HEALTH CARE:

EXPANDING HEALTHY FAMILIES COVERAGE TO PARENTS

AB 1015

Gallegos

Signed by Governor

CU Supported

AB 1015 authorizes the state to cover parents of children enrolled in California's Healthy Families insurance program if federal funds become available. California is currently seeking a federal waiver that would make funds available to cover parents. The expansion of the Healthy Families program could enable an estimated 600,000 parents to obtain coverage.

AB 2900

Gallegos

Signed by Governor

CU Supported

AB 2900 provides 12 months of "continuous eligibility" for children on Medi-Cal as opposed to requiring quarterly filings. This bill was a necessary step for the state to take in order to qualify to use federal funds to cover adults of children enrolled in the Healthy Families insurance program.

SAFEGUARDING MEDI-CAL BENEFITS

SB 87

Escutia

Signed by Governor

CU Supported

SB 87 helps ensure that qualified persons don't unnecessarily lose their Medi-Cal benefits when they transition off welfare. This is an important new law because many people who transition off welfare cash benefits are being tossed off Medi-Cal by counties even though they still qualify for health insurance benefits.

EXTENDING HEALTHY FAMILIES COVERAGE FOR IMMIGRANT CHILDREN

AB 2415

Migden

Signed by Governor

CU Supported

AB 2415 extends eligibility under the Healthy Families Program to legal immigrant children regardless of their date of entry into the United States, subject to the appropriation of funds in the annual Budget Act. Currently, California allows qualified immigrant children who enter the U.S. on or after August 22, 1996, to enroll in Healthy Families. This law was needed because children who enroll or re-enroll in the program this year will lose access to health care after only one year. However, since eligibility is contingent upon available funds in the budget, coverage of legal immigrant children will remain a politically charged issue each year.

DIRECTING TOBACCO SETTLEMENT TO FUND HEALTH CARE

SB 673

Escutia

Died on Senate Floor

CU Supported

SB 673 would have redirected the state's tobacco settlement money to be used to expand health care to uninsured people. This bill was passed by the Assembly but failed to make it out of the Senate because of a computer glitch, which prevented a vote on the measure on the final day of the legislative session.

EXPANDING HEALTHY FAMILIES OUTREACH THROUGH SCHOOLS

AB 1735

Thomson

Vetoed by Governor

CU Supported

AB 1735 would link outreach for the Healthy Families Program and Medi-Cal for Children with the School Lunch Program by requiring school districts to distribute information about the health insurance programs with school lunch applications. This bill was modeled on a pilot project initiated by the Consumers Union's Healthy Kids, Healthy Schools project in collaboration with several state agencies (DHS, CDE, MRMIB, DHS' School Health Connections). This bill would have mandated an outreach mechanism that has proven very effective when used on a voluntary basis, and could have helped increase the number of children who enroll in Healthy Families and Medi-Cal.

INCREASING FUNDING FOR SUCCESSFUL HEALTHY START PROJECTS

SB 179

Alpert

Vetoed by Governor

CU Supported

SB 179 would have required the Superintendent of Public Instruction to award annual sustainability grants of $50,000 to Healthy Start sites that meet certain criteria after their three to five-year operational grants expire and appropriated $1 million for this purpose. Because the Healthy Start program takes a comprehensive approach to child health needs - including access to regular medical care - it plays a significant role in helping children obtain health coverage and access to health care.

SIMPLIFYING MEDI-CAL AND HEALTHY FAMILIES APPLICATIONS

SB 743

Escutia

Died in Appropriations Comm.

CU Supported

SB 743 would have simplified the process of tracking Medi-Cal and Healthy Families Program applications for pregnant women and children and allowed applicants to keep informed about the status of mail-in applications. SB 743 also would have provided the public with much-needed information about Medi-Cal enrollment rates and other basic aspects of the Medi-Cal program. The bill stalled in the Assembly Appropriations Committee; it was never considered by the Senate.

OFFERING EXPRESS LANE ELIGIBILITY FOR CHILDREN

SB 1821

Sher

Dropped by Author

CU Supported

SB 1821 would have directed the Department of Health Services (DHS) to develop and implement a program to streamline and expedite enrollment in Healthy Families or Medi-Cal for children who are already enrolled in any of the following government benefits programs: the School Lunch Program, WIC (supplemental nutrition program for Women, Infants and Children), or Food Stamps. Children enrolled in any of these programs would be deemed income-eligible for Healthy Families or Medi-Cal, and would not have to provide any duplicative or unnecessary information to enroll in these health insurance programs. The proposal, which is sometimes referred to as "express lane eligibility for children," did not specify exactly how DHS would implement this process, and gave the agency six months to craft a program and report back to the Legislature The bill was pulled after funding for staff at DHS and MRMIB was allocated in the state budget to study how best to implement Express Lane Eligibility. A report will be presented to the Legislature by February 1, 2001.

SIMPLIFYING MEDI-CAL APPLICATIONS

SB 1821/AB 1722

Gallegos

Vetoed by Governor

CU Supported

AB 1722 eliminates the "assets test" for Medi-Cal, thus simplifying the application process. This bill was supported by Consumers Union and other health care advocates to help boost enrollment in Medi-Cal.

ALLOWING DIRECT MARKETING BY HEALTH PLANS

AB 2261

Zettel

Dropped by Author

CU opposed

AB 2261 would have allowed direct marketing by health plans to enroll consumers into Healthy Families and Medi-Cal, California's state-sponsored health insurance programs. This bill was opposed by Consumers Union and host of other health care advocates because of the recent history of problems associated with fraudulent direct marketing by health plans. Zettel dropped the measure because the budget bill contained a similar provision.

SB 2050

Speier

Dropped by Author

CU opposed

Among other provisions, SB 2050 would have allowed direct marketing by health plans to enroll consumers into Healthy Families and Medi-Cal. Consumers Union opposed the bill (see above). Speier deleted the direct marketing language from the bill and Consumers Union then went neutral.

REGULATING DISCOUNT HEALTH PROGRAMS

SB 173

Alpert

Died in Appropriations Comm.

CU opposed

SB 173 would have regulated discount health programs. It was opposed by Consumers Union and many other health care advocates because of concerns that the industry's growth would induce employers to forego offering health insurance to their employees. The bill also failed to safeguard against the likelihood that consumers would end up receiving phony discounts from inflated prices that health care providers never charge. The bill died in the Assembly Appropriations Committee.

SB 1181

Polanco

Died in Appropriations Comm.

CU opposed

SB 1181 would have regulated discount health programs. Consumers Union opposed the bill (see above). The bill died in the Assembly Appropriations Committee.

REQUIRING SCHOOL-BASED OUTREACH FOR MEDI-CAL / HEALTHY FAMILIES

SB 2020

Speier

Dropped by Author

CU opposed

Among other provisions, SB 2020 would have required schools to enroll kids into Healthy Families or Medi-Cal, but provided no money for them to support this effort. Consumers Union opposed the bill because of the lack of funding. Speier removed the burdensome requirements on schools from the bill and Consumers Union went neutral.

CREDIT & FINANCE:

PROVIDING CONSUMERS ACCESS TO THEIR CREDIT SCORES

SB 1607

Figueroa

Signed by the Governor

CU Supported

SB 1607 requires lenders to provide consumers with their credit score, the credit information used to compile their score, and an explanation of how credit scores work in the home loan approval process. The law was necessary because consumers currently don't have the right to know what information is used to compile their credit score and how it impacts their ability to secure a home loan.

OFFERING DIRECT DEPOSIT FOR WELFARE RECIPIENTS

SB 962

Escutia

Signed by the Governor

CU Supported

SB 962 gives cash welfare recipients the option of direct deposit of their monthly benefits into a bank account. Counties that do not offer direct deposit to their employees are exempt from the requirement. Many California banks offer a checking account with no monthly fee or a minimal fee for customers with direct deposit. Providing a direct deposit option for welfare recipients allows them to avoid the high costs associated with check cashing establishments and gives them the opportunity to establish a relationship with the mainstream banking system.

STRENGTHENING CALIFORNIA'S AUTO LEMON LAW

SB 1718

Sher

Signed by the Governor

CU Supported

SB 1718 will make it easier for consumers who have purchased a defective new car to seek protection under California's auto lemon law. The new law allows consumers to seek protection under the law after two repair attempts fail to fix a defect that makes their car unsafe to drive. Prior law required four repair attempts. The bill also extends the lemon law to small businesses that have no more than five vehicles registered with the state. This change will benefit the many consumers whose job requires the use of a car, such as real estate agents and salespersons.

PROTECTING IDENTITY THEFT VICTIMS

AB 1897

Davis

Signed by the Governor

CU Supported

This new law allows individuals who suspect that they are victims of identity theft to initiate a police investigation. Individuals who suspect that their identifying information has been used to commit a crime may ask the court to determine their innocence in an expedited manner.

ASSISTING NORTHRIDGE EARTHQUAKE VICTIMS

SB 1899

Burton

Signed by the Governor

CU Supported

This new law extends the statute of limitations for insurance claims filed by victims of the Northridge earthquake. Following an investigation, the California Department of Insurance determined that many consumers were unfairly denied compensation by their insurance companies for legitimate claims for damage to their homes by the Northridge earthquake. However, the Department levied only meager fines against the companies without offering consumers any genuine relief.

REFORMING INSURANCE DEPARTMENT PRACTICES

SB 1524

Figueroa

Signed by the Governor

CU Supported

This law requires that any fines, penalties, fees, and costs resulting from compliance or enforcement actions taken by the Insurance Commissioner be deposited in the appropriate fund as provided by law. In addition, it directs money collected from enforcement and compliance actions to be used for appropriate purposes only. The law was enacted in response to the controversial actions taken by the Department under former Commissioner Chuck Quackenbush. During Quackenbush's tenure, insurance companies that low-balled Northridge earthquake claims were compelled to make donations to foundations with no connection to earthquake issues in lieu of fines.

REGULATING PAYDAY LOAN BUSINESSES

SB 1501

Perata

Died in Assembly Banking

CU supported

SB 1501 would have reduced the fee for payday loans from $17.50 to $12 for a $100 loan. But most significantly, it would have helped consumers get out of perpetual debt by creating a partial payment plan for payday loans. Under the bill, a consumer who takes out a consecutive payday loan (within 72 hours of the previous transaction) would pay $12 per $100 borrowed, but would automatically qualify to participate in a plan that allows them to make partial payments over a series of four paydays. In addition, SB 1501 would have required industry licensing, improved disclosure, stronger penalties for violations, and better industry record-keeping and reporting. The bill passed in the Senate but died in the Assembly Banking Committee.

PROTECTING INTERNATIONAL MONEY TRANSMISSION CUSTOMERS

AB 2420

Firebaugh

Died in Senate Rules Comm

CU supported

AB 2420 would have addressed the issue of hidden fees and commissions in the international money transmission industry by requiring licensees to offer consumers the rate of exchange at which the licensee purchased the currency. All costs to the consumer would have been included in the fees and commissions charged by the licensee rather than hidden in the exchange rate. AB 2420 passed in the Assembly, but it was amended in the Senate to allow money transmitters to charge a spread between the wholesale and retail rates as long as this was disclosed to consumers. The bill died in the Senate Rules Committee.

AB 143

Calderon

Died in Senate Finance Comm

CU supported

AB 143 would have addressed the issue of hidden fees and commissions in the international money transmission industry by increased disclosure so that consumers would better understand the differences between the wholesale rate of exchange and the retail rate that they are offered in addition to any fees and commissions. AB 143 passed in the Assembly and was merged with AB 2420, which died in the Senate Rules Committee.

SAFEGUARDING CONSUMERS' FINANCIAL PRIVACY

SB 1337

Speier

Died in Senate Finance Comm

CU supported

SB 1372

Leslie

Died in Senate Judiciary Comm

CU supported

AB 1707

Kuehl

Died in Assembly Banking Comm

CU supported

All three bills would have protected consumers by requiring banks and other financial institutions to obtain a customer's permission before sharing or selling a customer's private financial information. Because of new federal legislation passed last year, banks can share a customer's personal financial information with an affiliated insurance company or brokerage firm or sell them to third parties without obtaining the consumer's approval. The federal law requires financial institutions to provide customers with an "opt out" opportunity before selling customer data to unaffiliated third parties. But it says nothing about obtaining consent in order to share customer data with bank affiliates. These bills would have required customers to "opt-in" before their private financial information could be shared or sold by financial institutions.

PROTECTING IDENTITY THEFT VICTIMS

SB 1767

Bowen

Died in the Banking Committee

CU Supported

SB 1767 would have prohibited the use of social security numbers as a means of identification and record keeping. It would have allowed a consumer to put a hold or block on any release of their credit report until the consumer affirmatively allowed release. The bill passed in the Senate but died in the Assembly Banking Committee.

REQUIRING IMPROVED CREDIT CARD DISCLOSURE

AB 1963

Hertzberg

Vetoed by Governor

CU supported

AB 1963 would have required credit card companies to disclose to consumers the total cost they would incur and the total amount of time it would take to retire their debt if they made the minimum monthly payment on their bill. For example, consumers who owe $2,500 on their credit card at 17% APR would learn that it would take 363 months to pay off their bill for a total cost of $7,773 if they made a monthly payment equal to 2 percent of their balance. The bill was supported by Consumers Union because it would help consumers better understand the true cost of long-term credit card debt. AB 1963 was passed by both the Assembly and Senate but vetoed by the Governor.

REFORMING THE INSURANCE DEPARTMENT

AB 481

Scott

Vetoed by Governor

CU supported

AB 481 would have required the Department of Insurance (DOI) to focus on restitution to victims of unfair claims settlement practices arising from DOI enforcement actions. The bill was in response to findings that ex-Commissioner Chuck Quackenbush failed to use any of the $6 million in settlement funds obtained from insurance companies to benefit Northridge earthquake victims.

REGULATING PAYDAY LOAN BUSINESSES

AB 1973

Wesson

Died in the Senate Judiciary Comm

CU Opposed

AB 1973 was a weak payday loan reform bill supported by some of the industry's lenders. It would have allowed repeat borrowers to participate in a partial payment plan, but only if they sought assistance through a credit counselor. This provision violated the National Foundation of Credit Counselors Code of Ethics, which forbids re-payment plans that single out one creditor for repayment while others go unpaid. It also would have violated the credit counselor's ethics to create a repayment plan that gives payday lenders priority over paying for basic necessities like food and rent. The bill also failed to provide any regulatory requirements for the industry like the licensing, auditing, bonding, and reporting requirements that other small consumer finance lenders must follow.

OTHER ISSUES

ENCOURAGING INTEGRATED PEST MANAGEMENT AT SCHOOLS

AB 2260

Shelley

Signed by Governor

CU supported

This new California law that will help protect children from pesticide hazards at their schools. It encourages schools to rely on integrated pest management (IPM) programs that emphasize least-toxic alternatives to chemical pesticides. It also requires schools to notify parents, children, and staff when pesticides are applied at school.

PROTECTING CONSUMERS FROM LINDANE HAZARDS

AB 2318

Lowenthal

Signed by Governor

CU supported

The WCRO helped win passage of a new California law that prohibits the sale of Lindane in head lice shampoos in California. Lindane is a known neurotoxin and suspected carcinogen that does not biodegrade easily in the environment. The ban will become effective in January 2002.

IMPROVING BOTTLED WATER LABELING

AB 2723

Wesson

Signed by Governor

CU supported

This new California law requires companies selling bottled water in the state to disclose the source of the water and meet safe drinking standards established by the state and U.S. Environmental Protection Agency.

INCREASING AGE AND WEIGHT REQUIREMENTS FOR CHILD CAR SEATS

SB 567

Speier

Signed by Governor

CU supported

Beginning in January 2002, this new law makes it illegal to allow young children (those under six years or under sixty pounds) to ride in automobiles unrestrained by car seats. Current law requires parents to restrain children under four years old or under forty pounds in car seats. But it's not uncommon for children over four to slip out of seat belts and suffer serious injuries during car accidents. The law increases the accountability of adult drivers who allow their child passengers to ride unrestrained by increasing the fine for child seat violations to $100 for the first violation and $250 for subsequent violations.

IMPROVING MATTRESS FLAMMABILITY STANDARDS

AB 1866

Dutra

Died in Senate Appropriations

CU supported

AB 1866 would have required that all polyurethane foam mattresses sold in California meet the TB129 flammability standard, otherwise known as the prison mattress standard. This measure would have required that polyurethane mattresses used in dormitories at the University of California, for example, meet the same standard for open flame retardation as those sold for use in California's prisons. This bill passed in the Assembly, but died in the Senate Appropriations Committee because there were no funds for implementation in the new fiscal year, even though the bill would not have become law until 2003.

OUTLAWING FORCED MOLTING OF LAYING HENS

AB 2141

Lempert

Died in Agriculture Committee

CU supported

AB 2141 would have outlawed the forced molting of laying hens, a practice used by more than 60 percent of the industry nationwide to increase egg production. The primary method of inducing a molt is through the removal of all food, and in some cases, all water, from the hens for 10-14 days. This manipulates the hormones of the hen to increase their production of eggs. Consumers Union supported the bill because the practice of forced molting produces stress and compromises the immune system of laying hens, which increases the likelihood and severity of the bacteria Salmonella enteritidis (Se) in their eggs. The bill died in the Assembly Agriculture Committee.

STUDYING NUTRITIONAL VALUE OF GENETICALLY ENGINEERED FOOD

SB 1514

Hayden

Vetoed by Governor

CU supported

SB 1514 would have required the Superintendent of Public Instruction to convene an advisory task force to explore ways to inform parents about the nutritional value of all food served in public schools, including genetically engineered foods. It was passed by both the Assembly and the Senate but vetoed by the Governor.

WEAKENING INTEGRATED PEST MANAGEMENT DEFINITION

AB 2796

Reyes

Died in Env. Quality Committee

CU supported

This bill would have weakened efforts to minimize pesticide use by defining Integrated pest Management to allow the use of chemicals as a first line of defense against pests. State laws regarding IPM currently define it so pesticides are allowed only after least toxic alternatives fail to control a pest problem. The bill passed in the Assembly but died in the Senate Environmental Quality Committee.

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization, serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition, and other consumer concerns. Since 1936, our mission has been to test products, inform the public, and protect consumers.