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CalPERS reports investment returns that improve the pension fund's long-term outlook -- California’s largest public-employee pension fund saw an upturn in profits generated from its investments in the last year, officials reported Thursday, a record that offered some improvement to its long-term fiscal stability. John Myers in the Los Angeles Times$ -- 7/12/18

San Francisco is so expensive, its new mayor has never been able to afford a home there -- "I've been a renter all my life," San Francisco's new mayor London Breed said in her inauguration speech Wednesday. "So many of my friends have left San Francisco. I don't want to see this happen to the next generation." Amy Graff in the San Francisco Chronicle$ -- 7/12/18

San Francisco metro area has lost 31,000 home-owning families in 10 years -- It's no secret the San Francisco Bay Area can be a tough place to raise kids, and now a new report sheds light on those families sticking out. Amy Graff in the San Francisco Chronicle$ -- 7/12/18

Environmentalists target another bill that would relax billboard rules in California -- Two weeks after lawmakers shelved a proposal to increase the number of electronic signs along California freeways, environmentalists have shifted their opposition to a bill that they say could also impact highways — even though its author says it would only allow replacement of existing billboards, not an expansion. Patrick McGreevy in the Los Angeles Times$ -- 7/12/18

Feinstein Fights to Deny Democratic Rival Official Party Nod -- U.S. Sen. Dianne Feinstein is trying to convince California Democratic Party officials not to endorse a candidate in her race against fellow Democrat Kevin de Leon. Officials will vote Saturday. Kathleen Ronayne Associated Press -- 7/12/18

Latest battle over California lending market: Should grocery stores offer large loans? -- Walk into a Northgate supermarket and, along with produce and pan dulce, you can walk out with a small loan from the store’s Prospera financial services stand. Those loans top out at $2,500. Now, a bill working its way through the state Legislature could boost that maximum to $7,500 — enough, the bill’s author said, to pay for an immigration lawyer or a funeral. James Rufus Koren in the Los Angeles Times$ -- 7/12/18

Hate crimes in Sacramento County have increased by 66 percent since 2014 -- In September, Sharie Thompson received a racist note taped to the front door of her Elk Grove salon, threatening that a “coon hunt” was coming for the African American hair stylist and her staff. “Gonna get ya soon” read the note, written in black crayon. Anita Chabria, Michael Finch II in the Sacramento Bee$ -- 7/12/18

Oakland to Pay $2.2M to Former Black Panther Leader Who Sued -- The city of Oakland will pay $2.2 million to settle a claim by a former Black Panther leader who was injured in 2015 after a city councilwoman punched and pushed her. Associated Press -- 7/12/18

Authorities do not believe attack on 91-year-old grandfather is a hate-related incident -- Detectives do not believe an attack on a 91-year-old man on the Fourth of July is a hate related incident, authorities said. Brittny Mejia in the Los Angeles Times$ -- 7/12/18

Man cited in Northern California fire sparked by faulty electric fence -- The California Department of Forestry and Fire Protection said Wednesday the blaze was caused by an improperly installed electric livestock fence on private property, and that the responsible party had been cited under the state’s public resources code for “burning the lands of another.” Javier Panzar in the Los Angeles Times$ -- 7/12/18

Cannabis Tax Goes To San Joaquin County Ballot After Supervisors Approve Pot Sales, Cultivation -- San Joaquin County voters will go to the polls in November to decide how to spend tax money generated by commercial cannabis. The Board of Supervisors approved ordinances to regulate commercial and private marijuana cultivation, all of which must be grown indoors under the rules. Rich Ibarra Capital Public Radio -- 7/12/18

Taylor: Honduran woman deported from Contra Costa jail is glad to hear ICE is getting booted -- Dianny Patricia Menendez had a fever and body pains Wednesday morning, so she went to the doctor. She made the appointment in her native Honduras, the country she begged to be deported to in October. Otis Taylor Jr. in the San Francisco Chronicle$ -- 7/12/18

With help from Dems, Trump puts a judge on court he considers a nemesis -- President Trump, who has referred to the Ninth U.S. Circuit Court of Appeals as a “bad court” that was biased against him, now has his first judicial appointment on the court — a former Hawaii attorney general supported by every Senate Democrat and opposed by a majority of Republicans. Bob Egelko in the San Francisco Chronicle$ -- 7/12/18

Fox: Judges in Climate Change and Immigration Cases Tell the Executive and Congress: Do Your Job -- While the national focus on the courts is on President Trump’s nomination of Brett Kavanaugh to the United States Supreme Court, it is interesting that in the last few weeks two federal judges in California concluded cases on the controversial issues of climate change and immigration by both basically telling lawmakers and the executive branch to do their jobs in setting standards in these contentious policy areas. Joel Fox Fox & Hounds -- 7/12/18

‘Whiplash’: Inside Trump’s NATO ambush, a signature spectacle casting allies as bit players -- The NATO summit was concluding on course here Thursday, with European leaders pleased that their unruly American counterpart had been surprisingly well behaved, if not truly conciliatory. Their planes were getting gassed up at the airport, and they were ready to call the whole shebang a success and jet home. Philip Rucker, Josh Dawsey and Michael Birnbaum in the Washington Post$ Eli Stokols in the Los Angeles Times$ -- 7/12/18

 

California Policy & Politics This Morning

McCarthy launches stealth campaign for speaker -- The majority leader has begun lining up support for his bid to succeed Paul Ryan, but he can’t afford another misstep. John Bresnahan, Rachael Bade Politico -- 7/12/18

California lawmaker reprimanded for sexual ‘locker room talk’ about his colleagues -- An Assembly investigation has determined that Assemblyman Devon Mathis made explicit remarks at work, including about his colleagues, violating the Legislature's policy on sexual harassment. But investigators did not corroborate allegations of sexual misconduct made last fall against the Visalia Republican. Alexei Koseff in the Sacramento Bee$ Laurel Rosenhall Calmatters Sophia Bollag Associated Press -- 7/12/18

Walters: Legislature may erase embarrassing boondoggle -- California has had no shortage of boondoggles – projects or programs that cost taxpayers oodles of money but never produced their promised benefits. Dan Walters Calmatters -- 7/12/18

Skelton: What do Southern Californians really get out of Gov. Jerry Brown's twin tunnels project? -- The most expensive state public works project ever would be financed primarily by Southern California water users. But it’s not exactly clear what they’d be buying. George Skelton in the Los Angeles Times$ -- 7/12/18

City Hall throng lines up for selfies, handshakes with Mayor Breed -- As soon as her inauguration on the steps of San Francisco City Hall was over Wednesday, London Breed walked back into the building and straight to Room 200. The mayor’s office was finally hers. Trisha Thadani in the San Francisco Chronicle$ -- 7/12/18

Suit contends former Mayor Willie Brown misdirected campaign donation -- San Francisco property bigwig Joe O’Donoghue asked his longtime political cohort, former Mayor Willie Brown, to relay a $50,000 check to an independent organization supporting London Breed’s successful mayoral campaign. Bob Egelko in the San Francisco Chronicle$ -- 7/12/18

GOP fumes as more anti-Semitic robocalls for Republican rile voters -- For the second time in as many months, Bay Area voters are receiving anti-Semitic robocalls promoting little-known Republican candidates for Congress who have been disavowed by the party. John Woolfolk, Casey Tolan in the San Jose Mercury$ -- 7/12/18

Judge orders release of woman who served 11 years behind bars in grandson's death -- A woman who spent 11 years behind bars in connection with the sudden death of her 9-month-old grandson has been freed from prison after new evidence revealed that the death may have been accidental. Marisa Gerber in the Los Angeles Times$ -- 7/12/18

Economy, Employers, Jobs, Unions, Pensions  

Power play: How California lawmakers are trying to navigate a changing energy landscape -- The puzzle: how to align state policies with the quickly-evolving electricity world, one lawmakers are attempting to define and to decide how to regulate. Key questions include who should be allowed to distribute energy and whether to expand consumers’ choices in purchasing electricity. Julie Cart Calmatters -- 7/12/18

The new Silicon Valley has cable cars and an orange bridge -- In recent years, San Francisco companies have started to bring in more venture capital dollars than those in Silicon Valley, according to PricewaterhouseCoopers’ most recent MoneyTree report. Natasha Mascarenhas in the San Francisco Chronicle$ -- 7/12/18

Venture capital surges for San Diego County startups in second quarter -- San Diego startups pulled in the largest amount of venture capital in the June quarter since the tech bubble of the early 2000s, fueled by investments in biotech/health care companies. Mike Freeman in the San Diego Union-Tribune$ -- 7/12/18

Uber lays off 100 backup drivers in self-driving unit -- Uber has laid off about 100 backup drivers from its self-driving unit, mostly in Pittsburgh and some in San Francisco. Carolyn Said in the San Francisco Chronicle$ -- 7/12/18

Sovereign Health tells workers they won’t be paid; closes California drug rehab facilities -- One of the bigger addiction treatment providers in Southern California, Sovereign Health, is closing its doors amid financial difficulties and an ongoing investigation following allegations of insurance fraud. Scott Schwebke in the Orange County Register -- 7/12/18

Dueling stadium initiatives can go on November ballot, judges say -- In two separate rulings, San Diego Superior Court judges Wednesday gave the OK for dueling stadium initiatives to appear on the November ballot. Phillip Molnar and Jennifer Van Grove in the San Diego Union-Tribune$ -- 7/12/18

Driverless-car makers want Congress to free them from state safety standards -- As Silicon Valley and automakers attempt to steer the nation toward a future of driverless vehicles, a group of influential lawmakers remains concerned that bipartisan legislation now moving through Congress could leave consumers at risk by preventing states from demanding tighter safety regulations. Eliza Fawcett in the Los Angeles Times$ -- 7/12/18

With Thai soccer team freed, Hollywood gears up for the movie -- Two production companies are now looking to put together movies about the Thai soccer team rescue. Thailand’s Navy, whose SEAL unit led the rescue, and the Thai government have selected Ivanhoe Pictures to develop a film that would be directed by John M. Chu, the president of Ivanhoe Pictures, John Penotti, said in a statement. Lisa Richwine Reuters -- 7/12/18

Taxes, Fees, Rates, Tolls, Bonds 

Can Democrats shield Californians from new GOP tax law—despite IRS opposition? -- As President Trump’s massive tax overhaul takes effect, Democratic state lawmakers are refining and advancing a plan they insist will protect California taxpayers from higher federal tax bills. Antoinette Siu Calmatters -- 7/12/18

Housing  

California ordered to restore $331 million to fund for homeowners -- When California received $410 million in 2012 as part of a nationwide settlement with major banks accused of abusive foreclosures, Gov. Jerry Brown used $331 million to pay state agencies in housing and other programs to cover their deficits. Now a state appeals court has ordered the money be used for its original intent: to help homeowners who suffered foreclosures. Bob Egelko in the San Francisco Chronicle$ -- 7/12/18

Wildfire  

California Fire Victims Don't Want Utilities' Fault Reduced -- Victims of California's deadliest wildfires joined politicians on Wednesday to urge state lawmakers to stop trying to overhaul laws that hold utility companies accountable for blazes. Paul Elias Associated Press Megan Cassidy and David R. Baker in the San Francisco Chronicle$ -- 7/12/18

Guns 

California Gun Groups Sue Over Faulty Registration System -- The lawsuit against state Attorney General Xavier Becerra and his Department of Justice alleges that the system for registering so-called bullet-button assault weapons was unavailable for most of the week before the July 1 deadline. Don Thompson Associated Press Patrick McGreevy in the Los Angeles Times$ -- 7/12/18

House GOP appropriators block funding for gun violence research -- House Republican appropriators Wednesday rejected a proposal to designate millions of dollars for the Centers for Disease Control and Prevention for gun violence research, voting 32-20 to keep the language out of a fiscal 2019 spending bill. Adam Cancryn Politico -- 7/12/18

Education 

Two Bay Area colleges to close, lay off hundreds of staff -- Hundreds of faculty and staff are out of jobs with the closures of the Art Institute of California, San Francisco, and the Alameda campus of Argosy University, a general education school. Rebecca Aydin in the San Francisco Chronicle$ -- 7/12/18

L.A. Community College trustees assailed for seating a Latino man over three African American women -- A crowd of protesters assailed Los Angeles Community College District trustees Wednesday for selecting a Latino man over three African American women to fill a vacant board seat. Teresa Watanabe in the Los Angeles Times$ -- 7/12/18

UC admits record number of transfer students for fall -- The University of California offered admission this fall to more transfer students than it has at any point in its history, officials announced Wednesday. More than 137,000 students were offered spots at one of UC’s nine undergraduate campuses, including roughly 28,750 transfer applicants, according to UC. Lauren Hernandez in the San Francisco Chronicle$ -- 7/12/18

UC Davis admits fewer transfer students but more Californians overall, school says -- Despite a record increase in offers of admission for transfer students across the University of California system, UC Davis admitted nearly 500 fewer in-state transfer students for the upcoming academic year than in previous years. Claire Morgan in the Sacramento Bee$ -- 7/12/18

California officials confident they’ve cut deal in dispute over federal education law – California's State Board of Education is a signature away from finally complying with the nation's main education law affecting public schools, ending a year of protracted disagreement between Sacramento and Washington. Mikhail Zinshteyn and John Fensterwald EdSource -- 7/12/18

Immigration, Border, Deportation 

Operator of Orange County malls says it shares license plate data with local police, but not ICE -- A major Orange County land developer that owns three shopping centers equipped with cameras that read license plates said Wednesday it does not share information about vehicles captured in the recordings with U.S. Immigration and Customs Enforcement. Alene Tchekmedyian in the Los Angeles Times$ -- 7/12/18

Contra Costa County cuts ties with ICE, ending contract for jailing immigrant detainees -- Contra Costa County is ending its contract to detain immigrants at a jail in Richmond, becoming the third California jurisdiction since last year to cut such ties with the federal government. Andrea Castillo in the Los Angeles Times$ -- 7/12/18

Officials admit they may have separated family – who might be US citizens – for up to a year -- The Department of Justice told a federal judge Tuesday that it may have mistakenly separated a father and toddler who could both be US citizens for as long as a year, in the process of enforcing the Trump administration’s “zero-tolerance” immigration policy. Jamiles Lartey The Guardian -- 7/12/18

Health 

California Doctors Who Treat Poor Get Reimbursement Boost -- California is boosting reimbursement payments for doctors and dentists who treat the state’s poorest residents. It’s part of an incentive to expand access under Medi-Cal, which offers free or low-cost health coverage to more than 13 million people — a third of the state's population. Susan Murphy KPBS -- 7/12/18

Verity Health may sell St. Vincent and its other hospitals -- The nonprofit Verity Health System is considering selling one or more of its six California hospitals because of financial pressures. Melody Petersen in the Los Angeles Times$ -- 7/12/18

Environment 

California Cap-and-Trade is Working — For Other States -- A new report indicates California's much-heralded carbon trading program may actually be harming the neighborhoods it was designed to protect. Amel Ahmed KQED -- 7/12/18

Also . . . 

Details of revenge for drug deal emerge in missing Yolo County teens’ murder case -- Revelations of revenge over a drug deal connected to the 2016 disapperance of two Woodland teenagers came to light Wednesday on the first day of the preliminary hearing for the three men charged in their murder. Jordan Cutler-Tietjen in the Sacramento Bee$ -- 7/12/18

Santa Cruz neighborhood rejects state orders to open beach for free -- Rather than negotiating with coastal officials as planned this week, a Santa Cruz neighborhood group said Wednesday it doesn’t need renewed permission to charge a $100 annual fee to access a county park known by locals as Privates Beach. Rosanna Xia in the Los Angeles Times$ -- 7/12/18

POTUS 45  

Putin Has Already Won -- Trump’s blowup at the NATO summit is exactly what Russia hoped would happen. Evelyn Farkas Politico -- 7/12/18

‘Not exactly rolling out the red carpet’: Trump visit to Turnberry resort spotlights challenge facing his brand -- The side trip will allow Trump the president a chance to shine an international spotlight on Trump the brand by staying at Trump Turnberry, a 112-year-old Scottish resort that he bought in 2014. But the visit will also highlight a challenge facing many Trump properties since his election. William Booth and David A. Fahrenthold in the Washington Post$ -- 7/12/18

Beltway 

Trump’s Feud With Europe Is Worse Than You Think -- A three-week trip across the continent revealed a transatlantic relationship in tatters. Abraham Newman Politico -- 7/12/18

Sarah Palin flew across the country to talk about veterans. It was a Sacha Baron Cohen prank -- Days after the world learned that comedian Sacha Baron Cohen had duped former vice president Richard B. Cheney into signing a “waterboard kit,” news spread that the satirist of “Borat” and “Ali G” fame had tricked another victim: Sarah Palin. Cleve R. Wootson Jr. in the Washington Post$ -- 7/12/18

 

-- Wednesday Updates 

California slashes emissions, hits major greenhouse gas goal years early -- In a major win for California’s fight against global warming, the state appears to have hit its first target for cutting greenhouse gases — and it reached the goal four years early. David R. Baker in the San Francisco Chronicle$ -- 7/11/18

From Bedroom to Garage, Trade War About to Invade Your Home -- Trump’s initial tariffs on $34 billion of Made-in-China goods, which took effect on July 6, stayed clear of popular household products. But as he looks to penalize nearly half of the $505 billion the U.S. imported from China last year, it’s getting harder to shield the public. Bruce Einhorn and Angus Whitley Bloomberg -- 7/11/18

Lopez: He handed water to homeless people when temps topped 100. Some Silver Lake neighbors jeered, others cheered -- It was hot beyond reason. Not Friday hot, when temperatures topped nuclear, but Saturday hot — 100 degrees and above. Steve Lopez in the Los Angeles Times$ -- 7/11/18

Protesters demand removal of Central Valley official who advocated 'straight pride' month -- A newspaper column in which a Central Valley city official advocated “straight pride” and derided men for wearing “tinker bell wings” and “go-go boots,” has sparked outrage and calls for his removal from office. Brittny Mejia in the Los Angeles Times$ -- 7/11/18

More campaign money could flow to California legislative leaders under new bill -- Special interests could put more money directly into the hands of California legislative leaders, giving them greater influence over campaigns, under a bill unveiled last week as lawmakers left Sacramento for summer recess. Taryn Luna in the Sacramento Bee$ -- 7/11/18

Big crowd at San Francisco Civic Center sees London Breed sworn in as new as mayor -- Civic Center Plaza was filled with thousands of onlookers this morning for the inauguration of London Breed as San Francisco’s 45th mayor. The ceremony began at 11 a.m. and Lt. Gov. Gavin Newsom swore Breed in at 11:43 a.m. Dominic Fracassa in the San Francisco Chronicle$ -- 7/11/18

Battle for House Control Runs Through California's Orange County -- A fierce battle over a handful of congressional seats in the Southern California bastion of Republicanism could determine both the GOP’s future in the state and the outcome of the national battle for control of the U.S. House of Representatives. Christopher Palmeri Bloomberg -- 7/11/18

Number of California freshmen admitted to top UC schools drops -- The University of California offered admission to more undergraduate students than ever before, yet the number of California freshmen admitted to some of the system’s most elite schools, including UCLA and UC Berkeley, dropped slightly. Emily DeRuy in the San Jose Mercury$ -- 7/11/18

UC opens doors to record number of Californians, led by growth in transfer students -- The University of California opened its doors to a record number of Californians for fall 2018, led by growth in transfer students from across the state, according to preliminary data released Wednesday. Teresa Watanabe in the Los Angeles Times$ -- 7/11/18

Oversight officials vote to dissolve agency accused of delivering discolored water in Compton -- Authorities voted Wednesday to dissolve the troubled Sativa Los Angeles County Water District after customers in Compton and Willowbrook complained of foul drinking water. Angel Jennings, Ruben Vives in the Los Angeles Times$ -- 7/11/18

California needs more mental health professionals – and the shortage will get worse, experts say -- California is suffering a shortage of mental health professionals – and it's expected to get worse in the next decade. In 2013, California had a shortage of 336 psychiatrists, according to national projections from the Health Resources and Services Administration, cited by the state Governor’s Office. Hannah Holzer in the Sacramento Bee$ -- 7/11/18

Pender: Apple, Tesla, Salesforce add huge sums to soaring Bay Area property rolls -- The assessed value of all Bay Area property soared to $1.72 trillion in 2018-19, up 7.8 percent from last year despite wildfires that destroyed thousands of homes and businesses in Sonoma and Napa counties. Kathleen Pender in the San Francisco Chronicle$ -- 7/11/18

A former Democratic presidential candidate is suing California. He wants GOP votes to count -- The 2016 presidential election is over, but debate surrounding the fairness of the Electoral College rages on — with one major twist. Bryan Anderson in the Sacramento Bee$ -- 7/11/18

Cal Fire: County fire caused by improperly installed electric fencing -- The County fire that has consumed 90,288 acres in Yolo and Napa counties was 86 percent contained Wednesday morning, Cal Fire said. The fire started on Highway 16 in Yolo County’s rural community of Guinda. Winds pushed it south, burning down into Napa County near Lake Berryessa. Hannah Beausang in the Santa Rosa Press Democrat -- 7/11/18

Klamathon Fire containment improves to 60 percent -- The Klamathon Fire was 60 percent contained Wednesday morning — up from 40 percent contained the previous day — and remained at 36,500 acres in Siskiyou County, according to California Department of Forestry and Fire Protection, or Cal Fire. Sarah Ravani in the San Francisco Chronicle$ -- 7/11/18

Arrest made in brutal beating of 91-year-old man -- Authorities have arrested a woman alleged to be involved in the assault of a 91-year-old man on the Fourth of July. Detectives arrested Laquisha Jones at 10 p.m. Tuesday, near 60th Street and Crenshaw Avenue, according to the Los Angeles County Sheriff’s Department. Jones, 30, was booked on suspicion of assault with a deadly weapon. Brittny Mejia in the Los Angeles Times$ -- 7/11/18

Amid crisis, voters will confront housing options -- As California rents and property values continue to rise, it should come as no surprise that three housing-related measures will face voters on the November ballot, targeting veterans’ home loans, local rent control and housing construction for the homeless. All are a direct result of California’s soaring costs. Jessica Hice Capitol Weekly -- 7/11/18

Fox: Three States Legal Challenge Faces Hurdles -- I’m not a fan of the Cal 3 States initiative filed by Silicon Valley entrepreneur Tim Draper and I’m not a legal scholar but I wonder if a court would reject a lawsuit filed to take the measure off the ballot before voters decide the question. Joel Fox Fox & Hounds -- 7/11/18