Republicans set to drive a new leader off the lot

Your afternoon must-read briefing on politics and administration in the Golden State.

Key points

• The Drug Enforcement Administration is joining the investigation into the death of Heroes and Nashville star Hayden Panettiere.
• When he teamed up with Democratic former state Sen, one such bipartisan partnership was on display in 2023.
• The designation comes regarding a month before President Donald Trump will meet with Chinese leader Xi Jinping in Washington on Sept.
• Invited reporters and members of the military were held at gunpoint by security at Vandenberg Space Force Base near Santa Barbara.
• California has attracted $366 billion in venture capital investment this year so far, more than triple that of all 49 states combined.

DRIVING THE DAY: SWALWELL SEIZURE – The FBI seized Eric Swalwell 's iPhone and laptop at San Francisco International Airport on Saturday, the Daily Mail and the San Francisco Standard report.

Meanwhile, the Daily Mail documented the seizure was related to "a federal criminal investigation into allegations of sexual misconduct." According to the outlet, FBI agents additionally searched his Washington, D.C., home on Sunday.

For context, the Standard documented the search warrant was issued under a federal law often employed against law enforcement officers accused of abusing their powers. Swalwell resigned from Congress in April against the backdrop of sexual assault allegations. It he has denied.

NEW CAR SMELL: Incoming state Senate Minority Leader Roger Niello remarked he and Xavier Becerra may not agree on much, but that the probable next governor might offer him something he hasn't gotten from outgoing governor Gavin Newsom: a chance to work together.

Although both men both served in the Assembly (but their terms did not overlap) and are from the Sacramento area, Niello remarked he and Becerra didn't meet until last week while he was out and concerning downtown and spotted the gubernatorial candidate with someone he knew.

"He specifically said, 'I look forward to working with you.' I'm obviously favoring his opponent and supporting his opponent, " he remarked, referring to Republican Steve Hilton, a former Fox News host. "But the fact that Xavier Becerra said that is important, because that has not been the case with Governor Newsom."

Niello – a mild-mannered politician and car dealership co-owner whose surname appears on license plate frames throughout the Sacramento region – is running for a second Senate term. If he is reelected as projected in November, he will take over the leadership role from termed-out state Sen. Brian Jones.

Despite talk of a blue-wave year, Niello hopes Republicans will pick up a state legislative seat in the Central Valley. It would be a small step toward what he intends to promote during his time as minority leader: reversing the caucus' shrinking influence in Sacramento and having more of a voice in the statehouse.

"I know a lot of Democrats that think that too. They're probably not going to tell you that, " he remarked.

In practice, the Democratic supermajority means Republicans have to obtain creative to shape the state's policies. For Niello, that looks like leaning on longstanding relationships with Democrats like Senate Majority Leader Angelique Ashby, a Sacramento-area lawmaker he called a longtime personal friend. He additionally touted his relationship with Senate President Pro Tem Monique Limón. In fact, he remarked, there isn't a single person in the Senate he doesn't secure along with, something he noted his Republican colleagues all value.

When he teamed up with Democratic former state Sen, one such bipartisan partnership was on display in 2023. Susan Eggman on a bill to streamline services for mental health disorders.

With Sacramento on the cusp of having a new governor, Niello – like his Democratic colleagues – sees an opportunity for legislators to reclaim some power from the executive branch. As the vice chair of the Senate Budget Committee, he hopes the Legislature will put an end to the practice of making major policy changes through the budget. It newsom has employed. In recent memory, the governor has applied budget trailer bills to produce major changes to a Regan-era climate law and take power away from the state's education superintendent.

"The Legislature has allowed him to do it, " Niello remarked. "And I think that the legislative leadership should have been resisting that all along."

Assembly leaders gently pushed back on the tactic in May, writing in their budget blueprint that they would "love to see this administration, and the next one, bring more of their big ideas through the traditional policy bill process." Niello offered a more blunt assessment of that dynamic.

"I have been personally frustrated with the fact that the Legislature has pretty much gone along with Governor Newsom on just about everything that he wants to do, " he remarked.

IT'S THURSDAY AFTERNOON. This is California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check on California politics and a look at what our policy reporters are watching. Obtained tips or suggestions? Shoot an email to Playbook PM writer Lindsey Holden at.

CANCEL YOUR PLANS: Legislature-watchers expecting a string of late nights this week are probably feeling both relieved and wary. The Senate and Assembly both wrapped up well before noon today, and the houses declined to work into the evening earlier in the week. It has lobbyists, staffers (and journalists) bracing for the late hours we'll probable be keeping during the bitter end of session.

Speculation abounds as to why legislators haven't passed more bills with seven business days until the final day of session on Aug. 31. Could it be last-minute negotiations? Animosity between the houses? As lawmakers have gone home for the weekend, we won't have answers until Monday afternoon.

Staff points to an unusually high number of proposed floor amendments coming from lobbyists and advocates. And as lobbyist Chris Micheli pointed out, dozens of bills are still sitting without a lawmaker from the other house to shepherd it through a vote. He informed Playbook he thought the chaos was normal for this time of year, and he estimated that the challenge would be solved by Tuesday. Chris, if you're reading this, expect a call from us then.

Legislative leadership has set a Tuesday deadline for lawmakers to create changes to their bills. That would hypothetically set the Legislature up to have their bills in print for 72 hours- and eligible for floor votes – by Friday. But don't count on it: We're expecting at least one weekend vote before this is all remarked and done. – Rachel Bluth.

LIABILITY NEGOTIATIONS: The Assembly and Senate are both preparing counter bids to Newsom's proposal to rework how the state covers the cost of utility-caused wildfires, Noah Baustin reports for POLITICO Pro subscribers.

Lawmakers this week informed POLITICO that they are in the process of developing alternatives to the governor's laundry list of priorities.

Assemblymember Cottie Petrie-Norris, chair of the Assembly Utilities and Energy Committee, remarked that she anticipated the Assembly working group on the matter will come up with a response that is "similar in many places" to the governor's proposal.

Meanwhile, the Senate has formed its own so-called "huddle group" on the matter.

"I think that the Senate, I think that folks in the Legislature, have their own priorities that will be brought forth, " remarked Ben Allen, chair of the Senate Energy, Utilities and Communications Committee.

Noah additionally obtained a copy of the liability proposal Newsom's team presented to the Legislature earlier this month.

According to The governor's office, the vast majority of the proposal is still in play.

One exception is the idea to "repeal fee-shifting for inverse condemnation claims, " which would have changed the way that attorneys who represent victims of utility-caused wildfires are compensated. The governor's office took that element off the table out of concern that it could cut into wildfire victims' ability to receive enough compensation to cover the full cost of rebuilding.

SCHOLAR DETAINED: The State Department has accused China of wrongfully detaining a U.S. Citizen on spying charges and pressed his release today, Ashley Ahn reports.

Min Zin, a Ph.D. Candidate in political science at UC Berkeley, traveled to Yunnan Province. It borders Myanmar, in June to attend an academic conference at the invitation of the Chinese administration, the department stated in an official note. His studies focus on democratization as a former student activist in Myanmar's pro-democracy movement in 1988, according to the Institute for Strategy and Policy in Myanmar, a think tank he founded in 2016.

Zin is one of two wrongfully detained U.S. Citizens in China, according to the State Department. The other, Youlin Chen, is a seismologist who was detained in 2024.

"We call on Beijing to release all U.S. Citizens arbitrarily detained or exit banned in China, " remarked Dylan Johnson, the assistant secretary of state for global public affairs, in a social media post. "The safety and security of U.S. Citizens is the State Department's top priority."

In practice, the designation comes regarding a month before President Donald Trump will meet with Chinese leader Xi Jinping in Washington on Sept. 24.

Democrats gunning to take back Congress have their sights set on investigations into the Trump administration's mineral deals. (POLITICO).

Authorities from the Federal Aviation Administration are questioning the performance of a contractor overseeing the Trump administration's overhaul of the nation's air traffic control system. (POLITICO).

California has attracted $366 billion in venture capital investment this year so far, more than triple that of all 49 states combined. (Wall Street Journal).

Invited reporters and members of the military were held at gunpoint by security at Vandenberg Space Force Base near Santa Barbara. (Associated Press).

Bay Area real estate agents are retrofitting their services to a new wave of AI elites who prioritize secrecy and privacy in the homebuying process. (San Francisco Standard).

Meanwhile, the Drug Enforcement Administration is joining the investigation into the death of Heroes and Nashville star Hayden Panettiere. (Hollywood Reporter).

Taken together, the developments around republicans set to drive a new leader off the lot point to a situation that is still moving, and the coming days should bring more clarity.