Fast food law could be flipped in 2024

From: POLITICO California Playbook - Thursday Sep 08,2022 01:16 pm

Sep 08, 2022

By Jeremy B. White, Lara Korte and Sakura Cannestra

Presented by Clean Air California

THE BUZZ: If at first you don’t succeed at blocking a bill in the Legislature, then try, try again – if California’s initiative system lets you. That’s assuming you have sufficiently deep pockets.

Less than 48 hours after Gov. Gavin Newsom signed landmark legislation regulating fast food labor, a group led by the International Franchise Association and the National Restaurant Association filed a referendum seeking to overturn the law. They needn’t win this battle to reap some benefits. Qualifying a referendum suspends the law in question until voters can weigh in.

That would mean delaying minimum wage increases that can hit $22 an hour by the end of next year, should the law take effect as planned and the gestating Fast Food Council be born. Those savings likely more than cover the millions of dollars needed to collect the signatures for a ballot initiative. Some of the multinational chains that battled this bill have the wherewithal. McDonald’s alone reported $5.7 billion in earnings in the second quarter this year.

Industry after industry has run the numbers and embraced a similar tactic. In 2016, the plastic sector did it after California banned single-use plastic bags; in 2020, the bail industry wrote big checks to continue existing; the tobacco industry’s effort to neutralize a flavored tobacco ban will go before voters in a couple of months. In each case, businesses have spent millions to save money.

California’s sweeping economic laws inevitably echo nationally, given the state’s size: franchise groups warned AB 257 would upend a national industry and crack the door to mass unionization. Labor supporters were counting on it. But the political responses also reverberate. Uber, Lyft and other app-summoned gig companies’ 2020 victory over reclassification cost more than $200 million, but it dramatically changed their prospects both in California and in other capitals considering new labor standards.

Now California is poised to again host a battle over working conditions in an industry where labor has sought deeper inroads. The fast food law’s defenders are already emphasizing the stakes, with Rev. William Barber telling a press call yesterday of “a state battle that has national and international implications.” SEIU International President Mary Kay Henry said labor was ready. “Whether the industry prevails in delaying or not, we expect to win with the voters,” she said.

BUENOS DÍAS, good Thursday morning. U.S. Transportation Secretary Pete Buttigieg is continuing his California swing today. And a big shoutout to Sacramento Republic FC, who lost last night in a hard-fought U.S. Open Cup final. They overcame the odds — and multiple Major League Soccer teams — to make it to the top game, punching above their weight like Sacramento’s coffee scene.

Got a tip or story idea for California Playbook? Hit us up: jwhite@politico.com and lkorte@politico.com or follow us on Twitter @JeremyBWhite and @Lara_Korte.

QUOTE OF THE DAY: “It’s not going to stop, and I think that’s really, really important for the governor to consider.” California Labor Federation chief Lorena Gonzalez on farmworker unionization bills.

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WHERE’S GAVIN? Nothing official announced.

A message from Clean Air California:

California has the worst air quality in the country, with serious consequences for our health. As climate change increases the number of catastrophic wildfires, the threat is even worse, polluting our air with cancer-causing substances and particulate pollution that aggravate existing health problems and increase the risk of asthma, heart attacks and strokes. Prop 30 attacks the top sources of air pollution — wildfires and vehicle emissions, ensuring Californians have clean air to breathe.

TOP TALKERS

FARMWORKER FEUD — Gavin Newsom encounters an unexpected antagonist: Joe Biden, by POLITICO’s Alexander Nieves: Biden delivered an indirect but embarrassingly public rebuke for the ambitious governor by calling for passage of the bill, which would make it easier for farmworkers to unionize, as Newsom signaled he may veto the legislation for a second time … The governor is privately seething over the Biden endorsement, said five people with knowledge of the governor’s thinking who spoke on condition of anonymity to disclose internal discussions.

— “ Phone call led to California deputy’s surrender in slayings,” by the Associated Press’ Stefanie Dazio and Olga R. Rodriguez: “[Sheriff’s deputy Devin] Williams [Jr.], 24, fled Northern California after he allegedly barged into the couple’s home and shot them with his service weapon while their child and three other people were inside.”

POWER DOWN — “ California heat wave: Several Bay Area cities needlessly cut power to thousands of homes,” by the San Francisco Chronicle’s Jessica Flores and Claire Hao: “At least three Bay Area cities initiated rotating outages Tuesday night — Alameda, Healdsburg and Palo Alto. Each is a member of the Northern California Power Agency, or NCPA, a not-for-profit joint powers authority.”

CAMPAIGN MODE

— “Campaign to recall Sacramento Councilwoman Katie Valenzuela fails to hit deadline,” by the Sacramento Bee’s Theresa Clift: “The recall group often criticizes Valenzuela — a self-proclaimed Democratic socialist and the council’s most liberal member — over homeless encampments and her support for reducing police funding.”

— “Judge rules against Leanna Louie, keeps her off ballot,” by Mission Local’s Joe Eskenazi: “It was that kind of day. And, in the subsequent ruling the judge released today, it showed: Ulmer rejected both Team Louie’s procedural arguments — that the Department of Elections did not have the authority to unilaterally strike her from the ballot — and their substantive arguments — that, contrary to the City Attorney’s findings, Louie did establish legal domicile in District 4 by the key date of May 3.”

A WOMEN RULE CONVERSATION ON LEADING FROM THE GROUND UP: Join POLITICO’s Women Rule on Sept. 15 for conversations focused on creating and leading sustainable, healthy and inclusive communities. The program will feature a Member Exchange panel followed by a keynote discussion exploring the most pressing issues facing women in their communities and women in leadership roles who are best positioned to solve these problems. REGISTER HERE.

CALIFORNIA AND THE CAPITOL CORRIDOR

— “Deadly Mill Fire possibly sparked by hot ash from power facility in Weed, company says,” by the Sacramento Bee’s Ryan Sabalow, Jason Pohl and Dale Kasler: “The company has a wood-fired “cogeneration power” plant at its Weed mill that produces electricity. Leftover ash from the power plant was stored in a concrete bin inside a giant wooden warehouse known as Shed 17 on Roseburg’s property.”

— “California fires killing people before they can escape their homes, making seconds count ,” by the Los Angeles Times’ Hayley Smith and Jonah Valdez: “‘What we’ve seen almost over the last 10 years now is a huge change in the ways fires have been burning throughout California,’ said Jon Heggie, a battalion chief with the California Department of Forestry and Fire Protection.”

THE THEN… — “ California wanted to end homeless shelters. Instead, COVID reinvented them,” by the San Francisco Chronicle’s Lauren Hepler, Raheem Hosseini and Kevin Fagan: “Now, two-and-a-half years into a pandemic that upended the housing market, inflamed income inequality and swelled the ranks of people on the street, the state that Newsom governs and the city that he used to lead are reconsidering their relationship to shelters in myriad ways.”

…AND THE NOW — “ Homeless population has nearly doubled since 2019 in this Contra Costa County city,” by the East Bay Times’ Katie Lauer: “Contra Costa County saw a bigger jump than any of the four other core Bay Area counties — 35% higher than 2019 — after counting 3,093 unhoused people this year.”

IT’S IN THE WATERS — “ California approves microplastics testing of drinking water sources,” by CalMatters’ Rachel Becker: “After years of research involving more than two-dozen laboratories, the State Water Resources Control Board unanimously approved a policy handbook for testing water supplies for microplastics over four years.”

— “Column: California aims to shut up bullies and other bad actors so democracy can thrive,” opines the Los Angeles Times’ Mark Z. Barabak: “But the level of animosity, violent threats and fly-off-the-handle behavior has hit remarkable heights during the COVID-19 pandemic, startling even longtime observers like Graham Knaus, head of the California State Assn. of Counties. He’s spent nearly a quarter-century involved in local government.”

A message from Clean Air California:

SILICON VALLEYLAND

— “Google’s ‘News Showcase’ Stalls in U.S. as Media Outlets Balk at Terms,” by the Wall Street Journal’s Alexandra Bruell, Keach Hagey and Miles Kruppa: “A number of factors have caused delays in the negotiations with U.S. media outlets. Some publishers feel Google isn’t paying enough and are objecting to certain contractual terms, including a provision that would limit their right to get more money from the tech company in other ways, several publishing executives said.”

SNAP BACK — “This Is Snap’s Turnaround Plan ,” by the Verge’s Alex Heath: “In an internal memo sent to employees on September 6th and obtained by The Verge, Spiegel said the company aims to grow Snapchat’s user base by 30 percent to 450 million by the end of next year, and that it aims to increase revenue to $6 billion in 2023.”

MEDIA MATTERS

— “Police arrest Vegas-area elected official in reporter death,” by the Associated Press’ Ken Ritter.

INTRODUCING POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don’t miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY.

MIXTAPE

WHERE TO GO WHEN — “Evacuation Terms Can Be Confusing. Here’s What They Mean,” by LAist’s Caitlin Hernández.

— “Not cool! Gavin Newsom slammed for AC ‘double standard’ amid heatwave,” by the New York Post’s Natalie O'Neill and Marjorie Hernandez.

BURNING AIR — “ Unhealthy air quality forecast for Sacramento region as record heat hits and fires blaze,” by the Sacramento Bee’s Brianna Taylor.

— “ Sacramento-area schools opened with hundreds of vacancies. Where did the teachers go?” by the Sacramento Bee’s Sawsan Morrar.

BIG TEN PROBLEMS — “USC, UCLA moving to Big Ten creates a big problem no one is talking about ,” opines the San Francisco Chronicle’s Ann Killion.

— “As water levels drop in California’s Lake Isabella, a Wild West ghost town re-emerges,” by SFGate’s Andrew Pridgen.

BIRTHDAYS

Your Playbook co-author Jeremy B. White … Alexis Marks Mosher of Apple … former Defense Secretary Jim Mattis

A message from Clean Air California:

California is on the front lines of climate change, witnessing blistering heat waves, prolonged droughts and catastrophic wildfires. Three of the worst wildfire years on record in California occurred in the last four years. Climate scientists project the problem will get considerably worse.

Wildfires don’t just present a threat to homes, lives and our economy — they ruin air quality throughout the state for months at a time. This poses a serious hazard to the health of more than 38 million Californians, especially children, pregnant women and seniors.

That’s why environmental groups, state firefighters, public health groups, consumer advocates and climate experts are supporting Prop 30 — the Clean Air Act. Prop 30 reduces the top two sources of climate and air pollution, vehicle emissions and wildfires, so Californians have clean, healthy air to breathe. Learn more at www.Yeson30.org.

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.

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