California lawmakers’ stock disclosures are full of surprises

Good morning. It’s Monday, December 18. Here’s what you need to know to start your day.

• California’s state lawmakers’ stock portflios may surprise you.
• Forecasters predicted a historically strong El Niño. It hasn’t happened ... yet
• Where to park in L.A. if you don’t want your car stolen
• And here’s today’s e-newspaper
  

California lawmakers’ stock disclosures are full of surprises

Some California state legislators proudly tout strong records on environmental issues, social media regulation and workers’ rights. But they are not always putting their money where their mouths are.

People who vote green making money when oil companies’ profits increase, for example. Elected leaders have invested in fossil fuel companies despite calling themselves environmentalists; in tech giants that they seek to hold more accountable; and in big businesses they criticize for worker treatment. That’s according to recent data on lawmakers’ finances collected by the nonprofit news organization CalMatters and analyzed by The Times.

The documents show that 40 of California’s 120 lawmakers reported at least $2,000 in investments last year, Times reporters Mackenzie Mays, Queenie Wong, Hanah Wiley and Sandhya Kambhampati found. About 30% of Democratic legislators and about 46% of Republicans are on the list. Collectively, those lawmakers reported at least $14 million worth of investments in 2022’s disclosures.

Lawmakers with the biggest investment portfolios

The five lawmakers reporting the most financial investments, with each noting minimum values of at least $1 million, are:

• Sen. Roger W. Niello (R-Fair Oaks)
• Assemblymember Gail Pellerin (D-Santa Cruz)
• Sen. Bill Dodd (D-Napa)
• Assemblymember Marc Berman (D-Menlo Park)
• Assemblymember Jacqui Irwin (D-Thousand Oaks)

Niello previously voted against legislation meant to more tightly regulate oil and gas companies, even while he had invested tens of thousands of dollars in Chevron, ConocoPhillips and other companies, my colleagues noted. He reportedly sold most of his stock in individual companies last year and put most of his investments in professionally managed diverse portfolios — which do not require public disclosure.

Pellerin owns stock in major oil, chemical and mining companies, and has a voting record as an environmentalist.

Irwin owns at least $1 million in Amazon stock and voted for new regulations for e-commerce warehouses.

“Lawmakers who spoke to The Times for this article said that their investments do not negate their calls for change, and that their holdings do not influence their work in any way,” my colleagues wrote.

The fine line between awkward and a legal conflict of interest

It may give voters ill feelings, but the politicians’ actions are not illegal.

It is difficult to determine when a legal conflict of interest arises. The law defines it as a decision in which the financial impact of a vote or piece of legislation on the person with the investment “is foreseeable” and is “significant enough to be considered material.”

Several lawmakers on the national level have proposed legislation to ban members of Congress from trading stock in recent years, and some advocates say it erodes the public’s trust for even the appearance of a conflict of interest to be present.

“Individual stock holdings can absolutely, regardless of what level of government you’re in, cause those conflicts of interest that raise serious problems with the public’s trust in government,” Delaney Marsco, senior legal counsel for the Campaign Legal Center, which supports legislation to ban members of Congress from trading stocks, told my colleagues.

“In a perfect world, you’d practice what you preach with your own funds,” Democratic strategist Steve Maviglio told The Times. “But it’s not like they’re trying to hide the ball. They’re ripe for criticism — they know that when they fill out that form.”

You can read more of my colleagues’ reporting to learn more about which lawmakers own stock in which companies and what they have to say about that.

Today’s top stories

(Al Seib / Los Angeles Times)

Weather and climate

• NOAA has warned of a ‘historically strong’ El Niño through January, but so far, California’s wet season has been notably dry.
• Atmospheric rivers pounded Californians rich and poor with equal ferocity in 2023. But poor rural communities bore the brunt of the damage.
• A storm system is moving inland and is expected to bring cold weather and rain to the region starting Monday.
• Speaking of water, California is preparing to pass rules for transforming sewage into water that’s safe for drinking.

The aftermath of the Monterey Park shooting

• When mass shooters die, all answers die with them. Which means survivors of the Lunar New Year shooting in Monterey Park are struggling to make sense of the tragedy.
• After the Monterey Park shooting, a pastor tried to de-stigmatize therapy for Asian immigrants

Politics

• Backers of digital billboards had a triumphant week at City Hall, their best in more than a decade.
• This presidential candidate is sick and tired of old people running this country
• Trump is poised to dominate the Iowa caucuses despite barely campaigning there.

Sports

• Lakers legend Kareem Abdul-Jabbar fell and broke his hip Friday, and needed surgery Saturday.
• Tiger Woods and his son Charlie were upstaged at the PNC Championship.
• Ethan Garbers delivered UCLA to an LA Bowl win, proving he has the ‘it’ factor.

Housing and homelessness

• Why homelessness looks different in Washington, D.C., than L.A.
• Veterans’ demand for more housing in West Los Angeles will go forward in federal court.

More big stories

• Vigilante groups that patrol the border for migrants and drug smugglers are gaining followers and prominence, fueling far-right rhetoric and misinformation in national politics.
• What is ketamine? The Times explains some basics about drug cited in Matthew Perry’s death.
• A Northern California ski resort plans to erect a 20-foot statue of the Virgin Mary. Critics say the religious figure would be an alienating eyesore on Mt. Shasta.
  

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Commentary and opinions

• Editorial Board: The Boston Tea Party 250 years later, and we’re still fighting for democracy
• Manuel Schwab: Germany pledged ‘never again.’ Here’s how it’s grappling with Israel’s bombing of Gaza
• Mark Z. Barabak: Newsom for president? No thanks, say Nevada Democrats, who have a big voice in 2024
• Paul Thornton: Christmas gift-giving turbocharges our trash problem. This is how I cope

Today’s great reads

(Brian van der Brug / Los Angeles Times)

A celebrity chef, an art deal gone bad and a good Samaritan — the saga of a missing masterpiece. Chef Chris Bianco’s father in 1970 painted a portrait of a well-to-do Manhattan woman. It vanished under a cloud. What happened to it?

Other great reads

• ‘We’re very lucky’: He’s 104, she’s 100, and they’ve been married for 82 years
• He’s not just ‘Arab guy.’ Ramy Youssef makes the most of his ‘Poor Things’ role.

How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com.

For your downtime

(Sam Muller / For The Times)

Going out

• 🚗 Don’t want your car stolen? Here’s where to avoid parking in L.A.
• 🎄 If you’re looking to get into the holiday mood, you can’t go wrong heading for the Ahmanson Theatre to catch a performance of “A Christmas Story, the Musical.”
• 🛹 The L.A. playground is where skaters give shape to the divine.
• 🎩 New lyrics, less sadness: Inside ‘Wonka’s’ new version of ‘Pure Imagination’

Staying in

• 📺 ‘The Crown’ dramatized Prince Harry’s Nazi costume scandal, differing from his narrative.
• 📖 9 books to read during the holidays by Latinx authors.
• 🧑‍🍳 Here’s our 12 most popular recipes of 2023.
• ✏️ Get our free daily crossword puzzle, sudoku, word search and arcade games.

And finally ... a great photo

Show us your favorite place in California! Send us photos you have taken of spots in California that are special — natural or human-made — and tell us why they’re important to you.

The Muir Beach Overlook in Dec. 2022.

(David Hayashida)

Today’s great photo is from David Hayashida of Greenbrae, Calif. David writes: “On a clear fall day, you can see migrating whales as the sun sets to the west, miles of pristine coastline and Point Reyes to the north, historic Muir Beach and San Francisco to the south, and the rugged Mt. Tamalpais State Park to the east, all while peregrine falcons and other raptors soar overhead. It feels as if you are standing on the edge of the continent — and you are!”

Have a great day, from the Essential California team
Ryan Fonseca, reporter
Karim Doumar, head of newsletters

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