Schwarzenegger to sign insurance overhaul bill

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Monday, April 19, 2004 | 9:16 a.m.

SACRAMENTO -- California lawmakers have replaced a costly and roundly unpopular workers' compensation system with a package of reforms that businesses applaud but critics still deride as a sellout to insurance companies.

In a big -- and overwhelming -- win for Gov. Arnold Schwarzenegger, the Legislature on Friday easily passed a wholesale overhaul of the system that treats injured workers.

Following a 77-3 vote in the Assembly, the Senate passed the bill by a 33-3 margin.

Because the Legislature passed the bill with more than a two-thirds majority, it will become law immediately after Schwarzenegger signs it this afternoon at a Boeing Co. aircraft factory outside Los Angeles.

Lawmakers acted ahead of a deadline set by Schwarzenegger. A political committee backed by $1.6 million worth of Schwarzenegger campaign funds said it had gathered more than 1.2 million signatures to qualify the issue for the Nov. 2 ballot and was prepared to turn them in Friday if lawmakers didn't pass the bill.