Sacramento, California – California gubernatorial candidate Toni Atkins is facing questions regarding a potential conflict of interest stemming from a state contract awarded to her spouse’s consulting firm, LeSar Development Consultants. The firm, owned by Jennifer LeSar, secured a state contract worth over $1 million, which was recently extended through 2028, leading to tens of thousands of dollars in income for Atkins due to California's community property law.
The contract, initially signed in 2020 by the California Department of General Services, mandates LeSar Development Consultants to assist in prioritizing state-owned properties for affordable housing, conducting market research, and evaluating contractor applications. This initiative was a direct directive from Governor Gavin Newsom aimed at addressing the state's housing crisis.
Under California's community property law, which grants spouses equal ownership of marital assets, the income generated from LeSar Development Consultants' state contract directly benefits Atkins. Financial disclosures indicate that Atkins has received substantial income from this arrangement. Furthermore, nearly half of LeSar’s major clients last year employed lobbyists to influence government policy, raising broader concerns about potential influence if Atkins were to become governor.
Ethics experts highlight the inherent challenges such a situation presents. Jessica Levinson, a professor at Loyola Law School and former president of the Los Angeles Ethics Commission, noted that organizations could theoretically hire LeSar to gain proximity to Atkins, and as governor, Atkins could potentially direct more state business to her spouse's companies. Atkins' spokesperson, Danni Wang, stated, "Toni is proud of her spouse Jen’s decades of work to expand access to affordable housing in California," adding that Atkins "will continue to uphold those same principles and ensure that every decision is made in the best interest of Californians."
Questions surrounding potential conflicts of interest related to LeSar’s business dealings have accompanied Atkins throughout her political career, including her tenure as Senate President pro Tempore and Assembly Speaker. Despite previous scrutiny, Atkins has consistently denied any wrongdoing.
Atkins is a prominent figure in the crowded 2026 California gubernatorial race, which has seen several high-profile candidates emerge following former Vice President Kamala Harris's decision not to run. Atkins, who previously led both the State Senate and the Assembly, is among the Democratic candidates vying for the state's top office.