The other bills keeping lawmakers up at night

Politico

3 days ago

DRIVING THE DAY: Gavin Newsom and Democratic lawmakers today in Los Angeles rallied behind their campaign for a ballot measure asking voters to allow political gerrymandering to counter a Donald Trump-led GOP effort in Texas. Lawmakers are expected to approve a package containing the initiative next week. More on that below.
NEGOTIATING TACTICS: Even as redistricting consumes Sacramento, state lawmakers have been working behind the scenes to push their other big bills through the final weeks of session.
Lawmakers return Monday after using the four-week break to negotiate with their colleagues, lobbyists and Gov. Gavin Newsom's office. Legislation around ICE agents' use of masks, rideshare unionizing, antisemitism in schools, cap and trade and affordable housing funding remains in play.
Here are the latest developments on legislation that saw a good deal of action during lawmakers' time away.
Cap and trade: Before the redistricting push, extending the state's carbon auction system was poised to dominate the end of the session. And it's still one of the heaviest political lifts on the Legislature's docket.
Business interests such as CalChamber that once opposed creating a system in which emitters can purchase and trade a capped number of carbon credits are now backing a 'clean' reauthorization — in which the system would continue functioning as it does now. But environmental groups are lobbying for changes including changing how auction proceeds are spent, eliminating free allowances that keep major polluters' costs down and putting emissions caps on individual facilities'.
The slow pace of negotiations — the Assembly and Senate aren't yet on the same page with weeks to go — has fueled speculation that the program may not be renewed until next year. But talks are in for a serious jolt Wednesday, the date of the state's next carbon auction. With the cap-and-trade system still set to expire in 2030, emitters have been bidding less on carbon credits, leaving state lawmakers with less revenue to put toward climate and transit programs. The pain of dwindling revenue could speed discussions along as California faces the prospect of multi-billion dollar deficits in the coming years.
Housing bucks: As we reported earlier this week, Assemblymember Buffy Wicks' $10 billion housing bond hasn't made much progress in the Senate after advancing from the Assembly.
Wicks told Playbook she's having 'ongoing conversations with a lot of different folks' about the measure, which would go before voters in 2026.
The assemblymember said she's still negotiating the final dollar figure and where the money will go, although there's 'widespread support' for asking voters to set aside most of the funding for multifamily housing, especially subsidized units for low-income Californians.
Masking up: Proponents of state Sen. Scott Wiener's proposal to ban the use of identity-concealing masks by ICE and other law enforcement agencies are still trying to soften opposition from powerful state and local police and sheriffs' groups.
Wiener said they've 'tried to constructively engage' on the legislation, although he's not sure whether he can get the law enforcement lobby to neutral 'while still producing a strong bill that puts a stop to extreme masking.'
The senator needs the groups to temper their opposition if he wants to win over skeptical moderate Democrats and secure the two-thirds vote required to put the legislation in place right away. He can also try to pass the bill by a simple majority vote, though it wouldn't take effect until January.
'If we can get a two-thirds vote with a strong bill, that's absolutely the path we'll take,' Wiener said. 'If getting a two-thirds vote means we damage the bill, then I would rather have a strong bill take effect Jan. 1, than a weakened bill take effect immediately.'
The bill is part of a larger slate of immigration legislation lawmakers hoped to take up quickly after the recess, although the redistricting package will likely cause some delays.
Refineries: Newsom's proposal to increase California's crude extraction made the rounds during recess and is gaining traction with lawmakers scared of a spike in gas prices if they don't avoid more refinery closures. Even state Sen. Henry Stern, a climate hawk, has said more drilling in Kern County is necessary to stabilize in-state fuel supply. But environmentalists are bristling at Newsom's 'drill one new well, plug two old ones' proposal, which they say could open up drilling statewide. The oil and gas industry, meanwhile, isn't too fond of some of the other measures in the draft legislation, which would ban fracking and increase safety oversight related to offshore drilling.
Wildfire fund: Newsom has also proposed reupping the state's wildfire liability fund, meant to prevent utilities from going bankrupt when their equipment sparks wildfires, with a $9 billion extension of a surcharge on ratepayer bills (and $9 billion from shareholders). There's a sense of urgency: Southern California Edison alone could drain the fund with its potential liability from the Eaton Fire, leaving nothing to cover any new utility-sparked wildfires that emerge during the upcoming months, which are typically the most dangerous for wildfires. The proposal is a bitter political pill, however, during a year supposed to deliver on affordability.
Ride-hailing benefits: Labor leaders backing Wicks' and Assemblymember Marc Berman's bid to guarantee Uber and Lyft drivers can organize for better pay and benefits have yet to find common ground with the ride-hailing companies.
SEIU and labor allies want to keep existing language that would require the companies to recognize bargaining groups formed by drivers (who are classified as 'independent contractors' thanks to Prop 22, an industry-funded ballot measure voters approved in 2020). Uber and Lyft are open to benefits packages for drivers, but they're fiercely opposed to full-fledged organizing rights, which they see as a clear attempt at circumventing Prop 22.
The two sides met for talks over recess, three people familiar with the conversations told Playbook. An agreement that provides drivers with some benefits isn't out of the question yet, though there aren't any clear signs a deal is imminent.
'Until drivers have a union, they will not have a seat at the table,' SEIU Executive Director Tia Orr told Playbook.
Antisemitism debate: Senate President Pro Tem Mike McGuire has gotten deeply involved in trying to save a proposal aiming to address antisemitism in schools.
The bill hit an impasse heading into the recess, with legislative leadership agreeing to delay a measure that would penalize schools that create antisemitic learning environments and restrict what they teach about the Israel-Gaza conflict.
The proposal faces fierce opposition from the California Teachers Association, school administrators and progressive groups that claim it is overly punitive, censors criticism of Israel and creates standards that do not exist for other active conflicts.
But it is the Legislative Jewish Caucus' only priority bill this year, and McGuire pledged to pass it before the end of session. Negotiations are continuing between the teachers' union, legislative ethnic caucuses and Jewish advocates as proponents try to address broad concerns that include complaint procedures and how antisemitism is defined.
Dueling charter bills: Lawmakers backing competing measures aimed at increasing oversight of non-traditional charter schools are continuing to hash out a compromise, meeting regularly over the recess. Assembly Education Chair Al Muratsuchi's union-backed AB 84 seeks sweeping regulations on non-classroom charters, but was pared down before the break as charter schools pushed state Sen. Angelique Ashby's SB 414, which would implement fewer restrictions.
Charter school advocates have been lobbying lawmakers over recess to chip away at Muratsuchi's broad proposal, specifically around an effort to require credentialed employees to approve funding for enrichment activities.
The bill currently calls for increased auditing and financial reporting requirements and would create a new Office of the Education Inspector General. Ashby said in a committee hearing that she would reject a final measure that is 'so punitive that all charter schools take a haircut.'
— with help from Eric He, Emily Schultheis, Tyler Katzenberger, Blake Jones, Camille von Kaenel and Alex Nieves
IT'S THURSDAY AFTERNOON. This is California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check on California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to [e-mail].
WHAT YOU NEED TO KNOW TODAY
OFF AND RUNNING: California's leading politicians and its most prominent labor unions put on a show of unity today as they gathered to launch a campaign for a new House map, our Jeremy B. White and Emily Schultheis report.
'We can't stand back and watch this democracy disappear, district by district, all across this country,' Newsom said. 'We need to stand up. Not just California: Other states need to stand up.'
The themes of that likely special election came into focus today: Rally attendees spoke at a podium emblazoned with an 'Election Rigging Response Act' sign and held 'defend democracy' placards. Details also emerged about the campaign's backers. A newly unveiled campaign website lists House Democrats' principal super PAC and Democratic megadonor Bill Bloomfield as initial funders.
But victory at the ballot box is far from assured.
Newsom's pollster has circulated an internal survey showing the measure starting with only a narrow majority, and polling from POLITICO-Citrin Center-Possibility Lab found voters overwhelmingly support keeping the state's independent redistricting commission. (The nascent ballot measure would leave the commission in place but effectively override its work by creating new maps to boost Democrats through 2030.)
CA V. TRUMP
OF ALL PLACES: Border Patrol agents turned up this morning outside the downtown Los Angeles venue where Newsom and other Democrats were rallying behind the redistricting campaign and denouncing Trump.
'Right outside at this exact moment are dozens and dozens of ICE agents … people are scared,' Newsom said during the event. 'People are fearful.'
A video taken by witnesses shows bystanders yelling at masked agents in military fatigues standing inside a white unmarked van.
Newsom's press office shared an X post with a video showing dozens of Border Patrol agents walking around on the street alongside Sector Cmdr. Gregory Bovino, who has taken a leading role in the Los Angeles immigration crackdown.
'BORDER PATROL HAS SHOWED UP AT OUR BIG BEAUTIFUL PRESS CONFERENCE! WE WILL NOT BE INTIMIDATED!' the post said, continuing Newsom's mocking use of Trump's trademark all-caps missives.
Bovino told NBC LA that agents were conducting roving patrols and that they had taken one person into custody.
The incident drew a quick response from Los Angeles Mayor Karen Bass, who showed up to the scene and answered questions from reporters.
'There's no way this was a coincidence,' she said. 'This was widely publicized that the governor and many of our other elected officials were having a press conference here to talk about redistricting, and they decided they were going to come and thumb their nose in front of the governor's face.'
— with help from Melanie and Jeremy
WHAT WE'RE READING TODAY
— Some local officials and advocates are concerned that Trump, who has appointed himself head of an Olympics task force, will take action against homeless people when Los Angeles hosts the event in 2028. (Los Angeles Times)
— The Trump administration's tariff on Indian imports has led to increased prices at restaurants and grocery stores in the Bay Area. (San Francisco Chronicle)
AROUND THE STATE
— The Vista City Council voted to spend $3.5 million to increase annual maintenance of Wave Waterpark through 2035. (San Diego Union-Tribune)
— Increased surveillance in the majority Latino neighborhood of Oak View in Huntington Beach has left residents with mixed feelings behind the city's motives. (LAist)
— Some Palo Alto residents are pushing back on a plan to replace a former restaurant with an apartment building. (The Mercury News)
— compiled by Juliann Ventura