Two state Assembly members from Los Angeles filed legislation Tuesday that would prevent sports team owners from writing off league fines as a business expense when they file their state income tax returns.
The bill was filed by Democratic Assemblymen Raul Bocanegra of Pacoima and Reggie Jones-Sawyer of Los Angeles.
"Donald Sterling's outrageous comments and historic fine should not be rewarded with a multimillion-dollar tax refund," said Bocanegra, who chairs the Revenue and Taxation Committee. "This fine is intended as a punishment; it should not be used as a tax loophole."
The new legislation, AB 877, which amends an existing bill, has yet to be reviewed by legislative analysts or scheduled for a committee hearing.
In a letter to the regulators, Sherman cited a payment of more than $2.7 million that Sterling made in 2009 to settle federal claims that he discriminated against tenants. Sherman's letter did not say there were allegations pending against Sterling or his companies.
A Sterling representative did not return a call late Tuesday seeking comment. In the 2009 settlement, Sterling did not admit liability.