By JIM SANDERS, Sacramento Bee

Car insurance by the tankful?

Not quite, but California moved a step closer last month to pay-as-you-drive policies that could allow motorists to buy insurance like they do gasoline -- a little at a time.

More than a dozen years after Arnold Schwarzenegger's Mercedes-Benz was ambushed in Santa Monica by two rowdy paparazzi, sparking their arrests, the actor-turned-governor is having his say.

Oops -- Josefina Sineriz may owe her $2.8 million in lottery winnings last winter to a mistake by the California Lottery's staff.

The 61-year-old Bakersfield woman was given the opportunity to win the top prize by an inadvertent transposition of contestants' names.

Much has happened since a proposal to honor gay-rights pioneer Harvey Milk each year with a state-declared day of recognition was vetoed last September by California Gov. Arnold Schwarzenegger:

-- Milk's life was portrayed in an Academy Award-winning movie, "Milk," that resulted in a best-actor Oscar for Sean Penn.

Willie Horton's shadow haunts California's capitol as lawmakers wrestle with how to cut $1.2 billion from state prisons without endangering public safety.

Smoke weed -- help the state?
Marijuana would be sold and taxed openly in California to adults 21 and older if legislation proposed this week is signed into law.
California Assemblyman Tom Ammiano, a San Francisco Democrat, said his bill could generate big bucks for a cash-starved state while freeing law enforcement agencies to focus on worse crimes.

Despite mounting money woes, California's local government agencies continue to spend tens of millions each year to influence state government -- with taxpayers picking up a rising tab.
Far more public funds were paid by cities, counties and school districts during the two-year legislative session that ended Dec. 1 than at any time this decade, records show.

Being a good Samaritan can land Californians in court -- and cost them plenty, perhaps.
Lisa Torti found that out the hard way.
The Los Angeles woman pulled a friend from the wreckage of a car crash only to be sued for allegedly exacerbating the victim's injuries.

Psst, here's a secret for avoiding higher state fees after New Year's Day: Drive carefully, park right, wear seat belts, don't get divorced and stay out of jail.
Most of the coming increases target avoidable behavior or court filings ranging from small claims spats to marital splits to massive lawsuits.

SACRAMENTO, Calif. -- Will Californians lie to save money?Apparently.New legislation takes aim at an honor system, of sorts, that allows motorists to lowball their annual mileage and save on their car insurance premiums. Being honest, it turns out, can hurt -- financially.