California will run out of prison space next year, official says -- California will run out of even makeshift prison beds in less than a year unless the state takes action, the state's corrections chief said Thursday, warning also of an increased danger of riots. DON THOMPSON AP -- 7/20/06

Indian tribes ask Congress for exemption from federal labor laws -- Indian tribes want Congress to exempt them and their casinos from federal labor laws. At a House hearing Thursday, tribes spoke out for legislation to overturn an order by the National Labor Relations Board that said - for the first time - that sovereign Indian tribes are under the board's jurisdiction. ERICA WERNER AP -- 7/20/06

Insurers sue state over new auto regulations -- Groups representing auto insurance companies filed a lawsuit against state Insurance Commissioner John Garamendi to block new rules that would base premiums on drivers' records instead of where they live. JULIET WILLIAMS AP -- 7/20/06

Schwarzenegger gives $150 million loan to stem cell agency -- A day after President Bush vetoed expanded federal funding of embryonic stem cell research, Gov. Arnold Schwarzenegger on Thursday authorized a $150 million loan to fund California's stem cell institute, which has been stalled by lawsuits. LAURA KURTZMAN AP -- 7/20/06

Prosecutors detail strategies to counter "gay panic" defense -- Lawmakers in California and New York are considering bills to deter the common courtroom strategy of making a victim's sexual orientation central to a criminal defense. Both measures would require judges to remind jurors that bias toward the victim cannot influence their deliberations. LISA LEFF AP -- 7/20/06

Elder Bush enlisted by governor's campaign -- President Bush -- H.W., not W. -- will join Gov. Arnold Schwarzenegger today at two private California fundraisers as the Republican governor seeks to raise $75 million this campaign season for the party and his own race against Democrat Phil Angelides. Kevin Yamamura in the Sacramento Bee Kate Folmar in the San Jose Mercury -- 7/20/06

Schwarzenegger vows to traverse the globe to sell state's products -- Gov. Arnold Schwarzenegger -- arguing that he has been the "super salesman" of California products from produce to high technology -- said Wednesday that in addition to his upcoming trade mission to Mexico, he will travel to India and Europe as part of what he called a "commitment to bring back California's economy.'' Carla Marinucci in the San Francisco Chronicle Josh Richman in the Oakland Tribune -- 7/20/06

It's a Good Time for Angelides to Tune His Pitch -- Summers are dangerous for candidates who run against sitting governors. This summer is particularly dangerous for Democratic Treasurer Phil Angelides. Typically, the challenger has just emerged from a bruising primary, is all beat up and broke. The incumbent strikes with an arsenal of negative TV ads — roughly $12 million worth in Gov. Arnold Schwarzenegger's case — plus the usual cache of gubernatorial weapons: bill-signing photo ops, grants of public money, patronage appointments, the ability to feign action. George Skelton in the Los Angeles Times -- 7/20/06

Lawyer reprimanded for trying to force doctors to contribute to Angelides -- A Beverly Hills lawyer who represents injured workers before the state has told doctors that he and his colleagues will not refer clients their way unless they contribute at least $2,500 each to defeat Gov. Schwarzengger. The group representing the attorneys who specialize in workers compensation insurance cases immediately disavowed the lawyer's comments. John Howard in Capitol Weekly -- 7/20/06

San Diego Cross -- Supporters of keeping the cross atop Mt. Soledad were buoyed Wednesday when the House of Representatives voted to transfer the city-owned land beneath the cross to the federal government. A federal judge has ruled that the cross violates the constitutional separation of church and state and must be removed; the order was temporarily stayed by the U.S. Supreme Court. Richard Simon and Tony Perry in the Los Angeles Times Dana Wilkie in the San Diego Union-Trib -- 7/20/06

San Quentin project -- Robert Sillen says California's government has tied itself into so many bureaucratic knots that it can no longer function as an efficient enterprise, at least when it comes to providing health care to prison inmates. That's why an experiment he is conducting at San Quentin Prison could prove to be interesting, and not just for people concerned about the welfare of convicted criminals. Daniel Weintraub in the Sacramento Bee -- 7/20/06

Bermudez leads the term-limits two-step -- This week, Assemblyman Rudy Bermudez, D-Norwalk, became the latest poster child for legislators trying to stay in office. Shane Goldmacher in Capitol Weekly -- 7/20/06

Personal ties lead Dymally into Vernon elections fight -- The last time the state intervened in a local city election, it was 2002. That year, the Senate Elections Committee authored a measure that took power away from the city of South Gate to run its own elections, after the city treasurer and three members of the city council helped turn South Gate into a national punch line. Anthony York in Capitol Weekly -- 7/20/06

Capitol DMV handles tough constituent problems -- If you walk in the Legislative Office Building, pass a CHP officer who claims not to know of it's existence, go through an official-looking door, take a couple turns and follow some cryptic signs, you'll find the locked, unmarked door of a Department of Motor Vehicles location that probably won't serve you. Malcolm Maclachlan in Capitol Weekly -- 7/20/06

Voting Rights Act -- The NAACP flexed its muscle Wednesday on Capitol Hill, persuading legislators in a matter of hours to act on renewing portions of the Voting Rights Act, a measure that had been stalled for months. Leslie Fulbright in the San Francisco Chronicle-- 7/20/06

Layoffs Sweep Movie Studios -- Never mind that movie ticket sales are picking up and that "Pirates of the Caribbean: Dead Man's Chest" could become the biggest hit in motion picture history. As studios slash jobs and restructure to boost profits, Hollywood's creative and executive ranks are having a collective anxiety attack. Claudia Eller and Richard Verrier in the Los Angeles Times -- 7/20/06

Families feel bite of inflation -- After years of mellow inflation, prices for everything from seafood to medical care and air fares have been rising at a faster clip than consumers have seen in 15 years. And how people are feeling it. Deb Kollars in the Sacramento Bee -- 7/20/06

Stock Options -- At the high-tech company Brocade Communications Systems Inc., employees received an unusual request from human-resources managers in 2002: Alter the employment records of several executives to make it seem they joined the company later than they really did. The reason for this strange request was to give their stock options more value. STEVE STECKLOW in the Wall Street Journal -- 7/20/06

Title Insurance Rates -- Homeowners in the state could save an estimated $1 billion a year. Insurers decry the plan. Marc Lifsher in the Los Angeles Times Gilbert Chan in the Sacramento Bee -- 7/20/06

Hotels propose fewer benefits for new workers -- Negotiators for 13 hotels in San Francisco have offered workers a contract proposal in which new hires will have to work five years to be eligible for the level of health care current workers have -- a two-tier system union officials predict will be rejected. George Raine in the San Francisco Chronicle-- 7/20/06

State gets taste of crop shortage -- Absence makes the price go higher as Fresno-area rains cut this year's crop of lemon grass, increasing the value of a key cooking ingredient in Southeast Asian cuisine. Dennis Pollock in the Sacramento Bee -- 7/20/06

Guard's border role -- California National Guard troops are under orders not to detain illegal immigrants, much less wrestle them into handcuffs or fire a shot. But the 900 deployed so far along California's border with Mexico are expected to move around a lot of dirt to improve and build roads and fencing. Susan Ferriss in the Sacramento Bee ELLIOT SPAGAT AP MICHAEL CORONADO in the Orange County Register Rick Rogers in the San Diego Union-Trib -- 7/20/06

Division on deployment -- As the California National Guard mobilizes 1,100 soldiers at the border with Mexico to operate surveillance cameras, help with construction projects and free more patrol agents to work in the field, Javier Perez waits undeterred in Tijuana to enter the United States illegally in a few days. JOE VARGO and CLAUDIA BUSTAMANTE in the Riverside Press -- 7/20/06

It Wasn't the Court Order She Sought -- Illegal immigrant seeks order against husband. The judge tells her to get out or be deported. Sam Quinones in the Los Angeles Times -- 7/20/06

Barrio to Boardroom -- The head of the National Council of La Raza wants other Latinos to have the same chance she did to work her way from poverty to success. Teresa Watanabe in the Los Angeles Times -- 7/20/06

Minuteman leader: Don't bring guns -- Minuteman Project founder Jim Gilchrist said Wednesday that he would prefer that his citizen volunteers leave their guns at home when patrolling the border against illegal immigration. Peter Hecht in the Sacramento Bee Bill Bradley NWN weblog -- 7/20/06

Minutemen plan border action -- Minuteman Project founder Jim Gilchrist said today that his group plans a mass action at the Laredo, Texas, border beginning Sept. 11 to try and persuade voters to make illegal immigration their litmus test at the ballot box this fall. SORAYA SARHADDI NELSON and CHARLES PROCTOR in the Orange County Register -- 7/20/06

Minorities at UC -- Alarmed by declining numbers of African American students at UCLA and other campuses, University of California regents on Wednesday decided to study the effect of the state's 10-year-old ban on affirmative action on UC admissions and student enrollment. Larry Gordon in the Los Angeles Times Michelle Maitre in the Oakland Tribune -- 7/20/06

pay raises for top UC executives -- Seventy-one University of California executives will share $770,000 in raises, part of an effort that UC officials say is to bring their pay up to that of their peers at other universities. Tanya Schevitz in the San Francisco Chronicle Michelle Maitre in the Oakland Tribune -- 7/20/06

UCSD's Fox to credit back $248,000 sabbatical pay -- UCSD Chancellor Marye Anne Fox says she will credit back a questionable quarter-million-dollar payout she received last year for a sabbatical she reportedly earned at a previous institution. A committee of University of California regents voted last night to recommend that Fox return the money, with interest. Eleanor Yang Su in the San Diego Union-Trib -- 7/20/06

Chancellor defends CSU's policies -- California State University officials defended their policies Tuesday that led to the payment of millions of dollars of extra compensation to departing executives, but left open the possibility that some practices might need to be re-examined. Jim Doyle in the San Francisco Chronicle-- 7/20/06

Beleaguered Schools Chief Quitting -- Accused by opponents of dirty tricks and mismanagement, the superintendent of the Capistrano Unified School District announced his resignation Wednesday, ending a 15-year tenure in which he oversaw academic gains and sharp growth in one of the state's top districts. Seema Mehta in the Los Angeles Times -- 7/20/06

Oakland School board opposes sale -- A team of New York developers has proposed a $500 million development that would replace the rundown administrative buildings and five schools with high-rise condominiums on the 9-acre property. Simone Sebastian in the San Francisco Chronicle-- 7/20/06

Affordable health care -- Gov. Arnold Schwarzenegger on Monday will host a summit on health care affordability, a meeting where stars of the health- policy universe will toss out ideas for stemming skyrocketing medical costs and covering the nearly 6.5 million Californians who are uninsured. Clea Benson in the Sacramento Bee -- 7/20/06

San Francisco Healthcare to Uninsured -- The city is on the verge of passing a plan to provide comprehensive care to estimated 82,000 people at an annual cost of $200 million. Rong-Gong Lin II in the Los Angeles Times -- 7/20/06

'Advergames' hook kids on products -- Major companies that sell candy, cookies and sugary cereals have turned to flashy Web sites and Internet games to draw children into their snack-food world, according to a study released Wednesday. Ilene Lelchuk in the San Francisco Chronicle David Goldstein in the Sacramento Bee Mike Taugher in the Contra Costa Times -- 7/20/06

Hotel chain tells guests to butt out -- Smokers seeking sanctuary at Marriott hotels won't have much relief starting September. Rooms, lobbies and even balconies will be off-limits when the third-largest hotel chain in the world phases out designated smoking rooms later this year. KIMBERLY PIERCEALL in the Riverside Press -- 7/20/06

Hetch Hetchy -- The cost of dismantling the dam that created Yosemite's Hetch Hetchy Reservoir and restoring the glacial gorge that John Muir considered one of the national park's scenic treasures could range from $3 billion to nearly $10 billion, according to a state report released Wednesday. Eric Bailey in the Los Angeles Times Matt Weiser in the Sacramento Bee Paul Rogers in the San Jose Mercury Hank Shaw in the Stockton Record -- 7/20/06

Backers undeterred by Hetch Hetchy estimate -- Environmentalists vowed Tuesday to press ahead with their campaign to restore the Hetch Hetchy Valley to its natural state, buoyed by a state report that says draining the reservoir is technically feasible and undeterred by significant political opposition and a price tag that could hit $10 billion. Chuck Squatriglia in the San Francisco Chronicle-- 7/20/06

Governor won't take sides on reservoir issue -- Normally aggressive on environmental issues, Gov. Arnold Schwarzenegger hasn't committed to restoring a lost treasure near Yosemite Valley even as a new state report concludes that a proposal to drain the Hetch Hetchy reservoir and turn off its power production contains “no fatal flaws.” Noted conservationist John Muir once described the Hetch Hetchy Valley as a “mountain temple.” Michael Gardner in the San Diego Union-Trib -- 7/20/06

With heat comes higher electricity demand - and greater chance of state emergency -- Five years after a massive energy crisis roiled California, the state has added capacity to power nearly 6 million more households - but it's still barely enough. HARRISON SHEPPARD in the Los Angeles Daily News -- 7/20/06

Schwarzenegger proposes changes to bill seeking to cut emissions -- Gov. Arnold Schwarzenegger is seeking changes to a bill that would make California the first state in the nation to cap greenhouse gas emissions from industrial sources, a move that could put him in a difficult political position if Democrats object to his amendments. SAMANTHA YOUNG AP -- 7/20/06

Selling power by the hour -- For the past two years, Camping and her husband, Mike Lewis, have been part of a Pacific Gas and Electric Co. experiment that changes the way customers measure and pay for power. And if state regulators approve the idea at a meeting today, all the utility's customers could eventually follow suit. David R. Baker in the San Francisco Chronicle -- 7/20/06

High-speed-rail vote delayed … again -- Despite bipartisan legislative backing and polling evidence indicating widespread voter support, a proposed bullet train connecting San Francisco, Los Angeles and other metropolitan centers has been put on hold while the state recovers from record budget deficits and borrows money for other transportation priorities. Matt Levin in Capitol Weekly -- 7/20/06

Polluted Soil -- Bowing to pressure, including a request by two state lawmakers, one of the state agencies overseeing Boeing Co.'s cleanup of its rocket testing site near Simi Valley agreed Wednesday to delay soil removal in a contaminated area until after it holds a public meeting. Gregory W. Griggs in the Los Angeles Times ERIC LEACH in the Los Angeles Daily News -- 7/20/06

San Francisco's hidden sand dunes -- It turns out there are more than 2 square miles of dunes right next to the city, and world-class dunes at that: Only a few sites around the globe have larger dunes of this sort. Access, however, will remain difficult unless you're a sand dab or Dungeness crab. The dunes are just west of the Golden Gate, submerged in 100 to 350 feet of sea water. Glen Martin in the San Francisco Chronicle-- 7/20/06

Marin, Sonoma to vote on rail system -- Voters in Marin and Sonoma counties will decide in November whether to raise the sales tax one-quarter percent to build a passenger rail-service system adjacent to the Highway 101 corridor -- a proposal that has been debated for more than two decades. Rachel Gordon in the San Francisco Chronicle -- 7/20/06

Home prices inch up -- Bay Area home prices are slowing and rents are going up, an indication that the housing market has entered a post-boom era in which buying a home no longer guarantees a profit. Kelly Zito in the San Francisco Chronicle-- 7/20/06

Rent Increases -- Renters who sat out the housing boom over concerns about skyrocketing home prices are now facing an explosion of another sort: soaring monthly rents. Rents in Los Angeles and Orange counties in the last two quarters rose at their fastest rate in five years, making them the costliest of any major market in the Western U.S., according to data to be released today. Annette Haddad in the Los Angeles Times -- 7/20/06

Cost of housing hits home -- More than half of all households surveyed in the sprawling Central Valley of California — a share that has risen sharply from five years ago — consider affordable housing a big problem. Sanford Nax in the Fresno Bee -- 7/20/06

House panel OKs land preserves -- Legislation that would add wilderness protection to more than 275,000 acres of federal land along California's North Coast cleared a key House committee Wednesday, a crucial step that virtually assures the bill will become law this year. David Whitney in the Sacramento Bee -- 7/20/06

Fail-Safe Fails: FAA Looks for Answers -- When radar screens suddenly went dark at Palmdale's regional air traffic center on Tuesday, controller Bruce Bates and his colleagues knew instinctively what to do: They grabbed their cellphones and started calling for help. Jennifer Oldham and Ricardo Alonso-Zaldivar in the Los Angeles Times -- 7/20/06

Oakland, Richmond officials tell of problems in fighting violent crime -- State Senate President Pro Tem Don Perata got an earful Wednesday from a group of public officials and nonprofit service providers at a closed-door summit on violent crime plaguing Oakland and Richmond. Jim Herron Zamora in the San Francisco Chronicle-- 7/20/06

Bratton wants 5 more years as police chief -- Defiantly refusing to apologize, Police Chief William Bratton declared Wednesday that he will seek a second five-year term as the city's top cop - setting the stage for a direct confrontation with his City Council critics. RICK ORLOV in the Los Angeles Daily News -- 7/20/06

L.A.'s Elected Leaders to See Big Jump in Pay -- Since 1990, the City Charter has tied the salaries of elected officials to those of California's Superior Court judges. The pay for judges is determined by a complex formula that takes into account the average raises of all state employees. Steve Hymon in the Los Angeles Times -- 7/20/06

Gift to Son Ensnares Garcetti -- As president of the Los Angeles Ethics Commission, Gil Garcetti sits in judgment of those accused of violating the city's campaign finance laws. As the father of an aspiring young politician, it was perhaps only natural that Garcetti, a former Los Angeles County district attorney, would contribute to the reelection campaign of his son, Councilman Eric Garcetti. Jeffrey L. Rabin in the Los Angeles Times -- 7/20/06

Secretary Fined for Role in Illegal Bid to Aid Hahn -- The secretary to prominent Los Angeles attorney Pierce O'Donnell has been fined $41,000 by the city Ethics Commission for her role in "aiding and abetting" his laundering of contributions to James K. Hahn's 2001 campaign for mayor. Jeffrey L. Rabin in the Los Angeles Times -- 7/20/06

"Bumfights" Case -- Jury decides Justin Brumfield is guilty of beating—but not trying to kill—two homeless men. Police said a DVD was the inspiration. Jessica Garrison in the Los Angeles Times -- 7/20/06

Movie Execs Charged in Money-Laundering Case -- Limelight Films seemed from the outside like so many upstart production companies in Hollywood: It had a Sunset Boulevard address, a connection to Tinseltown royalty and deals to distribute a small slate of low-budget films. Andrew Blankstein and Richard Winton in the Los Angeles Times -- 7/20/06