By Maria Rocha-Buschel
While this will probably not come as a surprise to anyone who’s been following the scandals in Albany this past year, a report by State Senator Daniel Squadron found significant LLC loophole exploitation in state elections contributions, with Tishman Speyer Development LLC one of the names topping the list.
Assemblymembers Brian Kavanagh and Jo Anne Simon, along with Squadron and other advocates, announced the findings of the report last Wednesday.
While the state prohibits corporations from giving more than $5,000 a year to candidates and political campaigns, through the so-called LLC Loophole, limited liability corporations, which are defined as businesses that share attributes of corporations and partnerships, are allowed to donate up to $60,800 to a candidate per election cycle and up to $150,000 a year to candidates and political committees overall. Corporations and individuals are also allowed to set up an unlimited number of LLCs through which to donate, and developers often have an LLC for each of their properties.
“This is why Albany and real estate interests run roughshod,” State Senator Brad Hoylman said of the loophole. “They can manipulate the law. These are often shadowy entities and have multiple owners. They exist primarily to circumvent detection of true ownership. The fact that they’re treated as individuals is outrageous and that needs to be fixed.”
Hoylman is a co-sponsor of Squadron’s bill in the State Senate that would close the loophole.