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SACRAMENTO, Calif. (AP) — The California Assembly voted Thursday to cap the interest lenders may charge on loans that can carry rates spiraling into the triple digits.Backed by civil rights groups, religious organizations and some trade associations, the proposed law would cap annual rates at around 38% for loans between ,500 and ,000.The bill comes as legislators across the country seek to reign in a storefront lending industry critics accuse of preying on low-income consumers in need of cash and trapping them under mounds of debt for years.But even as the bill advanced, some California lawmakers expressed concern that it will limit choices for consumers with bad credit or little access to banks and other financial products. And the lending industry, which wields significant influence in legislatures as well as in Washington, has launched an advertising campaign in California attacking the bill as it heads to the state Senate, where observers expect a tougher fight.Proponents of capping interest rates point to an explosion in high-interest consumer loans around the state over the last decade.The state already caps interest rates on consumer loans under ,500 but not for amounts over that threshold. In 2009, 8,468 loans for amounts between ,500 and ,000 came with interest rates over 100%, according to data from state regulators. Lenders now issue more than 350,000 loans each year with interest rates in the triple digits. A legislative analysis said at least one out of three borrowers is unable to pay their loans.But proposals to cap interest rates in recent years have faltered at California's Legislature. Several lawmakers still expressed concern about the latest proposal, suggesting it could drive lenders out of the market, pushing consumers with low incomes toward unregulated lenders or cutting off their easy access to capital."Without these alternative financial service providers, those folks would have nowhere else to go," said Democratic Assemblywoman Sydney Kamlager-Dove of Los Angeles.Assembly Speaker Anthony Rendon dismissed arguments the bill would ultimately harm low-income residents."Those are merely talking points of an industry that has repeatedly lied to members of this chamber," he said.Casting the bill as a moral issue, the Democrat said the legislation can be considered as important as any other lawmakers will vote on this year in the country's most populous state.The bill ended up passing with bipartisan support as one Republican legislator cited religious prohibitions on usury."I'm a free-market capitalist and I'm unashamed of it but we need to stand up and protect people who are being preyed upon," said Assemblyman Jordan Cunningham of San Luis Obispo.The support of the financial industry this year, too, may also signal that the sector foresees a reckoning in the state or at least further political uncertainty if lawmakers do not approve limits for loans between ,500 and ,000.The California Supreme Court cast a legal question mark last year over the lending industry's practices, deciding in one class action lawsuit that some interest rates can be so high as to be deemed unconscionable under financial laws.Democratic Assemblywoman Monique Limon of Santa Barbara, the bill's author, also suggested that an interest rate cap could end up on the ballot if the Legislature does not act.If passed, California would join 38 states and the District of Columbia in capping interest rates for these types of loans, according to a legislative analysis. The level proposed in California would be on the higher end.Observers expect a bigger political fight when the bill heads to the state Senate, however.Opponents of the bill have launched an advertising campaign aimed at stopping it.The trade group Online Lenders Alliance has bought ads on Sacramento television stations, according to Federal Communication Commission filings.A group calling itself Don't Lock Me Out California has also bought online ads attacking the bill. 4018
SACRAMENTO, Calif. (AP) — Gov. Gavin Newsom signed into law Wednesday a bill making California the first state to ban workplace and school discrimination against black people for wearing hairstyles such as braids, twists and locks.The law by Democratic Sen. Holly Mitchell of Los Angeles, a black woman who wears her hair in locks, makes California the first state to explicitly say that those hairstyles are associated with race and therefore protected against discrimination in the workplace and in schools."We are changing the course of history, hopefully, across this country by acknowledging that what has been defined as professional hair styles and attire in the work place has historically been based on a Euro-centric model — based on straight hair," Mitchell said.Stephanie Hunter-Ray, who works at a makeup counter, says she typically wears her hair braided or in an afro, but one day she showed up to work with it straightened and styled in a bob. Her manager told Hunter-Ray her hair had never looked so normal."It bothered me," Hunter-Ray said in an interview at the hair salon she owns in Sacramento that specializes in natural hair styles. "What do you mean by 'normal?' Your normal is not my normal. My normal is my 'fro or my braids."Alikah Hatchett-Fall, who runs Sacred Crowns Salon in Sacramento, said she's had black men come into her salon asking to have their hair cut off because they can't find jobs.The law, she said, "means that psychologically and mentally people can be at ease and be able to get the jobs they want, keep the jobs they want, and get promoted at the jobs they want."California's new law, which takes effect Jan. 1, is significant because federal courts have historically held that hair is a characteristic that can be changed, meaning there's no basis for discrimination complaints based on hairstyle. The U.S. Supreme Court recently declined to hear the case of an Alabama woman who said she didn't get a job because she refused to change her hair.The issue burst into public view last December, when a black high school wrestler in New Jersey was told by a referee that he had to cut off his dreadlocks if he wanted to compete. California's Democratic governor said the video was a clear example of the discrimination black Americans face."His decision whether or not to lose an athletic competition or lose his identity came into, I think, stark terms for millions of Americans," Newsom said before signing the bill alongside Mitchell and half a dozen advocates. "That is played out in workplaces, it's played out in schools — not just athletic competitions and settings — every single day all across America in ways subtle and overt."Though California is the first state with such a law, New York City earlier this year issued legal guidance banning discrimination against someone based on their hairstyle. The beauty company Dove is part of a coalition pushing for more hairstyle protections, and Mitchell said she hopes other states follow California.Mitchell's bill adds language to the state's discrimination laws to say that "race" also includes "traits historically associated with race," including hair texture and protective hairstyles. It further defines protective hairstyles as braids, twists and locks.The term locks, or "locs," is the preferred term to dreadlocks, which has a derogatory connotation.At Hunter-Ray's studio, Exquisite U, on Wednesday, her stylists and customers reflected on the new law.Shereen Africa, who was having her hair re-braided by Elicia Drayton, said she used to work at a television station in Mississippi where a black anchor quit after facing resistance to wearing her hair in locks. Africa said she did not wear her hair in braids at the job, even though she wasn't on air, because the environment wasn't supportive of it."If I'm in a professional setting, I won't wear my hair in certain ways," she said.An anchor at a different Mississippi TV station made national news when she said she was fired after she stopped straightening her hair."You want to go to work and feel free," Drayton said. "You don't want to have to feel like you have to put on a wig or you have to have your hair straight to please someone else." 4222

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom is willing to throw a financial lifeline to the state's major utilities dealing with the results of disastrous wildfires — but only if they agree to concessions including tying executive compensation to safety performance.A proposal unveiled Friday by Newsom's office aims to stabilize California's investor-owned utilities and protect wildfire victims as the state faces increasingly destructive blazes. Regulators say some previous fires were caused by utility equipment.Pacific Gas & Electric Corp., the largest of the three investor-owned utilities, filed for bankruptcy in January as it faced tens of billions of dollars in potential costs from blazes, including the November fire that killed 85 people in the Paradise area.Newsom hopes to strike a deal with lawmakers in just three weeks, but leaders in the Legislature said they haven't been given a formal legislative proposal and would need to go through their normal review process.The plan comes as credit ratings agencies look wearily upon the utilities.Southern California Edison and San Diego Gas & Electric had their ratings downgraded earlier this year, and executives have pushed lawmakers to come up with a plan that stabilizes the industry.Newsom proposal would give Southern California Edison and San Diego Gas & Electric the power to decide which form of financial aid they want, based on whether they're willing to make their shareholders contribute.They could choose a liquidity fund to tap to quickly pay out wildfire claims or a larger insurance fund that would pay claims directly to people who lose their homes to fire.The ratings agency Moody's has said creating a sort of insurance or liquidity fund would have a positive impact on the credit of utilities in the state.The liquidity fund would be about .5 billion and paid for by a surcharge on ratepayers, said Ana Matosantos, Newsom's cabinet secretary. If utilities want the larger insurance fund, they'd have to pitch in another .5 billion. Both utilities have to agree on which option to choose. Officials at neither company immediately responded to requests for comment.PG&E would not get a say in which fund the state uses or be able to tap a fund until it resolves its claims from the 2017 and 2018 wildfire seasons and emerges from bankruptcy. Its exit plan could not harm ratepayers and it would have to continue the utility's contributions to California's clean energy goals.The utilities would have to implement a number of safety measures to tap into the fund, such as tying executive compensation to safety, forming a safety committee within its board of directors and complying with wildfire mitigation plans.State legislators voted last year to require California's electric companies to adopt those plans. Southern California Edison told legislative staff last year the company wants to spend 2 million to improve power lines and deploy new cameras in high-risk areas.PG&E has said it will inspect 5,500 additional miles of power lines and build 1,300 new weather stations to improve forecasting. Most of its inspections are done, officials said.The state would also require power companies to spend a combined billion on safety over three years. This would include upgrading utility infrastructure as well as developing new early warning and fire detection technologies.Companies would be able to pass on the actual costs of these measures to consumers but could not make a profit off the steps.The California Public Utilities Commission, which regulates utilities, would decide how that billion is split up. Newsom's plan would also create a Wildfire Safety Division and Advisory Board at the CPUC.Matosantos described the draft requirements for additional safety spending as unprecedented and argued that mandating companies meet those guidelines to tap into the fund protects electric customers from paying for the costs of a catastrophic wildfire.Still, lawmakers plan to do their own analysis of the proposal."In order for any solution to work, the Legislature and governor will have to work together," Senate President pro Tempore Toni Atkins, a fellow Democrat, said in a statement. 4234
SACRAMENTO, Calif. (KGTV) -- A federal lawsuit was filed Tuesday after a state audit found the California DMV's "motor voter" program that started in 2018 was riddled with technical problems that led to discrepancies in voter registrations.Attorney Harmeet Dhillon, a member of the National Republican party, filed the federal lawsuit Tuesday against the state of California that accuses Secretary of State Alex Padilla of violating the National Voter Registration Act.Padilla responded in a statement saying the lawsuit "is a fundamental misrepresentation" of the act. He called the lawsuit an "underhanded attempt" at voter suppression.Dhillon filed the lawsuit on behalf of three California residents who are Republican voters. The lawsuit also names the director of California's Department of Motor Vehicles, Steve Gordon.Dhillon said that a recent audit that found a variety of problems with California DMV's "motor voter" program, which automatically registers people to vote, helped bring the issues in her lawsuit to light. 1039
RIVERSIDE, Calif. (AP) — A Southern California police department says three middle school students have been arrested after attempting to free another student from custody.The Riverside Press-Enterprise reported Saturday that a 15-year-old Tahquitz High student arrived at Rancho Viejo Middle School Friday and argued with a school employee.Hemet police says the high school girl was arrested on suspicion of threatening a public employee after a campus police officer attempted to speak with her.Authorities say three other minors attempted to stop the officer from arresting the girl by blocking the patrol car door and trying to punch the officer.Authorities say the officer called for backup and the girl, two 13-year-old boys and a 14-year-old boy were arrested.School officials say the students should expect to face disciplinary action from the district. 869
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