assembly bill

The California attorney general will help oversee healthcare giant Kaiser Permanente’s medical arbitration system to ensure it operates fairly under legislation Gov. Gavin Newsom signed late Sunday.

Patients, their families and lawyers have complained that Kaiser’s private and confidential system of handling medical malpractice complaints is designed to favor the health plan over those bringing the claims.

Under legislation known as Assembly Bill 1770, the attorney general will decide what actions justice officials should take to ensure private arbitrations required by any health plan are handled fairly and in line with state law.

To do that work, the state plans to add as many as four deputy attorneys general, a legal analyst and three legal secretaries, according to a legislative analyst’s report.

“We look forward to continuing to resolve claims through an independently administered system that provides a fair and efficient process for members and patients,” Kaiser Permanente said in a statement Monday.

Roughly 1 of every 4 Californians get healthcare from Kaiser. To join the plan, each one had to check a box, agreeing to use arbitration to settle any dispute.

Many companies and other organizations, including some hospitals and physician groups, require customers or patients to take their complaints to private arbitration rather than to court.

But unlike most other companies, which send claims to large arbitration firms, Kaiser created its own system.

Under Kaiser’s system, once a neutral arbitrator is selected, either party can opt to disqualify that person without cause. There is no limit on the number of disqualifications.

While the health plan designed the system to be fair, patients and their lawyers have alleged that Kaiser’s greater knowledge of arbitrators’ past rulings and its ability to veto arbitrators gives it an advantage to pick favorable judges.

Critics also say the hourly fees paid to arbitrators provide them with a financial incentive to rule in Kaiser’s favor so they will be selected for future cases. Most of the arbitrators are retired judges.

Kaiser has previously defended its arbitration system, saying it was fair for both patients and for the nonprofit.

The bill was authored by Assemblyman Robert Garcia (D-Rancho Cucamonga), a longtime Kaiser member.

Support for it was led by Stephen Martinez, a retired aerospace engineer from Bellflower, who with his wife, Lindalee Iverson, spent $350,000 to bring two arbitration cases against Kaiser. The arbitrator ruled against the couple in both cases.

Iverson died of cancer in 2023.

Martinez told legislators at a hearing this year how his wife had found a lump in her breast and asked for an appointment with her longtime caregiver at Kaiser to examine it. Instead she was sent to a physician assistant, who dismissed it, he said. Later, it was found to be cancer that had spread.

A chief breast surgeon at Kaiser and another surgeon who had retired from that job both testified that the Kaiser physician assistant failed to follow the health system’s guidelines.

Kaiser’s expert argued that the physician assistant did an appropriate exam and that his low suspicion of breast cancer was reasonable. The neutral arbitrator sided with the health plan’s expert.

Martinez has spent years trying to get legislation to make the system more fair.

“I’m elated,” Martinez said of Newsom’s signing of the bill, which was named Lindalee’s Law. “It’s been a long road.”

According to the annual report prepared by the independent administrator of Kaiser’s system, the “most common” complaint the office heard last year was about the neutral arbitrator.

“Most complained that the arbitrator was biased, partisan, unjust, and in Kaiser’s favor,” the report said.

Thousands of Los Angeles homeowners faced a persistent problem long after the devastating wildfires in January 2025: While their homes were left standing, they had been infiltrated by heavy, toxic smoke and ash, and remained unsafe.

Residents were forced into lengthy battles with their insurance companies to prove contamination and get help paying for the cleanup and additional living expenses.

Backed by wildfire survivors and advocates in Altadena, California Gov. Gavin Newsom on Tuesday announced he had signed legislation to create new, first-in-the-nation standards to test and remediate homes damaged by wildfire smoke, and to require insurance companies to pay for the associated costs.

“California will not leave survivors to navigate recovery alone,” Newsom said. “These new protections will make insurer obligations clearer and give homeowners more financial flexibility when they need it most. As fire seasons across the West become a year-round reality, California’s commitment to recovery must be just as enduring.”

The January 2025 Eaton and Palisades fires were two of the deadliest and most destructive in state history. Together, they burned more than 16,000 structures and killed 31 people.

Assemblymember John Harabedian (D-Pasadena) authored Assembly Bill 1642 after hearing repeatedly from constituents concerned that the fires had left layers of ash contaminated with asbestos, lead and toxic materials in and around their homes.

The now-signed bill directs the state to create scientific standards for what constitutes a safe home and provide guidance on how to properly remediate residences.

Twenty months after Jane Lawton Potelle sat in a friend’s garage — already suffering from a cough and chest pain as her Altadena home stood contaminated with toxic smoke — she stood alongside Newsom as he signed the bill, which was championed by her advocacy group, Eaton Fire Residents United.

“Early days, we were told we were the lucky ones,” said Potelle, who founded EFRU as her neighbors shared concerning test results on Facebook — all while government agencies and insurers offered conflicting guidance and little support.

“To have this bill signed is acknowledgment that just because your home is left standing and looks fine, doesn’t mean that it’s actually safe to return,” she said.

The data EFRU collected in the months after the fire showed the vast majority of homes tested had lead levels beyond what the U.S. Environmental Protection Agency considers acceptable. With no clear guidance, haphazard and improvised efforts by companies to clean these homes left 6 in 10 residences still unsafe.

A companion bill signed by the governor, AB 1795, was born out of a Department of Insurance task force and requires insurers to abide by the AB 1642 standards in the insurance claims process and to do so in a timely manner.

If these laws had been in place when the Eaton fire broke out, “we’d all be home by now,” Potelle said.

Potelle’s home — like many others’ — remains contaminated as disputes with her insurance company drag on. Her Christmas tree, from 2024, is still up.

“Going forward, the question of whether a family can safely return home should be answered by science, not by an insurance company’s guesswork,” Harabedian said in a statement. “Families should not have to fight for the testing they need or be left trying to figure out on their own whether their homes are safe.”

More than 13,000 insurance claims filed after the fires involved homes that were damaged by smoke, not flames, according to an estimate from the Department of Insurance.

Newsom also signed legislation from Harabedian that will allow homeowners in the future to seek up to one year of mortgage forbearance if their home becomes uninhabitable due to the effects of a wildfire or other disaster. Another bill signed into law extends existing mortgage relief for those affected by the Palisades and Eaton fires for another year.

California lawmakers have approved a bill that seeks to throw a lifeline to the state’s struggling journalism organizations.

Assembly Bill 2222, which would create refundable tax credits for California local news organizations based on the number of journalists they employ, joins a litany of bills on Gov. Gavin Newsom’s desk.

The state Senate passed the bill on Sunday and the Assembly narrowly approved its amendments on Monday to send the bill to the governor’s desk, with some Republican lawmakers pulling their previous “yes” votes.

The approval comes just as the Legislature is set to adjourn its two-year session early this week.

The bill, introduced by Assemblymember Christopher M. Ward (D-San Diego) would work by assigning a “job retention credit” of $20,000 per journalist for up to five positions, and after that $15,000 for every additional journalist. Part-time positions would be awarded half-credits. It also stacks an additional $15,000 credit for each new hire, to incentivize expanding journalist head counts.

“This measure is a safety net for news outlets on the verge of closure,” said former state Sen. Steve Glazer, who is a proponent of the bill and during his Senate term pushed similar legislation.

Proponents may face an uphill battle persuading Newsom to sign the bill, which creates a unique revenue stream to pay for the program. Newsom typically spurns laws that make changes to the state budget after those fiscal discussions conclude in the first half of the calendar year.

AB 2222 represents the latest attempt by California lawmakers to bolster the news business, with governments globally discussing similar efforts. Canada implemented newsroom payroll tax credits in 2019 amounting to about $13,750 per journalist in an eligible newsroom.

AB 2222 would create the largest relief plan in the U.S. to date, with the state tax board estimating it would make more than $40 million available to the state’s newsrooms annually.

The California Taxpayers Assn. and groups representing business interests such as the California Chamber of Commerce opposed the bill because it raises taxes on employers.

The governor’s finance office issued an analysis opposing the bill for failing to outline a cap on tax credits and for seeking to subsidize existing jobs rather than encouraging the creation of more journalism jobs.

The bill is supported by the California News Publishers Assn., of which the Los Angeles Times is a member.

Newsom has until Sept. 30 to sign or veto bills.