Business Coalition Marks Its Debut With a Defeat

Stymied by this year’s Democratic majorities and some independent-minded freshmen legislators, Sacramento’s heavyweight business lobbyists have decided to join forces to end a legislative slump.

The first of what business leaders promise will be several new business alliances made its Capitol debut this week with less than stellar results. The California Environmental Business Coalition, which is made up of 14 business groups--including the California Chamber of Commerce, the California Manufacturers Assn., the Western States Petroleum Assn. and the Grocery Manufacturers of America--failed to kill a critical environmental bill.

It was one of a package of bills the group has dubbed the “ugly eight” and has targeted for defeat.

The legislation would mandate industry-funded toxic cleanup of waters off San Francisco and Santa Monica, truthful advertising of environmentally friendly products and stiff penalties for environmental pollution, among other things.

The bill that eluded the group’s grasp this week was AB 667, passed by the Senate Judiciary Committee on Tuesday.

The bill, by Ted Lempert (D-San Carlos), would apply the same stiff fines and criminal penalties that exist for marine oil spills--including fines of up to $500,000--to spills affecting the state’s lakes, streams and other inland waters.

Despite their setback, business leaders remain optimistic.

“I think more and more of these kinds of [coalitions] are becoming necessary,” said Alan Zaremberg, executive vice president of the California Chamber of Commerce. “We’re in a situation where there are complicated topics that require a great deal of background and education. With term limits kicking in, many of the legislators haven’t had the opportunity to earn this expertise.”

Jeff Gorell, spokesman for the California Manufacturers Assn., said each member of the environmental coalition would donate staff time and resources but would not contribute money for a separate budget or hire a staff to direct operations.

Later this summer, another business coalition is expected to emerge, tentatively named the California Coalition for Jobs, which will step up the fight against dozens of union-backed bills advancing through the Legislature dealing with overtime pay, sick leave and workers’ compensation benefits.

Hot Bills

* Environmental Safety Standards

Bottom line: Existing environmental standards and toxic-risk assessments are based on adult safety but don’t go far enough, supporters say, to protect children.

Chances: This safety standards bill faces stiff opposition from business interests, including the California Environmental Business Coalition. The bill narrowly escaped the Assembly last month and awaits its first test in the Senate.

Next step: Monday hearing, Senate Committee on Environmental Quality

Details: AB 278 author Martha Escutia (D-Bell) can be reached at (916) 445-8188.

* HMO Directors

Bottom line: Requires HMO directors making decisions about patient treatment and coverage to be licensed California physicians. Consumer advocates want to hold HMO directors accountable to disciplinary action in the state.

Chances: The bill passed the Senate and won approval from the Assembly’s Health Committee. It has the support from a group of health-care consumers and HMO reformers pushing a package of legislation to reform health plans in the state. It is opposed by health plans including Blue Cross, Blue Shield and Kaiser Permanente, and could face a veto from the governor.

Next step: Assembly Appropriations Committee, no date set.

Details: SB 324 author Herschel Rosenthal (D-North Hollywood) can be reached at (916) 445-7928.

Please send Capitol Matters comments to cyndia.zwahlen@latimes.com