BONANZA FOR LOBBYISTS LAWMAKERS PUSH TO CLEAR BILLS BEFORE RECALL.

Byline: Beth Barrett Staff Writer

With 1,300 bills expected to reach Gov. Gray Davis's desk between now and the Oct. 7 election, special interests have an unprecedented opportunity to use their money and clout to influence legislation and the recall itself.

According to elected officials from both parties and close observers of the legislative process, almost anything can happen with Republicans hoping to gain power, and Davis and the Democrats trying to keep it.

Some of the most far-reaching bills in recent history - workers' compensation, health insurance reform, environmental protections and Indian tribal issues - are on the table and special interests have started writing checks, holding fund-raisers and promising to get out votes in hopes of gaining favor.

Concern is running high that the situation is ripe for mischief with politics taking precedence over policy.

``Those special interest groups are going to be looking for a legislative boon,'' said Assemblyman Keith Richman, R-Granada Hills.

``The politics of the recall are overhanging every piece of legislation here. Special interests are going to be pushing their interests and the Legislature, and particularly the governor, are going to be looking to bolster their political support.''

Bob Stern, president of the Center for Governmental Studies, a Los Angeles nonpartisan research organization, said recall is creating a political climate of ``cowardice.''

``More people are looking over their shoulders. There is less innovative leadership,'' Stern said.

``The question is whether they look to the short term, or the long term. If to the short term, then they send a lot of very liberal measures and put pressure on (Davis). On the other hand, they could be very careful not to alienate voters and send popular bills, such as repealing the car tax. Davis is really walking the tightrope.''

Davis supporters deny any connection between campaign money and policy.

``There's no connection between political contributions and public policy,'' said Gabriel Sanchez, press secretary for Californians Against the Costly Recall. ``This recall, in particular, will breed more recalls, more campaigning - not less, more politics - not less. The governor is about solutions.''

Workers' compensation and health insurance are at the top of the legislative agenda, among the 1,300 bills expected to land on the governor's desk before, or after, the end of the session on Sept. 12. Davis has until Oct. 12 - five days after the recall - to sign or veto bills that are passed in the last days of the session.

The workers' comp/health care measures championed by Democratic Sens. John Burton of San Francisco, and Richard Alarcon of Van Nuys, are now in conference committees.

Davis has his own package and has only publicly guaranteed that the soaring coverage rates won't go any higher than they are now - a position that doesn't sit well with business or local governments hard hit by sharply rising workers' comp costs.

Alarcon denied that recall is a factor in the debate, saying Davis was committed to workers' comp reform before the recall.

``I don't think recall makes it easier or more difficult,'' Alarcon said. ``It's time that we do effective workers' compensation. We're in a great position to do it. Recall doesn't have a whole lot to do with it.''

Others said reforms don't go nearly far enough, with Republican candidates Arnold Schwarzenegger and Sen. Tom McClintock, R-Thousand Oaks, pledging to call a special session on workers' compensation. They are equally aggressive about the Democrats' costly health insurance program.

Labor, workers' compensation lawyers and others have already contributed more than $3.7 million to fight the recall. Fund-raisers, phone banks, and get-out-the-vote drives also are planned.

The California Labor Federation, AFL-CIO is pressing its priorities on the issues as well as gearing up for a massive anti-recall campaign.

``We're going to repel this attack on our democratic process,'' said Nathan Ballard, California Labor Federation spokesman in Oakland.

``We're mounting an enormous campaign to defeat the recall, including $2.5 million on a direct mailing that's going out soon, We're going to make 3 million phone calls to our members, and have 700,000 one-on-one conversations with members at plant gates, in lunch rooms and break rooms across the state.''

``The recall disrupts the whole legislative process. All the political energies in the state have been diverted to this recall, and it's a shame.''

The state's 14 construction unions under the umbrella State Building & Construction Trades Council of California have so far contributed more than $120,000 to Davis' anti-recall campaign. The council also plans a massive phone and ground campaign.

``Obviously the recall impacts on us in terms of legislation. It colors the whole process, because of all the uncertainty, and creates an urgency on legislation, because you want to get some passed before recall changes all the equation on support,'' said Mike Dugan, the council's spokesman.

The council sent out 300,000 fliers opposing recall and plans another mailing. It hasn't decided yet whether to back Lt. Gov. Cruz Bustamante if Davis is ousted.

``If we can get the troops, we can beat recall,'' Dugan said.

Zenith Insurance Co., a Woodland Hills firm specializing in workers' compensation insurance, contributed $100,000 to Taxpayers Against the Recall.

Stanley R. Zax, its chairman and president, said the firm wants to see a workers' compensation system that's ``more efficient and predictable.''

``Otherwise, there's no alternative than to raise prices to customers. Unless the costs are controlled, we have no controls other than to charge increasing prices.''

The Associated Builders and Contractors of California is a group of largely nonunion contractors that supports the recall.

At the same time, the association is worried about a bill, SB 868 by Sen. Joseph Dunn, D-Garden Grove, that they say could make nonunion members' names and home addresses readily available, making it easier for unions to contact them.

``Unions could target our employees and solicit them at home. That's not the stated claim, but the sponsors are the labor unions and it seems obvious what it's meant to do,'' said Matt Tennis, Associated Builders and Contractors of California legislative director.

Elena Lopez-Gusman, a consultant to Dunn, called the allegation a ``red herring,'' because the names would only be released to federally authorized joint labor management committees for the purpose of verifying prevailing wages.

The California Chamber of Commerce is considering breaking with historical precedent and taking a position on the recall next month, said Richard Costigan, vice president of government relations and chief lobbyist.

The chamber is particularly worried about mandated health coverage, known as ``pay or play,'' as proposed in Burton's bill, SB 2.

``Our view is, you have rising workers' compensation, the unemployment insurance premium is going up, and then you mandate health care. Our concern is, the business community can only absorb so much,'' Costigan said. ``You're going to increase unemployment in order to fulfill the mandate.

The workers' compensation proposals also don't go far enough, he said.

``Businesses say workers' compensation is killing them,'' Costigan said.

California firefighters also are following workers' comp legislation, but their No. 1 bill is SB 440, which mandates binding labor contract negotiations. The bill seeks to address local control issues, which resulted in a similar bill being ruled unconstitutional by the state Supreme Court.

California Professional Firefighters President Dan Terry chaired the Taxpayers Against the Governor's Recall, and its political action committee contributed about $118,000 to that effort.

Last week, the firefighters contributed $25,000 to Californians Against The Costly Recall of the Governor, Terry expects to raise the total to more than $100,000. Fund-raisers, phone banks and get-out-the-vote efforts also are planned.

``We're highly disturbed by this anarchy, this lack of process in California,'' Terry said. ``I think it's terrible for all aspects of public policy.''

The California Healthcare Association, the trade association for the state's hospitals, a supporter of Davis in the past and opposed to recall, is fighting against AB 232, claiming it would force hospitals to give discounted rates to uninsured patients with incomes as high as $128,000 a year. Labor is pressing to keep it alive.

``The recall is casting a long shadow over everything in the Capitol right now,'' said Jan Emerson, California Healthcare Association vice president of external affairs.

Anthony Wright, executive director of Health Access, a consumer advocacy coalition said the bill would protect the uninsured from higher charges.

``The big thing is that recall is just sucking the oxygen out of the debates that need to happen,'' he said.

Beth Barrett, [phone]

beth.barrett(at)dailynews.com