California Democrats' mass incarceration policy confronts retail theft debate amid business group-led ballot initiative, potentially affecting U.S. House races and Congress control.

California Democrats' drive to avoid mass incarceration is being tested by the retail theft debate, as lawmakers consider a crime-focused measure. Tensions arise from a ballot initiative led by business groups, which could impact U.S. House races and Congress control. Some top Democrats are unhappy with the situation, finding it "unfortunate" and "frustrating."