Since This Morning

California regulators seek up to $9.9 billion in fines from PacifiCare -- The health insurer violated state law nearly 1 million times from 2006 to 2008 after it was bought by UnitedHealth Group, the Department of Insurance says. Duke Helfand in the Los Angeles Times -- 9/7/10

Senate special election an intramural battle for GOP -- A tough Republican internal battle is brewing between two top contenders vying on Nov. 2 for a seat in the California state Senate. Each campaign is armed with a poll to tout. Susan Ferriss SacBee Capitol Alert -- 9/7/10

Schwarzenegger upbeat about budget negotiation, eggs -- After meeting with legislative leaders this morning, Gov. Arnold Schwarzenegger said this afternoon that the mood is "pretty good" in negotiations to resolve the state's budget impasse. David Siders SacBee Capitol Alert -- 9/7/10

Harris calls on Cooley to return campaign contributions in attorney general's race -- The Democratic nominee for state attorney general on Tuesday called on her Republican rival, Los Angeles County Dist. Atty. Steve Cooley, to return campaign contributions he received from two government officials whose cities have been investigated by his agency. Phil Willon in the Los Angeles Times -- 9/7/10

Democrats take softer approach to Schwarzenegger's Asia trip -- Gov. Arnold Schwarzenegger's forthcoming trade mission in Asia seemed like an obvious opportunity for Democrats to attack the GOP governor, given that he will be on a six-day overseas trip while the state lacks a budget and IOUs loom in the horizon. Kevin Yamamura SacBee Capitol Alert -- 9/7/10

Winners and losers in Dems' new tax swap plan -- Democrats released their new tax swap proposal Friday after working with the Legislative Analyst's Office to find something tax neutral or better for every income group on average. Kevin Yamamura SacBee Capitol Alert -- 9/7/10

Attitude toward unions key factor in campaigns -- In a year in which California unemployment hovers at 12 percent and the state confronts the worst recession in generations, Art Pulaski is wondering: How did his people - working people - become the bad guys of the 2010 election? Carla Marinucci in the San Francisco Chronicle -- 9/7/10

State law enforcement union backs Whitman -- A 7,000-member union that represents state investigators, law enforcement personnel, 911 dispatchers and others on Tuesday endorsed Republican Meg Whitman for governor, calling Democratic contender Jerry Brown “erratic” on key issues. John Howard in Capitol Weekly Anthony York in the Los Angeles Times -- 9/7/10

Steve Poizner finally backs Meg Whitman -- Sure, it took three months, but Insurance Commissioner Steve Poizner has finally backed fellow Republican Meg Whitman's gubernatorial bid. Anthony York in the Los Angeles Times Torey Van Oot SacBee Capitol Alert Josh Richman Political Blotter weblog Joe Garofoli Chronicle Politics Weblog -- 9/7/10

Brown: Voters have stopped listening to Whitman -- Democratic gubernatorial nominee Jerry Brown, who launched his first campaign ad Monday, said the $100 million GOP candidate Meg Whitman has spent on her campaign has had a numbing effect on voters. Anthony York in the Los Angeles Times -- 9/7/10

Fox: Jerry Brown's Republican-Like Message -- Jerry Brown released his first official campaign television ad and it contains a decidedly Republican theme. Joel Fox Fox & Hounds weblog -- 9/7/10

A look inside Meg Whitman’s big machine -- The governor’s race, to a considerable extent, is a race to see who does better at their respective campaign task: Meg Whitman at running a $100 million-plus organization or Jerry Brown at running a lean, frugal operation. The winner’s skills will then be put to the test in Sacramento. Martin Wisckol in the Orange County Register -- 9/7/10

Entering the lion’s den -- It may be like going into a den of lions, but Harvey Rosenfield, godfather of insurance reform in California, is going to be the featured speaker at a conference of insurance brokers and agents later this month. Steven Harmon Political Blotter weblog -- 9/7/10

Wanna be in a Jerry Brown commercial? -- The Service Employees International Union California today launched a competition giving a few lucky (?) Californians the chance to star in a web commercial supporting Democratic gubernatorial candidate Jerry Brown. Josh Richman Political Blotter weblog -- 9/7/10

Latest poll: Boxer and Fiorina in dead heat -- The California U.S. Senate race’s first post-debate poll shows the candidates in a statistical dead heat, with Republican challenger Carly Fiorina at 48 percent and incumbent Democrat U.S. Sen. Barbara Boxer at 47 percent. Josh Richman Political Blotter weblog -- 9/7/10

Republican Candidates Ambivalent About Prop 23 -- The e-mail from the Fiorina campaign Friday didn't exactly sound like a ringing endorsement: Rachael Myrow KQED Climate Watch -- 9/7/10

Key lawmaker threatens fairgrounds deal -- The sponsor of legislation to sell the Orange County fairgrounds to Costa Mesa threatened to derail the deal Tuesday. JON CASSIDY in the Orange County Register -- 9/7/10

Obama: "Flailing" -- John McCain's weekend jab at Obama's latest $250 billion business tax cut and infrastructure proposal, already DOA, as "flailing" hit way too close for comfort. Carolyn Lochhead Chronicle Politics Weblog -- 9/7/10

Rahm: Will he or won't he? -- The news that Chicago Mayor Richard Daley will not seek another term sent blackberries buzzing with the question: Will White House Chief of Staff Rahm Emanuel turn in his hard pass to run for Daley's seat? Jessica Yellin CNN -- 9/7/10

Rahm Emanuel 'surprised' Chicago mayor won't seek reelection -- But the White House chief of staff isn't saying -- yet -- whether he would like to succeed Richard Daley. Michael A. Memoli in the Los Angeles Times -- 9/7/10

Will Kern Water Bank problems chill underground banking? -- But the big worry with water banking is withdrawing the water too quickly. Neighbors don't want a water bank project to sink 100 wells, lower the water table during a drought and cause other area wells to go dry. Mark Grossi Fresno Bee News Blog -- 9/7/10

A gathering end-of-summer storm of negative political sentiment -- As fall campaigning kicks off, Democrats are facing into the wind. Polls and forecasters call for an ever-worsening political climate. Michael Muskal in the Los Angeles Times -- 9/7/10

Fred Thompson: Barack Obama’s a dog on a fire hydrant -- Former GOP presidential candidate Fred Thompson on Tuesday compared President Barack Obama’s treatment of the American people to a dog urinating on a fire hydrant. ANDY BARR Politico -- 9/7/10

   California Policy and Politics This Morning

Democrats rally the faithful as fall campaign gets underway -- California's Democratic candidates marked the start of the fall campaign Monday in the embrace of their most committed supporters — hundreds of union workers who gathered at rallies across the state to pledge thousands of hours of calls to voters over the eight weeks before election day. Maeve Reston and Seema Mehta in the Los Angeles Times -- 9/7/10

Brown makes a populist appeal in Labor Day kickoff -- Jerry Brown employed a populist appeal for his Labor Day campaign kickoff Monday, excoriating his Republican gubernatorial rival Meg Whitman for campaigning in a "bubble" and for promising tax cuts to the "most powerful and affluent." Steven Harmon in the Contra Costa Times Anthony York in the Los Angeles Times Jack Chang in the Sacramento Bee -- 9/7/10

Dem Jerry Brown tosses yo-yos (VIDEO), new campaign themes and new attacks in big Labor Day stump -- Democrat Jerry Brown didn't look like a guy who had spent the last two days barnstorming the state when we here at Shaky Hands Productions caught up with him Monday in Oakland before his address to 800 union workers at MLK Shoreline Park. Carla Marinucci Chronicle Politics Weblog -- 9/7/10

Local unions hit the grills for Labor Day campaign, backing Brown, Boxer, Lee, McNerney -- A work holiday doesn't mean much to anyone struggling to find or keep a job, so even as local union members gathered for a Labor Day barbecue Monday, there was widespread talk of almost nothing but work. Sean Maher in the Contra Costa Times -- 9/7/10

Wall Street sees a reliable partner in Whitman -- Republican gubernatorial candidate Meg Whitman was leading a triumphant rally at the state GOP convention last month when she announced that New Yorkers were excited about the California governor's race. Jack Chang in the Sacramento Bee -- 9/7/10

Golden State's political realities may test strength of national mood -- Republicans are fired up but lag in registration. Democrats have boosted their ranks but lack motivation. And top-of-the-ticket races are too close to call with eight weeks to go. Cathleen Decker in the Los Angeles Times -- 9/7/10

CalBuzz: Jerry ‘Been There, Done That’ Brown Hits the Air -- After months of being pounded on TV by Meg Whitman and her allies, Jerry Brown takes to the airwaves this week, introducing himself to younger voters, reminding older voters of better times and reassuring them all – especially moderate and independent swing voters — that he will not raise taxes without a vote of the people. Jerry Roberts and Phil Trounstine CalBuzz -- 9/7/10

Cooley's donations raise questions about the line between fundraising and probes -- Rene Cota was stunned when he searched the Internet and came across a $1,500 campaign contribution reported recently by Los Angeles County Dist. Atty. Steve Cooley, who is running for state attorney general. Rich Connell in the Los Angeles Times -- 9/7/10

Pougnet goes after Bono Mack with media blitz -- Seeking to unseat veteran Inland Rep. Mary Bono Mack, Palm Springs Mayor Steve Pougnet this week is launching an aggressive advertising campaign featuring television and radio spots that will air throughout most of Riverside County until Election Day. BEN GOAD in the Riverside Press -- 9/7/10

Size, disparities of 45th District flavor Bono Mack-Pougnet race -- From the rolling hills of Murrieta to the bustling strip malls of Moreno Valley to the dusty, palm tree-lined streets of the Coachella Valley, California's sprawling 45th Congressional District is a land of contrasts. BEN GOAD in the Riverside Press -- 9/7/10

Cigar club lobbyists had Bilbray support -- In the months after Rep. Brian Bilbray sponsored the formation of a cigar association for Congressional staff, he introduced or lent his name to several pieces of legislation that would benefit clients of lobbyists involved in the social club. Brooke Williams in the San Diego Union-Trib -- 9/7/10

• Dan Walters: Fifty years later, it's still fun -- It was the day after Labor Day in 1960 – exactly a half-century ago – when a 16-year-old kid climbed very steep, rickety stairs into the newsroom of the Humboldt Times in Eureka to begin a $50-a-week job as a copyboy. Dan Walters in the Sacramento Bee -- 9/7/10

   Budget

Will CalSTRS sue state for more funding? -- CalSTRS is underfunded, lacks the typical public pension power to force employers to pay more, and is being told by lawyers that the Legislature should come up with a funding plan. Ed Mendel Calpensions.com -- 9/7/10

   Tax Measures

Local tax measures crowd ballot as voters asked to foot bill for budget crisis -- East Bay taxpayers in November are being asked to foot the bill for California's economic crisis, with dozens of school districts, cities and special districts floating parcel taxes, bond measures and sales tax increases to shore up flagging budgets. Theresa Harrington in the Contra Costa Times -- 9/7/10

   Economy - Jobs

California's union jobs take hit from recession -- The recession is taking a toll on union jobs, which are disappearing in California at a faster rate than anywhere else in the country, according to a UCLA study published Monday. Alexandra Zavis in the Los Angeles Times -- 9/7/10

From helping run a school to taking handouts -- At an age when many workers are looking toward to retirement, Mignon Veasley-Fields is looking for a job. She and her 77-year-old husband are raising two granddaughters. Alana Semuels in the Los Angeles Times -- 9/7/10

Fresno area rehabbed foreclosed homes sell -- Dozens of foreclosed houses that sat vacant for months in the Fresno area are now either sold or in escrow after the city and county governments spent millions of federal dollars to buy them and fix them up. BoNhia Lee in the Fresno Bee -- 9/7/10

Millions can find only part-time or lower-paying jobs -- Beyond the 15 million Americans who have no jobs at all, millions more are caught in part-time or limited jobs that don't pay them enough to maintain their standard of living — much less contribute to the strong consumer spending needed to power the nation out of the economic doldrums. Don Lee in the Los Angeles Times -- 9/7/10

Once a Dynamo, the Tech Sector Is Slow to Hire -- For years the technology sector has been considered the most dynamic, promising and globally envied industry in the United States. It escaped the recession relatively unscathed, and profits this year have been soaring. CATHERINE RAMPELL in the New York Times -- 9/7/10

   Education

Researcher files whistleblower retaliation complaint against UCLA -- A UCLA environmental health sciences researcher whose appointment was not renewed this year has filed a whistle-blower retaliation complaint against the university, saying he's being punished for publishing politically incorrect research findings and for previous whistle-blowing against colleagues. Erica Perez California Watch -- 9/7/10

ACLU raises questions about microchip tracking of preschoolers -- The American Civil Liberties Union is questioning Contra Costa officials over their implementation of a microchip tracking program in their preschool centers. Corey G. Johnson California Watch -- 9/7/10

Earlier cutoff date to enter kindergarten a step closer in California -- A bill that would require pupils entering kindergarten to reach 5 by Sept. 1 and that would create another level of instruction for younger children was passed by the Legislature and awaits the governor's signature. Carla Rivera in the Los Angeles Times -- 9/7/10

BP aids state's school content -- BP, the energy giant responsible for the largest offshore oil spill in history, helped develop the state's framework for teaching more than 6 million students about the environment. Rick Daysog in the Sacramento Bee -- 9/7/10

   Environment

Chevron may be seeking exemption from state environmental laws for its refinery rebuilding project -- One of Northern California's largest polluters may be trying to orchestrate a last-minute deal with Sacramento lawmakers to evade state environmental laws, potentially increasing its toxic emissions and skirting two court rulings. Paul Rogers in the San Jose Mercury -- 9/7/10

   Health Care

Cancer educates a med student -- Joshua Lilienstein lined up for treatment this summer at Los Angeles County-USC Medical Center's general oncology clinic. A medical student who'd been battling cancer for four years, Lilienstein had little choice. In June 2009, he lost his insurance after maxing out on the lifetime benefit. Molly Hennessy-Fiske in the Los Angeles Times -- 9/7/10

Lazarus: Healthcare reforms don't go far enough -- Many people are being forced into a tradeoff as insurance rates continue to rise. David Lazarus in the Los Angeles Times -- 9/7/10

Kaiser wants its employees to practice healthy living -- Kaiser Permanente built its business on wellness and prevention, helping its corporate clients bring down the cost of medicine through healthy living. Bobby Caina Calvan in the Sacramento Bee -- 9/7/10

   Also..

State steps up efforts against Nuestra Familia -- Authorities are planning to expand efforts to shut down the 45-year-old Nuestra Familia prison gang following a massive sweep in the Central Valley last week that netted dozens of alleged Nuestra Familia street operatives on drug trafficking charges. Michael Montgomery California Watch -- 9/7/10

How D.C. schools might be affected if Rhee decides to move on -- The scenario is familiar in the District and big cities across the country: An ambitious leader is appointed to reform schools. Policies and practices are upended, five-year plans unveiled, a flurry of initiatives launched with high hopes. After two or three years, political pressure from interests and constituencies unhappy with the changes forces the newcomer out. Bill Turque in the Washington Post -- 9/7/10

   POTUS 44

'They talk about me like a dog' -- Two years after appearing here on Labor Day to kick off the final stretch of his historic campaign, President Obama returned Monday to speak to union members, in a starkly different political environment. JONATHAN MARTIN Politico -- 9/7/10

Obama, in campaign mode, defends policies and offers new proposal for transportation spending -- Faced with the twin challenges of boosting the economy and saving Democratic congressional seats in November, President Obama tried to do a little of both on Monday at a Labor Day rally that heralded a prominent role for him in a fiery fall campaign. Peter Slevin in the Washington Post -- 9/7/10

Obama to Propose Plant and Equipment Tax Write-Off -- President Barack Obama will propose on Wednesday that businesses be allowed to write off all their new investments in plant and equipment through 2011, an administration official said on Monday. Reuters -- 9/7/10

   Beltway

It's a long shot, but Senate's now in GOP sights -- In a shift of political fortunes that seemed unimaginable even recently, Republicans now have a long-shot chance to take control of the Senate, bolstering their ranks with outsider candidates who would probably shake up the chamber. Lisa Mascaro in the Los Angeles Times -- 9/7/10

Republicans making gains against Democrats ahead of midterm elections -- Republicans are heading into the final weeks of the midterm campaign with the political climate highly in their favor, according to a new Washington Post-ABC News poll. Americans are increasingly frustrated by a lack of economic progress, deeply dissatisfied with the federal government and critical of President Obama's leadership. Dan Balz and Jon Cohen in the Washington Post -- 9/7/10

How the House would be won -- With both parties in agreement that House control is in play this fall, buoyant Republicans are assembling their roster of targeted districts and worried Democrats are building bunkers to protect their majority. RICHARD E. COHEN & CHARLES MAHTESIAN Politico -- 9/7/10