ASSEMBLYMAN HARMAN RECEIVES AN "A" FROM CAL-TAX

"Wall Street remains concerned...Everyday we don't act, we loose millions.."

Cost of business in California is 32 percent higher than the national average

For every one manufacturing job, 2.5 more jobs are created - the highest "multiplier" of any sector

In January, 2900 manufacturing jobs were lost in California.
To learn more, go here.

The Harman Report
This publication is a service of Assemblyman Tom Harman.
www.tomharmanassembly.com

Welcome to my newsletter...

Welcome to Harman's Capitol Report, an electronic newsletter specifically designed to keep
you better informed of what is happening in Sacramento and throughout the 67th Assembly District. Through this medium, I hope to keep in touch with you on a regular basis and provide an opportunity for your feedback. By having such direct input on issues concerning the citizens of the 67th District,
I will be better equipped to serve you in the State Assembly. I look forward to hearing from you.
-TOM HARMAN
 

Arbor Day

Renew Commitment to Conserving Natural Resources on Arbor Day
An Op-Ed by Assemblyman Tom Harman

The week of March 7th through the 14th marks the celebration of Arbor Day in California, a time when we renew our commitment to preserving natural resources by planting trees in our communities. Arbor Day was first celebrated in 1872 by the editor of Nebraska's first daily newspaper, J. Sterling Morton, who was concerned about the lack of trees in his newly-adopted home. The first observation of Arbor Day 132 years ago resulted in more than 1 million trees being planted across Nebraska.

Decades later, America has undergone a dramatic transformation from a rural society where land was open and available as far as the eye could see, to the urban, high tech society of today. While our demands for natural resources have changed over the years, our commitment to conserving natural resources remains strong. Planting new trees on Arbor Day ensures that future generations may enjoy a pristine environment with their own children.

Trees are not just a source of beautification for our neighborhoods and parks, they are also important to ensuring we have clean air to breathe, and abundant energy to run the information superhighway. Planting trees can reduce the erosion of topsoil by rain and wind, necessary to ensure abundant harvests so our nation's farmers can feed the world. Trees are also an important source of shade, cooling temperatures in warm climates, and a producer of clean oxygen for all of us to breathe.

The pride we have in conserving our natural resources so that future generations may enjoy blue rivers, green grass, and trees that extend to heaven knows no limit. A world filled with abundant neighborhood parks, nature preserves, clean rivers and streams, and recreational areas the entire family can explore together allows us to pass on the wonders of nature for our children and grandchildren to enjoy.

To ensure a safer, cleaner, healthier future, it is important that we take responsibility for our communities, becoming stewards of the environment in our own backyard. It is incumbent upon all of us to take responsibility for cleaning up litter on local beaches, refraining from dumping waste in rivers and streams, and planting new trees in our neighborhoods on occasions like Arbor Day.

In 1885, Morton spoke to the people of Nebraska City, Nebraska at a local celebration commemorating Arbor Day. In his speech, he encouraged the masses to "endeavor then by our words on 'Arbor Day' - and all other opportune occasions - to embellish the world with plant life, trees, flowers, and foliage, as to make our earth homes approximate to those which the prophets, poets, and seers of all ages have portrayed as the Home in Heaven." As we celebrate Arbor Day 132 years later, let us all be inspired by Morton's word to plant a tree in our community on this day.

For more information on what you can do observe Arbor Day in your community every day, contact the National Arbor Day Foundation at www.arborday.org
 

Election Recap

By passing Propositions 57 and 58 on Tuesday, Californians sent a clear message that they want fiscal responsibility restored to the budget. In addition, by rejecting Proposition 56 the people have shown that raising taxes on hard-working Californians is not acceptable.

Governor Schwarzenegger's leadership made the difference and his efforts ought to be applauded. Never again will politicians spend California into deficits and drive us to the brink of bankruptcy. We've cut up the credit cards, and now we need to take the next steps to close the budget gap.

Standard and Poor's latest report that they have placed our Bond Ratings on Creditwatch Positive also encourage me. That means that Wall Street is watching closely, and while we have a long way to go they're optimistic that we're slowly beginning to fix the problem. But we need to take action now. Wall Street remains concerned that no action has been taken on the Governor's $1.9 billion in mid-year savings. Everyday we don't act, we lose millions of dollars.

With the passage of Prop 57 and 58, the Governor's personal stock continues to soar. Should the Legislature continue to listen to special interests rather than the clear voice of the people, Governor Schwarzenegger will simply go back to the voters with workers' compensation reform that cleans up the waste, fraud and abuse in that system, just as he has begun to do with the budget crisis.
 

Workers' Compensation Update

In an effort to identify necessary changes to the state's workers' compensation system, the Senate Labor Committee held a hearing last week focused on the delivery of medical care in the workers' compensation system. The Workers' Compensation Insurance Rating Bureau (WCIRB) estimates that the statewide cost for medical treatment in California will be $13.8 billion in 2004. Medical costs in claims involving disability exceed the national average by more than 40 percent. These costs have grown exponentially in the last few years, far outpacing general health care inflation.

Governor's Reform Proposals on Medical Care:
The Governor's proposals, as contained within Assembly Bill 1 4X (Maldonado) and Senate Bill 3 4X (Poochigian), seek to reform the delivery of health care in the system in a manner which will improve the quality of care, ensure access to timely treatment, and reduce conflicts in the system that lead to very costly litigation. Additionally, the Governor's proposals do the following:
Requires Employers To Provide All Medically Necessary Care - Would define the requirement for workers' compensation to "cure or relieve" a job-related injury by requiring the worker to receive all treatment that is medically necessary. Medical necessity is defined as "high-grade, evidence-based" medical guidelines, which are "clinically appropriate and effective" and "not more costly than alternative treatment likely to produce equivalent results." This requirement, which is used in other high quality medical care systems, will ensure that injured workers receive all necessary care but reduce costs by eliminating treatments that nationally recognized medical organizations deem unnecessary or ineffective for the specified injury.
Independent Medical Review - Would use independent, medically qualified physicians to settle disputes over medical treatment. The physician-reviewer's decision would be binding. This change would allow qualified physicians, instead of state workers' compensation judges, to make medical decisions. This system is used in group health programs and is recognized as a fair and cost-effective way for treatment conflicts to be resolved. It will result in more timely resolution of these conflicts, which in turn will result in injured workers receiving medical care in a more timely manner.
Improves the HCO system - Currently, the state has authorized the use of Health Care Organizations (HCO) which are group health providers who provide care for injured workers. The current program has had limited success. This proposal seeks to expand the HCO option by making the licensing requirements similar to managed care licensing standards. Additionally, employers that use an HCO and that provide healthcare to their employees would be able to coordinate care and reduce costs.
Repeals Remaining Treating Physician Presumption - Last year the Legislature sought to repeal the failed treating physician presumption for injuries occurring after January 1, 2004. This proposal seeks to repeal the treating physician presumption for pre-designated physicians and chiropractors.
Eliminate or Reduce Role of Dueling Doctors - The Governor's proposal seeks to eliminate the "dueling doctor" phenomenon by requiring both the injured worker and the employer to approve any change of doctor after 30 days.

Legislative Hearings Postponed Indefinitely:
Following the hearing, Democrat leadership announced that there would not be additional hearings before the March 1st deadline, which the Governor imposed on the Legislature prior to taking an initiative directly to the people. While there is an enhanced level of interest by stakeholders in reaching a legislative solution, at this time the Governor will likely have to start his initiative in order to demonstrate his seriousness in making California competitive by significantly reforming workers' compensation.
 

Legislative Update

I have listed below a sample of legislation which I have introduced for this 2004 legislative session.  These measures represent a variety of needs which I believe should be addressed.  I welcome your comments on these measures as well as suggestions for future legislation.

AB 1848 if enacted, would authorize any person to record a certification of trust that relates to an interest in real property.

AB 1883 would permit a court to require a bond when it is necessary to protect the interests of persons having an interest in the trust estate.

AB 1910 would provide that for purposes of determining rights to property to be distributed upon the death of a decedent, a child of the decedent conceived after the death of the decedent shall be deemed to have been born in the lifetime of the decedent if the child or his or her representative proves by clear and convincing evidence
that specified conditions are satisfied.

AB 1961 if enacted, would require that a provider of lifeguard or marine safety protection intended to prevent the drowning or injury at a natural aquatic area, as defined, meet the standards recommended by
the United States Lifesaving Association.

AB 2378 proposes to require the board to establish and administer the Riparian Protection Fencing Program to fund fencing projects that protect sensitive riparian areas from damage caused by nearby grazing
of cattle and other livestock.
 

TOP STORIES OF THE WEEK

This section is designed to provide a quick recap of the week's top stories to keep you informed on what's happening in California state government and politics.  The following articles are not necessarily the views of Assemblyman Harman and are provided for informational purposes only.

Budget

Time For A State Estate Sale
http://www2.ocregister.com/ocrweb/ocr/article.do?id=83799 
When families face a financial crisis like a layoff or pay cut, they take steps to live within their means by eliminating items like expanded cable television service, cell phones, restaurant dining and expensive trips to the mall. Families in tough times also question whether they really need that extra car, boat or RV. This is "kitchen-table economics," and state government needs to apply it. Gov. Schwarzenegger made clear in his first budget proposal that he plans a review of state government to make sure that Californians are spending tax dollars on the most efficient practices and the highest priorities.

Business & Labor

Governor Turns His Attention To Troubled Workers' Comp
http://www.latimes.com/news/local/la-me-bonds4mar04,1,6719131.story?coll=la-headlines-california 
Leaving little time to savor passage of two ballot measures, Gov. Arnold Schwarzenegger devoted Wednesday to possibly an even more complex and daunting task: overhauling the state's costly workers' compensation system. Schwarzenegger met privately in the Capitol with the four Republican and Democratic legislative leaders, briskly pivoting to an issue that has long eluded compromise in Sacramento and is widely blamed for chasing business to states where insurance costs are stable.

Education

55 - Voters Appear Evenly Split On Schools Measure
http://www.contracostatimes.com/mld/cctimes/news/8093304.htm 
California voters were evenly split Tuesday over whether to approve the second major injection of cash into the state's aging and overcrowded schools in less than two years. Proposition 55, a $12.3 billion school facilities bond measure, took a slight lead early this morning with nearly three-fourths of precincts reporting. East Bay schools are counting on as much as $771 million from the state bond measure for projects such as the replacement of seismically unsafe El Cerrito High School, air conditioning in the Mt. Diablo school district and three new schools in Brentwood, the fastest-growing district in the state.

Election Results

Rohrabacher Takes Big Lead Over Dornan
http://www.latimes.com/news/local/politics/cal/la-me-congress3mar03,1,4917818.story?coll=la-home-headlines 
In a clash of prominent conservatives, veteran Rep. Dana Rohrabacher held a commanding lead over former Rep. Robert K. Dornan on Tuesday night in early primary returns for Rohrabacher's congressional seat in coastal Orange County. The entrenched Huntington Beach Republican was ahead by an 8-1 margin in the contest against Dornan, an outspoken, often bombastic politician whose ardent support of military spending and the aerospace industry earned him the nickname "B-1 Bob."

Campbell Leading Maddox In 35th District
http://www2.ocregister.com/ocrweb/ocr/article.do?id=83791 
John Campbell was comfortably leading fellow Republican Assemblyman Ken Maddox on Tuesday in the Republican race to replace termed-out state Sen. Ross Johnson and represent a coastal district that reaches from Seal Beach to Dana Point. Campbell, 48, is an accountant and former car dealer who was elected to the Assembly in 2000 and was a key economic adviser to Gov. Arnold Schwarzenegger in the recall election. His Assembly district includes much of the more affluent southern portion of the Senate district, and he has been a champion for business interests.

Touch Screen Glitches Reported
http://www.mercurynews.com/mld/mercurynews/news/8093475.htm 
Voters using controversial electronic voting machines reported sporadic glitches in Tuesday's elections, most of which appeared to have been caused by human error. Touted by election officials as an easy-to-use alternative to error-prone punch-card systems, the new touch-screen systems were widely used in California, Georgia and Maryland. The most serious problems appeared to have occurred in San Diego and Alameda counties, where the voting was delayed for several hours while poll workers struggled with ``encoders'' that program the cards each voter initially inserts into a voting machine.

Lungren Overtakes Oller, Making Race Too Close To Call
http://www.sacbee.com/content/politics/story/8396026p-9325631c.html 
Former state Attorney General Dan Lungren and state Sen. Rico Oller were locked early today in a hotly contested primary battle for the Republican nomination to succeed Rep. Doug Ose, a race unlikely to be decided until all absentee votes are counted. Mary Ose, the Sacramento millionaire who largely self-financed her campaign to succeed her brother, was trailing in third place. "It looks like it will not be me," Mary Ose said in an interview. "I will support whoever the winner is. I amproud of our campaign and the message we carried. I think we made a difference."

Energy and Environment

State Gas Prices Near Record
http://www.sacbee.com/content/business/story/8395877p-9325565c.html 
Gas prices are zooming into record territory again in California, and while there may be some easing in the near future, some experts believe the state is entering a more or less permanent state of high prices. The immediate causes of the state's $2-plus gas include another series of refinery production problems, higher crude oil costs and the annual change-over to summertime blends of gasoline. The summer gas formula, mandated by law to conform to clean-air standards, is more expensive to produce.

Health & Human Services

Inexpensive Drugs From Canada Spur Many To Defy FDA
http://www.mercurynews.com/mld/mercurynews/news/8103037.htm 
So the FDA is warning consumers away from Canadian pharmacies, and American drug companies threaten to cut off shipments to Canada if they continue to sell to Americans. Carol Kleyensteuber couldn't care less. She saves thousands of dollars each year by buying the cholesterol drug Zocor and other medications from Canada, where popular brand-name drugs are often sold at half the price found in the United States. And she's breaking federal law.

Public Safety

Guards' Raises Could Be Higher Than Expected
http://www.latimes.com/news/local/la-me-prison4mar04,1,7419399.story?coll=la-headlines-california 
As state senators convene a hearing today into the controversial labor contract for California prison officers, newly released records show that pay raises for guards could soar beyond the highest previous estimate of 37%. As a result, lawmakers could be forced to find another $210 million in this fiscal year and next, as California faces $17 billion in shortages. The documents show that officials understated the cost of the contract in public statements, legislative testimony and an analysis provided to lawmakers who were considering approval of the contract in 2002.

Politics

Davis Aide Charged In Probe Of Oracle Software Pact
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/03/03/BAG7F5CP691.DTL 
State prosecutors filed charges Tuesday against a former senior official in former Gov. Gray Davis' administration, alleging she doctored documents related to a $95 million government contract awarded to the Oracle Corp. but later rescinded. State Attorney General Bill Lockyer said at a news conference that no additional charges were expected and that no crimes had occurred in the actual awarding of the contract. It was not known whether the FBI, which also launched a preliminary investigation of the matter, had reached any conclusions about the contract's handling.

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I hope you find this information useful and thank you for your interest.