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"content": "\u003cp>A mayor from a Bay Area city that tried to land big tech companies might be starting to look pretty smart after Amazon canceled its plans for a New York City headquarters. Activists and local politicians said New York had given up too much for too little.\u003c/p>\n\u003cp>But it doesn’t have to be that way, according to San Jose Mayor Sam Liccardo, who refused to offer Amazon and another tech giant, Google, any incentives to locate in his city.\u003c/p>\n\u003cp>Amazon’s decision to \u003ca href=\"https://www.npr.org/2019/02/14/694740118/amazon-drops-plans-for-new-york-headquarters\">back out\u003c/a> of the \u003ca href=\"https://www.kqed.org/news/11713070/google-commences-1b-expansion-in-new-york-city\" target=\"_blank\" rel=\"noopener\">New York City plan\u003c/a> followed opposition from activists and local politicians over the hefty tax breaks and incentives the company would’ve gotten when it moved in.\u003c/p>\n\u003caside class=\"pullquote alignright\">‘If you’re offering incentives, those are dollars you could use to be building out transit, to … supporting an ecosystem of talent development.’\u003ccite>San Jose Mayor Sam Liccardo\u003c/cite>\u003c/aside>\n\u003cp>As big tech companies expand nationwide, cities continue to grapple with how to make sure they are benefiting. San Jose is one example.\u003c/p>\n\u003cp>Last year, when Amazon was looking for a city \u003ca href=\"https://www.npr.org/sections/alltechconsidered/2017/09/18/551773552/cities-try-convincing-amazon-they-re-ready-for-its-new-headquarters\">to house its second headquarters\u003c/a>, Liccardo threw San Jose’s hat in the ring. But unlike the various cities that promised generous tax incentives, San Jose offered Amazon no money.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“If you’re offering incentives, those are dollars you could use to be building out transit, to … supporting an ecosystem of talent development,” Liccardo says.\u003c/p>\n\u003cp>When Amazon ultimately picked New York for one of its new campuses, many activists said it made no sense for one of the world’s wealthiest companies to get gig tax breaks and other incentives. It caused such a local outrage, \u003ca href=\"https://www.npr.org/2019/02/14/694740118/amazon-drops-plans-for-new-york-headquarters\">Amazon announced it was pulling out\u003c/a>.\u003c/p>\n\u003cp>“The lesson for cities really ought to be, don’t take the bait. And don’t even offer the bait,” Liccardo says.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11710256/the-google-land-rush\">The Google Land Rush\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11710256/the-google-land-rush\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/wp-content/uploads/sites/10/2018/12/welcometo_120518_final-1020x649.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Which is not to say he doesn’t want Big Tech headquartered in San Jose — Adobe, Cisco and eBay are based there.\u003c/p>\n\u003cp>“We’re the only major city in the United States that actually has a smaller daytime population than nighttime population,” Liccardo says. “And, as a result, our residents spend a lot of time commuting. We’re right up there with the worst cities in commutes and obviously it drives up the housing costs. And so we get the worst of both worlds.”\u003c/p>\n\u003cfigure id=\"attachment_11726713\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-800x1117.jpg\" alt=\"San Jose Mayor Sam Liccardo.\" width=\"800\" height=\"1117\" class=\"size-medium wp-image-11726713\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-800x1117.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-160x223.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-1020x1424.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-860x1200.jpg 860w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400.jpg 1400w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">San Jose Mayor Sam Liccardo. \u003ccite>(Tony Avelar/Invision/AP)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Liccardo says when he was approached by Google, which was interested in building a campus in San Jose, the company didn’t ask for incentives and his government didn’t offer any. Rather, the mayor says the city is requiring that 25 percent of the housing built around the campus be rent-restricted and affordable. Like most of the Bay Area, the cost of living in San Jose has skyrocketed, largely driven by the tech boom.\u003c/p>\n\u003cp>Google, which is headquartered nearby Mountain View, is projected to bring \u003ca href=\"https://www.mercurynews.com/2018/11/28/google-village-could-bring-24000-jobs-to-downtown-san-jose-study/\">tens of thousands of jobs\u003c/a> to San Jose. And Liccardo says the company agreed to fees on development to help fund affordable housing.\u003c/p>\n\u003cp>Google is planning to develop as much as 8 million square feet in downtown San Jose. The city lacks the allure of San Francisco or neighboring Palo Alto, so it’s not hard to see why some are so excited to develop it.\u003c/p>\n\u003cp>But plenty of locals and activists are not happy with Google moving in.\u003c/p>\n\u003cp>Jeff Buchanan, the policy director at Working Partnerships USA, a community labor coalition, says that even if San Jose isn’t offering big tax breaks, that doesn’t mean Google’s move will be good for the city.\u003c/p>\n\u003cp>“Maybe we’re not offering billions in tax rebates,” he says. “But we’re offering really valuable public land in an area where prices are going through the roof. Google is just on the beneficial side of things going their way, without having to give anything back.”\u003c/p>\n\u003cp>Like many activists in the various cities where tech is expanding, Buchanan has questions about the details: How exactly is housing going to be kept affordable? And, of all those jobs coming to town, how many will go to locals?\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11723268/details-emerge-on-san-joses-100-million-pledge-to-build-more-affordable-housing\">Details Emerge on San Jose’s $100 Million Pledge to Build More Affordable Housing\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11723268/details-emerge-on-san-joses-100-million-pledge-to-build-more-affordable-housing\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/wp-content/uploads/sites/10/2019/02/67e331_eab4d73496c2473f9957aefb8a8fe1a9mv2_d_4000_2304_s_2.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>“When you look at Google’s workforce,” Buchanan says, “only about \u003ca href=\"https://diversity.google/annual-report/\">7 percent\u003c/a> are either Latino or African-American. You look at the population of San Jose, and it just looks incredibly different than who it is that Google is actually hiring.”\u003c/p>\n\u003cp>Expensive housing has been a problem for people like Joseph Chavez. A few years ago, it was so bad that his family — like so many others — had to leave San Jose.\u003c/p>\n\u003cp>“The prices are so outrageous, we’ve got to move to the Central Valley to actually have affordable homes,” he explains. “So with Google coming here, it might be a bad idea. Rent’s going to go sky high.”\u003c/p>\n\u003cp>But Chavez works in construction, and he’s hoping to work on the new San Jose Google site. “More jobs means more opportunities. More opportunity means everybody gets to eat. If it pays well, you might be able to make it,” he says.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Whether he’ll be able to make it in San Jose after the Google campus gets built, that’s an open question.\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2019 NPR. To see more, visit \u003ca href=\"https://www.npr.org\">https://www.npr.org\u003c/a>.\u003cimg decoding=\"async\" src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=This+City+Told+Amazon+And+Google%3A+No+Incentives+For+You&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A mayor from a Bay Area city that tried to land big tech companies might be starting to look pretty smart after Amazon canceled its plans for a New York City headquarters. Activists and local politicians said New York had given up too much for too little.\u003c/p>\n\u003cp>But it doesn’t have to be that way, according to San Jose Mayor Sam Liccardo, who refused to offer Amazon and another tech giant, Google, any incentives to locate in his city.\u003c/p>\n\u003cp>Amazon’s decision to \u003ca href=\"https://www.npr.org/2019/02/14/694740118/amazon-drops-plans-for-new-york-headquarters\">back out\u003c/a> of the \u003ca href=\"https://www.kqed.org/news/11713070/google-commences-1b-expansion-in-new-york-city\" target=\"_blank\" rel=\"noopener\">New York City plan\u003c/a> followed opposition from activists and local politicians over the hefty tax breaks and incentives the company would’ve gotten when it moved in.\u003c/p>\n\u003caside class=\"pullquote alignright\">‘If you’re offering incentives, those are dollars you could use to be building out transit, to … supporting an ecosystem of talent development.’\u003ccite>San Jose Mayor Sam Liccardo\u003c/cite>\u003c/aside>\n\u003cp>As big tech companies expand nationwide, cities continue to grapple with how to make sure they are benefiting. San Jose is one example.\u003c/p>\n\u003cp>Last year, when Amazon was looking for a city \u003ca href=\"https://www.npr.org/sections/alltechconsidered/2017/09/18/551773552/cities-try-convincing-amazon-they-re-ready-for-its-new-headquarters\">to house its second headquarters\u003c/a>, Liccardo threw San Jose’s hat in the ring. But unlike the various cities that promised generous tax incentives, San Jose offered Amazon no money.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“If you’re offering incentives, those are dollars you could use to be building out transit, to … supporting an ecosystem of talent development,” Liccardo says.\u003c/p>\n\u003cp>When Amazon ultimately picked New York for one of its new campuses, many activists said it made no sense for one of the world’s wealthiest companies to get gig tax breaks and other incentives. It caused such a local outrage, \u003ca href=\"https://www.npr.org/2019/02/14/694740118/amazon-drops-plans-for-new-york-headquarters\">Amazon announced it was pulling out\u003c/a>.\u003c/p>\n\u003cp>“The lesson for cities really ought to be, don’t take the bait. And don’t even offer the bait,” Liccardo says.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11710256/the-google-land-rush\">The Google Land Rush\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11710256/the-google-land-rush\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/wp-content/uploads/sites/10/2018/12/welcometo_120518_final-1020x649.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Which is not to say he doesn’t want Big Tech headquartered in San Jose — Adobe, Cisco and eBay are based there.\u003c/p>\n\u003cp>“We’re the only major city in the United States that actually has a smaller daytime population than nighttime population,” Liccardo says. “And, as a result, our residents spend a lot of time commuting. We’re right up there with the worst cities in commutes and obviously it drives up the housing costs. And so we get the worst of both worlds.”\u003c/p>\n\u003cfigure id=\"attachment_11726713\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-800x1117.jpg\" alt=\"San Jose Mayor Sam Liccardo.\" width=\"800\" height=\"1117\" class=\"size-medium wp-image-11726713\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-800x1117.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-160x223.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-1020x1424.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400-860x1200.jpg 860w, https://cdn.kqed.org/wp-content/uploads/sites/10/2019/02/ap_454227697688_enl-ab56b9778e011bcd7ad96d8c9cba597df4712bef-s1400.jpg 1400w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">San Jose Mayor Sam Liccardo. \u003ccite>(Tony Avelar/Invision/AP)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Liccardo says when he was approached by Google, which was interested in building a campus in San Jose, the company didn’t ask for incentives and his government didn’t offer any. Rather, the mayor says the city is requiring that 25 percent of the housing built around the campus be rent-restricted and affordable. Like most of the Bay Area, the cost of living in San Jose has skyrocketed, largely driven by the tech boom.\u003c/p>\n\u003cp>Google, which is headquartered nearby Mountain View, is projected to bring \u003ca href=\"https://www.mercurynews.com/2018/11/28/google-village-could-bring-24000-jobs-to-downtown-san-jose-study/\">tens of thousands of jobs\u003c/a> to San Jose. And Liccardo says the company agreed to fees on development to help fund affordable housing.\u003c/p>\n\u003cp>Google is planning to develop as much as 8 million square feet in downtown San Jose. The city lacks the allure of San Francisco or neighboring Palo Alto, so it’s not hard to see why some are so excited to develop it.\u003c/p>\n\u003cp>But plenty of locals and activists are not happy with Google moving in.\u003c/p>\n\u003cp>Jeff Buchanan, the policy director at Working Partnerships USA, a community labor coalition, says that even if San Jose isn’t offering big tax breaks, that doesn’t mean Google’s move will be good for the city.\u003c/p>\n\u003cp>“Maybe we’re not offering billions in tax rebates,” he says. “But we’re offering really valuable public land in an area where prices are going through the roof. Google is just on the beneficial side of things going their way, without having to give anything back.”\u003c/p>\n\u003cp>Like many activists in the various cities where tech is expanding, Buchanan has questions about the details: How exactly is housing going to be kept affordable? And, of all those jobs coming to town, how many will go to locals?\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11723268/details-emerge-on-san-joses-100-million-pledge-to-build-more-affordable-housing\">Details Emerge on San Jose’s $100 Million Pledge to Build More Affordable Housing\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11723268/details-emerge-on-san-joses-100-million-pledge-to-build-more-affordable-housing\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/wp-content/uploads/sites/10/2019/02/67e331_eab4d73496c2473f9957aefb8a8fe1a9mv2_d_4000_2304_s_2.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>“When you look at Google’s workforce,” Buchanan says, “only about \u003ca href=\"https://diversity.google/annual-report/\">7 percent\u003c/a> are either Latino or African-American. You look at the population of San Jose, and it just looks incredibly different than who it is that Google is actually hiring.”\u003c/p>\n\u003cp>Expensive housing has been a problem for people like Joseph Chavez. A few years ago, it was so bad that his family — like so many others — had to leave San Jose.\u003c/p>\n\u003cp>“The prices are so outrageous, we’ve got to move to the Central Valley to actually have affordable homes,” he explains. “So with Google coming here, it might be a bad idea. Rent’s going to go sky high.”\u003c/p>\n\u003cp>But Chavez works in construction, and he’s hoping to work on the new San Jose Google site. “More jobs means more opportunities. More opportunity means everybody gets to eat. If it pays well, you might be able to make it,” he says.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Whether he’ll be able to make it in San Jose after the Google campus gets built, that’s an open question.\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2019 NPR. To see more, visit \u003ca href=\"https://www.npr.org\">https://www.npr.org\u003c/a>.\u003cimg decoding=\"async\" src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=This+City+Told+Amazon+And+Google%3A+No+Incentives+For+You&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Instacart Ends Controversial Tip Policy; DoorDash and Amazon Flex Don't",
"title": "Instacart Ends Controversial Tip Policy; DoorDash and Amazon Flex Don't",
"headTitle": "The California Report | KQED News",
"content": "\u003cp>When you tip someone, you assume the money you're leaving goes directly to them as a bonus on top of what they're being paid as your bartender, cab driver or waiter. You don't assume the company they work for would then decide to pay them less or more based on what you tip.\u003c/p>\n\u003cp>But this is exactly what was happening at the food delivery company Instacart, and what still seems to be happening at DoorDash and Amazon Flex.\u003c/p>\n\u003cp>In a statement, DoorDash defended its policy as transparent and supported by \"Dashers\" — what it calls its food delivery workers. Amazon Flex did not respond to requests for comments about how they're handling tips and compensation.\u003c/p>\n\u003cp>We know how Instacart was handling tips because, under pressure from workers and media reports, the company publicly reversed its policies in early February. This was after Instacart used the complexity of its payment structure to obfuscate how it was using tips to offset worker compensation.\u003c/p>\n\u003cp>From the outside, it’s difficult to know how gig platforms like Instacart, DoorDash or Lyft calculate what they pay their workers or how they price their services. In both cases, algorithms crunch real-time data to spit out numbers — and the inner-workings of those algorithms can change at any moment. Pricing and pay is often dynamic, based on conditions like the supply and demand of the gig worker. Both customers and workers have routinely complained about a lack of clarity.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Here’s how Instacart’s payment structure works: When a customer orders groceries, the company computes a payment — what it calls a “batch” — for the worker based on a bunch of factors, like how many items are in the order and how far the worker has to travel to deliver them.\u003c/p>\n\u003cfigure id=\"attachment_11726399\" class=\"wp-caption alignright\" style=\"max-width: 640px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something.jpg\">\u003cimg class=\"size-large wp-image-11726399\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-1020x1814.jpg\" alt=\"\" width=\"640\" height=\"1138\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-1020x1814.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-160x285.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-800x1423.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-675x1200.jpg 675w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something.jpg 1133w\" sizes=\"(max-width: 640px) 100vw, 640px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">An Instacart payment to one of its workers. \u003ccite>(Courtesy of Working Washington)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Customers also enter the tip amount ahead of time, with the idea that if a customer is really dying for kumquats and kombucha, then a high tip can encourage Instacart workers to take and complete the order speedily. The batch amount and the tip are all paid through the customer’s phone to Instacart, which then pays out the total to the worker.\u003c/p>\n\u003cp>The controversy over tips started ramping up for Instacart last October, when it restructured how it paid workers. There was instant backlash, with workers saying they were earning far less than they did before, which Instacart denied.\u003c/p>\n\u003cp>In response to worker complaints, the company set a minimum payment floor of $10 per delivery. That minimum included both the customer tip and the “batch” payment calculated by Instacart. And this is where the slipperiness slips in.\u003c/p>\n\u003cp>Instacart used customer tips to ensure it was meeting its minimum payment floor. If customers tipped low and the worker did not make the $10 minimum per order, then Instacart would chip in extra money to make sure they did. If customers tipped high, then Instacart didn’t kick in additional funds — effectively lowering the actual payment for the job.\u003c/p>\n\u003cp>Workers said it boiled down to this: When they got low tips, they got higher compensation from Instacart; and when they got high tips, they got lower compensation from the company.\u003c/p>\n\u003cp>Through an advocacy group called Working Washington, Instacart workers posted stories and screenshots online detailing their grievances. \u003ca href=\"http://www.workingwa.org/instacart-eighty-cents/\" target=\"_blank\" rel=\"noopener\">In one case\u003c/a>, a worker's actual payment from Instacart for an hour-long delivery was just 80 cents — with a $10 tip from the customer. Instacart said that case was an anomaly. On Jan. 14, over 1,500 workers \u003ca href=\"http://www.workingwa.org/blog/2019/1/14/instacarts-transparent-new-pay-structure-underpayment-tip-theft-and-black-box-algorithms\">signed an open letter\u003c/a> objecting to how the company was compensating them.\u003c/p>\n\u003cfigure id=\"attachment_11726395\" class=\"wp-caption aligncenter\" style=\"max-width: 1270px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/tomfullsmaller.png\">\u003cimg class=\"size-full wp-image-11726395\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/tomfullsmaller.png\" alt=\"\" width=\"1270\" height=\"900\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller.png 1270w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller-160x113.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller-800x567.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller-1020x723.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller-1200x850.png 1200w\" sizes=\"(max-width: 1270px) 100vw, 1270px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">An example posted with Working Washington, including their highlighting, of when Instacart used a tip to offset worker compensation. \u003ccite>(Courtesy of Working Washington)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In an email to KQED in early February, a spokesperson from Instacart said, “Our shoppers also always receive 100% of the tips given to them by our customers.” This is true. But what is also true is those customer tips were being used so the company had to pay less in compensation to meet its promised minimum.\u003c/p>\n\u003cp>DoorDash implemented a similar policy back in 2017. In an email to KQED, a DoorDash spokesperson wrote:\u003c/p>\n\u003cp>\"Based on Dasher input, it was designed to ensure that Dashers are more fairly compensated for every delivery. DoorDash always pays Dashers a fixed base pay, plus 100% of customer tips. We will continue to protect Dashers with boost pay in cases where earnings would otherwise be insufficient to cover the effort. Since implementing this pay model in 2017, Dasher retention and overall satisfaction have increased significantly, while average delivery times have decreased.\"\u003c/p>\n\u003cp>What these companies are doing is essentially what’s called a tip credit, which is legal in most states. It means an employer can pay tipped workers less than minimum wage, as long as the tips bring the workers over the minimum wage threshold. If the tips don’t, then the employer must chip in extra in wages.\u003c/p>\n\u003cp>\u003ca href=\"https://www.nolo.com/legal-encyclopedia/california-laws-tipped-employees.html\">Tip credits are illegal in California.\u003c/a> Employees must be paid minimum wage, and they keep any tips on top of that wage. Employers are not supposed to deduct anything from tips or use them to adjust compensation. In restaurants, non-tipped workers and management are not even supposed to touch the tips — a convention put in place to stop tip theft.\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cstrong>'Tips should always be separate\u003c/strong> from Instacart’s contribution to shopper compensation.'\u003ccite>Apoorva Mehta,\u003cbr>\nInstacart’s CEO\u003c/cite>\u003c/aside>\n\u003cp>However, that doesn't make what Instacart was doing or what DoorDash, and reportedly Amazon Flex, continue to do illegal. That’s because of how the company classifies its workers.\u003c/p>\n\u003cp>Instacart, DoorDash and Amazon Flex all follow the typical gig model used by Lyft, Uber and others. They classify workers as independent contractors, not as employees. This means they are not protected by minimum wage laws and therefore California's law against tip credits. Instacart and other gig companies can change the amount of tips and compensation paid to these workers as they see fit.\u003c/p>\n\u003cp>In the case of Instacart, the blowback from workers and customers was enough that the company decided to revamp its policy.\u003c/p>\n\u003cp>\u003ca href=\"https://medium.com/shopper-news/state-of-pay-doing-right-by-our-shoppers-81de4b66580\" target=\"_blank\" rel=\"noopener\">In an open letter\u003c/a>, Instacart’s CEO, Apoorva Mehta, wrote, “Tips should always be separate from Instacart’s contribution to shopper compensation.” Mehta also said, “All batches will have a higher guaranteed compensation floor for shoppers, paid for by Instacart,” and noted that Instacart would retroactively compensate shoppers for payments when tips had been included to meet minimums.\u003c/p>\n\u003cp>Working Washington has celebrated getting Instacart to change its policies and is trying to use this as a springboard for more organizing among gig workers.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>But DoorDash is still using the same tip model, as is Amazon Flex reportedly, which affects thousands of gig workers. And as long as workers in the gig economy are contractors, then all of their earnings — tips included — will continue to be at the discretion of the company developing the app and setting the algorithms.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>When you tip someone, you assume the money you're leaving goes directly to them as a bonus on top of what they're being paid as your bartender, cab driver or waiter. You don't assume the company they work for would then decide to pay them less or more based on what you tip.\u003c/p>\n\u003cp>But this is exactly what was happening at the food delivery company Instacart, and what still seems to be happening at DoorDash and Amazon Flex.\u003c/p>\n\u003cp>In a statement, DoorDash defended its policy as transparent and supported by \"Dashers\" — what it calls its food delivery workers. Amazon Flex did not respond to requests for comments about how they're handling tips and compensation.\u003c/p>\n\u003cp>We know how Instacart was handling tips because, under pressure from workers and media reports, the company publicly reversed its policies in early February. This was after Instacart used the complexity of its payment structure to obfuscate how it was using tips to offset worker compensation.\u003c/p>\n\u003cp>From the outside, it’s difficult to know how gig platforms like Instacart, DoorDash or Lyft calculate what they pay their workers or how they price their services. In both cases, algorithms crunch real-time data to spit out numbers — and the inner-workings of those algorithms can change at any moment. Pricing and pay is often dynamic, based on conditions like the supply and demand of the gig worker. Both customers and workers have routinely complained about a lack of clarity.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Here’s how Instacart’s payment structure works: When a customer orders groceries, the company computes a payment — what it calls a “batch” — for the worker based on a bunch of factors, like how many items are in the order and how far the worker has to travel to deliver them.\u003c/p>\n\u003cfigure id=\"attachment_11726399\" class=\"wp-caption alignright\" style=\"max-width: 640px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something.jpg\">\u003cimg class=\"size-large wp-image-11726399\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-1020x1814.jpg\" alt=\"\" width=\"640\" height=\"1138\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-1020x1814.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-160x285.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-800x1423.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something-675x1200.jpg 675w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/Ghoulia20bon20-20Julia20something.jpg 1133w\" sizes=\"(max-width: 640px) 100vw, 640px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">An Instacart payment to one of its workers. \u003ccite>(Courtesy of Working Washington)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Customers also enter the tip amount ahead of time, with the idea that if a customer is really dying for kumquats and kombucha, then a high tip can encourage Instacart workers to take and complete the order speedily. The batch amount and the tip are all paid through the customer’s phone to Instacart, which then pays out the total to the worker.\u003c/p>\n\u003cp>The controversy over tips started ramping up for Instacart last October, when it restructured how it paid workers. There was instant backlash, with workers saying they were earning far less than they did before, which Instacart denied.\u003c/p>\n\u003cp>In response to worker complaints, the company set a minimum payment floor of $10 per delivery. That minimum included both the customer tip and the “batch” payment calculated by Instacart. And this is where the slipperiness slips in.\u003c/p>\n\u003cp>Instacart used customer tips to ensure it was meeting its minimum payment floor. If customers tipped low and the worker did not make the $10 minimum per order, then Instacart would chip in extra money to make sure they did. If customers tipped high, then Instacart didn’t kick in additional funds — effectively lowering the actual payment for the job.\u003c/p>\n\u003cp>Workers said it boiled down to this: When they got low tips, they got higher compensation from Instacart; and when they got high tips, they got lower compensation from the company.\u003c/p>\n\u003cp>Through an advocacy group called Working Washington, Instacart workers posted stories and screenshots online detailing their grievances. \u003ca href=\"http://www.workingwa.org/instacart-eighty-cents/\" target=\"_blank\" rel=\"noopener\">In one case\u003c/a>, a worker's actual payment from Instacart for an hour-long delivery was just 80 cents — with a $10 tip from the customer. Instacart said that case was an anomaly. On Jan. 14, over 1,500 workers \u003ca href=\"http://www.workingwa.org/blog/2019/1/14/instacarts-transparent-new-pay-structure-underpayment-tip-theft-and-black-box-algorithms\">signed an open letter\u003c/a> objecting to how the company was compensating them.\u003c/p>\n\u003cfigure id=\"attachment_11726395\" class=\"wp-caption aligncenter\" style=\"max-width: 1270px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/tomfullsmaller.png\">\u003cimg class=\"size-full wp-image-11726395\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/tomfullsmaller.png\" alt=\"\" width=\"1270\" height=\"900\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller.png 1270w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller-160x113.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller-800x567.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller-1020x723.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2019/02/tomfullsmaller-1200x850.png 1200w\" sizes=\"(max-width: 1270px) 100vw, 1270px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">An example posted with Working Washington, including their highlighting, of when Instacart used a tip to offset worker compensation. \u003ccite>(Courtesy of Working Washington)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In an email to KQED in early February, a spokesperson from Instacart said, “Our shoppers also always receive 100% of the tips given to them by our customers.” This is true. But what is also true is those customer tips were being used so the company had to pay less in compensation to meet its promised minimum.\u003c/p>\n\u003cp>DoorDash implemented a similar policy back in 2017. In an email to KQED, a DoorDash spokesperson wrote:\u003c/p>\n\u003cp>\"Based on Dasher input, it was designed to ensure that Dashers are more fairly compensated for every delivery. DoorDash always pays Dashers a fixed base pay, plus 100% of customer tips. We will continue to protect Dashers with boost pay in cases where earnings would otherwise be insufficient to cover the effort. Since implementing this pay model in 2017, Dasher retention and overall satisfaction have increased significantly, while average delivery times have decreased.\"\u003c/p>\n\u003cp>What these companies are doing is essentially what’s called a tip credit, which is legal in most states. It means an employer can pay tipped workers less than minimum wage, as long as the tips bring the workers over the minimum wage threshold. If the tips don’t, then the employer must chip in extra in wages.\u003c/p>\n\u003cp>\u003ca href=\"https://www.nolo.com/legal-encyclopedia/california-laws-tipped-employees.html\">Tip credits are illegal in California.\u003c/a> Employees must be paid minimum wage, and they keep any tips on top of that wage. Employers are not supposed to deduct anything from tips or use them to adjust compensation. In restaurants, non-tipped workers and management are not even supposed to touch the tips — a convention put in place to stop tip theft.\u003c/p>\n\u003caside class=\"pullquote alignright\">\u003cstrong>'Tips should always be separate\u003c/strong> from Instacart’s contribution to shopper compensation.'\u003ccite>Apoorva Mehta,\u003cbr>\nInstacart’s CEO\u003c/cite>\u003c/aside>\n\u003cp>However, that doesn't make what Instacart was doing or what DoorDash, and reportedly Amazon Flex, continue to do illegal. That’s because of how the company classifies its workers.\u003c/p>\n\u003cp>Instacart, DoorDash and Amazon Flex all follow the typical gig model used by Lyft, Uber and others. They classify workers as independent contractors, not as employees. This means they are not protected by minimum wage laws and therefore California's law against tip credits. Instacart and other gig companies can change the amount of tips and compensation paid to these workers as they see fit.\u003c/p>\n\u003cp>In the case of Instacart, the blowback from workers and customers was enough that the company decided to revamp its policy.\u003c/p>\n\u003cp>\u003ca href=\"https://medium.com/shopper-news/state-of-pay-doing-right-by-our-shoppers-81de4b66580\" target=\"_blank\" rel=\"noopener\">In an open letter\u003c/a>, Instacart’s CEO, Apoorva Mehta, wrote, “Tips should always be separate from Instacart’s contribution to shopper compensation.” Mehta also said, “All batches will have a higher guaranteed compensation floor for shoppers, paid for by Instacart,” and noted that Instacart would retroactively compensate shoppers for payments when tips had been included to meet minimums.\u003c/p>\n\u003cp>Working Washington has celebrated getting Instacart to change its policies and is trying to use this as a springboard for more organizing among gig workers.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But DoorDash is still using the same tip model, as is Amazon Flex reportedly, which affects thousands of gig workers. And as long as workers in the gig economy are contractors, then all of their earnings — tips included — will continue to be at the discretion of the company developing the app and setting the algorithms.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"slug": "california-treasurer-urges-congress-to-fully-open-banks-to-marijuana-industry",
"title": "California Treasurer Urges Congress to Fully Open Banks to Marijuana Industry",
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"headTitle": "California Treasurer Urges Congress to Fully Open Banks to Marijuana Industry | KQED",
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"content": "\u003cp>California State Treasurer Fiona Ma is asking Congress to pass legislation to make it easier for banks and credit unions to work with businesses that deal in cannabis.\u003c/p>\n\u003cp>Ma on Wednesday joined bank officials and cannabis advocates at a hearing of the House Subcommittee on Consumer Protection and Financial Institutions about the challenges that cannabis-related businesses face in accessing banking services, since cannabis is still illegal under federal law.\u003c/p>\n\u003cp>She told members of the subcommittee that when she joined California’s Board of Equalization in 2014, she was surprised at how difficult it was for legal marijuana businesses to pay their state sales taxes.\u003c/p>\n\u003cp>“Duffel bags and sometimes suitcases of cash would arrive quarterly at some of our designated offices, and some folks had to drive 350 miles just to pay their taxes,” she said.\u003c/p>\n\u003cp>Ma and the others testifying asked members of the committee to fully open the doors of the U.S. banking system to the legal marijuana industry, a change that supporters say would reduce crime risks and resolve a litany of challenges for cannabis companies, from paying taxes to getting a loan.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Most Americans live in states where marijuana is legally available in some form, including California, which legalized recreational marijuana in 2016 and is the nation’s largest legal pot market.\u003c/p>\n\u003cp>But most banks don’t want anything to do with money from the cannabis industry, for fear it could expose them to legal trouble from the federal government.\u003c/p>\n\u003cp>That conflict has left many growers and sellers in the burgeoning pot industry in a legal dilemma, shutting them out of everyday financial services like opening a bank account or obtaining a credit card. It also has forced many businesses to operate only in cash — sometimes vast amounts — making them ripe targets for crime.\u003c/p>\n\u003cp>Banking, government and industry representatives at the House hearing urged lawmakers to pass a proposal that would allow pot businesses to access loans, lines of credit and other banking services, while sheltering financial institutions from prosecution for handling pot money.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11714984/a-california-backed-marijuana-bank-state-study-says-unlikely\" target=\"_blank\" rel=\"noopener\">A California-backed Marijuana Bank? State Study Says Unlikely\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11714984/a-california-backed-marijuana-bank-state-study-says-unlikely\" target=\"_blank\" rel=\"noopener\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/wp-content/uploads/sites/10/2018/12/RS25526_GettyImages-542220918-qut-1020x678.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>“In California, we have been trying to pass many pieces of legislation to either work around, go around or patch this issue of banking access, and we have come to the conclusion that we really need Congress to act,” Ma said. “Having a safe harbor for banks is probably the most expeditious way of getting more folks out of the black and gray markets and into the legitimate markets.”\u003c/p>\n\u003cp>California lawmakers rejected a proposal last year that would have created a state-backed bank for the marijuana industry, and a \u003ca href=\"https://www.kqed.org/news/11714984/a-california-backed-marijuana-bank-state-study-says-unlikely\" target=\"_blank\" rel=\"noopener\">recent report\u003c/a> commissioned by Ma’s predecessor, John Chiang, found that such a bank would require more than $1 billion in capital investment and fail to be profitable for 25 to 30 years.\u003c/p>\n\u003cp>Ma called federal action a crucial step for the rapidly expanding industry. She cited \u003ca href=\"https://bdsanalytics.com/new-report-legal-marijuana-markets-projected-to-reach-23-4-billion-employ-nearly-a-half-million-americans-by-2022-effective-end-of-federal-prohibition-is-in-sight/\" target=\"_blank\" rel=\"noopener\">another report\u003c/a> that projects consumer spending on legal cannabis in the U.S. will reach $23 billion by 2022, including more than $5 billion in California alone.\u003c/p>\n\u003cp>“It’s critical we accommodate the magnitude of this economic uptick with access to banking for this new state-regulated industry,” Ma told lawmakers.\u003c/p>\n\u003cp>She also noted other ancillary impacts of not having banking access for cannabis businesses, including people not reporting domestic violence for fear of police coming into their homes or businesses. She said people who don’t report their income from cannabis businesses may not be liable for child support or be eligible for full Social Security benefits.\u003c/p>\n\u003cp>“So there’s a lot of social impacts that are also affecting the communities by not having access to banking,” Ma said.\u003c/p>\n\u003cp>Gregory S. Deckard, who spoke on behalf of the Independent Community Bankers of America, said the cloud of legal uncertainty was inhibiting access to banks while creating safety hazards for businesses. The proposal, he said, “would offer the needed clarity” for more financial institutions to welcome the marijuana industry as customers.\u003c/p>\n\u003cp>But others had concerns.\u003c/p>\n\u003cp>Republican Rep. Blaine Luetkemeyer of Missouri said the proposal would create confusion while marijuana remains illegal at the federal level. He questioned how banks would identify criminal operators and pointed to how Congress handled hemp, the low-THC cousin of the cannabis plant, which was removed from the list of federally controlled substances.\u003c/p>\n\u003cp>With the banking legislation, “we are putting the cart before the horse,” he said.\u003c/p>\n\u003cp>Legalization advocates have reason to celebrate that the hearing simply took place, when the proposal — and other similar versions — have languished in the past.\u003c/p>\n\u003cp>“Lawmakers are not being asked to weigh in on whether marijuana should be legal or not. They are simply looking at whether banking services should be available to these businesses in states where it is already legal,” said Mason Tvert of the Marijuana Policy Project, an advocacy group.\u003c/p>\n\u003cp>The number of banks and credit unions willing to handle pot money is growing, but they still represent only a tiny fraction of the industry.\u003c/p>\n\u003cp>The hearing comes days after Oregon Sen. Ron Wyden proposed legislation that would give states a free hand to allow legal cannabis markets without the threat of federal criminal intervention. The proposal would take marijuana off the federal controlled substances list and remove federal criminal penalties for individuals and businesses acting in compliance with state marijuana laws. An identical proposal is pending in the House.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Reporting from Nina Thorsen of KQED and Michael R. Blood of the Associated Press was used in this post.\u003c/em>\u003c/p>\n\n",
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"excerpt": "'We have come to the conclusion that we really need Congress to act,' Treasurer Fiona Ma told lawmakers, after efforts to create a state-backed bank for the marijuana industry sputtered.",
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"title": "California Treasurer Urges Congress to Fully Open Banks to Marijuana Industry | KQED",
"description": "'We have come to the conclusion that we really need Congress to act,' Treasurer Fiona Ma told lawmakers, after efforts to create a state-backed bank for the marijuana industry sputtered.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California State Treasurer Fiona Ma is asking Congress to pass legislation to make it easier for banks and credit unions to work with businesses that deal in cannabis.\u003c/p>\n\u003cp>Ma on Wednesday joined bank officials and cannabis advocates at a hearing of the House Subcommittee on Consumer Protection and Financial Institutions about the challenges that cannabis-related businesses face in accessing banking services, since cannabis is still illegal under federal law.\u003c/p>\n\u003cp>She told members of the subcommittee that when she joined California’s Board of Equalization in 2014, she was surprised at how difficult it was for legal marijuana businesses to pay their state sales taxes.\u003c/p>\n\u003cp>“Duffel bags and sometimes suitcases of cash would arrive quarterly at some of our designated offices, and some folks had to drive 350 miles just to pay their taxes,” she said.\u003c/p>\n\u003cp>Ma and the others testifying asked members of the committee to fully open the doors of the U.S. banking system to the legal marijuana industry, a change that supporters say would reduce crime risks and resolve a litany of challenges for cannabis companies, from paying taxes to getting a loan.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Most Americans live in states where marijuana is legally available in some form, including California, which legalized recreational marijuana in 2016 and is the nation’s largest legal pot market.\u003c/p>\n\u003cp>But most banks don’t want anything to do with money from the cannabis industry, for fear it could expose them to legal trouble from the federal government.\u003c/p>\n\u003cp>That conflict has left many growers and sellers in the burgeoning pot industry in a legal dilemma, shutting them out of everyday financial services like opening a bank account or obtaining a credit card. It also has forced many businesses to operate only in cash — sometimes vast amounts — making them ripe targets for crime.\u003c/p>\n\u003cp>Banking, government and industry representatives at the House hearing urged lawmakers to pass a proposal that would allow pot businesses to access loans, lines of credit and other banking services, while sheltering financial institutions from prosecution for handling pot money.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11714984/a-california-backed-marijuana-bank-state-study-says-unlikely\" target=\"_blank\" rel=\"noopener\">A California-backed Marijuana Bank? State Study Says Unlikely\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11714984/a-california-backed-marijuana-bank-state-study-says-unlikely\" target=\"_blank\" rel=\"noopener\">\u003cimg decoding=\"async\" src=\"https://ww2.kqed.org/wp-content/uploads/sites/10/2018/12/RS25526_GettyImages-542220918-qut-1020x678.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>“In California, we have been trying to pass many pieces of legislation to either work around, go around or patch this issue of banking access, and we have come to the conclusion that we really need Congress to act,” Ma said. “Having a safe harbor for banks is probably the most expeditious way of getting more folks out of the black and gray markets and into the legitimate markets.”\u003c/p>\n\u003cp>California lawmakers rejected a proposal last year that would have created a state-backed bank for the marijuana industry, and a \u003ca href=\"https://www.kqed.org/news/11714984/a-california-backed-marijuana-bank-state-study-says-unlikely\" target=\"_blank\" rel=\"noopener\">recent report\u003c/a> commissioned by Ma’s predecessor, John Chiang, found that such a bank would require more than $1 billion in capital investment and fail to be profitable for 25 to 30 years.\u003c/p>\n\u003cp>Ma called federal action a crucial step for the rapidly expanding industry. She cited \u003ca href=\"https://bdsanalytics.com/new-report-legal-marijuana-markets-projected-to-reach-23-4-billion-employ-nearly-a-half-million-americans-by-2022-effective-end-of-federal-prohibition-is-in-sight/\" target=\"_blank\" rel=\"noopener\">another report\u003c/a> that projects consumer spending on legal cannabis in the U.S. will reach $23 billion by 2022, including more than $5 billion in California alone.\u003c/p>\n\u003cp>“It’s critical we accommodate the magnitude of this economic uptick with access to banking for this new state-regulated industry,” Ma told lawmakers.\u003c/p>\n\u003cp>She also noted other ancillary impacts of not having banking access for cannabis businesses, including people not reporting domestic violence for fear of police coming into their homes or businesses. She said people who don’t report their income from cannabis businesses may not be liable for child support or be eligible for full Social Security benefits.\u003c/p>\n\u003cp>“So there’s a lot of social impacts that are also affecting the communities by not having access to banking,” Ma said.\u003c/p>\n\u003cp>Gregory S. Deckard, who spoke on behalf of the Independent Community Bankers of America, said the cloud of legal uncertainty was inhibiting access to banks while creating safety hazards for businesses. The proposal, he said, “would offer the needed clarity” for more financial institutions to welcome the marijuana industry as customers.\u003c/p>\n\u003cp>But others had concerns.\u003c/p>\n\u003cp>Republican Rep. Blaine Luetkemeyer of Missouri said the proposal would create confusion while marijuana remains illegal at the federal level. He questioned how banks would identify criminal operators and pointed to how Congress handled hemp, the low-THC cousin of the cannabis plant, which was removed from the list of federally controlled substances.\u003c/p>\n\u003cp>With the banking legislation, “we are putting the cart before the horse,” he said.\u003c/p>\n\u003cp>Legalization advocates have reason to celebrate that the hearing simply took place, when the proposal — and other similar versions — have languished in the past.\u003c/p>\n\u003cp>“Lawmakers are not being asked to weigh in on whether marijuana should be legal or not. They are simply looking at whether banking services should be available to these businesses in states where it is already legal,” said Mason Tvert of the Marijuana Policy Project, an advocacy group.\u003c/p>\n\u003cp>The number of banks and credit unions willing to handle pot money is growing, but they still represent only a tiny fraction of the industry.\u003c/p>\n\u003cp>The hearing comes days after Oregon Sen. Ron Wyden proposed legislation that would give states a free hand to allow legal cannabis markets without the threat of federal criminal intervention. The proposal would take marijuana off the federal controlled substances list and remove federal criminal penalties for individuals and businesses acting in compliance with state marijuana laws. An identical proposal is pending in the House.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Reporting from Nina Thorsen of KQED and Michael R. Blood of the Associated Press was used in this post.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "State of the State: 5 Ways Gavin Newsom Made It Clear He’s Not Jerry Brown",
"title": "State of the State: 5 Ways Gavin Newsom Made It Clear He’s Not Jerry Brown",
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"content": "\u003cp>Just a month after his inauguration, Gov. Gavin Newsom used his \u003ca href=\"https://calmatters.org/articles/newsom-state-of-the-state-annotated/\">State of the State speech\u003c/a> Tuesday to make his strongest showing yet that Jerry Brown is no longer in charge.\u003c/p>\n\u003cp>He proposed scaling back two of Brown’s legacy projects — a high-speed train and a pair of tunnels to move water north to south. He rescinded Brown’s deployment of California National Guard troops to the Mexican border. And he voiced support for education and housing policies that Brown generally stayed away from.\u003c/p>\n\u003cp>It’s no shock that Newsom is carving his own path. California’s last several governors took office vowing to right the perceived wrongs of their predecessors. Brown himself, in his first term, was a change agent.\u003c/p>\n\u003cp>But they were Democrats replacing Republicans, or vice versa. Newsom is the first Democrat to follow a Democrat into the California governor’s office in more than a century — and friendship between the Brown and Newsom families \u003ca href=\"https://calmatters.org/articles/commentary/gavin-newsoms-keeping-it-all-in-the-family/\">goes back generations\u003c/a>.\u003c/p>\n\u003cp>And that \u003ca href=\"https://calmatters.org/articles/blog/gavin-newsom-transition-jerry-brown/\">creates a challenge\u003c/a> other recent governors have not faced: Newsom must pay homage to the legacy of his predecessor while also establishing his own vision. It’s not an easy needle to thread — as evidenced by Newsom’s response when asked if he is breaking away from the course Brown set in his two terms in office:\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“We’re building on a lot of the work that’s been done,” he said in a brief interview after the speech. “We’re just being more sober about it, more deliberative about it, more focused, more transparent.”\u003c/p>\n\u003cp>At this early stage in his governorship, here are five key ways Newsom has sought to differentiate himself:\u003c/p>\n\u003ch2>Border Patrol\u003c/h2>\n\u003cp>Early last year, President Trump asked border-state governors to beef up their National Guard troops along the Mexican border. Brown responded by saying California troops wouldn’t enforce immigration laws or “build a new wall.” \u003ca href=\"https://calmatters.org/articles/trump_california/gavin-newsom-says-hes-refuse-trump-on-sending-national-guard-to-the-border/\">But he agreed\u003c/a> to add 400 troops, saying they would focus on combating transnational crime.\u003c/p>\n\u003cp>Newsom \u003ca href=\"https://calmatters.org/articles/newsletters/national-guard-newsom-state-of-state-kamala-harris-caltrans-homeless/\">rolled back Brown’s order\u003c/a> this week, reassigning most of the troops from the border to areas threatened by wildfire and illegal marijuana grows. Those remaining at the border “will focus on stopping criminals smuggling drugs and guns through existing border checkpoints,” Newsom said in his speech. “This is our answer to the White House: No more division, no more xenophobia and no more nativism.”\u003c/p>\n\u003ch2>High-speed rail\u003c/h2>\n\u003cp>Since his first stint as governor in the 1970s, Brown has advocated for a new high-speed train to connect Northern and Southern California. He took steps more recently to support the project by negotiating funding for it from California’s signature climate change program. “I make no bones about it,” \u003ca href=\"https://www.scpr.org/news/2018/01/25/80125/gov-brown-to-lay-out-vision-in-last-state-of-state/\">Brown said last year\u003c/a>. “I like trains, and I like high-speed trains even better.”\u003c/p>\n\u003cp>Newsom said Tuesday that he has “nothing but respect for Governor Brown’s and Governor Schwarzenegger’s ambitious vision.” But he derided the current plan for a train from San Francisco to Los Angeles, saying it “would cost too much and take too long.”\u003c/p>\n\u003cp>Instead, Newsom embraced a more limited rail line, from Merced to Bakersfield. He also announced a new chairman for the rail authority, Lenny Mendonca, and a plan to post rail spending publicly online, a step meant to hold the administration accountable for cost overruns.\u003c/p>\n\u003cp>Republicans, long opposed to the new train, welcomed Newsom’s tack. State Sen. Shannon Grove of Bakersfield, who will soon take over as the Senate Republican leader, thanked Newsom for scaling back the project and making spending on it more transparent. “That was very responsible,” she said. “I’m pleasantly surprised.”\u003c/p>\n\u003ch2>Water\u003c/h2>\n\u003cp>Newsom also wants to scale back Brown’s controversial plan to carve two massive tunnels through the Sacramento-San Joaquin Delta to move water to Southern California. Instead, as he said during the campaign, and reiterated in his speech, he \u003ca href=\"https://www.latimes.com/politics/la-pol-sac-skelton-john-cox-gavin-newsom-california-governor-debate-20181011-story.html\">wants to build one tunnel.\u003c/a>\u003c/p>\n\u003cp>The idea was quickly embraced by Assembly Speaker Anthony Rendon, who said, “I’ve been skeptical of the two-tunnel approach for a while. Rethinking it and retooling it makes a lot of sense.”\u003c/p>\n\u003cp>To help carry out Newsom’s vision, the governor appointed \u003ca href=\"https://www.waterboards.ca.gov/about_us/board_members/\">Joaquin Esquivel\u003c/a> as the new chair of the state water board, replacing Brown’s pick, Felicia Marcus.\u003c/p>\n\u003ch2>Education\u003c/h2>\n\u003cp>Newsom and Brown have very different views when it comes to keeping track of how students are performing in California’s public schools. Brown repeatedly rejected the idea of developing a database to track student performance over time, saying he disagreed with a focus on test scores and feared the data could be abused to support prejudice. Newsom\u003ca href=\"https://calmatters.org/articles/can-california-afford-newsom-education-plan/\"> is embracing\u003c/a> a long-term student database as a way to measure which programs advance student learning.\u003c/p>\n\u003cp>“We need clear and achievable standards of transparency, more information sharing, and accountability for all public schools,” he said in his speech.\u003c/p>\n\u003cp>Newsom used the speech to announce his pick to lead the state Board of Education, naming \u003ca href=\"https://learningpolicyinstitute.org/person/linda-darling-hammond\">Linda Darling-Hammond\u003c/a> to the post. A former Stanford professor, she is an expert in teacher training and has chaired the state’s Commission on Teacher Credentialing for the last eight years.\u003c/p>\n\u003ch2>Housing & homelessness\u003c/h2>\n\u003cp>Tackling California’s extraordinarily high cost of housing — and the related epidemic of homelessness — was never a top priority for Brown. Even as he left office, he said he didn’t think there was \u003ca href=\"https://www.npr.org/2018/12/11/675647260/transcript-nprs-full-interview-with-california-gov-jerry-brown\">much the state could do\u003c/a> to make homes more affordable.\u003c/p>\n\u003cp>Newsom wants to change that by holding cities accountable for building affordable housing. He already \u003ca href=\"https://calmatters.org/articles/blog/will-dems-neutralize-huntington-beach-housing-suit/\">sued the city of Huntington Beach\u003c/a> for not building enough, and said in his speech that he wants to meet with 47 other cities that aren’t meeting their housing requirements.\u003c/p>\n\u003cp>Newsom also announced that he is establishing a new commission on homelessness, to be led by Sacramento Mayor Darrell Steinberg.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://calmatters.org/\" target=\"_blank\" rel=\"noopener\">CALmatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Just a month after his inauguration, Gov. Gavin Newsom used his \u003ca href=\"https://calmatters.org/articles/newsom-state-of-the-state-annotated/\">State of the State speech\u003c/a> Tuesday to make his strongest showing yet that Jerry Brown is no longer in charge.\u003c/p>\n\u003cp>He proposed scaling back two of Brown’s legacy projects — a high-speed train and a pair of tunnels to move water north to south. He rescinded Brown’s deployment of California National Guard troops to the Mexican border. And he voiced support for education and housing policies that Brown generally stayed away from.\u003c/p>\n\u003cp>It’s no shock that Newsom is carving his own path. California’s last several governors took office vowing to right the perceived wrongs of their predecessors. Brown himself, in his first term, was a change agent.\u003c/p>\n\u003cp>But they were Democrats replacing Republicans, or vice versa. Newsom is the first Democrat to follow a Democrat into the California governor’s office in more than a century — and friendship between the Brown and Newsom families \u003ca href=\"https://calmatters.org/articles/commentary/gavin-newsoms-keeping-it-all-in-the-family/\">goes back generations\u003c/a>.\u003c/p>\n\u003cp>And that \u003ca href=\"https://calmatters.org/articles/blog/gavin-newsom-transition-jerry-brown/\">creates a challenge\u003c/a> other recent governors have not faced: Newsom must pay homage to the legacy of his predecessor while also establishing his own vision. It’s not an easy needle to thread — as evidenced by Newsom’s response when asked if he is breaking away from the course Brown set in his two terms in office:\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“We’re building on a lot of the work that’s been done,” he said in a brief interview after the speech. “We’re just being more sober about it, more deliberative about it, more focused, more transparent.”\u003c/p>\n\u003cp>At this early stage in his governorship, here are five key ways Newsom has sought to differentiate himself:\u003c/p>\n\u003ch2>Border Patrol\u003c/h2>\n\u003cp>Early last year, President Trump asked border-state governors to beef up their National Guard troops along the Mexican border. Brown responded by saying California troops wouldn’t enforce immigration laws or “build a new wall.” \u003ca href=\"https://calmatters.org/articles/trump_california/gavin-newsom-says-hes-refuse-trump-on-sending-national-guard-to-the-border/\">But he agreed\u003c/a> to add 400 troops, saying they would focus on combating transnational crime.\u003c/p>\n\u003cp>Newsom \u003ca href=\"https://calmatters.org/articles/newsletters/national-guard-newsom-state-of-state-kamala-harris-caltrans-homeless/\">rolled back Brown’s order\u003c/a> this week, reassigning most of the troops from the border to areas threatened by wildfire and illegal marijuana grows. Those remaining at the border “will focus on stopping criminals smuggling drugs and guns through existing border checkpoints,” Newsom said in his speech. “This is our answer to the White House: No more division, no more xenophobia and no more nativism.”\u003c/p>\n\u003ch2>High-speed rail\u003c/h2>\n\u003cp>Since his first stint as governor in the 1970s, Brown has advocated for a new high-speed train to connect Northern and Southern California. He took steps more recently to support the project by negotiating funding for it from California’s signature climate change program. “I make no bones about it,” \u003ca href=\"https://www.scpr.org/news/2018/01/25/80125/gov-brown-to-lay-out-vision-in-last-state-of-state/\">Brown said last year\u003c/a>. “I like trains, and I like high-speed trains even better.”\u003c/p>\n\u003cp>Newsom said Tuesday that he has “nothing but respect for Governor Brown’s and Governor Schwarzenegger’s ambitious vision.” But he derided the current plan for a train from San Francisco to Los Angeles, saying it “would cost too much and take too long.”\u003c/p>\n\u003cp>Instead, Newsom embraced a more limited rail line, from Merced to Bakersfield. He also announced a new chairman for the rail authority, Lenny Mendonca, and a plan to post rail spending publicly online, a step meant to hold the administration accountable for cost overruns.\u003c/p>\n\u003cp>Republicans, long opposed to the new train, welcomed Newsom’s tack. State Sen. Shannon Grove of Bakersfield, who will soon take over as the Senate Republican leader, thanked Newsom for scaling back the project and making spending on it more transparent. “That was very responsible,” she said. “I’m pleasantly surprised.”\u003c/p>\n\u003ch2>Water\u003c/h2>\n\u003cp>Newsom also wants to scale back Brown’s controversial plan to carve two massive tunnels through the Sacramento-San Joaquin Delta to move water to Southern California. Instead, as he said during the campaign, and reiterated in his speech, he \u003ca href=\"https://www.latimes.com/politics/la-pol-sac-skelton-john-cox-gavin-newsom-california-governor-debate-20181011-story.html\">wants to build one tunnel.\u003c/a>\u003c/p>\n\u003cp>The idea was quickly embraced by Assembly Speaker Anthony Rendon, who said, “I’ve been skeptical of the two-tunnel approach for a while. Rethinking it and retooling it makes a lot of sense.”\u003c/p>\n\u003cp>To help carry out Newsom’s vision, the governor appointed \u003ca href=\"https://www.waterboards.ca.gov/about_us/board_members/\">Joaquin Esquivel\u003c/a> as the new chair of the state water board, replacing Brown’s pick, Felicia Marcus.\u003c/p>\n\u003ch2>Education\u003c/h2>\n\u003cp>Newsom and Brown have very different views when it comes to keeping track of how students are performing in California’s public schools. Brown repeatedly rejected the idea of developing a database to track student performance over time, saying he disagreed with a focus on test scores and feared the data could be abused to support prejudice. Newsom\u003ca href=\"https://calmatters.org/articles/can-california-afford-newsom-education-plan/\"> is embracing\u003c/a> a long-term student database as a way to measure which programs advance student learning.\u003c/p>\n\u003cp>“We need clear and achievable standards of transparency, more information sharing, and accountability for all public schools,” he said in his speech.\u003c/p>\n\u003cp>Newsom used the speech to announce his pick to lead the state Board of Education, naming \u003ca href=\"https://learningpolicyinstitute.org/person/linda-darling-hammond\">Linda Darling-Hammond\u003c/a> to the post. A former Stanford professor, she is an expert in teacher training and has chaired the state’s Commission on Teacher Credentialing for the last eight years.\u003c/p>\n\u003ch2>Housing & homelessness\u003c/h2>\n\u003cp>Tackling California’s extraordinarily high cost of housing — and the related epidemic of homelessness — was never a top priority for Brown. Even as he left office, he said he didn’t think there was \u003ca href=\"https://www.npr.org/2018/12/11/675647260/transcript-nprs-full-interview-with-california-gov-jerry-brown\">much the state could do\u003c/a> to make homes more affordable.\u003c/p>\n\u003cp>Newsom wants to change that by holding cities accountable for building affordable housing. He already \u003ca href=\"https://calmatters.org/articles/blog/will-dems-neutralize-huntington-beach-housing-suit/\">sued the city of Huntington Beach\u003c/a> for not building enough, and said in his speech that he wants to meet with 47 other cities that aren’t meeting their housing requirements.\u003c/p>\n\u003cp>Newsom also announced that he is establishing a new commission on homelessness, to be led by Sacramento Mayor Darrell Steinberg.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"https://calmatters.org/\" target=\"_blank\" rel=\"noopener\">CALmatters.org\u003c/a> is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Two Bay Area cannabis dispensaries announced big deals this week with publicly traded Canadian marijuana companies.\u003c/p>\n\u003cp>The Apothecarium, which operates three popular dispensaries in San Francisco and one in Las Vegas, accepted an offer of $118 million in cash and stock from TerrAscend, a cannabis company in Toronto.\u003c/p>\n\u003cp>In a separate deal, Oakland-based Harborside, one of the largest dispensaries in the country, announced a new partnership with Lineage Grow Co., also in Toronto. The arrangement will allow Harborside to be listed on the Canadian Securities Exchange, a favored destination for U.S. marijuana businesses.\u003c/p>\n\u003cp>The two deals are subject to regulatory approvals in both countries.\u003c/p>\n\u003cp>Last October, Canada became the first major world economy to legalize recreational marijuana (it’s also legal in Uruguay), and a growing number of U.S. cannabis businesses are looking north for investors.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\"There is a gigantic need for capital in the U.S. cannabis industry and because the capital markets in the United States are completely closed to us, we are forced to look elsewhere,\" Apothecarium CEO Ryan Hudson said. \u003c/p>\n\u003cp>He noted that despite the recent legalization of recreational marijuana in California, the industry is still illegal under federal law and completely excluded from any sanctioned U.S. market exchanges.\u003c/p>\n\u003cp>As long as marijuana remains illegal federally, he added, California's marijuana industry will increasingly look for investors in Canada and other countries where the drug could soon be legalized.\u003c/p>\n\u003cp>The Apothecarium, which Hudson helped launch in 2011 following six failed tech startup ventures, now sells hundreds of cannabis products, including chocolate truffle edibles and beverages. \u003c/p>\n\u003cp>In 2018, the business reported more than $45 million in revenue across its four operations in California and Nevada, according to a \u003ca href=\"https://www.prnewswire.com/news-releases/terrascend-establishes-us-retail-footprint-300793041.html\" target=\"_blank\" rel=\"noopener\">TerrAscend press release\u003c/a> announcing the acquisition.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Hudson said the business would continue to operate under the same name and management.\u003c/p>\n\n",
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"content": "\u003cp>It's been three months since the deadly \u003ca href=\"https://www.kqed.org/news/11705243/california-wildfires-what-you-need-to-know\" target=\"_blank\" rel=\"noopener\">Camp Fire\u003c/a> ravaged the town of Paradise and surrounding areas, and thousands of survivors are still waiting for secure housing.\u003c/p>\n\u003cp>In its most recent estimate, the Federal Emergency Management Agency this week said about 13,000 people were still in need of stable housing.\u003c/p>\n\u003cp>Approximately 14,000 residences were lost to the massive blaze that scorched more than 150,000 acres, making it the most destructive wildfire in modern California history in terms of structures destroyed.\u003c/p>\n\u003cp>“We continue to work with eligible survivors to see what the best housing solutions are for each family,\" FEMA spokesman Ken Higginbotham said on Tuesday.\u003c/p>\n\u003cp>Two-hundred FEMA trailers are currently inhabited by survivors, he said, and 67 additional trailers, as well as 187 larger structures, are being prepared for people to move in to.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The agency said it has also located hookups for more than 300 trailers and mobile homes at sites in eight counties, including Butte, Glenn, Mendocino, Sacramento, Shasta, Sutter, Tehama and Yuba.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11718337/in-the-aftermath-of-the-camp-fire-a-slow-simmering-crisis-in-chico\" target=\"_blank\" rel=\"noopener\">In the Aftermath of the Camp Fire, a Slow, Simmering Crisis in Chico\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11718337/in-the-aftermath-of-the-camp-fire-a-slow-simmering-crisis-in-chico\" target=\"_blank\" rel=\"noopener\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/image-from-ios-4-fcac4a2fb2c31ba472991da9a3c6e8b684f5709d-800x600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Meanwhile, the nearby city of Chico is still struggling to accommodate the inundation of Paradise residents. That includes those survivors who had initially been allowed to camp out on their properties, \u003ca href=\"https://www.kqed.org/news/11723656/camp-fire-survivors-must-leave-their-properties-where-will-they-go\" target=\"_blank\" rel=\"noopener\">but were told this week\u003c/a> by authorities that they had to vacate during the lengthy waste and removal process.\u003c/p>\n\u003cp>“There’s a significant impact to our community,\" said Chico Mayor Randall Stone, noting that the number of people displaced within Chico itself could be close to 20,000.\u003c/p>\n\u003cp>Beyond basic housing issues, Chico is also facing other challenges related to real estate. Paradise businesses that were destroyed are looking for new places to set up shop, while schools need spaces to hold classes. And in some cases, Paradise residents who owned rental properties in Chico are evicting their tenants to make space for themselves, fueling even more displacement.\u003c/p>\n\u003cp>\"You have a whole new set of people that were not burned out, that don't have insurance because there was no cataclysmic impact and they need to find a place to live,\" said Stone. \"So the trickle down is really, really devastating.\"\u003c/p>\n\u003cp>The large population influx has also resulted in major traffic issues in and around Chico, including a sharp uptick in congestion and accidents.\u003c/p>\n\u003cp>Stone said the city is asking the state for $12 million to help with traffic mitigation systems that can better accommodate the current flood of vehicles.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Polly Stryker and Lily Jamali contributed to this report. \u003c/em>\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The agency said it has also located hookups for more than 300 trailers and mobile homes at sites in eight counties, including Butte, Glenn, Mendocino, Sacramento, Shasta, Sutter, Tehama and Yuba.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11718337/in-the-aftermath-of-the-camp-fire-a-slow-simmering-crisis-in-chico\" target=\"_blank\" rel=\"noopener\">In the Aftermath of the Camp Fire, a Slow, Simmering Crisis in Chico\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11718337/in-the-aftermath-of-the-camp-fire-a-slow-simmering-crisis-in-chico\" target=\"_blank\" rel=\"noopener\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/image-from-ios-4-fcac4a2fb2c31ba472991da9a3c6e8b684f5709d-800x600.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Meanwhile, the nearby city of Chico is still struggling to accommodate the inundation of Paradise residents. That includes those survivors who had initially been allowed to camp out on their properties, \u003ca href=\"https://www.kqed.org/news/11723656/camp-fire-survivors-must-leave-their-properties-where-will-they-go\" target=\"_blank\" rel=\"noopener\">but were told this week\u003c/a> by authorities that they had to vacate during the lengthy waste and removal process.\u003c/p>\n\u003cp>“There’s a significant impact to our community,\" said Chico Mayor Randall Stone, noting that the number of people displaced within Chico itself could be close to 20,000.\u003c/p>\n\u003cp>Beyond basic housing issues, Chico is also facing other challenges related to real estate. Paradise businesses that were destroyed are looking for new places to set up shop, while schools need spaces to hold classes. And in some cases, Paradise residents who owned rental properties in Chico are evicting their tenants to make space for themselves, fueling even more displacement.\u003c/p>\n\u003cp>\"You have a whole new set of people that were not burned out, that don't have insurance because there was no cataclysmic impact and they need to find a place to live,\" said Stone. \"So the trickle down is really, really devastating.\"\u003c/p>\n\u003cp>The large population influx has also resulted in major traffic issues in and around Chico, including a sharp uptick in congestion and accidents.\u003c/p>\n\u003cp>Stone said the city is asking the state for $12 million to help with traffic mitigation systems that can better accommodate the current flood of vehicles.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>Polly Stryker and Lily Jamali contributed to this report. \u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "What California’s ‘Nonbinary’ Gender Designation Will Cost Teen Drivers",
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"content": "\u003cp>In a little-noticed side effect of California’s 2018 law granting drivers the option of listing their \u003ca href=\"https://calmatters.org/articles/gender-x-california-may-first-state-create-broad-nonbinary-option/\" target=\"_blank\" rel=\"noopener\">gender as nonbinary\u003c/a>, California’s Department of Insurance has decreed that auto insurance companies can no longer offer female teen drivers lower rates than their male counterparts.\u003c/p>\n\u003cp>Outgoing Insurance Commissioner Dave Jones, in one of his final acts in office, issued a regulation last month prohibiting the use of gender in automobile insurance rating, similar to regulations in six other states.\u003c/p>\n\u003cp>Jones’ replacement, Ricardo Lara, supports that policy, saying in a statement, “Gender, race, ethnicity or sexual orientation are beyond your control, and it is not a fair or even an effective way to predict risk.”\u003c/p>\n\u003cp>Jones’ regulatory action received coverage in the \u003ca href=\"https://www.nytimes.com/2019/01/18/your-money/car-insurance-gender-california.html\" target=\"_blank\" rel=\"noopener\">New York Times\u003c/a> and elsewhere. But the genesis of his decision received far less attention—and had nothing to do with car insurance.\u003c/p>\n\u003cp>It was prompted, at least in part, by \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB179\" target=\"_blank\" rel=\"noopener\">legislation\u003c/a> signed by Gov. Jerry Brown in October 2017 granting motorists the option of listing their gender as male, female or nonbinary.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“Mindful of all the people I know who are gender-nonconforming, and the families I know with transgender children, I wanted to make sure that California continued to be a leader in gender-identity equality,” said Senate President Pro Tem Toni Atkins, who introduced the bill.\u003c/p>\n\u003cp>Lobbyists for insurance companies had been neutral on the bill, having received assurances that it would have no impact on auto insurance rates.\u003c/p>\n\u003cp>Rex Frazier, president of the Personal Insurance Federation of California, which represents several major auto insurance companies, said insurers were blindsided by Jones’ justification for the regulation, pointing out that none of the 10 legislative analyses of the bill made any mention of potential impacts on insurance rates.\u003c/p>\n\u003cp>“It is commonly understood that teenage male drivers are generally a higher risk than teenage female drivers,” Frazier said in a letter to the Department of Insurance. “Eliminating gender rating would require female teenage drivers to subsidize teenage male drivers.”\u003c/p>\n\u003cp>Frazier said the gender of teen drivers can result in an additional cost for boys or discount for girls of about 6 percent on their premiums. Drivers who list their gender as nonbinary probably would have been given a lower cost than boys, he said, though under the new rule, it's a moot point, as gender cannot be taken into account.\u003c/p>\n\u003cp>In a separate letter to the Insurance Department, the American Insurance Association, an insurance trade group, wrote: “Senate Bill 179 was designed to reduce barriers to existing name and gender change procedures. The bill was never intended, nor was it drafted, to affect established and demonstrated insurance rating factors such as gender.”\u003c/p>\n\u003cp>The association also cited a 2016 Insurance Institute report saying: “Men typically drive more miles than women and more often engage in risky driving practices, including not using safety belts, driving while impaired by alcohol, and speeding.”\u003c/p>\n\u003cp>In the rule-making process, Jones responded to the insurance groups by stating that “the Legislature may not have specifically intended to eliminate gender-based insurance rating” but that Atkins’ legislation had “relevance as a statement of California’s values around the role of gender in society.”\u003c/p>\n\u003cp>In an interview Tuesday, Jones said the “the real driver for the change was that there was really no consistency with regard to how insurers were using gender as a rating factor.” Additionally, he said, gender is “not a characteristic that is within your control.”\u003c/p>\n\u003cp>Atkins said in a statement Tuesday that her bill did not address the insurance-rate question, but that she supports “efforts to ensure that all genders are treated equally.”\u003c/p>\n\u003cp>“However, it’s imperative that these changes be made thoughtfully and with strong input from Californians,” Atkins statement said.\u003c/p>\n\u003cp>The advocacy group Consumer Watchdog had long advocated for the change, saying in a statement, “Gender and sex have no more place in what we pay for auto insurance than race or ethnicity do. These new rules will finally end gender-based discrimination in auto insurance pricing in California.”\u003c/p>\n\u003cp>Insurance companies must submit gender-neutral pricing policies to the Insurance Department by July 1. The new pricing would take effect after that.\u003c/p>\n\u003cp>Frazier has called on the Department of Insurance to at least permit insurance companies to take into account the age of drivers and new car safety features when setting rates. Decisions on those requests are pending.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"http://calmatters.org/\" target=\"_blank\" rel=\"noopener\">CALmatters.org \u003c/a>is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>In a little-noticed side effect of California’s 2018 law granting drivers the option of listing their \u003ca href=\"https://calmatters.org/articles/gender-x-california-may-first-state-create-broad-nonbinary-option/\" target=\"_blank\" rel=\"noopener\">gender as nonbinary\u003c/a>, California’s Department of Insurance has decreed that auto insurance companies can no longer offer female teen drivers lower rates than their male counterparts.\u003c/p>\n\u003cp>Outgoing Insurance Commissioner Dave Jones, in one of his final acts in office, issued a regulation last month prohibiting the use of gender in automobile insurance rating, similar to regulations in six other states.\u003c/p>\n\u003cp>Jones’ replacement, Ricardo Lara, supports that policy, saying in a statement, “Gender, race, ethnicity or sexual orientation are beyond your control, and it is not a fair or even an effective way to predict risk.”\u003c/p>\n\u003cp>Jones’ regulatory action received coverage in the \u003ca href=\"https://www.nytimes.com/2019/01/18/your-money/car-insurance-gender-california.html\" target=\"_blank\" rel=\"noopener\">New York Times\u003c/a> and elsewhere. But the genesis of his decision received far less attention—and had nothing to do with car insurance.\u003c/p>\n\u003cp>It was prompted, at least in part, by \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB179\" target=\"_blank\" rel=\"noopener\">legislation\u003c/a> signed by Gov. Jerry Brown in October 2017 granting motorists the option of listing their gender as male, female or nonbinary.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“Mindful of all the people I know who are gender-nonconforming, and the families I know with transgender children, I wanted to make sure that California continued to be a leader in gender-identity equality,” said Senate President Pro Tem Toni Atkins, who introduced the bill.\u003c/p>\n\u003cp>Lobbyists for insurance companies had been neutral on the bill, having received assurances that it would have no impact on auto insurance rates.\u003c/p>\n\u003cp>Rex Frazier, president of the Personal Insurance Federation of California, which represents several major auto insurance companies, said insurers were blindsided by Jones’ justification for the regulation, pointing out that none of the 10 legislative analyses of the bill made any mention of potential impacts on insurance rates.\u003c/p>\n\u003cp>“It is commonly understood that teenage male drivers are generally a higher risk than teenage female drivers,” Frazier said in a letter to the Department of Insurance. “Eliminating gender rating would require female teenage drivers to subsidize teenage male drivers.”\u003c/p>\n\u003cp>Frazier said the gender of teen drivers can result in an additional cost for boys or discount for girls of about 6 percent on their premiums. Drivers who list their gender as nonbinary probably would have been given a lower cost than boys, he said, though under the new rule, it's a moot point, as gender cannot be taken into account.\u003c/p>\n\u003cp>In a separate letter to the Insurance Department, the American Insurance Association, an insurance trade group, wrote: “Senate Bill 179 was designed to reduce barriers to existing name and gender change procedures. The bill was never intended, nor was it drafted, to affect established and demonstrated insurance rating factors such as gender.”\u003c/p>\n\u003cp>The association also cited a 2016 Insurance Institute report saying: “Men typically drive more miles than women and more often engage in risky driving practices, including not using safety belts, driving while impaired by alcohol, and speeding.”\u003c/p>\n\u003cp>In the rule-making process, Jones responded to the insurance groups by stating that “the Legislature may not have specifically intended to eliminate gender-based insurance rating” but that Atkins’ legislation had “relevance as a statement of California’s values around the role of gender in society.”\u003c/p>\n\u003cp>In an interview Tuesday, Jones said the “the real driver for the change was that there was really no consistency with regard to how insurers were using gender as a rating factor.” Additionally, he said, gender is “not a characteristic that is within your control.”\u003c/p>\n\u003cp>Atkins said in a statement Tuesday that her bill did not address the insurance-rate question, but that she supports “efforts to ensure that all genders are treated equally.”\u003c/p>\n\u003cp>“However, it’s imperative that these changes be made thoughtfully and with strong input from Californians,” Atkins statement said.\u003c/p>\n\u003cp>The advocacy group Consumer Watchdog had long advocated for the change, saying in a statement, “Gender and sex have no more place in what we pay for auto insurance than race or ethnicity do. These new rules will finally end gender-based discrimination in auto insurance pricing in California.”\u003c/p>\n\u003cp>Insurance companies must submit gender-neutral pricing policies to the Insurance Department by July 1. The new pricing would take effect after that.\u003c/p>\n\u003cp>Frazier has called on the Department of Insurance to at least permit insurance companies to take into account the age of drivers and new car safety features when setting rates. Decisions on those requests are pending.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>\u003ca href=\"http://calmatters.org/\" target=\"_blank\" rel=\"noopener\">CALmatters.org \u003c/a>is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Poll: California Democrats Most Excited About Biden and Harris (in That Order)",
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"content": "\u003cp>It could be just an indication of high name recognition, but when California Democrats and Democratic-leaning voters are asked which potential 2020 presidential nominees would excite them, topping the list are former Vice President Joe Biden (60 percent) and California Sen. Kamala Harris (58 percent).\u003c/p>\n\u003cp>That's one key finding of a statewide California \u003ca href=\"https://www.documentcloud.org/documents/5728658-Quinnipiac.html\" target=\"_blank\" rel=\"noopener noreferrer\">survey\u003c/a> of 912 registered voters conducted by the respected Quinnipiac University Poll.\u003c/p>\n\u003cp>Rounding out the list and well behind the top two are Massachusetts Sen. Elizabeth Warren and Vermont Sen. Bernie Sanders with 44 percent each, followed by former Texas congressman Beto O'Rourke with 40 percent and New York Sen. Kirsten Gillibrand whose nomination 21 percent say would excite them.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11720908/thats-not-our-america-kamala-harris-officially-launches-presidential-bid-in-oakland\">'That's Not Our America': Kamala Harris Officially Launches Presidential Bid in Oakland\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11720908/thats-not-our-america-kamala-harris-officially-launches-presidential-bid-in-oakland\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/RS34879__M6A0560-qut.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Biden, O'Rourke and Sanders have yet to declare their intentions on running in 2020.\u003c/p>\n\u003cp>Digging deeper into the survey, voters are mixed on how Harris would do as commander-in-chief. When all California voters were asked if Harris would make a good president, 40 percent said yes, while 38 percent said no. Harris did best among women, registered Democrats, Bay Area voters and younger voters aged 18 to 34 years old.\u003c/p>\n\u003cp>Overall, Harris gets generally positive reviews from voters on the job she's doing as senator, with 53 percent approving and 32 percent disapproving.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The poll also measured opinions on a wide range of issues, including border security and immigration.\u003c/p>\n\u003cp>By 64 to 32 percent, California voters oppose President Trump's plan to build a wall on the U.S.-Mexico border. Eighty percent of California Republicans support the . However, voters are evenly split on the broader question of the border situation, with 46 percent saying current security is effective and 46 percent saying it is not.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11723796/california-attorney-general-vows-to-sue-if-trump-uses-emergency-powers-to-build-wall\">California Attorney General Vows to Sue If Trump Uses Emergency Powers to Build Wall\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11723796/california-attorney-general-vows-to-sue-if-trump-uses-emergency-powers-to-build-wall\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/ap_18311292868638_custom-a93f93ad1ce1ebd685c597c70a33cdcca308d545-1020x736.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>In a warning sign for Democrats in Sacramento, 52 percent of voters oppose extending Medi-Cal health coverage to undocumented immigrants while 40 percent support it. \u003c/p>\n\u003cp>In his new state budget, Gov. Gavin Newsom proposes spending $197 million to expand full Medi-Cal coverage to eligible young adults ages 19 through 25 \u003cem>regardless of immigration status\u003c/em>. The state already covers eligible undocumented children up to age 18.\u003c/p>\n\u003cp>Another key finding in the survey is how the cost of living in California is being felt here. Forty-three percent of California voters say they can't afford to live here, including 61 percent of voters 18 to 34 years old.\u003c/p>\n\u003cp>This is the first statewide poll Connecticut-based Quinnipiac University has conducted in California, but assistant poll director Tim Malloy says they expect to do six per year.\u003c/p>\n\u003cp>\"It was inevitable we'd come to California,\" Malloy said, noting the Golden State's size and role as a public policy trendsetter.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>It could be just an indication of high name recognition, but when California Democrats and Democratic-leaning voters are asked which potential 2020 presidential nominees would excite them, topping the list are former Vice President Joe Biden (60 percent) and California Sen. Kamala Harris (58 percent).\u003c/p>\n\u003cp>That's one key finding of a statewide California \u003ca href=\"https://www.documentcloud.org/documents/5728658-Quinnipiac.html\" target=\"_blank\" rel=\"noopener noreferrer\">survey\u003c/a> of 912 registered voters conducted by the respected Quinnipiac University Poll.\u003c/p>\n\u003cp>Rounding out the list and well behind the top two are Massachusetts Sen. Elizabeth Warren and Vermont Sen. Bernie Sanders with 44 percent each, followed by former Texas congressman Beto O'Rourke with 40 percent and New York Sen. Kirsten Gillibrand whose nomination 21 percent say would excite them.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11720908/thats-not-our-america-kamala-harris-officially-launches-presidential-bid-in-oakland\">'That's Not Our America': Kamala Harris Officially Launches Presidential Bid in Oakland\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11720908/thats-not-our-america-kamala-harris-officially-launches-presidential-bid-in-oakland\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/01/RS34879__M6A0560-qut.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>Biden, O'Rourke and Sanders have yet to declare their intentions on running in 2020.\u003c/p>\n\u003cp>Digging deeper into the survey, voters are mixed on how Harris would do as commander-in-chief. When all California voters were asked if Harris would make a good president, 40 percent said yes, while 38 percent said no. Harris did best among women, registered Democrats, Bay Area voters and younger voters aged 18 to 34 years old.\u003c/p>\n\u003cp>Overall, Harris gets generally positive reviews from voters on the job she's doing as senator, with 53 percent approving and 32 percent disapproving.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The poll also measured opinions on a wide range of issues, including border security and immigration.\u003c/p>\n\u003cp>By 64 to 32 percent, California voters oppose President Trump's plan to build a wall on the U.S.-Mexico border. Eighty percent of California Republicans support the . However, voters are evenly split on the broader question of the border situation, with 46 percent saying current security is effective and 46 percent saying it is not.\u003c/p>\n\u003caside class=\"alignright\">\n\u003ch3>\u003ca href=\"https://www.kqed.org/news/11723796/california-attorney-general-vows-to-sue-if-trump-uses-emergency-powers-to-build-wall\">California Attorney General Vows to Sue If Trump Uses Emergency Powers to Build Wall\u003c/a>\u003c/h3>\n\u003cfigure>\u003ca href=\"https://www.kqed.org/news/11723796/california-attorney-general-vows-to-sue-if-trump-uses-emergency-powers-to-build-wall\">\u003cimg src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2019/02/ap_18311292868638_custom-a93f93ad1ce1ebd685c597c70a33cdcca308d545-1020x736.jpg\" alt=\"\">\u003c/a>\u003c/figure>\n\u003c/aside>\n\u003cp>In a warning sign for Democrats in Sacramento, 52 percent of voters oppose extending Medi-Cal health coverage to undocumented immigrants while 40 percent support it. \u003c/p>\n\u003cp>In his new state budget, Gov. Gavin Newsom proposes spending $197 million to expand full Medi-Cal coverage to eligible young adults ages 19 through 25 \u003cem>regardless of immigration status\u003c/em>. The state already covers eligible undocumented children up to age 18.\u003c/p>\n\u003cp>Another key finding in the survey is how the cost of living in California is being felt here. Forty-three percent of California voters say they can't afford to live here, including 61 percent of voters 18 to 34 years old.\u003c/p>\n\u003cp>This is the first statewide poll Connecticut-based Quinnipiac University has conducted in California, but assistant poll director Tim Malloy says they expect to do six per year.\u003c/p>\n\u003cp>\"It was inevitable we'd come to California,\" Malloy said, noting the Golden State's size and role as a public policy trendsetter.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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