Programming note: We’ll be off next Monday for Labor Day but will be back in your inboxes on Tuesday morning. To keep following our reporting on the end of state lawmakers’ session, read our continued California coverage here and subscribe to POLITICO Pro. THE BUZZ: There’s no election yet, but Fiona Ma is already notching a win. That’s because a former employee who accused the state treasurer of sexual harassment is today set to drop the complaint against her and settle other claims, ending a three-year civil court case that had become a political albatross for Ma as she eyes a 2026 bid for lieutenant governor. “This is a complete victory for the treasurer,” Ma’s attorney Ognian Gavrilov said in a statement. A lawyer for the former employee said in a statement that she is “pleased to have reached an amicable resolution of her case, and is looking forward to moving on with her life.” Ma, in an interview with Playbook, called the case a distraction and a “cloud over [her] head” for the last several years. The treasurer won reelection in 2022 in spite of the allegations — which did cost her some editorial page endorsements that year — but a drawn-out case had the potential to mar her campaign as she entered a crowded field for the second-top job in the state. The plaintiff’s expected move comes just weeks before a scheduled trial was set to begin. “I think people who know me, they know my reputation, they've been following me, they know that I'm serious about my job,” Ma said. “And they also knew I vowed to have my day in court for a jury trial to clear my name.” We’re still 18 months away from the filing deadline for the next lieutenant governor race, but already the campaigns are starting to take shape. Ma, who got started in the meat grinder that is San Francisco city politics, served in the state Assembly for nearly a decade before becoming the chief banker for the world’s fifth-largest economy. California’s lieutenant governors have little power, but the position is often seen as a stepping stone to higher office. Gov. Gavin Newsom held the job for eight years before his election to the governor’s office, and current Lt. Gov. Eleni Kounalakis is a frontrunner in the already competitive race to succeed him in 2026. Los Angeles-area state Sen. Steve Bradford has also declared his candidacy for LG. The termed-out Democrat has long been an outspoken critic of the criminal justice system, and this year has been a leading champion of reparations bills in the Capitol. Sausalito City Councilmember Janelle Kellman is also running, along with former Stockton Mayor Michael Tubbs, who is hoping to make a political comeback with a set of progressive priorities. There’s no public polling on the candidates yet, but Ma has far and away raised the most money — hauling enough to put her warchest at $4 million so far this year. GOOD MORNING. Happy Friday. 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 Oakland to celebrate the launch of a first-in-the-nation hydrogen hub. He will be accompanied by Energy Secretary Jennifer Granholm and Sen. Alex Padilla.
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