THE BUZZ: Uber, the ride-hailing and delivery giant that launched in San Francisco, is prepping a massive cash infusion to shake up politics in California, according to plans revealed first to Playbook.
The company is dropping $30 million into its existing state committee — called the Uber Innovation PAC — all of which it plans to spend on candidates and causes in 2024, people familiar with its plans said.
That will make it one of, if not the largest, single-funded state PACs this election cycle, injecting a decidedly pro-business bent into the mix. In addition to its sheer size, Uber’s incoming money bomb is notable given moves by other major corporations to pull out of California, citing complaints over its voluminous regulations and a broader climate that can be unfriendly to large businesses.
Uber’s rollout includes a $250,000 check to support Proposition 1 on the March ballot, Gov. Gavin Newsom’s effort to revamp and fund the state’s mental health system. Prop 1 is Newsom’s biggest priority in the primary and so far faces minimal opposition and spending against it.
The PAC’s new money is the latest sign that booming tech companies with ties to Silicon Valley are growing significantly in their political clout and sophistication — following years of being naive and even adverse to the ways of Sacramento. That dynamic is expected to increase, lobbyists and industry representatives tell POLITICO, with the rise of artificial intelligence and lawmakers’ plans to introduce bills to regulate AI and other fledgling industries.
The PAC money also comes as the company works to flex its muscle in statehouses across the U.S., plunging millions into gig-economy ballot measures to reshape the ride-sharing industry by enshrining drivers as independent contractors. A court last year mostly upheld California’s Proposition 22, which passed with room to spare in November 2020. Unions spent big against the measure and have fought it in the courts.
There’s a lot at stake for the company in California beyond its battles with unions over employee classifications. Uber has a growing share of electric vehicles and has set aggressive zero-emission targets in the U.S., Canada and European cities. And it’s coping with spiraling insurance industry woes.
Uber itself started lobbying in California’s Capitol about a decade ago and has a record of donating to candidates and campaigns. Uber’s PAC, for example, supported Newsom as he beat back a recall attempt in 2021.
The Prop 22 fight grew out of the company’s unsuccessful battle against Assembly Bill 5 — carried by Lorena Gonzalez, a former state lawmaker now leading the Labor Federation, and signed by Newsom in 2019 — that would have upended Uber’s business model by compelling the company to reclassify its drivers as employees.
Uber did not reveal any more early recipients of its new cash, beyond saying it would contribute to California statehouse campaigns and issues. In a statement from the PAC’s organizer, the company said it plans to “amplify thoughtful candidates and campaigns that are willing to take on the tough challenges that our state’s collective future faces.”
The effort is being led by Ramona Prieto, Uber’s head of public policy and communications for the western region. In the statement, Prieto added, “that includes electrification, supporting small business, repairing the state’s broken insurance markets rife with litigation abuse, ensuring a competitive business climate and protecting access to flexible work amidst record inflation and economic uncertainty.”
Check back soon for updates on this PAC’s spending, which Playbook will be monitoring closely.
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WHERE’S GAVIN? Out of state to stump for President Joe Biden in rural South Carolina. He will return on Friday, after stopping off in Nevada ahead of early voting there.
CONTEST ALERT: SENATE GUESSING GAME — A major power shift is underway in the California Senate as longtime President Pro Tem Toni Atkins prepares to pass the gavel. Her replacement, incoming Pro Tem Mike McGuire, will be sworn in on Feb. 5.
The question on everyone’s mind: Who will McGuire name to key Senate leadership positions?
Make your predictions and compete against your fellow politicos (and the Playbook authors). Think of it as a far less sinister Game of Thrones or fantasy football for politics nerds.
Those with the most accurate guesses will receive a shout-out in California Playbook and an extra special swag bag, so be sure to leave your name and email with your prediction.
Happy guessing!
FOOT OFF THE GAS — State Sen. Scott Wiener is known for carrying legislation that pushes the envelope, and he’s starting the year no differently. Today he unveils a bill that would require all new cars sold in California to be equipped with a device that physically keeps them from going 10 mph over the legal limit.
Wiener’s bill is likely to draw jeers from Republicans, who’ve already branded California as an over-regulated “nanny state,” but the senator said lawmakers must combat a sharp rise in vehicle-involved pedestrian fatalities. We’ll be watching to see whether Newsom, who’s grown increasingly sensitive to California’s political backlash, and moderate Democratic lawmakers feel Wiener’s sense of urgency. (Read more on POLITICO Pro)
BIG HICKS PICK — California Democratic Party Chair Rusty Hicks is deploying the heaviest of hitters in his Assembly run: Gavin Newsom. The governor is endorsing Hicks today as someone who “delivers real results for working families,” citing his work to raise Los Angeles’ minimum wage when he ran the LA Federation of Labor.
While Hicks has relatively shallow roots in the 2nd Assembly District, he has drawn on a deep roster of powerful backers as he vies with other Democrats for a safe blue seat. Outgoing incumbent Assemblymember Jim Wood backed Hicks as his successor, and major labor groups have gotten on board. Unions and dentists have pumped $275,000 to date into a pro-Hicks committee, and he has raised more than $450,000 since launching last year.
FIRST IN PLAYBOOK: HARDER’S HAVEN — Rep. Josh Harder, a Central Valley Democrat who has called for the government to stop wealthy people from dodging taxes, has thousands of dollars in funds based in the offshore tax haven of the Cayman Islands, according to financial disclosures, our colleague Daniel Lippman reports.
Harder owns between $15,000 and $50,000 of BVA Fund IX, a feeder fund into Bessemer Venture Associates IX LP, and between $1,000 and $15,000 in BVA Fund VIII, a feeder fund into Bessemer Venture Associates VIII LP, according to his 2022 personal financial disclosure. Both funds are domiciled in the Caymans, according to the funds’ profiles on Pitchbook. The representative also reported earning between $5,000 and $15,000 that year in “partnership income” from his investment in the first fund. Harder got the stakes in the funds as part of his employment when he worked at the global venture capital firm Bessemer Venture Partners before he was elected to Congress. The Caymans, which don’t have a corporate tax, are regularly used by multinational companies to avoid paying taxes. But there is no indication that Bessemer Venture Partners violates U.S. tax laws by having some of its funds based in the islands.
Harder has repeatedly railed on social media against rich people avoiding taxes and in a June 2021 press release he called on the IRS to close tax loopholes so billionaires could pay “their fair share.”
Harder’s office said his job at Bessemer was to make investments in companies in exchange for an equity stake, and that he had no control of where the funds are located. “Rep. Harder has never bought, sold, or traded a single stock while in office,” Harder spokesperson Jen Fox said in a statement. “He has no control over funds from his old career and has never and will never take a dime of corporate PAC money. Josh will continue being a leader for campaign finance reform including banning members from ever trading stocks or accepting corporate PAC money.”
A Bessemer spokesperson said in a statement that all Bessemer investors every year are provided with Schedule K-1s, which report taxable income to be included in their annual tax return.
— Assembly Speaker Robert Rivas will sit down for a conversation with the Public Policy Institute of California today in downtown Sacramento to discuss “his priorities as a legislative leader and his vision for California’s future.” The speaker has been a bit coy about his vision for the body since taking over in July, so we’ll be listening closely for details.
— Vice President Kamala Harris will travel to Sacramento on Thursday to deliver remarks at the California State Legislature Democratic Caucus Reception.
— The Los Angeles Times laid off at least 115 employees yesterday, firing some of the state’s most talented and ambitious journalists and closing the Times’ Washington bureau in an election year. Its ownership received fierce pushback from the public, including many lawmakers. (POLITICO)
— The Biden administration has quietly pushed back against a plan by the University of California to allow thousands of young people without legal immigration status to hold campus jobs, our Blake Jones scoops. (POLITICO)
— Ousted San Francisco District Attorney Chesa Boudin delivers a harsh assessment of the city’s “hard turn to the right” and his successor’s attempted fentanyl crackdown in an interview with Jeremy B. White. (POLITICO)
— Former Dodgers star Steve Garvey was widely panned for his lackluster Senate debate performance Monday night. But don’t miss this especially hysterical take from Jack Ohman. (San Francisco Chronicle)
BIRTHDAYS — Reps. Mike Thompson (D-Calif.), John Garamendi (D-Calif.) and Lou Correa (D-Calif.) … (was Tuesday): Antonio Villaraigosa … Adam Mosseri … Mark Boal
TRANSITIONS — Chuck Bell, of Bell, McAndrews & Hiltachk, announced his retirement Tuesday.
SAY IT AIN’T SO — Another longtime Capitol eatery is, sadly, closing its doors. A flyer on the door of Chicory Coffee & Tea states it will permanently close on Feb. 1. And we were still recovering from the closure of Ambrosia Cafe.
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