Friday, August 2, 2024

The state legislative races you need to watch

Presented by Elected Officials to Protect America - Code Blue: Inside the Golden State political arena
Aug 02, 2024 View in browser
 
POLITICO California Playbook

By Lara Korte and Dustin Gardiner

Presented by Elected Officials to Protect America - Code Blue

Democratic Assemblymember Pilar Schiavo speaks at the Capitol in Sacramento, Calif.

Assemblymember Pilar Schiavo is among the Democrats facing a competitive race to keep their seat. | Rich Pedroncelli/AP Photo

THE BUZZ: POWER PLAYS — Democrats are all-but guaranteed to keep their supermajority in Sacramento next year.

The question is exactly how big that supermajority will be.

Leaders in the Assembly and Senate are prepared to go to battle this year to protect a handful of vulnerable Democrats and vacant seats that could flip to Republicans. The GOP, for its part, is fending off a few potential flips of its own while trying to chip away at Democrats’ overwhelming power in California.

Complicating the equation for Democrats is that their leadership is brand new to the game of protecting incumbents. This year will be the first test for Assembly Speaker Robert Rivas and Senate President pro Tem Mike McGuire. We’re also keeping an eye on what could be some interesting races to fill vacancies left by outgoing Democratic Assemblymember Brian Maienschein and Republican state Sen. Scott Wilk. 

Expect campaigning to pick up when session ends in August, but there’s already money pouring in for the top targets. The latest figures, reported this week, reflect cash raised as of June 30, and offer a better picture of the fights to come as we head into the thick of election year.

VULNERABLE DEMOCRATS:

Assemblymember Pilar Schiavo, Santa Clarita Democrat: This is the marquee race for Democrats this year. Schiavo won her seat in 2022 by just 522 votes after Democrats spent some serious cash to box out Republican incumbent Suzette Martinez Valladares. She’s high on the GOP’s target list this year, and is running against Patrick Gipson, a retired Los Angeles County sheriff’s deputy who came within 521 votes of Schiavo in the March primary.

Schiavo reports raising about $653,600 since the start of the year, bringing her total cash on hand to just over $1 million. Gipson has raised just over $166,800 in the same time period, and has $127,000 cash on hand.

Assemblymember Esmeralda Soria, Fresno Democrat: Soria for months has been far outraising her Republican opponent, former state tax auditor Joanna Garcia Rose, but that doesn’t put her in the clear. The GOP pick managed to win about 1,000 more votes than the incumbent in the March primary despite having only a fraction of her financial backing.

The latest fundraising figures show that pattern continuing, with Soria raising more than $944,000 in the first half of the year, with about $1.5 million in cash, compared to Garcia Rose’s modest haul of just $92,000 from the same period and $65,000 in cash.

State Sen. Josh Newman, Fullerton Democrat: After a bit of a candidate shuffle brought on by redistricting and the departure of state Sen. Dave Min, and a crowded primary race that saw a slew of outside spending, Newman is heading into a competitive general election matchup with former Republican state legislator Steven Choi, who lost his Assembly seat to Cottie Petrie-Norris in 2022.

Newman has so far raised more than $1.3 million this year, ending June with about $448,000 in cash compared to Choi, who reported $55,769 on hand.

VULNERABLE REPUBLICANS: 

Assemblymember Laurie Davies, Oceanside Republican: Democrats have a slight edge in voter registration in this district thanks to a large swath of San Diego County residents that are trending blue, and it’s one of their top targets to flip this year. Former San Clemente Mayor Chris Duncan lost to Davies by about 5 points last cycle, and is looking for a rematch this year.

Davies has raised over $362,000 since the start of the year, with many of her fellow Assembly Republicans maxing out to her campaign. She ended June with $714,608 in cash. Duncan is not far behind, due in no small part to the outpouring of support from the Assembly’s Democratic supermajority. He raised $821,453 in the first six months and ended with about $593,000 in cash.

Assemblymember Greg Wallis, Rancho Mirage Republican: Democrat Christy Holstege is back this year after losing to Wallis by a mere 85 votes in 2022.

The California Democratic Party has sent more than $272,000 to the Holstege campaign since December, state records show. As of June she had raised $733,571 since the start of the year and had $664,706 in cash. Wallis raised about $524,385 in the same time period thanks to help from fellow Republicans and about $6,000 from Netflix CEO Reed Hastings, normally a Democratic mega donor who’s also a staunch charter schools advocate.  

Assemblymember Josh Hoover, Folsom Republican: Democrats dropped some serious cash trying to protect Ken Cooley in 2022, only for Hoover to nab the seat by less than 1 percentage point. This cycle, the Republican is facing a challenge from Citrus Heights Councilmember Porsche Middleton. 

Middleton raised $278,249 with $177,950 cash on hand. Hoover goes into the general election with a comparatively heftier warchest of $653,135 having raised more than $433,000.

State Sen. Rosilicie Ochoa Bogh, Yucaipa Republican: Ochoa Bogh is facing a challenge from Palm Springs City Councilmember Lisa Middleton this year in her competitive, Republican-leaning district.

The incumbent ended June with $803,381 in cash after raising about $483,000 in the first half of the year. Middleton has about $226,000 on hand heading into November.

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? Out of state for personal travel. Lt. Gov. Eleni Kounalakis is in charge until he returns this weekend.

 

A message from Elected Officials to Protect America - Code Blue:

Californians are counting on legislators to protect communities from deadly fossil fuel pollution and hold the oil industry accountable. California legislators: pass the Make Polluters Pay Package to hold the fossil fuel industry accountable, protect tax dollars, and public health. Pass AB 1866: The Idle Well Cleanup Bill, AB 2716: Low Producing Well Accountability Act, and AB 3233:Local Environmental Choice and Safety Act. Learn more.

 
SILICON VALLEYLAND

The Nvidia logo is shown on a company building in Santa Clara, California.

Justice Department lawyers are investigating Nvidia’s acquisition of an Israeli AI start-up. | Jeff Chiu/AP

TRUST ISSUES — Feds have put one of California’s premier tech companies under scrutiny, POLITICO’s Josh Sisco scooped on Thursday.

Justice Department lawyers are investigating Nvidia’s acquisition of the relatively obscure Israeli AI start-up Run:ai on antitrust grounds, according to five people with direct knowledge of the matter, who were granted anonymity to discuss a confidential investigation. The companies announced the deal in late April without disclosing a price, though TechCrunch reported $700 million.

As Josh explains, Run:ai enables so-called virtualization of graphics processing units, or GPUs, the reason behind Nvidia’s nearly $3 trillion market value. Run:ai’s technology essentially allows its customers to do more with fewer chips, a highly valuable service as demand for the chips far outpacing supply.

Nvidia’s profits have exploded over the last few years as its chips, traditionally used for computer graphics, have been adapted for the heavy computational workloads of AI. The company is estimated to have as much as 90 percent of the market for high-end AI chips, which are often difficult to obtain, and the DOJ had already been looking into Nvidia’s business practices, as POLITICO reported in June. 

Both of the DOJ investigations into Nvidia are generally focused on the potential for the company to build a moat around its GPUs, the five people with knowledge of the matter said. Justice Department investigators have been asking questions about Nvidia’s sales practices including whether it conditions access to its chips on purchases of other products or commitments to not buy from competitors, some of the people said.

 

Live briefings, policy trackers, and procedural, industry, and people intelligence from POLITICO Pro Analysis gives you the insights you need to focus your policy strategy this election cycle. Secure your seat

 
 
CAMPAIGN YEAR

Former Los Angeles mayor Antonio Villaraigosa talks to reporters during a press conference.

Antonio Villaraigosa has left his position as a partner at a political affairs firm. | Godofredo A. Vásquez/AP

ANTONIO OUT — Antonio Villaraigosa, a 2026 candidate for governor, confirmed Thursday that he left his position as a partner at the political affairs firm Actum. An adviser for Villaraigosa told Playbook that the former Los Angeles mayor left the company before the July 23 launch of his gubernatorial run. Villaraigosa’s profile page had been wiped from Actum’s website in recent days.

Other heavy hitters at Actum, which has offices in Los Angeles, Sacramento, Washington and London, include former President Donald Trump’s chief of staff and cabinet member Mick Mulvaney, former Sen. Barbara Boxer of California and former California Assembly Speaker Fabian Núñez. Villaraigosa’s campaign also confirmed to Playbook that he will remain on the advisory board of crypto currency giant Coinbase. Villaraigosa announced that he’d raised more than $1.5 million in the first week of his campaign.

 

A message from Elected Officials to Protect America - Code Blue:

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CLIMATE AND ENERGY

ON FIRE — Gov. Gavin Newsom is making the best of his role as wildfire governor and showing off the billions he’s spent on Cal Fire. Both Republicans and Democrats have thoughts. Read more in yesterday’s California Climate.

Top Talkers

THAT WASN’T THE PLAN — Trump’s campaign had a plan to hit Vice President Kamala Harris on her record as a “liberal prosecutor” and perceived weaknesses on immigration — that was, until Trump questioned Harris’ Black identity and made other controversial statements this week at the National Association of Black Journalists convention. His remarks overshadowed other lines of attack against Harris, leaving the Trump campaign grasping for a new narrative, POLITICO’s Natalie Allison and Alex Isenstadt report.

KYRA WORTHY CASE — Investigators in court documents this week said San Francisco public safety nonprofit SF SAFE ignored red flags years before the arrest of former executive Kyra Worthy, the San Francisco Chronicle reports. Worthy was taken into custody Tuesday and charged with 34 felonies related to wage theft, embezzlement and misappropriation of public funds related to alleged misspending of public funds.

 

A message from Elected Officials to Protect America - Code Blue:

The fossil fuel industry is spending millions to undermine the Make Polluters Pay Legislative Package which seeks to protect communities and hold polluters accountable for the mess they made. Will California leaders take this opportunity to choose the fiscally responsible route, making polluters pay and protecting Californians from the health and climate harms of the oil industry? California legislators: pass the Make Polluters Pay Bill Package – AB 1866: The Idle Well Cleanup Bill, AB 2716: The Low Producing Well Accountability Act, and AB 3233: The Local Environmental Choice and Safety Act. These bills are supported by a diverse coalition of climate, public health, environmental justice, youth, and faith advocates. Learn more.

 
AROUND THE STATE

— San Francisco Mayor London Breed on Thursday directed city employees to offer homeless people bus tickets out of town before offering them shelter or other housing options. (San Francisco Chronicle)

— A California family that lost their home in the 2019 Paradise fire has lost a second home to the ongoing Park fire. (Los Angeles Times)

Sacramento city officials have been quietly preparing to increase homeless sweeps and citations for public camping with shorter notice times. (Sacramento Bee)

PLAYBOOKERS

BIRTHDAYS — Assembly budget consultant Mark Martin… California Community Colleges Vice Chancellor of Government Relations David O’Brien… Republican VP nominee JD Vance

BELATED B-DAY WISHES — (was Thursday): Newsom spokesperson Brandon Richards

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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Lara Korte @lara_korte

 

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