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Column: California's transgender sanctuary law survives a challenge as judge ridicules plaintiff's claims

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Column: California's transgender sanctuary law survives a challenge as judge ridicules plaintiff's claims

In 2022, when legislation outlawing gender-affirming medical treatments erupted in mostly red-state legislatures across the land, California enacted a law creating a sanctuary for those whose treatments were blocked by the lawmakers.

SB 107, which was signed into law by Gov. Gavin Newsom that September, provided a safe harbor for people from those states who sought the treatment in California, where it’s legal.

The law prohibited the release of medical information about a patient if it was sought from a state that made the treatments illegal, and forbade the arrest or extradition of medical providers in California if the request came from authorities in states that had criminalized the treatments.

Our Watch firmly believes that transgenderism is a cultural issue that it must deal with in accordance with God’s design for every child, as outlined in the Bible.

— Our Watch vs. Bonta

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Unsurprisingly, SB 107 became the target of right-wing, anti-LGBTQ+ activists in California. On Tuesday, federal Judge Dale A. Drozd of Sacramento dismissed an effort to declare the law unconstitutional.

It was the third attempt by the plaintiff, a nonprofit affiliated with a conservative Christian church in Temecula that says its mission is to “restore Christian-Judeo values in government and education,” to win Drozd’s approval for its lawsuit. This time, Drozd, plainly fed up with the plaintiff’s serial inability to make its case, forbade it to try again because any further filing would be, as he wrote, “futile under the circumstances.”

Whether Drozd’s ruling will hold up under any appeal or whether the law itself can survive any other lawsuits to overturn it is impossible to say. But the lawsuit filed last year by the nonprofit Our Watch with Tim Thompson (he’s the pastor of the Temecula church) is nevertheless instructive. Our Watch was represented in court by lawyers affiliated with Advocates for Faith and Freedom, a Murrieta organization that lists “parental rights” and “the rights of children, both born and unborn,” among its concerns.

The lawsuit opens a window on the lengths to which zealots and fanatics will go to interfere with the activities of others because they conflict with their own narrow ideologies. There’s a polite name for them: “busybodies.”

The case also underscores how our personal rights are perched on a judicial knife edge in today’s America. There’s ample reason to believe that if such a case were to land in front of a Trump-appointed judge — U.S. Judge Matthew Kaczmaryk of Amarillo, Texas, for instance — the law would have been invalidated in a heartbeat. Appeal would have been taken to the Trump-infested 5th Circuit Court of Appeals, and perhaps ultimately to the Supreme Court, where its fate might be sealed.

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After all, that’s been the arc of Kaczmaryk’s ruling invalidating the Food and Drug Administration’s approval of the abortion drug mifepristone. In that case, Kaczmaryk and the 5th Circuit judges bought into the plaintiffs’ fanciful assertions that, as doctors, the prospect of medication abortions caused them “mental and emotional stress”; appeals judge James C. Ho rationalized upholding Kaczmaryk’s mifepristone ban by commenting, “Doctors delight in working with their unborn patients — and experience an aesthetic injury when they are aborted.”

That didn’t happen here because Drozd, an Obama appointee, can recognize a factitious claim for standing when it swims into his ken.

I’ve written before that transgender individuals have become the prime targets for discriminatory legislation in part because socially acceptable targets for hate-mongering and prejudice have become harder for conservative culture warriors to find.

As I observed in 2018, open racism is out (though it made a strong comeback in the Trump era and in the hands of commentators such as Tucker Carlson). In an increasingly pluralistic society, legislators who denigrated ethnic or religious minorities or those with mental illnesses or disabilities found themselves on the outs.

Gay and lesbian Americans have moved into the cultural and social mainstream. Many conservative families have found themselves embracing gay and lesbian siblings, children and parents as worthy of familial love and respect. Same-sex marriage has become embedded in the entertainment mainstream, portrayed on popular TV programs without apology.

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Moreover, gay and lesbian people acquired a voice in the highest echelons of political power; gay-bashing no longer works for a political candidate as it has in the past, except perhaps in the most benighted corners of American society.

That leaves gender transition, which is easily caricatured and demonized by unscrupulous politicians aiming to rally their base against a wholly imaginary crisis. By early 2022, according to Human Rights Watch, 130 bills had been introduced in state legislatures. Many barred transgender youths from playing on sports teams or using bathrooms other than those designated for their birth gender.

As of this year, 23 states have banned or restricted gender-affirming treatments for youths; some carry prison terms for violations or restrict insurance coverage. In Florida parents who allow such treatments for their children can lose custody; in Texas, they can be investigated for child abuse. Florida, Ohio and Missouri have implemented restrictions even on gender transition treatments for adults. A Florida rule barring Medicaid coverage for gender treatments was blocked by a federal judge, whose ruling is currently under appeal.

This is the environment that prompted California to enact its sanctuary law. Its law resembled the state’s effort to become a sanctuary for women seeking abortions that their home states had rendered illegal in the wake of the Supreme Court’s overturning of Roe vs. Wade in 2022.

The plaintiff in this case left no question that its action was grounded in fundamentalist anti-transgender bias. “Our Watch firmly believes that transgenderism is a cultural issue that it must deal with in accordance with God’s design for every child, as outlined in the Bible,” the lawsuit says.

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As so often occurs, the plaintiff’s case against the California law is a melange of misdirection and misrepresentations.

Our Watch positioned its lawsuit as an effort to protect the right “of parents to raise their children” without governmental interference. It depicted SB 107 as a law that “allows minors to obtain gender transition procedures like harmful puberty blockers, cross-sex hormones, and irreversible surgeries without parental consent, while denying parents access to their child’s medical information.”

This is a flatly inaccurate characterization of the law. It also turns the law’s goal on its head.

The truth is, as Atty. Gen. Rob Bonta observed in his response to the lawsuit, California law gives parents the right to access their children’s medical records. “Nothing in SB 107 changes that,” he noted. Further, he wrote, all those procedures listed in the lawsuit “generally require parental consent in California” — another regulation unaffected by SB 107.

The whole purpose of the California law, Bonta wrote, was to give parents of children seeking gender-affirming care refuge from out-of-state laws that interfered with their right to obtain medically indicated care for their children — not to allow such care over parents’ objections.

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The lawsuit painted a picture of physicians willy-nilly imposing radical, irreversible gender-affirming treatments on innocent adolescents whose “gender dysphoria” (the medical term for gender uncertainties) might be transient and resolve themselves over time or with counseling.

That’s a caricature of the standard of care for gender dysphoria as it’s implemented by physicians following established protocols. The truth is that “prior to the onset of puberty, kids typically receive non-medical care,” explained Boston University psychologist Melissa K. Holt during a roundtable discussion of care for youths in 2022.

Care for prepubescent children, Holt said, “is focused around social transitioning,” such as choosing a new name and adopting different dress, “and providing mental health and structural support, like schools using a child’s preferred gender pronouns and allowing them to use the bathroom that aligns with their gender identity…. There are no 4-year-olds going through irreversible medical procedures.”

Drugs such as puberty blockers and hormone treatments are typically administered only as children move into adolescence, are viewed as safe, and are expected to be used only after discussions with medical providers. Medical protocols discourage gender reassignment surgery before the age of 18. But professionals in the field say that outlawing such treatments or even counseling for younger children can produce long-standing psychological problems.

Much of the lawsuit’s argument was self-refuting. “Parents, not the government, are best suited to decide” on their child’s medical treatment, the lawsuit says. Exactly; so how do SB 107’s opponents explain state laws that allow the government to impose its judgment over the parents? The lawsuit is silent on that question.

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In dismissing the case, Drozd didn’t address those issues, because he found that the lawsuit had a more fundamental shortcoming: The plaintiff didn’t have standing to bring the case at all.

“Standing” is a concept derived from the U.S. Constitution, which holds, roughly, that litigants in federal court must show that they’re directly harmed by a government action and that their lawsuit will remedy the injury. Our Watch couldn’t meet that requirement, Drozd ruled.

Our Watch claimed that it was “directly harmed” by SB 107 because the law prompted it to “divert our attention to transgender issues” rather than “tackling major cultural issues that violate Christian-Judeo values, including the sexual indoctrination of children, … critical race theory, and abortion.” (Not to be churlish, but some people might be relieved that SB 107 narrowed the organization’s involvement in such overheated culture wars.)

Our Watch “plans to expend money on conferences to connect key stakeholders who are also fighting against the devastating effects of SB 107,” the lawsuit stated.

It wasn’t hard for the judge to see through this argument. Plaintiffs can’t “manufacture standing” through their own choices, he ruled: Our Watch’s “decision to place more focus and correspondingly commit more of its resources to ‘transgender issues’ … was a voluntary decision — not a forced one.”

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The culture wars over gender issues are sure to continue because they rely on public ignorance and prejudice — always the preferred weaponry of demagogues. The lawsuit to overturn California’s sanctuary law had, at its core, nothing to do with protecting children. If it did, its promoters wouldn’t have had to gin up a cause of action where none existed.

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Scott Bessent, Trump’s Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts

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Scott Bessent, Trump’s Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts

Scott Bessent, the billionaire hedge fund manager whom President-elect Donald J. Trump picked to be his Treasury secretary, plans to divest from dozens of funds, trusts and investments in preparation to become the nation’s top economic policymaker.

Those plans were released on Saturday along with the publication of an ethics agreement and financial disclosures that Mr. Bessent submitted ahead of his Senate confirmation hearing next Thursday.

The documents show the extent of the wealth of Mr. Bessent, whose assets and investments appear to be worth in excess of $700 million. Mr. Bessent was formerly the top investor for the billionaire liberal philanthropist George Soros and has been a major Republican donor and adviser to Mr. Trump.

If confirmed as Treasury secretary, Mr. Bessent, 62, will steer Mr. Trump’s economic agenda of cutting taxes, rolling back regulations and imposing tariffs as he seeks to renegotiate trade deals. He will also play a central role in the Trump administration’s expected embrace of cryptocurrencies such as Bitcoin.

Although Mr. Trump won the election by appealing to working-class voters who have been dogged by high prices, he has turned to wealthy Wall Street investors such as Mr. Bessent and Howard Lutnick, a billionaire banker whom he tapped to be commerce secretary, to lead his economic team. Linda McMahon, another billionaire, has been picked as education secretary, and Elon Musk, the world’s richest man, is leading an unofficial agency known as the Department of Government Efficiency.

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In a letter to the Treasury Department’s ethics office, Mr. Bessent outlined the steps he would take to “avoid any actual or apparent conflict of interest in the event that I am confirmed for the position of secretary of the Department of Treasury.”

Mr. Bessent said he would shutter Key Square Capital Management, the investment firm that he founded, and resign from his Bessent-Freeman Family Foundation and from Rockefeller University, where he has been chairman of the investment committee.

The financial disclosure form, which provides ranges for the value of his assets, reveals that Mr. Bessent owns as much as $25 million of farmland in North Dakota, which earns an income from soybean and corn production. He also owns a property in the Bahamas that is worth as much as $25 million. Last November, Mr. Bessent put his historic pink mansion in Charleston, S.C., on the market for $22.5 million.

Mr. Bessent is selling several investments that could pose potential conflicts of interest including a Bitcoin exchange-traded fund; an account that trades the renminbi, China’s currency; and his stake in All Seasons, a conservative publisher. He also has a margin loan, or line of credit, with Goldman Sachs of more than $50 million.

As an investor, Mr. Bessent has long wagered on the rising strength of the dollar and has betted against, or “shorted,” the renminbi, according to a person familiar with Mr. Bessent’s strategy who spoke on condition of anonymity to discuss his portfolio. Mr. Bessent gained notoriety in the 1990s by betting against the British pound and earning his firm, Soros Fund Management, $1 billion. He also made a high-profile bet against the Japanese yen.

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Mr. Bessent, who will be overseeing the U.S. Treasury market, holds over $100 million in Treasury bills.

Cabinet officials are required to divest certain holdings and investments to avoid the potential for conflicts of interest. Although this can be an onerous process, it has some potential tax benefits.

The tax code contains a provision that allows securities to be sold and the capital gains tax on such sales deferred if the full proceeds are used to buy Treasury securities and certain money-market funds. The tax continues to be deferred until the securities or money-market funds are sold.

Even while adhering to the ethics guidelines, questions about conflicts of interest can still emerge.

Mr. Trump’s Treasury secretary during his first term, Steven Mnuchin, divested from his Hollywood film production company after joining the administration. However, as he was negotiating a trade deal in 2018 with China — an important market for the U.S. film industry — ethics watchdogs raised questions about whether Mr. Mnuchin had conflicts because he had sold his interest in the company to his wife.

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Mr. Bessent was chosen for the Treasury after an internal tussle among Mr. Trump’s aides over the job. Mr. Lutnick, Mr. Trump’s transition team co-chair and the chief executive of Cantor Fitzgerald, made a late pitch to secure the Treasury secretary role for himself before Mr. Trump picked him to be Commerce secretary.

During that fight, which spilled into view, critics of Mr. Bessent circulated documents disparaging his performance as a hedge fund manager.

Mr. Bessent’s most recent hedge fund, Key Square Capital, launched to much fanfare in 2016, garnering $4.5 billion in investor money, including $2 billion from Mr. Soros, but manages much less now. A fund he ran in the early 2000s had a similarly unremarkable performance.

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As wildfires rage, private firefighters join the fight for the fortunate few

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As wildfires rage, private firefighters join the fight for the fortunate few

When devastating wildfires erupted across Los Angeles County this week, David Torgerson’s team of firefighters went to work.

The thousands of city, county and state firefighters dispatched to battle the blazes went wherever they were needed. The crews from Torgerson’s Wildfire Defense Systems, however, set out for particular addresses. Armed with hoses, fire-blocking gel and their own water supply, the Montana-based outfit contracts with insurance companies to defend the homes of customers who buy policies that include their services.

It’s a win-win if the private firefighters succeed in saving a home, said Torgerson, the company’s founder and executive chairman. The homeowner keeps their home and the insurance company doesn’t have to make a hefty payout to rebuild.

“It makes good sense,” he said. “It’s always better if the homes and businesses don’t burn.”

Torgerson’s operation, which has been contracting with insurance companies since 2008 and employs hundreds of firefighters, engineers and other staff, highlights a lesser-known component of fighting wildfires in the U.S. Along with the more than 7,500 publicly funded firefighters and emergency personnel dispatched to the current conflagrations, which have burned more than 30,000 acres and destroyed more than 9,000 structures, a smaller force of for-hire professionals is on the fire lines for insurance companies, wealthy individual property owners or government agencies in need of additional hands.

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Their presence isn’t without controversy. Private firefighters hired by homeowners directly have drawn criticism for heightening class divides during disasters. This week, a Pacific Palisades homeowner received backlash for putting a call out on X, the social media site formerly named Twitter, for help finding private firefighters who could save his home.

“Does anyone have access to private firefighters to protect our home in Pacific Palisades? Need to act fast here. All neighbors houses burning,” he wrote in the since-deleted post. “Will pay any amount.”

“The epitome of nerve and tone deaf!” someone replied.

In 2018, Kim Kardashian and Kanye West credited private firefighters for saving their $60-million home in the Santa Monica mountains during a wildfire. But those who serve wealthy clients make up only a small fraction of nonpublic firefighters, according to Torgerson.

“Contract firefighters who are hired by the government are the vast majority,” he said. The federal government has been hiring private firefighters since the 1980s to support its own forces. According to the National Wildfire Suppression Assn., there are about 250 private sector fire response companies under federal contract, adding about 10,000 firefighters to U.S. efforts.

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Some private firefighting companies, including Wildfire Defense Systems, are known as Qualified Insurance Resources and are paid by insurance companies to protect the homes of their customers. Wildfire Defense Systems refers to its on-the-ground forces as private sector wildfire personnel.

Wildfire Defense Systems only works with the insurance industry, but other privately held firefighting companies contract with industrial clients such as petrochemical facilities and utility providers. Wildfire Defense Systems declined to disclose company revenue or what it charges for its services.

Allied Disaster Defense, a company that has sent personnel to the fires in Los Angeles, offers services to both property owners and insurance companies. Its website says its services will “enhance the insurability of properties” and “contribute to reduced claims.”

The website also has a page dedicated to services for private clients, which include emergency response and assistance with insurance claims for “high net-worth and celebrity” customers. The company does not list prices for its services and has nondisclosure agreements with its private clients.

Several other private firefighting companies are based in California, including Mt. Adams Wildfire, which contracts with government agencies, and UrbnTek, which serves Los Angeles, Orange County and San Diego among other areas. Along with spraying fire retardant on trees and brush to stop an advancing fire, the company offers “a double layer of protection by wrapping a structure with our fire blanket system.”

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Torgerson, a civil engineer with 34 years in emergency services, said he has been struck by the speed of the current wildfires. While typically it takes two to 10 minutes for a fire to sweep through a home, he said, the Palisades fire is traveling at higher speeds.

“It’s moving so fast, it’ll likely take one to two minutes for these fires to pass over the properties,” he said.

He said his company responded to all 62 of the wildfires that threatened structures in California in 2024 and didn’t lose a property.

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As Delta Reports Profits, Airlines Are Optimistic About 2025

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As Delta Reports Profits, Airlines Are Optimistic About 2025

This year just got started, but it is already shaping up nicely for U.S. airlines.

After several setbacks, the industry ended 2024 in a fairly strong position because of healthy demand for tickets and the ability of several airlines to control costs and raise fares, experts said. Barring any big problems, airlines — especially the largest ones — should enjoy a great year, analysts said.

“I think it’s going to be pretty blue skies,” said Tom Fitzgerald, an airline industry analyst for the investment bank TD Cowen.

In recent weeks, many major airlines upgraded forecasts for the all-important last three months of the year. And on Friday, Delta Air Lines said it collected more than $15.5 billion in revenue in the fourth quarter of 2024, a record.

“As we move into 2025, we expect strong demand for travel to continue,” Delta’s chief executive, Ed Bastian, said in a statement. That put the airline on track to “deliver the best financial year in Delta’s 100-year history,” he said.

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The airline also beat analysts’ profit estimates and said it expected earnings per share, a measure of profitability, to rise more than 10 percent this year.

Delta’s upbeat report offers a preview of what are expected to be similarly rosy updates from other carriers that will report earnings in the next few weeks. That should come as welcome news to an industry that has been stifled by various challenges even as demand for travel has rocketed back after the pandemic.

“For the last five years, it’s felt like every bird in the sky was a black swan,” said Ravi Shanker, an analyst focused on airlines at Morgan Stanley. “But it appears that this industry does have its ducks in a row.”

That is, of course, if everything goes according to plan, which it rarely does. Geopolitics, terrorist attacks, air safety problems and, perhaps most important, an economic downturn could tank demand for travel. Rising costs, particularly for jet fuel, could erode profits. Or the industry could face problems like a supply chain disruption that limits availability of new planes or makes it harder to repair older ones.

Early last year, a panel blew off a Boeing 737 Max during an Alaska Airlines flight, resurfacing concerns about the safety of the manufacturer’s planes, which are used on most flights operated by U.S. airlines, according to Cirium, an aviation data firm.

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The incident forced Boeing to slow production and delay deliveries of jets. That disrupted the plans of some airlines that had hoped to carry more passengers. And there was little airlines could do to adjust because the world’s largest jet manufacturer, Airbus, didn’t have the capacity to pick up the slack — both it and Boeing have long order backlogs. In addition, some Airbus planes were afflicted by an engine problem that has forced carriers to pull the jets out of service for inspections.

There was other tumult, too. Spirit Airlines filed for bankruptcy. A brief technology outage wreaked havoc on many airlines, disrupting travel and resulting in thousands of canceled flights in the heart of the busy summer season. And during the summer, smaller airlines flooded popular domestic routes with seats, squeezing profits during what is normally the most lucrative time of year.

But the industry’s financial position started improving when airlines reduced the number of flights and seats. While that was bad for travelers, it lifted fares and profits for airlines.

“You’re in a demand-over-supply imbalance, which gives the industry pricing power,” said Andrew Didora, an analyst at the Bank of America.

At the same time, airlines have been trying to improve their businesses. American Airlines overhauled a sales strategy that had frustrated corporate customers, helping it win back some travelers. Southwest Airlines made changes aimed at lowering costs and increasing profits after a push by the hedge fund Elliott Management. And JetBlue Airways unveiled a strategy with similar aims, after a less contentious battle with the investor Carl C. Icahn.

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Those improvements and industry trends, along with the stabilization of fuel, labor and other costs, have created the conditions for what could be a banner 2025. “All of this is the best setup we’ve had in decades,” Mr. Shanker said.

That won’t materialize right away, though. Travel demand tends to be subdued in the winter. But business trips pick up somewhat, driven by events like this week’s Consumer Electronics Show in Las Vegas.

The positive outlook for 2025 is probably strongest for the largest U.S. airlines — Delta, United and American. All three are well positioned to take advantage of buoyant trends, including steadily rebounding business travel and customers who are eager to spend more on better seats and international flights.

But some smaller airlines may do well, too. JetBlue, Alaska Airlines and others have been adding more premium seats, which should help lift profits.

While he is optimistic overall, Mr. Shanker acknowledged that the industry was vulnerable to a host of potential problems.

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“I mean, this time last year you were talking about doors falling off planes,” he said. “So who knows what might happen.”

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