By Camille von Kaenel

Presented by Connected Commerce Council

BROWN IS THE NEW GREEN: Nearly all of California is officially out of the drought, but one emergency rule that targets bright green lawns is on its way to becoming permanent.

A ban on the use of potable water on nonfunctional turf is one floor vote and a governor’s signature away from becoming reality. Wait, before you run to your sprinkler: Your yard and sport fields aren’t included. The state would ban ornamental grass only on commercial, industrial or institutional properties. Think of those decorative strips of grass at malls or office parks or in common areas controlled by homeowner associations.

Two California bills would require more water-conserving plants on lawns. | Jay Reeves/AP Photo

The state water board already restricts watering in these areas as part of the drought emergency. That rule, however, is set to expire in June. Assemblymember Laura Friedman (D-Glendale)’s AB 1572 would phase in permanent requirements starting in 2027.

Homeowner associations and landscape contractors oppose the bill. But its progress through the Legislature on a mostly party-line vote is a sign the debate about lawns has turned a corner as California faces the reality of long-term water shortage. One of the bill’s sponsors is the Metropolitan Water District of Southern California, which supplies water to 19 million people. The district has been recommending that cities and water agencies ban nonfunctional turf since last year to conserve water.

“This legislation takes our efforts one step further — to ensure that we are making the best use of our precious resources,” Metropolitan General Manager Adel Hagekhalil said in a statement.

Water districts aren’t all on board with a related measure. The Association of California Water Agencies and California Municipal Utilities Association oppose Friedman’s Assembly Bill 1573, which is intended to restrict the use of nonnative plants in landscaping projects.

The groups say it doesn’t like the use of thresholds for specific plants.

Both bills are waiting for a Senate floor vote.

POLITICO's rolling billboard chugs along in Sacramento. | POLITICO

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HAPPY WEDNESDAY AFTERNOON! Welcome to California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check of California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to cvonkaenel@politico.com or send a shout on Twitter. DMs are open!

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Over 2 million CA small businesses sell online — to reach customers nationwide, track performance metrics, and manage logistics. Keep California small businesses connected with online marketplaces. Learn more.

TRANS POLICY BLOCKED: A court has ordered an immediate halt to a Southern California school district’s policy of alerting parents if their child has identified themself as transgender. The temporary restraining order issued today comes two months after the Chino Valley Unified School District adopted the measure.

The order puts the district policy on hold until at least October and comes in response to a lawsuit filed last week by Democratic Attorney General Rob Bonta. Bonta’s Department of Justice had previously warned the district’s superintendent and newly seated conservative board against adopting the rule, saying it could violate the privacy rights of students and “out” transgender or nonbinary children to parents who may not accept their gender identity.

The Chino board adopted the policy in July, and a handful of conservative-majority boards followed. The Murrieta Valley, Temecula Valley and Anderson Union High school districts passed similar rules. Rocklin Unified, near Sacramento, is expected to consider a similar trans student policy this evening. Orange Unified has scheduled a vote on its own version on Thursday. — Blake Jones

SUBSCRIBE TO CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Cut through the jargon and get the latest developments in California as lawmakers and industry leaders adapt to the changing climate. Subscribe now to California Climate to keep up with the changes.

KEEPING THE ROBOT OVERLORDS AT BAY: Newsom today signed an executive order to study the development, use and risks of generative artificial intelligence — one of the most significant steps taken by a state to potentially regulate the rapidly growing technology.

Newsom’s order includes directives to state agencies and departments to perform a joint analysis on the risk AI poses to California’s energy infrastructure; issue guidelines for public sector procurement of generative AI based on White House and National Institute for Standards and Technology-issued guidelines; provide AI training for state government workers; and develop a framework to analyze generative AI’s impact on vulnerable communities.

The executive order is the state’s first step toward understanding how to govern AI, said Alex Stack, the deputy communications director for Newsom. The order primarily deals with the government’s own use of generative AI. — Mohar Chatterjee

A message from Connected Commerce Council:

LET’S NOT DO THIS AGAIN: The most intensely negotiated health care budget issue this spring was how to spend a renewed tax on health insurance plans. Now, organizers have filed paperwork with the attorney general to put the issue before voters in November and avoid the jockeying and uncertainty next time the tax needs to be renewed.

The initiative would direct the state to keep working with the federal government to renew the tax every few years when it expires. It would also funnel the revenue into 18 different categories, with the most going to primary and specialty care.

Dustin Corcoran, the chairman of the coalition pushing for the measure and CEO of the California Medical Association, said he isn’t expecting opposition. The biggest hurdle, he said, will be explaining to voters why they should vote on a health plan tax that mostly benefits Medi-Cal enrollees.

“This matters for Medi-Cal patients, but also for all patients who are affected by overcrowded emergency departments, hospital and clinic closures and physician office closures,” he said. “People want, rightfully, to get the care that they need when they need it. This initiative will deliver that.” — Rachel Bluth

Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of the first episodes in September – click here.

— AWKWARD ENCOUNTER: The San Francisco Chronicle caught up with Sen. Dianne Feinstein in the halls of Congress, and she initially appeared not to know that she had granted her daughter, former Judge Katherine Feinstein, power of attorney amid a family dispute over the assets of the senator’s late husband, Richard Blum. She clarified later in a follow-up phone call that Katherine Feinstein is handling matters in the civil dispute so that the senator can focus on her Senate work.

— NO CONTEST: Former President Donald Trump appears to be on track for an easy victory in the California Republican primary despite earlier talk of a competitive race, per the latest polling by the U.C. Berkeley Institute of Governmental Studies. President Joe Biden has a commanding 20-point lead over Trump among all California voters.

— GOODBYE, NORMA JEAN: The owner of the Brentwood home owned by Marilyn Monroe, and the location of her 1962 death, has applied to the city of Los Angeles to demolish the structure, which was built in 1929 and has undergone significant upgrades in the intervening years.

A message from Connected Commerce Council:

"Selling online and using social media allow us to reach thousands of customers, and also connect with stores and independent retailers across the country" – Jeff, Instant Biologics. Keep California small businesses like Instant Biologics in San Diego connected with online marketplaces. Learn more.

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