http://www.latimes.com/news/local/la-me-legis11sep11,0,6317888.story?coll=la-tot-callocal&track=ntothtml

Gov. plans healthcare veto, talks

By Jordan Rau
Los Angeles Times Staff Writer

September 11, 2007

SACRAMENTO -- The Legislature on Monday passed a Democratic plan to overhaul California's healthcare system, and Gov. Arnold Schwarzenegger announced he would veto it and call a special session this fall to work out a compromise.

Lawmakers also approved measures that would permit more routine testing for the virus that causes AIDS, make it easier for police to trace bullets to the guns that fired them and require fast-food restaurant chains to list the nutritional content of their menu items.

The Legislature is set to adjourn for the year as early as today, but in recent weeks Schwarzenegger and Democratic leaders have moved toward the outlines of a deal on healthcare.

An agreement would be likely to include a requirement that employers provide health coverage for workers or pay a fee to the state, which would then arrange for insurance for those workers. That proposal forms the heart of the Democratic bill.

The deal probably would also incorporate a tax on hospitals that would help California capture an extra $2 billion in federal aid. The California Hospital Assn. endorsed such a tax last week after Schwarzenegger lobbied hospital executives.

An accord may also include a state sales tax increase, an idea put forth last month by some business groups.

Democratic leaders have been engaged in talks with Schwarzenegger about their disagreements, including ways to make insurance affordable to all Californians.

"We have made tremendous progress on this issue during the past session and have found considerable common ground," Schwarzenegger said in a statement Monday announcing his plan to veto the Democratic bill, before it had passed the full Legislature. "That is why I intend to call a special session of the Legislature so that we can finish the job of truly reforming our healthcare system."

Some of the proposals would be approved in the special session, while others that cannot pass the Legislature without Republican support would be placed on the ballot next year for voters to decide.

The special session would allow lawmakers to act before the next legislative year begins in January. It also would have a public relations purpose -- to convey that work is continuing.

Democrats and labor allies hailed the passage of the proposal Monday as proof that the nearly nine-month-long session was not without progress.

The Democratic bill would require employers to spend the equivalent of 7.5% of their payroll on healthcare or pay into a state fund through which workers could buy insurance. Schwarzenegger, who included a 4% spending requirement in the plan he proposed in January, said the Democrats' number was too high, did not spread the costs of coverage widely enough and did not cover everyone.

But the governor and Democrats agree on many other provisions in the 127-page bill that passed Monday. Under the measure, at least 85% of premiums insurers collect would be dedicated to healthcare rather than to profit or administrative costs, and coverage for low-income children and their parents would be guaranteed.

"Is it perfect? Not by a long shot," said Senate President Pro Tem Don Perata (D-Oakland). "Is it better than what we have now? You betcha."

The Democratic proposal has been opposed by business groups that consider the requirements onerous and by some consumer groups and the state nurses' union, which want private insurers removed from the system in favor of state-provided coverage. It has been faulted on all sides of the political spectrum for not doing enough to hold down the rising costs of health insurance.

The bill, AB 8, passed the Senate 22-17. Democrats Lou Correa, a conservative Democrat from Santa Ana, and Sheila Kuehl of Santa Monica, who favors a state-run insurer, voted against it. Sen. Joe Simitian, a Democrat from Palo Alto, did not vote.

Sen. George Runner (R-Lancaster), who voted against the measure, called the vote "an act of political theater," given Schwarzenegger's veto promise.

The Assembly passed the measure 45-31. Two Democrats, Fiona Ma of San Francisco and Loni Hancock of Berkeley, abstained.

The Assembly unanimously approved legislation that could lead to more Californians being tested for HIV, the virus that causes AIDS. Instead of giving written consent to have their blood tested for HIV, people would have such tests done routinely by doctors and hospitals unless they declined.

"This bill is about saving lives," said Assemblywoman Patty Berg (D-Eureka). "Many doctors now don't test because they need informed consent.

"It's just one more thing they have to go through, and so docs sort of shy away from that," Berg said. "But this makes it part of your normal annual exam."

Her bill, AB 682, got only a single "no" vote in the Legislature, from Sen. Dennis Hollingsworth (R-Murrieta). It now goes to the governor, who has not taken a public position on it.

The measure was sponsored by the AIDS Healthcare Foundation, operator of the largest non-government HIV testing program in California.

The group's president, Michael Weinstein, called the legislation "the most important change in public HIV/AIDS policy in years."

His organization estimates that nearly 40,000 Californians don't realize that they are carrying the virus.

Assemblywoman Bonnie Garcia (R-Cathedral City) co-wrote the Berg bill, she said, to help reach the Latina and African American women who make up many of the new cases of HIV. Garcia noted that women don't have to sign consent forms to get breast exams or Pap smears.

"When you look at the face of AIDS today, it could be your mother, your grandmother, it could be your daughter," she said.

"I would hope we would maximize the opportunity when we have their attention in the doctor's office."

In other action Monday:

* A bill to encourage the use of compact fluorescent lightbulbs, rather than less efficient incandescent bulbs, received final legislative approval. The measure would require the state to raise efficiency standards so that by 2018, average energy consumption for indoor lighting throughout the state is cut in half. AB 1109 by Assemblyman Jared Huffman (D-San Rafael) was supported by three major lightbulb manufacturers.

* The Assembly voted final passage of new standards for how businesses handle their customers' credit card information. Under this bill, AB 779 by Assemblyman Dave Jones (D-Sacramento), businesses would be banned from storing sensitive customer financial information, such as passwords and credit card numbers, and would have to limit employee access to such data. The bill would also require businesses to give customers more information about security breaches.

* The Assembly gave final approval to a bill that would require new semiautomatic handguns to have a mechanism to stamp microscopic information on cartridges that could help identify the gun owner. It would take effect with weapons sold starting in 2010. The bill's author, Assemblyman Mike Feuer (D-Los Angeles), said his bill would help solve shooting crimes. Opponents argued that criminals could easily scatter spent cartridges to mislead authorities. The governor has previously vetoed a similar bill.

* Chain restaurants would have to list information about calorie, fat, carbohydrate and sodium content on menus under a bill that cleared the Assembly. Restaurants with menu boards would have to list calories next to food items and provide other nutritional information upon request. SB 120 by Sen. Alex Padilla (D-Pacoima) returns to the Senate for final approval.

* The Senate voted to make it illegal for law enforcement and court employees to release for financial gain criminal file information or photos of people in custody. AB 920, sponsored by Assemblywoman Julia Brownley (D-Santa Monica), goes back to the Assembly for expected final approval.

jordan.rau@latimes.com

Times staff writers Nancy Vogel and Patrick McGreevy contributed to this report.

Copyright 2007 Los Angeles Times