Assemblywoman Pellegrino Helps Pass Bill to Close LLC Loophole and Curb the Influence of Wealthy Special Interests
Assemblywoman Christine Pellegrino (D-Babylon, Oyster Bay, West Islip) announced that she helped pass legislation to close the limited liability corporation (LLC) loophole in the state’s campaign finance law and limit the influence of special interests in New York politics (A.1926).
“I want to bring integrity back to state government and the first thing we need to do is implement substantive ethics reforms,” said Pellegrino. “This bill is a key step toward making that happen by preventing the wealthiest from unduly influencing our elections and our democracy.”
The so-called LLC loophole allows individuals and corporations to make unlimited contributions to a given candidate, political party or campaign committee by creating a new LLC for each donation. Current election law treats each LLC as an individual donor, despite the fact that the contributions may be coming from the same individuals.
The Assembly legislation would extend the $5,000 aggregate contribution limit, which is already in effect for corporations, to include LLCs and require LLCs to disclose the names of individuals with membership interests, attributing LLC contributions to them.
“Government is supposed to represent the interests of its citizens – not simply cater to the ultra-rich,” said Pellegrino. “This measure safeguards our democracy from the corrupting influence of dark money and shines much-needed light on large campaign contributions.”