Assembly Elections Committee to Take Up Bill to Close LLC Loophole

On Wednesday, the Assembly Elections Committee is scheduled to take up A.2493 (Millman), which would subject LLCs (“limited liability companies”) to the same $5,000 per year cap on political contributions that corporations are currently subject to.

According to the sponsor:

 The Election Law does not address the aggregate amount of political contributions that an LLC may make to candidates, parties and political committees in any one year: As a result, the State Board of Elections has opined that they should be treated as individuals for purposes of a limit and, therefore, under current practice, an LLC is allowed to make $150,000 in contributions in any one year. This bill would require that LLCs be treated like corporations, rather than individuals, and therefore limited to $5,000 in annual contributions. 

You can read some background about the issue here.

The bill has never come to the Assembly floor for a vote in prior sessions.

In the Senate, the bill’s sponsor filed a “Notice of Committee Consideration” in early April, meaning that the bill should come to the Senate Elections Committee for a vote before the end of the legislative session.