Two of the state’s largest health plans agreed Thursday to reinstate coverage to nearly 1,200 patients whose policies were dropped after they incurred high medical expenses. Under the deal, patients whose insurance was rescinded by Kaiser Permanente or Health Net since 2004 will be allowed to purchase new insurance regardless of preexisting medical conditions. The settlement, brokered by the California Department of Managed Health Care, comes three months after a Gardena hair salon owner won an unprecedented $9-million judgment against Health Net for canceling her coverage while she was undergoing chemotherapy, halting her treatment. For the full story visit http://www.latimes.com/business/la-fi-insure16-2008may16,0,1687750.story

Interlink Electronics Inc. narrowed its net loss for its first quarter when compared to a year ago. The Camarillo-based developer and manufacturer of electronic signature and e-notarization products reported a net loss of $2.1 million, or $0.15 per diluted share, on revenues of $5.8 million for the quarter ending March 31. For the same period in 2007, the company had a net los of $2.5 million, or $0.18 per diluted share, on revenues of $4.2 million. Shares in Interlink closed up at $0.90.

NEW YORK — The U.S. factory sector started the month on a weak note after declining in April, according to data released today, while the number of workers stuck on jobless rolls hit a four-year high. The data paint a weak picture of the U.S. economy but also send mixed signals on inflation, leaving the Federal Reserve in a dilemma as it seeks to support the economy while keeping price pressures in check. Factory activity in the U.S. mid-Atlantic region shrank for a sixth straight month in May while manufacturing in New York State also declined this month, according to reports by regional Federal Reserve banks. For the full story visit http://www.latimes.com/business/la-fi-econ16-2008may16,0,1415154.story

With vital and often-distant water sources shrinking, Los Angeles officials will revive a controversial proposal to recycle wastewater as part of a plan to curb usage and move the city toward greater water independence. The aggressive, multiyear proposal could do much to catch the city up to other Southern California communities that have launched advanced recycling programs. Mayor Antonio Villaraigosa’s effort could cost up to $2 billion and affect a wide range of daily activities. For example, residents would be urged to change their clothes’ washers, and new restrictions would be placed on how and when they could water lawns and clean cars. For the full story visit http://www.latimes.com/news/local/la-me-lawater15-2008may15,0,1615373.story

Increased funding for research and development for its third generation laser products contributed to QPC Lasers Inc. reporting a net loss for its first quarter. A charge-off on money owed by an international medical customer that filed for bankruptcy added to a tough quarter for the Sylmar-based manufacturer. Still, the company boosted its sales and marketing teams to expand its international distribution channels and meet growing customer demands, said Chairman and CEO Jeffrey Ungar. For the quarter ending March 31, QPC reported a net loss of $9.1 million, or $0.24 per diluted share, on revenues of $1.6 million. For the same period in 2007, the company had a net loss of $2.4 million, or $0.06 per diluted share, on revenues of $1.4 million. In the first quarter, QPC received two new patents; shipped a high power laser to a U.S. Department of Defense customer; and participated in the founding of 3D@Home Consortium along with The Walt Disney Co., Samsung, and Philips. Shares in QPC closed at $0.72.

The phase out of a semiconductor test program overseas contributed to Trio-Tech International posting a net loss in its third quarter. The Van Nuys-based firm reported a net loss of $1.4 million, or $0.44 per diluted share, on revenues of $8.4 million for the quarter ending March 31. For the same period in 2007, the company posted net income of $1.08 million, or $0.33 per diluted share, on revenues of $13.6 million. The company has taken aggressive steps to cut costs as it phases out a test program at facilities in Singapore and China, including layoffs and reducing executive salaries, said CEO S.W. Yong. “At the same time, our efforts to win new business with existing and new customers are meeting with some success, which is another encouraging sign for the future,” Yong said.

SACRAMENTO — Gov. Arnold Schwarzenegger attempted to forge a path out of the state’s financial mess by offering concessions to both Democrats, who are demanding that schools and other services not be cut, and Republicans disdainful of new taxes. Both sides immediately declared that they wanted little to do with the governor’s budget proposal, suggesting that Sacramento is in for another long, unproductive summer. The $144.4-billion spending plan would restore $1.8 billion for schools while making deep cuts in welfare and healthcare for the infirm, legal immigrants and impoverished parents. For the full story visit http://www.latimes.com/news/local/la-me-budget15-2008may15,0,5652117.story

FutureLogic Inc. announced a settlement of patent litigation with TransAct Technologies. According to the agreement, Glendale-based FutureLogic will license TransAct’s dual port technology for printers and upgrade kits that utilize the patented technology. The license includes worldwide, perpetual rights for the patent, related applications and foreign counterparts. No other details of the agreement were disclosed.

The Nestle company on Monday said it is significantly scaling back plans in Northern California to build what would have been the country’s largest water bottling plant. The announcement by Nestle Waters North America comes after years of opposition by environmentalists and a group of residents in the rural town of McCloud. With soaring fuel and transportation costs, building a 1 million square foot facility at the base of Mt. Shasta no longer makes economic sense, said David Palais, Nestle’s Northern California natural resource manager. The company also has built a plant in Denver and expanded other facilities in the West. Palais told The Associated Press that those expansions make a large plant in California less necessary. For the full story visit http://www.latimes.com/news/local/la-me-nestle13-2008may13,0,6560431.story

The Residence Inn in Burbank has been sold by developer/builder R.D. Olson of Irvine as part of a two-property deal. The 166-suite Burbank hotel and another Residence Inn in Oceanside also built and developed by Olson were purchased by Virginia-based Apple REIT 8 for $80 million, reported GlobeSt.com.