This article by Frank Russo got me pretty depressed about the state of California politics.

There’s something amiss in the state of Sacramento-and it has something to do with the state’s banking and lending institutions and the stacking of committees that deal with them with legislators that are either weak kneed or just a bit overfriendly with the industry that they should be protecting us from.

What else is new?

Well, this afternoon, the Senate Committee on Banking, Finance, and Insurance, Chaired by Senator Michael Machado of Stockton, will be hearing two bills that have been gutted down behind a closed door process such that today’s public proceedings on them may amount to little more than a sham […]

It’s difficult enough to get bills passed through the Assembly Banking Committee and the Assembly floor when going up against the behemoth banking industry which has a lot of spare change to throw around in legislative races and many high paid lobbyists scurrying about the Capitol.

It looks like AB 69 by Assemblymember Ted Lieu, originally a great bill, has been amended since it left the Assembly-and before today’s hearing-such that the Center for Responsible Lending, a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices, initially listed in support, has withdrawn that position.

Read the whole thing.  The bottom line is that in this recent primary election special interest groups spent nearly $10 million, and a good bulk of them were business interests who are now playing inside Democratic primaries in traditionally liberal areas to sell low-information voters a bill of goods.  This doesn’t always work, but it works just enough to frustrate progress in Sacramento.

Lesson 3: The business lobby can influence Democratic politics, even in a largely minority district.

Former Assemblyman Rod Wright, a moderate, defeated liberal Assemblyman Mervyn Dymally — reversing the pattern of leftist victories — in a South Los Angeles Senate district after business donors invested roughly $1 million in Wright’s campaign.

“Business has tended to stay out of black politics,” says Sragow, who advises the business lobby. “But some black politicians ask, ‘Why? We’re always out looking for economic development in our districts.’

“The business community has decided it can’t get a Republican Legislature, so it will play in districts where there’s a Democratic candidate it can work with.”

A major Democratic strategist has all but said that Don Perata shepherded along the candidacy of Rod Wright, and actually put it in terms that come very close to illegal coordination (note “a flurry of record spending by closely-aligned IE groups focusing all of their attention and ammo in one, concerted direction.”)

This is the game.  IE’s are increasingly the only way to reach the electorate, as the low-dollar revolution has pretty much not reached the Golden State.  So the Chamber of Commerce and industry groups fill the pockets of the politicians who, once elected, feel obligated to repay them.  The US Constitution allows the right for anyone to petition their government for redress of grievances; outlawing lobbyists or the ability of merchants to consult their politicians is not tenable.  What is tenable is to either create a parallel public financing system by employing the residents of the state to pay attention to local politics enough to fund progressive-minded candidates, or to bring clean money to California, where it’s arguably needed more than anywhere else, and end the pernicious influence of special interests in state elections.  Otherwise, you get a steady parade of mortgage relief bills that offer no relief.

Some links that I’ve picked up along the way:

• Assemblymember and former Banking Committee Chair Ted Lieu had a good piece yesterday on the foreclosure crisis and how continuing a laissez-faire attitude toward a deregulated lending industry is a recipe for even more disaster.  AB 1830 is the vehicle to crack down on irresponsible lenders and ban risky loans.

• Steve Wiegand writes about the circuitous route the Governor has taken this year, first toward fiscal austerity, then toward revenue enhancement, and everywhere in between.  Schwarzenegger is completely squeezed, knowing his legacy and reputation is on the  line and at his wit’s end over how to bridge the chasm between Republican intransigence and a way forward for California.

• The California Labor Fed has released its endorsements for legislative races.  Not a lot of surprises here, nor a lot of variance from the CDP endorsements, although Carole Migden and Bob Blumenfield didn’t see their endorsements vacated on the convention floor.  The Labor Fed can endorse multiple candidates in one race, which allows them to wiggle out of some of the more contested primaries (in AD-14 they actually had a TRIPLE endorsement).  The Labor Fed does bring member education, and in some cases money and volunteers, so it’s not a little thing.

• Wired’s Autopia looks at LA’s future in mobility.  In a word, I would call the report frustrating.  It’s basically going to take forever until the city truly has the transit system it deserves; right now, just 7% of the city uses mass transit.

• Mayor Villaraigosa takes a strong stand against ICE raids.

“I am concerned that ICE enforcement actions are creating an impression that this region is somehow less hospitable to these critical businesses than other regions,” Villaraigosa wrote in a March 27 letter to Michael Chertoff, secretary of the Department of Homeland Security […]

In his letter, Villaraigosa said ICE has targeted “established, responsible employers” in industries that have a “significant reliance on workforces that include undocumented immigrants.”

“In these industries, including most areas of manufacturing, even the most scrupulous and responsible employers have no choice but to rely on workers whose documentation, while facially valid, may raise questions about their lawful presence,” he wrote. He said ICE should spend its limited resources targeting employers who exploit wage and hour laws.

“At a time when we are facing an economic downturn and gang violence at epidemic levels, the federal government should focus its resources on deporting criminal gang members rather than targeting legitimate businesses,” said Matt Szabo, the mayor’s spokesman.

In general I agree with worksite rules enforcement, but the issue does seem to be out of proportion and balance.  It’s selective.

• This is a really interesting and refreshingly honest article by Brad Plumer on the SEIU/UHW situation.

Well, the holidays are rapidly approaching, and thus let's start out this week with a BANG! WooHoo, put your Monday morning smile on!  Here are a few stories of note, once again bound together with bullets.

• A vote is scheduled in the Assembly for the health care package, but as has been discussed here, it seems Senator Perata is reluctant. There have been comments here about other Senators not so sure about this plan. The vote will likely appear on the Cal Channel, but don't expect the vote to occur at 1pm when it the floor session is scheduled. I'm guessing the caucus meetings might take a while.
• SF Mayor Gavin Newsom is discussing a tax on sugary sodas. Apparently, he’s blaming obesity in children on sodas. Oh, what’s that you say, there is a link between the two? Oh, well, I guess it’s time to sell that Pepsi stock.
• There's a little tussle going on in the other side of the California blogosphere on Prop 93. Jon Fleischman opposes it. Former GOP Sen Jim Brulte has endorsed it. Check out the back and forth here. (Disclosure)
• Apparently Orange County isn't content with being the biggest municipal bankruptcy in the history of our country, they invested in a bunch of bad debt in the mortgage crisis. It's coming home to roost now. ( LA Times)
• Some writers are bypassing the studios and starting up their own new media production companies. By the by, QuarterLife, an independent web show, which was then given some money by NBC, will be shown by that network in February. (The QuarterLife folks make clear that their goal was not to create strike busting programming, but that NBC had an option to buy that they, legally, couldn't refuse) Perhaps the studios will learn a bit from these new developments. Or they won't and they'll go the way of the dinosaur. Either way, we'll likely get better content.

Over the flip you'll find the weekly Democratic radio address, this time from Assembly member Ted Lieu about the mortgage crisis. Consider this an open thread.

Hello, this is Assemblymember Ted Lieu, chair of the Assembly Banking and Finance

Committee.

    As our state faces looming budget shortfalls that threaten vital funds for infrastructure,

public safety, and social services, the emerging sub-prime mortgage crisis is poised to

jeopardize our attempts to salvage our state’s financial commitments.

    Because reckless mortgage lenders issued variable interest rate home loans to folks that

simply couldn’t afford to pay their monthly bills, 1 out of every 88 homes in California are

currently undergoing foreclosure.

    According to the Center for Responsible Lending, nearly 180,000 California homes will

be lost to foreclosure from the 826,900 sub-prime loans made in 2005 and 2006 alone.

    California could lose nearly $3 billion in property tax revenue and another $1 billion in

sales and transfer tax revenue.

    Remarkably, an estimated 61% of the sub-prime mortgage borrowers would have qualified for loans with more reasonable monthly payments, had their lenders not been so narrowly focused on short-term profits.

    But this isn’t just a problem for those about to lose their homes.

    Home prices are expected to decline in California by up to 20-percent and that’s

because each foreclosure within an eighth of a mile of a single-family home results in a 1%

decline in the value of that home.

    And working- and middle-class neighborhoods are especially in danger of being blighted due to abandoned homes.

    While this is not uniquely a California problem, our state is especially hard hit, with five

of the top ten areas with the highest foreclosure rates in the country, including Stockton,

Riverside/San Bernardino, Sacramento, Bakersfield and Oakland.

    And the response from the White House has simply been tepid and woefully inadequate.

    Clearly, the time for legislative action is now.

    Assembly Democrats have compiled a practical and effective package of bills to address

our state’s housing woes, and we have asked the Governor to call for a special session to

bring to the table all interested parties.

    Our package includes bills that will identify at-risk borrowers and determine what

lenders have done to assist them and ban prepayment penalties that essentially prevent

borrowers from refinancing.

    Other bills add consumer real estate mortgage loans to the list of consumer contracts

subject to California civil code translation requirements, protecting potential homeowners

for whom English is a second language, and we hope to end incentives and kickbacks that

spur lenders to push sub-prime loans onto buyers ill-equipped to afford their monthly

payments.

    And our bills will improve counseling services that can protect consumers from bad loans

and help them find potential avenues for keeping their homes, and we will introduce tough

income verification regulations, requiring lenders to consider an applicant’s ability to repay

over the life of a loan.

    Assembly Democrats are committed to working in a bipartisan and pragmatic fashion to

protect homeowners and preserve our state’s fiscal solvency, and we hope others in

Sacramento are equally committed.

    To allow these necessary reforms to be subject to partisan gridlock is literally not a

luxury our state can afford right now.

    Thank you for listening. This has been Assemblymember Ted Lieu, chair of the Assembly

Banking and Finance Committee

To the tune of 12 for 12. 12 Vetoes for 12 Good Bills.  That kind of record would make even the Colorado Rockies smile. And it's sure making the Cal Chamber of Commerce smile. 

In recent years, the chamber has focused much of its lobbying firepower on an annual list of “job killer” bills. This year, Schwarzenegger complied with 12 out of 12 chamber requests for vetoes on those bills. In 2006, he vetoed nine of 11 bills that the chamber listed as job killers.

“The chamber has had more success than most in getting vetoes,” said Steve Blackledge, legislative director for the California Public Interest Research Group, a consumer advocate. “They draw a bright line in the sand and say, 'These bills have to be stopped.' They've got the governor as their backstop.”(LAT 10/16/07)

Some of those bills over the flip.

A bunch of these bills involve green building codes. You see, the California Chamber of Commerce didn't dig on the Global Warming Bill, AB32, and doesn't much dig on any implementation of that bill.  You see, they are into a “wait and see” approach on climate change. You know, “wait” until we have no water left, and then “see” if they can move to Canada to get their water. So, we get a raft of “job killers” on that front. AB 35 (Ruskin) would require new state construction to live up to the standards of the gold rating from the United States Green Building Council's Leadership in Energy and Environmental Design for buildings after 2010. AB 888 (Leiu): would require that standard for all buildings where planning ends after 2013. AB 1058 (Laird) would require the Dept. of Housing to issue green standards for housing. And somewhat related, the Governor vetoed SB 210 that would have created standards for alternative fuels.

The Chamber really hates workers comp. They think that if you get injured on the job, well, that's the risk you take. Suckas!  SO, the fact that an injured worker got only $45K for a amputated leg seems totally fair to them. Yay! But the Legislature insists on trying to make them pay injured workers, those meanies. So, more job killers like SB 936 (Perata) which would have revised the formula for computing those payments for injuries causing permanent disability. SB 942 (Migden) would have given permanently disabled workers a supplemental job displacement benefit, And a very important piece of legislation, SB 622 (Padilla) would prohibit willful misclassification, as defined, of employees as independent contractors. 

Of course, The Chamber hates when their workers organize, so they blast two Migden bills SB180 and SB650 which affect labor organization, and Asm. Swanson's AB 504 that would have punished fraud in bargaining.

And, of course, they hated the Perata-Nunez health care plan, AB 8.  So, 12 for 12. Good Work Chamber!