Ethics Panel Sets Hearing on Holden’s Campaign

Over the objections of Nate Holden, the Los Angeles City Ethics Commission decided Tuesday to go ahead with a hearing later this month into alleged campaign contribution violations by the city councilman.

Holden, appearing before the commission, insisted that he is being subjected to a tougher standard of enforcement than other members of the council and suggested that the commission may already have made up its mind to find him guilty of violations.

“I thought I’d be getting due process from this commission,” Holden said angrily. “But that has not been the case at all. You haven’t even given me proper notice of the proceedings.... If your mind is already made up, it’s a waste of everybody’s time to hold a hearing.”

Commission President Miriam Krinsky said Holden has been given fair treatment and timely notice of all proceedings. She said a decision on charges against the councilman from his 1999 reelection contest cannot be delayed.

Holden was charged last December by the commission staff of committing 31 violations in 1999. He faces up to $155,000 in fines.

An audit by the staff concluded that Holden accepted 11 contributions exceeding the city’s $500 contribution limit, and then requested public matching funds by submitting 20 ineligible claims. Each violation can result in a fine of $5,000.

The commission began its session by reviewing a legal memorandum submitted by Holden’s attorney accusing commission hearing officer Richard E. Drooyan of prejudicial conduct against the councilman in holding a preliminary hearing into the violations.

The commission decided to give the parties to the case a limited time to respond to the points made, and directed that Drooyan report on them to the full commission before the full hearing April 25.

Commissioners then spent much of the meeting discussing proposed changes in the city’s campaign contribution rules.

Testifying later before the commission, newly elected City Councilwoman Wendy Greuel supported reform of election laws to reduce the impact of independent outside expenditures on city election contests. She also urged that forfeiture of office be the penalty for repeated violations.

“It’s clear we need change and we need it now to end political corruption and conflicts of interest by closing campaign finance loopholes that have allowed millions of dollars from anonymous outside interests to influence local elections,” she said.

Greuel also supported a change in the law to require people who run for the City Council to live in the area they will represent for at least a year before the election.

The commission can only recommend revisions of the law. Revisions must be approved by the City Council and the mayor in most instances, and might even require the approval of City Charter provisions by the electorate.