California Republican leaders: Gov. Newsom needs to come clean on Panera-gate | Opinion

Gov. Gavin Newsom finds himself embroiled in yet another corruption scandal. As Republican leaders in California, we have deep concerns that Gov. Newsom’s influence is causing Californians to lose trust in our public institutions.

At the heart of the current scandal linked to Newsom is a purported “pay-to-play” scheme involving Greg Flynn, a billionaire Panera Bread franchisee owner and a former high school acquaintance of the governor. Flynn, a major contributor to Newsom’s political campaigns, appears to have benefited from a tailored exemption in Assembly Bill 1228, the highly contentious 2023 law mandating a $20-per-hour minimum wage for major fast food chains.

Opinion

This exemption, bafflingly crafted for “bakeries,” appears to singularly benefit Panera Bread (it might potentially benefit one or two other chains), leading to legitimate questions about the governor’s involvement in the provision. Bloomberg reports that the governor pushed for the exemption.

Coined “Panera-gate,” accusations against Newsom of crony capitalism have rightfully prompted Californians to question the accountability of our state government.

When asked about the bizarre bakery exemption, Newsom said it was part of the “sausage-making” process and “the nature of negotiation.” However, subsequent details have challenged the transparency and fairness of the legislative process.

One franchisee coalition claims to have been “intentionally excluded” from the negotiation, bluntly stating that “only those trade associations and franchised businesses who ‘paid to play’ were given a seat at the negotiating table.” Another stakeholder claims the minimum-wage law is a “prime example of behind-the-scenes political maneuvering” with “a lot of back-room dealing.”

To make matters worse, SEIU, the union leading negotiations in the controversial fast food minimum wage law, mandated groups at the negotiating table to sign non-disclosure agreements. What crucial information do these NDAs conceal? We may never know.

The recurrence of controversies under Newsom underscores a troubling pattern of cronyism and preferential treatment.

Recall the French Laundry incident in November of 2020 when he violated the spirit of his own COVID restrictions by dining unmasked at the famous expensive Napa Valley bistro while the state was discouraging people from gathering during the holidays and when most California public school kids were struggling with distance learning. Newsom also used his “emergency powers” to give no-bid contracts to big donors during the pandemic. And we can’t forget when Kaiser Permanente — “one of Newsom’s most generous supporters and close political allies,” according to California Healthline — got a secretly negotiated “sweetheart deal” for a “special Medicaid contract” with the state. Such practices undermine the public’s confidence in government institutions and erode the principles of accountability and fairness.

The appearance that campaign donations influence any decision impacting the livelihoods of countless Californians is deeply troubling. The public deserves to know if the bakery exemption was granted based on Flynn’s bankrolling of Newsom’s reelection campaign. Our democracy rests on the principle of equal treatment under the law, and even the appearance of corruption undermines the public’s trust in their leaders.

If these new allegations hold true, they represent a pattern of blatant cronyism and favoritism, embodying the worst aspects of “pay-to-play” politics displayed by the governor and his Democrat colleagues. It’s wealthy people scratching each other’s backs to get what they need at the expense of everyday Californians — and at the expense of what’s right.

To restore public trust and uphold the integrity of our institutions, we should suspend implementation of AB 1228 and start over — this time ensuring that all stakeholders have a fair seat at the table through public negotiations rather than backroom deals. Every elected official, including the governor and legislators, should also denounce the use of NDAs in legislative negotiations. Furthermore, Attorney General Rob Bonta should initiate an independent and unbiased investigation into the allegations of money influencing this legislation. If he doesn’t, we believe the FBI should investigate.

At the very least, Newsom must provide a comprehensive explanation of the circumstances that led to the “bakery exemption.” He should also voluntarily release all documents regarding the exemption and all communication records between himself, his office, Flynn and Flynn’s representatives. He should also release the “enrolled bill report,” which will shed light not only on his staff’s recommendation to sign or veto the bill, but also the reason for their recommendation.

If Newsom has nothing to hide, he should be eager to clear his name by taking these simple actions.

The ramifications of the Panera saga extend beyond the immediate bill, casting doubt on the integrity of our legislative process.. We must undertake every effort possible to rectify this situation and assure the public that their government serves their interests, not just those of wealthy special interests.

Brian W. Jones represents California’s 40th Senate District and is the Republican Minority Leader of the California Senate. James Gallagher represents California’s 3rd Assembly District and is the Republican Caucus Chairman of the California General Assembly..