Judge OKs nearly $25 billion for PG&E fire victims, insurers
From the AP's MICHAEL LIEDTKE: "A federal bankruptcy judge on Tuesday approved two Pacific Gas & Electric settlements totaling $24.5 billion to help pay the losses suffered by homeowners, businesses and insurers in the aftermath of catastrophic Northern California wildfires that sent the nation’s largest utility into a financial morass."
"The decision by U.S. Bankruptcy Judge Dennis Montali at the end of a five-hour court hearing bolsters PG&E’s chances of following its preferred path for getting out of bankruptcy by a make-or-break June 30 deadline. Montali also handed the utility another victory by rejecting attempts by a competig group to offer an alternative proposal to steer PG&E out of bankruptcy instead of the company’s plan."
"Despite the strides made Tuesday, PG&E still faces huge obstacles."
READ MORE on PG&E: Regulators reach $1.6-billion proposed settlement with PG&E -- JACLYN COSGROVE, LA Times; PG&E, state utility regulator agree to $1.675 billion wildfire settlement -- ROLAND LI, Chronicle; Judge OKs $13.5 billion PG&E settlement with fire victims’ lawyers -- J.D. MORRIS, Chronicle; PG&E Reaches Deal With Regulators but Faces More Hurdles; What now for PG&E? -- DAN WALTERS, CalMatters
They claimed they lost everything in the Camp Fire. Federal investigators say it’s a lie
From the SacBee's TONY BIZJAK and JARED GILMOUR: "Federal prosecutors have filed fraud indictments against six Northern California residents accusing them of falsely claiming they lost their homes in the Camp Fire in Butte County a year ago – including charges against a woman who tearfully told reporters she had to evacuate her trailer so quickly that she left her dentures soaking in a bowl."
"That woman, Deborah Frances Laughlin, 64, was living in Willows, far from the fire, and was in fact in jail at the time, according to an indictment filed in Sacramento federal court by U.S. Attorney McGregor Scott."
"Scott’s office said in its court filings that it may introduce several news media articles and broadcasts as evidence, including an interview Laughlin did with Capital Public Radio a month after the fire in which she said that she had stayed at three different evacuation shelters since the fire started and that she had been diagnosed with leukemia."
State's surgeon general settling in
From CHUCK MCFADDEN in Capitol Weekly: "California’s head cheerleader on improving statewide health says it’s all about “bringing people together.”
"And after almost a year on the job as the state’s first surgeon general, Dr. Nadine Burke Harris exudes optimism, saying she has enjoyed an “absolutely phenomenal outpouring of support” from various factions of California’s vast health care sector."
"Harris, 44, a San Francisco Democrat, is a nationally recognized expert on the effects that childhood trauma (Adverse Childhood Experiences, or ACEs) has on victims during their entire lives – even into old age. She was appointed to the position in January by Gov. Gavin Newsom. California is the fourth state to have a surgeon general, joining Arkansas, Pennsylvania and Florida. Michigan eliminated the position in 2010."
Judge allows Ghost Ship families to move forward with civil case against PG&E
From the Chronicle's J.D.MORRIS and MEGAN CASSIDY: "Victims of the 2016 Ghost Ship warehouse fire and their families can pursue their civil case against Pacific Gas and Electric Co. in state court, the judge overseeing the company’s bankruptcy case decided Tuesday."
"But any money they recover from PG&E, either through a trial or a mediated settlement, must be tied to the company’s insurance proceeds, U.S. Bankruptcy Judge Dennis Montali said at a hearing in San Francisco."
"PG&E had previously announced that Ghost Ship claims would be resolved as part of a settlement deal it reached with attorneys for fire victims involved in the bankruptcy case. Montali was set to consider that $13.5 billion deal later Tuesday, but Ghost Ship victims’ attorneys clarified at the hearing that they want to collect from PG&E’s insurance. The clarification satisfied Montali."
Freelance journalists file suit alleging AB5 is unconstitutional
From the LAT's SUHAUNA HUSSAIN: "Organizations representing freelance journalists are mounting a legal challenge to a new California law that aims to rein in companies’ use of independent contractors by placing certain restrictions on contract work."
"Under the state’s landmark labor law AB5, which goes into effect Jan. 1, news outlets can publish no more than 35 pieces per year from an individual freelance writer before that journalist must be classified as a part- or full-time employee. Some freelancers worry publishers will let them go rather than convert them to employees — a designation that guarantees some benefits and protections."
"One day after Vox Media announced that it will cut hundreds of freelance writers living in California or covering California sports teams, two freelancer groups filed a lawsuit in federal court in Los Angeles alleging that AB5 unconstitutionally restricts free speech and the media. The groups — the American Society of Journalists and Authors and the National Press Photographers Association — are represented pro bono by the libertarian Pacific Legal Foundation."
'They’ve been blindsided’: Silicon Valley wakes up to Sacramento
From KATY MURPHY, Politico: " The powerful tech giants of Silicon Valley may wield some of the biggest lobbying budgets in Washington, but they have been comparatively absent in their home state’s capital — where they are now on the defensive."
"California caught the world by surprise last year when it passed the nation’s strongest data privacy law, instantly making Sacramento one of the most important regulators of global tech. As members of the California legislature forged the deal on a defining challenge of the digital age, the internet companies were slow to awaken to the threat, and brought few of their considerable resources to bear."
"The combined lobbying firepower of Google, Facebook and two major tech trade associations amounted to just $235,000 in the three months leading up to the vote, compared with $3 million from the four biggest oil interests. Facebook, then mired in the Cambridge Analytica scandal, spent less than $18,000 that quarter, according to disclosure records."
Auditor: California budget system overhaul will cost $1B
From AP: "The cost of California’s vast overhaul of its budget and financial accounting system has ballooned to over $1 billion while next year’s deadline for completing the project is unrealistic, a state auditor’s report said Tuesday."
"The Financial Information System for California (FI$Cal) was first envisioned in 2005. It would combine diverse accounting, budgeting, cash management and procurement operations into a single modernized system."
"But the project budget has increased by more than $400 million since 2012. The latest plan update this year ignores potentially tens of millions of dollars in additional expenses, such as staffing, related to the transition from older systems to the new one, State Auditor Elaine M. Howle wrote in a letter to Gov. Gavin Newsom and the state Assembly and Senate leaders."
California analysts urge marijuana tax based on potency
From AP's MICHAEL R. BLOOD in the U-T: "California analysts Tuesday recommended scrapping the state’s often-criticized system for taxing legal marijuana and replacing it with one hitched to the potency of products."
"In other words, the stronger the smoke, the more you pay."
"The proposal comes as legal businesses have been pleading with the Legislature for a tax cut, blaming hefty tax rates imposed by state and local governments for driving consumers into the thriving illegal market. In some areas, the combined tax rates on legal pot can approach nearly 50%."
Air district whistle-blowers awarded $4 million in records-destruction case
From the Chronicle's MICHAEL CABANATUAN: "Two former Bay Area Air Quality Management District employees who said they were retaliated against after objecting to the illegal destruction of pollution records will be paid $4 million to settle a whistle-blower lawsuit."
"Michael Bachmann, a manager in charge of retaining records, and Sarah Steele, who was assigned to Bachmann’s team, complained that the district was destroying pollution records in violation of district policy and state and federal law as it prepared to move its headquarters in 2016."
"The air district regulates sources of air pollution in the Bay Area, including monitoring and enforcing violations by refineries and other manufacturing plants. Records of violations and fines were among both paper and electronic records that were destroyed, Bachmann and Steele said."
