News: POLITICO California Playbook: O’LEARY leaving as NEWSOM chief — BECERRA backlash brews — LA dining ban nixed

Wednesday, December 9, 2020

POLITICO California Playbook: O’LEARY leaving as NEWSOM chief — BECERRA backlash brews — LA dining ban nixed — TWITTER’s DORSEY funds UBI

Dec 09, 2020

By Jeremy B. White, Carla Marinucci, Graph Massara and Mackenzie Hawkins

THE BUZZ — The Ann O'Leary era is ending in Sacramento.

Gov. Gavin Newsom's chief of staff is departing roughly halfway through the governor's term, compelling Newsom to find a new lieutenant as he navigates the most turbulent stretch of his tenure, POLITICO's Carla Marinucci reports, where Longtime Sacramento hand Jim DeBoo confirmed last night that he would be taking over.

O'Leary came to Sacramento boasting an impressive resume, including time in Hillary Clinton's inner orbit and a stint at the powerhouse law firm Boies Schiller Flexner. But some lawmakers and legislative staffers have griped about her lack of California-specific experience, seeing Newsom as having brought in a high-profile figure who lacked the knowledge of process and pressure points to successfully navigate the thicket of Capitol politics. At one point, she had to apologize to lawmakers after overpromising to housing advocates.

The departure adds to significant turnover in the horseshoe. In the last few months, Newsom has already seen his communications team shift with the exits of Daniel Zingale and Nathan Click and the addition of Sahar Robertson; former legislative affairs secretary Anthony Williams left earlier this year and was replaced by former labor heavyweight Angie Wei. All of that churn comes as Newsom is battling negative headlines over his dubious choice to attend a French Laundry soiree and trying to guide California through a final, lethal phase of the coronavirus pandemic.

WHAT'S NEXT? You may recoil at hearing this, but Newsom's re-election campaign will swing into gear sooner than you think, and this coming year will profoundly shape his record and the public's perceptions. Newsom will have to juggle a mass vaccine rollout, an economic recovery and possibly a record-setting wildfire or three — and that's not getting into the housing and homelessness issues that were severe enough that Newsom felt compelled to devote his 2020 State of the State address to them (remember that?). As second-in-command, DeBoo will play an instrumental role in that stretch.

BUENOS DÍAS, good Wednesday morning. Newly sworn in state legislators are announcing more bills by the minute. A buzzy one to watch: Sen. Connie Leyva wants to ban sending unsolicited nude pictures.

WHERE'S GAVIN? Nothing official announced.

QUOTE OF THE DAY: "Xavier Becerra will be Joe Biden's nationwide lockdown enforcer. The Senate ought not to confirm him." Arkansas Sen. Tom Cotton telegraphs GOP opposition to Becerra's HHS appointment on Fox News.

BONUS QOTD: "Yes, I have moved to Texas." Tesla CEO Elon Musk confirms to WSJ he no longer calls California home.

TWEET OF THE DAY: House Minority Leader Kevin McCarthy @GOPLeader on an explosive Axios report that a suspected Chinese spy targeted Rep. Eric Swalwell: "Rep. Swalwell has long been disqualified from serving on the Intel Committee. For years he peddled Russian disinformation for political gain. Now we find out he was involved in an effort by a reported spy to gather info for China. Swalwell is a national security liability."

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TOP TALKERS

SWEARING IN, DINING OUT — "These California lawmakers distanced for work. Then they shared dinner at a Sacramento restaurant," by the Sac Bee's Hannah Wiley: "Assembly members Adrin Nazarian, D-West Toluca Lake, Chad Mayes, I-Rancho Mirage, Tasha Boerner Horvath, D-Encinitas, Marc Levine, D-Marin County, and Chris Ward, D-San Diego, along with Mayes' fiancée, attended a dinner Monday evening at Maydoon, a newer restaurant in Sacramento's Midtown neighborhood."

TWITTER CEO FOR UBI — "Cities ramp up efforts to send direct checks to residents after $15 million donation from Twitter CEO," by WaPo's Tony Romm: "The new payments are part of an initiative, called Mayors for a Guaranteed Income, which launched earlier this year and announced its plans to distribute additional aid on Tuesday after receiving a new $15 million donation from Twitter chief executive Jack Dorsey."

AND IN SAC — Assemblymember Evan Low announced legislation to extend universal basic income to all Californians, no matter their income.

— "Margaret Hunter Seeks to Divorce Ex-Congressman Husband Duncan D. Hunter," by the Times of San Diego's Ken Stone.

SWALWELL RESPONDS — Rep. Swalwell says Trump criticism behind spy story, by POLITICO's John Bresnahan: Swalwell said he first became aware that Axios was looking into Fang activities in July 2019, just as the California Democrat was ending his brief and unsuccessful bid for the Democratic presidential nomination. Bashing Trump was the key to Swalwell's short tenure in the race, and he continued to loudly call for the president's removal from office throughout the year... Swalwell refused to discuss his relationship with Fang, although he did say the controversy was not going to cost him the Intelligence Committee seat.

— " Sheriff's officials knew about a massive house party in Palmdale. Why didn't they stop it?" by the LA Times' Alene Tchekmedyian.

CORONAVIRUS UPDATES

WIN FOR RESTAURANTS — Judge calls L.A. outdoor dining ban 'abuse' of emergency powers, by POLITICO's Victoria Colliver and Katy Murphy: The tentative ruling to block the open-ended ban won't have immediate practical consequences for Los Angeles-area restaurants, as the county is now under a temporary stay-home order tied to the region's quickly diminishing ICU capacity. But it marks a symbolic and legal victory for those challenging the emergency powers flexed by state and local officials — and a rare setback for public health authorities facing a worsening crisis.

REMOTE SPRING — California colleges rethink 2021 calendar due to coronavirus surge, by POLITICO's Mackenzie Hawkins: Infections are expected to peak just as hundreds of thousands of students would normally return to campus in January, and some colleges are putting in-person instruction on hold. If they want students to return to campus at all, schools have to figure out a way to bring them back safely as the state's testing infrastructure is stretched dangerously thin.

— " Some restaurants are defying California lockdown rules: 'We have to make a living'," by The LA Times' Anh Do and Luke Money: "While many businesses in areas covered by the state's new regional stay-at-home order appear to be complying, some are trying to figure out ways to keep their businesses going."

THE BIG TEST — "Hospitals face tough choices as ICUs fill up with COVID-19 patients ," by The LA Times' Rong-Gong Lin, Luke Money and Soumya Karlamangla: "In the coming weeks in L.A. County, hospitals will try to choreograph their staffing to best meet the needs of critically ill patients, some of whom still might have to be sent to other areas of the hospital that don't typically treat ICU cases. But that comes with risks. Should a staff shortage become particularly dire, critically ill patients could end up getting care from nurses and doctors without up-to-date specialized intensive care training."

— " Some ICUs at California hospitals are completely full: 'It is the worst we have seen'," by The LA Times' Faith E. Pinho, Rong-Gong Lin II and Luke Money: "At least three counties in the San Joaquin Valley have reached 0% capacity in their hospitals' intensive care units, making the state's agricultural hub the first area in California to become maxed out. In Santa Clara County, meanwhile, conditions are deteriorating rapidly. Officials said there are only 31 ICU beds remaining — less than 10% of the county's capacity — and that a few hospitals have run out completely."

TRANSITION TIME

INCLUDING MCCARTHY — GOP leaders block measure affirming Biden as president-elect, by POLITICO's Sarah Ferris, Heather Caygle and Melanie Zanona.

BECERRA OPPO — " Two Biden Cabinet picks played role in Clinton-era commutation that drew complaints of political favoritism," by WaPo's Rosalind S. Helderman and Tom Hamburger: "California Attorney General Xavier Becerra, whom Biden has announced he intends to nominate as health and human services secretary, and Alejandro Mayorkas, Biden's pick for homeland security secretary, were among several prominent Los Angeles figures who reached out to the White House about the sentence of Carlos Vignali Jr., whose father was a wealthy entrepreneur and major Democratic donor in California."

— "California's Xavier Becerra faces skepticism from Senate Republicans for Cabinet job," by the SF Chronicle's Tal Kopan: But: "Republican senators are stopping short of saying he wouldn't be confirmed."

CONSERVATIVE TAKE — " The Biden Opportunity and How to Blow It," Ross Douthat opines in the NY Times: "For a campaign that placed so much emphasis on the idea that disinterested expertise and capital-S Science should guide the coronavirus response, Becerra is a peculiar choice: a partisan politician from a deep-blue state whose health care experience is mostly in legal battles with the Trump White House over Obamacare, rather than in health policy or medicine itself."

— Republicans play FCC hardball to jam Biden's tech ambitions, by POLITICO's John Hendel.

CAMPAIGN MODE

CDP DRAMA — Assembly Speaker Anthony Rendon endorsed Jenny Bach to be the California Democratic Party's vice chair, joining Treasurer Fiona Ma in backing Bach over Controller Betty Yee, whose decision to seek the CDP post has raised some eyebrows.

CALIFORNIA AND THE CAPITOL CORRIDOR

— "Can 'fire hardening' solve California's home insurance crisis?," by CalMatters' Jake Bikales: "It's likely some homeowners would choose to reduce their risk against fire — a practice known as home hardening — regardless of the insurance implications, but state regulators are increasingly eyeing the practice as a potential solution to the burgeoning insurance crisis. In fact, they're considering whether — and how — to institutionalize it."

— "Faulconer Stayed Largely Silent as Policing Dominated the Discourse ," by Voice of San Diego's Jesse Marx: "Police officers themselves are happy with Faulconer's record on policing. Many of the people who experience policing from the other end — particularly Black San Diegans — are not."

— "California's Ancient Redwoods Face New Challenge From Wildfires And Warming Climate," by NPR's Eric Westervelt.

SALINAS SPOTLIGHT — "Going it alone in two of America's agricultural towns," by WaPo's Laura Reiley.

SILICON VALLEYLAND

ARBITRATION LITIGATION — "Tesla called her a criminal. Her fight could be a milestone for employees' rights," by the LA Times' Russ Mitchell: "But Balan's appeals case goes beyond defamation. It raises questions about the limits of the legal practice known as mandatory arbitration, about whether an arbitration agreement can follow an employee for years or even decades after they've left a company — which is what Tesla lawyers argue as they attempt to keep the case out of court."

— " State, federal authorities expected to file antitrust lawsuits against Facebook on Wednesday," by WaPo's Tony Romm: "The states' lawsuit in particular is expected to allege that Facebook's purchase of Instagram, a photo-sharing app, and WhatsApp, a messaging service, marked a pattern of behavior by the tech giant to neutralize competitive threats — allowing Facebook to become a market leader while depriving users of privacy protective alternatives."

FUEL CELL FLOP — "How an Energy Startup's Plan to Disrupt the Power Grid Got Disrupted," by WSJ's Rebecca Davis O'Brien and Katherine Blunt: "[KR] Sridhar's proposition to disrupt the energy market came as the world was trying to figure out how to wean off fossil fuels. Instead, the energy industry has disrupted Mr. Sridhar's strategy, turning to wind and solar power, which have lower costs and deliver cleaner energy than Bloom's cells, which emit carbon dioxide. Grid power is still less expensive than Bloom's in most places."

HOLLYWOODLAND

— "Culture Clash: Warner Bros.' HBO Max Move Signals New Day in Hollywood," by Variety's Brent Leng and Rebecca Rubin: "It's a blow to movie theaters, which were already reeling from audiences' skittishness about visiting multiplexes during a public health crisis, and a sign that the film business is being subsumed by the streaming revolution."

— "AT&T chief defends HBO Max after Christopher Nolan calls it the 'worst,'" by the LA Times' Ryan Faughnder: "The decision to release movies — including potential hits such as 'Dune' and 'Matrix 4' — on HBO Max as soon at they hit theaters has shaken Hollywood in an unprecedented way, with some filmmakers and experts believing the decision will do irreparable damage to the traditional film exhibition business."

CANNABIS COUNTRY

— "California's first cannabis czar reflects on her time at the helm as she steps down," by Marijuana Business Daily's John Schroyer: "[Lori] Ajax – who didn't shy from the limelight but also was never completely comfortable in its glare – was often considered a divisive figure in industry circles. And she was criticized by executives who were frustrated with what they considered onerous regulations that hampered California's transition to a new legal market in 2018."

MEDIA MATTERS

— "Vallejo police to investigate email sent to Chronicle columnist by officers' union," by the SF Chronicle's Lauren Hernández: "'We will warn our Georgia colleagues of your impending arrival,' the email read, referring to law enforcement in Georgia, where [Otis] Taylor will move to join the Atlanta Journal-Constitution's investigative team."

MIXTAPE

— "Judge grants former Rep. Katie Hill temporary restraining order against her ex-husband," by NBC's Andrew Blankstein.

SF SCANDAL — " Was cocaine found in ex-SFPUC chief's home? In new twist of S.F. City Hall scandal, judge orders drug testing," by the SF Chronicle's Megan Cassidy.

— "New Fuego Futbol Club rekindles Fresno's soccer past, and offers redeveloped Selland Arena," by the Fresno Bee's Marek Warszawski.

— "Dodgers scout Jairo Castillo dies at 31 from COVID-19," by the LA Times' Jorge Castillo.

— "Santa Clara County and San Jose could cap commissions, fees food delivery apps charge restaurants," by the Mercury News' Aldo Toledo.

— "Castro homeless woman known for wandering into traffic is dead. Why couldn't S.F. save her?" by the SF Chronicle's Heather Knight.

— "'These mountains could turn into jelly.' Above Santa Cruz, residents fear devastating mudslides ," by the LA Times' Susanne Rust.

BIRTHDAYS

Lisa Greer

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