmentally have electronic bulletin boards offering endorses candidates and organizes vol- sensitive forests and permitted loggers to filing deadlines, opinions, local rule unteer support in election campaigns. harvest only as much timber as grows changes, scheduling changes, and other The Sierra Club maintains national each year. (See CRLR Vol. 11, No. 2 critical notices. The computer bulletin headquarters in San Francisco, and oper- (Spring 1991) p. 38 for background boards are expected to be critical time- ates a legislative office in Washington, information.) However, four legislators savers as well as information resources D.C., and regional offices in several have introduced bills which would for legal services programs, particularly cities including Oakland and Los Ange- ensure that the Sierra Club/Sierra Pacific as courts switch to "fast-track" systems les. Industries agreement is enacted into law: to alleviate court congestion. The Ninth MAJOR PROJECTS: -SB 854 (Keene), as amended April Circuit Court of Appeals already has In the March 22 edition of Legislative 15, would require long-term timber man- such an electronic system in operation, Agenda, Sierra Club printed the 1990 agement plans for all ownerships over known as Appeals Court Electronic Ser- California Legislators' Environmental 2,500 acres; after ten years, annual cut- vices (ACES). Information on Ninth Cir- Voting Record, which was compiled by ting would be limited to no greater than cuit cases is available as a public service the California League of Conservation 2.2% of harvestable timber. SB 854 is provided by the court in conjunction Voters (CLCV); CLCV calculates legis- pending in the Senate Natural Resources the Federal Judicial Center, the with lators' scores based on their votes on the Committee. research and development segment of most significant and controversial envi- -AB 641 (Hauser), as amended May the federal court system. ronmental bills. CLCV reported that the 20, would require timber harvesting Two bills sponsored by the State plans to include mitigation measures rec- Bar's Legal Services section are pro- partisan gap widened in the 1990 legisla- tive session; Senate Democrats scored an ommended by the Department of Fish ceeding through the legislature. SB 396 and Game which are designed to protect (Petris), as amended May 1, would average of 52 points better than Senate fish and wildlife resources, and establish require judgments in class actions to be Republicans, and Assembly Democrats specified wildlife habitat requirements amended to allocate undistributed outscored their Republican counterparts for the long-term timber management monies paid in satisfaction thereof to the by in average of 70 points. According to plans required by SB 854 (Keene). This State Bar to provide additional funding CLCV, the most crucial decisions are for the provision of legal services; this usually made at the committee level, bill is pending in the Senate Natural bill passed the Senate on May 23 and is where good bills are often killed by Resources Committee. pending in the Assembly Judiciary Com- being sent into a "suspense" file without -AB 714 (Sher), as amended April mittee. AB 56 (Friedman), as amended ever receiving a vote. 29, would prohibit clearcuts and similar May 7, would require increased funding High scoring senators in the CLCV harvests in ancient forests. For other for legal services through punitive dam- survey include Gary Hart (D-Santa Bar- than ancient forests, this bill would limit ages awards; this bill passed the Assem- bara, 100%), Alan Robbins (D-Van clearcuts to 20 acres and require buffer bly on May 30 and is pending in the Sen- Nuys, 100%), Art Torres (D-Los Ange- zones between clearcuts to.be at least as ate Judiciary Committee. les, 100%), Dan McCorquodale (D-San large as the clearcut itself; prohibit Jose, 94%), David Roberti (D-Los Ange- clearcuts within 300 feet of county or les, 94%), Herschel Rosenthal (D-Los state roads, or within 200 feet of non- SIERRA CLUB Angeles, 93%), and Lucy Killea (D-San timber production area; and halt Legislative Office Diego, 93%). Senators with the lowest clearcutting in adjacent areas until new 1014 Ninth St., Suite 201 scores included John Doolittle (R- trees on the clearcut site are six inches in Sacramento, CA 95814 Roseville, 6%), Don Rogers (R-Bakers- diameter, or until 20 years have passed (916) 444-6906 field, 6%), Ed Royce (R-Fullerton, 7%), since the last clearcut. This bill is pend- and Newton Russell (R-Glendale, 12%). ing on the Assembly floor. The Sierra Club has 185,000 mem- Assemblymembers receiving a 100% -SB 300 (McCorquodale), as amend- bers in California and over 530,000 score from CLCV were: Rusty Areias ed May 20, would protect streams and

he California Regulatory Law Reporter Vol. It, No. 3 (Summer 1991) 4 PUBLIC INTEREST ORGANIZATION ACTION

rivers in harvest areas by limiting har- Committee. Finally, SB 520 would offer with approximately 50,000 members vesting; increase citizen input by length- new and strengthened protections for throughout California. About one-third ening to 60 days the timber harvest farmworkers by prohibiting the disper- of its membership resides in southern review period on environmentally sensi- sal, by aircraft or spraying, of 27 California. TURN represents its mem- tive or controversial plans; and reformu- extremely toxic pesticides. This bill is bers, comprised of residential and small late the composition of the Board of pending in the Assembly Labor and business consumers, in electrical, natural Forestry to better reflect the general pub- Employment Committee. gas, and telephone utility rate proceed- lic's interests in protecting forests. The The May 8 edition of Legislative ings before the Public Utilities Commis- new board would be made up of one Agenda reported that most Sierra Club- sion (PUC), the courts, and federal regu- local government representative, two supported bills have been successfully latory and administrative agencies. The industry representatives, three public passed out of various policy committees. group's staff also provides technical representatives, and three conservation (See CRLR Vol. 11, No. 2 (Spring 1991) advice to individual legislators and leg- group representatives. Board members pp. 38-39 for background information.) islative committees, occasionally taking could not have a financial interest in tim- One exception is SB 1143 (Killea), positions on legislation. TURN has berlands or the forest products industry. which would require manufacturers to intervened in about 200 proceedings This bill is pending on the Senate floor. label hazardous household products so since its founding in. 1973. Sierra Club urges its members and the as to encourage consumers not to throw MAJOR PROJECTS: general public to send letters of support the product in the trash or down the In' its summer newsletter, TURN for this package of bills to their state rep- drain; this bill was rejected 5-4 by the reported on the progress of its complaint resentatives. Senate Governmental Organization pending with the PUC which alleges that The Club's May 17 Legislative Agen- Committee on April 30. However, SB Pacific Bell improperly assessed late da praised Governor Wilson for his 1143 was granted reconsideration; a new payment charges and reconnect fees in a "Resourceful California" proposal, a set hearing date has not been set. statewide billing scandal which has of pilot projects, policy positions, and The Sierra Club also supports SB 711 affected thousands of customers. PacBell funding plans on resources issues. A (Lockyer), which would prohibit court has admitted that it wrongfully charged main element of the proposal is a $628 records from being sealed if they contain up to $3.5 million in late payment penal- million bond measure that would be sub- information about defective products or ties last year to customers who had actu- mitted to the legislature and require vot- environmental hazards, and SB 260 ally paid their bills on time, and has been er approval in June 1992. Allocations (Hart), which would allow courts to ordered by the PUC to pay for correction from the bond measure's funds would impose probation conditions on corpora- of the billing problem from sharehold- include $300 million for the acquisition tions which habitually violate the law. ers' profits. However, TURN is request- of the Headwaters Forest and other old- On May 24, the Sierra Club ing that the PUC conduct a full investi- growth forestlands; $38 million for announced its opposition to SB 1062 gation of the billing scandal and impose acquisition of new parklands; $87 mil- (Maddy), which would amend the 1976 a $50 million penalty against PacBell. lion for improvements in parks; $138 California Coastal Act to allow the Walt (See CRLR Vol. 11, No. 2 (Spring 1991) million for restoration, acquisition, and Disney Company to build a $3 billion pp. 39-40 and 175 for background infor- public access projects in the Coastal, seaside theme park-resort by filling in mation.) Tahoe, and Santa Monica Mountains part of Long Beach Harbor. (See infra On April 10, PacBell asked the PUC Conservancies; $15 million for riparian agency report on CALIFORNIA to dismiss TURN's complaint, arguing habitat; $40 million for acquisition and COASTAL COMMISSION; see also that "[it is unnecessary to punish Pacific restoration of wetlands habitat; and $10 CRLR Vol. 11, No. 1 (Winter 1991) p. Bell when it had no intent to seek million for the acquisition and restora- 124 for background information.) The improper financial gain, has acknowl- tion of threatened and endangered bill would amend the Coastal Act to edged its mistakes, and has taken exten- species habitat. exempt Disney from current prohibitions sive steps to correct its errors...." How- Sierra Club supports a three-bill on the filling and dredging of open ever, TURN attorney Tom Long alleges package by Senator Nick Petris (D-Oak- coastal waters. SB 1062, which is also that PacBell managers have known land) which seeks to address data gaps opposed by the Coastal Commission and about the billing problem for years, but associated with registering pesticides, the League for Coastal Protection, failed to correct it because it was not protect school children from toxic expo- among others, is pending in the Senate cost-effective to do so. A prehearing sures, and eliminate 27 commonly used Natural Resources and Wildlife Com- conference to schedule PUC hearings on dangerous agricultural chemicals. SB mittee. TURN's complaint was set for July 19. 550, pending in the Assembly Health On May 29, a fire destroyed the Sier- TURN's summer newsletter also Committee, would require the California ra Club's state headquarters in Sacra- reported that the PUC recently denied Department of Food and Agriculture mento, resulting in damages estimated at AT&T of California's request to raise its (CDFA) to complete the identification of approximately $200,000. Sierra Club has rates for intrastate long distance directo- health problems associated with pesti- established a temporary office in the ry assistance calls from forty cents to cides; CDFA was required to complete same area of Sacramento. fifty cents per call. (See infra agency this project by December 1985, but to report on the PUC; see also CRLR Vol. date has completed only about 20% of 11, No. 1 (Winter 1991) p. 35 for back- the task. TURN (TOWARD UTILITY ground information.) Although the PUC To protect school children from pesti- RATE NORMALIZATION) stated that AT&T had failed to make its cide exposure, SB 926 would require the 625 Polk St., Suite 403 case for an increase, the Commission CDFA Director to cancel the registration San Francisco,CA 94102 also noted that it generally agrees with of school use pesticides containing (415) 929-8876 the overwhelming consumer opposition ingredients known to cause cancer or to the increase, which included TURN's reproductive harm. SB 926 is pending in Toward Utility Rate Normalization formal objection. Among other things, the Assembly Environmental Safety (TURN) is a nonprofit advocacy group TURN argued that AT&T does not

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provide consumers with a long distance In the commentary, Krause stated that scribed information, including an expla- telephone book, so the public has no PUC staff estimates that 60% of the peo- nation of tenant and lessor responsi- bili- alternative to paying directory assistance ple who participated in six public hear- ties; an explanation about the procedures to get an out-of-town number. ings conducted by the PUC opposed the and charges for determining whether a Along with the Utility Consumers' new Caller ID service. The single problem is in the inside wiring or the Action Network (UCAN) and numerous biggest concern of those who testified telephone network; and a description of other public interest organizations, against Caller ID was their ability to any services provided by the utility with TURN celebrated the PUC's May 8 keep their telephone number private. respect to insi6e wiring and whether unanimous rejection of Southern Cali- According to Krause, "Privacy concerns those services are also offered by non- fornia Edison's (SCE) proposed must be addressed by allowing cus- utility providers. TURN supports SB takeover of San Diego Gas & Electric tomers the option of blocking display of 841, which was passed by the Senate on Company. The PUC found that the their phone numbers on a per-line basis. May 16 and is pending in the Assembly merger is not in the public interest, and The phone companies would prefer that Utilities and Commerce Committee. that it would expand Edison's opportuni- blocking be available only on a per-call (See supra report on CENTER FOR ty to purchase power from its basis, which requires the caller to dial PUBLIC INTEREST LAW for related unregulated affiliate, Mission Energy, three or four extra digits before each discussion.) which would boost its own profits while call." TURN also supports several other raising rates for its customers. TURN TURN, UCAN, and Consumer bills currently pending in the legislature, had actively opposed the merger, in part Action are advocating that free per-line including the following: by conducting a grassroots campaign to blocking must be available to customers -SB 1041 (Roberti), as amended May educate southern Californians about the if Caller ID is approved by the PUC. 6, would generally revise provisions long-term dangers of the merger. (See TURN also supports a proposed service relating to the judicial review of deci- infra report on UCAN for related discus- known as "Call Trace," which offers the sions and findings of the PUC, and sion.) most potential to assist victims of phone would authorize judicial review of Com- TURN is participating in SCE's Gen- harassment. According to Krause, "Call mission decisions to take place in either eral Rate Case now pending before the Trace allows the customer to make a per- the California Supreme Court or a court PUC, and is trying to convince the Com- manent record of the caller's phone of appeal. This bill is pending in the Sen- mission to reduce the company's $154 number in the phone company's comput- ate Appropriations Committee. million rate hike request; TURN notes er. Although the customer will not -SB 232 (Rosenthal), as amended that this request follows a 9.3% rate hike receive the information, it will be avail- April 18, and AB 341 (Moore), as which SCE implemented in early 1991. able to law enforcement agencies if the amended May 23, would direct the PUC (See CRLR Vol. 11, No. 1 (Winter 1991) customer files a complaint. This service to require any call identification service p. 34 for background information.) should be available to victims of phone to allow a residential caller, at no charge, TURN contends that SCE is attempting harassment free or at a minimal cost, to withhold, either on an individual basis to charge ratepayers unfair and exces- rather than the $10 per trace that PacBell or a per-line basis, at the customer's sive costs, in part "to pay for...the has proposed." option, the display of the caller's tele- company's costly side-ventures." SCE's After months of study, the PUC's phone number from the individual General Rate Case is expected to be Division of Ratepayer Advocates (DRA) receiving the call. SB 232 is pending on decided by the PUC sometime in announced its findings and recommen- the Senate floor; AB 314 is pending in December 1991, following hearings and dations on Caller ID on June 4. Accord- the Assembly Ways and Means Commit- the submission of a proposed decision ing to DRA, consumers should be tee. by an administrative law judge. allowed to decide whether their phone In a May 26 commentary published numbers are displayed to the parties they in the San Diego Union, TURN Execu- call, and should have the option to UCAN (UTILITY CONSUMERS' tive Director Audrie Krause analyzed choose per-line blocking. DRA further ACTION NETWORK) "Caller ID," a proposed telephone fea- stated that customers should have the 4901 Morena Blvd., Suite 128 ture promoted by PacBell, General Tele- right to unblock and allow display of San Diego, CA 92117 phone, and Continental Telephone. The their number if they so choose. The PUC (619) 270-7880 service would cost approximately $6.50 is expected to decide this fall whether to per month, plus a one-time charge of allow Caller ID and the other proposed Utility Consumers' Action Network about $50 for a small screen which dis- services, and whether to order the (UCAN) is a nonprofit advocacy group plays the phone numbers of incoming accompanying operating rules urged by supported by 52,000 San Diego Gas and callers. (See CRLR Vol. 11, No. 2 TURN and other consumer organiza- Electric Company (SDG&E) residential (Spring 1991) pp. 40 and 175 and Vol. tions. and small business ratepayers. UCAN 11, No. I (Winter 1991) pp. 36 and 145- In the May issue of its Inside Line focuses upon intervention before the 46 for background information on Caller newsletter, TURN discussed SB 841 California Public Utilities Commission ID.) Krause noted that although the ser- (Rosenthal), which would make residen- (PUC) on issues which directly impact vice is being promoted by the telephone tial landlords responsible for installing a San Diego ratepayers. UCAN also assists companies as a solution to obscene or telephone jack and placing and maintain- individual ratepayers with complaints harassing telephone calls, it is not likely ing telephone inside wiring. At present, against SDG&E and offers its informa- to help the victims of such calls, since California law does not specifically tional resources to San Diegans. callers will have the option to block dis- address the respective responsibilities of UCAN was founded in 1983 after play of their numbers. Further, Krause residential landlords and tenants regard- receiving permission from the PUC to opined that Caller ID threatens constitu- ing installation and maintenance of tele- place inserts in SDG&E billing packets. tionally protected privacy rights which phone wiring. SB 841 would also require These inserts permitted UCAN to attract telephone customers have historically telephone corporations to annually pro- a large membership within one year. The enjoyed. vide residential subscribers with pre- insert privilege has been suspended as a

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result of a United States Supreme Court be mitigated as required by section decision limiting the content of such 854(b)(2); and inserts. -after consideration of the seven cri- UCAN began its advocacy in 1984. teria listed in section 854(c) and of their Since then, it has intervened in proposed mitigation, in conjunction with SDG&E's 1985 and 1988 General Rate the section 854(b)(1) and (b)(2) findings, Cases; 1984, 1985, 1986, and 1989 on balance, the merger would not be in Energy Cost Adjustment Clause pro- the public interest. (See infra agency ceedings; the San Onofre cost overrun report on the PUC for related discus- hearings; and SDG&E's holding compa- sion.) ny application. In 1989, UCAN partici- Following the PUC's announcement pated in two rate adjustment proceedings of its decision, UCAN Executive Direc- in which SDG&E was granted increases tor Michael Shames stated that "the for energy costs, rate of return, and infla- words of UCAN did not go unheeded," tion. Since 1988, UCAN has devoted noting that each of the arguments raised much of its time and effort to challeng- in UCAN's briefs were cited by the com- ing the proposed takeover of SDG&E by missioners as bases for rejecting the Southern California Edison Company merger. Shames further stated that he did (SCE). not believe that the utilities would appeal MAJOR PROJECTS: the decision; his prediction proved to be On May 8, UCAN celebrated the correct when Edison announced on May 16 that the two utilities' boards of direc- greatest victory in its eight-year history tors had terminated the merger agree- after the PUC unanimously rejected the proposed takeover of SDG&E by SCE. ment and withdrawn their applications Following almost three years of hear- from state and federal regulatory agen- ings, briefings, and debate, the PUC cies. found that the proposed merger did not On May 9, UCAN and other merger meet the legislative criteria for approval opponents expressed willingness to work with SDG&E executives who had sup- and, therefore, was not in the public interest. Edison and SDG&E spent more ported the merger, if the utility agrees to than $100 million promoting the merger, certain proposals, including the follow- which would have created the largest ing: utility company in the.country. However, -creation of a blue-ribbon utility the combined efforts of UCAN, the San oversight committee that would be Diego Coalition for Local Control, San appointed by the San Diego City Council Diego Mayor Maureen O'Connor, and and the San Diego County Board of numerous other groups were successful Supervisors; and in convincing the PUC that the merger -the appointment of two new SDG&E should not be approved. board members to replace 0. Morris Major credit for the defeat of the Sievert and Charles (Red) Scott, who merger goes to Senator Herschel Rosen- voted against the merger in 1988 prior to resigning from the Board to protest the thal, whbse SB 52 (Chapter 484, Statutes merger. of 1989) added section 854 to the Public Utilities Code. The statute, which explicitly states that a proposed merger must be rejected if it "adversely affect[s] competition," and further requires an express PUC finding that "on balance,...the acquisition or control pro- posal is in the public interest," was the turning point in the PUC's decision. Specifically, the PUC rejected the pro- posed merger on three independent bases: -Edison and SDG&E failed to prove that the merger would provide net bene- fits to ratepayers in the long term-that is, at least several years beyond 2000. In addition, the utilities did not present a ratemaking proposal which would assure that ratepayers would receive the fore- casted long-term benefits of the merger as required by section 854(b)(1); -the merger would have adverse effects on competition among utilities which transmit power and sell their excess energy. Those effects could not

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