| | | | |  | | By Lara Korte, Eric He and Dustin Gardiner | Presented by Californians for a Connected Future, a project of USTelecom | | 
State Sen. Josh Newman pulled his bill that would have effectively banned third-party security screeding vendors, like CLEAR, from California airports. | AP | THE BUZZ: LINE-CUTTERS REJOICE — A proposal to make air travel more equitable appears to be stuck on the tarmac. Hours before it was set to be heard in committee on Monday, state Sen. Josh Newman pulled his bill that would have effectively banned third-party security screeding vendors, like CLEAR, from expanding to new California airports unless they got a dedicated security lane — a move that would’ve required federal approval. The bill, which received national attention, was backed by unions representing flight attendants and TSA agents. When the Orange County senator introduced it, he said travelers shouldn’t have to “suffer the indignity of somebody pushing you out of the way to let the rich person pass you." The proposal was watered down in April so that it would only restrict CLEAR's ability to go into new airports, temporarily removing the security firm's opposition. But the bill hit some serious turbulence last month after Newman added carveouts for airlines, allowing them to have priority lanes. CLEAR, in a letter to Assembly Transportation Committee Chair Lori Wilson, said such a loophole would put the company at a severe disadvantage. “Although the author claims this bill is about equity, as opposed to targeting any specific company, the most recent amendments would exempt other priority lanes and lines — such as those for first-class passengers — without restriction,” wrote Jessica Ng, CLEAR’s director of state and local public affairs. Newman on Monday confirmed that he had to shelve the bill after learning Wilson had planned to vote against it because of the carve-outs. Committee staff also questioned whether airports have the authority to control allocation of TSA agents or to create a dedicated security lane, as they would have needed to do to expand to new airports under the bill. "Even if TSA did grant a public airport enough TSA agents to staff a dedicated CLEAR lane, the dedicated TSA agent could not help with screening the non-CLEAR security lanes without violating the provisions of this bill," staff wrote. GOOD MORNING. Happy Tuesday. Thanks for waking up with Playbook. You can text us at 916-562-0685 — save it as “CA Playbook” in your contacts. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte. WHERE’S GAVIN? Nothing official announced. | | | | A message from Californians for a Connected Future, a project of USTelecom: Let’s help connect Californians to high-speed internet. We have the chance to make real progress in bringing broadband to all Californians. Modernizing our communications networks is the first step. More than 20 organizations across our state – representing communities from rural to urban, young and old – all agree that we need more high-speed, resilient communications networks. Broadband access unlocks opportunities. Learn more. | | | |  | THE SCOOP | | |  State Sen. Scott Wiener. | AP | FIRST IN PLAYBOOK: CLAP BACK — After Silicon Valley launched a barrage of pushback against his proposed guardrails for large artificial intelligence models, state Sen. Scott Wiener wants to set things straight. Ahead of a key hearing this morning, the San Francisco lawmaker issued a six-page letter responding to what he called “inaccurate” and “inflammatory” statements made by tech titans Y Combinator and a16z about his Senate Bill 1047. The proposal would require large-scale AI models — those that cost more than $100 million to train — to conduct safety assessments before developers deploy them publicly, with the goal of preventing catastrophic harm to humanity. Although Wiener has characterized the bill as setting reasonable standards for a powerful technology, developers across the country have raised alarms, saying it would have a chilling effect on an incredibly lucrative sector of the industry. Wiener in his letter accuses the companies of including “highly inflammatory distortions” in their arguments against the bill, including claims that developers will be sent to jail if they fail to anticipate harms from their models. “As we go through this process, it is critically important that the debate about the bill be rooted in fact — i.e., what the bill actually does — not fiction or exaggeration,” he writes in the letter. The author goes into detail on seven “false claims” about SB 1047, including jail time for perjury, its effect on startups and open-sourced AI models, and complaints from the industry that the bill contains arbitrary and vague language. Wiener emphasized that startups are not subject to the bill, and that developers won’t suffer legal repercussions if they simply make a good-faith mistake — perjury, he said, requires knowingly making a false statement under oath. The bill will get a vote today in the Assembly Judiciary Committee, which is chaired by progressive Democrat Ash Kalra. If it’s approved, it’ll head to the Appropriations Committee, which is chaired by Buffy Wicks, a longtime Wiener ally. | | | | Understand 2024’s big impacts with Pro’s extensive Campaign Races Dashboard, exclusive insights, and key coverage of federal- and state-level debates. Focus on policy. Learn more. | | | | | | | CAMPAIGN YEAR | | | | 
California's gas tax increased by two cents on July 1, for a total of 60 cents per gallon. | (Photo by Justin Sullivan/Getty Images) | GAS TAX DÉJÀ VU — California’s gas tax increased by two cents on Monday. It’s an inflationary bump that happens every July 1, but Republicans are once again trying to make sure Democratic House candidates running in the Central Valley pay the price. The NRCC this week unveiled billboard advertisements targeting swing district Democrats Adam Gray and Rudy Salas over the tax hike. The ads feature pictures of the candidates alongside a “WARNING!” banner alerting drivers to the increase. Gray and Salas, both former state legislators trying to flip Republican seats, were targeted over the same issue in the 2022 cycle. They narrowly lost their House races to GOP Reps. John Duarte and David Valadao, both of whom they’re challenging again this November. The ad blitz shows the NRCC will lean heavily into cost-of-living issues as it tries to defend the pair of Central Valley seats, which are among the most competitive districts in the country. “We will make sure voters know who is responsible for their shrinking wallets,” spokesperson Ben Petersen said in an email. It’s true that Gray voted to increase the gas tax, which pays for road repairs, as an assemblymember. But Salas actually bucked Democrats and voted against the increase in 2018, a stance that cost him a committee gavel.
|  Assemblymember Tina McKinnor shelved a bill that would have let AT&T phase out landline service in parts of California. | Ronald Martinez/Getty Images | DROPPED CALL — Fiber is all the rage, but plain-old telephone service has staying power in Sacramento. That’s bad news for AT&T, which lost its latest battle to modernize its network yesterday when Assemblymember Tina McKinnor shelved a bill that would have let the company phase out landline service in parts of California, so long as viable alternatives were available. It’s another setback for the company, which for years has sought to ditch its legal mandate to provide landline service in areas of the state with no other carrier options. AT&T says the rule, established during the 1990s era of telecom monopolies, puts it at a disadvantage in today’s more competitive market. But some seniors and rural residents worry moving away from landlines could impede their ability to make phone calls during fires or other natural disasters. And for now, they’re winning: State regulators rejected a similar effort from AT&T last month, and multiple Democratic lawmakers — including usual AT&T ally Evan Low — opposed McKinnor’s bill. — Tyler Katzenberger | | | | A message from Californians for a Connected Future, a project of USTelecom:   | | | | | CLIMATE AND ENERGY | | HEATING UP — Extreme heat has long been a policy afterthought, despite being the deadliest weather event. Read more about why it’s suddenly on everyone’s lips — from President Joe Biden to Gov. Gavin Newsom to Insurance Commissioner Ricardo Lara — in last night’s California Climate.
| | ON THE AGENDA | | | | 
California legislators are considering a proposal that would make it easier for regulators to seize flavored tobacco products. | Samantha Maldonado, File/AP | IN THE ASSEMBLY — The Judiciary Committee will take up Wiener’s SB 1047 on guardrails for large AI models. The Governmental Organization Committee will vote on state Sen. Susan Rubio’s bill which would allow the Department of Tax and Fee Administration to seize flavored tobacco products. IN THE SENATE — The Judiciary Committee is preparing for a marathon hearing with 70 bills on the docket, including Assemblymember Rebecca Bauer-Kahan’s proposal to regulate automated decision tools and Buffy Wicks’ bill to prohibit businesses from collection a minor’s personal information without consent. | | | | A message from Californians for a Connected Future, a project of USTelecom: Support a more connected future by expanding broadband across California. High-speed internet is transforming the way we live, driving economic growth and workforce development, and creating new opportunities for Californians to participate in the global economy. And as natural disasters become more frequent and severe, high-speed networks help first responders communicate with each other and the public in emergency situations.
More than 20 organizations across our state – representing communities from rural to urban, young and old – all agree: we need high-speed internet infrastructure to expand opportunity, enhance communications network resiliency to keep communities safe, and support a more connected future. Let’s modernize California's communications networks. Learn more. | | | | | TOP TALKERS | | — State Farm is hiking insurance rates across the board amid worries about its financial future. California’s insurance market could turn upside-down if the company goes out of business. (San Francisco Chronicle) — The recycling company at the center of the FBI raid on Oakland Mayor Sheng Thao’s home has financial ties to former San Jose Mayor Sam Liccardo, who is currently running for Congress. (San Jose Spotlight) — The Democrats floated as potential Biden replacements after last week’s debate continue to rally around the president. That didn’t stop columnist George Skelton from sizing up California’s top contenders: Gavin Newsom and Kamala Harris. (Los Angeles Times)
| | AROUND THE STATE | | — The greater Bay Area’s third-largest credit union reported a significant security breach over the weekend that led to a shutdown of its banking systems. (San Francisco Chronicle) — Cases of FLiRT, a new COVID variant, continue to rise in Los Angeles County. LA Mayor Karen Bass has tested positive for the virus. (Los Angeles Times) — San Francisco mayoral candidate Mark Farrell used a legal loophole to wine and dine with campaign cash during his short stint as interim mayor. (San Francisco Standard)
| | | PLAYBOOKERS | | | PEOPLE MOVES — Alan Witlen, who is based in the LA office of law firm Withers, has been promoted to be a partner. BIRTHDAYS — Rep. Doug LaMalfa (R-Calif.) … Snap’s Gina Woodworth … Derek Gianino of Wells Fargo WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO’s California Playbook. You can now submit a shout-out using this Google form. CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Rebecca Haase to find out how: rhaase@politico.com. | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
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