Days after a proposal that would ban certain developer contributions to elected officials and candidates was revived by some Los Angeles City Council members, the city’s Ethics Commission announced that it too would be taking another look at the idea.
The move comes amid a wide-ranging federal corruption and bribery investigation of City Hall that appears to be related to real estate developments.
Developers with projects needing approval of the City Council sometimes also contribute to council members’ campaigns, but a motion introduced earlier this week would ban contributions to city elected officials and candidates for municipal office from “restricted developers” and their principals.
“Restricted developers” would include property owners who have business with the city related to the property, including projects requiring approval or other action by city elected officials to allow the construction or addition of more than 4,000 square feet of residential floor area or 15,000 square feet of commercial floor area.
A similar motion was introduced in 2017 but did not gain any traction with the City Council or Ethics Commission before expiring. Council members David Ryu, Paul Krekorian, Joe Buscaino, Paul Koretz, Mike Bonin and Nury Martinez introduced the new motion this week, with Council President Herb Wesson seconding.
“Campaign finance reform, including a ban on developer donations, is something I have been fighting for since I first ran for office,” Ryu said when he introduced the motion. “Democracy dies when people lose faith in their elected officials. That is the risk we face, the longer we go without addressing this problem as systemic and worthy of reform.”
Under the motion’s guidelines, developers would be restricted from making political contributions to city elected officials and candidates from the date the application for the property is filed until 12 months following the final resolution of the application. The motion would also explore a ban on non-individual entity contributors.
The Ethics Commission announced that its review of developer contributions will continue during a meeting on Feb. 19, and will also include potential restrictions on non-individual entity contributors and payments made by third parties at the behest of elected officials.
The ban on “behested” payments, which was also included in the new City Council motion, was prompted by a report last year by the Los Angeles Times on donations to Bishop Mora Salesian High School, Ryu spokesman Estevan Montemayor told the paper. The school is City Councilman Jose Huizar’s alma matter, and his wife, Richelle, also worked there as a paid fundraiser
Huizar’s home and offices were searched by the FBI in November, and Huizar was also named in a search warrant related to the FBI’s probe of possible bribery, extortion, money laundering and other crimes as part of a corruption investigation at City Hall focusing on huge real estate investments from Chinese companies.
Although the warrant was filed in November, its details were first reported on Twitter on Saturday by Seamus Hughes, deputy director of the Program on Extremism at George Washington University.
The warrant was for a private Google email account for former Deputy Mayor Ray Chan, but said it was also seeking information related to numerous City Hall figures, including Huizar, Councilman Curren Price, and current or former aides to Huizar, Council President Herb Wesson and Mayor Eric Garcetti.
Joel Jacinto, who was named in the warrant, resigned from his post on the Board of Public Works on Friday.
The warrant does not say the FBI has gathered evidence of criminal activity by any of the people or companies named in the document. No one has been arrested or charged in the investigation.