Assembly pushes back on Newsom

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Aug 29, 2024 View in browser   By Lara Korte and Dustin Gardiner Presented by  Democrats in the Assembly are asserting themselves as Gov. Gavin Newsom pushes to fast-track legislation on gas prices. | Juliana Yamada/AP Photo THE BUZZ: JAM SESH — After years of being asked to support Gov. Gavin Newsom’s last-minute legislative plays, Democrats in the Assembly are pushing back. The Legislature could be headed for a special session next month to address energy issues after assembly members resisted the governor’s initial efforts to hurriedly pass a bill this week to give the state more authority over oil refiners’ supplies as a way to try to prevent gas price spikes. Newsom’s plan got a cool reception from the Assembly Democrats when presented on Tuesday, in part because of concerns that it could raise gas prices, but also because it presses on a years-long sore spot between the two branches of government that are supposed to be equal — one where legislators feel like they are often being jammed on the governor’s eleventh-hour requests without much regard for their own concerns and vetting processes. In response to the resistance, the governor leveraged the idea of a special session. Now, members say they’re prepared to take him up on the offer. “I'm not here just to let somebody have a win on a press conference,” said one Democratic legislator familiar with negotiations, who was granted anonymity to candidly discuss sensitive subjects. “We want to dive in and actually solve this issue.” The tension reflects lawmakers’ long-simmering frustrations with how Newsom approaches the Legislature. In 2022, he pressured Democrats to pass a heap of oil industry-opposed climate bills, later taking credit for the package and lamenting that he had to “jam [his] own Democratic Legislature” to get it done. In 2023, lawmakers also passed a set of infrastructure bills that he floated at the very end of budget negotiations. And earlier this year, he was lobbying Democrats to back a scheme to negotiate the tough-on-crime Proposition 36 off the ballot with a counter proposal, only to pull that measure at the last minute. “Over time, at least since I’ve been here, legislators have become increasingly frustrated over these last-minute deals,” said Assemblymember Alex Lee, a progressive Democrat. Many lawmakers are still feeling raw over how the administration handled Prop 36, with some arguing it ultimately left both the Legislature and the governor with egg on their faces. “I do think that eroded trust for members,” said the Democratic legislator familiar with negotiations. In response to lawmakers' complaints about feeling repeatedly rushed, the governor’s office said it has been working with them on the refinery policy for months, and that the first recommendations from the Division of Petroleum Market Oversight were shared with the Legislature at the start of the year. Still, many Democrats in the Assembly feel they need more time to consider any unintended consequences. The final language of the proposal went into print just before 5 p.m. Wednesday, giving the Legislature about three days to pass it before the end-of-session deadline. To be sure, many members say they’re aligned with the governor on the ultimate goal — to protect consumers — and say a special session would give them more time to get it right. Assemblymember Isaac Bryan, chair of the Natural Resources Committee, said: “I think we've got to do all we can to respond to this crisis, and whether we complete that work by the end of the week, or we've got to come back and do a special session, I think we're all committed to getting this done.” The Senate, for its part, isn’t keen on sticking around Sacramento past Saturday, with multiple lawmakers telling POLITICO there’s no reason they can’t get it done by the end-of-month deadline. Republicans, meanwhile, are glad to see their counterparts push back against the governor. GOP Assemblymember Devon Mathis said he thinks Newsom should have better relationships within his own party at this point in his tenure. “This throwing a temper tantrum, saying, ‘if you don't give me what I want, I'm gonna force you into a special session’ …. I mean, I'm kind of glad my colleagues on the other side of the aisle are calling bullshit,” Mathis said. GOOD MORNING. Happy Thursday. 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 Amazon:   STATE CAPITOL It's now up to Gov. Gavin Newsom to decide on a housing bill for undocumented immigrants. | Rich Pedroncelli/AP LOANS IN LIMBO — All eyes are on Newsom as he’s set to decide whether certain undocumented immigrants are eligible for a state program that provides up to $150,000 in low-cost loans for first-time homebuyers. The measure, which passed Wednesday afternoon after lengthy debates in both houses, was roundly criticized by Republicans. The Senate GOP quickly circulated a letter calling for Newsom to veto the bill, writing that the proposal would stretch limited public resources and that “legal California taxpayers are already struggling to purchase and maintain their homes.” But Fresno Democrat Joaquin Arambula, who carried the bill, countered that the measure was one of fairness and not aiming to solve the immigration or housing debates. The proposal would only allow undocumented immigrants who have a social security or taxpayer identification number to apply for existing state-supported housing assistance programs. “Those that are paying into a system should be able to receive benefits from those same systems as everyone else does,” Arambula said in a floor speech. — Eric He   Follow ongoing storylines on how the election will shape policy debates beyond 2024. Our nonpartisan insights prepared our subscribers to navigate a changed political landscape. Learn more about POLITICO Pro.     CAMPAIGN YEAR Former Los Angeles Mayor Antonio Villaraigosa. | Godofredo A. Vásquez/AP BUZZY NUMBERS — Playbook got its hands on a new private poll in the race to succeed Newsom, and it shows former Los Angeles Mayor Antonio Villaraigosa and Lt. Gov. Eleni Kounalakis out ahead of other Democrats among likely 2026 voters. Villaraigosa is at 13 percent and Kounalakis at 10 percent. Villaraigosa has a clear advantage over Kounalakis among likely Democratic voters, 21 percent to 14 percent, according to the survey. The poll, which began circulating among donors and Capitol insiders Wednesday, was conducted by Tulchin Research, a respected firm working with Villaraigosa’s campaign. A Villaraigosa adviser declined to comment when approached by Playbook. But the poll’s circulation shows a different approach than he took in his 2018 losing gubernatorial campaign, and an effort on his part to make an assertive grab for the frontrunner designation. The survey also is useful for a global look at the governor’s race. It shows a more wide-open contest than the one in 2018, when Newsom began with a large lead and never looked back. Indeed, nearly 4 in 10 voters overall and Democratic voters remain undecided about 2026. On the Republican side, 2022 GOP gubernatorial candidate Brian Dahle is at 13 percent and conservative commentator Steve Hilton at 10 percent. POLITICO on Tuesday was first to report that Hilton is seriously considering a bid. Dahle has not said he plans to run, though other Republicans remain in the mix. Further back among likely voters are former state Controller Betty Yee (7 percent), state Sen. Toni Atkins (4 percent) and state schools chief Tony Thurmond (4 percent). The candidates were identified by their best-known titles, though they will not necessarily be their official ballot designations in 2026. After Villaraigosa’s 7-point advantage over Kounalakis among likely Democratic voters, Yee is at 11 percent, Atkins at 6 percent, and Thurmond at 5 percent. The survey of 800 likely voters was conducted between August 8-12 in English and Spanish. The margin of error is nearly 3.5 percent. — Christopher Cadelago   A message from Amazon:   Democratic presidential nominee Kamala Harris. | Jacquelyn Martin/AP Photo YIMBY-CHELLA — Leaders of the Yes in My Back Yard, pro-housing movement are continuing to flex their national muscle as Democratic nominee Kamala Harris embraces their pro-housing message. Supporters of the cause held their first national organizing call in support of Harris on Wednesday night — an event fittingly named YIMBY-Chella, after the popular California music festival, and a nod to the state where activists launched the movement to fight increasing housing costs. Speakers included a “Who’s Who” list of prominent YIMBY politicians from the Golden State: Reps. Scott Peters, Robert Garcia; Attorney General Rob Bonta; San Francisco Mayor London Breed; and state Sens. Scott Wiener and Nancy Skinner. “Kamala and Tim are the most pro-YIMBY presidential ticket in our country’s history,” Peters said of the nominee and her VP pick, Minnesota Gov. Tim Walz. The event, which raised more than $110,000 for Harris, also included big-name electeds from beyond California, a sign of the movement’s growing national legs: Maryland Gov. Wes Moore, Colorado Gov. Jared Polis, Hawaii Sen. Brian Schatz, and Florida Rep. Maxwell Frost. FIRST IN PLAYBOOK: YES ON 33 BLASTS ‘HOMELESS NIGHTMARE’ — The actor Blair Underwood is the latest figure to star in an ad for the Yes on 33 campaign, the AIDS Healthcare Foundation-backed ballot measure that would allow local governments to impose rent control restrictions. “Our California dream is turning into a homeless nightmare for too many, and millions more are asking, ‘Where will I live?’” Underwood says in the ad, which will run on YouTube and Meta starting Friday. “Rent control is an American tradition for over 100 years.” It’s a small ($25,000) ad buy, but comes as campaigns on both Props 33 and 34 — the measure targeting AHF’s funding — are gearing up their messaging toward voters in what’s looking like this year’s most expensive ballot fight thus far. — Emily Schultheis   DON’T MISS OUR AI & TECH SUMMIT: Join POLITICO’s AI & Tech Summit for exclusive interviews and conversations with senior tech leaders, lawmakers, officials and stakeholders about where the rising energy around global competition — and the sense of potential around AI and restoring American tech knowhow — is driving tech policy and investment. REGISTER HERE.     ON THE AGENDA FLOOR SESH — The Assembly and the Senate convene at 10 a.m. Expect floor sessions all this week as lawmakers hustle to pass bills before Saturday night’s deadline. TOP TALKERS Former President Donald Trump. | Emily Elconin/Getty Images TRUMP CLAIMS FRAUD — Donald Trump is accusing Mark Zuckerberg of plotting against him during the 2020 election in a forthcoming coffee-table book set to publish next week, POLITICO’s Alex Isenstadt reports. Trump, who has accused Zuckerberg of intervening in the last presidential election, said the Meta CEO would “spend the rest of his life in prison” if he did it again. HOT WATER — Southern California’s largest water supplier extended administrative leave for Adel Hagekhalil, its general manager and CEO, while it continues to investigate workplace harassment claims made against him, our colleague Blanca Begert reports. Hagekhalil said Tuesday that investigators have not contacted him since he was placed on leave in June. PAY UP — The U.S. Supreme Court on Wednesday declined a request to restore President Joe Biden’s student loan repayment program, POLITICO’s Rebecca Carballo reports, leaving 8 million borrowers in limbo. AROUND THE STATE — The FBI alleges a Los Angeles car rental business is at the center of a years-long scheme to aid so-called “crime tourists” that committed hundreds of thefts nationwide. (Los Angeles Times) — Angry parents are urging San Francisco’s school board not to close schools despite staffing shortages and a budget crunch. (San Francisco Chronicle) — Palm Desert Mayor Karina Quintanilla received death threats days after criticizing a local Republican-run store in a Facebook post. (The Desert Sun) — Carlsbad city officials are considering a ban on sleeping in vehicles following a U.S. Supreme Court decision in June that granted local governments more leeway to crack down on public camping. (San Diego Union-Tribune) PLAYBOOKERS PEOPLE MOVES — Marko Mijic has joined Sellers Dorsey as managing director of its California practice. He previously served as undersecretary at the California Health and Human Services Agency. BIRTHDAYS — Lauren Moore of WilmerHale … Nancy Scola BELATED B-DAY WISHES — (was Wednesday): campaign consultant William Berry … (was Monday): consultant Marva Diaz 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 Dustin Gardiner @dustingardiner Lara Korte @lara_korte   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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