Brown Plans to Seek Compromise Bill on Car Insurance

Faced with six proposed automobile insurance ballot initiatives, Assembly Speaker Willie Brown said Thursday that he plans to call a committee of the whole to discuss the subject and try to come up with an acceptable compromise bill.

Although private talks are going on now with industry representatives and other interested groups, Brown (D-San Francisco) said, “I think the idea of a committee of the whole is a perfect one.”

He added that some participants are “optimistic,” but others are “pessimistic” about the chances of legislation emerging as a result of the talks.

“I am neither,” Brown said. “This would be a good forum.”

Assembly Democratic and Republican leaders are scheduled to meet Monday to decide the details of the agenda of the committee of the whole on automobile insurance controls. It probably will be held within a month.

An Assembly committee of the whole--in which the entire house convenes as a committee and holds hearings--has been used in the past with witnesses appearing to discuss such controversial issues as Mediterranean fruit fly spraying, Cal/OSHA and campaign finance controls.

A Senate committee earlier this year reported that the cost of automobile insurance to Californians has gone up an average of 40.1% in the last 2 1/2 years as contrasted with a nationwide average increase of 28%. The rise in rates has sparked a wide range of proposals, including lower premiums, rate regulation a no-fault system and a ceiling on damage recovery.

Wednesday, one of the groups that had proposed a ballot initiative, the Consumers Union, announced that lack of time and money to circulate petitions had forced it to abandon its efforts to qualify it for the November election. But at the same time, the insurance 1768842357qualification of a second initiative of its own. That left the total of pending initiatives standing at six.

The idea of the automobile insurance committee of the whole was suggested by Assemblyman Frank Hill (R-Whittier), who said, “I don’t think it makes sense that we have all of the big Goliaths going to the initiative process, the trial lawyers, the Consumers Union and the insurance companies.

“I don’t feel comfortable with some sort of a back-room deal where they all get together and cut their deal and we are supposed to buy into it. Let’s have a full and open hearing and do it right here. If they can’t defend their positions in public, then they shoul1684940660compromise down our throats.”

An opponent of the committee idea, Assemblywoman Maxine Waters (D-Los Angeles), said, “I really believe that this Legislature has played with this issue for too long, and I don’t know what good the committee of the whole will do.

“The people of this state have a right to be angry. Let the ballot initiatives go forward and let the people vote. Leave it alone and don’t play with it.”

Another foe, Assemblyman Patrick Johnston (D-Stockton), the chairman of the Finance and Insurance Committee who is participating in the private talks, said he believes the committee of the whole is “premature” unless they do not succeed. Johnston suggested a wait-and-see April 15 decision deadline after the lawmakers return from their Easter week recess.