Wednesday, July 10, 2024

Turbulence ahead for Mike Garcia over Boeing stock trade

Presented by American Clean Power California: Inside the Golden State political arena
Jul 10, 2024 View in browser
 
POLITICO California Playbook

By Melanie Mason, Dustin Gardiner and Lara Korte

Presented by 

American Clean Power California

Rep. Mike Garcia participates in a ceremonial swearing-in on Capitol Hill.

Rep. Mike Garcia. | Patrick Semansky/AP Photo

THE BUZZ: FLYING THE UNFRIENDLY SKIES — GOP Rep. Mike Garcia has outflanked the competition for his blue-tinged district seat in three straight elections. But Democrats are seizing on a new opportunity to go after one of their top targets — by hammering Garcia for selling Boeing stock just when Congress was investigating the troubled aerospace company.

The Democratic Congressional Campaign Committee is betting that questions over Garcia’s suspicious stock transaction in 2020 — coupled with his failure to properly disclose the transaction on time — will cause enough turbulence to flip the Northern Los Angeles County district, one of a handful of races that could determine control of the House.

Garcia sold up to $50,000 in Boeing stock in August 2020, according to a Daily Beast report last year on the trades. At the time, Garcia sat on the House Transportation and Infrastructure Committee, which was in the midst of investigating the company’s handling of crashes involving its 737 Max Airliner.

One month after Garcia sold the stock, the committee, which was then led by Democrats, released a scathing report on Boeing. Garcia also failed to disclose the sale by the required 45-day deadline, filing the paperwork only after he eked out a 333-vote win in November 2020.

Ethics groups filed complaints, but Garcia has not faced any disciplinary action.

The DCCC is releasing a digital ad as an opening salvo. The ad, shared exclusively with Playbook, features a montage of local news anchors reporting on the Daily Beast story, as well as disapproving person-on-the-street interviews with local voters.

“Cash-it-in Congressman Mike Garcia chose to betray the trust of his constituents for inexcusable personal gain — withholding critical information about his self-serving conduct from California families — and we’re going to ensure that misconduct comes back to bite him this November,” said Dan Gottlieb, spokesperson for the DCCC.

Garcia’s campaign is pushing back hard on the substance of the hit, saying that Garcia was not privy to the Democrats’ report on Boeing before it was public. It provided a statement from the GOP committee spokesperson stating that “to our knowledge none of that information was ever requested or shared with any Committee Republican rank and file members until the investigation and report were finished and publicly released.”

“This makes claims of insider trading an impossibility. In short, Rep. Garcia was not privy to any information that wasn’t public domain,” said Liam Anderson, Garcia’s spokesperson.

As for the failure to disclose the sale on time, Anderson said the congressman “immediately rectified the accidental late filing. Everything is filed and everything is public. People are sick of these blatant lies and see right through these lazy attempts to smear their political opponents.”

Garcia has been a tantalizing target for Democrats. The district was once a GOP stronghold but shifted leftward with the influx of Angelenos fleeing the high-cost heart of the city. Democrats now hold a nearly 12-point registration advantage and Biden won the district in 2020 by a similar margin.

Democrats have followed their national playbook as they go after Garcia, highlighting his opposition to abortion and trying to tie him to former President Donald Trump. But they believe the additional messaging about Boeing and potential insider trading is a promising addition for a number of reasons.

Boeing is in the throes of its own reputational tailspin, with the company agreeing this week to plead guilty to fraud charges related to two deadly plane crashes in 2018 and 2019. Any news story regarding aerospace is especially resonant in the district, a hub of the industry. Garcia is a former fighter pilot and his Democratic challenger, George Whitesides, is the former CEO of Virgin Galactic.

And Democrats hope this kind of attack can reinvigorate disaffected voters who will be crucial to winning the seat. Their internal polling (which, as always, should be taken with a grain of salt) found that 50 percent of respondents had “very serious concerns” about the Boeing allegations.

“When we look at the voters less motivated to vote in this election, this is a really meaningful hit against him,” said Molly Murphy, who does polling for the Whitesides campaign. “[These voters] are generally down on politics, generally distrusting of politicians. This is a message that shines a big light about why they feel that way.”

Ben Petersen, spokesperson for the National Republican Congressional Committee, noted that Democrats had tried in past races to ding Garcia for failing to disclose a number of stock trades — with little to show for it.

“The DCCC resurrecting this zombie lie after it was repeatedly debunked is destined to fail again,” Petersen said. “Peddling false tinfoil hat fantasies is a sure sign extreme soft-on-crime megadonor George Whitesides is grasping at straws as he fails to gain traction.”

GOOD MORNING. Happy Wednesday. 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? In Sacramento County giving an update on fire season.

A message from American Clean Power California:

It’s time for California to go big on offshore wind to meet our climate goals. The California Public Utilities Commission (CPUC) must advance California’s clean energy leadership and set a clear course for procuring 10 GW of offshore wind by 2035. Now is the time to secure California’s offshore wind future to meet our climate goals. Click here to learn more about why the CPUC must plan for 10 GW by 2035.

 
CRIME WATCH

Los Angeles County District Attorney George Gascon speaks at a press conference.

Los Angeles County District Attorney George Gascón. | Robyn Beck/AFP via Getty Images

FIRST IN PLAYBOOK: HUSTLIN’ FOR HOCHMAN — A coalition of first responders, law enforcement groups, labor unions, Republicans and moderate Democrats are launching a new independent expenditure committee today to boot Los Angeles County District Attorney George Gascón from office.

Gascón, one of the state’s most progressive prosecutors, has survived two failed attempts to qualify a recall election since he took office in 2021 and now faces a challenge from former Republican Nathan Hochman, who lost to Democratic Attorney General Rob Bonta in 2022.

The committee, Working Families, First Responders, and Small Businesses for a Safer LA County, plans to launch a seven-figure digital media ad buy in support of Hochman this summer. As of this week, the group had raised $2 million. You can catch a preview of the first ad here.

Crime is top of mind for voters across the state heading into November. And a tough-on-crime measure proposed by prosecutors, which Newsom and other Democrats were unable to negotiate off the ballot, has the potential to drive up turnout among voters concerned about public safety.

The supporters of the new Hochman-focused IE include Democratic Assemblymembers Blanca Pacheco and Blanca Rubio, leader of the body’s moderate Democratic caucus. Also backing it are former Los Angeles County DA Jackie Lacey — who lost her seat to Gascón in 2020 — and Republican County Supervisor Kathryn Barger, as well as the Peace Officers Research Association of California, or PORAC.

 

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.

 
 
BIDEN WATCH 2024

President Joe Biden delivers remarks on the 75th anniversary of NATO at the Andrew W. Mellon Auditorium, Tuesday, July 9, 2024, in Washington. (AP Photo/Evan Vucci)

President Joe Biden delivers remarks on the 75th anniversary of NATO on Tuesday. | AP

ALL POLITICS IS LOCAL — As President Joe Biden tries to shore up Democratic support for his candidacy, he’s turning to America’s mayors. On Tuesday night, he held a Zoom call with blue-city mayors and assured them he’s not exiting the race — a message that apparently went over well with many.

Sacramento Mayor Darrell Steinberg told Playbook there were no dissenting voices during the 45-minute call, even as Biden took questions. Steinberg said the president’s delivery was free of the stumbles that overshadowed the first debate with Trump, when Biden often struggled to deliver coherent responses and appeared confused.

“He projected a lot of strength,” Steinberg told Playbook. “He was relaxed. He would have gone longer, I’m sure."

Steinberg said the time for intraparty debate about whether Biden should step aside — a question that high-ranking California Reps. like Nancy Pelosi, Adam Schiff and Mark Takano have entertained — is over. He added, “The president has made it very clear he’s not leaving, he’s staying. There’s only one choice: Let’s fight to win.”

San Francsico’s London Breed was also on the call and released a statement praising Biden for federal infrastructure investments, but declined to discuss specifics of the conversation. Karen Bass of Los Angeles and Todd Gloria of San Diego also participated. Gloria said Biden “took responsibility” for his dismal debate performance before laying out his second-term agenda and contrasting it with what a second Trump administration would mean.

“He acknowledged that he needs to do better and will do better,” Gloria said, calling the conversation “very encouraging.”

 

A message from American Clean Power California:

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CASH DASH

Eleni Kounalakis speaks.

Lt. Gov. Eleni Kounalakis. | Steve Yeater/AP

FIRST IN PLAYBOOK: ELENI’S GOLDEN TOUCH — Lt. Gov. Eleni Kounalakis raised $1.4 million in the first half of the year for her 2026 campaign for governor, her team exclusively told Playbook. Her haul speaks to the highly competitive nature of the race two years ahead of time. Kounalakis’s camp also said she has $9 million cash on hand between her accounts for governor and lieutenant. A prolific fundraiser, she hosted an event for the Biden campaign in San Francisco when Vice President Kamala Harris was in town earlier this year. Kounalakis said her Super PAC — which is dedicated to boosting Biden’s reelection and promoting abortion rights — has raised an additional $4.1 million.

ROLLINS ONE-UPS AGAIN — Democratic House candidate Will Rollins has once again outraised incumbent Republican Rep. Ken Calvert. Rollins’ camp announced that he raked in more than $2.2 million in the second quarter, far surpassing Calvert, who raised nearly $1.4 million. It’s a sign of how Democrats are betting big on flipping the Palm Springs/Riverside County swing seat in their quest to retake the House. Rollins also said he has more than $4.7 million cash on hand, compared with $3.6 million for Calvert.

A message from American Clean Power California:

It’s time for California to go big on offshore wind and set a clear path for procuring 10 GW by 2035 to meet our climate and clean energy goals.

The California Public Utilities Commission (CPUC) is facing a critical decision on offshore wind planning that will either enable the industry to scale or jeopardize the state’s reliability and 100% clean energy goals.

The CPUC must advance California’s clean energy leadership and set a clear path for procuring 10 GW of offshore wind by 2035. Planning for offshore wind at scale will drive port and transmission upgrades, supply chain readiness, and project development to yield the benefits of thousands of jobs, energy reliability, and long-term affordability.

Click here to learn more about why the CPUC must plan for 10 GW by 2035.

 
ON THE AGENDA

— Lawmakers return Aug. 5 for the final month of their session. How are you spending these next few weeks of summer recess? Drop us a line via email, text or tweet. We just might feature a few shout-outs in Playbook.

CLIMATE AND ENERGY

SETBACK ZONE — California’s new law banning oil wells near occupied buildings is indirectly threatening a wetlands restoration project near Long Beach. Read more in last night’s California Climate.

TOP TALKERS

— VP Harris is stuck in an awkward position: prepping for a potential run for president while displaying ironclad loyalty for Biden. (The New York Times)

— Speaking of Biden replacements, POLITICO’s own Calder McHugh dove into the Democrats who have a fighting chance at the longshot scenario.

— Meanwhile, Democrats are getting creative with their responses about Biden’s wobbly standing at the top of the 2024 ticket. (Los Angeles Times)

AROUND THE STATE

— Kevin Ortiz, co-president of the Latinx Democratic Club in San Francisco, is on a leave of absence as the club launches an investigation into allegations of sexual assault made against him. (San Francisco Chronicle)

— How an anti-abortion activist group made Beverly Hills an unlikely battleground for the future of reproductive rights. (Los Angeles Times)

— Silicon Valley business leaders are urging the federal government to release more than $6 billion for a BART extension to Santa Clara and downtown San Jose. (East Bay Times)

PLAYBOOKERS

PEOPLE MOVES — Bryson Gillette, the strategic communications firm founded by Obama alum Bill Burton, is launching a new partner agency, Bryson Gillette Advocacy, to focus on government advocacy and public affairs. Damara Catlett will work alongside Burton as the executive vice president and principal of Bryson Gillette Advocacy.

BIRTHDAYS — Rep. Tom McClintock (R-Calif.) … POLITICO’s Chris Cadelago

BELATED B-DAY WISHES — (was Tuesday): Kenny Rosenberg Drew Hammill 

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.

 

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