A California Republican lawmaker is taking action in the wake of a report claiming that Governor Gavin Newsom provided a sweet carveout in a new Golden State minimum wage law for a business partner. Then according to a follow-up story about Newsom and his friend and Panera Bread franchisee, Greg Flynn, it's alleged that the companies/entities involved in the Fast Food Accountability and Standards Recovery Act (FAST Act) legislation signed non-disclosure agreements (NDAs).
As my colleague Bob Hoge wrote, "The allegations are jaw-dropping":
Sources close to the negotiations said in the summer of 2023, the powerful Service Employees International Union required the other groups at the negotiating table to sign non-disclosure agreements, also known as NDAs. An NDA is a legally binding agreement that forces those involved to keep discussions confidential. SEIU has not responded to repeated requests for comment.
And RedState's Jennifer Oliver O'Connell wrote on the allegations of back-scratching by Newsom for a pal with whom he has numerous financial connections:
Hey, if this is how the game is played...
Newsom reportedly sought the exemption, which benefits among others Greg Flynn, the billionaire CEO of Flynn Restaurant Group, the company that owns some two dozen Panera Bread locations in the state.
Flynn, who attended the same high school as Newsom, has been involved in business dealings with the California governor, according to Bloomberg News.
He has also contributed to Newsom’s political campaigns.
In 2014, Flynn, who is the largest franchisee in the US with thousands of brands including Applebee’s, Pizza Hut, Taco Bell, and Wendy’s, acquired a Napa Valley resort that was managed by Newsom’s hospitality firm, according to disclosure forms.
Flynn has a net worth valued at $1.1 billion, according to the Bloomberg Billionaires Index. He has donated at least $164,800 to Newsom’s campaigns.
READ:
CA Corruption: Negotiators of Minimum Wage Law With Questionable Panera Bread Carveout Signed NDAs
California Assemblyman Vince Fong has introduced a bill to bar NDAs from being used while crafting legislation in the state. KCRA, which released the explosive report, now brings us these new details directly from the lawmaker:
California Republican Assemblyman Vince Fong introduced legislation that would invalidate any state legislation involving non-disclosure agreements, his office first told KCRA 3 on Friday.
Fong is amending one of his current bills, AB 2654, on public contracts to include the language. The legislation would also explicitly prohibit public employees from signing non-disclosure agreements in their official capacity when negotiating proposed laws.[...]
The law, which takes effect in April, has come under scrutiny as the governor faces allegations he pushed for an exemption for one of his billionaire donors who also operates dozens of Panera locations in California.
NEW: After our reporting, California Assemblyman introduces proposal to invalidate any state legislation that used NDAs.
— Ashley Zavala (@ZavalaA) March 8, 2024
“Taxpayers deserve more transparency. Without transparency, trust in government erodes.” @vfong https://t.co/pcvwFa5sIn
Fong said:
Transparency in government is the foundation of our democracy. It builds trust and confidence in elected and government officials. Public officials, paid by taxpayers, are trusted to carry out the people’s business in a fair and equitable manner.
KCRA tried to ferret out what knowledge Gov. Newsom had about the NDA, if any, but only got a terse reply:
Newsom's office, which oversaw the negotiations of the fast food bill, said the governor never signed an NDA and did not direct anyone to sign one. KCRA 3 asked Newsom's office if he was aware an NDA was used during the negotiations of the bill, and if he condones their use in the crafting of public policy. He still had not responded.
They also spoke with sources who had inside information on how SEIU negotiates:
Multiple sources close to the labor side of the negotiations who spoke on the condition of anonymity told KCRA 3 that SEIU uses non-disclosure agreements "routinely" in high-stakes negotiations to build trust with its opponents.
Fong is currently the Republican candidate in the 2024 general election, after winning the California 20th congressional district primary Super Tuesday to replace former House Speaker Kevin McCarthy.
READ: Super Tuesday Roundup: About All Those Congressional Primaries...
As this is a developing story, RedState will keep you posted on any updates.
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