Hunter voted out as head of NBA players' union

HOUSTON (AP) — Billy Hunter was ousted unanimously as executive director of the union by NBA players who said Saturday they will "no longer be divided, misled, misinformed."

"This is our union and we have taken it back," players' association president Derek Fisher said.

Fisher said it was a day of change for the union, which has seemed inevitable since a review of the union last month was critical of Hunter's leadership and urged players to consider whether they wanted to keep him.

They didn't.

"We want to make it clear that we are here to serve only the best interests of the players," Fisher said. "No threats, no lies, no distractions will stop us from serving our memberships."

In brief remarks, Fisher said a new executive committee was elected and he will remain as president. The Spurs' Matt Bonner is vice president, Miami's James Jones is secretary-treasurer and the Nets' Jerry Stackhouse the first vice president. The Clippers' Chris Paul, Golden State's Stephen Curry, Denver's Andre Iguodala, the Hornets' Roger Mason, Jr. and the Clippers' Willie Green are vice presidents.

Hunter had led the union since 1996, guiding the players through three collective bargaining agreements and helping bring their average salaries to more than $5 million, highest in team sports. But Fisher pushed for the review after a falling out between the two leaders, and though it found Hunter wasn't guilty of any criminal activity involving union funds, it cited him for a number of conflicts of interests and poor choices that led the players to remove him.

Released in January, the review conducted by the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP criticized Hunter for hiring family members and friends. It said he knew his 2010 contract extension wasn't properly ratified by union rules, and raised questions about everything from travel expenses to the amount he spent on gifts.

Players acted quickly, putting Hunter on a leave of absence on Feb. 1. He hoped to be invited to Saturday's annual meeting, which included about 35 players, superstar LeBron James among them.

But Hunter's attorneys said their client was told he wouldn't be welcomed. They said his contract was legal and indicated there could be a lawsuit if the players removed him and attempted to withhold the more than $10 million that remains on his salary.

"We do not doubt that this process will possibly continue in an ugly way," said Fisher, who then reminded reporters that there are three ongoing government investigations into Hunter, likely the reason he didn't take questions after his remarks.

It's a swift fall for the 70-year-old Hunter, a former athlete who was well-respected by many players. But agents didn't like him, questioning his bargaining strategies and frustrated they didn't have a bigger role in his union.

Hunter's family did, and that was another central issue of the report. He had since fired his daughter and daughter-in-law, and cut ties with a financial institution that employed his son. He also instituted an anti-nepotism policy at the NPBA.

Fisher, Paul, Bonner, Mason and Jones were holdovers from the previous executive committee. Stackhouse, who along with James was vocal during the meeting, joins Iguodala, Curry and Green among the newcomers.

Fisher and Hunter clashed during the 2011 lockout and their fractured relationship divided the union. Hunter originally persuaded the executive committee to vote to request Fisher's resignation last year. Fisher did not resign and instead pushed for the outside review, which lasted more than eight months and cost the union more than $4 million.

The law firm reviewed NBPA documents and emails, and interviewed more than three dozen witnesses. It found that Hunter spent more than $100,000 on gifts for executive committee members — including a watch worth more than $20,000 for Fisher before their falling out — and accepted a payout of $1.3 million for unused vacation time when records made it unclear how his time off was kept.

Fisher remains president even though he isn't on an NBA roster, having asked the Dallas Mavericks for his release after a brief stint earlier this season. He gave no update on what would happen to the executive director position. Union attorney Ron Klempner was appointed to the position on an interim basis when Hunter was placed on leave.

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UN warns risk of hepatitis E in S. Sudan grows

GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.

U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.

Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.

He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.

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TV show with Pistorius' dead girlfriend airs

JOHANNESBURG (AP) — Reeva Steenkamp's last wish for her family before she was shot dead at boyfriend Oscar Pistorius' home was for them to watch her in a reality TV show that went on air in South Africa on Saturday night, two days after her killing.

Sharon Steenkamp, Reeva's cousin, told The Associated Press that the model and law graduate was "proud of being in the show" and reminded them in their last conversation to make sure that they watched it.

The South African Broadcasting Corp. aired the "Tropika Island of Treasure" program, showing the late Steenkamp — the victim of a Valentine's Day shooting at the home of Pistorius, the Olympic star and double-amputee athlete. She is laughing and smiling, and blowing a kiss toward the camera in Jamaica when it was filmed last year.

South Africans also saw her swimming in the ocean and watching people jump off a cliff and into the sea, shaking her head as they leaped.

SABC said it was dedicated to Steenkamp and displayed the words "Reeva Steenkamp 19 August 1983 - 14 February 2013" between images of a rose and a candle in a short tribute before the show aired. She was also seen blowing the kiss as she sat on a Jamaican beach and her name again appeared on screen with the years of her birth and death.

The country was rocked Thursday when news broke of Steenkamp's shooting death at the upscale house of the star athlete. Pistorius was arrested and charged with her murder and remains in custody in a police station. His family has strongly denied prosecutors' claims that he murdered her.

Steenkamp's family said earlier Saturday that it had not been contacted by either the SABC — South Africa's national broadcaster — or the show's producers for permission to air it, but were not opposed to it because Reeva wanted everyone to see it.

"Her last words to us personally were that she wants us to watch it," Sharon Steenkamp said, hours before the program was shown.

SABC aired the reality show on its main channel, which prominently featured Steenkamp.

The show's executive producer, Samantha Moon, said going ahead with the show "is what she would have wanted."

Steenkamp, a 29-year-old blonde model who graduated from law school, died after suffering four gunshot wounds, police said. Officers recovered a 9-mm pistol from Pistorius' house and quickly charged the Olympian with murder for Steenkamp's killing.

Pistorius will appear in court Tuesday for a bail hearing, something police have said they oppose. Prosecutors also say they will pursue upgraded charges of premeditated murder against him, which means the disabled icon and double-amputee runner could face a life sentence.

Steenkamp was known in South Africa for appearing in commercials and as a bikini-clad model in men's magazines.

Pistorius and Steenkamp met Nov. 4 at the Kyalami race track, which sits between Pretoria and Johannesburg and has been used for Grand Prix and Formula 1 races, said Justin Divaris, a mutual friend.

Divaris said his own girlfriend was a close friend to Steenkamp. Pistorius and Steenkamp immediately hit it off and decided in the spur of the moment to attend a sports award ceremony together the same night, Divaris said. At the time, Pistorius had been dating another woman and his personal life was constant fodder for gossip pages.

Later, however, problems may have started, as police have said there were previous domestic altercations at Pretorius' home in a gated community near South Africa's capital, Pretoria.

A Steenkamp family spokesman said late Friday that relatives still faced a long struggle to come to terms with her killing.

"I can't see the family getting over this shortly," said Reeva's uncle, Mike Steenkamp. "It's going to be a long, long-term reconciliation with a lot of things and issues."

Family members plan for a memorial service Tuesday for the model in Port Elizabeth, her hometown on South Africa's southern coast. Pistorius has a court appearance scheduled in Pretoria on the same day for his lawyers to argue that he can be released on bail.

Portions released earlier Saturday of the reality show, sponsored by a milk fruit drink, feature Steenkamp laughing and smiling on the beaches of Jamaica. Another portion shows her swimming with two dolphins, which tap her on the cheek with their snouts.

"I think the way that you go out, not just your journey in life, but the way that you go out and the way you make your exit is so important," Steenkamp says in the video. "You either made an impact in a positive or a negative way, but just maintain integrity and maintain class and just remain true to yourself.

"I'm going to miss you all so much and I love you very, very much."

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Associated Press writer Jon Gambrell contributed to this report.

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Gerald Imray can be reached at http://twitter.com/GeraldImrayAP

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Daley turns focus toward Gary

Richard M. Daley has kept a low profile since leaving office in 2011.

That doesn't mean he has lost interest in urban issues. The former mayor has turned his attention in a surprising direction, beyond Chicago's borders to one of the most intractable urban tragedies in America: the collapse of Gary, Ind.

"I always believe no part of America should be forgotten, and I think Gary has been forgotten," Daley said.

Daley is using his influence at the University of Chicago, where he is a distinguished senior fellow, to push a modest but growing amount of manpower toward Gary Mayor Karen Freeman-Wilson.

With guidance from Daley and Freeman-Wilson, University of Chicago graduate students are trying to figure out what to do with Gary's abandoned buildings and how to promote greater use of technology to help the city accomplish more with less, among other projects.

The hope is that the students will go on to help other cities after graduation. If successful, the U. of C.-Gary partnership could be replicated in other industrial towns grappling with decline.

Gary spans about 55 square miles, nearly a quarter of the size of Chicago. Yet the steel town's population has plummeted to an estimated 80,000, meaning the city has lost about half its people since 1960. The city's problems have mounted, including abandoned buildings and homes, sagging infrastructure and a declining budget to pay for services.

Outsiders have tried to fix Gary since at least the Lyndon B. Johnson administration. Freeman-Wilson, a former Indiana attorney general, judge and Harvard College and Harvard Law School graduate, has reinvigorated Gary's renewal efforts. And she's unafraid to ask for help.

Immediately after winning the 2011 Democratic primary, Freeman-Wilson called Daley for advice. They met, and Daley invited her to be the first guest speaker at his lecture series at the University of Chicago's Harris School of Public Policy, where Daley has a five-year appointment.

This quarter, 11 students from the university's public policy, business and social services schools are getting course credit for working on projects for Gary.

"It was Mayor Daley's idea," Freeman-Wilson said as she rode from a meeting on Chicago's West Side to Gary. "I had always envisioned getting the support and work from (University of Chicago Law School) alums, because there were issues around codes and things of that nature. It was not until the mayor came up with the idea of using students from the (Harris) School of Public Policy that I said, 'Oh yeah, that would work. That would work very well.'"

Daley does not teach a class at the University of Chicago. He runs an occasional lecture series.

Carol Brown, his last policy chief at City Hall, leads the program and the class, which is called the "Urban Revitalization Project: City of Gary, Ind." Grants from the Chicago-based Joyce and MacArthur foundations help pay administrative costs, including Brown's salary and that of a part-time assistant.

Last quarter's class was divided into three project teams. One team is cataloging Gary's abandoned buildings, which are magnets for crime and eyesores that further depress surrounding property values. Another is trying to recruit pro bono legal and consulting services for the city. And a third is trying to craft a strategy to clean up front stoops and empty lots one block at a time. This quarter's class also is tackling untapped funding opportunities and economic development.

Freeman-Wilson said a major benefit of the partnership is the fresh ideas from students "who aren't jaded by the limitations of government, whereas a 20-year employee might say, 'Oh, no, we can't do that in government because we don't have X, Y and Z.'"

Already their work has prompted more widespread use among Gary employees of a technology that stores and analyzes geographic data. City workers are now using the technology to map potholes, fallen tree limbs and illegal dump sites. That way work crews can be dispatched to neighborhoods where the problems are most severe.

"This partnership encourages urban planners to think broadly about regions instead of cities — greater Chicago instead of the city of Chicago," said Stephen Paul O'Hara, a historian at Xavier University who wrote a book about Gary.

The students operate as consultants. They gather best practices and ideas from cities around the country and then recommend a course of action. At the end of each 10-week quarter, students present their recommendations to Daley, Freeman-Wilson and their staffs. Their grades are based on those presentations and supporting reports.

"I will tell you, it never stops getting nerve-wracking," second-year graduate student Jocelyn Hare said of presenting to Daley. "But it gets easier."

Last spring, Hare, 32, responded to an email seeking student volunteers to conduct preliminary research to test the idea of a partnership. Hare then interned for the city of Gary during the summer. The Harris school paid her $15 an hour. She then enrolled in the first class in the fall and again this winter, when it was opened to graduate students outside of Harris for the first time.

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Lawyers: Jackson Jr., wife intend to plead guilty to charges

Jesse Jackson Jr. and his wife Sandi intend to plead guilty to federal charges alleging the former congressman misused $750,000 in campaign funds while she understated their income on  tax returns for six years, their lawyers say.

Jackson Jr., 47, a Democrat from Chicago, was charged in a criminal information today with one count of conspiracy to commit wire fraud, mail fraud and false statements. He faces up to five years in prison, a fine of up to $250,000 and other penalties.

Sandi Jackson was charged with one count of filing false tax returns. She faces up to three years in prison, a fine of up to $250,000 and other penalties.

Jackson Jr. is accused of diverting $750,000 in campaign funds for personal use.

Federal authorities allege that Jackson Jr. used campaign funds to purchase a $43,350 men’s gold-plated Rolex watch, $5,150 worth of fur capes and parkas, and $9,588 in children’s furniture. The purchases were made between 2007 and 2009, according to the criminal information, which authorities noted is not evidence of guilt.

Other expenditures listed by prosecutors include $10,105 on Bruce Lee memorabilia, $11,130 on Martin Luther King memorabilia and $22,700 on Michael Jackson items, including $4,600 for a "Michael Jackson fedora."

The government also alleged that Jackson Jr. made false statements to the House of Representatives because he did not report approximately $28,500 in loans and gifts he received.

"He has accepted responsibility for his actions and I can confirm that he intends to plead guilty to the charge in the information," Jackson Jr.'s attorney Brian Heberlig said.

Sandi Jackson is accused of filing incorrect joint tax returns with her husband for calendar years 2006 through 2011, reporting income “substantially less than the amount of income she and her husband received in each of the calendar years,” with a substantial additional tax due.

Her attorneys released a statement saying she has "reached an agreement with the U.S. attorney’s office to plead guilty to one count of tax fraud."

Jackson Jr. stepped down from the House of Representatives on Nov. 21, citing both his poor health and an ongoing federal probe of his activities. In a statement then, he said he was doing his best to cooperate with federal investigators and to accept responsibility for his “mistakes.”

In a statement today, Jackson Jr. said:

“Over the course of my life I have come to realize that none of us are immune from our share of shortcomings and human frailties. Still I offer no excuses for my conduct and I fully accept my responsibility for the improper decisions and mistakes I have made. To that end I want to offer my sincerest apologies to my family, my friends and all of my supporters for my errors in judgment and while my journey is not yet complete, it is my hope that I am remembered for the things that I did right.”

Sandi Jackson's attorneys released a statement saying she "has accepted responsibility for her conduct, is deeply sorry for her actions, and looks forward to putting this matter behind her and her family. She is thankful for the support of her family and friends during this very difficult time."

Jackson's father, the Rev.  Jesse Jackson Sr., said he wanted to attend President Barack Obama's speech Friday at Hyde Park Academy in Chicago but traveled to Washington, D.C., instead, to be with family members while they waited for the federal charges to come down.
 
"This has been a difficult and painful ordeal for our family," the civil rights leader said.
 
The Rev. Jesse Jackson said he would "leave it up to the courts system" to determine his son's fate.

"We express our love for him as a family," he said.

Jackson Jr.’s political fortunes sank beginning late in 2008, when he sought unsuccessfully to have Gov. Rod Blagojevich appoint him to the Senate seat that came open with the election of then-Sen. Barack Obama to the White House.

Jackson Jr. or an emissary reportedly offered to raise up to $6 million in campaign cash for Blagojevich, who now is in federal prison for crimes including trying to sell the Senate seat. Jackson Jr. was never charged in the case, which became the subject of an ethics probe in the House.

Last June, Jackson Jr. began a mysterious leave of absence for what originally was called “exhaustion” but later emerged as bipolar disorder. He spent months in treatment and won re-election Nov. 6 despite never returning to service in the House or staging a single campaign appearance.

A campaign to replace him is being conducted now in the 2nd Congressional District, which includes parts of the South Side and south suburbs.

Jackson Jr. was first elected to Congress in 1995. Sandi Jackson was a Chicago alderman until she resigned her post last month. They have two children.

Sandi Jackson’s firm, J. Donatella & Associates, has been paid at least $452,500 from her husband’s campaign committee since 2002, Federal Election Commission reports show.

The former congressman’s campaign committee reported $105,703 in cash on hand on last Nov. 26, FEC reports show. Leading up to the last election, it reported $1 million in contributions and $1.06 million in operating expenditures, reports show.

Once considered a potential candidate for mayor of Chicago, Jesse Jackson Jr.’s reputation has taken a hit in recent years because of the Blagojevich scandal and also because of news reports in 2010 that a suburban Chicago businessman told federal investigators he twice paid to fly a woman — a hostess from a Washington, D.C. bar — to Chicago at Jackson’s request.

In the wake of the reports, Jackson Jr. issued a statement calling the woman a “social acquaintance” and describing the matter as a  “private and personal matter between me and my wife that was handled some time ago.”

Jackson Jr. subsequently told the Tribune editorial board he had apologized to "my absolute best friend, my wife."

Still, he also acknowledged he asked longtime supporter Raghuveer Nayak to pay to fly the woman from Washington to Chicago. House ethics rules prohibit members from soliciting gifts of personal benefit. Jackson said Nayak’s purchase was "a friendly gesture" by "a close and dear friend of mine, one who knows members of my family, has worked with members of my family, has been a friend of our family's for a number of years."

The woman's travel was "not a personal benefit to me, I don’t believe, under the House rules. A benefit to the person for whom he bought the ticket. He didn't buy tickets for me. Did I direct him? I did."

Tribune reporters Kim Geiger, Rick Pearson and Patrick Svitek contributed.

kskiba@tribune.com

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Facebook says target of sophisticated hacking attack

(Reuters) - Facebook Inc said on Friday that it been the target of a series of attacks by an unidentified hacker group, but it had found no evidence that user data was compromised.

"Last month, Facebook security discovered that our systems had been targeted in a sophisticated attack," the company said in a blog post posted on Friday afternoon, just before the three-day Presidents Day weekend. "The attack occurred when a handful of employees visited a mobile developer website that was compromised."

The social network, which says it has more than one billion active users worldwide, also said: "Facebook was not alone in this attack. It is clear that others were attacked and infiltrated recently as well."

Facebook's announcement follows recent cyber attacks on other prominent websites. Twitter, the microblogging social network, said earlier this month that it had been hacked, and that approximately 250,000 user accounts were potentially compromised, with attackers gaining access to information including user names and email addresses.

Newspaper websites, including those of The New York Times, The Washington Post and The Wall Street Journal, have said they have also been infiltrated. Those attacks were attributed by the news organizations to Chinese hackers targeting their coverage of China.

While Facebook said that no user data was compromised, the incident could raise consumer concerns about privacy and the vulnerability of personal information stored within the social network.

Facebook has experienced several privacy missteps over the years for the way it handles user data, and settled a privacy investigation with federal regulators in 2011.

Facebook said it spotted a suspicious file and traced it back to an employee's laptop. After conducting a forensic examination of the laptop, Facebook said it identified a malicious file, then searched company-wide and identified "several other compromised employee laptops."

The company also said it identified a previously unseen exploit to bypass its built-in cyberdefenses, and that new protections were added on February 1.

(Reporting by Tim Reid; editing by Gary Hill, G Crosse)

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Different looks for Heat, Lakers at All-Star break

HOUSTON (AP) — If Kobe Bryant's season seems tough, imagine what Dwyane Wade went through five years ago.

"I came to All-Star weekend one year, I think we had won nine games. Seriously," Wade said Friday. "I was looking for my 10th win at the All-Star game."

Things sure have changed for his Miami Heat.

Back where they first teamed up as All-Stars in 2006, Wade, LeBron James and Chris Bosh return as NBA champions who will start together for the Eastern Conference on Sunday night.

Now the misery belongs to Bryant, Dwight Howard and the Los Angeles Lakers, whose season has been so disappointing that Bryant was asked Friday if the All-Star weekend was a "retreat" for him.

"I don't know if it's a retreat, it's just more of an opportunity to get some rest, regroup, put the first half of the season behind us and move on," he said.

As Wade knows, the All-Star break can be just that — a break — from a forgettable season.

He arrived for the 2008 All-Star game with a 9-43 record after the Heat lost on Valentine's Day to the Chicago Bulls, on their way to a 15-win debacle just two years after they won the NBA title.

"I put all that aside though, and I came and I enjoyed the weekend, and when I went back to Miami, it was like, 'Oh my God, we're back in it,'" Wade said. "But All-Star weekend, you just enjoy being an All-Star. You enjoy being around the guys. You can kind of forget about that a little bit, unless you have the cameras and the microphones in front of you asking you questions about it, but besides that you try to enjoy it."

This time, the Heat celebrated Valentine's Day in Oklahoma City with a 110-100 victory over the Thunder, the team they beat in five games last summer for the title. They have won seven in a row, James is playing arguably the best basketball of his career, and they can relax and reminisce as they return to Houston.

"It's really indescribable," Bosh said, "just to not only win a championship with great guys, be in a great locker room, and just to have fun doing it, but just to be an All-Star every year, play with great teammates, I mean to play in front of a lot people in arenas every night. I don't take those things for granted."

James, Wade and Bosh were in their third NBA seasons when they were chosen for the 2006 game, which turned out like so many Heat games these days. James was voted MVP after scoring 29 points and leading a huge East comeback that was wrapped up when Wade made the go-ahead basket with 16 seconds left.

Think about that: James was already the best player that night, and he was nowhere near the player he is today.

"I'm a better player. At that point in time, I wasn't a complete basketball player. I couldn't shoot as well as I can now, I never posted up back then," James said. "More games, more playoff games, more knowledge. You continue to learn each and every day, it makes you a better player. That's what you want, to become a better player. That's what I want. I want to be the greatest of all-time. I try to do whatever it takes to get me in that position.

"Seven years, I've tried to improve each and every year."

He's gotten to the point now where he ran off an NBA-record six straight games with at least 30 points and 60 percent shooting from the field, and seems to be distancing himself from anyone else that can take the MVP award he won last year for the third time in four years.

"He's doing well," Bosh said in a Texas-sized understatement. "That's the best way to put it."

Bosh was chosen as a starter Friday by Heat coach Erik Spoelstra, who will lead the East. He replaces Boston guard Rajon Rondo, who pulled out with a torn ACL.

Bryant and Howard are still here, away from a Los Angeles season that's been anything but a Hollywood story.

Considered a title contender after acquiring Howard and Steve Nash in the summer, the Lakers fell to 25-29 after they were blown out Wednesday by the rival Clippers, who opened a 13-game lead over them in the Pacific Division standings.

Smiling as he sat with his daughter, Natalia, Bryant laughed that he wished the All-Star break was a chance for the Lakers to "hit the reset button" on what he's said has been a most difficult season.

"Hopefully there's an easy button like in the commercial when we come back in the second half of the season and things are a little easier for us," he said.

Howard has battled injuries to his back and shoulder and has been nothing like the player who has been the NBA's dominant big man in recent years. He said at times he hasn't been having fun and has tried to ignore all the bad news around the team.

"You just try to stay away from the tube and do as much as I can to rehab my back and my shoulder and my mind, and really just get away from everything when I'm not playing basketball," he said.

If he's looking for a chance to enjoy himself this season, it may get no better than the next few days.

"It's a great weekend, it's an unbelievable weekend for the fans to be able to put all their favorite players together in one venue," James said. "We have a great time with it."

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Follow Brian Mahoney on Twitter: http://www.twitter.com/Briancmahoney

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States' choices set up national health experiment

WASHINGTON (AP) — President Barack Obama's health care overhaul is unfolding as a national experiment with American consumers as the guinea pigs: Who will do a better job getting uninsured people covered, the states or the feds?

The nation is about evenly split between states that decided by Friday's deadline they want a say in running new insurance markets and states that are defaulting to federal control because they don't want to participate in "Obamacare." That choice was left to state governments under the law: Establish the market or Washington will.

With some exceptions, states led by Democrats opted to set up their own markets, called exchanges, and Republican-led states declined.

Only months from the official launch, exchanges are supposed to make the mind-boggling task of buying health insurance more like shopping on Amazon.com or Travelocity. Millions of people who don't have employer coverage will flock to the new markets. Middle-class consumers will be able to buy private insurance, with government help to pay the premiums in most cases. Low-income people will be steered to safety net programs like Medicaid.

"It's an experiment between the feds and the states, and among the states themselves," said Robert Krughoff, president of Consumers' Checkbook, a nonprofit ratings group that has devised an online tool used by many federal workers to pick their health plans. Krughoff is skeptical that either the feds or the states have solved the technological challenge of making the purchase of health insurance as easy as selecting a travel-and-hotel package.

Whether or not the bugs get worked out, consumers will be able to start signing up Oct. 1 for coverage that takes effect Jan. 1. That's also when two other major provisions of the law kick in: the mandate that almost all Americans carry health insurance, and the rule that says insurers can no longer turn away people in poor health.

Barring last-minute switches that may not be revealed until next week, 23 states plus Washington, D.C., have opted to run their own markets or partner with the Obama administration to do so.

Twenty-six states are defaulting to the feds. But in several of those, Republican governors are trying to carve out some kind of role by negotiating with federal Health and Human Services Secretary Kathleen Sebelius. Utah's status is unclear. It received initial federal approval to run its own market, but appears to be reconsidering.

"It's healthy for the states to have various choices," said Ben Nelson, CEO of the National Association of Insurance Commissioners. "And there's no barrier to taking somebody else's ideas and making them work in your situation." A former U.S. senator from Nebraska, Nelson was one of several conservative Democrats who provided crucial votes to pass the overhaul.

States setting up their own exchanges are already taking different paths. Some will operate their markets much like major employers run their health plans, as "active purchasers" offering a limited choice of insurance carriers to drive better bargains. Others will open their markets to all insurers that meet basic standards, and let consumers decide.

Obama's Affordable Care Act remains politically divisive, but state insurance exchanges enjoy broad public support. Setting up a new market was central to former Republican presidential candidate Mitt Romney's health care overhaul as governor of Massachusetts. There, it's known as the Health Connector.

A recent AP poll found that Americans prefer to have states run the new markets by 63 percent to 32 percent. Among conservatives the margin was nearly 4-1 in favor of state control. But with some exceptions, including Idaho, Nevada and New Mexico, Republican-led states are maintaining a hands-off posture, meaning the federal government will step in.

"There is a sense of irony that it's the more conservative states" yielding to federal control, said Sandy Praeger, the Republican insurance commissioner in Kansas, a state declining to run its own exchange. First, she said, the law's opponents "put their money on the Supreme Court, then on the election. Now that it's a reality, we may see some movement."

They're not budging in Austin. "Texas is not interested in being a subcontractor to Obamacare," said Lucy Nashed, spokeswoman for Gov. Rick Perry, who remains opposed to mandates in the law.

In Kansas, Praeger supported a state-run exchange, but lost the political struggle to Gov. Sam Brownback. She says Kansans will be closely watching what happens in neighboring Colorado, where the state will run the market. She doubts that consumers in her state would relish dealing with a call center on the other side of the country. The federal exchange may have some local window-dressing but it's expected to function as a national program.

Christine Ferguson, director of the Rhode Island Health Benefits Exchange, says she expects to see a big shift to state control in the next few years. "Many of the states have just run out of time for a variety of reasons," said Ferguson. "I'd be surprised if in the longer run every state didn't want to have its own approach."

In some ways, the federal government has a head start on the states. It already operates the Medicare Plan Finder for health insurance and prescription plans that serve seniors, and the Federal Employees Health Benefits Program. Both have many of the features of the new insurance markets.

Administration officials are keeping mum about what the new federal exchange will look like, except that it will open on time and people in all 50 states will have the coverage they're entitled to by law.

Joel Ario, who oversaw planning for the health exchanges in the Obama administration, says "there's a rich dialogue going on" as to what the online shopping experience should look like. "To create a website like Amazon is a very complicated exercise," said Ario, now a consultant with Manatt Health Solutions.

He thinks consumers should be able to get one dollar figure for each plan that totals up all their expected costs for the year, including premiums, deductibles and copayments. Otherwise, scrolling through pages of insurance jargon online will be a sure turn-off.

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Judge sets May trial date for Kardashian divorce

LOS ANGELES (AP) — Kim Kardashian has a due date for her baby and now a trial date for her divorce from NBA player Kris Humphries.

A judge on Friday set a May 6 trial for the reality TV star who wants to end her marriage before July, when her child with Kanye West is due.

Kardashian filed for divorce on Oct. 31, 2011, after she and Humphries had been married just 72 days. Their lavish, star-studded nuptials were recorded and broadcast by E! Entertainment Television.

The trial is expected to last three to five days and could reveal details about Kardashian's reality show empire, which includes "Keeping Up With the Kardashians" and several spinoffs.

Two judges determined Friday that Humphries' lawyers had adequate time to prepare for the trial.

Humphries wants the marriage annulled based on his claim that Kardashian only married him for the sake of her show.

She denies that allegation and says the case should be resolved through what would be her second divorce.

Humphries' attorney Marshall Waller asked for a delay until basketball season is over.

But Superior Court Judge Scott Gordon refused, saying firefighters, police officers, truck drivers and others have to miss work for trials, and Humphries must do the same if necessary.

Waller filed paperwork Thursday to withdraw from the case but didn't mention that development in court and refused to answer any questions about the document on Friday.

Waller said he was still hoping to obtain and review 13,000 hours of footage from Kardashian's reality shows to try to prove the fraud claim but noted he does not yet have an agreement to receive the footage.

Kardashian's lawyer said her client was ready for trial.

"Let's get this case dispensed with," attorney Laura Wasser said.

Humphries has provided a deposition in the case, as have West and Kardashian family matriarch Kris Jenner.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Billionaire Sears CEO reveals lower Gap stake

Sears CEO Edward Lampert has upped his stake in Gap Inc. (Spencer Platt / Getty Images)

By Corilyn Shropshire




Tribune reporter

5:20 p.m. CST, February 15, 2013

Sears Chairman and CEO Edward Lampert has reduced his stake in The Gap Inc., according to security filings.

Lampert shed roughly 4 percent of his shares in the San Francisco-based retailer by Dec. 31, 2012, according to documents filed Thursday with the Securities and Exchange Commission.  He currently holds 25.3 million shares, personally and through his investment groups, ESL Partners, RBS Partners, LP and ESL Investments.

In 2012, Lampert reported that he held a 9.3 percent stake or 45.2 million shares.

Lampert is the billionaire hedge fund manager who engineered the merger of Sears and Kmart in 2005.  Since then, Sears has struggled to maintain its place with years of declining sales and executive changeover.  The company has focused on building loyalty rewards program and online business which officials said grew by 20 percent last year. 

Shares of The Gap, which also operates brands Banana Republic, Old Navy, Piperlime and Athleta closed up nearly 5 percent at $32.87 on Friday, in part due to news about Lampert’s boosted interested in the retailer and on speculation that Uniqlo-owner and Japan-based Fast Retailing, Ltd.  is also interested in the retailer.

The Gap has been on an upswing beating analysts estimates with holiday and January sales.  The retailer said sales in stores open at least were up 8 percent to $1.13 billion in January. 

Lampert, who has several retail holdings including Columbus, Oh-based Big Lots Inc., also decreased his interest Fort Lauderdale-based AutoNation, Inc. by about $13.5 million to $34.5 million and purchased 844, 926 shares of Pleasanton, Calif-based Safeway Inc. 

crshropshire@tribune.com | Twitter: @corilyns

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