A weekly roundup of business-related bills, upcoming...

A weekly roundup of business-related bills, upcoming legislative issues, regulatory news and other developments of local interest.

PREVIEW

Golden Prospects

Don’t let the public posturing fool you. Many California business leaders are downright giddy about their prospects in the new state legislative session, despite a Legislature controlled by Democrats, who are traditionally more receptive to labor interests.

The reason for the optimism: welfare reform.

The federal welfare overhaul dictates that California move hundreds of thousands of welfare recipients into jobs in the coming years. Gov. Pete Wilson has even more ambitious goals: to find work for 700,000 able-bodied adult welfare recipients in the next two years. At stake are millions of dollars in federal funds--close to $200 million next year alone--if the state fails to meet the federal mandates.

Business leaders will push hard for legislation that eliminates lifetime-pay jury awards and caps punitive damages on wrongful-termination lawsuits. They will head to committee hearings armed with studies claiming that the state economy, generating about 300,000 new jobs a year, could produce even more if it weren’t for the fear of wrongful-termination suits inhibiting employer investments in new technology, expansion and relocation.

Labor interests and welfare-rights advocates, meanwhile, will caution against jeopardizing the rights of millions of workers to carry out a welfare plan that, they say, is unrealistic in its assumptions of the numbers of welfare recipients the work force can absorb.

CALENDAR

Public hearings in Irvine and San Diego take place next week on the proposed merger of two Orange County-based health-care giants: FHP International Corp. and PacifiCare Health Systems Inc.

In August, PacifiCare agreed to buy FHP for $2.1 billion in cash and stock.

Both companies were among those fined this week by state regulators for failing to comply with a 1995 law that requires that enrollees be notified of their right to take complaints to state regulators.

The hearings, sponsored by the California Department of Corporations, will take place at the following times and locations:

* Irvine: Wednesday, 9 a.m.

City Council Chambers

Irvine City Hall

1 Civic Center Plaza

* San Diego: Thursday, noon

South Chambers, Room 358

County Administration Center

1600 Pacific Highway

HOT BILLS

* Small Business Development (AB 135)

Would create the San Fernando Valley Small Business Development Corp., which would offer loan guarantees on behalf of small businesses in northern Los Angeles County and portions of Ventura and San Bernardino counties. The bill seeks $4 million from the state’s general fund. Supporters include the Valley Economic Development Center. Opposition could come from legislators opposed to the use of general-fund money. Author: Bob Hertzberg (D-Los Angeles)

* Paid Family Leave Benefits (SB 164)

Would extend disability benefits to employees who take time off to care for family members. Currently the federal Family Medical Leave Act allows workers to take up to 12 weeks off, but without pay. Sponsors include the California Labor Federation. Opposition is likely from business interests. Author: Hilda Solis (D-El Monte)

* Domestic Violence Compensation (SB 165)

Would extend unemployment compensation to workers who leave their jobs in order to move or otherwise protect themselves and family members from domestic violence. Sponsors include the California Alliance Against Domestic Violence and the California Labor Federation. Business advocates are expected to fight the bill. Author: Hilda Solis (D-El Monte)

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