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_ �.A-ZD Legislative Bill Action ............................................................... State Board of Forestry and Fire Protection could local government, either through its own seif- maintain updated advice or guidelines for local insurance policy or through an outside insurance governments with state responsibility areas or provider, liable for the inflated phantom medical very high fire hazard severity zones on a website, bills. And, it would do so without an opportunity for without the additional costs and time delays medical review to determine the appropriateness imposed by the command and control model of of those costs. state government. Staff: Dan Carrigg; Status: Gov; Position: Request for VETO. In addition, SB 494 is premature. If enacted, it would prejudge the outcome of the Parnell case ADMINISTRATIVE SERVICES (Parnell v. Advenfist Hea/th Systems), which is now before the Supreme Court. Finally, if enacted, SB 494 could set a precedent for Medi-Cal cases AB 2713 (Pavley). Public Agency Attorneys. which could form the basis of subsequent legisla- AB 2713 deals with attorney-client confidentiality tion to expand the issue to all insured, or give the for public agency attorneys. It narrowly defines courts a direction to go in awarding settlements. when it is proper and permissible for a public Staff: Yvonne Hunter; Status: Gov; Position: agency attorney to disclose confidential informa- Request for VETO. tion or conversations with staff or elected officials without being subject to sanctions by the State Bar. The League's City Attorneys Department ENVIRONMENTAL QUALITY worked with the author's office on the bill and requested several important amendments that are AB 2006 (Nunez). Electricity. New Genera- in the bill. AB 2713 is similar to AB 363 tion Facilities. AB 2006, the "Reliable Electric (Steinberg), which was VETOed two years ago by Service Act of 2004," is one of the most important then Governor Davis. Staff: Yvonne Hunter; energy bills of the last five years. It would establish Status: Gov; Position: Request Signature. procedures that would facilitate and encourage investment in California's energy infrastructure — SB 494 (Escutia). Medi Cal Liens. Insur- inctuding generation and transmission facilities — in ance. SB 494 was the poster child of the last order to promote stable, diverse, reliable and cost minute "gut and amend" process at the end of the effective electric service in the future. This invest- 2003 legislative session. Luckily, it stalled in the ment could be by investor owned utilities or private Assembly Health Committee, but remained alive. merchant generators who wish to sell power to the This year it passed the Legislature and is awaiting utilities. action by the Governor. At the request of the League, the bill includes Under existing law and practice, many health language that would protect the ability of custom- insurers have contracts with health providers that ers to participate in a Community Choice Aggrega- pay a reduced rate from what health providers bill tion program, as authorized in previous legislation, as their "reasonable or full retail rate." The pro- AB 117 (Migden). The bill also includes provisions vider is then precluded from balance billing the to ensure that new generation proposals will beneficiary for any difference between the contract provide the best value for customers and not price and the full retail rate. SB 494 would change exclude those projects proposed by non-utility this practice for Medi-Cal patients and permit cost generators. recovery beyond the negotiated rate. AB 2006 has been one of the most hotly By allowing for cost recovery beyond the contested — and misrepresented — bills of the year. � negotiated Medi-Cal rate, SB 494 could make a The debate surrounding AB 2006 reminds one of PAGE 8/PRIORITY FOCUS September 3, 2004 - www.cacities.org