POLITICO California Playbook PM: Tech searches for friends in Sacramento

Your afternoon must-read briefing on politics and government in the Golden State

Jun 01, 2023 View in browser   By Blake Jones and Jeremy B. White NEWS YOU CAN'T USE: Tech giants failed to block the advancement of legislation that would require them to pay news organizations for content in California. But don’t expect the bill to move to Gov. Gavin Newsom’s desk at fiber optic speed. Assembly Bill 886 has been up against staunch resistance from Google and Meta, which threatened to pull news stories from their platforms if it becomes law. And marquee tech companies and their trade associations — which spent millions on policy advocacy in Sacramento last session — are sure to deploy their standing fleets of lobbyists to stymie the bill as it snakes through the upper house. They’ve already been out in full force.  The bill “lines the pockets of hedge fund vultures and corporate conglomerates” and “forces platforms to link to and pay for misinformation and extremist right-wing news,” tech lobbyists wrote in an alert to Assembly members Wednesday. Meta and Google are fiercely lobbying against California legislation that would require them to pay news organizations for content. | AP Photo/Jeff Chiu The companies are likely hoping for allyship from Newsom, who has long-standing ties to the industry and could serve as a backstop should the bill reach his office. But a bipartisan bloc of legislators stands behind the legislation — and despite intense lobbying, it cleared the Assembly today with votes to spare. Some, including author and Democratic Assemblymember Buffy Wicks, frame it as a financial lifeline for print news organizations that have seen advertising revenue plummet and staff sizes slashed since the internet and social media became primary hosts for journalism. “These are companies that have made billions and billions and billions of dollars while our newsrooms are shutting down,” Wicks said on the Assembly floor. Other Republican supporters have jumped at the chance to exercise power over an industry they have criticized for years. “Nobody’s above the law,” Republican Assemblymember Bill Essayli said before the Assembly vote today, “not even Big Tech.” HAPPY THURSDAY AFTERNOON! Welcome to California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check of California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to bjones@politico.com or send a shout on Twitter. DMs are open!   PLAYBOOK TRIVIA NIGHT! Think you know a lot about politics? PROVE IT! Compete in California Playbook’s inaugural Trivia Night. Grab a drink, kick back, and put your knowledge on display! Join top political power players on Wednesday, June 21st at Fox & Goose Public House for a night of fun and competition that you won’t want to miss. REGISTER HERE.     WHAT YOU NEED TO KNOW TODAY GARVEY’S PITCH: A former Los Angeles Dodgers great could swing California’s marquee U.S. Senate race. Steve Garvey is considering getting into the contest to succeed Sen. Dianne Feinstein. That could reshape the field if he gets on the Republican base — and could lead to a Democrat whiffing on making the general election runoff. It’s unlikely a Republican wins the contest. But Garvey’s name recognition could help him consolidate support among Republicans, particularly Southern Californians who remember him fondly from his playing days. The more Republicans unite behind a single candidate, the more likely that GOPer places in the top two and advances beyond the primary. Democrats already have three formidable candidates in Reps. Adam Schiff, Katie Porter and Barbara Lee. There’s a good chance two of them make it to the general election. The only way that doesn’t happen is if Garvey — or another Republican — slides into one of the top spots. On The Beats SHOT ACROSS THE BOW: California Democrats this morning took their most aggressive swipe yet at book bans and content restrictions, warning school administrators that removing materials from their classrooms could prompt legal backlash. Newsom, Attorney General Rob Bonta and state Superintendent Tony Thurmond in a letter to district leaders said that shelving books could amount to “unlawful discrimination,” violating state and constitutional law. And they told districts that ban books to prepare for their decisions to be reviewed by Bonta’s office. It’s forceful action from the state officials, who’ve been trying over the past few weeks to short-circuit conservative campaigns to limit what students learn and read about race and sexual orientation — a fixture of the education agendas of Florida Gov. Ron DeSantis and other national Republicans. UNWOUND: After three pandemic years when no one was being kicked off public insurance, states are starting to send out letters to Medicaid enrollees that they may no longer qualify. California is in a better position than most states to keep people insured during this “great unwinding” of the public health emergency, thanks to a pre-pandemic law that lets the state’s commercial insurance marketplace, Covered California, do some consumers’ shopping for them. To keep the state’s uninsured rate stable, Jessica Altman, the executive director of Covered California, is playing offense. This week and next, the health insurance marketplace is sending letters to people who no longer qualify for Medi-Cal but who could qualify for commercial plans with significant financial assistance. A 2019 law lets Covered California and Medi-Cal share information, so when someone finds out they no longer qualify for Medi-Cal, they have the most affordable health plan already selected for them. — Rachel Bluth   DON’T MISS POLITICO’S HEALTH CARE SUMMIT: The Covid-19 pandemic helped spur innovation in health care, from the wide adoption of telemedicine, health apps and online pharmacies to mRNA vaccines. But what will the next health care innovations look like? Join POLITICO on Wednesday June 7 for our Health Care Summit to explore how tech and innovation are transforming care and the challenges ahead for access and delivery in the United States. REGISTER NOW.     AROUND CALIFORNIA — “If you live in California, your power bill will soon depend on your income,” by The Washington Post’s Shannon Osaka: A new state law will require its three investor-owned utilities to charge customers fees for electricity based not only on how much electricity they use, but also on how much money they make. Depending on the proposal the state ultimately adopts, Californians making more than $180,000 a year could end up paying an average of $500 more on their annual electricity bills, while the lowest-income residents would save around $300 per year. — “Are zero-emission vehicles making a dent in California's air pollution?” by KQED’s Pauline Bartolone: By the end of last year, the number of zero-emission vehicles Californians used in their everyday lives shot up to more than 1.1 million. And that’s not even counting gasoline hybrid cars. — “California tenant eviction protection bill advances, but watered down amid landlord opposition,” by The Sacramento Bee’s Lindsey Holden: [State Sen. María Elena] Durazo’s original bill would have lowered the maximum rent increase to 5% and created more limits around no-fault evictions. Property owners or their family members who moved into units would have to occupy them within 90 days and live there for at least three years. MIXTAPE — “Grazing goats prevent California wildfires. New salary rules may jeopardize the industry,” by the Los Angeles Times’ Grace Toohey. — “Dramatic weather swings are headed to California. Here's what to expect in June,” by the San Francisco Chronicle's Gerry Diaz.   Follow us on Twitter Katy Murphy @katymurphy POLITICO California @politicoca   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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