An alleged maternity hotel operating out of a hilltop mansion in Chino Hills has apparently shut down after city officials obtained a temporary restraining order against its owners.
The mansion allegedly housed women from China who traveled to California to give birth to American citizen babies.
In a Dec. 7 court filing, Chino Hills officials describe a seven-bedroom house divided into 17 bedrooms and 17 bathrooms, with mothers and their babies staying in 10 of the rooms. The owners did not obtain permits to remodel the property, nor were they allowed to operate a business in a residential zone, the complaint stated.
Neighbors on Woodglen Drive complained of cars speeding in and out of the mansion's driveway. In September, about 2,000 gallons of raw sewage spilled down the hill because of an overloaded septic system.
Last month, a group called Not in Chino Hills staged a protest against the facility.
City officials who inspected the alleged hotel said conditions inside were dangerous, with exposed wiring, missing smoke alarms and holes in the bedroom floors. They found brochures titled "USA Los Angeles Hermas International Club Guidance on How to Have an American Baby," according to the Dec. 7 complaint. One woman said she paid $150 a day for her room. A receipt from another guest totaled $27,000 for a stay of several months, the complaint said.
So-called birth tourism is widespread in the San Gabriel Valley, with Chinese-language websites advertising rooms in single-family homes or luxury apartment complexes. The women typically enter the country on tourist visas and stay for about a month after giving birth. The child has the option of returning to the U.S. for schooling, and the parents may petition for a green card when the child turns 21.
The practice does not violate federal immigration laws, but some maternity hotels have run afoul of local ordinances.
On Dec. 27, San Bernardino County Superior Court Judge Ben Kayashima granted Chino Hills' request for a temporary restraining order. A hearing is scheduled for Jan. 17 to determine whether the order should be extended.
The Woodglen Drive house now appears to be unoccupied, city spokeswoman Denise Cattern said Thursday.
Hai Yong Wu, one of the owners, could not be reached for comment.
"It's about time. This thing should have shut down a long time ago," said Rossana Mitchell, a founder of Not in Chino Hills. "I'm glad to hear it."
Author’s note: Most people don’t realize that we knew in the 1920s that leaded gasoline was extremely dangerous. And in light of a Mother Jones story this week that looks at the connection between leaded gasoline and crime rates in the United States, I thought it might be worth reviewing that history. The following is an updated version of an earlier post based on information from my book about early 10th century toxicology, The Poisoner’s Handbook.
In the fall of 1924, five bodies from New Jersey were delivered to the New York City Medical Examiner’s Office. You might not expect those out-of-state corpses to cause the chief medical examiner to worry about the dirt blowing in Manhattan streets. But they did.
To understand why you need to know the story of those five dead men, or at least the story of their exposure to a then mysterious industrial poison.
The five men worked at the Standard Oil Refinery in Bayway, New Jersey. All of them spent their days in what plant employees nicknamed “the loony gas building”, a tidy brick structure where workers seemed to sicken as they handled a new gasoline additive. The additive’s technical name was tetraethyl lead or, in industrial shorthand, TEL. It was developed by researchers at General Motors as an anti-knock formula, with the assurance that it was entirely safe to handle.
But, as I wrote in a previous post, men working at the plant quickly gave it the “loony gas” tag because anyone who spent much time handling the additive showed stunning signs of mental deterioration, from memory loss to a stumbling loss of coordination to sudden twitchy bursts of rage. And then in October of 1924, workers in the TEL building began collapsing, going into convulsions, babbling deliriously. By the end of September, 32 of the 49 TEL workers were in the hospital; five of them were dead.
The problem, at that point, was that no one knew exactly why. Oh, they knew – or should have known – that tetraethyl lead was dangerous. As Charles Norris, chief medical examiner for New York City pointed out, the compound had been banned in Europe for years due to its toxic nature. But while U.S. corporations hurried TEL into production in the 1920s, they did not hurry to understand its medical or environmental effects.
In 1922, the U.S. Public Health Service had asked Thomas Midgley, Jr. – the developer of the leaded gasoline process – for copies of all his research into the health consequences of tetraethyl lead (TEL).
Midgley, a scientist at General Motors, replied that no such research existed. And two years later, even with bodies starting to pile up, he had still not looked into the question. Although GM and Standard Oil had formed a joint company to manufacture leaded gasoline – the Ethyl Gasoline Corporation - its research had focused solely on improving the TEL formulas. The companies disliked and frankly avoided the lead issue. They’d deliberately left the word out of their new company name to avoid its negative image.
In response to the worker health crisis at the Bayway plant, Standard Oil suggested that the problem might simply be overwork. Unimpressed, the state of New Jersey ordered a halt to TEL production. And because the compound was so poorly understood, state health officials asked the New York City Medical Examiner’s Office to find out what had happened.
In 1924, New York had the best forensic toxicology department in the country; in fact,, it had one of the few such programs period. The chief chemist was a dark, cigar-smoking, perfectionist named Alexander Gettler, a famously dogged researcher who would sit up late at night designing both experiments and apparatus as needed.
It took Gettler three obsessively focused weeks to figure out how much tetraethyl lead the Standard Oil workers had absorbed before they became ill, went crazy, or died. “This is one of the most difficult of many difficult investigations of the kind which have been carried on at this laboratory,” Norris said, when releasing the results. “This was the first work of its kind, as far as I know. Dr. Gettler had not only to do the work but to invent a considerable part of the method of doing it.”
Working with the first four bodies, then checking his results against the body of the last worker killed, who had died screaming in a straitjacket, Gettler discovered that TEL and its lead byproducts formed a recognizable distribution, concentrated in the lungs, the brain, and the bones. The highest levels were in the lungs suggesting that most of the poison had been inhaled; later tests showed that the types of masks used by Standard Oil did not filter out the lead in TEL vapors.
Rubber gloves did protect the hands but if TEL splattered onto unprotected skin, it absorbed alarmingly quickly. The result was intense poisoning with lead, a potent neurotoxin. The loony gas symptoms were, in fact, classic indicators of heavy lead toxicity.
After Norris released his office’s report on tetraethyl lead, New York City banned its sale, and the sale of “any preparation containing lead or other deleterious substances” as an additive to gasoline. So did New Jersey. So did the city of Philadelphia. It was a moment in which health officials in large urban areas were realizing that with increased use of automobiles, it was likely that residents would be increasingly exposed to dangerous lead residues and they moved quickly to protect them.
But fearing that such measures would spread, that they would be forced to find another anti-knock compound, as well as losing considerable money, the manufacturing companies demanded that the federal government take over the investigation and develop its own regulations. U.S. President Calvin Coolidge, a Republican and small-government conservative, moved rapidly in favor of the business interests.
The manufacturers agreed to suspend TEL production and distribution until a federal investigation was completed. In May 1925, the U.S. Surgeon General called a national tetraethyl lead conference, to be followed by the formation of an investigative task force to study the problem. That same year, Midgley published his first health analysis of TEL, which acknowledged a minor health risk at most, insisting that the use of lead compounds,”compared with other chemical industries it is neither grave nor inescapable.”
It was obvious in advance that he’d basically written the conclusion of the federal task force. That panel only included selected industry scientists like Midgely. It had no place for Alexander Gettler or Charles Norris or, in fact, anyone from any city where sales of the gas had been banned, or any agency involved in the producing that first critical analysis of tetraethyl lead.
In January 1926, the public health service released its report which concluded that there was “no danger” posed by adding TEL to gasoline…”no reason to prohibit the sale of leaded gasoline” as long as workers were well protected during the manufacturing process.
The task force did look briefly at risks associated with every day exposure by drivers, automobile attendants, gas station operators, and found that it was minimal. The researchers had indeed found lead residues in dusty corners of garages. In addition, all the drivers tested showed trace amounts of lead in their blood. But a low level of lead could be tolerated, the scientists announced. After all, none of the test subjects showed the extreme behaviors and breakdowns associated with places like the looney gas building. And the worker problem could be handled with some protective gear.
There was one cautionary note, though. The federal panel warned that exposure levels would probably rise as more people took to the roads. Perhaps, at a later point, the scientists suggested, the research should be taken up again. It was always possible that leaded gasoline might “constitute a menace to the general public after prolonged use or other conditions not foreseen at this time.”
But, of course, that would be another generation’s problem. In 1926, citing evidence from the TEL report, the federal government revoked all bans on production and sale of leaded gasoline. The reaction of industry was jubilant; one Standard Oil spokesman likened the compound to a “gift of God,” so great was its potential to improve automobile performance.
In New York City, at least, Charles Norris decided to prepare for the health and environmental problems to come. He suggested that the department scientists do a base-line measurement of lead levels in the dirt and debris blowing across city streets. People died, he pointed out to his staff; and everyone knew that heavy metals like lead tended to accumulate. The resulting comparison of street dirt in 1924 and 1934 found a 50 percent increase in lead levels – a warning, an indicator of damage to come, if anyone had been paying attention.
It was some fifty years later – in 1986 – that the United States formally banned lead as a gasoline additive. By that time, according to some estimates, so much lead had been deposited into soils, streets, building surfaces, that an estimated 68 million children would register toxic levels of lead absorption and some 5,000 American adults would die annually of lead-induced heart disease. As lead affects cognitive function, some neuroscientists also suggested that chronic lead exposure resulted in a measurable drop in IQ scores during the leaded gas era. And more recently, of course, researchers had suggested that TEL exposure and resulting nervous system damage may have contributed to violent crime rates in the 20th century.
Images: 1) Manhattan, 34th Street, 1931/NYC Municipal Archives 2) 1940s gas station, US Route 66, Illinois/Deborah Blum
NEW YORK (TheWrap.com) – Erik Jendresen, writer and executive producer of the upcoming Nat Geo film “Killing Lincoln,” says presidential assassin John Wilkes Booth could have been a modern-day “poster child for the Tea Party.”
Jendresen spoke about the film, which stars Billy Campbell as Lincoln, at the Television Critics Association winter press tour. The film is based on the book co-written by “O’Reilly Factor” host Bill O’Reilly, a noted supporter of many Tea Party ideals.
Jendresen stressed that Booth wasn’t a madman, but held views that were fairly common at the time of the assassination.
“This is not the act of somebody who can be easily dismissed as a psychopath so that it’s easy to understand: ‘Oh, well, he was crazy.’ No. It’s more disturbing to find out who Booth was,” Jendresen said. “This is a man who believed what still probably 20 percent of this country still believes. He could be a poster child for the Tea Party.”
Asked if he thought Bill O’Reilly would agree with that assessment, he passed.
“I can’t speak for Mr. O’Reilly,” he told TheWrap. “I think that if you look at the sort of politics of the time, and a lot of the epithets that were being hurled at Lincoln, there was a feeling in the nation that’s not dissimilar from what we’ve experienced in the past four years in response to Barack Obama – the sense of an imperial presidency or soundbytes about somebody who’s going to proclaim himself king and take over.”
“It’s stunning to me to read some of the newspaper articles and some of the interviews of the time, some of the contents of the letters and memoirs from the time and some of the things that were thought about Lincoln in the South are so similar to … the dialogue today,” he added.
Nat Geo was previously criticized by conservatives who felt that its film “Seal Team Six,” about the killing of Osama bin Laden, amounted to a campaign ad for President Obama.
Contacted through Fox News, O’Reilly did not immediately respond to a request for comment.
Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administration’s health care law was to stem the rapid rise in insurance costs for consumers.
Bob Chamberlin/Los Angeles Times
Dave Jones, the California insurance commissioner, said some insurance companies could raise rates as much as they did before the law was enacted.
Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.
In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.
In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.
The proposed increases compare with about 4 percent for families with employer-based policies.
Under the health care law, regulators are now required to review any request for a rate increase of 10 percent or more; the requests are posted on a federal Web site, healthcare.gov, along with regulators’ evaluations.
The review process not only reveals the sharp disparity in the rates themselves, it also demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.
New York, for example, recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. California can review rate requests for technical errors but cannot deny rate increases.
The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers. But the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.
Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.
“This is business as usual,” Mr. Jones said. “It’s a huge loophole in the Affordable Care Act,” he said.
While Mr. Jones has not yet weighed in on the insurers’ most recent requests, he is pushing for a state law that will give him that authority. Without legislative action, the state can only question the basis for the high rates, sometimes resulting in the insurer withdrawing or modifying the proposed rate increase.
The California insurers say they have no choice but to raise premiums if their underlying medical costs have increased. “We need these rates to even come reasonably close to covering the expenses of this population,” said Tom Epstein, a spokesman for Blue Shield of California. The insurer is requesting a range of increases, which average about 12 percent for 2013.
Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.
“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.
Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.
“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.
As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.
Michael Cronan, a San Francisco-based graphic designer and marketing executive who placed his stamp on popular culture when he created the brand names TiVo and Kindle, died on Tuesday in Berkeley, Calif. He was 61.
The cause was colon cancer, said his wife, Karin Hibma, with whom he founded the marketing firm Cronan in the early 1980s.
Mr. Cronan, who studied art in college, had many corporations and cultural institutions as clients, but he was most remembered for the pair of brand names he came up with a decade apart.
In the spring of 1997, he was asked to forge a name and an identity for a new device, a digital video recorder developed by a company called Teleworld that offered more sophisticated television recording choices than the videocassette recorder.
“We reviewed probably 1,600-plus name alternatives, seriously considered over 800 names and presented over 100 strong candidates to the team,” Mr. Cronan told Matt Haughey for his blog PVR (the letters stand for personal video recorder) in 2005.
“We spent the early meetings trying to place a cultural context on the product,” he said. Among the possibilities were Bongo and Lasso, which never got far.
Believing that “we were naming the next TV,” Mr. Cronan recalled, “I thought it should be as close as possible to what people would find familiar, so it must contain T and V.”
“I started looking at letter combinations,” he added, “and pretty quickly settled on TiVo.” (The “Vo” portion, he said, had a connection to the Latin and Italian words for vocal sound and voice.) Then came the search for a mascot that Mr. Cronan hoped “would become as recognizable as the mouse ears are to Disney.” He created a TV-shaped smiley character with the name TiVo inscribed on its face, rabbit ears suggesting an early TV set and large, splayed feet. Teleworld changed its name to TiVo Inc.
When Amazon prepared to introduce its first electronic reader in 2007, it turned to Mr. Cronan, who envisioned imagery reflecting the reading experience as an embryonic but rising technology.
Ms. Hibma said in an interview on Friday that in pondering a brand name, Mr. Cronan “wanted to create something small, humble, with no braggadocio,” while choosing an image that “was about starting something, giving birth to something.” He found the name, she said, by likening use of the new e-reader to “starting a fire.”
Michael Patrick Cronan was born on June 9, 1951, in San Francisco. He studied painting at the California College of Arts and Crafts (now California College of the Arts), where he later taught, and received a degree in art from California State University, Sacramento. He was a founder and past president of the San Francisco branch of AIGA, the professional association for design.
Mr. Cronan and his wife expanded their focus in 1992 to create the Walking Man clothing collection, featuring loose-knit tops and pants. Mr. Cronan also designed a pair of 1999 postage stamps, one commemorating the 50th anniversary of NATO and the other promoting prostate cancer awareness, and painted portraits and watercolors.
In addition to his wife, Mr. Cronan is survived by his sons, Shawn HibmaCronan and Nick Cronan; a brother, Christopher; a sister, Patricia Cronan; and a granddaughter.
For all his devotion to marketing and branding, Mr. Cronan felt that sometimes the demands of commerce went too far, as in the often-changing corporate names attached to sports stadiums and concert halls.
“There was a time in American life where going to a sporting event or a concert was sort of magical, because a lot of these places had these fun names,” he told The Denver Post in 2010. “But these days, with the amount of people craving advertising exposure, the sponsors have found a way to sell everything. They’re selling our nostalgia, and it’s sad.”
SACRAMENTO — Fear of embarrassment and budget cuts led high officials at the California parks department to conceal millions of dollars, according a new investigation by the state attorney general's office.
The money remained hidden for years until it was exposed by a new staff member who described a culture of secrecy and fear at the department.
The attorney general's report, released Friday, is the most detailed official account so far of the financial scandal at the parks department. The controversy broke last summer with the revelation that parks officials had a hidden surplus of nearly $54 million at a time when the administration was threatening to close dozens of the facilities.
Although much of the accounting issues appeared to stem from innocent mistakes and discrepancies, the report said, about $20 million had been deliberately stashed away.
The report said the problem seemed to begin with calculation errors more than a decade ago. But when those mistakes were discovered in 2002, officials made a "conscious and deliberate" decision not to reveal the existence of the extra money, the report said.
Parks officials concealed the funds partly because they were embarrassed, the report said. But they were also worried that their funding would be cut further if state number-crunchers knew they had a larger reserve, according to interviews conducted by a deputy attorney general.
Parks officials underreported the amount of money they had to the Department of Finance, preventing lawmakers from including the extra funds in state spending plans.
The money "was intended to be a safety net," said Manuel Lopez, a former deputy director at the department, who was interviewed in the probe. Lopez resigned in May while being investigated for a separate scheme allowing employees to be improperly paid for unused vacation days.
Multiple high-ranking officials were involved in concealing the parks money, including Lopez and Michael Harris, the chief deputy director who was fired after the scandal broke. Evidence suggests that the initial decision to keep the money secret was made by Tom Domich, an assistant deputy director who left the department in 2004, the report said.
Domich "unpersuasively denies … his role in the deception," according to the report. The Times was unable to reach Domich on Friday.
Staff members who pointed out financial problems were ignored by their bosses.
"Throughout this period of intentional non-disclosure, some parks employees consistently requested, without success, that their superiors address the issue," the report said.
It is unclear whether ousted director Ruth Coleman knew about the accounting problems, the report said. She declined to be interviewed for the investigation; participation was voluntary for former parks personnel.
Officials have not yet determined whether criminal charges will be filed. There's no evidence that any money was stolen or used improperly, the report said.
The accounting problems were eventually exposed by Aaron Robertson, who started an administrative job at the parks department in January 2012. He told a deputy attorney general that people felt uncomfortable raising concerns at the department.
"There was a great deal of distrust," he said. "People felt somewhat fearful of coming forward with information."
John Laird, the California natural resources secretary who oversees the parks department, said new policies and staff are in place to prevent similar problems in the future.
"It is now clear that this is a problem that could have been fixed by a simple correction years ago, instead of being unaddressed for so long that it turned into a significant blow to public trust in government," Laird said in a statement.
A new parks director, retired Marine Maj. Gen. Anthony Jackson, was appointed by Gov. Jerry Brown to replace Coleman in November. Robertson was promoted to become his deputy.
The attorney general's investigation is the third report on the parks department in the last month. One more report, from the state auditor, is due this month.
Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.
SPOILER WARNING: We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!
Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.
And now, without further ado, we give you…
TODAY’S PUZZLE:
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Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."
LOS ANGELES (Reuters) – Pop and rock music legends bested their younger chart-topping competition on the concert trail in 2012, according to data released on Friday by trade publication Pollstar.
Pop matriarch Madonna, 54, led all competition, grossing some $ 296.1 million in ticket sales in her 88-show world tour. She topped Bruce Springsteen and the E Street Band ($ 210.2 million) and Pink Floyd founder Roger Waters ($ 186.4 million).
The elder statesmen of the music world, while no longer topping the charts or scoring radio hits, are doing well because their older audiences can afford to pay higher ticket prices, Gary Bongiovanni, Pollstar editor, told Reuters.
“Certainly the older acts charge more because they can get away with it,” he said.
The Rolling Stones were able to command an eye-popping $ 529.51 average ticket price. Their five-show tour in November and December grossed $ 35.5 million, good enough for No. 33 on the list.
British rockers Coldplay were No. 4 on the list, taking in $ 171.3 million. Lady Gaga placed fifth grossing $ 161.4 million while at No. 6 Cirque Du Soleil‘s tribute to late King of Pop Michael Jackson grossed $ 140.2 million during a 172-show tour.
Teen sensation Justin Bieber, who played a 35-show tour, failed to crack the top 20, taking in $ 40.2 million, at No. 23.
Acts that cemented their reputations decades ago dominated the top-grossing tours even while playing fewer shows.
Country stars Kenny Chesney and Tim McGraw placed seventh grossing $ 96.5 million in 23 shows, while heavy metal pioneers Metallica were one spot lower at $ 86.1 million over 30 shows.
Some artists have been enticed to jack-up their own ticket prices after seeing how much more re-sellers were able to command, Bongiovanni explained.
“Now it’s a matter of how much money can I make,” he said. “Some artists like Springsteen are very popular but if you look at their average ticket price it’s nowhere near Roger Waters, Madonna and Lady Gaga.”
The average face-value ticket price for a Springsteen concert was $ 91.95, which was well below the $ 140.38 average for Madonna and $ 110.96 for Roger Waters.
Eight separate Cirque Du Soleil shows appeared in the top 50, which did not include the circus company’s non-traveling shows in Las Vegas and elsewhere. All told, the Canadian company may have earned close to $ 1 billion in gross ticket sales, Bongiovanni said.
Elton John ($ 69.9 million) and Red Hot Chili Peppers ($ 57.8 million) rounded out the top 10.
(Reporting by Eric Kelsey, editing by Jill Serjeant)
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BOSTON — New laws to strengthen state control of compounding pharmacies were proposed on Friday by Gov. Deval Patrick, in hopes of preventing another public health disaster like the current outbreak of meningitis caused by a contaminated drug made in Massachusetts.
The laws will be among the strongest in the country, said Kevin Outterson, a law professor at Boston University and a member of the expert panel that advised the state on how to curb abuses by companies like the New England Compounding Center, the Framingham pharmacy that made the tainted drug responsible for the nationwide meningitis outbreak.
The legislation would establish strict licensing requirements for compounding sterile drugs; let the state assess fines against pharmacies that break its rules; protect whistle-blowers who work in compounding pharmacies; and reorganize the state pharmacy board to include more members who are independent of the industry and fewer who are part of it.
Alec Loftus, a spokesman for the state’s Office of Health and Human Services, said that Mr. Patrick expected the new legislation to be passed quickly.
Daniel Carpenter, a professor of government at Harvard, said the proposed laws seemed sound and comprehensive. But he warned that if other states did not take similar steps, compounding pharmacies engaging in shoddy practices would just move to places with the weakest laws and the least oversight.
“The remaining question is not what Massachusetts is doing or will do, but will there be a minimum level of regulation like this in the rest of the states?” Professor Carpenter said.
The meningitis outbreak, first detected in September, was caused by contaminated batches of a steroid, methylprednisolone acetate, made by the New England Compounding Center. The drug was injected into about 14,000 people’s spinal area to treat back and neck pain.
As of Dec. 28, 656 people in 19 states had become ill with meningitis or other infections, like severe internal abscesses in the area where the drug was injected. Some have had both meningitis and spinal infections. The case count is expected to keep rising. Thirty-nine have died.
The New England Compounding Center was shut down, and inspections found extensive contamination. Investigations uncovered a long history of questionable practices that had drawn warnings from the state and the Food and Drug Administration.
On Dec. 21, the company announced that it had filed for bankruptcy. Numerous lawsuits have been filed against it.
At the heart of the problem have been gaps in regulation that have allowed such companies to avoid both state and federal controls. The company called itself a pharmacy, and pharmacies are generally regulated by states, while large drug companies are regulated federally, by the Food and Drug Administration.
Compounding pharmacies mix their own drug preparations, like skin creams and cough syrups, supposedly for individual patients with special needs. But the New England Compounding Center began to act like a manufacturer, making and shipping large amounts of injectable drugs, for which sterility is essential. No state law required it to obtain a license for this type of large-scale compounding, to follow good manufacturing processes or to let the state know it was shipping all over the country.
Dr. Lauren Smith, interim commissioner of the Massachusetts Department of Public Health, said the company “was a manufacturer in pharmacy clothing.”
Governor Patrick said, “The tragic meningitis outbreak has shown us all that the board’s governing authority has not kept up with an industry that has evolved from corner drugstores to the types of large manufacturers that have been at the center of so much harm.”
Dr. Smith said she thought the most important part of the new legislation was the requirement of a license for sterile compounding. “Now we are going to have the ability to develop specialty licenses that will allow us to track and identify those pharmacies that are engaged in different practices that could potentially put higher numbers of individuals at risk, such as those who engage in sterile compounding,” she said.
Professor Carpenter said a particularly powerful part of the proposal is that it requires licensure for out-of-state pharmacies that ship medication to Massachusetts. The state, he said, is a huge market for injectable drugs.
“Basically, if you think about the large hospitals, the amount of medical care that goes on in the state, it’s in a sense using the purchasing power of the state of Massachusetts to induce changes elsewhere,” he said.
The state has also taken other steps recently to rein in compounding, apart from the new legislation. It began conducting surprise inspections, and has required compounding pharmacies to report how much medication they are shipping and where, so that it can keep tabs on those that begin acting like manufacturers. It also requires the pharmacies to report when they become subjects of regulatory actions by other states or the federal government.
Abby Goodnough reported from Boston, and Denise Grady from New York.
Reports on Friday on the nation’s job market, factory activity and the service sector painted a picture of a national economy that was growing late last year. This was despite the concern that the economy might be tipped back into recession by a federal budget dispute that was settled on Tuesday.
Barton Silverman/The New York Times
More than 90 percent of jobs created since January were in the service sector, like restaurants.
Employers added 155,000 jobs in December, approximately matching the solid but unspectacular monthly rate of the last two years.
Companies increased their orders in November for manufactured goods, reflecting investment plans, even though total orders were unchanged for the month, the Commerce Department said in a second report.
Back-to-back increases in core capital goods followed a period of weakness that raised concerns about business investment, which has been a driving force in the economic rebound.
Analysts say they think that companies will increase spending on computers and other equipment to expand and modernize now that Congress and President Obama have reached a deal on taxes, removing uncertainty that had been weighing on business investment.
In a third report, a gauge of service companies’ activity expanded in December by the most in nearly a year, driven by an increase in new orders and hiring, a trade group said.
The industry group, the Institute for Supply Management, said its index of nonmanufacturing activity rose to 56.1 in December from 54.7 in November. It was the highest level since February and above the 12-month average of 54.7. Any reading above 50 indicates expansion.
Companies had a “year-end surge” in orders, in the words of one executive surveyed by the institute.
Services have been a crucial source of job growth, creating about 90 percent of the net jobs added since January. For all of 2012, the economy added 1.69 million service jobs, about the same as in 2011. Many of the new jobs are in low-paying retail and restaurant industries. The increase conflicted with a Labor Department report Friday that said the economy added just 109,000 service jobs last month, the fewest since June. One important difference between the two reports is the inclusion of construction jobs in the institute’s index. The government index excludes that category, which would have raised the December total by 30,000.
The institute’s report measures service growth in industries that cover 90 percent of the work force, including retail, construction, health care and financial services.
