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Oops. Correa challenger doesn’t live in Correa’s district

November 19th, 2009, 11:23 am by BRIAN JOSEPH, Sacramento Correspondent

Orange County’s corner of the political blogosphere has been abuzz with talk of a mysterious GOP candidate who has emerged as a challenger to Democratic state Sen. Lou Correa of Santa Ana.

Earlier this month, the Orange Juice Blog asked “Who is Sue Perez and why is she challenging Senator Correa?” Red County.com revealed that Perez had hired veteran political consultant Dave Gilliard, who told the blog that Perez “has 12 years of broadcast experience as host of a highly popular syndicated talk show, ‘Our Town’, watched by millions of viewers on the TBN network” and “holds a Doctorate of Ministry Degree, as well as an undergraduate degree in Criminal Justice.”

In fact, Perez, a former employee of the Heritage Family Fellowship church, officially filed with the California secretary of state her intent to run for election in Correa’s 34th District in 2010.

Bloggers have wondered aloud who she is and what she hopes to accomplish. But one thing they haven’t asked is whether she actually meets the basic requirements of candidacy.

There aren’t much, but the state does require that you live in the district you want to represent. And Perez doesn’t live in the 34th District. She and her husband, Ed, live in the 33rd, which is represented by Mimi Walters. Read the rest of this entry »

State eyeballs backtracking on Correa’s optometry law

November 17th, 2009, 5:00 am by BRIAN JOSEPH, Sacramento Correspondent

optometryA high-ranking state official indicated that California may have erred when it tried to implement Orange County State Sen. Lou Correa’s controversial bill allowing optometrists to treat glaucoma patients.

As The Watchdog reported last month, the state hired a consultant with an apparently glaring conflict of interest to draft regulations to implement Correa’s legislation. For years, optometrists — that is, the people you go to for eye exams and glasses — have been trying to convince state lawmakers that they have the training and skill necessary to work as eye physicians and surgeons, despite the fact that they receive far less schooling than ophthalmologists, who are actual medical doctors specializing in the human eye.

Correa’s legislation, Senate Bill 1406, attempted to balance optometrists’ desires with ophthalmologists’ concerns over patient safety by appointing a six-person committee to draft regulations: three optometrists and three ophthalmologists. The committee deadlocked, however, and the state hired Tony Carnevali to work out the kinks.

carnevali20tonyCarnevali (left) is an optometrist, a past president and long-time member of the Board of Trustees of the California Optometric Association and an employee of the Southern California College of Optometry, which presumably would benefit financially if the state changed the career prospects of optometrists.

Rising in protest were the California Academy of Eye Physicians & Surgeons, the American Glaucoma Society and the California Medical Association. And in a Nov. 10 letter to them, state Department of Consumer Affairs Director Brian Stiger wrote, “I understand your concern with the process by which the recommendations were made.”

Stiger goes on to request that the state Board of Optometry “re-evaluate its decision to proceed with these regulations. If the board agrees to postpone its efforts, I will immediately direct (the Office of Examination Resources) to secure a consultant who has not been an advocate with respect to the issue of glaucoma and the scope of practice of optometry.” Read the rest of this entry »

Perceived conflict of interest threatens Correa’s law allowing optometrists to treat glaucoma

October 21st, 2009, 5:00 am by BRIAN JOSEPH, Sacramento Correspondent

correaThe state of California appears to have made, at the very least, a major public relations boo boo when it sought to implement Orange County State Sen. Lou Correa’s controversial bill to allow optometrists to treat glaucoma patients.

As we reported earlier, the California Medical Association, the California Academy of Eye Physicians & Surgeons and the American Glaucoma Society all want the state to suspend Correa’s law, which is set to take effect in January, because a recent investigation has uncovered eight veterans who suffered preventable blindness while under glaucoma treatment administered by optometrists at the U.S. Department of Veterans Affairs Hospital in Palo Alto.

glaucoma

What the world looks like with glaucoma

For years now, optometrists — that is, the people you go to for eye exams and glasses — have been trying to convince state lawmakers that they have the training and skill necessary to work as eye physicians and surgeons, despite the fact that they receive far less schooling than ophthalmologists, who are actual medical doctors specializing in the human eye.

Correa’s legislation, Senate Bill 1406, attempted to balance the optometrists’ desires with ophthalmologists’ concerns over patient safety. The bill explicitly called, in Section 2, for the State Board of Optometry to appoint a six-person “Glaucoma Diagnosis and Treatment Advisory Committee” to hammer out a compromise on the clinical training necessary for optometrists to treat glaucoma. To ensure that both sides of the controversy were fairly represented, the bill says that the committee is to be composed of three optometrists and three ophthalmologists and that both sides must come together on a single recommendation.

Would you be surprised to hear that didn’t quite work out? Read the rest of this entry »

State sues bank over alleged fraud against CalPERS, CalSTRS

October 20th, 2009, 12:04 pm by BRIAN JOSEPH, Sacramento Correspondent

California Attorney General Jerry Brown announced this morning that he is suing the Boston-based State Street Bank and Trust for more than $200 million for alleged “unconscionable fraud” against California’s two largest pension funds, CalPERS and CalSTRS.

Unsealed today by a Sacramento County Superior Court judge, the suit claims State Street illegally overcharged the California Public Employees Retirement System and the California State Teachers’ Retirement System for the cost of executing foreign currency trades since 2001.

The suit was originally filed, under seal, by “Associates Against FX Insider Trading,” whistleblowers who claim the bank added a secret mark-up to the cost of foreign currency trades. Brown subsequently launched his own, independent investigation, which confirmed State Street was overcharging the two funds.

“Over a period of eight years, State Street bankers committed unconscionable fraud by misappropriating millions of dollars that rightfully belonged to California’s public pension funds,” Brown said in a press release. “This is just the latest example of how clever financial traders violate laws and rip off the public trust.”

Time running out for food workers who inhaled toxic butter flavoring

October 2nd, 2009, 5:05 am by BRIAN JOSEPH, Sacramento Correspondent

popcornOn Sept. 9, the print edition of the Orange County Register ran a small notice on page 11 of the classifieds telling readers that they had until Oct. 30 to file a claim against a company called the Chemtura Corporation.

If you had seen the ad and read the tiny type, you’d have learned that Chemtura, based in Middlebury, Conn., was once one of the major producers of diacetyl, a chemical used to make artificial butter flavoring.  Diacetyl (die-ASS-a-teel) has been linked to a rare lung disease in workers who manufacture artificial flavorings for popcorn and other products. The company filed Chapter 11 earlier this year after losing a number of court verdicts to workers who said they were sickened by the chemical.

The disease, bronchiolitis obliterans, is now known as “popcorn workers lung” or simply “popcorn lung.” Chemtura, which also makes industrial lubricants and greases as well as pesticides and plastics, said in June it had 14 pending diacetyl claims against it and expected as many as 1,000 more.

Diacetyl is nasty stuff. It can ravage the lungs and make a non-smoker in his thirties  a candidate for a lung transplant. Juries have repeatedly found that workers were hurt from breathing diacetyl’s toxic fumes, leaving Chemtura on the hook for verdicts of $2.7 million to $20 million each.

The Chemtura notice was published in The Register because its diacetyl was used in at least two of Orange County’s artificial food plants — Mission Flavors & Fragrances in Foothill Ranch and ConAgra Grocery Products in Irvine. Under federal bankruptcy laws, Chemtura has to notify potential victims of their deadline for filing claims against the company.

But here’s the thing: if you were exposed to Chemtura’s diacetyl, you might not have known it. That’s because the diacetyl was re-packaged under the name Citrus & Allied Essences. The notice doesn’t tell you that.

“We raised concerns with the court,” said Irvine attorney Anne Andrews, who represents a 35-year-old father of two who was exposed to diacetyl at the Mission Flavors plant. “We’re not certain (the notice is) going to reach the people affected.” Read the rest of this entry »

Millions misspent by state insurance agency, and nobody cares, OC attorney says

June 1st, 2009, 4:00 am by BRIAN JOSEPH, Sacramento Correspondent

ciga31You know that saying about a tree falling  in the woods with no one around to hear it? Dan Jacobson feels a bit like that tree.

“I am screaming at the top of my lungs,” said the Orange County attorney. “We’ve accomplished a great deal for the future, but I’m still screaming about the past — a past I think includes the theft of tens of millions of dollars from Californians.”

We first wrote about Jacobson in February of last year, after he sounded the alarm about a little-known, quasi-governmental agency called the California Insurance Guarantee Association. CIGA, as it’s known, is the state safety net for commercial insurance companies, funded through a surcharge on insurance premiums. If your insurance provider goes broke, CIGA picks up your claim.

Anyway, back in late 2007, Jacobson, who sits on the CIGA board, began warning state elected officials that something was seriously wrong with the agency. It was running a deficit of $1.6 billion and an internal audit concluded that of $66 million spent on bill review fees, CIGA had overspent $55 million. Jacobson also complained that CIGA operated under a veritable cloak of secrecy where  nobody could find out what was going on.

Jacobson’s warnings seemed to be confirmed when, for that initial story, this reporter tried to attend a CIGA board meeting in San Francisco and was promptly thrown out just moments after arriving.

When that was reported last February, it sparked a hearing by the State Senate and legislation to make CIGA meetings open to the public, which eventually became law. Also, Jacobson said he’s helped establish bidding procedures and internal controls that he thinks ensure CIGA will run well.

“We’re doing fine for the future,” he said.

But from the very beginning, Jacobson has been pushing for a serious investigation into CIGA’s past and no one has followed through.

Read the rest of this entry »

Bad timing: State slices program that helps schools slice costs

May 18th, 2009, 3:00 am by BRIAN JOSEPH, Sacramento Correspondent

junkerAt precisely the time when a faltering economy means cities and schools need to save money, the state of California has decimated one of the very programs that helps local governments cut costs.

For decades, schools districts like the Huntington Beach Union High School District and the Anaheim Union High School District have depended on an obscure program that allows nonprofits, small businesses and local governments to acquire surplus federal equipment at dramatically reduced prices.

Under the Federal Surplus Personal Property Program, you can get a$15,000 forklift for $1,000, an $8,000 Dodge van for $750.

“That’s how we’re sending money to the classroom. We don’t have to buy a $60,000 truck,” said Steve Bradford, fleet manager for the Huntington Beach district. He said his district has acquired staff cars, trucks, vans, electric carts, forklifts, trailers and portable lights through the program.

“It’s been a life saver for us,” said Scott McDonough, garage supervisor for the Anaheim district, who estimates that 35 to 40 percent of the 150 vehicles in his “white” fleet (non-school buses) were obtained through the program.

To cut costs, however, the state recently closed the program’s headquarters in Santa Ana and moved the operation to Sacramento. That might not sound like a big deal, but McDonough and Bradford say it’s been a disaster. They say the program doesn’t work now and they can’t figure out what equipment is available.

“Basically, they’ve taken our teeth out and we can’t chew anymore,” Bradford said. Read the rest of this entry »

Sweetheart deal for company headed by former Caltrans official?

May 14th, 2009, 3:00 am by BRIAN JOSEPH, Sacramento Correspondent

image3A former Caltrans official goes to work for a start-up company.

Around the same time, Caltrans directs its employees to buy traffic counters from that same company.

Is that a coincidence? Or insider dealing?

State lawmakers looked into the issue Wednesday, aggressively peppering Caltrans officials with questions in an intense hearing punctuated by head shaking and calls for transparency.

“Where there’s smoke there’s usually fire,” Assemblyman Hector De La Torre, D-South Gate, said to open the proceedings.

Read the rest of this entry »