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Nearly two years after California voters approved a ballot measure to exempt gig-economy giants including Uber, Lyft, Instacart and DoorDash from a controversial state labor law, the political ripple effects of Proposition 22 are still reverberating across the Golden State — and could rear up in this year’s election.
First up: Instacart. Political observers this week noticed that Instacart, which as of last month was valued at $24 billion, had reached a tentative agreement with Gov. Gavin Newsom’s Office of Business and Economic Development for a $21 million California Competes Tax Credit, which is available to businesses that want to move to or stay and grow in the Golden State.
But the proposed deal didn’t seem to sit well with Lorena Gonzalez, who is incoming leader of the California Labor Federation and as a state Assemblymember authored Assembly Bill 5, the highly contentious law that made it harder for companies to classify workers as independent contractors and required them to offer more benefits.
Gig-economy companies poured nearly $206 million into Prop. 22 to exempt themselves from AB 5 — and saw their valuations soar by $10 billion the day after voters approved it. (However, there’s an ongoing legal battle over Prop. 22’s constitutionality.)
Meanwhile, Lyft has plowed more than $8 million into qualifying a measure for the November ballot that would hike taxes on Californians earning more than $2 million a year, the San Francisco Chronicle reports. Under the proposed initiative — also backed by various labor and environmental groups — the money would be used for funding rebates and other incentives for buying electric cars (45%), developing electric-vehicle infrastructure such as charging stations (35%), and preventing and suppressing wildfires (20%).
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The coronavirus bottom line: As of Monday, California had 8,529,333 confirmed cases (+0.2% from previous day) and 88,748 deaths (+0.2% from previous day), according to state data now updated just twice a week on Tuesdays and Fridays. CalMatters is also tracking coronavirus hospitalizations by county.
California has administered 73,669,038 vaccine doses, and 74.9% of eligible Californians are fully vaccinated.
Other stories you should know
1. Newsom caught up in high-profile lawsuit
On Wednesday, Newsom’s first full day back at work after a family vacation to Central and South America, he signed into law a bill strengthening protections for patients undergoing treatment for substance use disorders. But that news was overshadowed by an explosive Bloomberg report that found a top lawyer for California’s anti-discrimination agency resigned Tuesday night, alleging that Newsom’s office was interfering in the agency’s sexual discrimination and harassment lawsuit against video game publisher Activision Blizzard Inc.
2. Another SF school shakeup
In other big resignation news: Joe Ryan Dominguez, the principal of San Francisco’s elite Lowell High School, announced Wednesday that he plans to resign at the end of the school year after just one year on the job — and slammed the beleaguered San Francisco Unified School District on his way out.
3. Debating Prop. 13’s legacy
How is it possible that the owner of a 6,740-square-foot San Francisco mansion worth an estimated $9 million paid $5,625 in property taxes in 2020 — barely more than the $5,240 paid by the owner of a 991-square-foot Richmond home worth $331,000? Answer: Proposition 13, California’s landmark 1978 ballot measure that capped property taxes at 1% of a property’s assessed value and pegged the assessed value to the property’s original purchase price, rather than what it could fetch in today’s market.
Other things worth your time
Prison, probation, a missed warrant: Sacramento shooting suspects’ troubled route to K Street. // Sacramento Bee
Seven men charged with gun trafficking in Inland Empire, ‘ghost guns’ among 30 firearms seized. // Los Angeles Times
At least 9 claims of drugged drinks at Wine County bar shock Healdsburg. // San Francisco Chronicle
Former executive gets prison for $1 billion solar fraud. // Associated Press
San Francisco spent $250,000 on a database that’s never been used. // San Francisco Chronicle
For the first time in over 30 years, there’s a real race for Alameda County sheriff. // Oaklandside
In governor’s race, challengers attack Newsom’s record on homelessness. // Los Angeles Times
University of California buys $6.5M home for its president. // Berkeleyside
He wanted to work on an old car in his yard. Now he owes $573K in Sacramento code violations. // Sacramento Bee
Homeowner sues city after it denies his plan for affordable housing. // San Francisco Chronicle
San Diego adds new incentive to spur more low-income ADUs. // San Diego Union-Tribune
Efforts to restrict development in wildfire zones fall flat in Sacramento. // San Diego Union-Tribune
California Joshua tree isn’t threatened, state regulators say. It could bring more development. // Los Angeles Times
Q&A: California state lobbying with Chris Micheli. // Sacto Politico
Kindergarten may change drastically in California if two new bills pass. // EdSource
Feral cats have invaded the Oakland Coliseum. // Oaklandside
See you tomorrow.
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