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Presented by Campaign for Tobacco-Free Kids: Jeremy B. White’s must-read briefing on politics and government in the Golden State | | | | |  | | By Jeremy B. White, Juhi Doshi, Chris Ramirez and Graph Massara | Presented by Campaign for Tobacco-Free Kids | THE BUZZ — HITTING WHERE IT HURTS: California officials want to make Russia pay … by barring California from paying Russia. Foreign policy may be the provinceof the federal government, but California has a multibillion dollar tool to wield against Russia’s invasion of Ukraine: massive state public pension funds. A bipartisan group of state lawmakers was first to demand the California Public Employees’ Retirement System and California State Teachers’ Retirement System pull their assets from Russia, following similar divestment pushes in other states. Now Gov. Gavin Newsom has thrown his executive weight behind the same cause, telling pension funds that California has a “moral imperative” as well as a fiduciary obligation to impose “an immediate and severe cost upon the Russian government.” The administration estimated that public employees’ retirement funds have invested more than $1.5 billion in Russia-linked products. Newsom gave the leadership of CalPERS, CalSTRS and the University of California regents ten days to recommend more ways to apply pressure to Russia. Sen. Dianne Feinstein backed up the governor, saying, “Russia’s war in Ukraine is unacceptable and California won’t reward such aggression.” California’s enormous pension funds have been a recurring target for policymakers wanting the state to put its money where its ideals are. The amount of money at stake, given the size of the workforces these funds are tied to, means mandates controlling what they invest in can have significant economic effects. State laws already compelled the funds to pull their money from coaland investments linked to Sudan and Iran . CalSTRS halted investments in private prisons during the Trump administration, although its board opposed unsuccessful legislation to enshrine that prohibition. Both funds have refused firearms and tobacco money for years, and in 2016 CalPERS resisteda proposal to overturn its tobacco ban. New legislation up for consideration this year would force the funds to entirely pull their money from fossil fuels. When the law doesn’t force their hands, portfolio managers have to balance moral stances with returns on investment. Both CalSTRS and CalPERS responded to lawmakers’ divestment demands on Monday by stressing the relatively small size of their Russia-linked holdings and saying they were still monitoring the Russia situation. BUENOS DÍAS, good Wednesday morning. The White House is expected today to reveal its plan for the next phase of Covid-19 — let’s see how closely it matches California’s pivot to the endemic era. Got a tip or story idea for California Playbook? Hit jwhite@politico.com or follow me on Twitter @jeremybwhite. QUOTE OF THE DAY: “We can hang people in the town square, but the most effective thing at deterring crime is certainty of arrest. But the police make arrests in less than 3 percent of reported auto burglaries. Not blaming the police: These are crimes that are hard to make an arrest in. Because of that, people don’t fear consequences. It has nothing to do with my policies.” Embattled San Francisco District Attorney Chesa Boudin makes his case to the NYTimes . TWEET OF THE DAY: SF Giants ace @LoganWebb1053 on MLB canceling games : “Yikes” BONUS TOTD: Official BLM account @Blklivesmatter, on the State of the Union: “POV: listening to Biden declare ‘the answer is not to defund the police, it’s to fund the police’” Featuring a very unenthused Rep. Maxine Waters (D-Calif.) WHERE’S GAVIN? Nothing official announced. | | | | A message from Campaign for Tobacco-Free Kids: Big Tobacco uses sweet candy flavors to hook kids on their dangerous products. Learn more. | | | |  | Top Talkers | | ETHICAL ISSUES — “Secret bounties can net consultants millions to influence California officials,” by the Sac Bee’s Sophia Bollag: “Ethics experts interviewed for this article say the story is troubling, in part because of the amount of money, but also because nobody knows how common the practice is.” UNDER INVESTIGATION — California State Bar probes Trump-connected attorney over 2020 election role , by POLITICO’s Jeremy B. White: The California State Bar revealed on Tuesday that it has been investigating whether attorney John Eastman violated the law or ethics rules in advising former President Donald Trump on how to contest the results of the 2020 election. — “ Sacramento church shooter was arrested for assaulting officer 5 days before killing daughters,” by the Sac Bee’s Sam Stanton and Rosalio Ahumada: “The 39-year-old man who shot his three daughters to death and killed a man inside a Sacramento church before killing himself was armed with an AR-15-style rifle, had been ordered by a judge to attend anger management courses and was accused of ‘mental instability’ by his estranged girlfriend.” — “S.F. school board approves layoff plan and bonuses for teachers,” by the SF Chronicle’s Jill Tucker: “The weighty financial decisions came amid a board in transition, with President Gabriela Lopez and board members Alison Collins and Faauuga Moliga recalled by voters in the recent special election.”
| | | | BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we’ve got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don’t miss out on this influential global community. Subscribe now. | | | | | | | CAMPAIGN MODE | | FIRST IN PLAYBOOK — WAGING A CAMPAIGN: A ballot push for an $18-and-up minimum wage is drawing some serious firepower. Wealthy benefactor Joe Sanberg is dropping $5 million into qualifying the ballot initiative, and the campaign is rolling out endorsements from AFSCME California and a quartet of California House Democrats: Reps. Jimmy Gomez, Ro Khanna, Eric Swalwell and Nanette Barragán. — “ Judge Rules David Campos Can’t Call Himself a ‘Civil Rights Attorney’ in State Assembly Runoff,” by the SF Standard’s Anna Tong: “[Rival Matt] Haney challenged the designation in a letter late last year to the California Secretary of State, arguing that the role of a DA’s chief of staff is to oversee operations and administration, not practice law.” — “Riverside County Sheriff Chad Bianco faces challenge from retired captain,” by The Press Enterprise’s Jeff Horseman: “ So far, no one else has publicly come forward to challenge Bianco, who is seeking re-election for the first time after becoming a polarizing figure for his actions and comments regarding COVID-19 and his past membership in a far-right militia group.” — “California solar group withdraws ballot initiatives, by POLITICO’s Colby Bermel: The Solar Rights Alliance quietly withdrew its two initiatives from the attorney general's office last Tuesday. TROUBLE WITHIN THE PARTY— “Progressives struggle for influence among California Democrats,” by CalMatters’ Alexei Koseff: “The momentum of their movement, which coincided with heightened liberal energy in resistance to then-President Donald Trump, appears to have crested.” IS THIS THE END? — “Feinstein now must decide whether to retire,” opines CalMatters’ Dan Walters: “The Senate’s oldest member at 88 and the state’s longest serving senator has clearly fallen out of favor with voters, even her fellow Democrats.” ENDORSEMENT ALERT — “Congresswoman Katie Porter Endorses Dr. Asif Mahmood In Race To Flip CA-40,” via the Mahmood campaign: “Rep. Katie Porter (D-Calif.) endorsed Dr. Asif Mahmood in his race to flip CA-40 and defeat Congresswoman Young Kim. Congresswoman Porter currently represents a large portion of the new CA-40.”
| | CALIFORNIA AND THE CAPITOL CORRIDOR | |
DRIER THAN EVER— “‘Moving toward extremes’: California drought outlook is bleak after dry start to 2022,” by the Sac Bee’s Michael McGough: “Despite mammoth snowstorms in the Sierra Nevada mountains during December, state water officials spoke with very little optimism about California’s snowpack and reservoir levels following a bone-dry January and underwhelming February.”
SCHOOLS DEMANDING SOLUTIONS — “Black students and staff harassed at Sacramento-area schools. What should districts do? ” by the Sac Bee’s Marcus D. Smith: “Parents and students want … an accounting for why the incidents keep happening and clear consequences for misconduct.” — “These wildfire survivors say FEMA did little to help those who lost homes ,” by the LA Times’ Alex Wigglesworth: “While the Federal Emergency Management Agency is often seen providing trailers and money to victims of hurricanes, tornadoes and floods, survivors of this California wildfire complain that the agency has had little to offer them when their homes were destroyed by flames.” RISING COSTS — “ What can be done to keep California’s utility bills from getting even higher?” by the San Diego Union Tribune’s Rob Nikolewski: “As rising power bills leave many Californians howling — with San Diego Gas & Electric customers paying the highest rates — the regulatory agency that approves what the state’s three big investor-owned utilities can charge opened a two-day workshop Monday to discuss what can be done to keep prices from climbing even higher.” — “Rising gas prices from Russia-Ukraine conflict will hit Angelenos who can least afford it,” by the LA Times’ Kenan Draughorne, Andrew J. Campa, and Marisa Gerber: “Even before last week, when Russia, one of the world’s top producers of petroleum and other crude oil, invaded neighboring Ukraine and set off Europe’s largest ground war in 75 years, gas prices had ballooned in reaction to pandemic supply-chain issues and inflation.” UNMASKING — “Santa Clara County to lift indoor mask mandate ,” by San Jose Spotlight’s Eli Wolfe: “As of tomorrow, Santa Clara County will be in alignment with the state’s requirements, which still mandate masks on public transit, in homeless shelters, health care and long-term care facilities and correctional institutions.” — “ CSU to launch investigation into Fresno State over handling of sexual harassment claims,” by the LA Times’ Robert J. Lopez, Colleen Shalby: “Records show that the settlement was made on behalf of the Cal State trustees. But former board members said they were not informed of the deal when they selected Castro to become chancellor after White retired at the end of 2020.”
| | | | A message from Campaign for Tobacco-Free Kids:   | | | | | BIDEN, HARRIS AND THE HILL | | — “They lost their partners before gay marriage was legal. Now LGBTQ elders may be able to access survivors benefits,” by the SF Chronicle’s Ryan Kost: “Many older LGBTQ people who stand to benefit likely never bothered to apply for benefits they never thought they’d receive.”
| | SILICON VALLEYLAND | | STOPPING SALES — “Apple halts product sales in Russia,” by CNBC’s Kif Leswing: “All Apple products on the company’s online Russian storefront are listed as “unavailable” for purchase or delivery in the country. Apple doesn’t operate any physical Apple stores in Russia.” ‘IT ARMY’ — “Bay Area tech army steps up for Ukraine,” by SF Examiner’s Jeff Elder: “The embattled country is enlisting a global tech army to fight Russian cyber attacks and propaganda — and even hack Russian websites. At the same time, while Bay Area tech workers in Ukraine are risking their lives, that country is pushing the Bay Area’s biggest tech companies to do more to counter Russia’s manipulation of social media.” — “ Elizabeth Holmes case: Bail tightened for Theranos fraudster as she awaits sentencing,” by the Mercury News’ Ethan Baron: “The federal court judge set to sentence convicted fraudster Elizabeth Holmes in September ordered Tuesday that she put up property worth $500,000 to help ensure she will not flee to avoid an expected multi-year prison sentence.”
| | MEDIA MATTERS | | — Sam Sanders is leaving NPR as host of “It's Been A Minute” to take some time off.
| | MIXTAPE | |
— “Experts ‘flabbergasted’ as Annie the falcon calmly returns to Berkeley’s Campanile,” by Berkleyside’s Gretchen Kell.
ESCAPING UKRAINE — “An Orange County couple and their newborn daughter escape Ukraine, one step at a time,” by the OC Register’s Roxana Kopetman. — “ Man who sued D.A. Boudin, claiming his rights as a crime victim were violated, pulls back lawsuit,” by SF Chronicle’s Megan Cassidy. PUTTING UP PROPERTY — “ Elizabeth Holmes case: Bail tightened for Theranos fraudster as she awaits sentencing,” by Mercury News’ Ethan Baron. | | | | SUBSCRIBE TO NATIONAL SECURITY DAILY : Keep up with the latest critical developments from Ukraine and across Europe in our daily newsletter, National Security Daily. The Russian invasion of Ukraine could disrupt the established world order and result in a refugee crisis, increased cyberattacks, rising energy costs and additional disruption to global supply chains. Go inside the top national security and foreign-policymaking shops for insight on the global threats faced by the U.S. and its allies and what actions world leaders are taking to address them. Subscribe today. | | | | | | | TRANSITIONS | | — Jackie Thu-Huong Wong will take over as executive director of First 5 California, the first woman of color to serve in that role. — Erika Symmonds joined the Solar Energy Industries Association as its vice president of equity and workforce development. She previously served as vice president of workforce development and service-learning at Oakland, Calif.-based nonprofit Grid Alternatives. — Megha Bhattacharya is now a White House press assistant. She previously was comms assistant for second gentleman Doug Emhoff. — Caitlin Conant is now VP of policy comms at the Walt Disney Company. She previously was political director for CBS News, and is a Marco Rubio and Rob Portman alum. — Isabel Sanchez is now senior policy adviser on immigration and appropriations for the Congressional Hispanic Caucus. She previously was a legislative assistant for Rep. Lucille Roybal-Allard (D-Calif.).
| | IN MEMORIAM | | — “Longtime lesbian CA legislative aide Anna Damiani dies,” by Bay Area Reporter’s Cynthia Laird.
| | BIRTHDAYS | | Rep. Ami Bera … Yuri Beckelman … Levi Russell
| | | | A message from Campaign for Tobacco-Free Kids: It’s time for Los Angeles lawmakers to step up and put our kids’ health above Big Tobacco’s profits. End the sale of all flavored tobacco products. Learn more. | | | 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 -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 Jesse Shapiro to find out how: jshapiro@politico.com.
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