By Lara Korte and Rachel Bluth

Presented by Blue Shield of California Foundation

WHEELS OF JUSTICE: The typical Playbook for defending yourself from a high-profile lawsuit is simple — delay, delay, delay.

But Fiona Ma has a deadline. She wants to be lieutenant governor.

The California state treasurer is facing accusations of sexual harassment from a former employee, Judith Blackwell, and more than two years of court proceedings have not led to a resolution. Last month, after the two sides couldn’t reach a settlement agreement, a Sacramento Superior Court judge allowed the case to go to a jury trial.

The trial was supposed to take place this week, but will now be postponed until January — much to the dismay of the defendant, who wants to clear the decks before her campaign for the state’s second-in-command in 2026 kicks off in earnest.

“The treasurer has said for months that she wants her day in court to disprove these bogus allegations,” spokesperson Steve Maviglio said. “She looks forward to that opportunity.”

The original complaint alleges that Ma sexually harassed and discriminated against Blackwell, the former executive director for the California Tax Credit Allocation Committee. Blackwell alleged Ma would routinely share hotel rooms with her and invited her to stay at an Airbnb the treasurer was renting. Blackwell said Ma also climbed into her bed once, and, on two occasions, intentionally exposed her bare rear to her.

Blackwell’s lawyer, Waukeen McCoy, said in a filing that he needs more time to prepare for the case because he’s been involved with another high-profile trial in Texas, where his clients allege a school district’s dress code is discriminatory toward Black students.

Blackwell’s team keeps trying for a settlement, but Ma is eager to disprove the allegations outright. Even the implication of guilt could be a stain on her campaign, and she is insistent on making her argument to a jury in open court.

California State Treasurer Fiona Ma administers the oath of office to Judith Blackwell. | California State Treasurer

IT’S MONDAY AFTERNOON. This is 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 [email protected] or send a shout on Twitter. DMs are open.

MISSING IN GAZA: Ryan Pessah poses next to a photo of his cousin Yair Yaakov, who was kidnapped by Hamas. Pessah spoke at a vigil in Sacramento today in support of freeing hostages. | Forest Hunt/POLITICO

A message from Blue Shield of California Foundation:

This Domestic Violence Awareness Month, learn the latest on domestic violence prevention in California and how to prioritize survivors and their families in policy decisions. Listen now to the four-part podcast series by Blue Shield of California Foundation.

PICKING SIDES: The political intrigue in the race for a northeast Los Angeles City Council seat isn’t just whether Kevin de León can mount an improbable career comeback.

The race also ripples into Sacramento, where two Assembly Democrats — Miguel Santiago and Wendy Carrillo — are duking it out to oust De León. Santiago today trotted out a heavyweight Capitol endorsement: Speaker Robert Rivas.

Rivas is not the first speaker to wade into the Democrat-on-Democrat fight. Carrillo secured the backing of Anthony Rendon back in the spring, when he was still the leader of the Assembly.

The endorsements line up with alliances forged during the acerbic battle between Rendon and Rivas for the speakership. Carrillo was a Rendon loyalist, while Santiago cast his caucus vote for Rivas. That vote especially stung because Santiago was a last-minute flip to Rivas, an act that Rendon’s side saw as a betrayal.

As Carrillo and Santiago have divvied up support from the Assembly Democrats, the speaker’s race has been a notable undercurrent. Santiago scooped up endorsements from Rivas lieutenants like Assemblymembers Jesse Gabriel and Rick Chavez Zbur. Carrillo has gotten contributions from Rendon allies such as Cecilia Aguiar-Curry and Laura Friedman.

Rivas’ camp said the endorsement shouldn’t be seen as a slight to Carrillo. In fact, he had pledged his endorsement to Santiago back in April — before Carrillo had entered the race and before Rivas officially became speaker. — Melanie Mason

JOIN 10/24 FOR AN UPDATE ON CHIPS: America is rapidly restructuring its semiconductor supply chain and manufacturing base, thanks in part to billion-dollar initiatives like the CHIPS and Science Act. But who is winning the reward? Join POLITICO Oct. 24 to get an update on CHIPS what other challenges have emerged now that the new era is underway. REGISTER NOW.

TAXING DISPUTE: The California Teachers Association has joined other unions in an escalating tax fight that is increasingly pitting labor against business. The CTA announced Monday that it is opposing a 2024 ballot initiative that would make it harder to pass new state and local taxes — and is also backing a dueling measure written by Democratic leaders.

The state’s largest teachers union routinely spends millions to defeat measures that would limit the amount of money guaranteed to public schools. The CTA’s opposition to the “Taxpayer Protection and Government Accountability Act” and support for Assembly Constitutional Amendment 13 follows that trend, and it signals that the union could use its muscular campaign arm to sway this latest tax tussle.

The California Business Roundtable’s measure would raise thresholds needed to pass state and local taxes. The labor-backed response would require that measures to raise such thresholds net that same level of support to pass — effectively raising the bar for the business group’s initiative from a simple majority to a two-thirds vote. Cities are also fighting the business measure for fear that it will limit their ability to raise revenue. — Blake Jones

UNDERGROUND TREASURE: Southern California water officials today celebrated a milestone in efforts to store extra water underground in the high desert for use when supplies are short.

The project, called the High Desert Water Bank, will give Los Angeles and other cities leverage when negotiating reductions in use on the depleted Colorado River. The plan is to let surplus water from Northern California percolate into the aquifer — which can store up to 280,000 acre-feet of water, or roughly the same volume as Castaic Lake — and pull it back out using wells when needed. The project is the largest investment in groundwater storage by the Metropolitan Water District of California and heralds a gold rush for underground water supplies.

The Metropolitan Water District of California, which supplies water for much of Southern California, is paying $211 million to build the project on Antelope Valley-East Kern Water Agency property that was formerly farmland and vacant land. Around 40 percent of the project is done and the rest will take several years. — Camille von Kaenel

A message from Blue Shield of California Foundation:

CASTE DOWN — Ramesh V. Kapur, a Democratic fundraiser, Massachusetts entrepreneur and president of the U.S.-India Security Council, said he personally lobbied Gov. Gavin Newsom to veto a bill that would ban discrimination by caste in California and received a heads-up email before the veto was issued, an account the governor’s office didn’t dispute. (San Francisco Chronicle)

PRISON MENTAL HEALTH — California faces $50 million in proposed fines after the federal judge presiding over a class-action lawsuit determined the state has failed to meet commitments to improve mental health treatment for prisoners. (The Sacramento Bee)

JOIN 10/25 FOR A TALK ON THE FUTURE OF GRID RELIABILITY: The EPA’s proposed standards for coal and new natural gas fired power plants have implications for the future of the electric grid. These rules may lead to changes in the power generation mix—shifting to more renewable sources in favor of fossil-fuel plants. Join POLITICO on Oct. 25 for a deep-dive conversation on what it will take to ensure a reliable electric grid for the future. REGISTER NOW.

A message from Blue Shield of California Foundation:

Each episode of “Let’s End Domestic Violence: Heal, Restore, Prevent” highlights different themes surrounding domestic violence and features leaders across California, including State Senator Susan Rubio.

Listen to the first three episodes now and visit letsenddv.org for additional resources.

● Episode 1: Breaking the Cycle: Multigenerational Prevention
● Episode 2: Healing From DV: Restorative Practices
● Episode 3: Domestic Violence & Housing Insecurity
● Episode 4: Elevating Solutions and Impacts in the Black Community

Follow us on Twitter

Subscribe to the POLITICO Playbook family

Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook

View all our political and policy newsletters

Follow us

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings

This email was sent to [email protected] by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Please click here and follow the steps to unsubscribe.