A Tale of 2 Tech Ballot Measures: California Propositions 27 and 30

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

A Tale of 2 Tech Ballot Measures: California Propositions 27 and 30
Photo by Tiffany Tertipes on Unsplash

In this upcoming midterm election, two of the seven measures on the Nov. 8 ballot could heavily impact the tech industry in Los Angeles. They are propositions 27 and 30.

Here’s what you need to know.


Proposition 27 - Online Sports Betting

What is it: The initiative would legalize online and sports betting outside of tribal lands. Sports betting is currently legal in roughly 30 states and California isn’t one of them. According to state law, gambling in California is limited to tribal lands, the state lottery, card rooms and horse betting at race tracks.

Why does it matter: Los Angeles is home to 14 major sports teams, which play close to a thousand games a year. Prop 27 would allow adults 21 years or older to place bets on sites like DraftKings while still prohibiting online sports betting on youth sports. If the measure passes, it would establish the California Online Sports Betting Trust Fund (COSBTF) and the revenue from licensing fees, renewals and the sports wagering tax would then be deposited into the fund. 85% of the fund's revenues would be allocated to California Solutions to Homelessness and Mental Health Support Account for permanent and interim housing, while the other 15% will go towards the Tribal Economic Development Account.

Who supports it: Californians for Solutions to Homelessness and Mental Health Support, Long Beach Mayor Robert Garcia and Major League Baseball are some of the supporters. The top three donors to the campaign come from BetMGM LLC, Betfair Interactive US LLC (FanDuel Sportsbook) and Crown Gaming, Inc. (DraftKings) with a total of $169.2 million.

Who opposes it: Californians for Tribal Sovereignty and Safe Gaming and Coalition for Safe, Responsible Gaming led the campaign in opposition to the initiative. Collectively, the organizations pooled in $214.6 million.

In total, lobbying groups in California have spent $362 million on Prop 27, making it the most expensive piece of legislation in the state’s history. A poll by UC Berkeley Institute of Governmental Studies found that only 27% of voters support Prop 27, while 53% are opposed.

Impact on Los Angeles: If Prop 27 passes, the online sports betting market in California would bring in an estimated $2.8 billion in annual revenue, according to the Eilers & Krejcik Gaming report. While this could rake in a ton of cash for the state, experts warn that online sports betting could increase gambling problems and gambling addiction within the community. Last year alone, the National Problem Gambling Helpline Network received 45% more calls and texts than the year prior.

Proposition 30 - Electric Vehicle Subsidies

What is it: This measure will require those that make above $2 million each year to pay an additional tax of 1.75% on their income that would go to state programs combating the effects of climate change. Zero Emission Vehicle (ZEV) programs would receive 80% of the tax, with the other 20% going to wildfire response and prevention activities.

If passed, the bill would go into effect in January 2023 with an expiration date of January 2043.

Why does it matter: The state recently committed to spending $10 billion over the course of five years on ZEV infrastructure. If passed, the measure would increase state funding for the clean energy initiative by $2.8 billion which will amount to $4 billion annually.

According to a new report by the American Lung Association, Los Angeles, which is currently the most pollution-burdened city in the country, would see the most significant health benefits from a transition to zero-emission trucks.

The initiative also aligns with the recent state mandate which indicates that all ride-sharing companies such as Uber and Lyft use electric vehicles and hydrogen fuel cars by 2030 in an effort to reduce greenhouse gasses that contribute to climate change.

Who supports it: Lyft, Clear Air California, California Environmental Voters and the California Democratic Party are all supporters of the measure and have raised $37.1 million in contributions, with Lyft being the biggest contributor at $15 million.

Who opposes it: Gov. Gavin Newsom (D), the California Teachers Association (CTA) and the Republican Party of California all oppose this measure.

In a written statement on the CTA website, Newsom said “Prop. 30 is a special interest carve-out — a cynical scheme devised by a single corporation to funnel state income tax revenue to their company.” Though his basis in making such a claim is unclear. What is clear is that California has some of the highest personal income tax, gas tax and sales tax rates in the country. As such, opponents say that if passed this measure would bump the tax rate for those making above $2 million each year, already the highest in the nation, to 15.05%.

Impact on Los Angeles: Since many EV companies are based in Los Angeles, including Fisker, Rivian and ChargeNet Stations, the revenue garnered from taxes that would be collected if Prop 30 passes could make EVs more affordable for middle- to low-income families and build more charging stations.

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How the 'Thrift Haul' Boosted Secondhand Ecommerce Platforms

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
How the 'Thrift Haul' Boosted Secondhand Ecommerce Platforms
Evan Xie

If you can believe it, it’s been more than a decade since rapper Macklemore extolled the virtues of thrift shopping in a viral music video. But while scouring the ranks of vintage clothing stores looking for the ultimate come-up may have waned in popularity since 2012, the online version of this activity is apparently thriving.

According to a new trend story from CNBC, interest in “reselling” platforms like Etsy-owned Depop and Poshmark has exploded in the years since the start of the COVID-19 pandemic and lockdown. In an article that spends a frankly surprising amount of time focused on sellers receiving death threats before concluding that they’re “not the norm,” the network cites the usual belt-tightening ecommerce suspects – housebound individuals doing more of their shopping online coupled with inflation woes and recession fears – as the causes behind the uptick.

As for data, there’s a survey from Depop themselves, finding that 53% of respondents in the UK are more inclined to shop secondhand as living costs continue to rise. Additional research from Advance Market Analytics confirms the trend, citing not just increased demand for cheap clothes but the pressing need for a sustainable alternative to recycling clothing materials at its core.

The major popularity of “thrift haul” videos across social media platforms like YouTube and TikTok has also boosted the visibility of vintage clothes shopping and hunting for buried treasures. Teenage TikToker Jacklyn Wells scores millions of views on her thrift haul videos, only to get routinely mass-accused of greed for ratching up the Depop resell prices for her coolest finds and discoveries. Nonetheless, viral clips like Wells’ have helped to embed secondhand shopping apps more generally within online fashion culture. Fashion and beauty magazine Hunger now features a regular list of the hottest items on the re-sale market, with a focus on how to use them to recreate hot runway looks.

As with a lot of consumer and technology trends, the sudden surge of interest in second-hand clothing retailers was only partly organic. According to The Drum, ecommerce apps Vinted, eBay, and Depop have collectively spent around $120 million on advertising throughout the last few years, promoting the recent vintage shopping boom and helping to normalize second-hand shopping. This includes conventional advertising, of course, but also deals with online influencers to post content like “thrift haul” videos, along with shoutouts for where to track down the best finds.

Reselling platforms have naturally responded to the increase in visibility with new features (as well as a predictable hike in transaction fees). Poshmark recently introduced livestreamed “Posh Shows” during which sellers can host auctions or provide deeper insight into their inventory. Depop, meanwhile, has introduced a “Make Offer” option to fully integrate the bartering and negotiation process into the app, rather than forcing buyers and sellers to text or Direct Message one another elsewhere. (The platform formerly had a comments section on product pages, but shut this option down after finding that it led to arguments, and wasn’t particularly helpful in making purchase decisions.)

Now that it’s clear there’s money to be made in online thrift stores, larger and more established brands and retailers are also pushing their way into the space. H&M and Target have both partnered with online thrift store ThredUp on featured collections of previously-worn clothing. A new “curated” resale collection from Tommy Hilfiger – featuring minorly damaged items that were returned to its retail stores – was developed and promoted through a partnership with Depop, which has also teamed with Kellogg’s on a line of Pop-Tarts-inspired wear. J.Crew is even bringing back its classic ‘80s Rollneck Sweater in a nod to the renewed interest in all things vintage.

Still, with any surge of popularity and visibility, there must also come an accompanying backlash. In a sharp editorial this week for Arizona University’s Daily Wildcat, thrift shopping enthusiast Luke Lawson makes the case that sites like Depop are “gentrifying fashion,” stripping communities of local thrift stores that provide a valuable public service, particularly for members of low-income communities. As well, UK tabloids are routinely filled with secondhand shopping horror stories these days, another evidence point as to their increased visibility among British consumers specifically, not to mention the general dangers of buying personal items from strangers you met over the internet.

How to Startup: Mission Acquisition

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

How to Startup: Mission Acquisition

Numbers don’t lie, but often they don’t tell the whole story. If you look at the facts and figures alone, launching a startup seems like a daunting enterprise. It seems like a miracle anyone makes it out the other side.

  • 90% of startups around the world fail.
  • On average, it takes startups 2-3 years to turn a profit. (Venture funded startups take far longer.)
  • Post-seed round, fewer than 10% of startups go on to successfully raise a Series A investment.
  • Less than 1% of startups go public.
  • A startup only has a .00006% chance of becoming a unicorn.

Ouch.

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From The Vault: VC Legend Bill Gurley On Startups, Venture Capital and Scaling

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

Bill Gurley in a blue suit
Bill Gurley

This interview was originally published on December of 2020, and was recorded at the inaugural dot.LA Summit held October 27th & 28th.

One of my longtime favorite episodes of Office Hours was a few years ago when famed venture capitalist Bill Gurley and I talked about marketplace-based companies, how work-from-home will continue to accelerate business opportunities and his thoughts on big tech and antitrust.

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