UC versus the White House

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

Jan 24, 2024 View in browser   By Blake Jones Getty Images BORDER WALL: The University of California set out to help young people with no legal immigration status by allowing them to hold on-campus jobs. Eight months later, the effort appears to be in trouble after opposition emerged from an unexpected place: the Biden administration. Department of Homeland Security officials have quietly pressed UC to back off, warning that hiring undocumented people would violate a 1986 federal immigration law, four UC officials told POLITICO. In a series of calls, DHS warned that the university could face administrative action or a lawsuit — an awkward look for President Joe Biden in an election year. The behind-the-scenes legal debate is a reminder that even such a powerful institution as the UC Board of Regents faces limits on what it can achieve in the immigration sphere. That’s a timely reminder as the possibility looms that Donald Trump could return to power, and resume efforts to make life harder for those in the country without legal status. Trump, as you may recall, sought to end Deferred Action for Childhood Arrivals, or DACA, which is how the UC got involved with the issue that is expected to come up for discussion Thursday when the regents meet in San Francisco. After some back-and-forth in the courts, a federal judge froze the program and thousands of people brought to the country as children by undocumented parents could no longer apply for temporary status allowing them to work. UC wanted to be able to help those who could no longer work under DACA. The effort it has been considering could help around 4,000 students afford rent and complete internships and residencies that are sometimes required to graduate. UC President Michael V. Drake and university officials who spoke with POLITICO have grown increasingly skeptical of the plans over the last few months. Still, some regents wish to move forward. “I just want to do the right thing,” said Regent José Hernández, a former astronaut who supports the measure. “It’s about making sure that all students have the same type of experiential learning opportunities at our UC campuses,” he added. Members of a working group dedicated to the issue have considered alternatives, including paid fellowships for the students. But there’s been no public indication of where the majority of the board is leaning at this point. IT’S WEDNESDAY AFTERNOON. This is 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 sgtaylor@politico.com or send a shout on X. DMs are open. WHAT YOU NEED TO KNOW TODAY California Assembly Speaker Robert Rivas, D-Hollister | AP READING RIVAS: Assembly Speaker Robert Rivas was characteristically circumspect as he was asked today about his legislative priorities. The speaker was interviewed by Tani Cantil-Sakauye, the former chief justice of the state Supreme Court and president of the Public Policy Institute of California, at a Sacramento event. Rivas didn’t provide much detail — pledging only to work with his 62-member caucus and “stick to the basics of what I’ve always focused on” in public policy. Some highlights: On the budget: The speaker gave no indication of precisely how he believes the state should close a $38 billion budget deficit. But he acknowledged the precariousness of the situation. "These are going to be difficult times,” he told Cantil-Sakauye. “And certainly the highest priority when we look at this state budget deficit is it's going to underpin everything we get done this year. It's going to impact everything we do." Public safety: The speaker says it’s his top priority, though the only specific crime he discussed was retail theft. He pointed to the Assembly’s new retail theft subcommittee, which had its first meeting last month. “The highest priority is for me to ensure that residents who live in this state, who work in this state, that they can feel safe in their communities.” Housing: Rivas called this a top priority as well and said the Legislature has to be “relentless” about trying to find ways to bring down the cost of housing. Again, no details — but an acknowledgement of the extent of the challenge. “What’s difficult about this housing situation is a bill that’s introduced that could be helpful for San Francisco may not be good for Bakersfield and may not be good for Fresno.” Climate: Look no further than the devastation this week in San Diego, where a winter storm dropped a record amount of daily rain, for why this is also a priority, the speaker said. “When it comes to climate it’s impacting not only the communities across our state, but it’s impacting our pocketbooks,” Rivas said. Governor’s race: He’s staying out of it, for now. Rivas said he has “a lot” of friends already in the race and it’s still early. “I think I still have a few more friends who will make the decision here in the months to come,” he said. — Sarah Grace Taylor ON THE BEATS Psilocybin mushrooms. | Getty Images SHROOM BILL TRIPS — It’s a not-so-euphoric day for fans of magic mushrooms and other psychedelic substances. The California Secretary of State says backers of a proposed initiative to decriminalize psilocybin mushrooms for people 21 and over failed to collect enough signatures to qualify for the ballot. It’s not much of a surprise given that the effort didn’t raise enough money to hire signature-gatherers. This is not the first time psilocybin has decomposed before reaching the ballot. The statute’s proponent, Ryan Munevar of Decriminalize California, came up short on signatures in both 2022 and 2020. Newsom vetoed a bill that would have decriminalized psilocybin possession in October, citing a need for further research into its impacts and dosing. — Ariel Gans CALL YOUR AGENT: Another insurance company is retreating from California. The Hartford Financial Services Group says it will stop offering new homeowners policies starting Feb. 1. In a statement, the company noted the “unique challenges” of the insurance environment in the state. The company is a relatively small player in California — less than 1 percent of the homeowners insurance market in the state – but it’s still notable. Seven of the top 12 insurance companies in the state have either paused or restricted new policies since 2019 amid industry concerns about losses from fires and other natural disasters and restrictions on increasing rates. Insurance Commissioner Ricardo Lara, who happened to be testifying today before the Senate Insurance Committee, announced a plan last year to allow insurers to increase rates in exchange for promising they’ll keep doing business here. He told the committee he’s still focusing on getting more companies into the market. “We need to focus on getting insurance companies back to writing new business in California and to a point where they can be competing for California's business,” he said. — Ben Fox UBER HIRES — Ride-hailing giant Uber is wasting no time putting its $30 million investment in California politics to work. The same day POLITICO reported the politically divisive tech giant’s Sacramento money bomb, Uber’s independent expenditure committee — which can raise and spend unlimited sums — reported showering nearly $700,000 on a pair of Democrats, Sen. Josh Newman and Assembly member Lori Wilson. That’s not all. The company’s filings also show Uber has cut checks to some prominent California politicos with ties to Newsom. That includes the governor’s former chief of staff, Jim DeBoo; his pollster, David Binder; and his campaign firm (and that of many California Democrats), BearStar Strategies, whose earlier incarnation got $185,000 from Uber as it battled in Sacramento to keep its workforce composed of independent contractors. DeBoo noted in a statement that Uber has donated to Newsom’s behavioral health bond — a campaign that has also enlisted DeBoo’s services — saying he was pleased to see “an iconic homegrown company doubling down on California” and “deepening its commitment to keeping California the innovation capital of the world.” — Jeremy B. White WHAT WE'RE READING TODAY CONCEALED CARRY: Shasta County’s Board of Supervisors have voted to allow concealed weapons in government buildings, in defiance of a state law and apparently a local policy that prohibits county employees from having guns at work. (Los Angeles Times) MORE MAGIC: Disneyland has presented the city of Anaheim with plans to spend nearly $2 billion over the next decade, including on possible attractions based on "Black Panther," "Coco," "Frozen" and "Zootopia." (The Orange County Register) WEST SAC A’s: To the delight of Sacramento Mayor Darrell Steinberg, the Oakland Athletics have considered temporarily playing in West Sacramento’s Sutter Health Park, home to the Triple-A River Cats, when their Oakland lease expires next year. (San Francisco Chronicle)   Follow us on Twitter 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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