Calls Grow For FBI To Investigate Newsom Over Alleged Corruption Scandal

Calls Grow For FBI To Investigate Newsom Over Alleged Corruption Scandal

Calls in California are growing for the FBI to launch an investigation of Governor Gavin Newsom over an alleged corruption scandal, as a recent report revealed that Panera Bread, a major donor to Newsom’s campaign, was exempted from a new law raising minimum wages in fact food restaurants. Given that the exemption is a major benefit, some allege corruption was involved.

As background, the claim was first published by Bloomberg News, which reported that Panera Bread, owned by billionaire Greg Flynn, was exempted from the state’s new minimum wage law. The law exempts restaurants selling bread, which includes Panera, from the rule requiring they raise the minimum wage from $16 to $20 an hour.

According to the Bloomberg News report, the law creates an exemption for restaurants that both “bake bread and sell it as a standalone item.” Panera does that, in addition to offering more typical menu items. In addition to the odd nature of the exemption, the corruption claims were given some degree of credence by Bloomberg’s reporting that Governor Newsom had pushed for the bread sale break.

Posting on X about the matter, James Gallagher, the Republican leader of the California Assembly, called out the campaign donation-exemption nexus, saying, “Can any franchisee get an exemption from the $20 minimum wage law or do they need to donate more than $150k to Newsom first? This crooked deal needs to be investigated.”

Similarly, Ashley Zavala, the California Capitol Correspondent for KCLA News, posted on X that another Republican of the California Assembly told her that the FBI needs to get involved, as he does not trust the Democrat supermajority in the assembly to investigate the situation.

Reporting on that conversation in an X post, Zavala wrote, “Republican Assemblyman Joe Patterson is calling for outside investigation into Gov. Newsom’s ties to billionaire Panera franchisee, even going as far to say the FBI should be involved. Republican state lawmakers have no confidence in Dem super majority investigating itself.”

Brian W. Jones, the California Senate Minority leader, wrote a letter to the California AG demanding an investigation into the situation. Posting about the letter on X, he wrote, “We’re calling on AG Bonta to investigate PaneraGate. The appearance that campaign donations influenced an official action impacting the livelihoods of countless Californians is deeply troubling. The public deserves to know the truth about the allegations of Governor Newsom’s crony capitalism. #FixCalifornia”

In the letter itself, Jones wrote, “According to a report published yesterday by Bloomberg, one of the primary beneficiaries of this exemption is Greg Flynn, a billionaire owner of two dozen California Panera Bread locations. Disturbingly, Bloomberg reported that in the months surrounding the passage AB 1228, Flynn, a longtime acquaintance of Gov. Newsom, contributed tens of thousands of dollars to the governor’s reelection campaign.”

The letter continued, “As elected representatives, it is our duty to ensure state government serves the people’s interests, not special interests. The appearance that campaign donations influenced a decision impacting the livelihoods of countless Californians is deeply troubling. Governor Newsom has described the exemption as “part of the sausage-making” of legislation. If he is unable to provide a better justification for this carveout, it raises serious questions about the integrity of his administration.”

It then added, “The public deserves to know if this exemption was granted based on Mr. Flynn’s bankrolling of Gov. Newsom’s reelection campaign. Our democratic system of government is based on the principle of equal treatment under the law, and even the appearance of corruption undermines our constituents’ trust in their leaders. We urge you to launch a thorough investigation to determine if there was any quid pro quo or impropriety in the decision-making process.“