Subject: [NEXTEL-1] Court admits loophole in PUC law

From: Marcel <[email-masked]>
Date: Tue, 14 Jan 2003 17:00:21 -0500

Court admits loophole in PUC law

SAN FRANCISCO Henry Duque should not have been removed from the California Public
Utilities Commission for owning stock in a company the agency regulates, a state appeals
court ruled Monday.

The 1st District Court of Appeal, in overturning a lower court judge, said Duque broke no
laws for investing and earning $70,000 in Nextel Communications Inc.
The court conceded there was a "critical gap' in the law, that does not disqualify
commissioners who voluntarily purchased stock in regulated companies. Instead, the court
said, the law allows for the removal of commissioners who "involuntarily' invest in
companies the PUC regulates, via a gift or inheritance.

That doesn't make sense to consumer advocacy groups.
"It's completely absurd,' said Pamela Pressley, an attorney with the Foundation for
Taxpayer and Consumer Rights. She said her group is likely to ask the California Supreme
Court to review the decision.

Lawmakers whipping up their own tax plans

SACRAMENTO Members of the state Legislature are discussing possibly tacking on new tax
proposals to Gov. Gray Davis' midyear budget plan as they begin to confront the reality of
carving into state services in earnest.

With all of Davis' plans public, the battle between Democrats and Republicans over cutting
the $34.8 billion budget deficit and possible tax increases begins.
Democratic lawmakers met Monday to begin planning possible alternatives to the Davis plan
which some Democrats have said cut too heavily that could include new tax hike proposals.

"They are trying to comply with the overall goal of the governor's plans,' said Ray
Sotero, spokesman for Assembly budget chairwoman Jenny Oropeza, D-Long Beach.

http://www.presstelegram.com/Stories/0,1413,204%257E21474%257E1108125,00.html

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