A California Democratic lawmaker has been removed from an Assembly committee after voting against Gov. Gavin Newsom’s new law aimed at punishing oil companies for windfall profits.
Newly elected Assemblywoman Jasmeet Bains (D-Delano) represents a small community north of Bakersfield in central California. The region produces about 70 percent of the state’s oil.
Bains published a statement March 30, saying she was informed by the office of Assembly Speaker Anthony Rendon (D-Lakewood) she would be removed from the Assembly Business and Professions Committee.
“For decades, oil companies have gotten away with ripping off California families while making record profits and hiding their books from public view,” Newsom said March 23 after it passed the Senate. “With this proposal, California leaders are ending the era of oil’s outsized influence and holding them accountable.”
The law will create new regulations and extensive oversight for oil companies and allows an appointed commission to issue fines and penalties for earning profits beyond state-imposed limits.
Bains, a family doctor, became the first South Asian woman and Sikh elected to the California State Legislature when she was sworn into office in January. Democratic leadership appointed her to chair the Assembly Aging and Long-Term Care Committee, along with assigning her to the powerful business and professions committee, from which she has been removed.
She was also appointed to the Assembly Revenue and Taxation Committee and the Accountability and Administrative Review Committee.
New Law Might Lead to Higher Gas Prices, Kill Jobs: Critics
Industry experts say the new law will likely lead to higher prices at the pump and still doesn’t address ongoing supply challenges that leading experts have identified as the main driver of increased costs.“Price caps, taxes, and tax-like penalties do not increase supply or reduce prices, but instead can have the opposite effect—less investment, less gasoline supply, and ultimately higher costs for Californians,” Western States Petroleum Association President Catherine Reheis-Boyd said in a statement. “With this politicized process behind us, it’s time for serious discussion about what it will take to ensure an affordable, reliable and safe fuel supply for the years ahead.”
Assembly Republicans called it a “job-killing” law.
“This bill will have a disastrous impact on my community, constituents, and our economy,” said Assemblyman Tom Lackey (R-Palmdale) before the March 27 Assembly vote. “Make no mistake, this is a job-killing gas tax.”
Assemblyman Vince Fong (R-Bakersfield) argued there was no evidence the oil industry had engaged in price gouging leading to last year’s high prices. Fong represents a region of California that produces most of the state’s oil supply.
“There’s been a lot of chatter about an alleged price gouging,” Fong said. “The attorney general currently has this authority to prosecute offenders to protect consumers. It has not been invoked. Why? Because there’s no evidence, no matter how many times you said it, the evidence comes up empty.”