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Legalized sports betting could be on California ballot after court move -- Just hours after the U.S. Supreme Court opened the door for states to legalize sports betting, Assemblyman Adam Gray (D-Merced) on Monday said he would pursue a state constitutional amendment that, if approved by the voters, would allow the wagering in California. Patrick McGreevy in the Los Angeles Times$ Angela Hart in the Sacramento Bee$ -- 5/14/18

After losing home in wildfires, veteran lobbyist battles PG&E -- Since last year’s Wine Country fires, Pacific Gas and Electric Co. has been pushing hard in Sacramento for legislation to protect utility companies from full liability in case their wires accidentally spark a blaze. And Patrick McCallum has been pushing back. David R. Baker in the San Francisco Chronicle$ -- 5/14/18

Californians could vote on as many as five housing measures in November -- Gov. Jerry Brown’s embrace last week of a $2-billion bond to fund homeless housing could make for an even busier ballot in November. Should lawmakers agree to put the bond before voters, Californians could see as many as five housing measures on the November ballot. Liam Dillon in the Los Angeles Times$ -- 5/14/18

Oil industry allies challenge California regulator's funding request -- A group of California lawmakers wants to block a funding increase for the regulatory agency that oversees the state's oil and gas industry, unless it tackles a backlog of applications for dozens of drilling projects. Alexei Koseff in the Sacramento Bee$ -- 5/14/18

Facebook suspends 200 apps after post-Cambridge Analytica audit -- Facebook has suspended 200 apps and is looking into whether they misused data, the company said Monday in an update about the audit it promised to conduct after its big privacy scandal. Levi Sumagaysay in the San Jose Mercury$ -- 5/14/18

Chief investment officer to leave California pension fund --The chief investment officer of California’s $350 billion pension fund is stepping aside. Ted Eliopoulos announced Monday he’s leaving the California Public Employees’ Retirement System once a replacement is hired. Associated Press -- 5/14/18

If you have a 2nd Amendment right to sell guns, the Supreme Court isn't saying -- The Supreme Court on Monday refused to hear a case based on the argument that the 2nd Amendment guarantees a right to sell firearms. The case (read the petition here) was brought by three men who wanted to open a gun store in Alameda County. Scott Martelle in the Los Angeles Times$ Greg Stohr Bloomberg -- 5/14/18

Orange County anti-sanctuary leaders to meet with President Trump -- Two politicians from the small Orange County city that helped spark an anti-sanctuary movement in California plan to meet this week with President Trump to talk about illegal immigration. Cindy Carcamo in the Los Angeles Times$ -- 5/14/18

District attorney: Campaign for San Diego's top prosecutor is a study in contrasts -- The race to be San Diego’s next District Attorney gives voters distinct choices: prosecutor against defense lawyer, outsider versus insider, reformer against establishment. Greg Moran in the San Diego Union-Tribune$ -- 5/14/18

A GOP surprise: House midterm hope in California -- Democrats boasted as recently as a few months ago that GOP Rep. Mimi Walters was as good as gone. Rachael Bade Politico -- 5/14/18

If parents are arrested and separated from children at the border, where do the kids go? -- The children would be placed at one of several shelters maintained by ORR located around the country. On its website, Health and Human Services says the shelters are operated by nonprofit organizations, with about half caring for fewer than 50 unaccompanied children. Leslie Berestein Rojas KPCC -- 5/14/18

Musk's medicine for ailing Tesla: a 'thorough reorganization' -- In a memo to employees, Musk said he'll be "flattening the management structure." The goal? "To improve communication, combining functions where sensible and trimming activities that are not vital to the success of our mission." Russ Mitchell in the Los Angeles Times$ -- 5/14/18

Capitol Weekly Podcast: Carmela Coyle Carmela Coyle, president and CEO of the California Hospital Association, sat down with Capitol Weekly’s John Howard and Tim Foster to talk about ways to cut health care costs, including a new experiment in Maryland that seeks to replace per-patient payments with a single annual payment designed to focus on keeping patients healthier. Link Here -- 5/14/18

Fox: Fox and Hounds Daily Celebrates 10 Years -- We started Fox and Hounds to offer a platform for debate on important policy, political and business issues. Joel Fox Fox & Hounds -- 5/14/18

American Airlines Says Leave That Emotional Support Goat at Home -- American Airlines Group Inc. is banning hoofed, horned, creepy and crawly creatures from flying as emotional support animals. Critters displaying threatening behavior like growling or biting won’t be allowed on board, either. Mary Schlangenstein Bloomberg -- 5/14/18

The Supreme Court and Sharia law: How a fake-news story spreads -- Kurt Withrow, a former insurance salesman from Palatine, Illinois, didn’t mean to become one of the thousands of people who helped propel forward one of the most persistent fake news stories of the last year. But in January, a story making its way around Facebook caught his eye. Jason Schwartz and Shawn Musgrave Politico -- 5/14/18

GOP tax cut not why economy is booming -- Economists are rolling their eyes at candidates’ claims. Brian Faler Politico -- 5/14/18


California Policy & Politics This Morning

Facebook, Instagram ads target Gavin Newsom over past relationships with women -- A social media campaign attacking gubernatorial frontrunner Gavin Newsom for an old affair, and subsequent romantic relationship with a 19-year-old when he was 39 is seeking to raise moral and ethical questions about the former San Francisco mayor before the June 5 primary. Angela Hart in the Sacramento Bee$ -- 5/14/18

Where California’s candidates for governor stand on fixing health care -- Gov. Jerry Brown never had to decide whether to support single-payer health care because a bill never reached his desk. But just because the Legislature isn’t considering it this year doesn’t mean the idea has died — and even without it, California’s next governor will have plenty of health policy problems to worry about. Joe Garofoli in the San Francisco Chronicle$ -- 5/14/18

Silicon Valley Faces Regulatory Fight on Its Home Turf -- The staging ground for one of the biggest regulatory fights facing the technology industry is far removed from Washington or Brussels, tucked into an alley next to a wine and cheese shop about 30 miles from Silicon Valley. Daisuke Wakabayashi in the New York Times$ -- 5/14/18

California’s new sanctuary-state law creates stark divides -- As California defies federal immigration policy, calling itself a sanctuary, the state’s conservatives are pushing back. Scott Wilson in the Washington Post$ -- 5/14/18

Eric Garcetti, still weighing a presidential run, delivers commencement address in New Hampshire -- Garcetti flew east Saturday, speaking to graduates at Southern New Hampshire University the next morning before returning to Los Angeles, where he faces a homelessness crisis and a decision on who will be the city's next police chief. Cindy Chang in the Los Angeles Times$ -- 5/14/18

Los Angeles Mayor’s Political Future Tied to Plan to Solve City’s Homeless Crisis -- Since taking office five years ago, Mayor Eric Garcetti has marketed this city as a model of how an American metropolis can dream big: wooing the 2028 Olympics, courting high-tech companies and pushing for a “subway to the sea.” Nour Malas and Alejandro Lazo in the Wall Street Journal$ -- 5/14/18

Candidates Spend Big In California Lieutenant Governor Race -- California Lt. Gov. Gavin Newsom once joked his job doesn't involve much governing. But that's not stopSoftware bug?Ssping candidates from shelling out millions to replace him. About $10 million has been spent on the race, including nearly $5 million from an independent group funded primarily by one of the candidates' fathers. Sophia Bollag Associated Press -- 5/14/18

Harris isn’t up for election this year, but she’s popular for endorsements -- When it comes to Democratic endorsements, U.S. Sen. Kamala Harris appears to be the hottest “get” in next month’s primary. Harris’s face is showing up on 26 Democratic candidates’ mailers and TV ads, including those for Lt. Gov. Gavin Newsom and Alameda County District Attorney Nancy O’Malley. Matier & Ross in the San Francisco Chronicle$ -- 5/14/18

There's a California election coming up. But if history is any guide, most voters won't show up -- By the time California's primary election day arrives in June, it's possible the state will be very close to having 20 million registered voters — a historic milestone that state elections officials reported last week is within sight. John Myers in the Los Angeles Times$ -- 5/14/18

Judge says L.A. County wrongly booted tens of thousands of residents off Medi-Cal -- From December 2016 to December 2017, about 22,000 people in L.A. County wrongly lost Medi-Cal benefits, according to evidence cited in the judge's decision. The problems appear to have resulted from a backlog of applications and a faulty computer system, according to court documents. Soumya Karlamangla in the Los Angeles Times$ -- 5/14/18

Skelton: Gov. Jerry Brown's parting gift to his successor: ship-shape state finances -- Gov. Jerry Brown is massaging the final state budget of his long career, and his No. 1 priority is simple: Don't leave his successor the same mess he did the last time. George Skelton in the Los Angeles Times$ -- 5/14/18

Walters: Jerry Brown holds the line in last budget -- As billions of extra tax dollars poured into the state treasury this year, advocates for virtually every category of state spending ramped up pressure for increases in the 2018-19 budget that Gov. Jerry Brown had proposed in January. Dan Walters Calmatters -- 5/14/18

San Francisco Voters May Ban Menthol Cigarettes, Vape Flavors -- San Francisco could become the first city in the nation to ban flavored tobacco products from all store shelves. This includes everything from candy flavored e-cigarettes to conventional menthol smokes. Lesley McClurg KQED -- 5/14/18

Julius Turman, former San Francisco Police Commission president, found dead in home -- Julius Turman, former president of the San Francisco Police Commission, has died. He was 52. Turman’s body was found in his home by friends Sunday, said a city official who requested anonymity. There did not appear to be signs of foul play. Catherine Ho and Rachel Swan in the San Francisco Chronicle$ George Kelly in the San Jose Mercury$ -- 5/14/18

Actor Danny Glover to speak at Sacramento rally -- Actor and activist Danny Glover will be one of the speakers at a Sacramento rally on Monday kicking off a six-week national campaign aimed at revamping voting laws and bringing attention to poverty and the environment. Bob Shallit in the Sacramento Bee$ -- 5/14/18

Taylor: Supporting school libraries a real no-brainer -- Andrea Kneeland, a teacher librarian in her first year at Frick Impact Academy, had heard students at the middle school in East Oakland weren’t interested in reading. Otis R. Taylor Jr. in the San Francisco Chronicle$ -- 5/14/18

Economy, Employers, Jobs, Unions, Pensions  

Commencements, state funding hang in balance amid UC, union standoff -- The University of California and the AFSCME 3299 union representing 24,000 service and patient-care workers have no plans to return to the bargaining table and each side is blaming the other for reaching a final impasse and an ensuing three-day strike that began on May 7. Cathie Anderson in the Sacramento Bee$ -- 5/14/18

Apple CEO Lauds Gun-Control Activists; Jabs at Google, Facebook -- Apple Inc. Chief Executive Officer Tim Cook waded into divisive political topics such as gun control and immigration during a commencement speech while continuing his criticisms of internet companies over a lack of user privacy. Speaking at Duke University, where he graduated from business school 30 years ago, Cook urged the students to reject the status quo and be fearless. Alistair Barr Bloomberg -- 5/14/18

Taxes, Fees, Rates, Tolls, Bonds 

Where is San Diego's gas tax money going? -- Transportation funding from California’s new gas tax is flowing into the San Diego region, with more than $860 million already slated for everything from widening Interstate 5 to improving on-time performance for the Blue Line trolley to filling potholes in local roads. Joshua Emerson Smith in the San Diego Union-Tribune$ -- 5/14/18


Furor is mounting over proposed Koreatown shelter. Is it NIMBYism, or a community 'blindsided' by the city? -- The 62-year-old man with a scraggly beard and glasses poured water from a plastic jug onto a towel and began washing up for the new morning outside the tent he shares with his wife. Victoria Kim in the Los Angeles Times$ -- 5/14/18

Lawsuits target city over new laws for homeless housing projects and motel conversions -- Oxford Triangle Assn. claims in a suit filed in Los Angeles Superior Court that the city failed to fully consider the environmental impacts of the two laws. Another group, Fight Back, Venice, filed an identical suit Friday, said Jamie Hall, the attorney for both groups. Dakota Smith in the Los Angeles Times$ -- 5/14/18


From plaza to park by wire — aerial tram coming to Transbay Transit Center -- Yet another alternative form of transportation is coming to San Francisco. A new mini aerial tram — stretching half a football field in length — will begin transporting people from a plaza outside the new Salesforce Tower to the 5.4-acre park atop the Transbay Transit Center. Matier & Ross in the San Francisco Chronicle$ -- 5/14/18

San Francisco police may start helping BART officers patrol troubled Civic Center Station -- BART riders may soon see San Francisco police patrolling Civic Center Station, where the open injection of drugs has become a common sight. Matier & Ross in the San Francisco Chronicle$ -- 5/14/18


California Cannabis Regulations Make Shippers Report to the Feds -- To truck marijuana around the Golden State, you might have to register your vehicle with a federal government that's not too keen on your new small business. Nick Stockton WIRED -- 5/14/18


Highland High School students in Palmdale, returning after Friday’s shooting, will be greeted by support personnel -- Students returning to class Monday at Highland High School in Palmdale — the site of a Friday shooting that left a 15-year-old boy wounded — will be greeted by a host of support personnel, from school counselors to psychologists to sheriff’s deputies. The item is in the Los Angeles Daily News$ -- 5/14/18

The rise of restorative justice in California schools brings promise, controversy – Many tout the practice as a groundbreaking alternative to zero-tolerance policies and a way to alleviate discipline disparities, while some say it's being oversold as a quick fix. David Washburn EdSource -- 5/14/18


Recycling, Once Embraced by Businesses and Environmentalists, Now Under Siege -- Prices for scrap paper and plastic have collapsed, leading local officials across the country to charge residents more to collect recyclables and send some to landfills. Used newspapers, cardboard boxes and plastic bottles are piling up at plants that can’t make a profit processing them for export or domestic markets. Bob Tita in the Wall Street Journal$ -- 5/14/18

Also . . . 

Rapes and burglaries had occurred. But this was the first time the East Area Rapist killed -- On a clear winter night in February 1978, a young couple left their Rancho Cordova apartment around 9 p.m. to walk the dog. With a quarter moon in the sky, and only a sprinkling of porch lights, the middle-class neighborhood of weathered fences and winding streets was especially dark. Marjie Lundstrom and Sam Stanton in the Sacramento Bee$ -- 5/14/18

A man made racist comments to a woman in a hijab. This Coffee Bean & Tea Leaf refused to serve him -- A man was refused service at a California coffee shop after he made racist comments toward another customer wearing a headscarf. The unidentified man was recorded mocking the woman's niqab and telling her he "didn't want to be killed by you" while in line at a Coffee Bean & Tea Leaf, before another customer stood up for the woman and staffers told the man to leave. Dianne de Guzman in the San Francisco Chronicle$ -- 5/14/18

POTUS 45  

White House leakers leak about leaking -- Why does this White House leak like it’s going out of style? I reached out to some of the Trump administration’s most prolific leakers — people who have been wonderful sources to me (and, I assume, plenty of other reporters) — to get them to explain the draw. "To be honest, it probably falls into a couple of categories,” one current White House official tells me. "The first is personal vendettas. And two is to make sure there's an accurate record of what's really going on in the White House." Jonathan Swan Axios -- 5/14/18

Trump says he'll help Chinese company that violated U.S. sanctions -- President Donald Trump signaled Sunday he would help out a Chinese phone-maker that has been banned from accessing U.S. technology, a top priority of Chinese trade negotiators coming to Washington later this week for talks. Brent D. Griffiths, Annie Karni Politico -- 5/14/18