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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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Startup Varda Space Industries snags former Mattel plant in El Segundo

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Startup Varda Space Industries snags former Mattel plant in El Segundo

In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.

The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.

Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.

Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.

Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.

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(Varda Space Industries)

Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.

Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.

Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.

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Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.

It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.

Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.

For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.

The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.

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“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.

As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.

Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.

Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.

Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.

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In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.

“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.

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How Iran War Is Threatening Global Oil and Gas Supplies

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How Iran War Is Threatening Global Oil and Gas Supplies

Ships near the Strait of Hormuz before and after attacks began

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Note: Times shown are in Iran Standard Time. Some ships in the region transmit false positions and others sometimes stop broadcasting their locations, and may not be reflected in the animation. Ships with sparse location data are shown in a lighter shade. Source: Kpler and Spire.

Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.

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On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.

“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”

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Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.

International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.

A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.

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Where ships and energy facilities have been damaged

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Note: Damage as of 2 p.m. Eastern time Tuesday. Source: Kpler, Kuwait National Petroleum Company, Saudi Arabian Ministry of Energy, Planet Labs, QatarEnergy, United Kingdom Maritime Trade Operations and Vanguard Tech.

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A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.

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Facilities at Ras Tanura oil refinery in Saudi Arabia were on fire on Monday after two Iranian drones were intercepted, according to Saudi Arabia’s Ministry of Energy, causing fragments to fall. Vantor

The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.

Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.

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On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.

In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.

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Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.

The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.

The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.

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Where tankers moving through the Strait have traveled

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Note: Tanker paths are since Jan. 1 and include all tankers and gas carriers. Source: Kpler and Spire.

In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.

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Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.

Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.

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Paramount credit downgraded to ‘junk’ status over debt worries

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Paramount credit downgraded to ‘junk’ status over debt worries

Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:

Call it the deal-debt hangover.

Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.

Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.

S&P Global Ratings took similar action.

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To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.

“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.

Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.

Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.

Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.

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Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.

Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.

Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.

(Evan Agostini / Invision / AP)

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Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.

Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.

Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.

Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.

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During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.

Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”

It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.

Workers are scattered throughout the region.

HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.

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“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”

David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.

Ellison has not announced what the combined company will be called.

Paramount shares closed down more than 6% Tuesday to $12.45.

Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.

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