You can find this story about selling kids here, here, and here.

The East-West divide is a very interesting point, and this official takes that into account. He is not suggesting a straight Northern California/Southern California divide. He calls on specific counties (thoughtfully and thankfully leaving out LA county).  From the article linked above:

"Stone said in a statement late Thursday that Riverside, Imperial, San Diego, Orange, San Bernardino, Kings, Kern, Fresno, Tulare, Inyo, Madera, Mariposa and Mono counties should form the new state of South California."

I'd be glad to start a state with these guys.