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money-laundering -- An administrative law judge will hear evidence on allegations that state Sen. Tom Berryhill (R-Modesto) illegally used two county Republican committees to launder $40,000 in political funds to benefit the 2008 election effort of his brother, former Assemblyman Bill Berryhill (R-Stockton). Patrick McGreevy in the Los Angeles Times$ -- 12/13/12

California may cut Medi-Cal reimbursements -- A federal appeals court on Thursday ruled that California may cut Medi-Cal reimbursements and lifted injunctions that had prevented the trims from taking effect. Maura Dolan in the Los Angeles Times$ -- 12/13/12

Pinole redevelopment asset transfers -- The City Council improperly transferred $24.5 million in redevelopment assets to the city and must turn them over to the redevelopment successor agency, according to a state review. Tom Lochner in the Contra Costa Times -- 12/13/12

37.8 million -- California’s population has grown to 37.8 million, an increase of about 256,000 people since 2011, according to new figures from the state Department of Finance. But more people are moving out of the state than moving in, the numbers show. Anthony York in the Los Angeles Times$ Kevin Yamamura in the Sacramento Bee$ -- 12/13/12

ballot measure financiers -- The state’s political campaign finance watchdog agency is considering new rules Thursday aimed at helping the public track who is paying to qualify ballot measures and how much is being spent independently of candidates in their support or opposition. Patrick McGreevy in the Los Angeles Times$ -- 12/13/12

Fox: Not Living Up to Expectations Can Hurt the Taxpayer … and Frustrate the Sports Fan -- In public affairs and on the sporting fields you don’t always get what you expect. Miscalculations can undermine policy plans with costly results. Joel Fox Fox & Hounds -- 12/13/12

Fox: Wishing the Governor Well -- Disclosure that Governor Jerry Brown is being treated for prostate cancer indicates that the governor is effectively dealing with the disease while staying full time on the job. Reports indicate that the disease was caught early and can be dealt with successfully. We wish the governor well. Joel Fox Fox & Hounds -- 12/13/12

Smokeless tobacco -- Though the prevalence of cigarette smoking among California high school students has declined over the past decade, smokeless tobacco use has risen among high school students, from 3.1 percent in 2004 to 3.9 percent in 2010, according a report released this morning. David Siders in the Sacramento Bee$ -- 12/13/12

On freshman disorientation at California's Capitol -- Imagine trying to run a successful business in which every two years one-third of the veteran employees leave and are replaced with green sieve heads who require training, mentoring and vigilant supervision to avoid All-World cluster****s that featureoverzealous health inspectors, class-action lawsuits, mangled co-workers—or a combination of the three. Greg Lucas Sac News & Review -- 12/13/12

Arnold: 'I love paying my taxes!' -- In a new interview with Esquire, former Gov. Arnold Schwarzenegger reflects on his time in public office and shares what he’s learned about politics. PATRICK GAVIN Politico Torey Van Oot in the Sacramento Bee$ -- 12/13/12

Nadia Lockyer's restraining order -- Former Alameda County Supervisor Nadia Lockyer's temporary restraining order against her former extramarital lover expired today without a fight from her lawyer, who says Lockyer will probably remain in residential drug treatment in Orange County until early February. Josh Richman in the San Jose Mercury -- 12/13/12

nudists’ federal lawsuit -- San Francisco City Attorney Dennis Herrera filed a motion today seeking the dismissal of a federal lawsuit challenging the city’s new ban on public nudity. Josh Richman Political Blotter -- 12/13/12

Susan Rice withdraws -- United Nations Ambassador Susan Rice on Thursday withdrew her name from consideration to be appointed secretary of state by President Barack Obama. REID J. EPSTEIN Politico -- 12/13/12

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   California Policy and Politics This Morning

California lawmaker proposes benefits for undocumented immigrants -- A California lawmaker wants to expand government benefits for hundreds of thousands of undocumented immigrants who qualify for a new federal work-permit program. Michael J. Mishak in the Los Angeles Times$ -- 12/13/12

California Gov. Jerry Brown being treated for prostate cancer -- In a sign that age may be catching up with California's ageless politician, Gov. Jerry Brown's office revealed Wednesday that he is being treated for early stage prostate cancer. Steven Harmon in the San Jose Mercury David Siders in the Sacramento Bee$ Wyatt Buchanan and Erin Allday in the San Francisco Chronicle -- 12/13/12

Brown's cancer doctor a leader in his field, colleagues say -- Dr. Eric J. Small, the oncologist treating Gov. Jerry Brown’s cancer, is highly respected in the profession and a leading expert on the treatment of prostate cancer, colleagues say. Patrick McGreevy and Chris Megerian in the Los Angeles Times$ -- 12/13/12

Skelton: Now is the time to adjust Prop. 13 -- When nearly two-thirds of the citizenry vote to tax themselves to expand transit but don't prevail, then democracy has gone cockeyed. If a small minority can thwart the will of the vast majority on a routine local tax issue, it's absurd. George Skelton in the Los Angeles Times$ -- 12/13/12

$10 million Bay Bridge contract included book deal, video -- State officials overseeing construction of the new San Francisco-Oakland Bay Bridge agreed this year to pay a public relations company nearly $10 million for services the Brown administration says it knew nothing about, including hundreds of thousands of dollars to conduct tours and to produce a video and commemorative book. David Siders in the Sacramento Bee$ -- 12/13/12

Governor kills PR for Bay Bridge project -- The governor's office has killed a $9.8 million communication contract with the PR firm for the Bay Bridge construction project, worrying the tremendous cost would look improper weeks after voters approved new taxes for the cash-strapped state. Phillip Matier and Andrew Ross in the San Francisco Chronicle -- 12/13/12

Audit: Illegal commuting expenses, other corruption cost state millions -- The state Department of Fish and Game allowed a favored employee to ring up $71,747 in commuting expenses between her home in Southern California and her Sacramento office, including $45,233 in flights and $6,922 in parking, according to state audits. Morgan Cook in the Orange County Register -- 12/13/12

Nonprofits wade into political giving -- Some groups turn to PACs as way to gain influence, protect charitable tax donation. AMY JULIA HARRIS Bay Citizen -- 12/13/12

Duke Cunningham released to halfway house -- Former Republican Rep. Randy “Duke” Cunningham, who has been in federal prison since admitting to taking bribes, has been transferred to a halfway house in New Orleans for the final few months of his prison term. Greg Moran UT San Diego$ -- 12/13/12

Mirkarimi is asked to resign, but recall is on hold -- Activists who had discussed a recall of San Francisco Sheriff Ross Mirkarimi, who was convicted earlier this year of a domestic violence-related crime, instead have launched a website to gather petition signatures urging him to resign. Fat chance. Josh Richman Political Blotter -- 12/13/12

Texas Pension Manager Paid $1 Million Trails Peers Who Make Less -- The California Public Employees’ Retirement System, the largest public pension in the U.S., paid $4.1 million to 50 workers in 2011, the fund said. By comparison, the three highest-performing funds over the past 10 years, the Pennsylvania School Employees Retirement System, Ohio Police & Fire Pension Fund and Pennsylvania State Employees’ Retirement System, didn’t have an employee paid more than $270,000, and none pays bonuses, the funds said. Mark Niquette & Martin Z. Braun Bloomberg -- 12/13/12

State threatens to shut down disability center amid patient abuse -- The state's largest board-and-care center for the severely disabled lost its primary license to operate today, after repeatedly exposing patients to abuse and shoddy medical care. RYAN GABRIELSON Bay Citizen -- 12/13/12

Rep. Loretta Sanchez’s 2012 Christmas card: Fiscal cliff, Gretzky in heaven -- Here it is, ladies and gentlemen — your Rep. Loretta Sanchez Christmas card for 2012! Roxanne Roberts and Amy Argetsinger in the Washington Post -- 12/13/12

Before Term Begins, Swalwell Looking Over Shoulder -- Incoming House freshmen routinely enter Congress instantly marked for a re-election challenge by the opposition, but one 2012 winner is facing such political headwinds from within. Kyle Trygstad Roll Call -- 12/13/12

   Economy

California prison health care receiver issues lay off notices -- California Correctional Health Care Services has issued lay off warnings to 2,200 of its employees with a goal of axing 829 positions early next year. Jon Ortiz in the Sacramento Bee$ -- 12/13/12

Foreclosures, defaults way down in Sacramento area -- Foreclosure activity in the Sacramento region plunged by more than half in November compared with the same month a year before and decreased significantly even since October, RealtyTrac reported Wednesday. Hudson Sangree in the Sacramento Bee$ -- 12/13/12

Silicon Valley is in 'technology depression,' not bubble, Marc Andreessen says -- Far from experiencing a bubble, Silicon Valley has been in the throes of a "technology depression," Netscape co-founder and venture capitalist Marc Andreessen said at the New York Times Dealbook conference on Wednesday. Sarah McBride Reuters -- 12/13/12

Southern California posts most November home sales since 2006 -- Southern California's housing market surged again last month, with the number of homes sold climbing more than 14% from a year earlier to their the highest level for any November in six years. E. Scott Reckard in the Los Angeles Times$ -- 12/13/12

Fed to tie interest rate to job gains -- The hope is to bring unemployment below 6.5%. Strategy marks a dramatic change in policy, made easier by low inflation lately. Don Lee and Jim Puzzanghera in the Los Angeles Times$ -- 12/13/12

   Education

$100-million gift to cover costs for 30-plus UCLA medical students -- David Geffen is donating the money for the scholarships, which are unprecedented, says an official with the Assn. of American Medical Colleges. Anna Gorman in the Los Angeles Times$ -- 12/13/12

UniversityNow offers free bachelor's degrees to some workers -- Workers in Oakland and San Francisco have a chance to earn free college degrees online, if their companies agree to help out. Katy Murphy in the Oakland Tribune -- 12/13/12

   Health Care

Blue Shield of California seeks rate hikes up to 20% -- In filings with state regulators, Blue Shield is seeking an average rate increase of 12% for more than 300,000 customers. Consumer advocates say the firm should use its reserves to hold down rates. Chad Terhune in the Los Angeles Times$ -- 12/13/12

San Francisco lowest mastectomy rate for over-65s -- The Bay Area has among the lowest rates of mastectomy surgeries among Medicare patients in the country, a finding that suggests women are likely opting for lumpectomy and radiation or other treatment for early-stage disease. Victoria Colliver in the San Francisco Chronicle -- 12/13/12

Flame retardants in furniture more common than expected -- Flame retardants in furniture once seemed like a good way to prevent fire accidents in our homes. But multiple animal and human studies suggest that many flame retardant chemicals used to treat furniture are either toxic or have not yet been proven safe for long-term use. Mary Flynn HealthyCal.org -- 12/13/12

A shift in how healthcare is paid for -- In Massachusetts, thousands of physicians receive more pay if their patients stay healthy and avoid costly medical care. It could become a national template. Noam N. Levey in the Los Angeles Times$ -- 12/13/12

Hiltzik: Is California's stem cell program preparing to waste $700,000? -- If you're betting that the California stem cell agency will spurn key recommendations of a blue-ribbon review panel that criticized its leadership and management structures, you might want to double that bet. Several board members showed overt hostility to the panel's recommendations during a public meeting today. Michael Hiltzik in the Los Angeles Times$ -- 12/13/12

   Environment

Colorado River water supply to fall short of demand, study says -- The federal report predicts a drier future for the seven states that rely on the Colorado for water. A range of solutions, some impractical, are proposed. Bettina Boxall in the Los Angeles Times$ Michael Gardner UT San Diego$-- 12/13/12

Officials call for limits on use of super-toxic rat poison -- D-CON kills rats and mice, the label reads. And, according to state and federal officials, it can kill hawks, owls, eagles, foxes, bobcats, mountain lions and other non-targeted wildlife too. Kenneth R. Weiss in the Los Angeles Times$ -- 12/13/12

Environmentalists sue California, spark fracking feudFracking feud -- It might lack the big hair and cowboy hats of Dallas, but the latest dustup between California’s oilmen and environmentalists is certainly dramatic. Christopher Arns Sac News & Review -- 12/13/12

Bike Nation USA Bringing Bike Sharing To Downtown L.A. -- Hundreds of rental bikes will be deployed in early 2013 to the streets of Downtown Los Angeles. Bike Nation USA, a company based in Tustin, announced plans in April to place 175 bike rental stations in an area that will stretch from Union Station to Exposition Park. Axel Hellman USC Neon Tommy -- 12/13/12

   Also..

California prison phychiatrist under investigation for $800,000 pay -- After raking in half a million dollars for being "on call," California's top paid public employee of 2011 -- a prison psychiatrist from Newark -- has been suspended with pay for allegedly falsifying time records, officials said Tuesday. Thomas Peele in the Contra Costa Times -- 12/13/12

L.A. Planners Look To Ensure Expo Line Doesn't Price Residents Out Of Their Homes -- Mosley’s situation illustrates one of the unintended consequences of the Expo Line as it creates a new mass-transit alternative for the Westside: Current residents who might benefit the most from using the line could be priced out of their homes and apartments as those properties become more desirable. Shako Liu USC Neon Tommy -- 12/13/12

Saunders: Let there be UC Lite -- When you think about it, it's amazing that the high-minded swells at the University of California didn't unveil a new logo sooner. Debra J. Saunders in the San Francisco Chronicle -- 12/13/12

Google Maps for iPhone arrives in Apple's App Store, giving alternative to derided Apple Maps -- To the relief of iPhone users worldwide, Google announced Wednesday evening that it had begun rolling out its Maps app for iOS users, giving users of Apple's popular smartphone an alternative to the Cupertino company's competitor that angered enough customers to elicit an apology from CEO Tim Cook. Jeremy C. Owens in the San Jose Mercury -- 12/13/12

On-line petition demands San Francisco sheriff's resignation -- Two months after suspended San Francisco Sheriff Ross Mirkarimi was reinstated, on-line petitioners are demanding the lawman's resignation. Maria La Ganga in the Los Angeles Times$ -- 12/13/12

Bid to put bamboo garden on billboard meets funding goal -- The $100,000 cost of the prototype project is raised via an online public funding platform. The artist hopes the concept will take root around the world. Corina Knoll in the Los Angeles Times$ -- 12/13/12

Opossum cruelty case costs Anaheim $400,000 -- The city of Anaheim has paid $400,000 to settle a wrongful arrest suit brought by a father and son accused of beating an opossum and trying to cover it up. It turns out there is no law in California against killing opossums. Tony Saavedra in the Orange County Register -- 12/13/12

   Beltway

John Boehner getting bad reviews on ‘fiscal cliff’ talks -- By a better than 2-to-1 margin, registered voters disapprove rather than approve of House Speaker John Boehner’s performance during the fiscal cliff talks, according to a new Washington Post-ABC News poll – a negative rating due in large part to the lack of uniform support for him among Republicans. Jon Cohen, Scott Clement and Aaron Blake in the Washington Post -- 12/13/12

House GOP Frustrated on Sidelines of Cliff Negotiations -- Speaker John A. Boehner and GOP leaders are considering throwing some red meat onto the House floor in the coming weeks as frustration mounts from members who are tired of sitting idle while high-level fiscal cliff negotiations continue between the Ohio Republican and the White House. Daniel Newhauser Roll Call -- 12/13/12

Democrats see middle ground for revenue target -- Democrats waging a take-no-prisoners approach to the fiscal cliff are showing signs of flexibility on one key issue: just how much money the government should rake in. STEVEN SLOAN Politico -- 12/13/12

Watchdogs warn House ethics process is at risk -- Government watchdogs are warning that the independent office responsible for overseeing ethics investigations of House lawmakers runs the risk of becoming a toothless entity if leaders fail to appoint new board members in the closing weeks of the year. Ed O'Keefe in the Washington Post -- 12/13/12